Common use of Full Prepayment Clause in Contracts

Full Prepayment. You may repay all or part of this loan at any time before the end of its term, but you may be liable to pay break costs if you do so. If • you repay a fixed rate loan partially or in full before the end of the fixed rate term, • you switch to another interest rate on a fixed rate loan, or; • a fixed rate loan is repaid at an accelerated rate before the end of the fixed rate period then break costs may be charged based on a reasonable estimate of any loss which Bank of China might incur as a result. How can this happen? Bank of China matches its fixed interest rate asset (your loan) with a fixed interest rate liability (the cost of funding your loan). If you break your fixed rate early Bank of China may still have to pay the fixed interest cost for funding your loan. Therefore break costs will apply if the wholesale rate at the time of early repayment is lower than the wholesale rate at commencement of the fixed rate period. The break costs are based on the following four key factors: • The amount of the loan being repaid; • How much lower current wholesale rates (as briefly described below) are compared to the original wholesale rate at the commencement of the fixed rate period; • The time left on the fixed rate period; and • The time value of money (as an amount received today is more valuable than the same amount received in the future). When you take out a fixed rate loan, Bank of China will exchange fixed interest for floating interest in the wholesale market. This is to match the interest Bank of China must pay on the money it borrows (from its depositors or other banks) to fund loans to customers. In return for offering you a fixed rate that will not change during fixed period, Bank of China requires certainty of income to fund your loan. For example if you repay your loan before the end of its fixed rate period, and the wholesale rates have fallen, Bank of China still has a commitment to pay fixed interest to the depositor (or other bank) for the remainder of the fixed rate period but it is no longer receiving its fixed income from you. Break costs provide a reasonable estimate of the loss to Bank of China arising from this. A larger repayment amount, decrease in wholesale rates, and time left on the fixed rate period may therefore increase the amount of break costs payable. Break costs will not be calculated using the formulas prescribed in the Credit Contracts and Consumer Finance Regulations 2004. Further details relating to break costs are detailed in the General Terms & Conditions. Please contact us to find out about the applicable break costs before making an early repayment.

Full Prepayment. You may repay all or part of this loan at any time before the end of its term, but you may be liable to pay break costs if you do so. If •  you repay a fixed rate loan partially or in full before the end of the fixed rate term, •  you switch to another interest rate on a fixed rate loan, or; •  a fixed rate loan is repaid at an accelerated rate before the end of the fixed rate period then break costs may be charged based on a reasonable estimate of any loss which Bank of China might incur as a result. How can this happen? Bank of China matches its fixed interest rate asset (your loan) with a fixed interest rate liability (the cost of funding your loan). If you break your fixed rate early Bank of China may still have to pay the fixed interest cost for funding your loan. Therefore break costs will apply if the wholesale rate at the time of early repayment is lower than the wholesale rate at commencement of the fixed rate period. The break costs are based on the following four key factors: •  The amount of the loan being repaid; •  How much lower current wholesale rates (as briefly described below) are compared to the original wholesale rate at the commencement of the fixed rate period; •  The time left on the fixed rate period; and •  The time value of money (as an amount received today is more valuable than the same amount received in the future). When you take out a fixed rate loan, Bank of China will exchange fixed interest for floating interest in the wholesale market. This is to match the interest Bank of China must pay on the money it borrows (from its depositors or other banks) to fund loans to customers. In return for offering you a fixed rate that will not change during fixed period, Bank of China requires certainty of income to fund your loan. For example if you repay your loan before the end of its fixed rate period, and the wholesale rates have fallen, Bank of China still has a commitment to pay fixed interest to the depositor (or other bank) for the remainder of the fixed rate period but it is no longer receiving its fixed income from you. Break costs provide a reasonable estimate of the loss to Bank of China arising from this. A larger repayment amount, decrease in wholesale rates, and time left on the fixed rate period may therefore increase the amount of break costs payable. Break costs will not be calculated using the formulas prescribed in the Credit Contracts and Consumer Finance Regulations 2004. Further details relating to break costs are detailed in the General Terms & Conditions. Please contact us to find out about the applicable break costs before making an early repayment.

Full Prepayment. You may repay all or part of this loan at any time before the end of its term, but you may be liable to pay break costs if you do so. If •  you repay a fixed rate loan partially or in full before the end of the fixed rate term, •  you switch to another interest rate on a fixed rate loan, or; •  a fixed rate loan is repaid at an accelerated rate before the end of the fixed rate period then break costs may be charged based on a reasonable estimate of any loss which Bank of China might incur as a result. How can this happen? Bank of China matches its fixed interest rate asset (your loan) with a fixed interest rate liability (the cost of funding your loan). If you break your fixed rate early Bank of China may still have to pay the fixed interest cost for funding your loan. Therefore break costs will apply if the wholesale rate at the time of early repayment is lower than the wholesale rate at commencement of the fixed rate period. The break costs are based on the following four three key factors: •  The amount of the loan being repaid; • repaid  How much lower current wholesale rates (as briefly described below) are compared to the original wholesale rate at the commencement of the fixed rate period; • and  The time left on the fixed rate period; and • The time value of money (as an amount received today is more valuable than the same amount received in the future). period When you take out a fixed rate loan, loan Bank of China will exchange fixed interest for floating interest in the wholesale market. This is to match the interest Bank of China must pay on the money it borrows (from its depositors or other banks) to fund loans to customers. In return for offering you a fixed rate that will not change during fixed period, Bank of China requires certainty of income to fund your loan. For example if you repay your loan before the end of its fixed rate period, and the wholesale rates have fallen, Bank of China still has a commitment to pay fixed interest to the depositor (or other bank) for the remainder of the fixed rate period but it is no longer receiving its fixed income from you. Break costs provide a reasonable estimate of the loss to Bank of China arising from this. A larger repayment amount, decrease in wholesale rates, and time left on the fixed rate period may therefore increase the amount of break costs payable. Break costs will not be are calculated using the formulas formula prescribed in regulation 9 or regulation 11 (as applicable) of the Credit Contracts and Consumer Finance Regulations 2004. Further details relating to break costs are detailed in the General Terms & Conditions. Please contact us to find out about the applicable break costs before making an early repayment.