from: bank of china, head office
re: advance payment guarantee form 
date:
our ref.
 

TO: 

Gentlemen. 

With reference to the contract No. …….. (hereinafter called the contract) signed between …..…… and …………………………………... ( hereinafter called the seller ) on. ….……. for the supply of ……………. At the request of the seller we, bank of china, head office, having our registered office at No. 1 fuxingmennei dajie, Beijing, china, hereby open an irrevocable letter of guarantee No. ….……. In favor of …………………………………… 

We undertake the guarantee as follows:

1. Our liability under this letter of guarantee shall be limited to …..…. ( say ……….. ) plus interest at the rate of % per annum counting from the date on which the seller received the down payment up to the date on which the refund is made.

2. if you declare that the seller fails to deliver all the equipment in accordance with the contract, and the seller could not provide with us the relative invoice and the bill of lading under the a/m contract, we shall within (7) business days after receipt of you first written demand, unconditionally refund to you any amount up to ..……….. plus interest at the rate of % per annum counting from the date on which the seller received the down payment up to the date on which the refund is made and for which this letter of guarantee is still valid according to point 3 below. 

3. this letter of guarantee shall become effective as soon as the seller receive the down payment and shall automatically reduce by % the invoice value of each shipment without any confirmation from you. 

This letter of guarantee expires thirty (30) days after the last contractual delivery date, I. e. on …..…. In case the contractual parties agree to extend the period for the delivery of the products which will be proved by presentation of respective agreement to us, the validity of this guarantee shall be extended according to the new period. The extension has to be brought to our knowledge prior to the expiration of this guarantee. 

This letter of guarantee has to be returned to us after the date of validity expires.