国际结算 教学课件(7).doc

Chapter 7 Methods of Intl Settlement -Letter of Guarantee & Standby L/C1. Definition, functions, types, parties of L/G2. Contents & functional terms and conditions of L/G3. Definition, functions, types of Standby credit4. Difference between L/C, L/G and Standby credit1. Definition, functions, types, parties to a Letter of Guarantee(1) Brief introduction of a Letter of Guarantee(2) Definition (3)Functions(4)Parties to a Letter of Guarantee(5)Types(2) DefinitionA bank guarantee is used as an instrument for securing performance or payment especially in Intl business. A bank guarantee is a writing promise issued by a bank at the request of its customer, undertaking to make payment to the beneficiary within the limits of a stated sum of money in the event of default by the principal. A bank guarantee may also be defined as an independent obligation where the guarantor (a bank/financial instruction/surety) has to make a special agreement with its customer, ensuring that it will be refunded by him for any payment to be effected under the contract of guarantee.(3)Functions of guaranteea. Guarantee does not consist in assuming the debtors liability (by the guarantor) in the latters interest, but in recouping the beneficiary for any damage caused by faulty performanceb. Guarantee is used as secure mechanism for payment of the contract amount.c. A contractor uses a guarantee as default instrument that covers the risk of non-performance or defective performance by the contractord. Guarantees are used widely and flexibility especially in Intl business, complicated transactions, non credit available transactions, etc.(4) Parties to a Letter of Guarantee and their obligationsa. Beneficiary; b. Principal; c. Guarantor; d. Instructing partya. Beneficiary:The party in whose favor the guarantee is issued. He is secured against the risk of the principals not fulfilling his obligations towards the beneficiary in respect of the underlying transaction for which the demand guarantee is given. He will not obtain a sum of money if the obligations are not fulfilled.b. Principal:The party at whose request the guarantee is issued. The principal will be claimed if he is in breach of his obligations.c. Guarantor:The party issues a guarantee undertaking to make payment to the beneficiary in the event of default of the principal against the presentation of a written demand and other specified documents. He is not required to decide whether the beneficiary and the principal have or have not fulfilled their obligations under the underlying transaction with which the guarantor is not concerned. The guarantor is willing to meet its commitment in terms of guarantee, without becoming involved in possible disputes between beneficiary and principal regarding to correct performance by the principal of his obligations.d. Instructing partyA bank or a financial institution or any other body acting as an instructing party issues a counter guarantee acting on the instruction of a principal in favor of a bank or a financial institution located in the beneficiarys country. 开立保函/备用信用证申请书 编号： 年 字 号现我公司因业务需要，依据我公司与贵行签署的 年 字 号授信额度协议及附件：用于开立保函/备用信用证，向贵行申请开立保函/备用信用证。开立保函/备用信用证而产生的权利义务，均按照前述协议、附件和本申请书的约定办理。第一条 保函/备用信用证内容我公司向贵行申请按下列要素开立保函/备用信用证：1.保函/备用信用证申请人名称和地址(中英文)： 2.货物/项目描述： 3.工程和项目名称/协议/合同/标书号码： 4.工程项目/协议/合同币种及金额： 5.保函/备用信用证币种及金额： 6.保函/备用信用证有效期：自保函/备用信用证开出之日 到 为止。7.保函/备用信用证类别：8.保函/备用信用证开立方式： (1)由贵行信开。 (2)由贵行电开。9.保函/备用信用证递交方式：(1)由贵行交我公司代交受益人。(2) 由贵行委托 银行(英文全称)通知受益人。(3)由贵行开出后委托 银行(英文全称)转开交受益人。(4)由贵行开出后委托 银行(英文全称)转开交我公司代理机构代交受益人，我公司代理机构的名称和地址 。(5)由贵行直接邮寄受益人。10.保函/备用信用证受益人名称和地址(英文) 11. 。12. 第二条 支付备付金 我公司将于保函/备用信用证约定的付款日或贵行要求的日期(以日期较前者为准)前， 银行工作日内通过以下第 种方式向贵行支付本笔业务下的备付金。备付金数额按贵行规定执行：1.通过 向贵行支付本笔业务的应付款项；2.请从我公司在贵行开立的人民币账户(账号 )/外币账户(账号 )中直接划收本笔业务下的应付款项；3.第三条 保证金的交纳及金额(本条为选择性条款，双方的选择是：1、适用；2、不适用)我公司将通过以下第 种方式向贵行交纳保证金；1在贵行接受此申请书后 个银行工作日内主动通过 将本笔业务的保证金划入我公司在贵行开立的保证金账户(账号 )/外币账号(账号 )2请从我公司在贵行开立的人民币账户(账号 )/外币账号(账号 )中直接划收本笔业务下的保证金。3第四条 费用我公司将通过以下第 种方式向贵行交纳本笔业务下的费用：1.在贵行接受些申请书后 个银行工作日内主动通过 向贵行交纳本笔业务下的费用。2.请从我公司在贵行开立的人民币账户(账号 )/外币账户(账号 _ )中直接划收本笔业务下的费用；3. 。 申请人： 银行意见： 授权签字人： 授权签字人： _年 月 日 _年 月 日地点： 地点： (5)Types of Letter of Guaranteea. In terms of the relationship with the underlying transaction: Accessory guarantee, independent guaranteeb. In terms of methods of issuing the guarantee: direct guarantee, indirect guaranteec. In terms of the conditions for a claim: unconditional bond, conditional bondd. In terms of the payment prerequisite under guarantee: Payment guarantee, credit guaranteePayment guarantee includes Payment bond; Deferred payment bond; Guarantee for compensation trade; Loan guarantee; Overdraft guarantee; Leasing guarantee; Payment guarantee for commission or any other charges.Credit guarantee includes Bid bond; Performance bond; Advance payment guarantee; Quality guarantee; Maintenance guarantee e. In terms of the purpose of guaranteesDirect guarantee 1.underlying transaction2. Authorization 3. Guarantee PrincipalBeneficiaryBankAdvising bank Indirect guarantee1.underlying transaction2. Authorization 4. Guarantee 3. Counter guarantee PrincipalBeneficiaryBankAdvising bankGuaranteeing bank Credit guarantee is a default instrument that covers the risk of non-performance or defective performance by the contractor.e. In terms of the purpose of guarantees -Intl trade: tender, performance, advance/down payment, quality or maintenance, payment, deferred payment, etc -Intl construction/engineering contracting: bid (tender), duty free, retention money, overdraft, payment, performance, maintenance, customs guarantee, etc -Stand by letter of credit -Other guaranteeTender guarantee -This is a written undertaking issued by the Bank at the request of tenderee in projects of construction works or material procurement subject to bidding, guaranteeing that the tenderer will not withdraw or modify his tender within the validity period, and, if awarded the tender, will sign the contract or submit the performance guarantee within a specified period. -Applicable to public bidding or tender evaluation, when the employer requires the tenderer to submit tender security. -To void losses resulted from tenderers modification or withdrawal of tender during tender evaluation or rejection of contract conclusion after the award, the tenteree usually asks the tenderer to submit tender security to bind the tenderer. Tender guarantee is a substitute of cash security . - Convenience provided by the product to the client(1) To the tenderer : reduce the overstock of funds that have to be submitted as cash security; optimize the allocation of limited funds in comparison with the payment of cash security; simple procedures to meet time restraint. (2)To the tenderee: judiciously bind the contractor or supplier to fulfill contractual obligations and protect his own interests; circumvent the tedious procedures of collecting and returning the security and thereby improve efficiency. Performance guarantee -This is a written undertaking issued by the guarantor to the employer or buyer at the request of the contractor or supplier, guaranteeing that the latter will strictly perform his contractual obligations. -Applicable to providing guarantee for the performance of contractual obligations by the principal; common cases including projects involving construction contracting or material procurement. -In such construction or procurement projects, the employer or buyer, to avoid losses incurred by the failure of the contractor or supplier to perform contractual obligations, often asks the contractor or supplier to submit performance security to bind the latter. Performance guarantee is a substitute of cash security.。-Convenience provided by the product to the client(1) To the contractor or supplier: reduce the overstock of funds that have to be submitted as cash security; optimize the allocation of limited funds in comparison with the payment of cash security.(2) To the employer or buyer: judiciously bind the contractor or supplier to fulfill contractual obligations and protect his own interests; circumvent the tedious procedures of collecting and returning the cash security and thereby improve efficiency. Advance payment guarantee-This is a written undertaking issued by the guarantor to the employer or buyer at the request of the contractor or supplier, guaranteeing that the latter will perform his contractual obligations after the employer or buyer has effected the advance payment.-Applicable to providing guarantee for the performance of contractual obligations by the principal; common cases including projects involving construction contracting or material procurement.-In such construction or procurement projects, the employer or buyer, to avoid the loss of advance payment incurred by the failure of the contractor or supplier to perform contractual obligations after the latter has obtained the advance payment, asks the bank to make the guarantee for the repayment of the advance if the contractor or supplier fails to perform contractual obligations. - Convenience provided by the product to the client (1) To the employer or buyer: ensure that the advance payment will be recovered smoothly when the contractor or supplier fails to perform contractual obligations; enhance the binding force on the contractor or supplier to perform the contract.(2) To the contractor or supplier: facilitate the timely payment of the advance; timely obtain the funds to launch the project and to facilitate the smooth execution of the contract. Retention money guarantee-This is a written undertaking issued by the guarantor to the employer or buyer at the request of the contractor or supplier, guaranteeing that the latter will perform his contractual obligations after the latter has drawn the final payment in advance. -Retention money guarantee is also called “final payment guarantee”. -Applicable to the later stage of contract execution when the employer or buyer retains the final payment and the contractor or supplier has to draw the final payment in advance with the banks letter of guarantee. - Convenience provided by the product to the client To the contractor or supplier: take back the final payment in advance to make up for the insufficient working capital; improve fund turnover. To the employer or buyer: gain guarantee for the performance of follow-up obligations; achieve the same effect as the retained final payment. Warranty guarantee-This is a written undertaking issued by the guarantor to the employer or buyer at the request of the contractor or supplier, guaranteeing that the latter will perform his contractual obligations during the warranty or maintenance period.-Warranty guarantee is also called “maintenance guarantee”. -Applicable to the warranty or maintenance period of the contract on construction contracting or goods supply, when the employer or buyer requires the contractor or supplier to perform the warranty obligation. -After contracting or supply projects enter the warranty or maintenance period, the employer or buyer, in order to prevent the inconformity of the quality of works or goods with the contractual stipulations, or the reluctance or failure on the contractor or suppliers part to carry out repair, replacement or maintenance, often asks the contractor or supplier to provide warranty guarantee before the performance guarantee expires, thereby binding the contractor or supplier to the obligations in the warranty period. -Convenience provided by the product to the client To the employer or buyer: guarantee the contractor or supplier to perform warranty or maintenance obligations To the contractor or supplier: improve the market competitive power of the contractor or supplier Customs guarantee-This is a written undertaking issued by the guarantor to the customs at the request of the importer (including processing trade enterprises), guaranteeing that the latter will perform his obligation of duty payment. -The customs guarantee offered by BOC mainly includes two types, i.e., guarantee for payment of customs duty and guarantee for payment of taxes on processing trade. -Applicability: import of commodities and goods before related sate policies on tax reduction or exemption become definite; temporary entry of equipment and instruments into the customs boundary of other countries for ongoing overseas contract construction, overseas exhibition or promotion; import of materials and spare parts by processing trade enterprises; clearance first and taxation later for some goods by the customs.-Convenience provided by the product to the client: reduce overstock of funds that have to be submitted by the enterprises as security for customs duty; the practice of “clearance first and taxation later” expedites the customs clearance for goods and avoid additional cost due to the detention of good at ports; reduce the procedures of tax refund for articles entering customs boundary of other countries on a temporary basis Payment guarantee-This is a written undertaking issued by the guarantor to the seller at the request of the buyer, guaranteeing that the buyer will perform his payment obligations under contracts for purchase of commodity, technology, patent or labor. -Applicable to commodity trade, technical service trade, or construction projects involving payment. In commodity trade: This serves as the guarantee for the buyers timely payment after the seller has delivered goods as agreed in the contract. In construction project: This serves as the guarantee for the employers timely and full payment for construction progress to the contractor under terms of construction contracting. In commodity trade，payment guarantee functions similarly as the letter of credit, but has simpler procedures; flexible formats to fit different needs Letter of credit has to follow fixed format and conventions while the format of payment guarantee can be tailor made for specific project or customer; wide scope of application: Payment guarantee has a wider application scope than the letter of credit because it can be used for both commodity trade and construction project. -Convenience provided by the product to the clientTo the seller or contractor: gain adequate guarantee for the collection of payment for goods and construction to facilitate his goods delivery, construction and progress of the trade. To the buyer or employer: protect the interests of the buyer or employer since payment terms in the payment guarantee can bind the behavior of the seller or contractor to a certain extent. Financing guarantee-This is a written undertaking issued by the guarantor to the lender at the request of the borrower, guaranteeing that the borrower will perform his obligation of repaying the loan fund. -Financing guarantee offered by BOC mainly covers loan guarantee, overdraft guarantee, guarantee for securities issuance and credit line guarantee.When the borrower intends to gain all forms of financing from banks or other financial institutions; When the borrower intends to issue securities in the financial market. -Convenience provided by the product to the client To the borrower: lower financing cost and help the borrower gain financing; raise the borrowers credit rating which is instrumental in the sales of securities. To the lender or buyers of securities: spread financing risks and improve the security of loan fund; gain sufficient guarantee for the redemption of securities. Leasing guaranteeThis is a written undertaking issued by the guarantor to the leaser at the request of the lessee, guaranteeing that the lessee will timely pay the rent. Leasing guarantee can be divided into guarantee for financing leasing and guarantee for operating leasing by leasing mode. In leasing projects, the leaser often asks the bank to make guarantee for the timely payment of rent by the lessee to safeguard against the failure of the lessee to make timely rent payment (especially under financial leasing, when the lease term is long, and object of leasing is of specific nature, the leaser has to take big risk). Convenience provided by the product to the client To the leaser: facilitate the execution of leasing contract; gain guarantee for timely collection of rent. To the lessee: help the lessee gain the right to use the equipment; gain funds accommodation