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Personal Banking > Intermediary Service > Guarantee
Guarantee

Definition:
The Performance Bond - Personal Finance refers to guarantee arrangement where the individual customer pledges the Certificate of Time Deposit and T-bond issued through Hua Xia Bank in exchange for Hua Xia Bank's writing of Performance Bond - Personal Finance. In such arrangement, Hua Xia Bank provides performance guarantee for the benefit of the creditor (guarantee letter’s beneficiary) of Loan Agreement covering repayment obligations of the customer (guarantee letter’s applicant) under the Loan Agreement. 
The guaranteed amount is the sum of principal and interest in the Loan Agreement and is capped at RMB 5 million.

Features: Fairly large sum, fairly long tenor; credit enhancement, close transaction. 
1. Fairly large sum and long tenor: The maximum amount of guarantee may reach RMB 5 million with tenor stretched to 5 years. 
2. Credit enhancement and close transaction: The customer guarantee is backed by bank credit to support consumption.

Applicable Clients:
Individual customers with need for personal financial service and are capable for repayment and counter-guarantee. The availability of the product is currently limited to Beijing.

Price:
Guarantee fee is assessed at 1‰ ~ 5‰ of the covered amount. The guarantee letter is counted as one year if the tenor falls within one year. The service fee is collected in lump sum and the floor fee rate is RMB 50.

Service Channels:
At Hua Xia Bank outlets provide performance bond consultancy, application, and processing. The Telephone Banking and Internet Banking provide advisory services.

Application Documents:
Valid ID card; original of loan contract or agreement; original copies of Personal Time Deposit Certificate or Certificate T-bond; other documents stipulated by Hua Xia Bank.

Service Flows:
1. Application: The applicant presents application to Hua Xia Bank and supplies the required application documents. 
2. Acceptance and approval: Hua Xia Bank staff-in-charge fills out the approval form and completes the approval procedures as per regulations.
3. Contract signing: Upon approval, Hua Xia Bank signs with the applicant theagreement and proceeds on counter-guarantee.
4. Writing guarantee letter: Hua Xia Bank writes guarantee letter to the applicant after collection of relevant service fees as per the agreement.
5. The parties file for guarantee termination and cancellation upon expiration of the guarantee letter.

Important Information: 
1. The applicant must provide adequate and valid counter-guarantee when filing for Performance Bond - Personal Finance. The means the counter-guarantee may be pledged Personal Certificate of Time Deposit or pledged Certificate T-bond. In addition, the line of counter-guarantee shall not fall through the sum of loan principal and interest. 
2. The pledged Personal Time Deposit Certificate must be under the title of the applicant and must be issued by Hua Xia Bank. The tenors of the pledged Time Deposit Certificate and Certificate T-bonds must be longer than the tenor of the guarantee letter.

Note: This page is for reference only, part of the business to local outlets announcement with specific provisions prevail.