What Is the Fair and Accurate Credit Transactions Act?

The loan legal system is a general term for various laws, regulations, and policies designed to regulate loan relationships. The loan legal system has adopted a series of written regulations to stipulate the loan subject, the loan process, and the regulatory agencies to achieve the purpose of regulating credit relations, enhancing economic exchanges, and ultimately promoting the orderly development of economic activities.

Loan legal system

The loan legal system is a general term for various laws, regulations, and policies designed to regulate loan relationships. Loan legal system passed regulations

The object of adjustment of loan rules.

(1) General rules of loans, loans are the most basic of commercial banks

Loan application and approval.

(1) Loan application. A borrower who needs a loan should apply directly to the host bank or the handling agency of another bank. The application should include the basic contents such as the amount of the loan, the purpose of the loan, the ability to repay, and the method of repayment.

(2) Credit evaluation. The lender shall evaluate the credit rating of the borrower according to the evaluation items of the borrower's leader, economic strength, capital structure, performance, economic benefits and development prospects.

(3) Loan investigation and approval. After accepting the application of the borrower, the lender shall investigate the credit rating of the borrower and the legality, security, and efficiency of the borrowing, verify the situation of the collateral, pledge, and guarantor, and determine the risk of the loan. After the above investigation, the lender verifies and evaluates the information provided by the investigator according to the loan management system for loan separation and grading approval, reviews the risk of the loan, proposes review opinions, and approves the loan in accordance with prescribed procedures and authorities. Application.

Performance of loan contracts.

(1) Borrowing contract. All lenders should sign a loan contract. The contract should include at least the basic content of the type of loan, the purpose of the loan, the amount of the loan, the interest rate, the repayment period, the repayment method, etc., and the borrower and the borrower should be listed in detail. Rights and obligations, liability for breach of contract, and other matters that the parties deem necessary to be agreed upon.

(2) Guarantee contract. The guaranteed loan shall be signed by the guarantor and the lender, or the guarantor shall include the guarantee clauses negotiated with the lender in the loan contract, affix the official seal (private seal) of the guarantor, and the guarantor or its legal representative or authorized agent People sign names. Mortgage loans and pledge loans should be signed by the mortgagor, pledger and the lender. If a mortgage contract or pledge contract is required by law, registration procedures shall not be omitted.

(3) Loan operations. The lender shall release the loan on time and on a wholesale basis as agreed in the loan contract. For whatever reason, the lender shall pay the liquidated damages if it does not release the loan on time as agreed in the contract; the borrower shall also pay the liquidated damages if it does not use the loan in accordance with the terms of the contract.

(4) Post-lending inspection and loan collection. After issuing a loan, a financial institution shall conduct a follow-up investigation and inspection of the borrower's execution of the loan contract and the borrower's operating conditions. When the term expires, the principal and interest of the loan are recovered in a timely manner. The borrower shall return the principal and interest of the loan in full within the time stipulated in the loan contract.

Regulation of non-performing loans.

(1) Article 34 of the General Rules on Loans states that non-performing loans refer to bad debt loans, sluggish loans and overdue loans. Among them, bad debt loans refer to loans recognized as unrepayable according to the relevant regulations of the Ministry of Finance and classified as bad debts; sluggish loans refer to loans that have not been repaid for over 2 years (including due after the rollover) according to relevant regulations of the Ministry of Finance, or Although the loan is not overdue or less than the specified number of years, but the production and operation have been terminated and the project has been suspended (excluding bad debt loans); overdue loans refer to loans that have not been repaid due to the maturity of the loan contract (including due after rollover) Loan loans and bad loans).

(2) Loan quality grade. According to the provisions of the Basel Agreement on the classification of commercial bank loans and the credit asset classification of the People's Bank of China, credit assets are classified into five categories: normal, concerned, subordinate, suspicious and loss, and the latter three subordinated, suspicious and lost assets are bad. assets.

(3) Registration of non-performing loans. The non-performing loans are provided by the accounting and credit departments, and the audit department is responsible for reviewing and determining according to the prescribed authority. The lenders should fill out the non-performing loan situation table on a quarterly basis. At the same time as reporting to the superior department, to the CBRC and local branches of the People's Bank mechanism.

(4) Evaluation of non-performing loans. Financial institutions' bad debt loans, sluggish loans, and overdue loans must not exceed the ratio prescribed by the China Banking Regulatory Commission and the Central Bank. Financial institutions should issue specific indicators for their branches to assess bad debt loans, sluggish loans, and overdue loans to urge all departments to prevent loan risks. .

(5) Collection of bad loans and write-off of bad loans. The credit department of a financial institution is responsible for the collection of non-performing loans, and the audit department is responsible for checking the collection. Financial institutions must withdraw bad debt reserves in accordance with relevant financial regulations, and write off bad debt loans in accordance with the conditions and procedures for writing off bad debts. Without the approval of the State Council, financial institutions shall not waive the borrower's obligation to repay the loan; without the approval of the State Council, no unit or individual may force the lender to waive the borrower's obligation to repay the loan.

Management of loan claims preservation and settlement.

(1) The creditor's rights of the loan shall not be eliminated by the unilateral acts of the borrower. The borrower must not violate laws and regulations, use mergers, bankruptcy, or shareholding system transformation and other opportunities to evade loan debts, and must not use contracting or leasing methods to evade the lender's credit supervision and repayment obligations.

(2) Debt restructuring. Before the borrower repays the loan, the lender has the right to participate in the debt restructuring activities of the borrower in the process of merger, bankruptcy or joint-stock reform, to participate in the liquidation of the borrower or to the creditor's meeting. Implement specific matters related to debt repayment and reach a written agreement.