Common use of Loan Releasing Clause in Contracts

Loan Releasing. In the event that the Borrower meets the pre-conditions of releasing loan requested by the Lender, the Lender shall release the loan as the following items: (1) The Borrower has delivered the following documents to the Lender, the situation demonstrated by the documents has no change and continues to validate; or the Borrower has made the Lender satisfactory explanation and statement about the change: 1) The Borrower’s company charters confirmed in written by the Borrower, business license, the signature sample of legal representatives and the members of the director board as the registration and record in the administrative department for industry and commerce, the Borrower’s property assessment report, and the ID card copies of the legal representatives, and other company documents that the Lender deemed necessary. 2) The original copy of the meeting of the board of directors or the shareholders held by the Borrower according to legal procedures, and passed by the votes of a quorum of the directors or shareholders, true, legitimate and effective agreement about applying for the loan hereof to the Lender and announcing the use of the loan clearly and accepting the all the borrowed conditions required by the Lender; or other documents that the Lender deemed necessary. 3) The recent three years’ audited annual financial reports and statements approved by the Lender; or other financial documents that the Lender deemed necessary. 4) If the loan items under the contract in accordance with national regulations or requirements need to be applied for approval, the Lender has provided the true and effective original documents approved by the relevant national authorities for the Lender; 5) If there is a third party to guarantee, the company charters confirmed in written by the guarantor; business license; the signature sample of legal representatives and the members of the director board as the registration and record in the administrative department for industry and commerce; and the true, legal, and effective resolution made by the authoritative agent about agreeing with the guaranteeing for the loan hereof; and other company documents that the Lender deemed necessary. 6) Other documents, reports, certificates and data required by the Lender. (2) The Lender has filled with the relevant promissory note or loan certificate. The promissory note or loan certificate is an integral part of this contract, and both of them have the same legal validity. If the loan amount, loan period and interest rate and so on are inconsistent with the record of loan certificate, the record of the loan certificate shall prevail. (3) The declaration and commitments made by the Borrower in the contract Article 8 remained true and effective; on the date of withdrawal or before the date no any events of default or potential event of default occurred. (4) If there exists mortgage or pledge, according to relevant laws and regulations, the Borrower has finished the registration of a mortgage or pledge, relevant ownership and registration certificate documents and so on have been delivered to the Lender to receive and keep based on the Lender’s requirements; if there is the third party to guarantee, the guarantee contract has been put into an effect. The guarantee shall remain valid. (5) If the Lender requests to mortgage property to insure for the loan, the insurance procedures of the Lender as the first beneficiary have been completed and the insurance documents has delivered to the Lender to receive and keep; and the insurance remains valid. (6) If the Lender requires notarization procedures and so on, such procedure and the procedures related to it have been completed. (7) The Borrower has opened an account at the Lender’ and paid the relevant costs in accordance with the requirements of the Lender hereof. (8) Other loan conditions required by the Lender. The Lender shall perform its obligations in accordance with provisions hereof under the pre-condition that the Provision 1 in Article 6 is met. As for the pre-conditions above, the Lender has the right to unilaterally decide to reduce or give up parts of them; and the Borrower and Guarantor shall not take this condition as the subject matter object to the Lender. Once the borrowed money is credited to the Borrower, the loan is deemed to have been released, and the loan interest shall be counted from the date of releasing.