Performance Guarantee

A written warranty issued by Bank of China, at the request of the Customer to the Owner of a project or the Buyer of a sales deal, guaranteeing the Applicant will strictly perform the contracts.

Guarantee proper fulfillment of contractual obligations and the quality of the subject matter of contract; 

1. Mediate  the issue  of mutual mistrust between both parties of a transaction.Bank of China who has good reputation acts as a guarantor to promote smooth transaction by providing guarantee for the parties;
2. Guarantee fulfillment of contractual obligations, as well as quality of the subject matter of contract;
3. Indemnify the dis-advantaged party and penalize the defaulting party in case of breach of contract to avoid or reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.

1. Contractors involved in contracted projects;
2. Suppliers involved in material procurement projects.

I. Application for letter of guarantee

1. The applicant fills out an application formissuance of a letter of guarantee;

2. The applicant provides  margin deposit or submits other counter-guarantee;

3. The applicant submits copy of contract agreement and any supporting documents related to the contract;

4. The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.
 

II. Examination and issuance of letter of guarantee

1. Bank of China examines the customer qualification, underlying transaction and relevant documents;

2. Bank of China confirms the customer's margin deposit or credit line and other mortgages;

3. Bank of China examines the written application and form of letter of guarantee;

4. Bank of China issues the letter of guarantee accordingly.