(Adopted at the 67th ordinary meeting of the Government of the Grand province on 26 November 2010, No. 77 of 2 December 2010 by the People's Government Order No. 77 of 2 December 2010 and published as from 1 January 2011)

Article 1 promotes the health development of the financing security sector, in line with the provisions of the People's Republic of China Security Act, the Provisional Approach to the Management of Finance Secured Institutions and the relevant national legal regulations, in order to enhance the oversight management of the financing security institutions, the establishment, modification and withdrawal of the normative security institutions, the development of this approach in the light of the actual provisions of this province.

Article II of this approach refers to the agreement between the guarantor and the creditors, such as the banking financial institutions, and when the secured person does not meet the financial obligation owed to the creditor, the secured creditor shall assume the responsibility of the contract under the law.

The scheme referred to as the financing security institution (hereinafter referred to as “the security institution”) as a security institution for the operation of the financing security operation, which is established by law by a corporate, natural, other social organization or government.

Article 3. The provincial industrial and information management sector is the regulatory sector of the entire provincial security institution (hereinafter referred to as “the regulatory department of the provincial security institutions”), responsible for the establishment, change, exit and exit of the security institutions throughout the province.

Article IV provides for the establishment and modification of the security institutions and, in accordance with the principle of territoriality, a summary of the application material by the regulatory authorities of the State's security institutions, the approval and issuance of a licence.

Article 5 establishes the following conditions:

(i) There are statutes consistent with the provisions of the law;

(ii) Shareholder or fund-raising with sustainable funding capacity;

(iii) There are minimum registered capitals consistent with the provisions of this approach, registered as real-time capital;

(iv) Authorized representatives, directors, heads of offices, senior management and qualified practitioners who are eligible for office;

(v) There are sound organizational institutions and internal management and risk control systems;

(vi) There are fixed operating places.

Article 6. The establishment of a security institution must have a minimum registered capital: registration capital for security operations in all provinces is not less than $1 billion; registration capital for security operations within the city State is not less than $50 million; and registration capital for security operations in the area of the district shall not be lower than $ 2000.

Article 7. The statutory representatives, directors, heads of missions and senior management of the security institutions shall have no negative credit records and have security or financial experience over three years or work in the relevant industry for more than five years. Of these, the overall manager of the corporate security institution, the Deputy General Manager should have over five years of security or financial work experience or work in the relevant industry for more than eight years.

The principal operational personnel of the security institutions should be familiar with the credit security operation, with over one third of the personnel having security or financial work experience over two years or for the related industry for more than three years. The State's relevant management provides for the management of the security institutions.

Article 8 establishes branches of the security agency, with the exception of the requirements of article 5 and Article 7 of this approach, for more than two years of continuous operation and registration of capital is not less than $1 billion.

Article 9 shall apply for the establishment of a security institution and shall submit the following information:

(i) The application (should include matters such as the name, residence, registration of capital and operational scope to be established);

(ii) Feasibility studies (which should include the need to be established, market analysis, financing, operational development strategies and planning, sectoral setting and major internal management systems, economic and social efficiency analyses);

(iii) The statute;

(iv) Pre-approval of the enterprise name of the corporate security institution;

(v) A certificate of material at the place of business;

(vi) Receives from the statutory inspection body;

(vii) Rosters or funders and their contributions;

(viii) The credit report of the People's Bank that holds more than five per cent of registered capital shareholders (the corporate share also needs to produce an annual financial audit);

(ix) Recommended credit reports for legal representatives, directors, heads of missions, senior management accreditation, identification photocopy, people's banks;

(x) It is proposed to establish a risk control regime for the security institutions.

Article 10 is proposed by the security institutions to apply for the establishment of branches and, in addition to the information contained in article 9 of the present approach, copies of legal instruments and business licenses of legal persons should also be sent to copies; financial audit reports, business and risk management-related documents of the sponsoring agency for almost two years; and eligibility certificates for senior management of the proposed branch.

Article 11. The establishment of a security institution shall be subject to the operating licence and other relevant documents of the provincial security body, which shall be registered under the relevant legislation.

The registration management shall not conduct registration procedures for the security institutions authorized by the provincial security institutions. Any unit and individual may not operate the financing security operation without approval by the regulatory authorities of the provincial security institutions and shall not be used in the name. Except as otherwise provided by law, administrative regulations.

Article 12

(i) The name of change;

(ii) Changes in registered capital;

(iii) Be divided or merged;

(iv) Changes in the place of registration at Headquarters or branches;

(v) Change of statutory representatives, directors, heads of missions and senior management;

(vi) Changes in the possession of capital or more than 5 per cent of the total share;

(vii) Amending the statute;

(viii) Adjustment of operational scope;

(ix) Changes in the form of organizations.

Changes in the security institutions relate to the registration of registrations, which are required to apply for the registration sector.

Article 13 Changes in application by security institutions shall be submitted to the following information:

(i) Request for a change report;

(ii) A copy of the business licence;

(iii) Annual business;

(iv) Annual audit reports;

(v) Change resolutions, decisions and related documentation information on changes made by departments or personnel with decision-making authority;

(vi) Amendments to the statutes and statutes of the corporate security body;

(vii) Other material provided by the regulatory sector.

Article 14. The authorized security body shall complete the registration and modification of registration procedures within three months from the date of receipt of the approval of the provincial security institutions, whichever has been completed, and the original approval document has been automatically invalid.

Article 15 states that:

(i) The dissolution of the security institution as a result of the separation, consolidation or emergence of the provisions of the corporate charter shall be dissolved;

(ii) The revocation of the security apparatus as a result of the unlawful operation;

(iii) The non-payment of debt by the security institutions and the failure to liquidate the debt due and to enforce insolvency under the law;

(iv) Other cases provided for in the legislation.

Article 16 terminates by the security institutions and shall apply to the regulatory authorities of the State in which they are located, the regulatory branch of the municipal security agency provides a summary of the application's material and, after approval by the provincial security body, the procedures for the write-off of such bodies as the registry. The following material shall be submitted to the request:

(i) Disbandment of decisions, cancellation of decisions or insolvency requests;

(ii) The decision of the shareholders' conference resolution or the financial contributor;

(iii) Removal organizations and their heads;

(iv) Removal programmes;

(v) The debt arrangement programme;

(vi) The asset distribution programme;

(vii) Other material requested by the regulatory authorities.

Article 17 terminates and shall be established in accordance with the law by the liquidation team. The regulatory sector and other relevant departments oversee the implementation of their debt liquidation plans and other liquidation matters. Prior to the removal of the responsibility for security, the sponsoringr of the security institution shall not distribute the property of the institution or obtain any benefit from the institution.

Article 18 provides for the establishment, modification and termination of the security institutions of the State in which the regulatory branch of the State shall complete the summary of the application materials within 10 days of the date of receipt. The provincial security institutions are governed by a written decision that has been approved or not approved within 20 days of receipt of a request from the State's regulatory authorities for approval.

No decision may be taken within the prescribed period, with the approval of the heads of the regulatory sector, 10 days may be extended and the reasons for the extension period should be communicated to the applicant. The laws, regulations are otherwise provided in accordance with their provisions.

Article 19 In violation of this approach, the security institutions have one of the following acts, which are sanctioned by the regulatory authorities of the provincial security institutions:

(i) The unauthorized establishment of the security institutions without approval by the provincial security institutions, which are prohibited by law and fined by $20,000 to $30,000;

(ii) Removal of licences and fines of $20,000 to $30,000 after the discovery and verification of the security institutions established;

(iii) In violation of article 12 of the present approach, the security body has a change in circumstances that have not been authorized to change without approval, ordering its duration to fill the relevant procedures and imposing a fine of between 1 million and 20,000 dollars, as appropriate;

(iv) In violation of article 6 of the present approach, the security institutions do not have the corresponding registered capital, which has been able to move beyond geographical scope and impose a fine of between 1 million and 20,000.

Article 20 Staff of the supervisory services at all levels violates the establishment, modification, termination and operational scope of the security institutions, which are subject to administrative disposition by law; constitute an offence and hold criminal responsibility under the law.

Article 21