Product definition:

Bridging loan is a kind of stopgap financing business offered by Jiutai Rural Commercial Bank to the borrowers to meet their periodical fund demands when their capitals out of clear sources have not fully funded, which shall be repaid with their capitals out of clear sources and used for the same purpose of the capitals out of clear sources.

Intended use of the loan:

The intended use of bridging loan shall be consistent with the use of the capital out of clear sources,  and shall not be used in the project constructions not according with national industrial, land, environment protection, natural resources and city planning policies; equity capital investment; investments on negotiable securities violating national regulations, future goods and financial derivative products; land-transferring fees paid by real estate developers; other uses explicitly prohibited by the country.

Application conditions:

1. The borrowers’ businesses shall be established according to law;

2. With clear and legal purposes for loan;

3. The borrowers’ production and business operation shall be lawful;

4. The borrowers shall have sustainable economic capacity, with legal repaying sources;

5. The borrowers shall have good credit status, without seriously poor credit record;

6. Borrowers shall accord with the following terms, in Addison to the above conditions:

A.Bridging loan by direct financing:

(1)  Borrowers can issue shares, their applications for convertible bonds, enterprise bonds, corporate bonds, medium-term notes and short-term financing bonds have been approved (including approval, obtaining permission for reference or registration) by corresponding competent departments.

(2) The posts of the mentor to be listed, sponsor and lead underwriter shall be held by the institutions accepted by Jiutai Rural Commercial Bank, among them Jiutai Rural Commercial Bank shall take part in the consignment sales of medium-term notes and short-term financing bonds.

B. Bridging loan with financial funds

(1) The financial funds for use of project constructions, the investment project has been included in the government investment program, the construction project is within the government finance support capacity and in history the government financial funds were always fully funded on schedule;

(2) The borrowers are documented to be competent to gain the financial funds. The borrowers have performed the conditional obligations to gain the financial funds and have implemented the necessary measures to use the financial funds;

(3) The use of financial funds do not have the limitation to forbid repayment of bank loans

C. Bridging loan of fixed assets loan type

(1) The fixed assets loans arranged by the borrowers have been implemented effectively (loan contracts have been signed or formal loan commitments have been made), meanwhile, the following conditions shall be satisfied:

1)  As for the project needed to be examined and approved, the proposal and feasibility report of the project has been given a written reply by the competent departments; as for the project needed to be ratified, the pre-approval has been given by the competent departments;

2) The borrowers accord with and will be able to satisfy the loan conditions required by the implemented fixed assets loan;

3) As for the project that has been started, the necessary commencement procedures shall be lawful and the capital for the early stage of the project has been prepared with normal and matching construction progress;

4) The project capital and bridging loan shall be prepared in advance proportionately.

(2) The fixed assets loan arranged by the borrower has not been implemented effectively, meanwhile, the following conditions shall be satisfied:

1) As for the project needed to be examined and approved, the proposal and feasibility report of the project has been given a written reply by the competent departments; as for the project needed to be ratified, the pre-approval has been given by the competent departments;

2) Investment project belongs to the large and medium sized projects to which priority supports are given by Jiutai Rural Commercial Bank. The fixed assets loan of the project is a syndicated loan led by Jiutai Rural Commercial Bank, which has completed the assessment on the project.

3) As for the project that has been started, the necessary commencement procedures shall be lawful and the capital for the early stage of the project has been prepared with normal and matching construction progress;

4) The project capital and bridging loan shall be prepared in advance proportionately.

D. Bridging loan with finance lease

(1) The finance lease shall be conducted by the leasing company approved by Jiutai Rural Commercial Bank.

(2) The borrower has signed the finance lease contract with the leasing company.