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7.1 Bank’s Letter of Guarantee 7.2 Standby Letter of Credit 7.1 Bank’s Letter of Guarantee Concepts of L/G Parties to an L/G Types of L/G Procedure of L/G Contents of L/G Comparison between the L/G and the L/C The applicable rules for guarantees are the Uniform Rules for Demand Guarantees (ICC Publication No.458) and the Uniform Rules for Contract Guarantees (ICC Publication No.325). Parties to a L/G 申请人（Applicant/principal） 受益人（Beneficiary） 担保人（Guarantor） 通知行/转递行（Advising/Transmitting Bank） 反担保人/指示方（Counter-Guarantor/Instructing Party） In cases that the beneficiary requires a guarantee issued by a local bank, then a bank on the instruction of a principal may act as an instructing party to issue a counter guarantee in favor of a bank located in the beneficiary’s country, by the counter guarantee the local bank issues the required guarantee in favor of the beneficiary. Obligations and rights: undertakes to irrevocably pay or reimburse the local bank (guarantor, reissuing bank) the amount paid by it under its guarantee; has the right to claim payment from the principal. Types 1． Tender Guarantee/Bid Bond used to provide an assurance of the intention of the party submitting the tender to sign the contract if his tender is accepted. the guarantor undertakes, in the event of default by the principal in the obligations resulting from the submission of tender, to make payment to the beneficiary within the limits of a stated sum of money. A tender guarantee is usually issued for 2％－5％of the tender value. The period of validity is usually between three and six months until the signing of the contract or issuing of a performance bond. 3.Repayment guarantee A repayment guarantee is an undertaking given by a bank (the guarantor) at the request of a supplier of goods or service or other contractor (the principal) to a buyer or an employer (the beneficiary), whereby the bank undertakes to make payment to the beneficiary within the limi