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Loan Contracts

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Chapter Summary

This chapter on loan contracts contains several articles concerning general provisions, loan contracts in which a financial institution acts as the lender and contracts of loan in which a natural person acts as a lender. A loan contract shall generally contain clauses such as the category of loan, the kind of currency, the purpose of use, the amount, the interest rate and its calculation, the release of fund under the loan, the term, the repayment of the loan, the payment of interest, and the liabilities for breach of contract. Commercial banks, credit unions, policy banks, and other financial institutions and their subsidiaries, if they have approval from the State financial supervision authority, a permit for conducting loan business, and a business license, may establish the loan contract as the lender.

Keywords: lender; loan contracts



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