What does a letter of guarantee mean?

Question 1: What does a letter of guarantee mean? (Financial concept) Definition of letter of guarantee: Letter of guarantee is a special form of guarantee that converts the commercial reputation of both parties into bank reputation in commercial transactions. A letter of guarantee is different from a general guarantee contract and a standby letter of credit. Therefore, banks should pay more attention to reducing their own risks when issuing a letter of guarantee. A bank guarantee refers to a written commitment document with a guarantee nature issued by the bank at the request of the client. Once the client fails to repay the debt or perform the agreed obligations as stipulated in the contract signed with the beneficiary, the bank will perform the guarantee liability. It has two characteristics. First, the letter of guarantee is issued based on the business contract, but it is not attached to the business contract and has independent legal effect. Second, bank credit serves as a guarantee and is easily accepted by both parties to the contract. The legal relationship between the parties is: 1. The creditor's rights and debts or other rights and obligations relationship between the principal and the beneficiary based on the contract signed between them. 2. The legal relationship between the client and the bank is an entrustment and guarantee relationship based on the "Letter of Guarantee" signed by both parties. 3. The legal relationship between the guarantor bank and the beneficiary is a guarantee relationship based on the letter of guarantee. Depending on the nature of the guarantee, it can be divided into subordinate guarantee and demand guarantee. A demand guarantee is a letter issued by a bank that expresses in writing that it will assume unconditional payment responsibility when the beneficiary submits a claim that complies with the terms of the guarantee or other conditions stipulated in the guarantee.

Question 2: What does Ctrip’s Korean visa default guarantee letter mean? If you are worried that you will run away, sign the guarantee letter. If you really run away, they will charge a deposit.

Question 3: What is a performance bond? A performance bond means that after signing the contract, the tenderer and the successful bidder become the contractor and the contractor. The contractor must provide the contractor with a performance guarantee issued by a bank, with the amount generally being 10%-15% of the contract amount, to ensure that the contractor performs according to the terms of the contract. Otherwise, the bank will be responsible for compensating a certain amount, up to a maximum of the total amount of the performance guarantee.

Question 4: What does guarantee information mean? Definition of guarantee

Guarantee refers to a system in which the law uses the credit of the debtor or a third party or specific property to urge the debtor to perform its debts in order to ensure that a specific creditor realizes its claim.

Guarantee is a legal measure taken to guarantee the realization of a claim. Judging from the content of my country's guarantee law, debt guarantees should be said to refer to methods based on certain properties of the parties that can be used to urge the debtor to perform its debts and ensure the realization of creditor's rights. Guarantee in the guarantee law, also known as creditor's rights guarantee, debt guarantee, and debt guarantee, is an umbrella concept with rich connotations and extremely broad extensions. There is no clear definition of this in our country's legislation.

Responsible (for something); guarantee, guarantee that something will be done or that there will be no problems. It is a commitment and a constraint on the behavior of the guarantor and the guaranteed party. Guarantees generally occur in economic activities. If the guaranteed person fails to fulfill the promise on time, the guarantor will generally perform the promise on behalf of the guaranteed person. Guarantees generally include oral guarantees and written guarantees, but only written guarantees have real legal effect.

In civil law, it refers to actions such as guarantees and mortgages taken to ensure the realization of claims. If A borrows money from a bank, B provides a guarantee for A to ensure that A will fulfill its repayment obligations within a specified period. If A fails to perform its obligations, B will fulfill it. Our country promulgated the Guarantee Law in 1995, stipulating relevant matters. Guarantees in the Criminal Procedure Law provide certain guarantees for release on bail pending trial, medical parole, etc.

In our lives, there is another kind of guarantee for a person's character. Most of these guarantees are verbal in nature, and their meaning is only to show the guarantor's support for the guaranteed person. A kind of trust and appreciation does not have much practical significance. It is only a kind of supervision by the guarantor on the guaranteed person, but this kind of guarantee still has certain binding force on the behavior of both parties. Example: I vouch for my reputation that this person is absolutely reliable.

There is also a more special kind of guarantee, which is immigration guarantee. Most countries currently adopt this policy.

Most immigration guarantees have the nature of the two types of guarantees mentioned above.

[Edit this paragraph] Nature of guarantee

1. Equality

The parties in the guarantee relationship have equal status, and the rights and obligations in the legal guarantee relationship are negotiated equally by both parties. result.

2. Voluntary (selective)

my country’s contract law has established a guarantee system, but it does not stipulate that the parties must establish a guarantee.

3. Subordination (subsidiarity)

The guaranteed debt is a subordinate debt, and the guaranteed debt is a principal debt. If the principal debt is invalid or extinguished, the subordinate debt will also be invalid or eliminated. wipe out.

4. Guarantee

Guaranteeing the performance of the contract is the most fundamental feature of the guarantee.

5. Supplementary

5.1 The guarantee right holder’s exercise of the guarantee rights is based on the premise that the main debt has expired and the debt has not been performed.

5.2 The guarantor shall have the right of first-initiative defense against the guarantee obligee.

Guarantee methods

1. According to legal provisions, there are five guarantee methods, namely guarantee, mortgage, pledge, lien and deposit.

2. What needs to be noted is:

2.1 When providing guarantees for legal claims, the parties can only provide the above five types of guarantees and cannot create new forms of guarantees.

2.2 The legal effects produced by the five forms of guarantees are as follows:

2.2.1 The rights generated by the guarantee are creditor's rights and do not have priority for repayment;

2.2.2 The rights arising from the deposit are also claims and do not have priority in repayment;

2.2.3 Mortgages, liens, and pledges obtain security rights, and the rights to the collateral and the proceeds from its realization are The price has priority in payment. Types and forms of guarantee contracts

Guarantee contracts include guarantee contracts, mortgage contracts, pledge contracts, and deposit contracts. A contract is not required to exercise the right of lien. A guarantee contract can be a separately concluded written contract (including letters, faxes, etc. with a guarantee nature between the parties), or it can be a guarantee clause in the main contract.

[Edit this paragraph] Scope of guarantee

1. Scope of guarantee: main claim and interest, liquidated damages, damages and costs of realizing the claim. If the guarantee contract stipulates otherwise, the stipulation shall prevail. If the parties have not agreed on the scope of the guarantee or the agreement is unclear, the guarantor shall bear guarantee liability for all debts.

2. Mortgage guarantee scope: main creditor's rights and interest, liquidated damages, damages and costs for realizing mortgage rights. If the mortgage contract stipulates otherwise, the stipulation shall prevail.

3. Pledge guarantee scope: main creditor's rights and interest, liquidated damages, damages, pledge storage fees and fees for realizing the pledge. If the pledge contract stipulates otherwise, the stipulation shall prevail.

4. Lien guarantee scope: main creditor's rights and interest, liquidated damages, damages, lien storage costs and lien realization...gt; gt;

Question 5: What does letter of guarantee and credit extension mean? Letter of Guarantee (L/G), also known as letter of guarantee, refers to a written credit guarantee certificate issued by a bank, insurance company, guarantee company or individual to a third party at the request of the applicant.

Credit refers to funds provided directly by commercial banks to non-financial institutional customers, or guarantees for compensation and payment responsibilities that customers may incur in relevant economic activities, including loans, trade financing, and bill financing. , financial leasing, overdrafts, various advances and other on-balance sheet businesses, as well as bill acceptance, issuance of letters of credit, letters of guarantee, standby letters of credit, letter of credit confirmations, bond issuance guarantees, loan guarantees, asset sales with recourse, Off-balance sheet operations such as unused irrevocable loan commitments.

For details, see: baike.baidu/view/95142#1

baike.baidu/view/188569

Question 6: What is a bid guarantee? It refers to the bid guarantee attached by the bank when the bidder submits the bid to the tenderer. After the bid is opened, the bank bid guarantee previously attached by the winning bidder will take effect immediately. The bid guarantee refers to the bid guarantee used by the bidder to prevent the winning bidder from not signing the contract. The beneficiary of a kind of financial guarantee for losses is the construction unit of the project. The bidder needs to go to the bank to apply for it and attach it to the bidding document

Question 7: What does the contract guarantee mean? Who can tell me? A contract guarantee is used to ensure the performance of the contract and is handled at the bank. For a general contract guarantee of 1 million, you need to deposit about 300,000 in the bank to get it. If your company has a good reputation, you can get a guarantee of 1 million for less than 100,000. If you violate the contract, the other party does not need to If you file a lawsuit with you first, you can ask the bank to pay compensation directly from your contract guarantee.

Question 8: What does the quality guarantee mean? 1. It is applicable to projects, supply and installation and other contracts that enter the warranty period or maintenance period. The owner or buyer requires the contractor or supplier to perform warranty and maintenance as promised. The status of the obligation is the guarantee for the normal performance of the contract obligations; 2. After the project contracting, supply and installation and other projects enter the warranty period or maintenance period, the owner and buyer will avoid the quality of the project and goods not complying with the contract provisions, and the contractor, If the supplier is unwilling or unwilling to carry out repairs, replacements and repairs, causing its own losses, the contractor or supplier is often required to provide a quality guarantee before the expiration of the performance guarantee period to restrict its behavior during the warranty period.

The role of the quality warranty guarantee letter

Reduce the occupation of funds caused by the guaranteed person paying cash deposit or withholding the quality deposit, and speed up the collection of corporate accounts receivable. Improve the market competitiveness of project contractors or suppliers.

Question 9: What is a counter-guarantee letter? The meaning of a counter-guarantee letter

A counter-guarantee letter is a legal document

To understand it in a popular way is , the party obtains a loan from the bank, another company guarantees the loan to the bank, and the lender provides a counter-guarantee to the company. Such a document is called a counter-guarantee letter.

Types of counter-guarantee letters

(1) Counter-guarantee letters issued by other banks or non-bank financial institutions or counter-guarantee letters transferable to the guaranteeing bank;

(2) Written counter-guarantee letter issued by a large enterprise or a provincial or some municipal-level foreign trade company, industrial and trade company;

(3) Issued by other economic entities with financial repayment ability Written counter-guarantee letter;

Notes on counter-guarantee letters

(1) The amount and currency in the counter-guarantee letter should be consistent with the amount and currency of the bank's external guarantee , to prevent possible exchange rate risks.

(2) Counter-guarantees issued separately by the *** department are generally not accepted.

(3) The validity period of the counter-guarantee should be slightly longer than the final validity period of the guarantee issued by the bank to avoid the situation where the beneficiary makes a claim at the end of the validity period stipulated in the bank guarantee and the bank is too late to request compensation from the counter-guarantor. occur. At the same time, the counter-guarantor should state that the counter-guarantee will continue to be valid until the amount advanced by the bank is compensated.

Question 10: What is a bank guarantee? What is the function of a bank guarantee? An advance payment guarantee refers to a way for the bank to guarantee the contractor. After the bank issues an advance payment guarantee that meets the business requirements, the contractor If a person receives an advance payment but fails to comply with the terms of the contract and fails to supply goods or perform construction on time (you can interpret this as a breach of contract), the owner can file a claim with the bank by providing relevant evidence. The bank may pay on demand. obligation.

The contractor can issue a balance guarantee at the bank. It depends on the contractor's credit in the bank. The deposit ratio for good credit is relatively low, and the deposit ratio for bad credit is higher, or even the full deposit. . I can issue bank guarantees such as balance guarantees, bid guarantees, and performance guarantees without deposits. No deposit is required, and there is no mortgage pledge. The rates are very low. If you are interested, please chat privately.