Introduction
Professional service to review the letter of guarantee of the customers.
Features
1. Effectively identify different risks in the letter of guarantee format to avoid claim risks;
2. Safeguard the interests of the beneficiary of letter of guarantee.
Application Qualifications
1. The applicant shall maintain good credit standing without any bad record;
2. The applicant shall possess real relationship of transactions that meets Bank of China's requirements on business compliance;
Process
1. The customer provides the letter of guarantee and relevant documents;
2. Bank of China reviews the documents and provides its comments;
3. Bank of China charges fees for the letter of guarantee review.
Case
Company D was participating in a large overseas acquisition project. Its foreign partner provided a letter of guarantee format that will be used in the project acquisition and required that the format should be included in the contract and Company D should provide a letter of guarantee using the format to perform its obligations under the acquisition contract. Company D was doubtful of the format as the letter of guarantee involved huge amount of money with high risks. After thorough review of the format of the letter of guarantee and many times of discussion with the lawyers of Company D, finally Bank of China was able to provide a more equal letter of guarantee to protect the company's benefits.
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