(1) The principal of the entrusted loan is an enterprise or institution as a legal person approved and registered by the administrative department for industry and commerce (or the competent authority).
(2) Companies that handle domestic entrusted foreign exchange loans must be enterprises listed in the Directory of Transnational Corporations approved by the State Administration of Foreign Exchange.
(3) The borrower in the entrusted loan can only be determined by the principal in writing, and shall not be designated by a third party other than the principal.
2. Compliance requirements:
(1) The source and use of clients' funds must comply with the Law on Commercial Banks, the General Rules on Loans and the relevant provisions of the State Administration of Foreign Exchange, and they must operate with their own RMB funds or their own foreign exchange funds.
(2) Foreign exchange entrusted loan funds shall adhere to the principle of full receipt and full payment, and shall not be deducted, written off, settled, used for settlement or pledged for RMB loans.
(3) Entrusted foreign exchange loans are limited to the investment and financial management mode of mutual borrowing of foreign exchange funds between domestic member companies of multinational corporations (overseas business will not be carried out for the time being), and are carried out in the form of entrusted loans in accordance with the provisions of the General Principles of Loans.
(4) The entrusted loan funds shall not be used for loans and guarantees to others, for projects that are restricted or prohibited by the state to support or repeat construction, for equity investment, or for securities and futures speculation.
(5) A listed company shall not violate the provisions of the Notice on Guarantee of Listed Companies on the qualifications of principals, and a listed company shall not provide funds to its controlling shareholders and other related parties through loans entrusted by banks and non-bank financial institutions.
The above contents are for your reference. Please refer to the actual business regulations.
If you have any questions, please contact online customer service of Bank of China.
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