Entrusted loanParagraph

  Although the bank does not entrust loan risk, but banks still should do the due diligence investigation before loan, after the loan management work is complete, as self loans, to assist the client to identify, manage loan risk, achieve the "entrusted by the people, conscientious do duty", not to live up to the client's trust.

   "The product definition

  Entrusted loan is the principal to their discretionary fund, commissioned by the bank in accordance with the provisions of the object, its specified purposes and scopes, reserved conditions (time, amount, interest rate) to extend, supervision and assistance loan. Entrusted loan principal may state organs, enterprises and institutions.

 "Business process

  1, the principal and the borrower to determine loan financing.

  2, the client signed the "entrusted loan agreement" with the bank, the funds entrusted to the bank: there are generally two kinds of ways: (1) signed a loan agreement, that is entrusted to the total loan agreement clearly a certain amount in a year's time, the inner, determined in accordance with the interest rates for loans, without a single pen signed an agreement. Usually applied to entrust loan object fixed, frequent business state ministries and commissions, between affiliated enterprise group. (2) a signed a loan agreement. Usually between entrusted loans occurred less frequently enterprise.

  3, the banks and borrowers signed the "entrusted loans loan agreement", granting loans, charge fees to the client.

  4, banks do regular credit investigation, assessment of borrower risk, and timely notify the principal.

  5, the maturity of the loan, the borrower to repay the loan.

  6, bank funds will be returned to the client.

  "The interest rate

  Loan interest rates determined by the client to negotiate with the borrower, but must be in the regulations of the people's Bank of China range.

  "Fees

  Banks charge a fee, usually a certain proportion of the amount of loans, one-time charge.

  "The business characteristics

  1, broaden the principal rich capital investment channels.

  2, meet the borrower's financial needs.

  The intermediate business 3, pure, the banks do not bear the risk loans, but banks still need to seriously implement the borrower's condition, survey work after the loan, the bank's responsibility as.

  4,At the expiration of the entrusted loans, if the client agrees to sign the loan agreement, can entrust.

  "Risk prevention

  Note: strictly to business, operational risk. Must entrust loan is a party is entitled to the meaning of true representation, the client must provide the units have the right decision consent for written comments entrusted loans, limited company must be issued by a resolution of the board of directors, must be made by the chairman or general manager (if you have the authorization to the general Manager) or other authorized right people were signed and stamped with official seal.

  The risks of the entrusted loans is the largest operational risk. Business related decision-making body, unknowingly, company the individual personnel and the bank staff collusion, through to obtain bank credit funds entrusted loans, resulting in subsequent disputes.

  "Marketing suggestions

  Marketing object can be positioned in the:

  1, the domestic group affiliated enterprises. Between group affiliated enterprises often entrusted loans, both within the group to adjust capital surplus and deficiency, the need to reduce the dependence on foreign capital; at the same time as between companies in the same group is very familiar with each other, each other trust, to ensure the safe operation of entrusted loan funds. At present, many of the large customer group attached great importance to the entrusted loans, the bank customer manager can play expertise, as a consultant to assist customers financial department measures for the management of entrusted loan production group, group customers will be very welcome.

  2, government departments, enterprises and institutions. A lot of customer managers do not know government departments can handle the entrusted loans, in fact, since the country changed later, government departments of many project funds, support enterprises through entrustment loans to local government. Customer manager should have the awareness of marketing at all levels of national ministries, institutions.

  3, personal strength. Private lending between enterprises is very common, as prohibited by the state to business lending, therefore, once a dispute, there will be no guarantee, but through a loan, standardize the entrusting party, the borrower's behavior, business and legal compliance.

   Entrusted loan business is the intermediate business of commercial banks, does not assume any capital risk, but the loan business of commercial banks is a good means for customers, so here focuses on the product.

  Be careful.

  1, entrusted loans, the bank shall not provide any form of security for the client. Although the bank does not entrust loan risk, but banks still should do the due diligence investigation before loan, after the loan management work is complete, as self loans, to assist the client to identify, manage loan risk, achieve the "entrusted by the people, conscientious do duty", not to live up to the client's trust, maintenance of commercial banks their own credibility, establish a good social image of the bank.

  2, commissioned by the mortgage loan to collateral in the bank. In actual operation, the entrusting party out of their own risk control requirements will be his right certificate into its custody.

  3, entrust loan is a key tool for group customer design pool service. According to the Chinese law, and does not allow the direct transfer of funds without independent legal entities, entrusted loans can effectively solve the above contradiction, can draw the quasi subordinate company has some idle funds through loans Group Corporation, the shortage of fund companies can borrow to group company through loans, to realize the system to adjust capital surplus and deficiency.

  The use of funds 4, part of the body defining cannot operate entrusted loans. The securities company customer trading settlement funds, some limited authority of enterprise annuity and cannot be used for entrusted loan. There * * annuity center will enterprise annuity through bank loans to take loans for real estate development enterprises, and ultimately a repayment risk. The prosecution in the enterprise annuity center, commercial banks are involved cases, demanding the return of the loan. The reason lies in the court that the bank should be aware of the enterprise annuity is not for a loan, but for its handling of the formalities, the bank has fault.

  "The provisions of the state on loan

   1, the people's Bank of Chinese released in June 28, 1996 seventh "loan general" provisions of the second paragraph: "entrusted loans, means the government departments, enterprises and institutions and individuals entrusted to provide funds, the lender (or trustee) according to the client to determine the loan object, purpose, amount, interest rate, time limit for payment, supervision and assistance loan. The lender (the trustee) only collect fees, do not bear the risk loans."

2, the Supreme People's Court on the trial of cases of disputes in December 13, 1997 "deposit" some provisions of the seventh paragraph second " constitute entrusted loans, financial institutions issued certificate or statement, signed the bill or funded deposit contract not as proof of deposit relationship, borrowers can not repay the loan risk shall be borne by the the principal. If there is evidence that the certificate is issued by a financial institution to guarantee the loan, repayment of the loan shall bear joint and several liability of financial institutions. Commission invalid agreed rate exceeds the prescribed by the people's bank loans in part."

3, the people's Bank of Chinese office issued in April 5, 2000 "on the commercial bank loan business related issues notice" the first stipulation: "entrusted loans is defined by the government departments, enterprises and institutions and individuals entrusted to provide funds, by the commercial banks (the trustee) according to the client to determine the loan object, use the amount, term, interest rates, and issued, supervision and assistance loan. The establishment of commercial bank loan business, only charge a fee, shall not be liable for any form of loan risk."

           "The case" Beijing Changsheng electric company entrusted loans

  The basic situation, enterprise

  The foundation of Beijing electric power company as a large state-owned enterprises, responsible for electricity supply in parts of Beijing, the company more ample funds, a considerable amount of idle funds, the company does not own any demand for bank. Beijing Changsheng electric power company Beijing power company subsidiary, Beijing Changsheng electric power company as the newly established, the normal production and operation is not carried out, the company liquidity tensions. Development in order to support the subsidiary company, Beijing electric power company to put forward the basic demand to the bank, the prosperity of Beijing electric power company to support its subordinate.

  Two, the bank points

  After getting the information, the two banks provide scheme:

  (1) Beijing branch in China World Trade Center to provide certificates of deposit pledge loan scheme, the Beijing Beijing power company in 15000000 yuan, 6 months deposit, as a pledge, pledge rate was 90%, with 13500000 yuan RMB loans.

  (2) Beijing Xinyuan branch provides entrusted loan scheme, the Beijing Beijing power company stock 15000000 yuan, bank loans entrusted loans, 15000000 Yuan full payment to Beijing Changsheng electric power company. Beijing Xinyuan branch later got the news, so we are very competitive scheme.

  Comparison: the first scheme: bank loan interest, at the same time, the loan amount is only 13500000 yuan; second projects: Beijing power company earn interest, the loan amount is 15000000 yuan. The interest income in vivo circulation, fertilizer outsiders do not flow fields.

  Three, bank enterprise cooperation

  Finally, the Beijing based power company selected Beijing Xinyuan branch of the project, commissioned loan interest rates to 5.22%, a period of one year, the amount of 15000000 yuan. Through a loan, reduce dependence on bank credit funds. At the same time, the loan interest is owned by the Beijing based power company, the group internal to adjust capital surplus and deficiency, the maximum interests of the group.

   Comparison of entrusted loan and deposit pledge loans

 

Name	Entrusted loan	Pledged loan
Characteristic	Use of funds to pay the interest, fees Money supply to be interest income, for customers, the distribution of interests.	Use of funds to pay the interest Bank interest income.

 

         "The case" American Aerlite Power Group entrusted loans

  The basic situation, enterprise

  USA Aerlite Power Group for the large Multi-National Corporation, companies in the China invested more than 20 enterprises, founded in fund management center in Shanghai, part of the member companies more ample funds, a considerable amount of idle funds, and some members of the unit funds shortage. In order to adjustment within the system fund, the company decided by the group settlement center unified management system of funds. In 2005, America Aerlite power group overall flow of funds reached 13000000000 yuan.

  Two, the bank points

  The bank after analysis, think: can realize the adjustment within the system through a loan fund. The foreign exchange funds entrusted loan Multi-National Corporation unified operation, flexible application of dollars cash pool project is entrusted loan maximum. Cooperation between the two sides, the bank is the lender, the group company and its subsidiaries, was commissioned by the borrower and the borrower, then through the electronic banking to achieve a loan agreement, the original one by one single business, become intensive business and process, unified operation and centralized management of foreign exchange funds so as to realize the whole group."

  Three, bank enterprise cooperation

  A state-owned bank service scheme design:

  The "group of entrusted loan" management

  1, aim: to help the group company for unified management on internal funds, reduce the redundancy of the whole group of funds, reduce the cost of capital, improve efficiency in the use of funds.

  2, account structure: group a set of accounts; the company opened a settlement account.

  Allocation of funds: group according to the need, the more adequate funding member units of account information in whole or in part to the collection of groups separately from the collection account; account will fund transfer to the shortage of funds unit. Capital allocation according to the entrust loan accounting. Every afternoon, 4:00, the system automatically scan the capital account of each sub company and the current account surplus of foreign exchange, will merge into the pool. The subsidiary companies internal valuation, to save a pool of interest income, to withdraw money from a pool of loan interest payments, each of the steps above are carried out in a form of loans.

  [comments] the loans for the company to save a lot of financial expenses. American Aerlite power group finance director doctor said: "we estimate, if you do not use foreign currency cash pool of this product, on the one hand, some companies will produce excess cash, on the other hand, some companies will because of lack of funds and loans to banks, enterprises will have more than 1.5% financial expenses. The foreign currency cash pool, business losses of about 20 basis points of financial expenses. Therefore, comparing the two, enterprises can benefit."