Guarantee Claim Fee

Guarantee Claim Fee refers to the fee charged by the guarantor bank (or insurance company) to the applicant (usually the seller or contractor) when the beneficiary of the guarantee (usually the buyer or employer) makes a claim against the guarantor bank in accordance with the terms of the guarantee. This fee typically includes the bank's handling fee for processing the claim, legal consultation fees, funding occupation costs, etc., and sometimes also includes the costs of extending or reissuing the guarantee due to the claim. It is commonly used in international engineering contracting, bulk commodity trade, complete equipment export, and other businesses involving large advance payments or performance guarantees. Note: This fee does not necessarily occur; it is only incurred when the beneficiary actually makes a claim. The applicant should specify the calculation method and cap of this fee in the guarantee application agreement to avoid arbitrary charges by the bank. At the same time, it is necessary to distinguish the guarantee claim fee from the guarantee issuance fee, amendment fee, and extension fee—the former is triggered by a claim, while the latter three are routine fees in the life cycle of the guarantee. In addition, if the claim is proven to be malicious or improper, the applicant may recover this fee from the beneficiary based on the underlying contract.