Common use of Statement and Commitment Clause in Contracts

Statement and Commitment. 1. Party A’s statement: 1) Party A is legally register and exist with full capacity for civil rights and civil conduct; 2) Signing and performing the contract is the true will of Party A, Party A has been granted all legal and valid authorizations before signing the contract. The contract does not form a default for other contracts signed and performed by Party A and other legal documents. It is Party A’s responsibility to complete all required approvals, registrations, permits and filings. 3) All document and information, financial statement, certificates and other materials provided by Party A to Party B are true, complete, accurate and effective. 4) All the transactions mentioned by Party A for apply specific credit line should be real and not for illegal purposes such as: money laundry. 5) No hidden events regarding Party A and guarantor’s financial and repayment abilities. 6) Party A and the loan project reach the national environmental standards, not in the list of the enterprises which have problems of energy consumption and pollution, don’t have the risk of energy consumption and pollution. 2. Party A’s commitment: 1) Party A shall submit the financial statements and other relevant information regularly, including but not limited to annual, quarterly and monthly financial reports. 2) Any counter-guarantee agreement between the guarantors and Party A will not affect the Party B’s underlying rights under this contract. 3) Cooperated in Party B’s exam and inspection on the utilization of the loan as well as Party A’s financials and operations. 4) Under circumstances Party A or Guarantor’s capability of performing the contract might be affected, Party A should notify Party B in written in time. Those circumstances included but not limited to merger, division, decrease of capital, equity transfer, investment, a substantial increase of debt financing, a major asset and credit assignment. Party A should notify Party B in time, when the following things occurred: A. changes of articles of association, the scope of business, registered capital and legal representative of Party A or Guarantor. B. Any form of management mode change, including joint operation, invest and cooperate with foreigners, contract management, reorganization, restructuring, listing plan. C. Party A is involved in major litigation or arbitration, or property or collateral is seized, detained or regulated, or set new guarantee in collateral. D. Out of business, dissolution, liquidation, suspend business for rectification, cancellation, revocation of the business license or (be) filed for bankruptcy. E. Shareholders, directors and senior management personnel suspected of serious cases or economic disputes. F. Default events in other contracts. G. Operating difficulties and financial situation has deteriorated.