The bank's guarantee business refers to the behavior that the bank promises to undertake all obligations to the other party when the applicant fails to perform the contract at the application of one party in a certain transaction. Only customers of banks and financial institutions with corresponding business qualifications can apply.

Guarantee provisions of commercial banks

1. The guarantor of general guarantee has the right to refuse to undertake the guarantee liability to the creditor before the main contract dispute is tried or arbitrated and the debtor's property is enforced according to law.

2. When the debtor of joint and several liability guarantee fails to perform the due debt or the circumstances agreed by the parties occur, the creditor may require the debtor to perform the debt, or may require the guarantor to assume the guarantee liability within the scope of its guarantee.

What are the obligations of the lender?

The obligations of the lender are as follows

1. The lender shall provide loans to the borrower according to the date and amount agreed in the loan contract;

2. The loan interest shall not be deducted from the principal in advance;

3. If the lender fails to provide the loan on the agreed date and amount, it shall pay the liquidated damages as agreed;

4. The loan interest rate of financial institutions handling loan business shall be determined according to the upper and lower limits of the loan interest rate stipulated by the People's Bank of China.

Legal basis:

Article 687 of the Civil Code of People's Republic of China (PRC)

If the parties agree in the suretyship contract that the surety shall bear the suretyship liability when the debtor fails to perform the debt, it is a general suretyship.

The guarantor of a general guarantee has the right to refuse to undertake the guarantee liability to the creditor before the main contract dispute has been tried or arbitrated and the debtor's property has been enforced according to law, except in one of the following circumstances:

(1) The debtor's whereabouts are unknown and there is no property available for execution;

(2) The people's court has accepted the bankruptcy case of the debtor;

(3) The creditor has evidence to prove that the debtor's property is insufficient to perform all debts or cannot perform debts;

(4) The Guarantor waives the rights stipulated in this clause in writing.