Basic Qualifications for Banker's Acceptance Application

·	Borrowers should be enterprises, institutions and other economic organizations approved and registered, and annually checked up by industrial and commercial administrative authorities (or their superior competent departments);
·	Having opened settlement accounts at the China Merchants Bank;
·	With legal commodity trading background;
·	Capable of repay principal and due interest on time;
·	With certain proportion of guaranty fund, while the balance should be replenished by collaterals, hypothecation or third-party guaranty with sufficient value;

Related Rules on Banker's Acceptance Bills

·	Quota: the value for a single bill should not exceed RMB10 million yuan;
·	Maturity: decided by pertinent trade contracts but should not exceed 6 months;
·	Service Charge: 0.05 percent of the value accepted; for value less than RMB10 yuan, the charge is a fixed rate of 10 yuan.

Procedure for Banker's Acceptance Service Application
The client fills in the "China Merchants Bank Acceptance Bill Service Application Letter," and submits documents as are required for circulating fund loan application.

Encashment of Banker's Acceptance Bill
Acceptance applier is liable to lodge adequate fund on its account before the maturity of the acceptance bill. At the sight of the bill upon maturity, the China Merchants Bank unconditionally withholds the value of this bill from the acceptance applier's account in favorite of the bill bearer. In case the applier's account does not have sufficient fund, the Bank will deem the balance as overdue loans to the applier.

The CMB encourages and gives priority to acceptance applications from appliers with full-amount guaranty funds (or full-amount legal deposits) as hypothecation.