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Personal Banking > Intermediary Service > Guarantee
Guarantee

Definition:
Performance Bond – Second-Hand House is a 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 – Second-Hand House. The arrangement provides guarantee for the benefit of the seller in the house sales contract (L/G beneficiary) covering the payment obligations of the customer (guarantee letter’s applicant) under house sales contract in property deals.

Features: Fairly large sum; credit enhancement, close transaction.
1. Fairly large sum: The maximum amount of guarantee may reach RMB 5 million. 
2. Credit enhancement and close transaction: The customer guarantee is backed by bank credit to support the the buying and selling of second-hand property.

Applicable Clients:
Customer who buy second-hand houses, property intermediaries and law firms. 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.

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 the agreement 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. Applicants should produce the property contract for the true and legal second-hand property deal. The property in question shall have property ownership certificate of truthful, legitimate, and clear property title. In case there are co-owners of the property, the co-owners' permission for sale is required.
2. Those who applying for the letter of guarantee on the second-hand house must provide adequate counter-guarantee to Hua Xia Bank. The means of 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. The pledged certificates must be under the title of the applicant and must be Time Deposit Certificate or T-bond issued by Hua Xia Bank.
3. 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.