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Commitment Letter

Introduction

Irrevocable loan commitment, also called virtual loan commitment, refers to the loan commitment which is legally binding and our bank cannot revoke optionally without customers' consent. During the its effective period, our bank is all ready to issue loans in accordance with the term, amount and interest rate agreed by both sides to meet the customers' needs.

Revocable loan commitment, also called marketing loan commitment, refers to the kind of unilateral written commitment with additional condition issued by our bank. During the effective period, our bank is all ready to issue loans in accordance with the terms agreed by both parties to meet customers' needs. During such period, if the additional conditions are not fulfilled, our bank is entitled to revoke the corresponding commitment.

Functions

The purpose of Irrevocable loan commitment is to officially promise customers that our bank will issue loans and comply with specific loans terms.

The purpose of revocable loan commitment is to display our determination for credit projects to meet customers' needs. Our bank doesn't undertake any substantial liabilities for credit.

Target Customers

The credit target of revocable loan commitment should accord with the relevant requirements of national industrial policies.

Application Qualifications for Irrevocable loan commitment

The credit target of irrevocable loan commitment should accord with the relevant requirements of national industrial policies.

The target industry should accord with the relevant requirements of national industrial policies, the policies of Bank of China on credit, industry and customers. Loan commitment should not be granted to projects prohibited by our bank's credit policies.

Application Qualifications for Revocable Loan Commitment

1-The targeted industry belongs to our bank's encouraging industries, such as electric power, telecom, petroleum, petrochemical, transportation(aviation included), tobacco, automobile manufacture and urban infrastructural construction;

2-The targeted customers should rank A-level above (A-level included) in our bank's credit rating;

3-The credit target should accord with the relevant requirements of national industrial policies; and the credit granting, industry and customer policies of Bank of China.

Charges

Bargaining

Process

1-Sales account manager inquires customers' needs and gains related information;

2-The credit application should be examined in accordance with our bank's interior vetting process (Note: the vetting process for irrevocable loan commitment is much stricter than that for revocable loan commitment.);

3-Upon our approval, the loan commitment will be issued;

4-After the issuance, the corporate business sector of our bank will follow up the customer and its project continually;

5-On receiving the customer's formal application, our bank will examine the credit application in accordance with the loan business process.

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