The service involves BOCOM and its counterparts’ transfer of a single or multiple credit assets between each party according to a contract entered into. After the buyer and seller have finished credit asset transfer in the agreed manner, the buyer will obtain all the rights in relation to loan agreement, guaranty and insurance under the transferred credit loan assets, and at the same time, bear all the credit risk of the original borrower.
The service opens up credit business channels, aids in adjusting credit loan structure, improve asset liquidity and extend the scope of inter-bank cooperation.
Condition for application
(1) The transaction parties shall be financial institutions duly incorporated and qualified for dealing in loan businesses by regulatory authorities;
(2) The assets to be transferred shall be based on creditor’s rights and other subordinate rights arising from loans to non-financial institutions against facility granted.
(1) Both parties should review each others’ business performance in accordance with the internal procedure after signing an intent of cooperation;
(2) The two parties should sign a Credit Asset Transfer Contract;
(3) Pay the consideration for the asset to be transferred and transfer fee;
(4) The original borrower, guarantor and insurer should be informed of the deal in the agreed manner;
(5) Exercise the post-lending management as agreed to by both parties.