Performance Standby Letters of Credit
A Performance Standby Letters of Credit is a written document issued by Bank of China U.S.A. at the request of the customer to the owner of a contracted project or the buyer of a sales deal, guaranteeing the applicant will perform and complete the contracts.
FEATURES & BENEFITS
Prevents mutual mistrust
Solves the problem of mutual mistrust between both parties of a transaction. Bank of China U.S.A. enables the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.
Guarantees fulfillment of contractual obligations, as well as quality of the subject matter of contract.
Avoid contract breaching activities
Indemnifies the damaged party and penalize the defaulting party in case of breach of contract to avoid or reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.