The Supreme People's Court on the hearing on the "joint venture contract disputes
Notice several questions "

(act of November 12, 1990 (the hair) <1990> 27)

The people's courts at various local levels throughout the country, the military courts at all levels, Railway Transportation Intermediate Court and the local courts, the maritime courts:
Now will "on Several Issues concerning the trial of joint venture contract disputes solution" to you, hope to implement it in the trial work in. What are the problems and suggestions in the implementation, please timely report in our hospital.

Attached: Some Issues concerning joint venture contract disputes solution

According to the "The general principles of the civil law of the people's Republic of China"And other relevant laws, regulations, the people's court in the trial of some of the issues raised in the joint venture contract disputes, answer as follows:

A,Accept the problem about the joint venture contract dispute cases
(a) related parties for joint venture contract, change, termination of the economic disputes, such as the joint venture investment, profit distribution, the liability for breach of contract, debt, asset returns the dispute to the people's court, in conformity with theCivil procedural law (Trial)ArticleEighty-oneThe provisions of the conditions of prosecution, the people's court shall accept the case.
(two) associated parties due to internal pool settings, staff management issues of the dispute to the people's court, the people's court shall not accept the.

Two,The jurisdiction of a joint contract dispute case
(a) joint contract dispute case jurisdiction, because different joint forms:
1 corporate joint contract dispute case, the corporation type main office pool where the jurisdiction of a people's court.
2 partnership joint contract dispute case, the partnership joint venture registered under the jurisdiction of the people's court.
3 cooperative joint venture contract disputes, the defendant is under the jurisdiction of the people's court.
(two) by the joint venture mainly offices or joint venture registered under the jurisdiction of the people's court is difficult, such as corporate joint venture has the formalities for deregistration, partnership, joint venture shall be approved by the business sector registered without registration, or associated expiration has disintegrated by the defendant, jurisdiction the people's court.

Three,Identification of the joint venture contract qualification
(a) the main joint venture contract should be the implementation of independent accounting, able to bear civil liabilities independently of the enterprise legal person and the enterprise legal person.
Individual industrial and commercial households, rural contracting households, individual partnership, and does not have the legal person status of the private enterprises and other economic organizations and enterprises as legal persons or institutions affiliated, can also become the main body of the joint venture contract.
(two) branches of enterprise legal persons, institutions do not have the qualifications of a legal person, without legal authorization, shall not be in its own name signed the joint venture contract; authorization to own name signed the joint venture contract and without legal orders, shall be confirmed as invalid.
Party and government organs and institutions, party and government organs for membership sequence of military organs, trade unions, the Communist Youth League, association, Association for science and technology and all kinds of associations, societies and the democratic parties, cannot become the subject of the joint venture contract.

Four,The minimum guarantee clause in the contract of joint venture
(a) the joint venture contract of guarantee clause, usually refers to the pool side does to the venture investment, and participation in joint management, share the joint profit, but not to assume joint responsibility for the loss, in a loss, still want to recover its investment and receive a fixed profit clause. The minimum guarantee clause against the associated activities should follow the share profits and losses, risk sharing principle, damages other associated party and the joint venture of the creditor's legitimate rights and interests, therefore, shall be confirmed as invalid. Joint venture loss, joint fixed profit party in charge shall be the minimum guarantee clause, exit, compensation for losses without loss of joint venture, or compensation, still remaining, the remaining part can be used as pool of surplus, by both sides to agree reasonably according to the proportion of investment or joint venture parties redistribution.
(two) an enterprise as a legal person, as a joint undertaking of a corporate direction venture investment, but not to participate in the joint operation, do not assume joint responsibility for the risk, regardless of profit and loss are also able to recover, or can receive a fixed profit, is that of the joint venture, is borrowing, in violation of the relevant financial regulations, the contract should be recognized invalid. In addition to the principal can be returned, for investors have acquired or interest agreement made shall be confiscated, the other party shall be equivalent to the bank interest.
(three) financial trust and investment institutions as a pool party in accordance with the law to the venture investment, according to the contract agreed to share a fixed profit, but also should assume joint responsibility for the loss.

Five,About the exit problem associates in period
(a) composed of corporate joint venture partnership or joint venture of one party or several parties in the pool during the withdraw from the pool, if the pool is not dissolved, shall return the withdrawing party as investment investment property. The original existence, the returning of the original object; the original does not exist or return is difficult, to pay compensation at the market price. Exit for exit before the associated income earnings and debt, should share and the share in accordance with the joint venture contract or the proportion of investment. Quit the party partnership pool also deal with all debts before exiting joint bear joint and several liability. If the pool because the pool party or several parties withdraw from the pool and not continue to exist, we can terminate the contract, and property and debt poetic couplet belongs to make.
(two) does not comply with the provisions of the law or contract conditions and withdraw from the joint venture, quit the party shall pay compensation for the actual economic loss caused to the pool. But if the other party affiliation has fault, it should be according to the size of the fault related parties, each bear the corresponding economic responsibility.

Six,A joint venture contract default payment, calculation of damages
According to theThe general principles of the civil lawArticleOne hundred and twelveThe provisions of the second paragraph, the joint venture contract prescribed liquidated damages amount or percentage of, in accordance with the agreement of the contract. The agreed liquidated damages amount or proportion is too high, the people's court according to the actual economic loss reduction; the agreed liquidated damages inadequate compensation for the actual economic loss, the compensation to. The joint venture contract prescribed compensation calculation method, no party shall pay compensation according to the calculation of actual situation and the calculation method of agreement. The joint venture contract neither prescribed liquidated damages amount or proportion, and unstated compensation method, the compensation for the actual economic loss shall be borne by the fault side.

Seven,About the property processing pool after the termination of the contract
(a) joint venture as enterprise legal person, the pool due to terminate the contract and termination. Joint property after liquidation of debt has surplus, in accordance with the distribution agreement or joint venture parties in proportion to their capital contribution.
Joint venture partnership business organizations, joint venture after the lifting of the contract, joint property of the liquidation of the debt has surplus, in accordance with the earnings ratio, the joint venture contract agreed to return investment, the distribution of profits. The joint venture contract has not been agreed upon, associated parties and the negotiation fails, in accordance with the proportion of investment allocation.
(two) joint venture investment in return, equipment, housing and other related parties the original investment of fixed assets, the original existence, the returning of the original object; the original does not exist or return the original is difficult, as repayment.
(three) the purchase of joint venture in period of houses, equipment and other fixed assets cannot be separated, can be priced to sell after the assignment. Sell, associated parties have the right of first refusal.
(four) obtained during the joint venture in the trademark right, special right, ownership and ownership of economic compensation for termination of joint venture contract after, should according to "Trademark law of the people's Republic of China","The patent law of the people's Republic of China"Of the relevant provisions. Trademark right should belong to a party affiliation. The patent right may be to associate a party, can also be associated parties enjoy. Associate one party alone enjoy trademark rights, patent rights, shall give the economic compensation to other associated party to appropriate.

Eight,To deal with the problem about invalid associated income
The joint venture contract is confirmed to be invalid, the pool during the return to the joint venture contract, should be used to pay off the debt and compensation associates the no fault party suffered economic loss due to invalid contract.
The parties malicious collusion, damage the interests of the state, the collective or the third person's legitimate interests, or because of the contents of the contract in violation of national interests or social public interests in joint venture contract invalid, according toThe general principles of the civil lawArticleSixty-oneArticle second and articleOne hundred and thirty-fourThe provisions of the third paragraph of the camp, poetic couplet body during the return to the joint venture contract, shall be regarded as illegal income confiscated, the state, the collective or the return of third people, poetic couplet Ying parties can also impose a fine; constitute a crime, to the public security, procuratorial organs investigation.

Nine,Assume the problem about poetic couplet Ying debt related parties
(a) joint venture parties poetic couplet Ying liability should be in accordance with the different forms of difference associated with:
1 joint venture is an enterprise legal person, to all property joint venture foreign civil liability. Affiliated parties poetic couplet Ying the responsibility to their respective contribution subscribed by it. The withdrawing subscription funds to evade debts, the people's court shall order the withdrawal of the actual amount in return, could also impose a fine upon the responsible personnel.
2 joint venture is a partnership organization, to joint venture property settlement joint debt. Joint venture's property is not sufficient to offset the debts, the proportion of related parties in accordance with the bear by the joint venture contract agreed debt, bear civil liability with the respective all or the management of property; contract was not agreed proportion debt obligation, associated parties and the negotiation fails, in accordance with the proportion of capital contribution or surplus allocation proportion that related parties should bear the responsibility.
Partnership related parties should be in accordance with the provisions of the relevant laws, regulations or the contract poetic couplet Ying debts jointly and severally liability.
3 joint venture is the type of collaboration, joint venture parties in accordance with the contract, to their all or management shall bear civil responsibility.
(two) the agricultural collective economic organizations to provide all their land use rights to participate in the joint management in partnership, shall bear the joint debts in accordance with the joint venture contract, if the contract is not agreed proportion debts, may refer to the proportion of capital contribution or surplus allocation proportion.
(three) to provide the right to use the technology as a partnership venture investment pool party, shall bear the joint debts in accordance with the joint venture contract, as she owns or manages property is insufficient to pay off the debt of the joint venture, to certain period of the right to use the technology of discount debt.

"The Supreme People's Court on some issues concerning joint contract dispute case to answer" explicitly pointed out that, an enterprise as a legal person, as a joint undertaking of a corporate direction venture investment, but not to participate in the joint operation, do not assume joint responsibility for the risk, regardless of profit and loss are also able to recover, or can receive a fixed profit, is that of the joint venture, which is borrowing, in violation of the relevant financial regulations, the contract should be recognized invalid.

At present, China's financial regulations prohibit the company / business lending.Provisions -- "general loans" sixty-first the people's Bank of China promulgated Administrative Regulations: between the enterprise shall not violate the state's regulations borrowing or lending financing in disguised form. Obviously, China banned the company / business lending to the mandatory provisions of the form, even if a loan financing is banned.

　　In addition to the provisions of the law, the Supreme People's Court (hereinafter referred to as "the Supreme Court judicial interpretation issued") also denied the company / enterprise lending behavior legal effect.The Supreme People's court "reply" should be how to deal with the problem of enterprise loan contract the borrower fails to repay the loan provisions of the loan contract: enterprise in violation of the relevant financial regulations, the contract is null and void.

      In judicial practice, the respondent for corporate borrowing a party tend to be the court "interpretation concerning the application of 'issues' contract law of the people's Republic of China (a)" article fourth of the "to confirm the contract null and void, should laws adopted by the National People's Congress and its Standing Committee and the administrative regulations formulated by the State Council as the basis, not the local laws and regulations, administrative rules on the basis of the relevant provisions of" negative "loan general clauses" (as the legal document is the administrative rules and regulations) prohibition of reason, but in the court case, based on the consideration of protecting the financial order, the court usually does not support this kind of reason, will confirm the enterprise loan contract invalid. 　　

     Notable is, in practice, there will be a joint venture is borrowing, namely the company / enterprise as a party to the joint venture, with other companies to establish a common enterprise / joint venture investment, but not to participate in the joint operation, do not assume joint responsibility for the risk, not on the profit and loss are also able to recover, or can receive a fixed profit.This pool is borrowing, due to the violation of the mandatory provisions of relevant financial regulations, legal effect has been the judicial interpretation ("the Supreme People's Court on some issues concerning joint venture contract disputes solution") negative, related to the joint venture contract is invalid.

   What need reminds is, although China's laws and regulations prohibit the company / business lending, but allow between citizens and companies / enterprises lending.According to the Supreme People's court "about how to confirm the citizens and enterprises between the borrowing behavior potency question reply" regulations, citizens and non financial enterprises (hereinafter referred to as enterprises) loan between belongs to the folk lending. As long as the parties expressed their true meaning can be identified effectively, only the following four kinds of circumstances: 1, the enterprise is invalid to borrowing name to the illegal fund-raising; 2, enterprises to borrow the name of illegal to social capital; 3, business loans to the public the name of loans; 4, other violations of laws, administrative rules and regulations behavior.

As for the citizens and between company / corporate borrowing rates,As long as the parties agreed interest rate does not exceed the bank loan interest rate 4 timesAccording to the court, "about how to confirm the citizens and enterprises between the borrowing behavior potency question reply" the relevant provisions of the contract, validity.

 Link:

General loans

 Chapter I General Provisions

Article 1 in order to regulate the credit behavior, safeguard the legitimate rights and interests of both lending, ensure the security of credit assets, improve the overall efficiency of loan use, promoting sustainable development of social economy, according to "the people's Republic of China Law of the people's Bank of China", "people's Republic of China Commercial Bank Law" and other relevant laws and regulations, formulate the rules. 

Article second provisions "lender", refers to the established according to law in the territory of China business loan business of Chinese funded financial institutions.The general says borrowers obtain loans, refers to legal persons, the Chinese funded financial institutions loans and other economic organizations, individual industrial and commercial households and natural person. 

The loan department said the rules refers to borrowers and lenders agreed by the interest rate and the period of repayment of money.

The general loans currencies including the RMB and foreign currency. 

Article third the issuance and use of loans shall comply with the laws, administrative regulations and the people's Bank of Chinese issued administrative regulations, should follow the efficiency, safety and liquidity principle. 

Fourth the borrower and the lender's lending activities should follow voluntary, equality, fairness, honesty and credit principle.Article fifth lenders lending operations, shall follow the principle of fair competition, the close cooperation, and shall not engage in unfair competition.

Article sixth the people's Bank of Chinese and its branches is the implementation of "general loans" regulatory authorities. 

The second chapter loan types 

Seventh self loans, entrusted loans and specific loan: 

Self - loan, refers to resort to legal means to raise funds own loans, the risk from the lender, and the lender to recover the principal and interest. 

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. 

Specific loans, approved by the State Council and refers to the loan losses and take remedial measures enjoined the solely state-owned commercial bank loans. 

Article eighth short-term loan, medium and long-term loan: 

Short term loans, means the term of the loan within 1 years (including 1 years) loans. 

Medium term loan, refers to the loan period in more than 1 years (not including 1 years) to 5 years (including 5 years) loans. Long term loans, means the 5 year loan period (not including 5 years) above loan. 

Ninth credit loans, secured loans and bills discounted: 

Credit, refers to the borrower's credit loans. 

Loan guarantee, refers to guarantee loans, mortgage, pledge loans. 

Loan guarantees, refers to as "Regulations of the people's Republic of China Law of guarantee" guaranteed way to third people in the borrower cannot repay the loan commitment, agreed to assume the general guarantee liability or joint liability and loans. 

Mortgage, refers to as "Regulations of the people's Republic of China Law of guarantee" the mortgage to the borrower or the third party's property as collateral loans.

Pledge loans, refers to as "pledge of regulations of people's Republic of China Security Law" to the borrower or the third party's property or rights as a pledge loans. 

Bill discounting, means the payment to purchase borrowers lender is not due to commercial paper of loans. 

Tenth in addition to entrust loan, the Lender Loans, the borrower shall provide a guarantee. The lender shall the repayment capability of the guarantor, strictly review collateral, pledge the ownership and value and feasibility of realizing the right to mortgage, pledge.The loan review, assessment, confirm the good borrower's credit, it can repay the loan, can not provide guarantee. The third chapter the term of the loan and the interest rate 

Article eleventh the term of the loan: 

Loan deadline according to the money supply capacity of production and operation cycle, the borrower repayment ability and lenders by borrowers to discuss determined, and stipulated in the loan contract. 

Self - the longest period of the loan shall not exceed 10 years in principle, more than 10 years shall be reported to the people's Bank China record. Discount discount period shall not exceed 6 months, the discount period is from the discount to the date of maturity date. 

Article twelfth the loan extension: 

Can not return the loan, the borrower shall before the loan maturity, apply to the lender for the loan. Whether the extension decision by the lender. Apply for loan guarantees, mortgage, pledge loan, it should be by the guarantor, collateral, written proof of a matter by consent. Have agreed, in accordance with the provisions. 

Short term loan time limit shall not exceed a total of the original loan period; medium-term loan extension period shall not exceed half the total duration of the loan; long-term loans the extension period shall not exceed a total of 3 years. Except otherwise stipulated by the state. The borrower fails to apply for extension or the application for extension is not approved, the loan from the due date of the next day, into the overdue loan account. 

The thirteenth loan interest rates: 

The lender shall be in accordance with the provisions of the people's Bank of Chinese upper limit and lower limit of loan interest rates, determine each loan interest rates, and stipulated in the loan contract. 

Fourteenth of the loan interest income: 

The lender and the borrower shall timely collection or delivery of interest according to relevant interest bearing loan contract and the people's Bank of China provisions. Loan period and the period to reach a new term grades, from the renewal date, loan interest rates at the new period grade 2003. 

According to the provisions of the overdue loans impose a punitive interest. 

Fifteenth a loan discount: 

According to the national policy, in order to promote the economic development of some industries and regions, the relevant departments can be on loan interest subsidies. The relevant departments in discount loan, commercial banks shall be independent review and issue, according to the relevant provisions of the general principles of strict management. 

Sixteenth loans, interest rates, and cease break free: 

In addition to the decision of the State Council, any unit or individual has the right to determine the end, cut, slow breath and interest free. The lender shall be based on the decision of the State Council, in accordance with the limits of authority and responsibility for specific cease, cut, slow breath and interest free. 

The fourth chapter the borrower 

Seventeenth the borrower shall be by the Administration for Industry and Commerce (or authority) approved the registration of enterprises (thing) industry corporate, other economic organizations, individual industrial and commercial households or have the nationality of the people's Republic with full civil capacity of natural persons. 

The borrower to apply for loans, should have the product market, production and management efficiency, not misappropriation and diversion of credit funds, with the basic conditions of the credit, and shall meet the following requirements: 

A, there are regular servicing ability, the original loan interest paid and expire loan has been paid; no settlement, has been recognized by the lender repayment plan. 

Two, in addition to the natural person and does not need to be approved by the business sector registered enterprise legal person, shall be subject to the business sector for the annual inspection procedures. 

Three, has been open basic accounts or general deposit account. 

Four, in addition to the provisions of the State Council, the limited liability company and Limited by Share Ltd of foreign equity investment accumulative total amount does not exceed 50% of its total net assets. 

Five, debt equity ratio of the Borrower Lender compliance requirements. 

Six, apply for medium-term, long-term loans, corporate owners and project new project required a total investment of the proportion is not lower than the state investment projects of the capital ratio. 

Eighteenth the borrower rights: 

A, can be independent to the sponsoring bank or any other banking agencies to apply for loans and loans in accordance with the conditions; Two, has the right to extract and use all of the loan contract; 

Three, have the right to refuse the additional conditions not included in the loan contract; 

Four, have the right to the lender's superior and the people's Bank of China reflect, report relevant information; 

Five, with the consent of the consent of the lender, has the right to transfer to the third debt. 

Article nineteenth obligations of the borrower: 

A, shall truthfully provide the lender requires data (the law cannot provide except), shall truthfully provide all the lender bank, account and deposit and loan balance, to cooperate with the investigation, lenders and check; 　　

Two, should accept the lender oversight of its use of credit funds and relevant production and management, financial activities; Three, we should use the loans according to the loan contract; 

Four, according to the principal and interest of the loan agreement shall timely pay off the loan contract; 

Five, the debt to transfer all or part of third person, shall obtain the consent of the lender; 

Six, endangering the safety when the creditor's rights, it shall timely notify the lender, and the preservation measures. Twentieth the borrower limit: 

One, not a lender with a area of two or more than two of the branch loan. 　　

Two, shall not provide false or conceal important facts of the balance sheet, income statement to the lender. 

Three, shall not engage in loans and equity investments, except as otherwise provided by the state. 

Four, shall not engage in speculation in securities, futures and so on loans. 

Five, in addition to obtain qualified real estate business according to law shall not use the loan to the borrower, the real estate business; obtain qualified real estate business according to law shall not use the loan to the borrower, engaged in real estate speculation. 

Six, may obtain loans for lending to seek illegal income. 

Seven, do not use foreign currency loans in violation of the provisions of the State Administration of foreign exchange. 

Eight, shall not take the means of cheating loan. 

The fifth chapter Lender 

Article twenty-first lenders must be approved by the people's Bank of Chinese business loan business, the people's Bank of China issued a "financial institution legal person license" or "business license" of financial institutions, and by the administrative department for Industry and Commerce registration. Article twenty-second the lender's rights: 

According to the conditions of the loan and loan program independent review and decision of loans, in addition to the specific loans approved by the State Council, have the right to refuse any units and individuals to provide forced loans or guarantees. 

A, require the borrower to provide relevant information and loan; 

Two, according to the borrower's loan conditions, decision and not loan, the loan amount, duration and interest rates; 

Three, understand the borrower's production and business activities and financial activities; 

Four, in accordance with the contract from the borrower account designated receiving the loan principal and interest; 

Five, the borrower fails to perform the obligations as stipulated in the loan contract, the lender shall have the right to require the borrower to return the loan in advance or contract agreed to stop paying borrowers not use loan; 

Six, the loan will be or have been affected by the loss, according to the provisions of the contract, to take measures to avoid loan losses. Twenty-third the lender's obligations: 

A, shall announce the type, duration and interest rate business loans, and provide advice to borrowers. 

Information content and lending conditions two, shall be open to the public loan review. 

Three, the lender shall consider a borrower's application, and promptly reply - and not loan. Short term loans reply time shall not exceed 1 months, medium - and long-term loans, reply time shall not exceed six months except otherwise stipulated by the state. 　　

Four, should the borrower's debt, finance, production and management, security, but according to the law of query except. Article twenty-fourth the lender limits: 

A, lending must strictly implement the "the people's Republic of China Commercial Bank Law" article thirty-ninth of the asset liability ratio management of the relevant provisions stipulated in article fortieth of the conditions, not to grant any credit loans, guaranteed loans to people not better than other similar borrowers loan conditions. 

Two, the borrower under one of the following circumstances, may not grant loans to its: 

(a) do not have the provisions of rules fourth chapter seventeenth of the qualifications and conditions; 

(two) banned the production, operation or the country of investment products, project; 

(three) in violation of the provisions of the State Administration of foreign exchange; 

(four) the construction project according to the provisions of the State shall be reported to the approval of relevant departments and has not obtained the approval document of the; 

(five) the production and business operation or investment projects without permission of the environmental protection department; 

(six) in the implementation of contracting, leasing, joint venture, cooperation, merger (merger), discrete, property rights transfer, joint-stock reform and system changes process, outstanding original loan debt, the implementation of the original loan debts or to provide a corresponding guarantee; 

(seven) there are other serious illegal behavior. 

Three, without the approval of the people's Bank China, not to a natural person for foreign currency loans. 

Four, self - loan and specific loans, in addition to the people's Bank of China provisions of interest, shall not charge any other fees; entrusted loans, except as provided for by the people's Bank Chinese collecting fees, shall not charge any other fees. 　　

Five, not to the principal advance funds, except as otherwise provided by the state. 

Six, the strict control of credit, actively promote the loan guarantee. 

The sixth chapter loan program 

Article twenty-fifth the loan application: 

Borrowers need loans, should agencies to the sponsoring bank or other banks apply directly. 

The borrower shall fill out include the loan amount, loan purpose, repayment ability and repayment of the loan application "" and provide the following information: 

One, the basic situation of the borrower and the guarantor; 

Two, the Department of finance or accounting (AUDIT) firms approved annual financial report, as well as the application before a period loan financial report; 

To correct the situation, the original three unreasonable occupied loans; 

Four, mortgage, pledge list and the disposition to mortgage, pledge and guarantee that people to agree to related documents guarantee; 

Five, the project proposal and feasibility report; 

Six, the lender that need to provide other relevant information. 

Article twenty-sixth of the borrower's credit rating: 

Should according to the borrower's leadership quality, economic strength, capital structure, performance, operating efficiency and development prospects and other factors, assessment of the borrower's credit rating. Rating can be carried out independently by the lender, internal control, can also be carried out by an appraisal institution approved by the authorities. 

Investigation of twenty-seventh loans: 

The lender accepts the borrower's application, carries on the investigation to the borrower's credit rating and its legitimacy, security, profitability and other, verify collateral, pledge, guarantee, determination of loan risk degree. 

Article twenty-eighth the loan approval: 

The lender shall establish censoring, grading approval of the loan management system. Examiners should provide for investigators to data verification, evaluation, retest loan risk degree, put forward opinions, according to the provisions of authority for approval. 

The twenty-ninth sign a loan contract: 

All the loans shall sign a loan contract with the borrower lender. Loan contract shall stipulate the category of loans, loan purpose, amount, interest rate, loan period, repayment, loan, credit rights, obligations, liabilities for breach of contract and other matters deemed necessary by the parties. 

Guarantee loan guarantor shall sign the guarantee contract with the lender, or guarantor in the loan contract specified in consultation provisions to ensure consistent with the lender, the guarantor of the corporate seal, and guaranteed by the legal representative or authorized agent signed. Mortgage, pledge loans shall be made by the mortgagor, the pledgor and the lender to sign a mortgage contract, the pledge contract, the need for registration, should apply for registration according to law. 

Thirtieth loans: The lender according to stipulated in the loan contract on loans. Lenders do not schedule according to the contract issuing loans, it shall pay breach of contract damages. The borrower does not contract with the paragraph, it shall pay breach of contract damages. 

Check the thirty-first loan: 

Loans, the lender shall conduct investigation and inspection operation of the borrower and the borrower loan contract implementation. thirty-second loan: 

The borrower shall, in accordance with the loan contract shall repay the principal and interest of loans in full and on time. 

Before the lender in short-term loans before the due date, 1 weeks long term loan due 1 months, shall send notice to the borrower to repay the principal and interest; the borrower shall timely funding, repay the principal and interest on time. 

The lender late loans to be issued in a timely manner collection notice, do the overdue loan interest him. 

The lender of the agreed period of the loan contract cannot be repaid loans, should be in accordance with the provisions of penalty interest; not returned or cannot implement the servicing matters, it shall urge returned or prosecuted. 

The early return of loan borrowers, and lenders should be consultation. 

Regulation of nonperforming loans of the seventh chapter 

Thirty-third lender shall establish and improve loan quality supervision system, classification, the non-performing loan registration, assessment and collection. 

Article thirty-fourth the non-performing loan refers to the bad loans, doubtful loans, overdue loans. 

The bad loans, according to the relevant provisions of the Ministry of finance refers to as bad loans. 

Idle loans, means in accordance with the relevant provisions of the Ministry of finance, the overdue (including the extension after expiration) in excess of the prescribed period above has not yet returned to the loan, or is not overdue overdue dissatisfaction or prescribed number of years but the production and business operation has terminated, project construction loans (excluding the bad loans). 

Overdue loans, refers to the loan contract agreement expires (including the extension after expiration) not repaid loans (excluding bad loans and bad loans). 

Article thirty-fifth the non-performing loan registration: Nonperforming loans provided by the accounting data, the credit department, the audit department responsible for auditing in accordance with the provisions of authority finds, the lender shall quarterly reporting non-performing loans in table. In the report to the superior line at the same time, shall be reported to the local branch of the people's Bank of Chinese. 

Article thirty-sixth the non-performing loan appraisal: The lender's bad loans, doubtful loans, overdue loan shall not exceed the provisions of the people's Bank of Chinese ratio. The lender shall indexes about branches and evaluation issued the bad loans, bad loans and overdue loans. 

Article thirty-seventh of bad loans and bad loans write collection: 

Credit department is responsible for the NPL collection, audit department is responsible for collection of inspection. The lender shall draw bad debt reserve in accordance with relevant state regulations, and in accordance with the bad debt write off write off bad loans, the conditions and procedures. 

Without the approval of the State Council, the lender shall not exempt loan. In addition to the State Council for approval, no unit or individual may compel lenders exempt loan. 

The eighth chapter loan management responsibility system 

Management of the thirty-eighth loans to governor (manager, director, similarly hereinafter) is responsible for the system. 

Loan classification management, the Governor shall be within the scope of authority responsible for loan issuance and recovery. President may authorize the vice president or loan management department is responsible for approving the loan, responsible for the vice president or loan management departments should be on the president's responsibility. 

Article thirty-ninth the lender institutions at all levels shall establish a president or vice president (manager, director, the same below) and relevant departments attended the loan review committee (Group), is responsible for the loan review. 

Article fortieth establishment of censoring system: 

The loan investigation assessment personnel responsible for the loan investigation and evaluation, undertake survey errors and inaccurate evaluation responsibility; loan review personnel in charge of loan risk review, to undertake the review responsibility for the mistakes; loan officers responsible for loan examination and collection, undertake check errors, poor collection responsibility. 

Article forty-first to establish the loan classification system: 

The lender shall according to the volume of business size, the level of management and loan risk degree determine the authority of examination and approval of the branches at all levels, more than the examination and approval authority of the loan, should be reported to higher authorities for approval. The branches at all levels shall, according to the type of loan, the borrower's credit rating and mortgage, pledge, guarantee every loan risk degree people etc.. 

Article forty-second to establish and perfect the credit system of job responsibility: 

All levels of credit management department should the loan management of each link management responsibilities to the Department, post, personal credit, strict division staff at all levels of responsibility. 

Article forty-third the lender to establish credit system in the factory of large borrower.

 Article forty-fourth a departure auditing: 

Loan management personnel in the removed from the original work, shall be issued to the loan risk during his term of office, and within the authority of audit. 

The ninth chapter loan debt preservation and liquidation management Forty-fifth the borrower shall not violate the provisions of the law, by the way of merger, bankruptcy or joint-stock transformation, evasion of bank debt, misappropriation of credit funds; not by contract, lease and other ways to escape the Lender Credit Supervision and responsibility to repay the loan principal and interest. 

Article forty-sixth the lender shall have the right to participate in the process of mergers, bankruptcy or joint-stock transformation of the borrower's debt restructuring, it shall require the borrower to implement the loan repayment of principal and interest. 

Article forty-seventh the lender shall in accordance with the requirements of contracting, leasing business borrowers, and make clear the original loan contract, the lease contract of the liability to pay the.

Article forty-eighth the lender on the implementation of joint-stock transformation of the borrower, shall be required to re signed loan contracts, clear the original loan debt liability. 

On the reconstruction of joint-stock borrowers, should make clear its arrears of debt by the modified company and assume full responsibility; on the reform of joint-stock borrowers, shall require the transformation of the shares of the company as capital or asset occupation borrowers share of the original borrower loan debt. 

An enterprise as a legal person of new borrowers forty-ninth lenders pool consists of capital or assets, should be occupied the basis requirements will be the proportion of loans to corporate new. 

Article fiftieth the lender to merger (merger) of the borrower, shall request the merger (merger) in front of debt debts or provision of a corresponding guarantee. 

The borrower does not repay the loan debt or fails to provide a corresponding guarantee, the lender shall require the merger (merger) or the newly established enterprises merged enterprises bear returned to borrowers obligations, and re signed the relevant contract or agreement. Article fifty-first the lender on joint ventures with foreign (cooperation) of the borrower, shall be required to continue to bear the joint (cooperative) before the loans to the responsibility, and the return of the loan proceeds. The borrower has been used as collateral for a loan, mortgage of property and foreign joint venture (cooperation) must seek the consent of the lender. 

Article fifty-second the lender to discrete the borrower, shall be required to provide corresponding guarantees before the division of debt or debt. The borrower does not repay the loan debt or fails to provide a corresponding guarantee, the lender shall require the enterprises after division, according to the separation of capital or assets or agreement, to bear the liability owed by the borrower loan. To set up a subsidiary company shall require the borrower, subsidiary to the capital or assets and repay the parent company bear the corresponding loan debt. 

Article fifty-third the lender to property transfer or application for dissolution of the borrower, shall require the transfer of property rights or the dissolution of the former must implement loan debts. 

Article fifty-fourth the lender shall be in accordance with the determination and debt related laws and participate in the bankruptcy property disposal, the borrower has set for bankruptcy property mortgage, pledge or other secured loans, lenders have priority in accordance with the law; no property loans secured creditor according to legal procedures and the proportion of compensation. 

Chapter tenth special provisions for loan management 

Article fifty-fifth to establish the loan host bank system: 

The borrower shall, according to the provisions of the people's Bank of China and open basic account set up loan sponsored lender relationship.

The borrower has the important economic activities of enterprise division, joint-stock transformation, the construction of major projects involving the use of credit funds and security, shall solicit opinions in advance to host the line. A borrower can only have one loan to host, host line should follow the basic account changes due to the change of. 

The line not capital, but shall be planned to borrowers of loans, to provide the necessary information, agents and other financial services to the borrower. 

The bank loan system and implementing measures shall be formulated separately by the people's Bank of China. 

Article fifty-sixth the syndicated loan shall be determined by a loan arranger, and sign the syndicated loan agreement, clearly the rights and obligations of the borrower, the loan project review. The arranger shall be in accordance with the agreement to determine the proportion of supervision and loan repayment. Syndicated loans management measures shall be formulated by the people's Bank of China. 

Management of the fifty-seventh specific loan: 

The state-owned commercial banks shall, according to the provisions of the State Council, distribution and management of specific loan. 

The specific measures shall be separately stipulated loan management. 

Fifty-eighth non bank financial institutions loan types, object, scope, shall comply with the provisions of the people's Bank of China.Article fifty-ninth lenders to make loans in different places, or to accept remote deposit, shall be reported to the local branch of the people's Bank of Chinese record. 

Article sixtieth the credit funds shall not be used for fiscal expenditure. 

Sixty-first levels of administrative departments and enterprises, supply and marketing cooperatives, cooperative economic organization, rural cooperative foundation and other foundations, financial business may not engage in deposit and loan etc.. Enterprises shall not violate the provisions of the state or a loan financing loan. 

The eleventh chapter penalties 

Article sixty-second the lender in violation of the relevant provisions of the asset liability ratio management of loans, should be in accordance with the "people's Republic of China Commercial Bank Law" article seventy-fifth, by the people's Bank of China shall be ordered to make corrections, punishable by a fine, illegal gains confiscated illegal income, and should be in accordance with the provisions of article seventy-sixth punishment given to the persons directly in charge and the other persons directly responsible. 

In violation of the provisions of article sixty-third lenders grant fiduciary loans or guaranteed loans conditions better than other similar borrowers loan conditions, should be in accordance with the "people's Republic of China Commercial Bank Law" article seventy-fourth penalties, and shall be in accordance with the provisions of article seventy-sixth of the directly liable persons shall be given a punishment. 

 Article sixty-fourth the lender's staff to the unit or individual to provide forced loans or guarantees do not refuse, shall be given disciplinary sanctions in accordance with the "people's Republic of China Commercial Bank Law" article eighty-fifth, losses shall bear the corresponding compensation liability.

The relevant responsible persons of sixty-fifth lenders in violation of the relevant provisions of the rules, shall be given disciplinary sanctions and fined; if the circumstances are serious or repeated violations, should be removed from his post, cancel qualification; causing serious economic losses or other economic crime, criminal responsibility shall be investigated in accordance with the provisions of relevant laws. 

Article sixty-sixth the lender has one of the following cases, corrected by the people's Bank of Chinese order; if it fails to do so, the people's Bank of Chinese may impose a fine of 5000 yuan of above 10000 yuan of the following: 

One, did not announce the business loan type, term, interest rate; 

Two, no public loans and loans to censor content; 

Three, no reply to the borrower loan application within the prescribed time limit.

Sixty-seventh lenders in any of the following circumstances, shall be ordered to correct by the people's Bank of China; have the illegal income, the confiscation of illegal income, in addition to 1 times the illegal income more than 3 times the fine; if there is no illegal income, impose a fine of fifty thousand yuan three hundred thousand yuan fine; constitute a crime, shall be investigated for criminal responsibility according to law: 

A lender, in violation of the provisions on behalf of entrusted loan funds; 

Two, without the approval of the people's Bank Chinese, to a natural person for foreign currency loans; 

Three, the lender in violation of the provisions of the people's Bank of Chinese, on - loan or loans in particular interest received charge any other fees, or to entrust loans in addition to collecting fees charge any other fees. 

The sixty-eighth article of any units and individuals to bank loans or providing guarantee, should be in accordance with the "people's Republic of China Commercial Bank Law" article eighty-fifth, the persons directly in charge and other directly responsible persons or individuals given disciplinary sanctions; economic loss, undertake the whole or part of the liabilities for compensation. 

Sixty-ninth if a borrower obtains loans by cheating, which constitutes a crime, shall be in accordance with the "Regulations of the people's Republic of China Commercial Bank Law" and other laws shall be fined eightieth and shall be prosecuted for criminal responsibility. 

Seventieth the borrower violates this principle ninth chapter forty-second regulations, misappropriation of credit funds through mergers, bankruptcy or deliberate way of joint-stock transformation, should be based on the provisions of relevant laws and the corresponding part of the bear compensation liability to pay a fine; cause significant economic losses lenders, shall be investigated for criminal responsibility of the personnel directly responsible in accordance with the provisions of relevant laws. 

The borrower violates other provisions of this chapter shall rule ninth, loan debt failed, the lender to stop issuing new loans, and to recover the original loans ahead of schedule. Resulting in the loss of credit assets, the borrower and the person in charge or other person, shall bear part or full liability. Before performing any other liability, the lender may not grant loans to its. 

Seventy-first the borrower under any of the following circumstances, the lender for part or all of its loans plus interest; if the circumstances are especially serious, shall stop payment of unused loan borrowers, and recover part or all of the loan ahead of time: One, not according to the loan contract provisions to use the loans. 

Two, loans to equity investment. 

Three, with loans in securities, futures and other aspects to engage in speculation. 

Four, failure to obtain qualified real estate business borrowers with loans to the real estate business; obtain qualified real estate business borrowers with loans in accordance with the law, engaged in real estate speculation. 

Five, do not according to the loan contract provisions of the loan principal repayment. 

Six, cash loans from lending to each other illegal income. 

Seventy-second the borrower under any of the following circumstances, the lender shall be ordered to make correction by the. If the circumstances are especially serious or if it fails to do so, by the lender to stop payment of unused loan borrowers, and recover part or all of the loan ahead of time: 

A lender, to provide false or conceal important facts of the balance sheet, income statement data; 

Two, as it is provided to the lender all bank account, account and deposit and loan balance of such data; 

Three, refused to accept the lender on the use of credit funds and related production and operation, financial supervision. Seventy-third administrative departments, enterprises and institutions, joint-stock cooperative economic organizations, the supply and marketing cooperatives, rural cooperative fund and other funds will be loans between enterprises; to handle borrowing or disguised lending, by the people's Bank of China on lenders by illegal income by more than 1 times to a fine of 5 times, and by the people's Bank Chinese banned. 　

Article seventy-fourth the parties accept the decision of the people's Bank of China punishment, according to the "measures of the people's Bank of China administrative reconsideration (Trial)" the provisions of the application for reconsideration, the reconsideration period according to the original punishment execution. 

The twelfth chapter supplementary provisions 

Article seventy-fifth the state policy banks, foreign financial institutions (including foreign-funded, Sino foreign joint ventures, foreign financial institutions branch) loans management measures, shall be formulated by the people's Bank of China. 

Article seventy-sixth of the relevant foreign government loans, export credit, foreign loans, export credit under the external guarantee and matched with the loan of international commercial loans management measures, shall be formulated by the people's Bank of Chinese. 

Article seventy-seventh the lender may make implementation rules according to the rules, submit to the people's Bank of China record. 

Article Seventy-eighth the rules since the date of implementation of the various provisions of the people's Bank of Chinese, and each lender previously developed, they are inconsistent with the rules, the rules shall prevail. 

Article seventy-ninth the rule by the people's Bank of China is responsible for the interpretation of. 

The eightieth article of the rules shall enter into force as of August 1, 1996.

Link two: measures banning illegal financial institutions and illegal financial business activities

Chapter I General Provisions

Article 1 in order to ban illegal financial institutions and illegal financial business activities, safeguarding the financial order, protect the interests of the public, the enactment of this approach.

Article second any illegal financial institutions and illegal financial business activities, must be banned.

Article third illegal financial institutions referred to in these procedures, is not approved by the people's Bank Chinese, or engaged in or mainly in deposits, loans, settlement, bill discount, the borrowing of funds, trust investment, financial leasing, financing, foreign exchange and other financial business activities of the organization.

Illegal financial institutions for the organization, illegal financial institutions.

Fourth said illegal financial business activities as mentioned in these Measures refers to, without the approval of the people's Bank China, unauthorized engaged in the following activities:

(a) of illegal absorbing public deposits or disguised absorbing public savings;

(two) without approval, illegal fund-raising in any name to non specified objects of society;

(three) illegal granting of loans, settling accounts, bills discounting, borrowing of funds, trust investment, financial leasing, financing, foreign exchange trading;

(four) the people's Bank of China identified other illegal financial business activities.

As mentioned in the preceding paragraph of illegal absorbing public deposits, is that without the approval of the people's Bank of Chinese, social not specific objects to absorb funds, issued the certificate, commitment servicing activities within a certain period of time; the disguised absorbing public deposits, is not approved by the people's Bank in the name Chinese, do not absorb public deposits, absorbing funds social not specific objects, but promises to fulfill the obligation and the same deposits from the public nature of the activities.

Article fifth without the approval of the people's Bank China approval in accordance with the law, and no unit or individual shall set up financial institutions or to engage in business activities.

For illegal financial institutions and illegal financial business activities, the administrative department for Industry and Commerce shall not handle the registration.

For illegal financial institutions and illegal financial business activities, financial institutions shall not open accounts, handle settlements and loans. Sixth illegal financial institutions and illegal financial business activities shall be banned by the people's Bank China.

Illegal financial institutions to set up the local people's government or illegal financial business activities have taken place, is responsible for organizing, coordinating, supervising the work related to the ban.

Article seventh the people's Bank of Chinese banning illegal financial institutions and illegal financial business activities according to law, no unit or individual is allowed to interfere, and shall not refuse, obstruct.

Article eighth the people's Bank of Chinese staff in the performance of banning illegal financial institutions and illegal financial business activities, duties, shall keep secret.

The second chapter on the enforcement procedure

The ninth phase of the illegal financial institution, illegal absorbing public deposits or deposits from the public and illegal fund-raising, the people's Bank of China once discovered, shall immediately investigate, verify; after initial recognition, shall timely request the public security organ for investigation according to law.

Article tenth in the process of investigation, the investigation of illegal financial institutions and illegal financial business activities, the people's Bank of Chinese and the public security organs shall cooperate with each other.

Article eleventh for illegal financial institutions and illegal financial business activities of criminal suspects, the capital and property, to take coercive measures by the public security organs in accordance with the law, to prevent the escape of suspects and the transfer of funds, property.

Article twelfth for illegal financial institutions and illegal financial business activities, the people's Bank of China investigation finds, make a decision to ban, announced that the activities of the financial institutions and financial business is illegal, order it to stop all business activities, and make a public announcement.

Article thirteenth the people's Bank of Chinese found that financial institutions to handle the settlement and provide loans for illegal financial institutions or illegal financial business activities, shall be ordered to open an account, the financial institution to immediately stop the relevant business activities. No unit or individual shall not be unauthorized use of funds.

The establishment of an illegal financial institution or engage in illegal financial business activities by the administrative department for Industry and commerce registration, once discovered, the administrative department for Industry and Commerce shall immediately cancel the registration or alteration of registration.

Article fourteenth the people's Bank of Chinese investigating illegal financial institutions and illegal financial business activities, investigation units and individuals under investigation must accept the people's Bank of Chinese according to the law, truthfully reflect the situation, provide the relevant information, and shall not refuse, hide.

Article fifteenth the people's Bank of China investigation of illegal financial institutions and illegal financial business activities, information and materials related to the case, can take the recording, copying, recording and other means to obtain evidence.

The evidence may be destroyed or lost or difficult to obtain later case, the people's Bank of China to advance registration and preservation, the party concerned or the relevant personnel shall not destroy or transfer the evidence.

The third chapter debt clearing off

Sixteenth because of illegal financial business activities of the creditor's rights and debt, by engaging in illegal financial business activities of the agency in charge of cleaning off.

Seventeenth illegal financial institutions by the people's Bank of China announced the ban, has approved, the competent unit or construction unit, approved by the Department, the competent unit or units responsible for the clearing organization set up off debts; not approved, the competent units or groups of building units, by the local people's Government shall be responsible for organizing the clearing where the return of creditor's rights debt.

Article eighteenth for involvement in illegal financial business activities by the loss, by the participants themselves.

The formation of nineteenth illegal financial business activities of debt and risk, may not be passed on to not participate in illegal financial business activities of the state-owned banks and other financial institutions as well as any other units.

Return twentieth claims and debts, to be a surplus of illegal property, confiscation, turned over to the central treasury on the spot.

Article twenty-first for cleaning out the dispute, settled by the parties through consultation; consultation fails, through judicial process solution.

The fourth chapter penalties

Article twenty-second the establishment of an illegal financial institution or engage in illegal financial business activities, which constitutes a crime, shall be investigated for criminal responsibility according to law; if no crime is constituted, the people's Bank China shall confiscate the illegal income, impose illegal income is 1 times more than 5 times the fine; if no illegal earnings, 100000 yuan more than 500000 fine.

Article twenty-third approved the establishment of an illegal financial institution or approved to engage in illegal financial business activities arbitrarily, the persons directly in charge and the other persons directly responsible shall be given administrative punishment; constitute a crime, shall be investigated for criminal responsibility according to law. Article twenty-fourth financial institutions in violation of regulations, for illegal financial institutions or illegal financial business activities, to handle the settlement accounts or loans, corrected by the people's Bank of Chinese ordered, confiscate the illegal income, impose illegal income is 1 times more than 5 times the fine; if there is no illegal income, from 100000 yuan to 500000 yuan shall be imposed; the directly responsible person in charge and other directly responsible personnel shall be given disciplinary action; constitutes a crime, shall be investigated for criminal responsibility according to law.

Article twenty-fifth refused, obstructs the people's Bank of China perform their duties according to law, constitutes a crime, shall be investigated for criminal responsibility according to law; if no crime is constituted, the public security administration punishment by the public security organs in accordance with the law.

Article twenty-sixth the people's Bank of China staff leaks in the performance of banning illegal financial institutions and illegal financial business activities of the duties in secret, they shall be given administrative sanctions; constitute a crime, shall be investigated for criminal responsibility according to law.

Article twenty-seventh the people's Bank Chinese, the public security organ and the administrative department for Industry and Commerce staff be forgetful of one's duties, breach of privilege, play favouritism and commit irregularities, which constitutes a crime, shall be investigated for criminal responsibility according to law; if no crime is constituted, administrative sanctions shall be imposed according to law.

The people's Bank of Chinese staff for illegal financial institutions and illegal financial business activities shall be handed over to the public security organ case, but not over, which constitutes a crime, shall be investigated for criminal responsibility according to law; if no crime is constituted, administrative sanctions shall be imposed according to law.

The fifth chapter supplementary provisions

Article twenty-eighth illegal securities institutions and illegal securities business activities carried out with reference to these measures, the China securities supervision and management committee is responsible for the implementation, and can be based on the principles of these measures to formulate specific implementation measures.

 Ban illegal commercial insurance institutions and illegal commercial insurance business activities with reference to the present measures, a commercial insurance regulatory department under the State Council shall be responsible for the implementation, and can be based on the principles of these measures to formulate specific implementation measures.

Twenty-ninth established before the implementation of these measures and various foundations, societies, clubs, financial services, capital services, settlement center, investment companies and other institutions, beyond the scope of national policy, to engage in illegal financial business activities, shall be in accordance with the provisions of the State Council, the deadline rectification. More than the prescribed time limit to continue to engage in illegal financial business activities, shall be banned according to these measures; where the circumstances are serious, which constitutes a crime, shall be investigated for criminal responsibility according to law.

This the thirtieth method is effective as of the date of promulgation.

Link four:

Official Reply of the Supreme People's Court on the enterprise loan contract the borrower fails to repay the loan should be how to deal with

(compound (1996) No. 15)

Sichuan Provincial Higher People's court:

You Institute "on business lending after expiration of the contract if the borrower does not repay the principal if the calculated overdue interest and for instructions on how to judgment" (Sichuan high method (1995) No. 223) has been received. Through research, the following reply:

Business lending contracts in violation of the relevant financial regulations, the contract is null and void. For after expiration of the contract, the borrower fails to repay the principal, the prosecution to the people's court, the people's court shall in accordance with the Supreme People's Court (through) the relevant provisions of hair (1990) No. 27 "on Several Issues concerning the trial of joint venture contract dispute case to answer" fourth second decision, since both sides agreed on the repayment date of the expiration of the judgment of the court, to determine the borrower to repay the principal expiration period of interest, shall be confiscated, the interest on debit and credit the original agreement rates, if both parties to the loan interest is not agreed, according to the bank loan interest rate. The borrower fails to repay the principal judgment period, should be in accordance with the provisions of the "PRC Civil Procedure Law" article 232nd of the double payment of interest during the delay in performance.

The Supreme People's Court of the people's Republic of China

September 23, 1996

Link five:

On the establishment of commercial bank loan business issues related to notice

Recently, some branches of commercial banks run entrusted loans business issues from the head office. Through the research, the establishment of commercial bank loan business relevant questions are hereby notified as follows:

One, 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, purpose, amount, term, interest rates to extend, 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.

Two, the people's Bank of China on commercial bank loan business by the examination and approval system to record system. The commercial bank to set up the business, must establish strict internal control system. A branch of a commercial bank for the business, the approval documents required to hold its head office and other relevant materials, to the local branch of the people's Bank for the record.

Please all branches, business departments shall forward this notice to all city commercial banks under their jurisdiction.

The general office of the people's Bank China

Two in 2000 to April 5th

Enterprises how to borrow

At present, enterprises direct lending has great risks for lenders. This makes the enterprise to create a lot of evasion of law means to get money, transformation and combination of the legal form of a basic approach is the flexibility in the use of investment and credit. Therefore, in do not take a direct borrowing conditions can take alternative mode, the operation is not complicated, in some cases while also increasing the cost of financing, the legitimacy problem but can solve enterprise direct lending and guarantees. The author thought to trade credit form, with empty bull sold in the form of virtual repurchase, form, or by bank acceptance bill financing, direct or indirect to open to the borrower, the borrower through discount fund and so on technique, solves almost corporate borrowing housing legitimacy of scruples, the law also then introduce some cost is relatively high, relatively new enterprise financing tactics.

 (a) entrusted loans

According to the people's Bank of Chinese "on commercial bank loan business related issues notice", regulations, allowing enterprises or individuals to provide funds, by the commercial banks to issue loans. The loan object shall be determined by the trustee. Such loans to solve the problem of direct financing between enterprises. Entrusted loans are loans between the enterprises products is limited, it is not the indirect financing, but a disguised form of direct financing. But commercial banks will charge a fixed fee, it will increase the transaction cost a certain.

 
(two) trust loans

According to the "trust law", "Trust Investment Company management measures" provisions, the enterprise can be used as a trustee in trust loans loans to other companies. Trust loan object is determined by the trustee of the trust loans, lending relationship is not the full sense of the enterprise, because the client is about to return, but not to lend to anyone.

 
(three) the loan principal double mode conversion

1 natural human model

Between the enterprises and citizens lending to private lending, shall be under the protection of law. So you can personally as the intermediary, lenders will lend money to individuals, the person will lend to the actual use of funds of enterprises, the enterprises for joint guarantee to lend the personal loan, mortgage, pledge or guaranty. If the person can not repay, then lenders recourse to individual borrowers, and also requires enterprises to assume responsibility for security guarantees. The law is between natural person and corporate borrowing, but in fact can be flexible to realize enterprise financing behavior.

Double mode 2 Financial Institutions

 
In this case, the law was identified as financial institutions is the lender, the law no longer recognized as to lend funds to the actual does not lend money, but the money deposited in financial institutions to obtain certificates of deposit, and the deposit for the borrowing enterprise financial institutions to apply for loans as a pledge. In this way the guarantor can not receive interest on the loan, but the fee paid to guarantee fees, "guarantee law" does not prohibit paid guarantee. The deposit pledge, one is the extremely high safety, if the borrower fails to timely repayment, financial institutions can ensure the safety of funds through the hypothecated deposit certificate, more assured of financial institutions. Two is the bank interest, increase the profits. The bank is willing to accept.
In addition, private fund is a kind of special loans between the enterprises form, refers to the debtor creditor relationship from the collection of funds in particular securities field and has a special nature, the current legislation of private funds and not with the securities investment fund law and clear, remains free in the gray zone. If private equity is legal, private equity funds (debt investment form of investment mode) will "logical" to become the enterprise legal giant financing mode. Development of course of corporate financing and solve the channel dependent on China's capital market can be solved fundamentally.