I. Overview of the loan (4 1)

(a) "general principles of loans" adjustment object (42)

1. General conditions of the loan

Loan is the most basic asset business of commercial banks and the main way for commercial banks to make profits. Loans involve the economic interests of both borrowers and financial institutions. In order to ensure the safety of credit assets, the state pays special attention to the loan activities of commercial banks and other financial institutions. According to the relevant provisions of the People's Bank of China Law and the Commercial Bank Law, the People's Bank of China implemented the General Principles of Loans on August 1986, which is of normative significance to financial institutions.

2. Lenders

Chinese-funded financial institutions established in People's Republic of China (PRC) to engage in loan business according to law do not include Sino-foreign joint venture financial institutions and wholly foreign-owned financial institutions, nor do they include any other companies and individuals that do not have the ability to engage in loan business.

3. Borrowers

Legal persons, other economic organizations, individual industrial and commercial households and natural persons who obtain loans from Chinese-funded financial institutions engaged in loan business. It does not include borrowers who borrow from overseas financial institutions, nor does it include borrowers who borrow from domestic foreign-funded financial institutions.

4. The concept of loan

A loan is a monetary fund provided by the lender to the borrower to repay the principal and interest at the agreed interest rate and time limit, including RMB and foreign currency. It does not include other securities other than currency, such as stocks, bonds, bills of lading, warehouse receipts, unexpired bills and other securities, nor does it include any tangible and intangible assets provided to borrowers.

5. Management and supervision institutions

All financial institutions and their business activities are supervised by the People's Bank of China on the legality and rationality of their activities, so the supervision and management institution of loans is the People's Bank of China and its branches in various provinces, cities and counties. The People's Bank of China determines whether the loans of financial institutions violate the principles of equality, voluntariness, fairness, honesty and credit, whether there is unfair competition, and has a certain degree of veto power over the loan activities of financial institutions.

(ii) Types of loans (43)

1. Loan method

(1) Self-operated loan. It refers to a loan in which the lender raises funds in a legal way and issues them on its own, and the loan risks arising therefrom are borne by the lender itself, and the principal and interest are recovered by the lender after the loan expires.

(2) entrusted loans. It means that funds are provided by clients such as government departments, enterprises and institutions, and individual citizens. Lenders (that is, entrusted financial institutions) issue loans on behalf of the clients according to the loan objects, purposes, term of money, interest rates and other conditions determined by the clients, supervise the use of funds, and assist the clients to recover the loan principal and interest when the loans expire.

(3) Specific loans. It refers to the loan granted by a wholly state-owned commercial bank to a specific company or project after taking corresponding remedial measures for the losses that may be caused by the loan with the approval of the State Council. This kind of loan has many policy components, and is generally used for major equipment renovation projects of state-owned enterprises, national key construction projects, national key poverty alleviation projects, complete sets of equipment export projects (seller's credit), national key scientific research projects and other investments.

2. Term of loan

(1) Short-term loans. Refers to loans with a loan term of less than 1 year (including 1 year), most of which are used for working capital loans, and their interest rates are higher than other loans.

(2) medium-term loans. Refers to loans with a loan term of more than 1 year (excluding 1 year) and less than 5 years (including 5 years), which are mostly used for fixed assets investment and major equipment renovation, and the interest rate is lower than short-term loans.

(3) Long-term loans. Refers to the loan with a loan term of more than 5 years (excluding 5 years), which is mainly used for investment in large-scale projects, key projects, foreign aid and other projects, and its interest rate is the lowest among the three types of loans.

3. Loans and guarantees

(1) Credit loan. Refers to the loan issued according to the borrower's reputation.

(2) secured loans. Refers to the loan provided by the borrower in the form of guarantee, mortgage or pledge, in which the guarantee loan refers to the loan issued by a third party under the guarantee mode stipulated by China's guarantee law, and promises the borrower to bear the general guarantee responsibility or joint liability according to the agreement; Mortgage loan refers to the loan issued with the property of the borrower or a third party as collateral according to the mortgage method stipulated in the Guarantee Law; Pledged loan refers to the loan issued with the property or power of the borrower or a third party as collateral according to the pledge method stipulated in the Guarantee Law.

(3) Bill discount. Refers to the loan issued by the lender through the purchase of the borrower's unexpired commercial paper. Bill discount refers to a special credit activity in which the lender accepts the borrower's application for bill discount and pays the amount recorded in the bill to the applicant as the balance after deducting the interest difference from the discount date to the maturity date. If the bill cannot be cashed at maturity, the discounter (lender) has the right to recover from the discounter and any other person recorded on the bill according to the provisions of China's Bill Law.

(III) Loan Term and Interest Rate (26)

1. Loan term

When determining the loan term, it should be clearly recorded in the loan contract after consultation between both parties according to the borrower's production and operation cycle, repayment ability and lender's capital supply ability. Among them, the longest term of self-operated loans can not exceed 10 years, and if it is really necessary to exceed 10 years, it should be reported to the People's Bank of China for the record, so as to facilitate the central bank to supervise the flow and safety of financial institutions; The longest discount period of bills shall not exceed 6 months, from the discount date to the maturity date of bills.

2. Loan extension

(1) extension application. If the borrower fails to repay the loan on schedule, it shall apply to the lender for loan extension before the maturity date.

(2) Continue to guarantee. If the borrower's loan belongs to secured loan, mortgage loan or pledge loan, the guarantor, mortgagor and pledgor shall issue a written certificate agreeing to grant the loan. The original loan contract has agreed on this situation, according to the agreement.

(3) Extension period. The cumulative extension period of short-term loans shall not exceed the original loan period; The cumulative extension period of medium-term loans shall not exceed half of the original loan period; The cumulative extension of long-term loans shall not exceed 3 years, unless otherwise stipulated by the state for some major projects.

(4) circumstances that cannot be postponed. If the borrower fails to apply for extension or the extension application is not approved, the loan will be transferred to the overdue loan account from the day after the maturity date, which means that the borrower can no longer borrow from the lender, which will adversely affect its production and business activities.

3. The interest rate of the loan and the collection of interest.

The lender shall determine the interest rate of each loan according to the upper and lower limits of the loan interest rate stipulated by the People's Bank of China, and clearly record it in the loan contract.

4. Special circumstances of loan interest

(1) Loan discount.

(2) Unless there is a definite decision in the State Council, no unit or individual, including financial institutions, has the right to decide whether to stop, reduce, postpone or interest-free. For those who meet the requirements, the lender shall, according to the decision of the State Council, specifically handle the suspension, reduction, deferment and exemption within the scope of its authority.

(IV) Special Provisions on Loan Management (27)

1. Establish a loan lead banking system.

2. The lead bank does not include funds, but it should provide loans to borrowers in a planned way according to regulations, provide necessary information consultation for borrowers, and provide various financial agency services.

3. For syndicated loans, a loan lead bank shall be identified, a syndicated loan agreement shall be signed, the rights and obligations of each lender shall be defined, and the loan items shall be reviewed. The lead bank shall supervise the repayment of the loan according to the proportion determined in the agreement.

4 administrative departments at all levels of enterprises and institutions, supply and marketing cooperatives and other cooperative economic organizations, rural cooperative foundations and other foundations shall not engage in financial services such as deposits and loans; Enterprises shall not, in violation of the provisions of national financial laws and regulations, handle loan or disguised loan financing business.

5. Lenders issuing loans or accepting deposits in different places shall report to the branches of the local people's bank for the record, so as to facilitate the state's control and monitoring of macro capital flows.

Second, the loan process (84)

(1) Loan application and approval (48)

1. Loan application. If the borrower needs a loan, he should apply directly to the host bank or the agent bank of other banks. The application shall include the loan amount, loan purpose, repayment ability, repayment method and other basic contents, and be accompanied by necessary supporting documents.

2. Credit evaluation. The lender shall evaluate the credit rating of the borrower according to the quality, economic strength, capital structure, performance, economic benefits and development prospects of the borrower's leaders. The assessment can be conducted by the lender independently, knowing the borrower's situation internally, or by an assessment agency recognized by the competent department.

3. Loan investigation and approval. After accepting the borrower's application, the lender shall investigate the borrower's credit rating and the legality, safety and profitability of the loan, verify the collateral, pledge and guarantor, and determine the loan risk.

(II) Performance of the loan contract (34)

1. loan contract. A loan contract should be signed for all the money lent by the lender, which should at least include the basic contents such as loan type, loan purpose, loan amount, interest rate, repayment period, repayment method, etc., and should also specify in detail the rights and obligations of the borrower and the borrower, the liability for breach of contract and other matters that both parties think need to be agreed.

2. Guarantee contract. Guarantee loan shall be signed by the guarantor and the lender, or the guarantor shall specify the guarantee clauses agreed with the lender in the loan contract. Stamp the official seal of the guarantor as a legal person and sign the name of the guarantor's legal representative or its authorized agent. Mortgages and pledged loans shall be signed by the mortgagor, the pledger and the lender. If registration is required according to law, the registration procedure shall not be omitted.

3. Loan operation. The lender shall, in accordance with the provisions of the loan contract, issue loans on time and in batches. For whatever reason, if the lender fails to issue the loan as agreed in the contract, it shall pay liquidated damages; If the borrower fails to use the loan according to the conditions agreed in this contract, it shall also pay liquidated damages.

4. Post-loan inspection and loan recovery. After issuing loans, financial institutions should follow up and inspect the borrower's performance of the loan contract and operation. Upon expiration of the term, the principal and interest of the loan shall be recovered in time. The borrower shall repay the loan principal and interest in full within the time stipulated in the loan contract.

(III) Supervision of Non-performing Loans (37)

1. The concept of non-performing loans. Non-performing loans refer to non-performing loans, sluggish loans and overdue loans. Among them, non-performing loans refer to loans that are confirmed as non-repayable according to the relevant provisions of the Ministry of Finance and classified as non-performing loans; Sluggish loans refer to loans that are overdue (including expired after extension) for more than 2 years and have not been returned according to the relevant provisions of the Ministry of Finance, or loans that have terminated production and operation and projects have been suspended (excluding bad loans) although they are not overdue or overdue for a specified period of time; Overdue loans refer to loans that are not due (including those due after extension) as agreed in the loan contract (excluding sluggish loans and bad loans).

2. Registration of non-performing loans. Non-performing loans are provided by the accounting and credit departments, and the audit department is responsible for audit identification according to the prescribed authority. The lender shall fill in the non-performing loan report quarterly, and submit it to the local branch of the People's Bank of China at the same time.

3. Non-performing loan evaluation. Non-performing loans, sluggish loans and overdue loans of financial institutions shall not exceed the proportion stipulated by the People's Bank of China, and financial institutions shall issue specific indicators for assessing non-performing loans, sluggish loans and overdue loans to branches to urge all departments to guard against loan risks.

4. Collection of non-performing loans and write-off of non-performing loans. The credit department of financial institutions is responsible for the collection of non-performing loans, and the audit department is responsible for checking the collection. Financial institutions must draw bad debt reserves in accordance with relevant financial laws and regulations, and write off bad debt loans in accordance with the conditions and procedures for writing off bad debts. Without the approval of the State Council, financial institutions shall not exempt borrowers from the obligation to repay loans; Without the approval of the State Council, no unit or individual may compel the lender to exempt the borrower from the obligation to repay the loan.

(IV) Management of loan creditor's rights preservation and repayment (24)

1. The loan creditor's rights will not disappear because of the borrower's unilateral behavior, and the borrower shall not take advantage of the opportunity and way of merger, bankruptcy or shareholding system reform to evade the loan debt illegally. It is not allowed to evade the lender's credit supervision and the obligation to repay the loan principal and interest by contracting or leasing.

2. Debt restructuring.