发布文号: Order of China Banking Regulatory Commission（No.4 [2007]）
The Measures for Hypothecated Loans on Time Deposit Certificates of Individuals, which were adopted at the 55th chairman's meeting of China Banking Regulatory Commission （hereinafter referred to as CBRC） on December 28th, 2006, are hereby promulgated and shall come into force as of the date of promulgation.
Chairman Liu Mingkang
July 3rd, 2007
Measures for Hypothecated Loans on Time Deposit Certificates of Individuals
Article 1 For the purpose of strengthening the administration of hypothecated loans on time deposit certificates of individuals, these Measures are formulated in accordance with the Law of the People's Republic of China on Commercial Banks, the Guarantee Law of the People's Republic of China and other relevant laws and administrative regulations.
Article 2 The term "hypothecated loans on time deposit certificates of individuals" （hereinafter referred to as hypothecated loans on deposit certificates） refers to the loan business whereby a borrower obtains a certain amount of RMB loan from a commercial bank （hereinafter referred to as loaner） by hypothecating his outstanding time deposit certificate and then repays the principal and interest of the loan when it comes due.
Article 3 The term "loaner" as mentioned in these Measures refers to the natural persons, legal persons and other organizations which have corresponding civil capacities within the borders of the People's Republic of China.
A foreigner, a stateless person or a citizen of Hong Kong, Macau or Taiwan needs to have resided within the People's Republic of China and have a fixed residence and a fixed occupation in order to become a borrower.
Article 4 Time deposit certificates which can be used as pledges include outstanding lump-sum deposit and lump-sum withdrawal certificates, interest withdrawal on deposited principal certificates, foreign currency time deposit certificates and other vouchers bearing the nature of time deposit.
Any deposit certificate whose ownership is controversial, which has been used as a guarantee, has been reported as lost or become invalid or the payment for which has been stopped according to law may not be used as a pledge.
Article 5 Where a borrower applies for a small-sum loan by hypothecating a time deposit certificate under his/its own name, the deposit bank may delegate any of its business outlets handling saving business to directly accept the application and grant the loan.
The head office of each commercial bank shall determine the amount of the aforesaid small-sum hypothecated loan on deposit certificate in light of the actual situation of the bank.
Article 6 Where the deposit certificate of a third party is used as a pledge, the loaner concerned shall formulate rigorous internal procedures for seriously examining the authenticity, legality and effectiveness of the deposit certificate so as to prevent the occurrence of flaws in right. Where a borrower applies for a hypothecated loan on a deposit certificate for money publicly raised by the borrower from unspecific natural persons, legal persons and other organizations, no loaner may grant any loan to him/it.
Article 7 Deposit certificate of a hypothecated loan may be used to guarantee the principal and interest of the loan, penalty interest, damages, penalty and expenses for the obtainment of pledge.
In principle, money to be loaned on a deposit certificate shall be no more than 90% of the principal of the deposit certificate （as for a foreign currency deposit, the principal shall be the amount of RMB converted on the foreign exchange rate disclosed on that day）. Each bank may reasonably determine the amount of a loan on the basis of the guarantee coverage of the hypothecated deposit certificate, but basically the amount of each deposit certificate shall cover the principal of the loan to be granted.
Article 8 The term of a hypothecated loan on deposit certificate may not exceed the date of maturity of the hypothecated deposit certificate. If the loan is based on more than one deposit certificates, the term of the loan shall be determined according to the earliest date of maturity, except for loans granted by installments.
Article 9 The interest rate of a hypothecated loan on time deposit certificate shall be determined in accordance with the provisions of the state on interest rate administration, and the methods for interest calculation and settlement shall be determined by both parties of the loan upon negotiation.
Article 10 Before the maturity date of a loan, the borrower may apply for extending the term. While the loaner shall reasonably determine the time limit to the allotted loan in light of the credit status and the actual production and operation demands of the borrower and in accordance with the principle of prudent management, but the accumulated term of the loan may not go beyond the maturity date of the hypothecated deposit certificate.
Article 11 Interests on a hypothecated deposit certificate shall be calculated on the normal deposit interest rate during the depositing period. As for an interest withdrawal on deposited principal certificate, no interest may be withdrawn since the date when it is hypothecated.
Article 12 Where a deposit certificate for which withdrawal shall be made on the strength of the specimen seal/signature or password is required, the pledger shall provide the specimen seal/signature or password to the loaner bank. Where a deposit certificate for which withdrawal shall be made on valid identity certificate, the pledger shall change it to on specimen seal/signature or password, otherwise, the bank has the right to refuse granting the loan.
Where a deposit certificate is hypothecated for a loan, the pledger shall entrust the loaner to handle the formalities for deposit certificate confirmation and stopping payment.
Article 13 For a hypothecated loan on deposit certificate, the loaner and the pledger shall conclude a written contract of pledge or the loaner, the borrower and the pledger shall stipulate in the loan contract pledge clauses as required by these Measures.
Article 14 A pledge contract shall include the following contents:
1. name, domicile and business place of the pledger, the borrower and the pledgee;
2. category, amount, term, interest rate and purpose of the secured loan and number of the loan contract;
3. number of the time deposit certificate and the category of the deposit, account name, bank issuing the deposit certificate, amount of the deposit, term and interest rate of the deposit;
4. guarantee coverage;
5. confirmation of the time deposit certificate;
6. custodial responsibility of the time deposit certificate;
7. mode for obtaining the pledge;
8. liabilities for breach of contract;
9. ways for dispute settlement; and
10. other items that shall be stipulated as deemed as necessary by the parties concerned.
Article 15 During the period of the continued existence of a hypothecated loan, no one may dispose of the hypothecated deposit certificate without authorization.
Article 16 The pledger and the loaner of a hypothecated loan may stipulate in the pledge contract that if the borrower fails to fulfill the contract according to law, the loaner may directly cash the deposit certificate to obtain the pledge and that if the date when the deposit certificate comes due is posterior to the date when the loan comes due, the loaner may continue keeping the hypothecated deposit certificate and cash it on the date when it comes due to obtain the pledge.
Article 17 The bank issuing the deposit certificate （hereinafter referred to as deposit bank） shall handle the formalities for confirming the deposit certificate and for stopping payment on the basis of the pledger's request and the pledge contract, and properly keep the relevant documents and materials.
Article 18 The loaner shall properly keep the hypothecated deposit certificate and the specimen seal/signature or password provided by the pledger. If it is lost or damaged for inappropriate keep, the loaner shall bear corresponding responsibilities.
Where the hypothecated deposit certificate is lost, damaged or destroyed during the period when it is hypothecated, the loaner shall notify the borrower and the pledger immediately and apply to the deposit bank for reporting loss and reissuing a new one jointly with the pledger. The reissued one shall continue being the pledge.
Application for reporting the loss of the hypothecated deposit certificate shall be made in written form. Under a special circumstance, the application may be made orally or in the form of a letter, but formalities for reporting the loss in written form shall be handled in another initiative within 5 workdays.
To apply for reporting loss, in addition to the application materials submitted by the pledger as required, the loaner shall still submit a photocopy of its business license and a copy of the pledge contract.
If the report of loss is approved, the amount indicated in the original time deposit certificate and the interests incurred shall continue as a pledge.
During the period of pledge, without the consent of the loaner, the deposit bank may not accept the report of loss filed by the depositor.
Article 19 Where, for example, the pledger dies during the period of the continued existence of the hypothecated loan, his legal successor shall go through the formalities for transferring the title to the deposit and the formalities for inheritance according to law, and continue fulfilling the pledge contract concluded by the original pledger.
Article 20 Where the borrower fulfills the obligation upon the expiration of the loan term or repays the hypothecated loan ahead of schedule, the loaner shall return the hypothecated time deposit certificate to the pledger and go through the formalities for writing-off at the deposit bank in a timely manner.
Article 21 After the borrower pays off the principal and interest of the loan in the way required by the loan contract, the pledger shall take back the hypothecated deposit certificate upon the strength of the trust receipt of the deposit certificate. If the pledger has lost the trust receipt, the pledger and the borrower shall jointly produce a written certificate and take back the deposit certificate from the loaner upon the strength of the written certificate and their legal identity certificates.
Article 22 In case any of the following circumstances occurs, the loaner may dispose the hypothecated deposit certificate in a way stipulated in Article 16 or any other legal way:
1. the borrower fails to repay the principal and interest of the loan on schedule after the term of the hypothecated loan contract expires;
2. the loaner needs to recover the loan ahead of schedule for the default of the borrower or the pledger;
3. the borrower or the pledger is d bankrupt; or
4. the borrower or the pledger dies and there is no successor to continue fulfilling the contract.
Article 23 Where there is any dispute over the pledge contract or the loan contract, either party concerned may apply to the arbitration organ for mediation or arbitration in a way required or bring a lawsuit to the people's court.
Article 24 Where any deposit bank produces any false individual time deposit certificate or confirmation letter of individual time deposit certificate, it shall be punished in accordance with the provision of Article 13 of the Measures for Punishing Financial Illegal Acts.
Article 25 Where any deposit bank fails to confirm a pledge pursuant to these Measures or any loaner accepts any unconfirmed individual time deposit certificate as a pledge, the CBRC shall give it an admonition, impose a fine of no more than 30,000 yuan, and order it to impose administrative punishments upon the principal person in chare and directly liable persons.
Article 26 Where the loaner of a hypothecated loan fails to return the hypothecated individual time deposit certificate in a timely manner as required after the borrower fulfills the contract or where the deposit bank accepts the depositor's report of loss of the deposit certificate and approves it without obtaining the consent of the loaner, the CBRC shall give an admonition and impose a fine of no more than 30,000 yuan. If any crime is constituted, the relevant personnel shall be subjected to corresponding criminal liabilities by the judicial organ.
Article 27 The head office of each commercial bank may formulate the detailed rules for the implementation of these Measures according to the provisions of these Measures and report them to the CBRC or its dispatched office for record.
Article 28 These Measures shall apply to the hypothecated loans on time deposit certificates of individuals granted by urban credit unions, rural credit unions, village banks, loan companies and fund cooperatives.
Article 29 The power to interpret and revise these Measures shall remain with the CBRC.
Article 30 These Measures shall come into force as of the date of promulgation. Where there is any previous provision conflicting with these Measures, the latter shall prevail.
