Product definition

It is a bill activity of the bearer of a banker’s acceptance bill to transfer the right of bill to the bank handling notes discounting business before the due date of a bill, to collect money by discounting certain interest. It is a way that the managing bank to circulate necessary funds to the bearer of acceptance bill.

Application conditions

(1)    The bearer who open deposit accounts with our bank, the corporate clients and other economic organizations that have settlement businesses with our bank;

(2)    According with the industrial, environmental protection and safety production policies of the country and the loan policies of the handling banks and credit cooperatives;

(3)    With normal production operation, good product quality and service and with sustainable operation ability;

(4)    With good financial situation, with reliable capital source to pay draft amount and without poor credit records;

(5)    There are true commodity trading relationships between bearer and drawer (or direct remote holder ) of a bill;

(6)    The banker’s acceptance bill held by the bearer is a valid bill with all the key elements stipulated by “Law of Bill of the People’s Republic of China ”;

(7)    Other conditions required by our bank.

Term of discount

The term of discount shall be from the date of discount to the dues date of bill, no longer than 6 months. The term of discount shall be calculated to one day before the due date of bill. 3 day’s money transferring period shall be added to the term of discount and the calculation of discounting interest, if the accepting banks is located in places other than the bearer’s hometown.

Discounting amount

The discounting amount shall be calculated according to the face value by deducting the discount interest.