1. What is a financing guarantee?
(A) the guarantee of things
It is mainly manifested in the mortgage and control of project assets, including the mortgage of real estate (such as land and buildings). ) and tangible movable property (such as machinery and equipment, finished products, semi-finished products, raw materials, etc. ) and the establishment of security interests in intangible movable property (such as contractual rights, company bank accounts, patent rights, etc.). ). If the debtor fails to perform the debt, the creditor may exercise his rights on the collateral to pay off his creditor's rights. There are two forms of security:
Mortgage refers to the transfer of the ownership of assets to the creditor (mortgagee) for the purpose of providing guarantee, but with an express or implied condition that the ownership of assets should be transferred to the debtor again after the debtor performs its obligations.
Promise. This form does not require the transfer of possession or ownership of assets and rights, but requires an agreement between creditors or debtors.
(2) the person's guarantee
The promise is made in the form of legal agreement, and the guarantor assumes certain obligations to the creditor. Obligation can be a secondary legal commitment, that is, if the guarantor (the principal debtor) fails to perform his obligations to the creditor (the beneficiary of the guarantee) (in case of default), he must assume the contractual obligations of the guarantor.
Project investors act as guarantors. Project investors operate the project and arrange financing by establishing special project companies.
Use a third party who has an interest in the project as a guarantor.
2. What is the scope of debt repayment by financing guarantee companies?
The scope of repayment on behalf of the creditor shall be subject to the debts involved in the Creditor's Rights and Debts Contract.
(1) With the approval of the regulatory authorities, a financing guarantee company may engage in some or all of the following financing guarantee businesses:
1, loan guarantee; 2. Bill acceptance guarantee; 3. Trade financing guarantee; 4. Project financing guarantee; 5. Letter of credit guarantee; 6. Other financing guarantee business.
(2) With the approval of the regulatory authorities, a financing guarantee company may concurrently run some or all of the following businesses:
1, litigation preservation guarantee; 2. Other performance guarantee services such as bid guarantee, advance payment guarantee, project performance guarantee and final payment guarantee; 3. Intermediary services such as financing consultation and financial consultancy related to guarantee business; 4. Invest with its own funds; 5. Other businesses specified by the regulatory authorities.
(3) A financing guarantee company may provide re-guarantee for the guarantee liabilities of other financing guarantee companies and handle the bond issuance guarantee business, but it shall meet the following conditions at the same time:
1, no record of bad violation of laws and regulations in recent two years; 2. Other prudential conditions stipulated by the regulatory authorities. Among them, the financing guarantee company engaged in the re-guarantee business shall not only meet the above conditions, but also have a registered capital of not less than RMB 654.38 billion and have been in business for more than two years.
(4) A financing guarantee company shall not engage in the following activities:
1, deposit absorption; 2. issue loans; 3. Entrusted to issue loans; 4. Entrusted investment; 5. Other activities prohibited by the regulatory authorities. If a financing guarantee company engages in illegal fund-raising activities, it shall be investigated and dealt with by the relevant departments according to law.
Three. What is the business scope of a financing guarantee company?
With the approval of the regulatory authorities, a financing guarantee company may engage in some or all of the following financing guarantee businesses:
(1) loan guarantee;
(2) Bill acceptance guarantee;
(3) Trade financing guarantee;
(4) Project financing guarantee;
(5) letter of credit guarantee;
(6) Other financing guarantee businesses.
A financing guarantee company refers to a limited liability company and a joint stock limited company established according to law and engaged in financing guarantee business. Financing guarantee refers to the behavior that the guarantor agrees with creditors such as banking financial institutions that when the guarantor fails to perform the financing debts owed to the creditors, the guarantor shall bear the guarantee responsibilities stipulated in the contract according to law.