Introduction
The beneficiary or transferee of a letter of guarantee may file a claim to the guaranteeing bank. Bank of China provides professional claim handling service for customers under the letter of guarantee, including claim consultation, claim filing by letter or telegraph, payment receiving, foreign exchange settlement, etc.
Features
1. Help companies receive the claim payment under the letter of guarantee to reduce their losses;
2. Save management costs.
Application Qualifications
1. The applicant shall have the qualification to engage in underlying transactions;
2. The applicant shall maintain a specimen stamp at the bank and good credit standing without any bad record;
3. The applicant shall provide complete and valid business information.
Process
1. The customer submits the letter of guarantee and relevant documents;
2. Bank of China examines the documents and handles the claim for the customer;
3. Bank of China charges guarantee fees.
Case
Company B, a goods exporter, received a standby L/C from the correspondent bank of the foreign buyer, guaranteeing the buyer will fulfill the payment obligation under the contract. Later a dispute arose between Company B and the buyer, and the buyer unreasonably refused to make payment. Company B then wanted to protect its interest with the standby L/C, but didn't know how to deal with the claiming issues. After consultation, Company B decided to entrust Bank of China with the claim handling operation, and finally with the bank's assistance received the claim payment from the guaranteeing bank. Company B realized that, with Bank of China as a claiming agent, it could avoid detours and deal with claiming issues in time and a right way, preventing the overseas non-payment to the claim due to its ignorance of the rules and practices for letter of guarantee.
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