I. The concept
Non-financial guarantees means that the banks meet the applicant's request, issuing for the beneficiary a written guarantee committing to pay an amount money to the beneficiary in case that the applicant does not fulfill certain non-financial types of transactions under the responsibility or obligation.

II. The types and usages
Non-financial guarantees include trading and engineering which are under the tender guarantees, performance guarantees, advance payment guarantees, quality guarantees, maintenance guarantees and payment guarantees and so on.
The non-finance guarantees are mainly used to meet the guaranteed needs of the contractor since the project starts to be bid until the project finishes.

III. The transfer and the notification of guarantees
In Laos, most of the constructions invested by Chinese enterprises have the contracts to be signed in of the project's head office in China as the project contractors, and thus guaranteed by the bank located in China by the corporation. To reduce the risk and cost of cross-border recourse, Laosese owners are generally required to open the Letter of Guarantee which requires the internal banks of Laos to transfer or inform. As the only Chinese bank in the North of Laos, our bank have the advantages of the regional guarantees notification, the efficiency and the prices.

IV. Special instructions
1, Our bank can transfer or notice the guarantees to all the Chinese and foreign banks over the world that meet our regulations.
2, The transfer and notification of bank guarantee only requires customers to provide related information and names of the applicant and the beneficiary within a simple procedure.
3, In order to meet customers’ demand for the timeliness of the guarantees, the customer should inform our bank the business requirements and the basic information about the bank opening guarantee in China ten working days in advance so that we can initiatively contact the internal bank which opened the guarantee and improve the efficiency.
4, If the domestic bank opening the guarantee is the Industrial and Commercial Bank of China, it can greatly improve the efficiency of transfer (need only two working days) with lower costs, so we advise the domestic clients and the clients in Laos to choose Industrial and Commercial Bank of China to handle guarantee letter.

V. Access conditions
1, Open settlement accounts in our bank;
2, Good financial credit with the capacity to perform contracts and to pay debt;
3, Provide the genuine, legitimate trading background; the main terms of the contract must be sufficient, vivid responsibility;
4, Need to provide the guarantee money and / or counter-guarantee money according to regulations, have the capacity to meet the requirements of providing guarantee money and/or counter –guarantee money ;
5, Need to deliver relevant fees as agreed under the related costs;
6, Other requests and conditions from our bank.

VI. Execution Procedures
The first step:
Customers have to offer our bank the following documents:
1, Business license transcript, tax registration certificate transcript;
2, Guarantee of the contracts, agreements, tenders and other documents which proved the genuine and legal background information of business
3, Security matters have to be obtained in advance in accordance with the provisions of the relevant departments, providing relevant approval or approval documents,
4, The applicant via auditing firms audited financial statements for recent two years and current financial statements (consistent with the full requirements apart from low-risk counter-guarantee provided by the bank head office);
5, Provide the information of counter-guarantee and counter-guarantor required in this chapter, provided by the relevant provisions of the bank head office;
6, Provide the authorization documents if customers are authorized
7, Other documents required by our bank
The second step:
Our bank will base on the information provided by the customer to conduct examination and give the prerequisites for implementation
The third step:
After customers meet the conditions approved by the bank, our bank will proceed to make this work
The fourth step:
After the guarantee expires, customers have to hand over the original guarantee documents to the bank
Note: For the customers using this service for the first time, their credits should be assessed, thus, please provide the following information:
1, The application for rating the credit of your firm, including: development process, module management, organizational structure, operating situation, competitive advantage, the main risks and the difficulties encountered, specific application issues, etc.;
2, Relevant documents registered or approved the establishment
3, Tax registration certificate;
4, The recently regulation and contracts or agreements established since the company established (original and photocopy);
5, Financial Report
6, The legal representative’s national identification card with signature sample, and the necessary personal information, or the agent’s national identification card, signature sample and certificate of valid authorization
7, Lists and signature samples of board members and important executives, financial executives;
8, The customer is a limited liability company, joint stock, joint ventures or contractual joint venture, should provide the consent of the Board or the contracting credit operations for the resolution, file, or have the same legal effect document or certificate;
9, Shareholders of the General Assembly resolution on the distribution of profits;
10, The recent three years and the latest term audited financial reports which are audited by independent auditing agency which established according to the law. Customer businesses set up less than three years have to submit annual financial reports since its establishment. The customers who can provide our bank the document of non-risk guarantee don’t need to submit financial reports.
11, Cash flow estimates and business plans;
12, The deposit and external security situation of the borrowers this year and last month
13, Reserved signature card and the certificates of openning an account.