Chapter1 General Principle
For the need of business, the borrower applies
for loan from the lender. After inspection, the lender agrees to
release loan to the borrower under the conditions of the
contract.
In order to clarify both parties’ rights
and duties, they have discussed and agreed on the following clauses
in accordance with the laws and regulations of the People’s
Republic of China.
Chapter2 Function of the Loan
Clause1. After discussion, both parties have
agreed upon the following:
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The borrower can only use the loan under the
contract as working capital.
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The borrower must not use the loan for other
purposes without the lender’s written consent in advance.
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Chapter3 Currency, Amount, Term and Transfer
of the Loan
Clause2. The currency and amount of the loan
under the contract is (in Chinese characters) RMB4,400,000.
Clause3. The term of the loan under the
contract is from January 20, 2009 to January 19, 2010.
Clause4. When all the conditions stated in
Clause11 of the contract are met, the lender should follow the No.1
manner as following to transfer the loan into the borrower’s
account at the lender’s place:
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Transfer at one time. The lender should
transfer the entire loan to the borrower’s account at the
lender’s place on January 20, 2009.
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Transfer at different times. See details of
transfer as follows:
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amount: (in Chinese characters)
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(1) amount: (in Chinese characters)
(1) amount: (in Chinese characters)
Once the loan has been transferred out of the
lender’s account, the loan will be regarded as having been
released. And the calculation of the interest starts from the same
day.
Chapter4. Interest Rate and Interest
Calculation Method of the Loan
Clause5. The borrower should follow the
contract to pay for the interest at the annual interest rate of
6.372%.
Clause6. Both parties agree that during the
term of the loan, the interest rate remains unchanged.
During the loan term, if the People’s
Bank of China adjusts the standard interest rate of loan or the
interest calculation method, which applies to the loan under the
contract, the lender has the right to fix new interest rate and
charge the borrower with the new interest rate from the date of the
adjustment.
Clause7. The interest of the loan should be
liquidated every quarter, with the 20 th day of the last month of each
quarter as the liquidation day.
Clause8. The interest of the loan under the
contract is calculated from the date the loan is transferred out of
the lender’s account on the basis of 360 days per year and
the actual amount transferred out and the actual days the loan is
occupied.
Clause9. If the borrower has not followed the contract to
repay the principle of the loan, the lender will have the right to
charge penalty interest from the due date till the borrower repays
off the principle and the interest of the loan. The penalty
interest rate is 50% higher than the rate stated in clause5.
If the borrower has not followed the contract
to use the loan, the lender will have the right to charge penalty
interest from the due date till the borrower repays off the
principle and the interest of the loan. The penalty interest rate
is 100% higher than the rate stated in clause5.
Clause10. For the interest the borrower fails
to repay on time, the lender has the right to charge compound
interest on the basis of the penalty interest rate.
Chapter5. Release and Use of the Loan
Clause11. The lender has no obligation to
provide the loan under the contract to the borrower unless the
following conditions are met:
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The borrower has already provided all the
documents required by the lender. The conditions stated in the
documents have not changed and the documents are valid
consistently. Or the borrower has already provided satisfactory
explanation to the changes which have occurred;
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The borrower has filled all the loan
receipts/vouchers, which are part of the contract and share the
same legal effectiveness with the contract. When the amount, term,
interest of the loan stated in the contract are different from
those stated in the receipts/vouchers, the ones stated in the
receipts/vouchers should be taken as standard;
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The borrower must follow related laws and
regulations to get all approvals, permits, registration and other
legal procedures; and at the lender’s request, the borrower
should cover the notarization procedures;
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If the loan is guaranteed, the borrower should
make sure the notarization, registration or insurance procedures
are covered and consistently valid;
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none of the breaching conditions is met.
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When the foregoing conditions are met, the
lender may transfer the loan to the borrower’s account at the
lender’s place.
Clause12. The borrower should repay the
interest according to the contract, and repay the principle of the
loan on the basis of the No.1 manner stated below:
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Repay the principle at one time. The borrower
should repay all the principle on January 19, 2010;
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Repay the principle by installment. The
details of amount and dates of the repayment are as following:
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(3) amount: (in Chinese
characters)
(1) amount: (in Chinese characters)
(1) amount: (in Chinese characters)
If the date of repayment is not the
lender’s business day, it should be deferred to the next
business day of the lender and the repayment date should be counted
for interest. At the last time of the borrower’s repaying the
principle, the interest should be repaid together with the
principle and the date is not limited by the ending date stated in
clause7.
Clause13. The borrower should repay the loan
in full amount timely when it is due. If the borrower fails to
repay on time, the lender has the right to deduct the expense
payable, loan interest, compound interest and principle of the
loan.
Clause14. If the borrower has repaid part of
the loan and interest at a due date, the repayment should be used
firstly to repay the expense that the borrower should repay; and
should be used secondly to repay the loan interest and compound
interest; and then to repay the principle of the loan at last.
Clause15. If the borrower wants to repay the
loan before due, it should apply for that to the lender 30 days in
advance and get the lender’s consent.
The standard interest for the repayment before
due is: (none)
Clause16. The manner of guarantee to the loan
under the contract is: 1.
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Tianjin Haitai Investment Guarantee Co., Ltd.
(the guarantor) will provide joint liability
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