Administrative Measures For Financial Leasing Companies

Original Language Title: 金融租赁公司管理办法

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(January 23, 2007 Chinese Banking Regulatory Commission released 2007 of 1th come into force on March 1, 2007) Chapter I General provisions article to promote the healthy development of China's financial leasing, strengthen the supervision and management of financial leasing companies, according to the People's Republic of China banking supervision law and the People's Republic of China company law and other laws and regulations, these measures are formulated.
    Second financial leasing companies in these measures refers to approved by the China Banking Regulatory Commission, to non-bank financial institutions engaged in financial leasing business. Financial leasing the company name of "financial lease".
    Without the approval of the China Banking Regulatory Commission, no unit or individual may engage in finance lease or use in its name "financial lease", but except as otherwise provided by laws and regulations.
    Article finance leasing in these measures refers to the lessor according to the lessee the lease and supplier selection or approval, be obtained from the supplier of the leased property in accordance with the contract lease to the lessee to possess, use, rental transactions charged to the lessee.
    Applies to lease finance lease transactions for the fixed asset. Fourth sale and leaseback business in these measures refers to the lessee will own items sold to the lessor and finance lease contract and the lessor, then remove the object from the lessor rental leasing form.
    Sale and leaseback is a lessee finance lease and supplier for the same person.
    Article fifth related party relationships and related party transactions in these measures, refers to complies with the relevant provisions of the accounting standards for business enterprises related party relationships and related party transactions.
    Sixth, the China Banking Regulatory Commission and its local authority shall supervise and administer the financial leasing company.
    Second chapter institutions established, and change and terminated seventh article application established financial rental company should has following conditions: (a) with save meet this approach provides of funded people; (ii) has meet this approach provides of minimum limit registered capital; (three) has meet People's Republic of China company law and this approach provides of articles; (four) has meet China banking supervision Management Committee provides of served qualification conditions of Director, and senior management personnel and familiar financing rental business of qualified practitioners;
    (E) has a sound corporate governance, internal controls, business operation and risk precaution system; (f) a qualifying business premises, safety measures and other relevant facilities; (VII) other conditions specified by the China Banking Regulatory Commission. Eighth financial leasing company investors are divided into the main contributors and contributors in General. Main contributor is the amount accounted for more than financial leasing companies to be established with registered capital of 50% investors.
    Investors refer to other contributors except the main contributor.
    Set up financial leasing companies, by the main contributor, as applicants submit an application to the China Banking Regulatory Commission. Nineth article financial rental company main funded people should meet following conditions one of: (a) rushed country both inside and outside registered of has independent corporate qualification of commercial banks, also should has following conditions: 1. capital sufficient rate meet registered to financial regulatory institutions requirements and not below 8%; 2. recently 1 years end assets not below 80 billion Yuan Yuan or equivalent of free exchange currency; 3. recently 2 years continuous profit; 4. comply with registered to legal regulations, recently 2 years within not occurred major case or major illegal violations behavior; 5.
    Having a sound corporate governance structure, internal control mechanisms and risk management systems; 6. other prudent requirements as prescribed by the Banking Regulatory Commission.
    (B) the registered leasing companies in and outside of China, should also meet the following conditions: 1. the last 1 year assets of no less than 10 billion yuan renminbi or its equivalent in a freely convertible currency; 2. the most recent 2 years of continuous profit 3. to comply with registration laws and regulations, within the last 2 years no major incidents or major violations. (Three) in China territory registered of, and main business for manufacturing for financing rental trading products of large, also should has following conditions: 1. recently 1 years of business income not below 5 billion Yuan Yuan or equivalent of free exchange currency; 2. recently 2 years continuous profit; 3. recently 1 years end net worth rate not below 30%; 4. main business sales income accounted for all business income of 80% above; 5. credit records good; 6. comply with registered to legal regulations,
    Within the last 2 years no major incidents or major violations.
    (D) approved by the China Banking Regulatory Commission can act as a main contributor to other financial institutions. Tenth General investor financial leasing companies should be consistent with the China Banking Regulatory Commission invested in financial institutions regulations.
    Comply with the main conditions of investor-funded these measures may serve as general investors of the financial leasing company.
    The 11th financial leasing company lowest registered capital is RMB 100 million or its equivalent in a freely convertible currency, registered capital is paid in cash.
    Development of China's Banking Regulatory Commission under the financial leasing business needs, you can adjust the minimum registered capital limit of financial leasing companies. 12th business required the preparation and the establishment of a financial leasing company in two stages. Opened applications for the preparation and the information submitted by the applicant, the Chinese text shall prevail.
    Data acceptance and approval procedures in accordance with the China Banking Regulatory Commission about the implementation of administrative licensing matters concerning regulations.
    13th article application preparation financial rental company, applicants should submitted following file: (a) preparation applications, content including intends established financial rental company of name, and registered location, and registered capital, and funded people and the their of funded amount, and business range,; (ii) feasibility research report, content including on intends set company of market prospects analysis, and future business development planning, and organization management schema and risk control capacity analysis, and company opened Hou 3 years of assets liabilities scale and profit forecast, content; (C) the proposed regulation of financial leasing companies (draft), and (iv) funding basic information, including name, legal representative, registered address, copy of business license and business conditions and the contribution agreement.
    Contributors to overseas financial institutions, should provide the registered letter of advice financial regulator; (e) contributors last 2 years qualified intermediary audit annual audit reports, and (vi) other documents required by the China Banking Regulatory Commission. 14th article financial rental company preparation work completed Hou, should to China banking supervision Management Committee proposed opened application, and submitted following file: (a) preparation work report and opened application book; (ii) territory has qualification of intermediary institutions issued of inspection funding proved, and business administration organ issued of on intends set financial rental company name of pre approved registration book; (three) shareholders roster and funded amount, and funded proportion; (four) financial rental company articles.
    Financial rental company articles at least including following content: institutions name, and business address, and institutions nature, and registered capital, and business range, and organization, and business management and suspended, and liquidation, matters; (five) intends any senior management personnel list, and detailed resume and the served qualification proved material; (six) proposed business regulations and risk control system; (seven) business places and other and business about facilities of information; (eight) China banking supervision management committee requirements of other file. 15th article approved by the China Banking Regulatory Commission, financial leasing companies may establish branches.
    Specific conditions of establishment of branches shall be determined separately by the China Banking Regulatory Commission.
    16th the China Banking Regulatory Commission on financial leasing company directors and senior managers implement the qualification approval system.
    17th finance leasing companies have one of the following changes, subject to approval by the China Banking Regulatory Commission.
    (A) change name; (ii) change Organization; (three) adjustment business range; (four) change registered capital; (five) change equity; (six) modified articles; (seven) change registered to or business places; (eight) change Director and the senior management personnel; (nine) merged and Division; (ten) China banking supervision Management Committee provides of other change matters.
    18th article financial rental company has following situation one of of, by China banking supervision Management Committee approved Hou can dissolved: (a) company articles provides of business term expires or company articles provides of other dissolved causes appeared; (ii) shareholders (big) will resolution dissolved; (three) for company merged or Division need dissolved; (four) law was revoked license, and ordered close or was revoked; (five) other statutory causes.
    19th finance leasing companies of any of the following circumstances, approved by the China Banking Regulatory Commission, may apply to the Court of insolvency: (a) unable to pay its debts, voluntary or by its creditors requested the bankruptcy; (b) by dissolution or cancellation liquidation, the liquidation group revealed that the financial leasing company assets are not sufficient to repay its debts, should file for bankruptcy.
    20th finance leasing companies unable to repay debts and assets are insufficient to pay off the debt or the apparent lack of liquidity, China Banking Regulatory Commission may appeal to the Court of the financial leasing companies are restructuring or bankruptcy liquidation application.
    21st financial leasing company was dissolved, revoked or declared bankrupt according to law and termination, liquidation issues, in accordance with the relevant State laws and regulations. 22nd chapter III business scope approved by the China Banking Regulatory Commission, financial leasing companies to operate some or all of the following foreign currencies: (a) financial leasing business; (b) absorb shareholders 1-year (or more) time deposits, and (iii) receiving the tenant's lease deposit and (iv) transfer to commercial leases receivable;
    (E) issuance of financial bonds upon approval; (vi) interbank; (VII) financial institutions; (VIII) foreign exchange borrowings (I) leased goods sold and residual value the business (j) economic consulting (11) other business approved by the China Banking Regulatory Commission.
    23rd financial leasing companies shall not take deposits from the banks ' shareholders.
    The 24th financial leasing companies operating in matters involving foreign exchange management, subject to the relevant provisions of the State administration of foreign exchange.
    Fourth chapter business rule 25th financial leasing the company's corporate governance to shareholders should be established (General) meeting, Board of Directors, Board of supervisors and senior management of organizational structure, a clear division of responsibility between the respective, ensure the independent and effective checks and balances to each other, form a scientific and efficient decision-making, incentive and restraint mechanisms.
    26th financial leasing companies should be in accordance with a comprehensive, prudent, effective and independent principles, establish and perfect internal control system, and the China Banking Regulatory Commission or its agency of record.
    27th financial leasing company's related party transactions should be in accordance with commercial principles, to no better than the conditions for the non-related party transactions of the same kind.
    28th article financial rental company should developed associated trading management system, specific content should including: (a) Board or business decision institutions on associated trading of supervision management; (ii) associated trading Control Committee of duties and personnel composition; (three) associated party of information collection and management; (four) associated party of report and commitment, and recognition and confirmed system; (five) associated trading of type and pricing policy, and approval program and standard; (six) avoided system; (seven) internal audit supervision; (eight) information disclosure;
    (I) the penalties and (j) other contents required by the CBRC. 29th financial leasing companies of significant related party transactions shall be approved by the Board of Directors.
    Significant related party transactions refers to financial leasing companies with a single transaction between related parties accounted for net financial leasing company 5%, or finance leasing companies and a related party transaction occurred after the financial leasing company and the balance of the related-party transactions of financial leasing company capital 10% transactions over the net.
    30th financial leasing company's Board of Directors, did not establish a Board of Directors of the financial leasing company's business decision-making bodies and connected transactions control committee vote on the related party transactions or decisions, personnel associated with the related party transactions should be avoided.
    31st sale and leaseback operations must have a clear subject matter, the subject matter should be in compliance with these regulations. 32nd the subject matter of a sale and leaseback business must be owned by the lessee and the right to dispose of.
    Financial leasing company shall not accept any mortgage, ownership is in dispute or by the judicial authorities sealed up or seized property or the property of any other defects in title as subject-matter of the sale and leaseback.
    33rd in a sale and leaseback operations, financial leasing companies to purchase price of the subject matter should be reasonable, subject to accounting rules the pricing basis as a reference, not low-value shoplifting. 34th financial leasing companies engaged in sale and leaseback business should obtain the appropriate ownership of the subject matter.
    Subject matter belongs to the State laws and regulations, registration of the property rights must be transferred to the Registration Department of categories of property, financial leasing companies should be registered. Fifth article 35th of supervision and management indicators of financial leasing companies shall comply with the following regulations: (a) the capital adequacy ratio. Financial leasing company's net capital shall not be less than 8% per cent of risk-weighted assets, (ii) the concentration of the single customer financing. Financial leasing companies for a single tenant net balance of financing shall not exceed 30%. When the customer financing balance is calculated, you can deduct the credit provided by the lessee when bond, (iii) a single client connection. Finance leasing company, to a related party balances of financing shall not exceed net financial leasing company 30%; (d) the Group client connection. Financial leasing companies financing balance for all related parties shall not exceed net financial leasing company 50%; (e) proportion of interbank.
    Financial leasing company Inter-Bank Fund balance may not exceed net financial leasing company 100%.
    China Banking Regulatory Commission as appropriate supervision can make adjustments on the above index.
    36th financial leasing companies should be in accordance with the relevant accounting standards and relevant regulations of the China Banking Regulatory Commission for the disclosure.
    37th financial leasing companies should implement risk asset classification system. 38th financial leasing companies shall, in accordance with the relevant provisions of bad debt reserve system, provision for bad debts in full and timely preparation.
    Not bad preparation of the foot, not for profit distribution. 39th finance leasing companies should be required to prepare and submit to the China Banking Regulatory Commission the balance sheet, the profit and loss account and other reports required by the China Banking Regulatory Commission.
    Financial leasing the company's legal representative and the person in charge directly liable for the authenticity of the report provided by the. 40th finance leasing company within 4 months after the end of each fiscal year, the China Banking Regulatory Commission or the relevant agency submitted to the related party transactions report for the previous fiscal year.
    Reports should include the following: affiliates, transaction type, transaction amount and marked, transaction prices and pricing, trading gains and losses interest, related party transaction the nature and proportion of.
    The 41st financial leasing company shall establish a system of external audit on a regular basis, and within 4 months after the end of each fiscal year, will be confirmed by the signature of the legal representative's annual audit report submitted to the China Banking Regulatory Commission and the Agency.
    42nd article financial rent goods company violation this approach about provides of, China banking supervision Management Committee can ordered deadline rectification; late not rectification of, or its behavior serious endanger the financial rental company of sound run, and damage customer lawful rights and interests of of, China banking supervision Management Committee can difference case, in accordance with People's Republic of China banking supervision management method, legal regulations of provides, take suspended business, and limit shareholders right, regulatory measures.
    Article 43rd credit crises in the financial leasing company has been or may be, seriously affecting the legal rights of the customer, China Banking Regulatory Commission shall implement a managed or urge them to restructure, problems are serious, shall be entitled to revoke. 44th article where a violation of the relevant provisions of this approach, according to the China Banking Regulatory Commission People's Republic of China banking regulatory law and other relevant laws and regulations for penalties.
    Financial leasing company refuses to accept the decision of the China Banking Regulatory Commission, people's Court may apply for administrative reconsideration or bring an administrative action.
                                                                                  Sixth chapter supplementary articles article 45th explained this approach by the China Banking Regulatory Committee 46th these measures shall come into force on March 1, 2007.

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