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   BOC Singapore >> Corporate Banking >> Trade Finance >> Bank Guarantee

Advance Payment Refund Guarantee


 

Introduction

Advanced payment refund guarantee is issued to guarantee the refund of Advance payment received by the Applicant under a contract due to the Applicant’s non-performance of contractual obligations.

Product Features

1) Mitigate the mutual distrust of parties involved in sale or project.

2) Guarantee proper and timely performance of the contract.

3) Reduce the need for litigation and arbitration cases arising due in order to recover advance payments made under a contract for non-performance of contractual obligations.

4) Ensure due compensation when contract breached.

5) Suitable for constructors who received advance payments for construction work which are to be carried out in due course.

Application requirements

1) Legally registered in Singapore.

2) Maintain current account with our bank.

3) Companies must posses the proficiency in performance under the contract.

4) A credit facility or at least 100% cash margin or deposits must be provided(must be pre-arranged with the bank).

5) The format of the bankers guarantee that is to be issued must be acceptable to the bank(the format is subjected to review by the bank’s Legal Department). 

Application Procedures

1. Applicant submits banker guarantee application form together with the documentary evidence showing the need for the Advance payment refund guarantee eg the commercial contract.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents eg deposit slip or Letter of set-off or Charge documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the banker guarantee application form, the format of the guarantee and checks the security documentation ie Letter of set-off, Charge documents, etc.

5. The bankers guarantee is issued.

Download Forms

Form_Banker's Guarantee Application & Indemnity.doc

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