1 Summary

1.1 Definition

Personal pledge loan is a kind of loan refers to the borrower takes legal, effective pledge goods accordance with the regulated conditions by Jiutai Rural Commercial Bank as pledge, applying to our bank to get the loan.

1.2 Object

The object of personal pledge loan is natural person of full of 18 years old, and having full capacity for civil conduct.

1.3 Conditions

The borrower must possess the following conditions at the same time:

1. Natural person of having full capacity for civil conduct living within Chinese territory, having legal, effective identity certificate;

2. Having better credit record and repaying intention;

3. Having the capability of repaying loan capital and interest;

4. To provide effective pledge goods approved by the loaner as guarantee;

5. To open personal settlement account at our bank, and agrees to authorize the loaner directly deduct and receive loan capital and interest from the appointed repaying account;

6. If the owner of pledge goods is an underage person, It needs to provide his registered permanent residence proof, identity proof original and copies of guardian and legal instrument to prove guardianship relation (such as: household register proof, birth certificate, adopting agreement or appointed guardianship instrument, the below is same) usually it is not suitable to accept the pledge goods in the name of underage person as pledge;

7. When taking the pledge goods of reserved seal to draw as pledge application loan, the owner of pledge goods should provide the sample of reserved seal to Jilin Jiutai Rural Commercial Bank; to take the pledge goods of based on code to draw as pledge application loan, the owner of pledge goods should assist Jiutai Rural Commercial Bank to test and verify the code, check the ownership of pledge goods. Otherwise, Jilin Jiutai Rural Commercial Bank has the right to refuse to handle pledge loan;

8. The other conditions regulated by the loaner.

1.4 The range of pledge goods

1. Certificate of deposit (deposit book): including personal certificate of deposit (deposit book) of our bank of whole deposit and whole withdrawal, notice deposit, odd deposit and whole withdrawal, deposit capital and withdrawal interest, of the self borrower (or the local the third person).

2. Financial product: including the self of borrower or the third person handled RMB personal financial product at Jiutai Rural Commercial Bank.

3. Life insurance policy: including the borrower or the third person signed with our bank of having insurance policy pledge cooperation agreement and having certain value, could be as pledge of life insurance policy issued by insurance organization.

4. Fixed saving certificate of deposit of other banks: including the borrower or the third person signed with our bank of having pledge stopping payment agreement and fixed saving certificate of deposit of postal savings.

The ownership has dispute, already being as guarantee, report the loss, invalid, or stop payment according to the law are not allowed to being as pledge goods.

1.5 Time limit

The longest loan period of personal pledge loan is not over 1 year (including), and the expiring date of pledge loan is not later than the expiring date of pledge goods; to take financial product as pledge, and the expiring date of pledge loan is not later than the first termination ahead of time or the expiring date of this term product. If use more or more piece of pledge goods as pledge, should take the recent expiring date to determine loan period.

1.6 Amount

The lowest loan limit of personal pledge loan is single (household) 10000 Yuan, the highest is not exceeded 20 million Yuan.

1. To take RMB certificate of deposit of our bank, the highest loan limit is not exceeded 90% of pledge goods.

2. To take the financing product of our bank and fixed saving certificate of deposit of other bank as pledge, the highest limit is not exceeded pledge denomination or 80% of principal of financial product.

3. To take more piece or more pledge goods as pledge, pledge rate should be carried out according to the corresponding  regulations separately.

1.7 Use

Personal temporary turnover, production operation or consuming.

1.8 Interest rate

Interest rate of pledge loan, will be carried out according to the same period Interest rate regulated by the People’s Bank of China, The loan bank could carry out floating Interest rate within the range of right limit.

 

2 Operation procedures

2.1 Acceptance

1. Provide consultation

The operator should introduce pledge loan object, conditions, limit, period, Interest rate, repaying mode, loan procedures, handling of default and other situations to the borrower, at the same time to propagandize the characteristic of pledge loan and service distinguishing feature of Jilin Jiutai Rural Commercial Bank.

2. Qualification, conditions preliminary examination

The operator has preliminary examination to the borrower, if the borrower possesses the loan qualification and accordance with the basic loan conditions, could have discussion on the loan amount, loan period and loan mode. For not possessing loan qualification and conditions, refuse to provide loan, and complete propaganda and explaining work.

3. Accept application

After having discussion and determined loan intention, the operator asks the borrower to fill in Application Form of Personal Pledge Loan of Jilin Jiutai Rural Commercial Bank (see attachment 5-6-1), and provides the following certificate papers at the same time:

(1) The borrower takes the pledge goods of self name to apply for loan, needs to provide original hostage of self name and effective identity card.

(2) The borrower takes the hostage of non-self name as pledge to apply for loan, should handle to the business branch of handling loan together with owner of hostage or guardian of owner of hostage, and provides the proof papers according to the following demands:

1) The borrower takes the hostage of other natural person of  having full capacity for civil conduct as pledge application loan, needs to provide hostage original and self of borrower and effective identity card of owner of hostage;

2) The borrower takes the hostage of underage person as pledge application loan, if the borrower is guardian of underage person, needs to provide hostage original and effective identity card of self of borrower and household register proof of self of underage person and the legal document of proving guardian relation; if the borrower is not the guardian of underage person, needs to provide hostage original and effective identity card of self of borrower, household register proof of self of underage person and effective identity card of guardian and the legal document of proving guardian relation. Usually it is not suitable to accept pledge under the name of underage person.

3) Proof of agreeing pledge by the owner of hostage.

(3) To take the drawing certificate of deposit with reserved seal or code as pledge, the pledgor must provide seal or code to the bank of issuing loan; to take drawing certificate of deposit with effective identity proof, the pledgor should turn to draw with reserved seal or code, otherwise the bank has the right to refuse to issue the loan.

After the operator knows the content of filled in loan application is no problem, should receive the hostage of the borrower provided by the borrower, issues Personal pledge receipt of Jilin Jiutai Rural Commercial Bank, (see attachment 5-6-2), two copies, one hands over to the borrower, one hand over to the operation department for keeping.

2.2 Investigation verifying

1. Investigation verifying

After loan acceptance, the operator should have Investigation verifying immediately, the content and method of investigation is as follows:

(1) Whether the application papers are integrity;

(2) Whether application loan amount and period are matching each other with the amount and period of providing hostage;

(3) Whether the key element of hostage is coincidence with  resident identity card (household register), and other effective identity certificate;

(4) Whether the copies of resident identity card is coincidence with original; whether the original is legal, effective;

(5) Whether the proof opinion expression of agreeing with pledge provided by the owner of hostage is clear, whether hostage amount, period of listed in the pledge proof is coincidence with providing hostage;

(6) Whether the hostage is true, effective. Operator should test and verify true and false of hostage, confirm authenticity of hostage, affirm the hostage whether has already pledge, whether is reported the loss, whether is invalid, whether is stopped payment according to law, whether the providing seal or code is coincidence with the reserved seal or code;

(7) If the pledgor is guardian of owner of hostage, should examine legal document of proving guardian relation, tests and verifies whether the guardian relation is true.

2. Stop payment

2.3.1 After investigation and verifying to the hostage is errorless, credit operator issues Person Pledge Loan Stop Payment Notice of Jilin Jiutai Rural Commercial Bank (see attachment 5-6-3) two copies, after the person in charge signed name, send to the operation branch to handle stop payment procedure, after having effective stop payment, credit operator should take back stop payment notice receipt (see attachment 2-7-4). The keeping of hostage refers to the related demand of Credit Guarantee.

2.3 Examination and examination and approving

2.3.1 Compliance examination

Examinant should have compliance examination to the following content:

1. Whether the qualification and condition of the borrower possesses;

2. Whether the papers provided by the borrower are true, complete, compliance;

3. Whether loan amount and period are matching each other with the pledge goods amount and period;

4. Whether has made effective stop payment to pledge goods;

5. Other matters needed to examine.

2.3.2. Examination and approving

The main basis of examination:

1. The Related demands of loan authorization of Jilin Jiutai Rural Commercial Bank.

2. Loan papers and examination opinion of credit operation department.

For the examination and approving to agree with loan, inform the borrower to sign loan contract.

For the examination and approving to not agree with loan, the operator will take the hostage as releasing stop payment and together with the papers returning to the borrower in time, recover personal pledge loan receipt and stamp “become invalid” seal, at the same time complete explanation work.

2.4 Issue

2.4.1 Sign loan contract and pledge contract

After the loan examination and approving, the operator should sign XXX Loan Contract with borrower, and Personal Pledge Contract In time.

2.4.2 Practice issuing conditions

Before loan issuing, loan bank has got pledge document of title, and has already handled the pledge registering procedures.

2.4.3 Loan issuing and payment

After the loan conditions have been practiced, the operator should issue the loan in time, the payment mode will be according to the Personal Loan Business Basic Operation Procedure to carry out.

2.4.4 Standing book registration

After the loan payment, credit operation department should register standing book.

2.5 Supervising of hostage

1. During pledge period, the opening bank is not allowed to handle reporting the loss for the hostage, or releasing stop payment; if pledgor applies for reporting the loss, the handling bank has the right to terminate loan contract, and asks the borrower repaying loan capital and interest. If the handling bank does not get paying off, then could perform pledge right.

2. The handling bank should manage pledge goods properly and reserved seal and code provided by pledgor. Because of keeping not properly to cause loss, damage, the operator will undertake the responsibility.

3. When the loan period expires, the borrower performs debt, or the borrower repays the loan ahead of time, after the pldgor issuing personal pledge receipt, the handling bank should take the pledge goods to return to the pledgor in time.

2.6 Recover

The borrower should repay pledge loan according to the repaying plan of pledge loan contract agreement, and also could repay ahead of time after agreed by Jilin Jiutai Rural Commercial Bank.

2.6 Postponing period

After agreed by Jilin Jiutai Rural Commercial Bank, pledge loan could be handled postponing period one time, but the limit of postponing period could not be exceeded expiring date of pledge goods, and he limit of postponing period could not be exceeded the half of original loan period. The loan interest rate will be determined according to the limit of postponing period and plus original loan period, the loan interest before postponing period is still calculate and receive according to the appointed interest rate of pledge loan contract signed by original both loanee and loaner sides.

2.8 Overdue handling

When pledge loan happens overdue, overdue part is from the date of overdue, within 1 month (including 1 month), the loan bank will not handle hostage of pledge, but should calculate and receive penal interest according to the interest rate of the legal penal interest of the nation from the borrower.

Pledge loan overdue over 1 month, the loan bank has the right to handle the hostage of pledge, used for compensation of loan capital and interest according to law. When the hostage not reaches the time limit but used for compensating the loan capital and interest, according to draw ahead of time to handle. The left amount of hostage after compensating, the loan bank should return to the pledgor or change and issue the new certificate of deposit.

2.9 Archives management

Refers to the related regulations of article 3 of chapter 8 of the handbook of Credit Archives Management to handle.

2.10 Other matters

Pledge certificate of deposit, will be calculated interest normally during pledge period, withdrawing (cash) ahead of time or overdue withdrawing (cash), to handle according to the Savings Management Regulations and the related regulations. After the fixed savings certificate of deposit of interest withdraw time deposit is used for pledge, stop withdrawing interest.

If the pledgor lost the personal pledge receipt carelessly, could apply for reporting the loss to the original loan bank and making up.