Introduction

Upon receipt of a letter of guarantee from a foreign bank, the applicant designates Bank of China as the reissuing bank to issue a letter of counter-guarantee to the beneficiary.

Application Requirements

1. The issuing bank of the counter guarantee shall be granted credit line for financial institution by Bank of China.

2. The transaction should be based on real transactions that meet Bank of China’s requirements on business compliance.

Application Procedures

1. The correspondent bank or the affiliated bank submits an application;

2. Bank of China examines the terms and conditions of the counter L/G and issues the letter of guarantee;

3. Bank of China charges the guarantee fees;

4. Bank of China amends the letter of guarantee;

5. Bank of China makes compensation against the letter of guarantee or cancels the letter of guarantee.