Introduction
The RMB Non-Financing Letter of Guarantee refers to an arrangement where Hua Xia Bank provides credit guarantee by producing guarantee documents for a customer's non-financing business activities such as trade and project bidding. The guarantee is issued within the specified scope and based on adequate counter-guarantee conditions provided by the customer.
Category
Bidding guarantee, performance guarantee, guarantee for refund of advance payment, maintenance guarantee, quality guarantee, and payment guarantee.
Applicable Clients
Corporate and other organizations that meet the Hua Xia Bank loan requirements.
Functions and Features
The customer is guaranteed by bank credit to support its normal production and business activities.
Currency and Tenor
RMB is currency in service. The tenor of the letter of guarantee is determined under negotiation.
Price
Payment guarantee: 1.25‰;
Advance payment guarantee: 1‰;
Bidding guarantee: 0.5‰;
Performance guarantee: 1‰;
Other non-financing guarantee: 1‰.
1. In case of any change in the fee rate, the guarantee produced before such change is subject to the original rate and those produced after such change is subject to the new rate.
2. The service fee for guarantee can either be collected quarterly or in a lump sum. Guarantees for less then 3 months will be charged the same as the 3-month guarantee.
3. Minimum service fee is RMB 200.
Application Materials
1) Application for the letter of guarantee and supporting materials;
2) Audited financial statements of the previous year and the recent financial reports;
3) Board resolutions;
4) Standard-formatted letter of guarantee if not in the required format;
5) Subjects under the guarantee application and the business contract, agreement, and relevant documents under guarantee;
6) Deposit receipt slip;
7) For counter-guarantee with third-party guarantee, mortgage, or pledge, relevant documents matching with the guarantee, mortgage, or pledge on the payment; and
8) Other documents and information as required by Hua Xia Bank.
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