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Industrial Bank Co. Ltd. Short Term LOAN CONTRACT

Loan Agreement

Industrial Bank Co. Ltd. Short Term LOAN CONTRACT | Document Parties: CHINA RECYCLING ENERGY CORP | Industrial Bank Co Ltd | Xi'an TCH Energy Technology Co, Ltd You are currently viewing:
This Loan Agreement involves

CHINA RECYCLING ENERGY CORP | Industrial Bank Co Ltd | Xi'an TCH Energy Technology Co, Ltd

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Title: Industrial Bank Co. Ltd. Short Term LOAN CONTRACT
Date: 8/19/2009
Industry: Communications Equipment     Sector: Technology

Industrial Bank Co. Ltd. Short Term LOAN CONTRACT, Parties: china recycling energy corp , industrial bank co ltd , xi'an tch energy technology co  ltd
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Exhibit 10.2

 

Industrial Bank Co. Ltd.

Short Term LOAN CONTRACT

 

Loan No.: Xi Da Road 2009 Loan 001

 

Lender:

Address:

Post Code:

Tel:

Industrial Bank Co., Ltd.'s Xi'an branch

No. 258, Dong Xin Road, Xi’an

710004

029-87482988

 

 

Borrower:

Mailing Address:

Post Code:

Tel:

Xi’an TCH Energy Technology Co., Ltd.

No. 86, Gaoxin Road, Hi-Tch District, Xi’an City

710075

029-87651097

 

 

Signing City:   

Xi’an

 


 

According to applicable laws and regulations of the People's Republic of China (the "PRC"), the Borrower and Lender, after reaching an agreement through negotiation, hereby enter into this contract pursuant to Borrower's application to Lender for a working capital loan (the "Loan")

 

Article 1 Loan Amount

 

Loan Amount (full-form characters): Twenty million Yuan exactly.

 

Article 2 Usage

 

Loan Usage: only for Working Capital Loan purpose

 

Article 3 Loan Term

 

3.1 Term: 12 months, from April 13, 2009 to April 12, 2010

 

3.2 The funds release date shall be as recorded in the Loan voucher. If the actual release date is later than the starting date of the Loan, the ending date shall be postponed accordingly.

 

3.3 Loan release Schedule

 

On the date of April 13, 2009, Lender shall transfer an amount of RMB 20 million in full to Borrower’s account.

 

3.4 If Lender requires the Loan to be early terminated according to the prescription in Article 9, the term shall be ended up to an earlier due date correspondingly.

 

Article 4 Interest Rate and Interest Calculation

 

4.1 The Loan is applied at a fixed interest rate of 5.31% per year

 

4.2 Interests under this Loan shall be accrued quarterly, due on the 20th day of at the end of each quarter within the Loan term and payable by Borrower to Lender each quarter. All principal and outstanding interests shall be paid in full on the ending date of the Loan term.

 

Article 5 Penalty Interest and Compound Interest

 

5.1 If Borrower diverts the fund under this Loan contract to other purposes, or fails in repayment of any due amounts on due dates, or fails in reaching an agreement with Lender for extension of the Loan due to the overdue, Lender shall have the right to charge Borrower for Penalty Interest by applying Penalty Interest Rate prescribed hereinafter. For overdue interest, Lender has the right to charge compound interest at Penalty Interest rate.

 

5.2 Due to Borrower’s overdue repayment and the failure in reaching an agreement on extension of the Loan with Lender, the penalty interest rate shall be fixed at 1.5 times of the Loan’s interest rate under this contract.

 

2


 

5.3 Due to Borrower’s misusing of the loan, the penalty interest rate shall be fixed at 2 times of the Loan’s interest rate under this contract.

 

5.4 Compound interest shall be applied in calculation of interest of the Loan under this contract.

 

Article 6 Loan Repayment

 

6.1 Borrower shall repay all the due in principal and interests under this Loan contract in full on the due date.

 

6.2 Borrower shall not pre-repay the principal and interest without a prior notice to Lender and an approval from Lender. Lender shall have the right to collect all the interests payable under the original Loan term.

 

6.3 Borrower hereby irrevocably authorizes Lender to directly withdraw funds from Borrower's deposit account for repayment of the principle and interests, in the event of certain occurrences hereinafter prescribed under Article 9 and 10.

 

Article 7 Security

 

The following contract shall serves as the Security Contract under this Loan Contract:

 

Serial No: Industrial Bank Co. Ltd Xida Street Security Contract. 001-1# 2009

Security type: Guaranty Contract

Guarantor: Shanxi Zhongze Investment Company Limited

 

Article 8 Declarations and Warranties

 

Borrower hereby declares to Lender

 

1. Borrower is a legally registered company established and existing under the laws and has all the necessary rights, power and capability to enter into and perform all the duties and obligations of this contract.

 

2. Borrower has full authorization from the Board to enter this loan contract and this contract violates no laws, regulations, policies, by-laws and rules applicable to Borrower. Borrower shall take full responsibility of its own if the contract violates any internal policies or by-laws of Borrower.

 

3. Excepted for the representations provided by Borrower in the application documents, Borrower has no mortgage, pledge, lien and contingency liability on its assets and incomes. Borrower has no outstanding litigation, arbitration and bankruptcy.

 

4. Borrower does not hide from


 
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