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

Quality Assurance Guarantee


 

Introduction

A Quality Assurance Guarantee is issued to guarantee product performance during the warranty/maintenance period provided under an underlying contract.

Product Features

1) Mitigate mutual distrust of parties involved in contract.

2) Guarantee proper performance of the contract.

3) Reduce cash injection in a contract if cash deposit is otherwise required.

4) Improves liquidity and increase the contractor or supplier’s market competitiveness.

5) Commonly required in construction projects and contracts involving capital goods.

Application requirements

1) Legally registered in Singapore.

2) Maintain current account with our bank.

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

4) A credit facility or at least 100% cash margin or deposits must be provided(process 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 Quality Assurance 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 banker guarantee is issued.

Download Forms

Form_Banker's Guarantee Application & Indemnity.doc

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