Tender Standby Letters of Credit

INTRODUCTION

A Tender Standby Letters of Credit is a written document issued by Bank of China U.S.A. at the request of the tenderer for construction and procurement of project bids, committing that the tenderer will not withdraw or amend its bid during the validity period and will sign the contract or submit performance Standby Letter of Credit within the preset time once the bid is secured.

FEATURES & BENEFITS

Act as a guarantor: Bank of China U.S.A. acts as a guarantor to ensure a smooth transaction
Reduce financial pressure: Reduces financial pressure by freeing up funds of the tenderer, as an alternative to cash margin
Reduce contract breaches: Reduces the likelihood of contract breaches by indemnifying the damaged party and penalizing the defaulting party