The English terms for "银行保函直开" and "转开" are "direct issuance of bank guarantees" and "transfer issuance" respectively.
In the direct issuance process, a bank guarantee is issued directly by the issuing bank to the beneficiary. The beneficiary is the party who will receive the payment if the terms of the guarantee are not met by the account party.
1. Application: The account party submits an application to the bank for a bank guarantee.
2. Evaluation: The bank evaluates the application and assesses the creditworthiness of the account party.
3. Issuance: If approved, the bank issues the bank guarantee directly to the beneficiary.
4. Delivery: The bank delivers the original bank guarantee to the beneficiary through secure means such as courier or registered mail.
In transfer issuance, the bank guarantee is initially issued to the applicant. The applicant can then transfer the guarantee to the beneficiary as per their requirements.
1. Application: The applicant applies for a bank guarantee from the issuing bank.
2. Issuance: Upon approval, the bank issues the bank guarantee to the applicant.
3. Indorsement: The applicant indorses (signs on the back) the bank guarantee to the beneficiary, thereby transferring the rights and obligations to the beneficiary.
4. Notification: The applicant notifies the issuing bank about the transfer of the bank guarantee to the beneficiary.
The main difference between direct issuance and transfer issuance lies in who receives the bank guarantee initially. In direct issuance, it is sent directly to the beneficiary, while in transfer issuance, it is initially given to the applicant.
Another difference is the involvement of the applicant or account party. In direct issuance, the account party applies for the bank guarantee, whereas in transfer issuance, the applicant applies for it and later transfers it to the beneficiary.
Understanding the English terms for "银行保函直开" and "转开" can help facilitate communication in the banking sector. Whether it is direct issuance or transfer issuance, bank guarantees play a crucial role in ensuring trust and financial security in various business transactions.
