PERSONAL CREDIT AND SECURITY AGREEMENT

 

Credit Applicant______                                No. ____

 

TABLE OF CONTENTS

Please Note 告知

Article I Special Terms Signed 第一条 专用条款

ArticleⅡTerms of Credit 第二条 信贷条款

Article Ⅲ Terms of Mortgage 第三条 抵押条款

Article Ⅳ Terms of Warranty 第四条 担保条款

ArticleⅤOther Terms and Conditions 第五条 其他条款和条件

 

Please Note 告知

In order to safeguard your interest, please carefully read the following matters before entering into this agreement,

1. You have already have legal general knowledge of applying loan and guarantee from the bank;

2. You have read all terms of this agreement, and you understand their meanings, and China Merchants Bank has also made on the terms of this agreement to your fully prompt and description.

3. You have made sure all information and documents provided are real, legitimate, and efficient.

4. You have confirmed that you are entitled to sign the agreement, and the agreement is signed personally by you;

5. You have ascertained any conduct of fraud, breach of contract have to bear the corresponding legal responsibility;

6. You will be based on honesty and credit principles, voluntarily enter into and perform in accordance with the agreement;

7. Please use the pen, writing brush or sign pen neatly fill out the content needed you  to fill in;

8. In order to improve the efficiency of handling the loan, you are required to sign this agreement before the bank loan approval, the final conclusions of loan and guarantee subject to bank approval;

9. If you have any questions about this agreement, you can consult the local China Merchants Bank personal loan handling department.

 

Article I Special Terms Signed 第一条 专用条款

I. Covenant Person

III. Credit Period

Credit period is 120 months, it start from June 22nd, 2010 to June 22nd, 2020. the credit applicant shall apply for credit from the credit giver during the credit period, and the credit giver will not accept any application made by credit receiver that is over the credit period.

Ⅳ. Penalty Interest and Compound Interest

4.1 Credit applicant fails to use the loan according to the specific agreed purpose of use on the agreement, to the default using part, the credit giver shall have the right to add a daily 100% extra collecting penalty rate on top of the specific execution contract interest rate level, until the loan principal and interest repaid up.

4.2 Credit applicant fails to repay the loan in full according to the specific terms of the agreement, to the unpaid loan principal, the credit giver shall have the right to add a daily 50% extra collecting penalty rate on top of the specific execution contract interest rate level, until the loan principal and interest repaid up. To the interest failure to pay on time, a daily compound interest will be charged by penalty rate.

Ⅴ. Loan offering under the credit limit

After credit applicant has done the credit and loan formalities follow the credit giver’s relevant rules, credit giver shall deposit the loan into the credit applicant’s first settlement account. The credit applicant agrees the credit giver deposit the loan according to his authorization into other designated account of the credit applicant.

Ⅵ. Loan payment under the credit limit

6.1 The credit applicant authorizes the credit giver directly deduct loan principal and interest from the first settlement account:   and the second settlement account: ___. Specific seubject to the borrowing IOU.

6.2 The credit giver charge _____ to the credit applicant for early repayment penalty.

Ⅶ. Loan Collateral (Can make collateral form separately as the attachment of the agreement)

7.1 Name and Location: ____

7.2 Construction Area:       

7.3 Purchasing Price:     /         

7.4 Valuation Price:x

7.5 Ownership and Number: ____

Ⅷ. Guarantee period is below (in words) type of _Second_:

First, from the date of signing this agreement to the maturity date of each loan plus two years, any of the specific loan extension, the guarantee period extend to after expiry of the extended loan period plus two years.

Second, from the date of signing this agreement until the date credit applicant completed the formal mortgage registration with the collateral real estate certificate, and hand in the real estate certificate and the certificate of other rights to the credit giver’s custody.

Third, from the date of signing this agreement until ____ .

Ⅸ. Dispute Resolution

The dispute occurs during performance of the agreement, both parties shall resolve by consultation. If the consultation fails, below First type (in words) can be chosen to solve the dispute (chose one from the two):

First, file a lawsuit to people’s court where credit giver located; or

Second, apply for attribution to ____ arbitration committee.

Ⅹ. Supplementary provisions of the agreement are as follows:

Ⅺ. This agreement comes into Four copies, they all have the same legal effective. The credit giver, credit applicant and  property right department, notary  each keeps one copy.

 

ArticleⅡTerms of Credit 第二条 信贷条款

12. Usage of Credit Limit

12.1 Circulation credit limit is refer to the maximum limit of the sum of principal balance of all types of personal loans and credit that the credit giver provides to the credit applicant according to this agreement during the credit period; One-time credit limit is refer to the credit principal accumulated amount that the credit giver provides to the credit applicant according to this agreement during the credit period, can not exceed the credit limit, non-recyclable, and finish until accumulated amount exhaustion.

12.2 For each loan under the credit limit, both parties shall come into specific loan contract, loan application which submitted by credit applicant and confirmed by credit giver, borrowing IOU and /or other certificate (hereafter referred to as “the specific contract” ) to be agreed.

12.3 During the credit period, the circulation credit limit can be used by credit applicant in a periodic duty, and one-time credit limit can not be used in a periodic duty. The credit applicant must apply individually, and the credit limit becomes available after credit giver approves and accepts case by case.

12.4 The credit giver has the rights to reassess credit applicant’s personal credit, repayment ability, property status, value of the mortgage property, and guarantor’s guarantee ability. And entitle to adjust the credit applicant’s credit limit.

12.5 For each loan under the credit limit, the loan term shall be determined based on the credit applicant’s financial needs and relevant provisions of the credit giver. Under the credit limit the specific business maturity date (including an extended maturity date) can later than credit period maturity date.

12.6 For each loan under the credit limit both parties shall consult and determine the loan amount, term, interest rate, interest adjustment method, usage, loan payment method and etc., and shall be agreed in the specific contract.

12.7 During the credit period, if 12 consecutive months under a credit not issuing a loan, the credit giver has the right to terminate the credit limit, no longer accept credit applicant’s application for a loan.

13. Interest Rate of Loan under Credit Limit

13.1 Interest Rate Conversion

Under this agreement, the interest rate is calculated as follow: monthly interest rate = annual interest rate ÷ 360.

13.2 Interest Rate Adjustment Method

During the credit period, in case of people’s bank of China adjustment of loan interest, the executive interest rates have the following adjustment method:

13.2.1 The Second Phase Adjustment: it refers, in current period of the interest adjustment, the executive rate using the interest rate before adjustment, from next period starts using the interest rates standard after adjustment.

13.2.2 Fixed day adjustment: refers to from January 1st of each year, begins the implementation of the latest interest rates standard issued by people’s bank of China, from January 1st segmented calculate interest rate by day.

13.2.3 Immediately Adjust. Refers to start using the new interest rates standard on the date when interest rates changed, before and after interest rate adjustment segmented calculate interest rate by day.

13.2.4 No Change. Refers to when interest rate changed continually using the contract interest rate standard of each specific contract (only applies to the loan terms not longer than one year).

13.3 During the effective period of this agreement, in case according the people’s bank of China’s adjustment of calculation standard of interest rate, interest rate adjustment method, interest, penalty interest, and compound interest, the credit giver making changes to the above elements, the credit giver does not need to additionally inform the credit applicant, mortgagor and guarantee. During the effective period of this agreement, the credit giver and credit applicant make changes on loan amount, interest rate, loan term, and repayment method, it does not need to additional notice to the mortgagor and guarantee, the mortgagor and the guarantee is still in accordance with this agreement, undertake the guaranty responsibility of the credit applicant’s debt. In case the mortgagee and the borrower under consultation reduce the terms of loan agreement, loan interest execution is still based on this agreement.

14. Repayment Method under the Credit Limit

Under the credit limit, each loan and interest can be repaid by the following ways, repayment method applied by the credit applicant, and confirmed after credit giver’s examine and approval.

14.1 Repayment Method

14.1.1 Same amount repayment: that is the credit applicant equal monthly debt service, monthly principal and interest should be repaid calculated by the following formula:

                                                       

14.1.2 Same amount matching the principal: that is the credit applicant equal monthly same amount matching the principal repayment, and repay interest monthly, monthly principal and interest should be repaid calculated by the following formula:

                                                           Loan Principal

Monthly principal and interest should be repaid = ------  + (Loan Principal – Accumulated Principal ) ×Monthly Rate

Repayment Month 1

 

14.1.3 Maturity Debt Servicing

Credit applicant must one-time repay the loan principal and interest on loan maturity date, loan interest calculated by day, can be a one-time monthly interest settlement or maturity. The specific interest settlement method shall prevail to the credit giver’s determination.

14.2 Deduction Day

14.2.1 Use of Same Amount Repayment or Same Amount Matching Principal Repayment:

If deduction day is corresponding day of loan payment day ( 29,30,31 issued loan, the deduction day fixed on 28th every month), loan interest settlement monthly, first time loan deduct day deduct current month principal and interest. Last deduction date is the loan maturity day, interest calculate by day, deduct the interest and principal balance from the previous deduction day to the last deduction day.

If the deduction day is not the corresponding day of the loan payment day, first time loan deduction interest calculate by day, only deduct the interest from loan issuing date to the first deduction date. After that, loan interest calculate by month, deduct loan principal and interest every month. Last deduction date is the loan maturity day, interest calculate by day, deduct the interest and principal balance from the previous deduction day to the last deduction day.

14.2.2 Use of Maturity Debt Service:

Every month 21st deduction the loan interest by monthly interest settlement, deduct the interest and principal balance from the previous deduction day to the last deduction day; one-time interest settlement by maturity date, one-time deduct the loan interest and principal balance on loan maturity date.

15. Early Repayment

The credit applicant can apply to repay the mortgage earlier, but shall send a written notice to credit giver and obtain consent 30 days in advance. In case the credit applicant made early repayment, the credit giver make no adjustment regarding the loan interest charged before the credit applicant’s early repayment, in regards to the earlier repayment loan principal, calculate interest from the previous repayment day to the earlier repayment day. In case the credit applicant made partly earlier loan repayment, monthly repayment amount after earlier loan repayment and the loan period shall recalculated base on surplus loan principal and surplus loan period, but the loan interest will not change due to earlier loan repayment. Earlier loan repayment liquidated damages charged according relevant terms on this agreement no. 6.2.

16. Loan Deduction

16.1 The credit applicant guaranties on each deduction date (not include the same day of deduction date) deposit enough funds for full payment of debt servicing into the deduction account appointed on this agreement no. 6.1, in the mean time authorize the credit giver deduct the loan principal and interest according the specific contract determined payment method. By normal repayment, the credit applicant agrees the credit giver deduct the payment from the first deduction account appointed on this agreement no. 6.1, then deduct from the second deduction account.

16.2 When loan overdue occurs, the credit giver shall have the right directly deduct the amount owed from credit applicant’s any bank account include the above deduction account, and in accordance with cost, liquidated damages, compound interest, penalty, interest, last loan principal to process the settlement, until all loan principal and interest and all other relate fees has been full paid off. Principal and interest arrears over 90 days, and the loan repayment method is maturity debt service, the repayment sequence is loan principal, cost, liquidated damages, compound interest, penalty and interest.

16.3 Due to the interest rate changing, earlier repayment, extension of the loan period and other reasons caused changing of the loan principal and interest under the credit limit, according the above authorization the credit giver still can directly handle funds deduction accordantly after change.

17. Rights and Obligation of the Credit Applicant

17.1 The credit applicant enjoys below rights:

17.1.1 Has the rights apply to the credit giver using credit limit according terms of this agreement.

17.1.2 After obtained the written consent of the credit giver has the rights to transfer the debt to third person.

17.2 The credit applicant undertakes below responsibilities:

17.2.1 Shall truthfully provide the file information required by the credit giver, and all bank, account number and deposit and loan balances information, and cooperate with the investigation, review and inspection.

17.2.2 Shall accept the supervision of using of credit funds and personal financial situation.

17.2.3 Shall repay the loan principal and interest in full amount on time according to the agreement of the specific contracts, borrowing IOU and relevant certificate.

17.2.4 Insure the documents provided to the credit giver are true, accurate, complete and effective, and do not contain significant error inconsistent with the fact, omissions on significant facts.

17.2.5 Must use the loan according the loan purpose of use agreed in each specific contract. Guarantee not to use the loan under this agreement in illegal activities with violation of national laws and regulations, not to use to invest in stock, futures, bonds and other fields national regulators banned access of the bank loan, and not to use to register enterprise and equity investment such as share investment.

18. Rights and Obligation of the Credit Giver

18.1 The credit giver enjoys below rights:

18.1.1 Has the right to know the credit applicant’s personal credit status and economic conditions, and require the credit applicant to provide relevant material of using credit limit.

18.1.2 Has the right to supervise the credit applicant using the loan follow this agreement and each specific contract’s agreed using purpose.

18.1.3 In case the credit applicant fail to perform obligations under this agreement / or each specific contract, credit giver has the right to stop providing the loan under the credit limit unused by credit applicant, and require the credit applicant early return issued loans under credit limit.

18.1.4 In case the credit applicant happen disability, unemployed, moving, marriage change, job change, collateral derogatory, etc., and credit giver independent make personal judgment that it may adversely affect the credit giver’s right, the credit giver has the right to stop providing unissued loans under the credit limit, and require the credit applicant immediately pay off loan principal, interest and all relevant cost under this agreement, or transfer all debt under this agreement to the credit giver accepted assignee, or provide / add new guarantee measure which the credit giver can accept.

18.1.5 Has the right through public media by means of notice to collect from the credit applicant, mortgagor and guarantee.

18.2 The credit giver undertakes below responsibilities:

18.2.1 Accept the credit applicant’s loan application under the credit limit according to this agreement and each specific contract’s condition.

18.2.2 The credit giver examined and approved the credit applicant’s loan application under the credit limit, the credit giver shall issue the loan to the credit applicant.

18.2.3 Shall keep the credit giver’s property, accounts and other personal information confidential, but except this contract otherwise agreed or the reasonable actions taken by credit giver to realize the creditor’s rights.

 

Article Ⅲ Terms of Mortgage 第三条 抵押条款

19. The mortgagor willing to use his all or which he has rights to disposal on this agreement no.7 refer to collateral’s all rights pledged to the credit giver ( the mortgager), as the guaranty of repayment of the loan principal, interest and other cost under this agreement.

20. The mortgage under the agreement is the maximum mortgage

20.1 In the credit period expiration date or each specific maturity date, if under the agreement the credit giver provide to credit applicant’s loan or other credit still have unpaid principal or related cost, the credit applicant using the collateral bear the guaranty responsibility in the mortgage security range of the agreement no. 21.

20.2 Before the credit period expiration date, if according the agreement and specific contract the credit giver recourse to the mortgagor and / or credit applicant, the credit applicant also uses the collateral bear the guaranty responsibility in the mortgage security range of the agreement no. 21.

21. Mortgage Security Range

The mortgage security range is the sum of the loan credit giver provide to credit applicant under the agreement and other credit principal, and interest, penalty, compound interest, liquidated damage, insurance and relevant cost the credit giver realizing the rights (include but not limited to legal fees, attribution fees, execution fees, attorney fees, announcement fees, courier fees, traveling cost etc.).

22. Mortgage Period

Mortgage period refers to the period from the effective date of this agreement to the expiration date of credit claims under this agreement.

23. Custody and Responsibility of Collateral and Collateral Ownership Certificate

23.1 During the mortgage period, the collateral custody by mortgagor or mortgagor entrusted agent. The mortgagor shall properly keep the collateral, and in responsible for repair, maintenance, ensure the collateral in good condition during the mortgage period, and be ready to accept the credit giver’s examination.

23.2 During the mortgage period, the reduction of the collateral value occurred, the credit giver has the rights to request the mortgagor to recover collateral value, or provide reduced value correspond guarantee. The cost of restore   original collateral or provide new collateral are all liable by mortgagor. The mortgagor neither recovers the collateral value, nor provides new collateral, the credit giver has the right to require the credit applicant early repay the debt.

23.3 During the mortgage period, the mortgagor shall hand over the collateral ownership certificate and other related certificates to the credit giver’s custody. The credit giver shall take good care of collateral ownership certificate. Due to improper custody, resulting loss of collateral ownership certificate, the credit giver shall bear the expenses to of post-register, the mortgagor has obligation to assist credit giver post-register corresponding ownership certificate.

24. Mortgage Registration

24.1 After both parties signed this agreement, the mortgagor shall go to the relevant mortgage registration authorities to register the mortgage within the time frame stipulated by credit giver, and hand over the relevant mortgage certificates to the credit giver’s custody.

24.2 If the mortgaged property ownership certificate has not been completed yet when this agreement signed, the mortgagor shall accordance with the requirement of the credit giver, actively cooperator with the credit giver and / or seller handle notice mortgage registration or guarantee registration; with 60 days the mortgage property meet the condition requirement of formal mortgage registration, the mortgagor shall cooperate with the credit giver with on condition to complete the procedure of transferring the notice mortgage registration or guarantee registration to formal mortgage registration.

24.3 If the credit giver issues the loan to the credit applicant before mortgage collateral completed house ownership certificate and/or mortgage registration, then within the time frame stipulated by credit giver, credit applicant and mortgagor shall complete formality of transferring collateral ownership from the name of seller to the name of mortgagor, and complete mortgage registration procedure of setting up the credit giver as the mortgagee.

24.4 Due to the guarantor / mortgagor’s reason result of the mortgage property failed to complete the above mortgage registration, the credit giver has the right: 1. Require mortgagor and / or the guarantor complete mortgage registration within the limited time, in case delaying mortgage registration cause loss of the credit giver shall bear the responsibility of compensation; and / or 2. Stop issue the loan to the credit applicant; and / or 3. Announce early expiration of the loan, require credit applicant repay off all the loan, and request the guarantor bear the joint liability; and / or 4. Announce early expiration of the loan, request credit applicant repay off all the loan, and the mortgagor bear joint liability of the credit applicant’s all debt.

25. Insurance

The credit giver have the right request the mortgagor buy full property insurance credit giver as first beneficiary, and hand over the insurance policy to the credit giver’s custody. The insurance time limited shall cover the credit period.

26. The Restrictions of Disposal Mortgage Collateral during the Mortgage Period

26.1 During the mortgage period, without the credit giver’s consent, the mortgagor can not sell, exchange, donate, transfer, remortgage or any other improper way to disposal the mortgage collateral.

26.2 During the mortgage period, if the mortgagor actually needs compensated transfer the mortgage collateral under this agreement, it must meet the below conditions before proceed:

26.2.1 Must obtained the credit giver’s written consent and inform assignee that the transferred property already been pledged; without credit giver’s written consent or not inform assignee, the transfer is invalid.

26.2.2 In case collateral price transferred by the mortgagor can not fully cover the loan principal, interest and other related cost under the credit agreement, the credit giver has the right to request the mortgagor provide full property mortgage; if the mortgagor does not provide, the mortgage collateral can not be transferred.

26.2.3 The full amount of mortgagor transferring the mortgage collateral must use in priority to repay or early repayment of all loan principal, interest and all other related cost under the credit agreement.

27. Fruits Charge

Credit giver claims the mortgage rights according this agreement, thus cause the mortgage collateral been sealed up or seizure, from the date sealed up or seized, the credit giver has the right to receive a nature fruit separated from the collateral and a legal fruit of collateral which the credit giver entitle to receive.

28. The Extermination of the Mortgage Rights

After all owed credit debt loan principal, interest and other cost under the credit agreement have been paid off, the mortgage right automatically exterminated. The credit giver assist the mortgagor handle the cancellation of the mortgage registration, and return the mortgage collateral ownership and / or property insurance policy to the mortgagor.

 

Article Ⅳ Terms of Warranty 第四条 担保条款

The guarantor bears the joint guaranty responsibility of the credit applicant’s debt under this agreement, commitment to comply with the following provisions:

29. This Guaranty is Maximum Guaranty

On expiry of the credit period, the loan credit giver issued to the credit applicant still has balance remained, the guarantor bear joint and several liability on the range determined on this agreement no.30; before the expiry of the credit period, if according the agreement and / or specific contract the credit giver recourse to the credit applicant, the mortgagor bear the joint and several liability on the range determined on this agreement no.30.

30. Guaranty Range

30.1 The guaranty range which the guarantor provides is the sum of principal balance of the loan the credit giver issued to the credit applicant according “Credit Agreement” under the credit limit, and interest, penalty, compound interest, liquidated damages and the related cost of the credit giver realizes the mortgage right (include but not limited to legal fees, attribution fees, execution fees, attorney fees, announcement fees, courier fees, traveling fees etc.)

30.2 About the circulation credit, if principal balance of the loan the credit giver issued to the credit applicant exceed the credit limit, then the guarantor is not taking guaranty responsibility to the part the credit balance exceeded the credit limit, only take the guaranty responsibility of the loan principal balance part not exceed the credit limit and it’s interest, penalty, compound interest, liquidation damages, relevant cost etc.

Notwithstanding the foregoing agreement, but the guarantor clear: even if on certain time of the credit period, the principal balance of the loan the credit giver issued to the credit applicant exceeded the credit limit, but when the credit giver require the guarantor take the guaranty responsibilities, the sum of all kind of credit principal balance is not exceeding the credit limit, the guarantor can not use the foregoing agreement as justification of defense, and shall bear the joint guarantee responsibility to the all credit principal amount and it’s interest, penalty, compound interest, liquidation damages, relevant cost etc.

31. Guarantee Method

The Guarantor confirm to bear the economic and legal joint guaranty responsibility to the credit applicant’s all debt on the guarantee range of the no. 30. If the credit applicant failed to repay the credit giver all loan principal, interest and related cost on time according to “Credit Agreement” and / or each specific contract’s agreement, or breach of “Credit Agreement” and /or each specific contract’s agreement occurs, the credit giver has the right to directly recourse to the guarantor, without first recourse or litigation to the credit applicant. Even there is other mortgage, pledge, or other guarantee set up to ensure the credit applicant’s all debt under the “Credit Agreement” can be repaid on time, the credit giver still has right about the credit applicant’s all debt under the “Credit Agreement” directly recourse to the guarantor, does not have to first disposal collateral, pledge, also does not have to first recourse to other guarantors. Even under the circumstance in the meantime there is other mortgage, pledge guarantee or other guarantor, the credit giver give up or remove mortgage, pledge guarantee or remove other guarantor’s guarantee responsibilities, the guarantor is still bear the guarantee responsibility for the credit giver according to this agreement’s content.

The credit giver also has the right recourse to the guarantor in the way it considers appropriate, include but not limit to fax, mail, courier, post on public media, and consign to professional collection company.

32. To the funds the credit applicant owe the credit giver, the guarantor ensure repay off credit applicant’s all debt under this agreement within 5 days of receiving the credit giver’s oral or written settlement claim notification, without the credit giver provide any certificate or other documents. The guarantor here authorize the credit giver directly deduct funds from the account the guarantor opened with the credit giver, until under this agreement the loan principal, interest and other related cost the credit applicant in arrears to the credit giver been repaid off.

33. The Guarantor’s Special Notice and Guarantee as Follows:

33.1 Legal Representative or other Organization Guarantee:

33.1.1 The guarantor is an enterprise legal representative with the guarantor qualification, or a legal representative of a non public welfare purpose institution with the guarantor qualification, or other organization with the guarantor qualification. The guarantor is willing to use all his all assets or assets he is entitle to disposal to bear the guarantee responsibility, perform the obligations specified in this agreement.

33.1.2 The guarantor express the true meaning, there are no fraud and intimidation factor.

33.1.3 The guarantor signed this agreement has obtained the full authorization or approved by competent authorities such as the board of director of the company.

33.1.4 The financial statements and all documents provided by guarantor are all true and legal, the legal representative of the guarantor or other responsible person are liable for it.

33.1.5 No matter whether the system change, debt restructuring or equity structure change and so on happened to the guarantor, this agreement shall always legally binding to the guarantor, also legally binding to guarantor’s rights and obligations successor.

 33.2 Natural Person Guarantee:

33.2.1 The guarantor is a fully independent natural person with civil capacity, has guarantor qualification, the guarantor willing to use his all assets or assets he is entitle to disposal to bear the guarantee responsibility, perform the obligations specified in this agreement.

33.2.2 The guarantor express the true meaning, there are no fraud and intimidation factor.

33.2.3 All proof documents provided by the guarantor are true and legal.

33.2.4 No matter whether unemployment, relocation, disability, marital change, job change, business change, etc happens to the guarantor, this agreement shall always legally binding to the guarantor, also legally binding to the guarantor’s successors and legatee.

 

ArticleⅤOther Terms and Conditions 第五条 其他条款和条件

34. Cost

Cost (tax) generated due to the credit investigation, inspection, notary etc. related to this agreement, credit limit commitment fee, royalty fee and all other fees related to credit limit, and in the case of the credit applicant fails to repay the loan principal, interest and accrued expenses under the agreement on time, to realize the credit right, the credit giver paid attorney cost, legal cost, attribution cost, execution cost, announcement cost, courier cost, traveling cost ect. relevant cost, all by credit applicant fully burden. The credit applicant authorizes the credit giver directly deduct all cost the credit applicant shall bear from its bank account, if not enough funds, the credit applicant guarantee repay off in full after receive the credit giver’s notification, need not credit giver provide any proof.

Under this agreement, valuation, insurance, notary, registration, transportation, storage (tax) cost relevant to mortgage are all borne by the mortgagor.

35. Event of Default

35.1 Any of the following situations happens to credit applicant is considered as event of default:

35.1.1 Information provided to credit giver is false or concealment of important condition of a fact, not coordinate credit giver with investigation, review and inspection, when credit giver requires credit applicant to be corrected within a reasonable period, credit applicant is still not correct exceeding the time limit, and damage the credit giver’s interest.

35.1.2 Failure to use the loan as the purpose of use agreed in the agreement and specific contract, not accept or evade from credit giver’s inspection on the use of credit funds.

35.1.3 Three consecutive months or accumulative total six times not repay the loan principal and interest on time and in full amount.

35.1.4 Not repay the loan principal and interest on time and in full amount according to this agreement or each specific contract’s agreement.

35.1.5 Transfer the debt of this agreement to a third person by his own without authorization.

35.1.6 Occur of disability, unemployment, removal, changes in marriage, change at work, change of business, and by own judgment the credit giver thinks that it could endanger the realization of the creditor’s rights under this agreement.

35.1.7 The guarantor’s successor and legatee refused to fulfill for the credit applicant’s responsibility of repaying the loan principal and interest, after accepted inherit and bequest.

35.1.8 The credit applicant fails to manage and recourse its expiring creditor’s rights, or transfer of property or other acts of evasion of liability, such as disposals of the existing major property with volunteer and other inappropriate ways.

35.1.9 During the credit period, death, declaration of death, mission, declaration of missing, loss of capacity for civil conduct occurs to the credit applicant.

35.1.10 The credit applicant is investigated for criminal responsibility according to law or any other coercive measures, or is taken measures to limit its rights by relevant authorities, that affects is to fulfill its obligation in this agreement.

35.1.11 The credit applicant violate this agreement or each specific contract’s provision, and by own judgment the credit giver thinks that it’s enough to endanger the realization of the creditor’s rights under this agreement.

35.2 Any one of the following situations happens to guarantor is considered as event of default:

35.2.1 Occurs death, mission, disability, unemployment, removal, changes in marriage, change at work, and by own judgment the credit giver thinks that it could influence guarantor’s guarantee ability.

35.2.2 Conceals the ability of bear guarantee responsibility when signing the agreement.

35.2.3 Fails to manage and recourse its expiring creditor’s rights, or disposals of the existing major property with volunteer and other inappropriate ways.

35.2.4 The guarantor’s other conduct violate this agreement or each specific contract’s provision, with own judgment the credit giver thinks that it’s enough to endanger the realization of the creditor’s rights under this agreement.

35.3 Any one of the following situations happens to the mortgagor is considered as event of default:

35.3.1 The mortgagor does not have or does not have full ownership or disposal right of the mortgage collateral, or there is dispute on property right.

35.3.2 The occurrence of mortgage collateral has been leased, mortgaged, seized, under supervision and so on, and / or credit applicant / mortgagor conceal such a situation has occurred.

35.3.3 Without credit giver’s written permission, the credit applicant unauthorized transfer, remortgage or disposal mortgage collateral in any other inappropriate manner, or with credit giver’s written permission, but credit applicant does not use the funds disposal of the collateral to repay the debt which the credit applicant owes the credit giver.

35.3.4 The mortgagor does not make proper care, maintenance and repair to the collateral, which causes obvious disparagement of collateral; or mortgagor’s behavior directly endanger the collateral, and causes the reduction of collateral value; or mortgagor does not insure the collateral as credit giver’s require during the credit period.

35.3.5 Not complete related mortgage registration according to the provision of this agreement No. 24.

35.3.6 Unforeseen event occurred to mortgage collateral, or mortgager has other conduct violate the agreement, with own judgment the credit giver thinks that it’s enough to endanger the realization of the creditor’s rights under this agreement.

36. Default and Handling

Any of the default event specified on this agreement no. 35 occurs, credit giver has the rights to announce early expiration of the loan under this agreement, and take the following one or adopt various measures in the same time:

36.1 Stop providing the loan under the credit limit unused by credit applicant.

36.2 Take back in advance the loan principal, interest and related cost which already issued under the credit limit.

36.3 Directly deduct funds of credit applicant’s settlement account and / or other account, to repay off the credit applicant’s all debt under this agreement and each specific contract, or request the credit applicant use all it’s funds on the account as the pledge for repaying all the debt principal and interest under this agreement, and complete the legal procedures of pledge.

36.4 Require the joint debtor, guarantor or other related rights and obligation successor repay off all the debt of the credit applicant under this agreement and each specific contract within the specified time limit.

36.5 Use any of the following way to disposal the collateral:

36.5.1 The credit giver and the mortgagor reached agreement, directly convert the collateral into money or auction, sell of the collateral; after 15 days of any default event occurred under this agreement, if there is no agreement reached about converting the collateral into money or auction, sell of the collateral, the credit giver has the right to directly request to the people’s court auction or sell of the mortgage collateral.

36.5.2 In accordance with the dispute resolutions specified in this agreement, disposal the mortgage collateral according to legal procedures.

The proceeds from disposal the collateral by above method, the credit giver shall have the priority for repayment. The part of the proceeds which exceed the outstanding loan principal, interest and all related cost of the credit applicant under this agreement, are owned by the mortgagor. The shortfall, credit giver makes further recourse.

37. After this contract and / or each specific contract has been signed, before the loan issued, if the credit applicant has dispute with real estate seller, car dealer, adornment company, institution etc. unit who relevant to the loan purchased product or service on quality, conditions, ownership matter, this agreement and / or each specific contract is suspended. According to the above dispute’s settlement resolution, it depends on the credit giver to determine whether terminate or continue to perform this agreement and / or each specific contract. After loan issued, if the credit applicant has any dispute with real estate seller, car dealer, adornment company, institution etc. unit who relevant to the loan purchased product or service on quality, conditions, ownership matter, has nothing to do with the credit giver, this agreement and / or each specific contract perform normally.

38. Without the consent of the credit applicant, credit giver can transfer all his rights and benefits under this agreement to another person, and has the right to take it deems appropriate way, including but not limited to fax, mail, hand delivery, public media announcement, etc. to inform credit applicant, mortgagor and guarantor about transfer matter; If credit giver transfer the creditor’s rights, the guarantee rights of the debt under the agreement transfer together, the credit giver can deal with the transferee ( new hypothec person) to register alteration formalities of the mortgage without the consent of the credit applicant and mortgagor; but without the written consent of the credit giver, the credit applicant, mortgagor or guarantor can not transfer any rights or obligation under this agreement to a third person.

39. To credit applicant’s any default or delay conduct, the credit giver impose any act of tolerance, grace or delay the implementation the rights and interests the credit giver shall enjoy under the agreement, shall all not damage, influence or limit the credit giver’s all benefits and rights as the debtor under relevant law regulations and this agreement, can not be regarded as a permit or approval of credit giver to any conduct of breaching of this agreement, also can not be regarded as the credit giver give up taking action on existing or future default conduct.

40. This agreement, for whatever reason in law to become invalid or void certain provisions, if the credit giver issued the loan to the credit applicant, and the credit applicant has not repay in full yet, the credit giver shall enjoy relevant creditor’s rights to the credit applicant under this agreement, and can immediately recourse the credit applicant for all loan principal, interest and all other related cost under the agreement.

This agreement “credit terms” if for some reason, part or all invalid, does not affect the “mortgage clause” and “guarantee clause” effect, the mortgagor, the guarantor shall bear the responsibility in accordance with the agreement relevant agreed term.

41. The credit giver once sending out any correspondence relating to this agreement upon in accordance with this agreement no. 1 confirmed credit applicant, mortgagor, guarantor’s address ( hereinafter call “contact address”),  any postal mail once send to post office with described above address are deemed to have served to the parties. Credit applicant, mortgagor or guarantor change the above contact address shall promptly notify the credit giver, otherwise it may be to bear the resulting loss and responsibility. Credit giver in public media on a way of public announcement to inform or collect to the credit applicant, mortgagor and guarantor, deemed as served on the date of the announcement.

42. Credit applicant, mortgagor and guarantor hereby consent and authorize: to the department include but not limited to property rights registration, personal credit agency recognized by authorities, credit giver’s business cooperative institution and relevant department (organization), the credit giver has the right to provide or check the credit applicant’s relevant information, including but not limited to informations under this agreement, general information and property information of the credit applicant, mortgagor and guarantor, and  information request by other right authorities or by law needed to provide.

43. If two or more persons involved as joint debtor in this agreement, any one of joint debtor bears unlimited joint and several obligation of all debt under this agreement. If one of them in violation of the agreement, the credit giver has the right to recourse against any of the debtors, request them to take all the debt.

44. Credit giver authorizes the jurisdictions bank branch or network as of the specific handling organization of the loan under this agreement, and this bank branch or network performs the relevant credit giver’s rights and obligations relevant to this agreement, the credit giver bears corresponding legal responsibility.

45. This agreement can be changed and removed after the credit giver and credit applicant reached consensus on a written agreement. In the prior written agreement, this agreement is still valid.

46. Each specific contract under this agreement, including but not limited to all single loan contract, relevant business application, loan promissory note, guarantee contract (book), receive notice of deposit and other contract, application, power of attorney and certificate, and the parties to this agreement on the outstanding issues, change issues reached a written supplementary agreement by consensus as attachment to this agreement, and constitute an integral part of this agreement, it has the same legal effect as this agreement.

47. This agreement applies to the laws of the PRC, the rights of the parties by the protection of the laws of PRC.

48. After the notarization of this agreement and the specific contract with enforceable effect, the credit giver can apply directly to people’s court that has jurisdiction for enforcement.

49. Agreement Taking Effect

49.1 The scope of the parties subject to no. 1 of this agreement.

49.2 The credit giver signing the agreement by the way of official seal or contact seal; in addition to the credit giver if other party is legal representative or other organization, the way of signing the agreement is by official seal and authorized signature or signature stamp; if other party is natural person, the way of signing the agreement is by natural person’s signature.

49.3 The agreement becomes effective upon the signature of each parties, it automatically lapse until the date all loan principal interest and other related expenses under this agreement repaid off.

 

Credit Giver (Seal):

Credit Applicant (Signature):     

Mortgagor:(Seal/Signature/Name Stamp)  

Guarantor: (Seal/Signature/Name Stamp)

 

Signing Date: