Electronic letter of guarantee is a legally effective guarantee certificate issued by the guarantor to the beneficiary through computer network with CA certificate as the medium and electronic signature data message as the carrier. Generally speaking, the electronic guarantee is issued by the guarantor to the guarantor through the computer network. For the purpose of providing guarantee to the guaranteed, the guarantor uses CA certificate to electronically sign the data message, and through the media of computer network, an electronic credit certificate with legal effect is issued for the beneficiary.
Electronic letter of guarantee is the product of the information age. Like a paper letter of guarantee, it is an electronic guarantee certificate issued by a bank, an insurance company, a guarantee company or other guarantors to the beneficiary at the request of the insured, so as to ensure that the guarantor will perform certain payment or economic compensation responsibilities for the applicant in a certain amount and within a certain period of time when the applicant fails to fulfill his responsibilities or obligations as agreed by both parties.