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Corporate Information
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Corporate Internet Banking
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Loan Assets Repurchase & Transferring
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Based an existing loan contract of a policy bank, commercial bank, financial company, trust & investment company or any other financial institution, SPDB may repurchase or transfer the loan assets or the loan contract at an agreed price and tenor. Such service enables the two sides to readjust their loan structure either temporarily or continually so as to optimize the profitability and liquidity of their assets.
| |  Advantages | | |
This service may enhance the liquidity of a financial institution's assets, optimize its loan assets portfolio and improve its profitability.
Trading Counterparts | | |
Any policy bank, state-owned bank, joint-stock commercial bank, city commercial bank, foreign bank, financial company and trust & investment company will be SPDB's potential trading counterpart for this service.
Loan Assets Transferring with Repurchase | | |
After the Loan Assets Transfer Contract is signed, during the transferring tenor, the transferor takes the loan risk, and the transferee takes the risk of the transferor. On the due date, the transferor shall irrevocably repurchase the loan assets from the transferee.
- Tenor and Rate
The principal of the loan assets shall be transferred at the original value and the transferring tenor shall not exceed the original loan tenor. The rate is to be negotiated by both parties and is usually between the Money Market price of the same tenor and the original loan rate. - Procedure
(1) Both sides negotiate and settle down on the amount, tenor, rate, payment in advance and payment method etc. and sign the Loan Assets Transfer (with Repurchase) Agreement.
(2) The transferee pays the loan principal to the transferor according to the agreement in a timely manner.
(3) During the transferring tenor, the transferor pays the loan interest to the transferee according to the agreement and manages the loan;
(4) On the due date, the transferor repurchases the loan from the transferee.
(5) If the transferor fails to repurchase the loan on the due date, the transferee can claim against the borrower and the guarantor for reimbursement and reserve the right to claim against the transferor for the repurchase. Loan Assets Transferring without Repurchase | | |
After the Loan Assets Transfer Agreement is signed, starting from the transferring date, the transferee takes all the risk, responsibilities and obligations under the original loan contract, and the transferor no longer takes any risk involved with the loan. - Tenor and Rate
The principal of the loan may be transferred either at a discount, or at par value or at a premium between the two sides. The transferred interest rate is basically the original loan rate and the transferee may pay loan commission fee and/or other fees and charges.
- Procedure
(1) The two sides negotiate and settle down on the transfer amount, rate, commission fee, and document etc. and then, sign the Loan Assets Transfer Agreement.
(2) The transferee pays the loan principal to the transferor according to the agreement in a timely manner.
(3) After the transfer, the transferee takes the loan risk by his own. The loan is then managed by the transferee. Or, the transferee may entrust the transferor to manage the loan.
(4) When the loan is due, the transferee requests the borrower to pay back the principal and interest.
(5) If the borrower fails to make payment on the due date, the transferee claims against the borrower and the guarantor for reimbursement.
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