Common use of Transaction Principles Clause in Contracts

Transaction Principles. 2.1 The Parties hereby agree that Party A shall provide Party B and its subsidiaries financial services under Section 1.1 of this Agreement in accordance with the following principles: (1) Provision of settlement services: Party A will provide settlement services to Party B and its subsidiaries on a free-of-charge basis; (2) Provision of depositary services: when Party A provides depositary services to Party B and its subsidiaries, the interest rates must be agreed by both parties and determined in accordance with the relevant unified standard deposit interest rates as promulgated by the People’s Bank of China (the “PBOC”) from time to time and may be subject to upward adjustment of up to 40% of such PBOC standard deposit interest rates subject to the requirements of the PRC laws and regulations and with reference to the deposit interest rates offered by commercial banks for deposit of the same nature and maturity; (3) Provision of discounting services: when Party A provides discounting services regarding commercial drafts to Party B and its subsidiaries, the interest rates are the relevant unified standard interest rates for discounting services as promulgated by the PBOC from time to time, and such interest rates may be adjusted downward in separate financial service agreements subject to the requirements of the PRC laws and regulations; (4) Provision of loan services: when Party A provides loan services to Party B and its subsidiaries, the interest rates are the relevant unified standard interest rates for loans as promulgated by the PBOC from time to time; such interest rates may be adjusted downward subject to the requirements of the PRC laws and regulations. Further, the parties agreed that the loans provided by Party A to Party B and its subsidiaries are not required to be secured by assets of Party B and its subsidiaries; and (5) Provision of entrustment loans services: when Party A provides entrustment loans services to Party B and its subsidiaries, the annual service fees are calculated based on the principal balances of the loans. The aggregate amount of the annual service fee plus the interest on the relevant loan shall not exceed the interest payable by Party B and its subsidiaries on a loan of same maturity charged by commercial banks. 2.2 Party B and its subsidiaries shall have the right, in their sole discretion with respect to their own benefits, to decide whether to obtain services set forth above from Party A. 2.3 In the event of any misappropriation or misuse by Party A in respect of the funds deposited with it by the Party B or its subsidiaries which results in the inability of Party B or its subsidiaries to recover such funds, Party B or its subsidiaries shall offset amounts due to Party B or its subsidiaries from Party A against amounts outstanding from Party B or its subsidiaries to Party A. Party A has no such right of set off.

Transaction Principles. 2.1 The Parties hereby agree that Party A B shall provide Party B A and its subsidiaries financial services under Section 1.1 of this Agreement in accordance with the following principles: (1) Provision of settlement services: Party A B will provide settlement services to Party B A and its subsidiaries on a free-of-charge basis; (2) Provision of depositary services: when Party A B provides depositary services to Party B A and its subsidiaries, the interest rates must be agreed by both parties and determined in accordance with the relevant unified standard deposit interest rates as promulgated by the People’s Bank of China (the “PBOC”) from time to time and may be subject to upward adjustment of up to 40% of such PBOC standard deposit interest rates subject to the requirements of the PRC laws and regulations and with reference to the deposit interest rates offered by commercial banks for deposit of the same nature and maturity; (3) Provision of discounting services: when Party A B provides discounting services regarding commercial drafts to Party B A and its subsidiaries, the interest rates are shall be the relevant unified standard interest rates for discounting services as promulgated by the PBOC from time to time, and but such interest rates may be adjusted downward in separate financial service agreements subject to the requirements of the PRC laws and regulations; (4) Provision of loan services: when Party A B provides loan services to Party B A and its subsidiaries, the interest rates are shall be the relevant unified standard interest rates for loans as promulgated by the PBOC from time to time; , but such interest rates may be adjusted downward subject to the requirements of the PRC laws and regulations. Further, the parties agreed that the loans provided by Party A B to Party B A and its subsidiaries are not required to be secured by assets of Party B A and its subsidiaries; and (5) Provision of entrustment loans services: when Party A B provides entrustment loans services to Party B A and its subsidiaries, the annual service fees are calculated based on the principal balances of the loans. The aggregate amount of the annual service fee plus the interest on the relevant loan shall not exceed the interest payable by Party B A and its subsidiaries on a loan of same maturity charged by commercial banks. 2.2 Party B A and its subsidiaries shall have the right, in their sole discretion with respect to their own benefits, to decide whether to obtain services set forth above from Party A.B. 2.3 In the event of any misappropriation or misuse by Party A B in respect of the funds deposited with it by the Party B A or its subsidiaries which results in the inability of Party B A or its subsidiaries to recover such funds, Party B A or its subsidiaries shall offset amounts due to Party B A or its subsidiaries from Party A B against amounts outstanding from Party B A or its subsidiaries to Party A. B. Party A B has no such right of to set off.