Note Buy-in

Product Introduction

Note Buy-in refers to a financing business in which the bank buys in a demand draft, cashier’s check or check on which an overseas bank/financial institution is the payer, and hands over the balance to the well meaning note holder after having deducted corresponding discounting interest from the note denomination.

Service Object

The applicant must be an enterprise or institution that has independent legal person qualification and has established a business relation with our bank; for individual note buy-in, the customer must hold a Chinese resident ID card, and the note denomination must be reasonable.

Application Conditions

1.The note-issuing bank/financial institution shall have established an agency relation with our bank and have a good credit standing.

2.The authenticity of the note must be verified; as for a large-denomination note, our bank will further verify its authenticity by inquiring the note-issuing bank by means of telegram, so as to prevent buying in a “cloned note”.

3.The note elements must be complete and clear. They include the note number, amount, name of the note issuer, name of the payee, date, seal and signature.

4.The applicant of the buy-in note shall be the legitimate holder of the note.

5.The endorsement of the note shall be consistent with the title, which is an unrestricted title.

6.A note issued by a bank located in a region or country where the political situation is unstable, or foreign exchange control is stringent, or outward payment is difficult, or by a bank of which the credit standing is not good, is usually not accepted.

7.The applicant shall be creditworthy, capable of paying back the note payment advanced by our bank in case the note is refused or bounced.

Business Procedure

1.The customer submits the note and note buy-in application to our bank.

2.Our bank examines the note to verify its authenticity and the completeness and clearness of its elements, then agrees to buy in the note.

3.Our bank releases the note balance to the applicant after having deducted the interest accrued from the note buy-in date to the note payment received date according to the interest rate specified by our bank.

4.Our bank collects the note payment from the note-issuing bank in a timely fashion.