Fillable Printable Sample Letter of Guarantee
Fillable Printable Sample Letter of Guarantee
Sample Letter of Guarantee
LETTER OF GUARANTEE
Introduction
There are many types of LGs but the underlying purpose is the same for all, that being a guarantee of
payment to a supplier. A Payment Guarantee for example, serves as a security for the supplier should the
purchaser not meet his payment obligation on a timely basis. Another type of guarantee is a Performance
Bond. When a bank issues a Performance Bond, it guarantees to pay a certain sum if the seller’s
contractual promise to the purchaser to make a delivery or provide a service is not met. Letters of
Guarantee may also be granted for advanced payment, retention bonds, bid bonds, performance bonds,
credit collateral and customs guarantees. The purpose of the letter of Guarantee is the same for all, that
being a guarantee of payment to a supplier. A Payment Guarantee for example, serves as a security for
the supplier should the purchaser not meet his payment obligation on a timely basis. Another type of
guarantee is a Performance Bond. When a bank issues a Performance Bond, it guarantees to pay a certain
sum if the seller’s contractual promise to the purchaser to make a delivery or provide a service is not met.
Letters of Guarantee may also be granted for advanced payment, retention bonds, bid bonds, performance
bonds, credit collateral and customs guarantees.
Sample
LETTER OF GUARANTEE
Guarantor: China Mobile Communications Corporation.
Address: No. 53A, Xibianmenneidajie, Xuanwuqu, Beijing.
Postal Code: 100053.
Legal Representative: Zhang Ligui.
Correspondent Bank: Bank of China, Beijing Branch.
Account No: 06484108101001.
Guarantee: China Mobile (Hong Kong) Limited.
Address: 60/F, The Center, No. 99, Queen's Road Central, Central,
Hong Kong.
Legal Representative: Wang Xiaochu.
Telephone No.: 00852-31218888.
Correspondent Bank: Bank of China, Hong Kong Branch.
Account No: 01287511021122.
WHEREAS:
1. In accordance with the "Administrative Regulations for
Corporate Bonds", and approved by the State Planning and
Development Commission (Approval No. Jijingdiao[2001]218), the
bond issuer, Guangdong Mobile Communication Company Limited
(the "Issuer"), issued RMB5 billion of "China Mobile
Communication Corporate Bond, 2001" due in 2011 (the "Bonds");
2. The aforesaid bond issue is guaranteed by China Mobile (Hong
Kong) Limited, a company and subsisting legal entity
established in accordance with relevant laws of Hong Kong
Special Administrative Region of the People's Republic of
China ("China, Hong Kong"), which has the legal right to
provide guarantee for the Bonds issued in accordance with
"Administrative Regulations for Corporate Bonds" and
"Guarantee Law of the People's Republic of China" and other
relevant laws and regulations, and issued a joint and
irrevocable guarantee for the performance of the Bonds (the
"Guarantee Letter from China Mobile (Hong Kong) Limited for
Guangdong Mobile Communication Company Limited");
3. China Mobile Communications Corporation is a legal entity
under the laws of the People's Republic of China, which has
the legal right to provide guarantee in accordance with
"Guarantee Law of the People's Republic of China" and other
relevant laws and regulations;
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4. Upon the issuance of this Letter of Guarantee, China Mobile
Communications Corporation has undergone fair disclosure of
relevant information in accordance with laws of the People's
Republic of China, and has the ability to fulfill the
obligations of this Letter of Guarantee.
In accordance with obligations set in the "Guarantee Letter from China Mobile
(Hong Kong) Limited for Guangdong Mobile Communication Company Limited", China
Mobile Communications Corporation hereby undertakes an unconditional and
irrevocable guarantee for the due performance of the Bonds:
1. Scope of Guarantee
The scope of guarantee of China Mobile Communications Corporation is:
obligations undertook by China Mobile (Hong Kong) Limited for the issuance and
repayment of the Bonds in accordance with the "Guarantee Letter from China
Mobile (Hong Kong) Limited for Guangdong Mobile Communication Company Limited".
2. Way of Guarantee
China Mobile Communications Corporation undertakes a joint guarantee
for the performance of the Bonds.
3. Undertaking of Obligations of Guarantee
Within the period of guarantee set in article 4 hereunder, if the
Issuer, Guangdong Mobile Communication Company Limited, is unable to pay the
principal and any interest of the Bonds that are due and payable in accordance
with the issue terms and conditions of the "Articles of Issuance of China Mobile
Communication Corporate Bond, 2001" set for the issuance of the Bonds and
approved by the State Planning and Development Commission; and China Mobile
(Hong Kong) Limited is unable to perform its guaranteed obligations for the
Bonds, China Mobile Communications Corporation shall undertake the obligations
in accordance with relevant laws, regulations and articles of this Letter of
Guarantee.
After China Mobile Communications Corporation performed its obligations
as set in this Letter of Guarantee, China Mobile (Hong Kong) Limited shall
recourse the Issuer by all necessary means, China Mobile Communications
Corporation has the right of priority for repayment over amount of money
recourse by China Mobile (Hong Kong) Limited from the Issuer or other assets.
China Mobile Communications Corporation has the right to recourse directly from
China Mobile (Hong Kong) Limited and the Issuer whenever deems fit.
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4. Period of Guarantee
The period of guarantee of China Mobile Communications Corporation is
the same as the period of guarantee of China Mobile (Hong Kong) Limited as set
in the "Guarantee Letter from China Mobile (Hong Kong) Limited for Guangdong
Mobile Communication Company Limited", i.e., from the first interest payment
date of the Bonds to one day before the expiry date of the Bonds in the next
calendar year. Not asking China Mobile Communications Corporation to perform its
obligations during this period by China Mobile (Hong Kong) Limited will deem as
waiver of the obligations of China Mobile Communications Corporation.
5. Disclosure of Information
China Mobile Communications Corporation shall disclose related
information in accordance with legal requirements of the People's Republic of
China.
6. Governing Law
China Mobile Communications Corporation hereby confirms, this Letter of
Guarantee shall be governed by, and construed in accordance with, the laws of
the People's Republic of China.
7. Amendment of Issuing Terms of the Bonds
Application for amendments of interest rate, period, payments for
principal and interest of the Bonds from the Issuer must have prior written
approval from China Mobile Communications Corporation. Upon approval of
amendments by related state authorities, China Mobile Communications Corporation
will continue to undertake the obligations of this Letter of Guarantee.
8. Commencement Date of this Letter of Guarantee
Upon approval from related regulatory authorities, this Letter of
Guarantee will be effective from the date of issuance of the Bonds. If the Bonds
are not issued within six months after the execution of this Letter of
Guarantee, this Letter of Guarantee will automatically be revoked. Unless
expressly aforementioned in this article, this Letter of Guarantee shall not be
amended or revoked during the period of guarantee specified in article 4 herein.
Guarantor: China Mobile Communications Corporation
Legal Representative
Or Authorized Representative:
April 19, 2001.
