Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates
Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates
Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates
Order of the China Banking Regulatory Commission [2007] No. 9
July 3, 2007
Adopted at the 54th Chairman Meeting of the China Banking Regulatory Commission on December 8, 2006, the Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates are hereby promulgated and shall go into effect as of their date of promulgation.
Chairman: Liu Mingkang
Appendix: Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates
Chapter I General Provisions
Article 1 With the goal of strengthening the administration of loans secured with institutional time deposit certificates, these Regulations are formulated in accordance with the Banking Regulatory Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, the Real Rights Law of the People's Republic of China, and other relevant laws and administrative regulations.
Article 2 Loans which are secured using institutional time deposit certificates within the territory of the People's Republic of China shall be governed by these Regulations.
For the purposes of these Regulations, "institutions" refer to enterprises, public institutions, social organizations, and other organizations.
Article 3 For the purposes of these Regulations, institutional time deposit certificates (hereinafter referred to as time deposit certificates) refer to the proof of fixed term deposits issued by financial institutions (hereinafter referred to as deposit banks) upon application using the account opening confirmation by a lender who has been entrusted to do so by the borrower of a secured loan.
Time deposit certificates shall be issued and used only for secured loans.
A Confirmation of the Opening of an Institutional Time Deposit Account issued by a financial institution when such an account is opened may not be used directly as a certificate of title for the purposes of securing a loan.
Financial institutions shall establish relevant management systems, strengthening administration relevant to the issuance of Confirmation of the Opening of an Institutional Time Deposit Account and the issuance and usage of deposit certificates.
Article 4 Parties to the loans secured by deposit certificates shall abide by national laws, administrative rules, and regulations, observing principles of equal status, voluntary participation, and good faith.
Chapter II Issuance and Confirmation of Deposit Certificates
Article 5 In addition to the documents required by other regulations, a borrower shall submit the following documents to the lender when arranging for a loan secured by deposit certificates:
1. An account opening confirmation, either the borrower's letter of confirmation or the confirmation letter of a third party which has been provided to the borrower;
2. A letter of authorization from the depositor entrusting the lender to apply for a time deposit certificate from the deposit bank;
3. The seal or password of the depositor left at the deposit bank.
In the case that the account opening confirmation is provided by a third party, a written agreement shall be submitted stipulating that the third party approves of using their confirmation to take out a secured loan.
Article 6 When the lender has reviewed and approved the loan application from the borrower, the lender shall submit the account opening confirmation and the letter of authorization to the deposit bank by way of applying for the issuance of a time deposit certificate and a confirmation letter.
Where the borrower's application for a loan is denied following review, the lender shall promptly return the account opening confirmation letter and the authorization letter to the borrower.
Article 7 Following the receipt of relevant documents submitted by a lender, the deposit bank shall examine them carefully to determine whether the account opening confirmation is authentic, whether the corresponding relationship exists between the depositor and the bank, and whether the seal or password provided in the application for the secured loan and the seal impression or password used during the original deposit transaction are identical.
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Order of the China Banking Regulatory Commission [2007] No. 9
July 3, 2007
Adopted at the 54th Chairman Meeting of the China Banking Regulatory Commission on December 8, 2006, the Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates are hereby promulgated and shall go into effect as of their date of promulgation.
Chairman: Liu Mingkang
Appendix: Regulations on the Administration of Loans Secured Using Institutional Time Deposit Certificates
Chapter I General Provisions
Article 1 With the goal of strengthening the administration of loans secured with institutional time deposit certificates, these Regulations are formulated in accordance with the Banking Regulatory Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, the Real Rights Law of the People's Republic of China, and other relevant laws and administrative regulations.
Article 2 Loans which are secured using institutional time deposit certificates within the territory of the People's Republic of China shall be governed by these Regulations.
For the purposes of these Regulations, "institutions" refer to enterprises, public institutions, social organizations, and other organizations.
Article 3 For the purposes of these Regulations, institutional time deposit certificates (hereinafter referred to as time deposit certificates) refer to the proof of fixed term deposits issued by financial institutions (hereinafter referred to as deposit banks) upon application using the account opening confirmation by a lender who has been entrusted to do so by the borrower of a secured loan.
Time deposit certificates shall be issued and used only for secured loans.
A Confirmation of the Opening of an Institutional Time Deposit Account issued by a financial institution when such an account is opened may not be used directly as a certificate of title for the purposes of securing a loan.
Financial institutions shall establish relevant management systems, strengthening administration relevant to the issuance of Confirmation of the Opening of an Institutional Time Deposit Account and the issuance and usage of deposit certificates.
Article 4 Parties to the loans secured by deposit certificates shall abide by national laws, administrative rules, and regulations, observing principles of equal status, voluntary participation, and good faith.
Chapter II Issuance and Confirmation of Deposit Certificates
Article 5 In addition to the documents required by other regulations, a borrower shall submit the following documents to the lender when arranging for a loan secured by deposit certificates:
1. An account opening confirmation, either the borrower's letter of confirmation or the confirmation letter of a third party which has been provided to the borrower;
2. A letter of authorization from the depositor entrusting the lender to apply for a time deposit certificate from the deposit bank;
3. The seal or password of the depositor left at the deposit bank.
In the case that the account opening confirmation is provided by a third party, a written agreement shall be submitted stipulating that the third party approves of using their confirmation to take out a secured loan.
Article 6 When the lender has reviewed and approved the loan application from the borrower, the lender shall submit the account opening confirmation and the letter of authorization to the deposit bank by way of applying for the issuance of a time deposit certificate and a confirmation letter.
Where the borrower's application for a loan is denied following review, the lender shall promptly return the account opening confirmation letter and the authorization letter to the borrower.
Article 7 Following the receipt of relevant documents submitted by a lender, the deposit bank shall examine them carefully to determine whether the account opening confirmation is authentic, whether the corresponding relationship exists between the depositor and the bank, and whether the seal or password provided in the application for the secured loan and the seal impression or password used during the original deposit transaction are identical.
......