信用证与银行保函（Letter of credit and bank guarantee）.docVIP

信用证与银行保函（Letter of credit and bank guarantee） As an important form of international settlement and guarantee bank guarantee and standby letter of credit, all is in order to solve the transaction because of the lack of understanding and trust to deal contract and cause some problems, but by reputable banks and other financial institutions as a guarantor, guarantee the applicant to fulfill the two sides signed the contract or related business other economic contracts under a certain responsibility or obligation. Their nature, status, role, scope of application and terms of payment are almost identical, so that in practice there is a phenomenon that will equate the two. But there must be two different concepts, accurately grasp the similarities and differences of them contribute to the proper use of them in practical work to promote international economic and trade development, but also conducive to the protection of the legitimate rights and interests of the parties. I. an overview of bank guarantees and standby letters of credit (I) bank guarantee. The bank guarantee (Banker s Letter of Guarantee) is also called the bank guarantee, refers to the bank (the guarantor) at the request of the applicant, to the third party (the beneficiary) a written guarantee certificate issued, the applicant fails to guarantee in according to the agreement between both parties to fulfill their responsibilities or obligations, by the bank on behalf of the performance of certain the amount of a certain period of time, within the scope of responsibility for the payment or economic liability. The liability of a guarantor for payment (or indemnity) due to the failure of the client to his or her obligations or breach of contract is sometimes a primary liability and sometimes a secondary liability. Primary obligation (Primary Obligation), also called independent payment (Independent Undertaking of Payment), which is the guarantors obligations independent of the client in the transaction under t