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Interim Measures On The Management Of Fixed Asset Loans

Original Language Title: 固定资产贷款管理暂行办法

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Interim measures on the management of fixed asset loans

    (July 23, 2009, Chinese Banking Regulatory Commission 2009 2nd release come into force three months after the date of execution) Chapter I General provisions

    First to standardize the fixed assets loan business of banking institutions, strengthen prudent management of fixed asset loans, promoting healthy development of fixed assets loan business, according to the People's Republic of China Banking Regulatory Act and the People's Republic of China commercial bank law and other laws and regulations, these measures are formulated.

    Article People's Republic of China territory by the banking regulatory agency of the State Council approved the establishment of banking institutions (hereinafter referred to as the lender), operating fixed assets loan business shall comply with these measures.

    Article fixed assets loans mentioned in these measures refers to the lender to companies (it) legal persons or other organizations can act as borrower prescribed by the State issued, foreign currency loans for investment in fixed assets of the borrower.

    Fourth fixed assets loan business according to law shall be followed by the lender compliance, prudent management, the principles of equality, free, fair and honest.

    Fifth lenders should improve internal control mechanisms, management of the lending process, complete view of the customer and item information, and establishing loan risk management system and an effective post checks and balances, loan administration responsibilities to specific sectors and positions of each link, and the establishment of the post of assessment and accountability mechanisms.

    The sixth loan should the inclusion of fixed asset loans to borrowers and borrower's unified credit management group clients, and by region, sector, loan and other dimensions of fixed asset loans risk limit management system.

    Article seventh lender should be agreed with the borrower clear, legitimate credit purposes and prescribed inspections, monitoring the use of loans to prevent loans being misappropriated.

    Eighth banking regulatory authority in accordance with this approach the lender loan supervision and administration of fixed assets.

    Chapter receiving and investigating

    The Nineth of fixed assets loan lender accepted shall satisfy the following conditions:

    () Borrower approved and registered by the industrial and commercial administrative organs or the competent authority in accordance with law;

    (B) good credit status of the borrower, without major adverse record;

    (C) the borrower's project for the new entity, its controlling shareholder, should have good credit status, no significant adverse record;

    (D) the investment subject of State investment project eligibility and qualification requirements of, and complies with the requirements;

    (E) sources of borrowing and repayment explicit, legitimate;

    (F) the project conforms to national industrial, land supply, environmental protection and other related policies, and as required to fulfil the legitimate management procedures for fixed asset investment projects;

    (VII) comply with State regulations on capital for investment projects;

    (VIII) other conditions required by lenders.

    Tenth borrower borrower applications and specific content requirements and require the borrower to abide by the principles of honesty and trustworthiness, commitment to provide information is true, complete and effective. 11th the lender shall implement specific sectors and jobs, perform due diligence and a written report.

    Due diligence includes:

    (A) the borrower and project sponsors of such a relationship;

    (B) loan program;

    (C) loan guarantees;

    (D) the need to investigate more.

    Due diligence staff should ensure that the due diligence report content authenticity, integrity, and availability.

    Chapter III risk assessment and approval

    12th the lender shall implement specific departments and positions of responsibility, undertake a comprehensive risk assessment on fixed asset loans, and a risk assessment report.

    13th the lender shall establish and improve the risk evaluation system of fixed asset loans, setting quantitative and qualitative indicators and benchmarks, from the borrower, project sponsors, project compliance, project, technical and financial feasibility, project, product marketing, project financing, repayment sources reliability, guarantee and insurance aspects of credit risk evaluation.

    14th lender shall, in accordance with the principle of separation, classification approval loan, standard fixed assets loan approval process, clear loan approval, ensuring that authorized personnel in accordance with the independent-approval loans.

    The fourth chapter contracts 15th lenders and borrowers and other relevant parties to enter into a written contract, warranties, contracts, and other related contracts.

    Should be specified in detail in the contract rights, obligations and liability of the parties, avoiding important issues not agreed, unclear or agreement invalid.

    16th lenders should be in the contract agreed with the borrower's loan amount, term and interest rate, purpose, payment, loan guarantees and risk management elements and details.

    17th the lender should be agreed with the borrower in the contractual withdrawal conditions accepted to pay the lender and loan capital management and control, and loan-related provisions, withdrawal conditions should include a proportion of capital with loans that have paid in place, actual project progress to match the investment requirements.

    18th lenders should be in the contract agreed with the borrower on the borrower account monitoring and, if necessary, may agree special loan account and reserve account of repayment.

    19th article loan people should requirements borrowing people in contract in the on and loan related of important content made commitment, commitment content should including: loan project and borrowing matters meet legal regulations of requirements; timely to loan people provides full, and real, and effective of material; tie loan people on loan of related check; occurred effect its claims debt capacity of major adverse matters timely notification loan people; for merged, and Division, and equity transfer, and foreign investment, and substantive increased debt financing, major matters Qian consent of loan people agreed,.

    20th should be agreed upon in the contract with the borrower by the lender, borrowers agreed there is not purpose loans, not according to the agreed disbursement of loan funds, non-compliance with commitments, loans file information, break conventions, financial constraints, such as when the borrower shall bear the liability for breach of and measures that could be taken by the lender.

    Fifth chapter issued and paid

    21st lenders should set up independent departments or positions of responsibility, is responsible for underwriting and payment.

    22nd the lender should a borrower before the loan withdrawal stipulated in the contract conditions are met and in accordance with the contract payments to loan funds to implement management and control, supervision and loan funds according to the agreed use.

    23rd contract specialized loan origination, accounts, loans and payments should be handled through the accounts.

    24th loans through lenders Trustees paid or independent of the borrower to pay the way for loan funds to pay for management and control.

    Entrusted by the lender to pay means according to the borrower by the lender's money withdrawal application and paying delegates will loan payments to borrowers who meet the stipulation of the contract counterparty.

    Autonomy refers to the lender to pay the borrower according to the borrower's loan funds withdrawal request will be issued until after the borrower's account, independently by the borrower payments to borrowers who meet the stipulation of the contract counterparty.

    25th single amount exceeding total investment 5% or more than 5 million yuan in loans to pay, should be entrusted with the means of payment by the lender. Article 26th trustee paid by the lender, the lender shall audit the borrower before the loan disbursement of funds and the transaction information in conformity with the contract stipulations.

    After approval by the lender, loan funds will be paid by the borrower's account to borrowers, counterparties, and check on the details of the finds should be recorded.

    27th independent payment by the borrower, the lender shall require the borrower summary reporting loan payments on a regular basis, and through accounts analysis, document examination, field investigation, including verification of conform to the agreed use of loan payments.

    28th fixed assets loan and payment process, the lender shall confirm and lend the same proportion of project capital in full in place and supporting the use of loans.

    29th in underwriting and payment process, the borrower in the following circumstances, lenders and borrowers should be consulted for additional loans issued and the payment terms, or under contract to stop the release of loan funds and payments:

    (A) the decline in credit conditions;

    (B) not according to the contract, pay the loan funds;

    (C) the project behind schedule use of funds;

    (Iv) breach of contract, in a piecemeal manner to avoid the lender Trustees to pay.

    The sixth chapter post-loan management

    30th the lender should be regularly funding and performance and credit standing of the project sponsor, project construction and operation situation, macro-economic changes and market fluctuations, loan guarantees checking and analyzing changes in content, such as, establishment of loan and credit risk early warning system of the quality control system.

    When there are adverse situations that may affect loan, the lender the loan risk should be reassessed and take targeted measures.

    31st actual investment exceeded the investment amount, the lender back to risk assessment and decision on additional loans, project sponsors should be required not less than projects supporting additional proportion of capital investment and the corresponding security.

    Article 32nd lenders should arrive (mass) put the value of and the guarantor's guarantee ability of establishing credit system of dynamic monitoring and reassessment.

    Article 33rd loan fixed assets projects for investment income cash flow and dynamic monitoring of the overall cash flow of the borrower, the anomalies to identify causes and take appropriate measures in a timely manner.

    Article 34th contract special repayment reserve account, the lender should be agreed according to the needs of fixed-asset investment projects or cash flow into the accounts of the borrower's income and the average amount of funds requested in the account.

    35th borrower breaches the contract situation, the lender should take timely and effective measures, when necessary, shall be investigated for criminal liability of the borrower.

    36th fixed assets loan of bad loans, the lender should be dedicated to managing and the timely development of collection or inventory measures.

    Borrowers unable to repay the loan principal and interest for temporary operational difficulties, the lender may in consultation with the borrower a loan restructuring.

    37th cannot recover bad loans in fixed assets, after the lender in accordance with the relevant provisions to write off the loans, should continue to be recourse to the debtor, or for market-oriented disposal.

    The seventh chapter legal liability Article 38th lender violated these measures require the fixed asset loans, banking regulatory institutions should be ordered to rectify.

    Lenders, one of the following circumstances, banking regulatory agencies under the People's Republic of China banking regulatory 37th stipulated in regulations of the Act:

    (A) fixed assets loan business process is flawed;

    (B) in accordance with this approach requires loan management process responsibilities to specific departments and positions;

    (C) loan due diligence of the investigation and risk evaluation;

    (D) in accordance with this regulation on the borrower and the effective monitoring of the operations of the project;

    (E) the borrower acts in violation of the contract failed to take timely and effective measures.

    39th lender has any of the following circumstances, banking regulatory agencies in addition to the measures taken 38th article supervision measures, also under the People's Republic of China Banking Regulatory Act, 46th, 48th, stipulates punishment for it:

    (A) receive does not meet the criteria of fixed assets loan and loans;

    (B) complicity with the borrower, illegal to issue fixed assets loans;

    (C) beyond, disguised beyond permission or not required to approve the loan;

    (D) signed a loan agreement in accordance with this regulation;

    (E) proportion of capital projects with loans in place of loans before;

    (Vi) is not carried out according to the way of loan funds to pay for management and control;

    (VII) other serious violations of the provisions of these measures.

    The eighth chapter supplementary articles

    40th full guarantee under pledge of fixed assets loans in accordance with the measures implemented.

    41st lender loan management should be developed in accordance with these measures rules and procedures.

    42nd article explaining these measures by the China Banking Regulatory Commission. 43rd article this way since its release three months after the date of promulgation.