Product definition:

The acceptance business of banker’s acceptance bill refers to the business to accept the banker’s acceptance bill signed and issued by the bank, in order to meet the client’s payment demand resulted from true and legal trades, with the arranged, foreseeable sales revenues and other legal incomes as the capital source for cashing.

Application conditions

(1)    The clients who open account with our bank, and legal persons and other organizations that engage in business activities.

(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)    Other conditions required by our bank.

Time limit of acceptance

The time limit for settlement shall be no longer than 6 months.

Amount of acceptance

(1)    The amount of acceptance shall not exceed the amount of payable under the corresponding transaction.

(2)    The client’s amount of banker’s acceptance bill with our bank shall be controlled within 10% of the sales revenue of last year or the past 12 months (one month before application). In particular cases, it can be extended to 20%. The client is required to provide fully effective guarantee on the differential section of the face amount of acceptance bill. Under normal circumstances, our bank shall conduct notes businesses with 100% cash deposit and low risk.

Acceptance guarantee

(1)    A cash deposit not lower than the proportion of 20% to the face amount shall be made with the bank that conducts acceptance business of banker’s acceptance bill. The amount of cash deposit for banker’s acceptance bill shall be included in the cash deposit system, which shall be settled trade by trade with each draft under specialized management.

(2)    Collusion of special account of cash deposit with client and mutually embezzling among sub-accounts are forbidden. Cash deposit is not allowed to be paid in advance. The clients are required to provide fully effective guarantee on the differential section between the cash deposit made according to the required proportion and the face amount of banker’s acceptance bill. Under normal circumstances, our bank shall conduct notes businesses with 100% cash deposit and low risk.