Legal basis:
1. Measures for the Administration of External Guarantees of Domestic Institutions (Yinfa [1996] No.302) and its implementing rules ([97] Zheng Huifa Zi No.0/kloc).
2. Notice on Several Issues Concerning Strengthening Foreign Exchange Management of Capital Account (No.Huifa [1998]2 1)
3. Notice on Issues Related to Supplementary Registration of Foreign Debt and Foreign Guarantee (Caishuizi [1999] No.77)
The following is the operating procedure of SAFE. The specific requirements of safe may be slightly different from place to place, but there will be no major changes.
External guarantee approval
Audit materials
1. the guarantor's application report for external guarantee and the application form filled out by the applicant;
2. Provide the approval form for external guarantee;
3. Letter of intent for external guarantee contract;
4. Letter of intent for the main debt contract under the guarantee (if it is in a foreign language, the Chinese translation of the main terms shall be submitted and stamped with the seal of the applicant);
5. Balance sheets and profit and loss statements of the guarantor and the guaranteed in the previous year audited by a certified public accounting firm;
6. If the guarantor is a non-financial enterprise legal person, it is required to provide a certificate of foreign exchange receipts and payments in the previous year;
7. If it is a financial institution that handles external guarantee business for the first time, it shall also provide a financial business license;
8. If the guarantor is a branch of a financial institution, a letter of authorization from its head office shall be provided;
9. Supplementary explanatory materials that should be provided for the above materials, such as: a. Industrial and commercial business licenses of the guarantor and the guarantor; B. If the guarantor is an overseas Chinese-funded enterprise, provide the basic information registration form of the overseas investment enterprise issued by the foreign exchange bureau; C. If the guarantee project needs to be approved in advance, the approval document of the competent government department shall also be provided.
Examination and approval of external mortgage
Audit materials
1. An application report provided by the mortgagor for external mortgage;
2. Approval form for external guarantee;
3. Letter of intent for the mortgage principal debt contract (if it is in a foreign language, the Chinese translation of the main terms shall be submitted and stamped with the seal of the applicant);
4. Letter of intent for foreign-related mortgage contract (if it is in a foreign language, the Chinese version of the main terms shall be submitted and stamped with the seal of the applicant);
5. Ownership certificate and present value evaluation document of the mortgaged property;
6. Collateral mortgage registration record (re-mortgaged property);
7. Balance sheets and profit and loss statements of the mortgagor and guarantor in the previous year audited by a certified public accounting firm;
8. Proof of foreign exchange receipts and payments of the mortgagor in the previous year;
9. Supplementary explanatory materials that should be provided for the above materials, such as: a. Industrial and commercial business licenses of the guarantor and the guarantor;
B. If the guarantor is an overseas Chinese-funded enterprise, it shall provide the basic information registration form of the overseas investment enterprise issued by the foreign exchange bureau; If the guaranteed project needs to be approved in advance, the approval document of the competent government department shall also be provided.
External pledge approval
Audit materials
1. Pledger's application report for external pledge;
2. Approval form for external guarantee;
3. If the guarantee project needs to be approved in advance, it shall also provide the reply of the feasibility study report of the guarantee project or the reply of the competent government department and other relevant approval documents;
4. Letter of intent for the pledge of the principal debt contract (if it is in a foreign language, the Chinese translation of the main terms shall be submitted and stamped with the seal of the applicant);
5. Letter of intent for foreign pledge contract (if the contract is in a foreign language, the Chinese translation of the main terms shall be submitted and stamped with the seal of the applicant);
6. Ownership certificate and present value evaluation document of pledged property;
7. If the state has laws and regulations restricting pledge, the approval documents of relevant departments shall be provided;
8. Balance sheets and profit and loss statements of the pledgor and guarantor in the previous year audited by the accounting firm;
9. Proof of foreign exchange receipts and payments of the pledgor in the previous year;
10. Supplementary explanatory materials to be provided for the above materials, such as: a. industrial and commercial business licenses of the guarantor and the guarantor; B. If the guarantor is an overseas Chinese-funded enterprise, provide the basic information registration form of the overseas investment enterprise issued by the foreign exchange bureau; C. If the guarantee project needs to be approved in advance, the approval document of the competent government department shall also be provided.