(August 16, 2004, people's Bank of China, China Banking Regulatory Commission order [2004] 2nd announcement come into force October 1, 2004) Chapter I General provisions article to standardize the auto loan business, to take precautions against credit risk, and promote healthy development of auto loan business, according to the People's Republic of China people's Bank of China law, the People's Republic of China on commercial banks and the People's Republic of China Banking Regulatory Act and other legal provisions, these measures are formulated.
    Second car loans mentioned in these measures refers to the borrower by the lender for the purchase of vehicles (including used cars) in loans, including individual dealers of auto loans, car loans and auto loans to institutions.
    Article lenders in these measures refers to the People's Republic of China territory established by law, by the China Banking Regulatory Commission and its agencies approved to operate RMB lending commercial banks, urban and rural credit cooperatives and non-bank financial institutions authorized to carry on a car loan business.
    Fourth car in these measures refers to the borrower by auto loans to purchase, not-for-profit car; refers to the borrower for commercial vehicles by auto loans to buy cars, for profit-making purposes; used cars completing motor vehicle registration refers to retirement life under a year before the change of ownership and transfer formalities according to law's car.
    Fifth auto loan interest rate in accordance with the interest rate provisions of the people's Bank of China announced, meters, junction method is determined by the borrower and lender consultations.
    Sixth car loan loan terms (including extension) not more than 5 years, of which used car loan loan terms (including extension) must not exceed 3 years, dealer car loans loan period shall not exceed 1 year.
    Article seventh both lenders and borrowers should follow the equality, the principle of voluntariness, honesty, and trustworthiness.
    Eighth chapter II personal auto loans car loans to individuals mentioned in these measures refers to the lender to borrowers of loans for car purchases.
    Nineth article borrowing people application personal car loan, should while meet following conditions: (a) is People's Republic of China citizens, or in People's Republic of China territory continuous live a years above (containing a years) of Hong Kong, and o, and Taiwan residents and the foreigners; (ii) has effective ID ming, and fixed and detailed address and has completely civil capacity; (three) has stable of legal income or enough reimbursement loan principal and interest of personal legal assets; (four) personal credit good; (five) can paid this approach provides of first payment;
    (Vi) the other conditions required by the lender.
    Tenth lenders auto loans to individuals, should consider the following factors to determine the loan amount, term and interest rate, and repayment of loan conditions, such as: (a) the lender on the borrower's credit rating, (ii) loan guarantee, (iii) the purchase of the car's performance and use, (iv) automotive industry development and car market supply and demand. 11th lenders to borrowers ' credit records should be established.
    Borrowing people credit archives should contains Ming following content: (a) borrowing people name, and address, and effective identity proved and the effective contact way; (ii) borrowing people of income level and the funding letter status proved; (three) by purchased car of car agreement, and car model, and engine,, and frame,, and price and car uses; (four) loan of amount, and term, and interest rate, and repayment way and guarantees situation; (five) loan urged received records; (six) prevention loan risk by needed of other information.
    12th lenders personal loans for commercial vehicles, in addition to the provisions of article 11th things, should add to borrowers ' credit records of commercial vehicle operation certification inspection, commercial vehicle depreciation, insurance and so on.
    Chapter dealers auto loan dealer car loans in 13th article of the rules refers to the lender to car dealer paid for the purchase of vehicles and (or) loan of spare parts. 14th article borrowing people application dealer car loan, should while meet following conditions: (a) has business administrative competent sector issued of enterprise corporate license and the annual proved; (ii) has car producers issued of agent sales car proved; (three) assets liabilities rate not over 80%; (four) has stable of legal income or enough reimbursement loan principal and interest of legal assets; (five) dealer, and
    Distributor senior managers and dealers accepting loan applications on behalf of clients without a material breach or bad credit record; (vi) the other conditions required by the lender. 15th independent should be established for each dealer, the borrower by the lender's credit file, and update.
    Dealer credit archives should contains Ming following content: (a) dealer of name, and statutory representative people and the business address; (ii) various business card as copies; (three) dealer purchase insurance, and commercial credit and the financial status; (four) people's Bank of China issued of loan card (,); (five) by purchased car and the parts of model, and price and the uses; (six) loan guarantees status; (seven) prevention loan risk by needed of other information.
    16th lender to dealers for purpose of purchasing vehicles and (or) loan amount of spare parts dealer should be is based on average inventory period, specifically during the dealer inventory turnover should be seen as the case may be.
    17th loans are given through regular inventory dealer cars and (or) spare parts dealer inventory, analysis of financial statements and other means, dealers credit checks on a regular basis, and depending on the results adjusted dealer credit levels and frequency of the inventory.
    18th the fourth chapter auto loans auto loans to institutions in these measures refers to lenders other than distributors the legal persons, other economic organizations (hereinafter referred to as institutional borrowers) issuance of loans for car purchases.
    19th article borrowing people application institutions car loan, must while meet following conditions: (a) has enterprise or institutions registration management organ issued of enterprise corporate license or institutions corporate certificate, proved borrowing people has corporate qualification of statutory file; (ii) has legal, and stable of income or enough reimbursement loan principal and interest of legal assets; (three) can paid this approach provides of first payment; (four) no major default behavior or credit bad records; (five) loan people requirements of other conditions.
    20th lender should refer to the way provision of the 15th set up separate credit files for each borrower, credit risk monitoring.
    21st lenders to engage in automobile leasing business lenders loans for commercial vehicles, borrower's estimate of the residual value should be monitored to prevent residual overestimated the risk to the lender.
    Fifth chapter risk management article 22nd lenders car loans purchase price shall not exceed the amount of the borrower's 80%, allocation of commercial vehicle loan purchase price shall not exceed the amount of the borrower's 70%; used car loan payment of purchase price amount must not exceed the borrower's 50%.
    Car prices referred to in the preceding paragraph, refers to the actual sale price of the new vehicle (excluding all kinds of additional taxes, fees and insurance premiums) and the auto maker announced price is lower, second-hand car refers to the actual transaction price (excluding all kinds of additional taxes, fees and insurance premiums) and the lender assessed value is lower. 23rd borrowers borrowers ' credit rating system should be established, carefully to determine the borrower's credit rating.
    To individual borrowers, should be based on their occupation, income, ability to repay credit, credit history and other factors to determine levels; for dealers and agency borrowers, should be based on their credit files reflect, Senior Manager of credit conditions, financial status, credit history and other factors to determine credit level.
    24th lenders auto loans, require the borrower to provide the purchase car collateral or other security.
    25th lenders dealers should be specified directly or delegate accepts an application for car loan, perfect the credit system, strengthen credit review and credit track collection work before.
    26th the lender shall establish the market information databases and used car salvage value estimation system. 27th lenders should be based on the loan amount, loan distribution, borrower's financial status, vehicle branding, collateral, and other factors establishing auto loan classification monitoring system, for different types of car loan risk review, assess, on a regular basis.
    According to the evaluation results, adjust the risk levels of various types of car loans.
    28th article of the borrowers auto loan monitoring and analysis of early-warning system should be established, developing early warning standards; over early warning standards should be re-evaluated after loan approval system and other measures.
    29th the lender shall establish bad loan classification system and prudent loan loss provision system, provision for appropriate risk.
    Article 30th lenders mortgages should carefully assess the value of the mortgage, mortgage impairment risk fully into account, imposing limits on mortgage rates.
    31st borrowers car loans should be the relevant information into the credit registration consultation system, and establish a system of exchange of information with other lenders. Sixth chapter supplementary articles article 32nd lenders in the auto loan business has violated these rules of conduct, the China Banking Regulatory Commission and its agencies the right to the People's Republic of China Banking Regulatory Act and other laws provide for punishment of the lenders and their associates.
    People's Bank of China and its branches can suggest the China Banking Regulatory Commission and its agencies engaged in auto loan lender violations carry out supervision and inspection.
    Article 33rd on the borrower by the lender paid for the purchase of bulldozers, excavators, mixers, pumps and other vehicle loans against these measures.
    34th article of the way by the people's Bank of China and the China Banking Regulatory Commission is responsible for the interpretation.
                                                                                        35th article of the rules take effect on October 1, 2004, people's Bank of China promulgated in 1998, the regulation on auto loan since the abolition date of implementation of this approach.