Loan Disbursement and Payment Sample Clauses
The Loan Disbursement and Payment clause outlines the procedures and conditions under which loan funds are provided to the borrower and how repayments are to be made. It typically specifies the schedule, method, and prerequisites for disbursing the loan amount, such as completion of documentation or satisfaction of certain conditions. Additionally, it details the repayment terms, including due dates, payment methods, and any applicable interest or fees. This clause ensures both parties have a clear understanding of the financial flows, reducing the risk of disputes and facilitating smooth loan administration.
Loan Disbursement and Payment. (1) Drawdown conditions. The Borrower may request drawdown only if, among others:
1) The Borrower has not breached its obligations and undertakings under this Contract;
2) The Borrower’s identity and financial condition have not materially deteriorated and there is no circumstance that may endanger the loan safety;
3) No event has occurred that may adversely affect the Lender’s rights and interests in relation to this loan;
4) Any required guarantee arrangement (if any) has been provided and remains valid, and the guarantor’s ability/value has not materially changed to the disadvantage of the Lender;
5) The Borrower has opened relevant account(s) as required by the Lender;
6) Other conditions required by the Lender: _______________________. The Borrower understands and accepts that its drawdown requests may be affected by national policies, macro controls and regulatory requirements.
Loan Disbursement and Payment. 2.1 The Borrower must satisfy the following conditions precedent for drawdown. Otherwise, the Lender shall have no obligation to disburse any funds, unless the Lender agrees to disburse in advance:
(1) For non-credit loans, the Borrower has provided the required guarantees and completed all related guarantee procedures;
(2) No default has occurred under this Agreement or other agreements between the Borrower and the Lender;
(3) The supporting documents for the loan purpose are consistent with the agreed purpose;
(4) Other documents required by the Lender have been submitted.
2.2 The written documents provided by the Borrower for drawdown must be originals.** If originals cannot be provided, copies stamped with the Borrower’s official seal may be submitted with the Lender’s consent.
2.3 The Borrower shall submit a drawdown notice to the Lender at least 5 banking days in advance. Once submitted, the drawdown notice cannot be revoked without the Lender’s written consent. The Borrower shall affix its official seal or financial seal on the loan note in accordance with the reserved seal of the designated disbursement account. **The Borrower hereby confirms that if the reserved seal includes both the official seal and the financial seal, the loan note shall be valid if either or both seals are affixed.**
2.4 If the Lender approves the Borrower’s drawdown request, the Lender shall disburse the loan to the designated Borrower account. Such disbursement shall constitute the Lender’s fulfillment of its loan disbursement obligation under this Agreement.
2.5 In accordance with regulatory requirements and the Lender’s internal policies, loans exceeding a certain amount or meeting other conditions shall adopt the Lender’s entrusted payment method, whereby the Lender disburses the loan to the payee specified in the Borrower’s drawdown application and payment entrustment. To this end, the Borrower shall sign an entrusted payment agreement with the Lender as an attachment to this Agreement and open or designate a dedicated account with the Lender for entrusted payment purposes.
Loan Disbursement and Payment. 1. Prerequisite for First Withdrawal The first withdrawal by Party A shall fully meet the following conditions: [/]
2. Prerequisite for each withdrawal For each withdrawal (including the first withdrawal) under this contract, Party A must also meet the following conditions:
(1) Party A has not violated the provisions or agreements of this contract, guarantee documents, and other relevant documents.
(2) The guarantee documents remain valid and there have been no adverse changes in the guarantee that Party B believes may be detrimental to the realization of its creditor’s rights.
(3) The collateral or pledged property under the guarantee documents has not been sealed, and the maximum amount of guarantee has not been determined as a debt.
(4) The financial condition of Party A has not undergone any adverse changes that may endanger, delay or prevent its performance of obligations and responsibilities under this contract and guarantee documents.
(5) Party A has signed or provided Party B with the agreed or reasonably requested documents.
(6) Party A has opened relevant accounts in accordance with the provisions of this contract or the requirements of Party B.
(7) Under the “Borrow and Repay” mode, Party A shall also meet the access conditions for credit products of small and micro enterprises set by Party B and the relevant system requirements of the “Borrow and Repay” business function of small and micro enterprises. Party A has not misappropriated Party B’s loans and has no outstanding non-performing loans, outstanding advances or outstanding interest arrears in the credit information of the People’s Bank of China. Party A’s actual controller or its guarantor currently has no loans overdue in the credit information of the People’s Bank of China, and Party A is not a borrower of restructured loan business.
(8) There are no laws, regulations or regulatory requirements that prohibit or restrict the disbursement of loans under this contract.
(9) [/]
(10) Other conditions requested by Party B.
3. Withdrawal plan
(1) In the non “Borrow and Repay” mode, Party A shall make withdrawals in accordance with the plan described in paragraph [A] below.
▇. ▇▇▇▇▇▇▇▇▇▇ plan The planned withdrawal date shall be a bank working day. If the planned withdrawal date is not a bank working day, it will be adjusted to the previous bank working day.
B. [Party A shall make withdrawals as needed through electronic channels such as online banking of Party B]
(2) Under the “Borrow and Repa...
Loan Disbursement and Payment. Each of the Co-borrowers agree to accept the Bank’s management with respect to the loan disbursement and payment in accordance with the following terms:
a) all loan proceeds subject to Self-controlled Disbursement shall be credited into Loan Disbursement Account;
b) each of the Co-borrowers shall procure Loan Disbursement Account be opened solely for loan disbursement and payment and any sums of money credited into Loan Disbursement Account in the form of loan proceeds or not shall be paid in accordance with terms and conditions hereof;
c) loan proceeds shall not be paid to any other account of the Co-borrowers with the Bank or any other financial institutions whether or not Consigned Disbursement or Self-controlled Disbursement is to be applied;
d) Consigned Disbursement shall be adopted for any payment using loan proceeds exceeding 5% of total investment amount or five(5) million RMB equivalent whichever is smaller;
e) the Co-borrowers shall provide the Bank with summary report of details with respect to loan proceeds utilization and upon the enquiry of the Bank further present any invoices commercial contracts and other documents in relation to payment referred to in the report for the bank to verify against.
Loan Disbursement and Payment. 2.1 Drawing down of the loan by the Borrower shall satisfy the drawdown conditions precedent set out below. Otherwise, unless where an advance loan disbursement is agreed to by the Lender, the Lender shall not be obligated to disburse any funds to the Borrower.
Loan Disbursement and Payment. The Lender shall directly disburse each Loan’s proceeds to the specific payee through the Loan Account (a RMB account of the Borrower opened at the Lender’s branch) before 4 p.m. on the Utilization Date of such Loan in accordance with the instructions of the Payment Authorization Letter. The Lender has the right (but no obligation) to rely on and act upon any seemingly complete Payment Authorization Letter, and relevant documents or information, even if such Payment Authorization Letter, relevant documents, or information are not true, not properly signed, or not accurate in other respects. After the Agreement Date, the Lender is entitled to terminate the disbursement and payment of related Loan’s proceeds if the following occurs:
(1) The credit standing of the Borrower deteriorates; or
(2) the Borrower does not pay the Loan fund as per this Agreement.
Loan Disbursement and Payment. I. Preconditions for Loan Disbursement Unless Party B waives them in full or in part, Party B is obligated to disburse the loan only if all the following preconditions are continuously met:
1. Party A has completed all approval, registration, delivery, insurance, and other statutory procedures related to the loan under this contract.
2. If guarantees are provided for this contract, the guarantees meeting Party B’s requirements have taken effect and remain valid.
3. Party A has opened accounts for drawdowns and repayments as required by Party B.
4. No event of default as specified in this contract has occurred on the part of Party A.
5. No circumstances that may endanger Party B’s creditor’s rights as specified in this contract have occurred.
6. Relevant laws, regulations, or authorities do not prohibit or restrict Party B from disbursing the loan under this contract.
7. Party A’s financial indicators continue to meet the requirements of Annex 2 “Financial Constraints.”
8. Party A has submitted relevant materials before loan disbursement as agreed in this contract.
9. All materials provided by Party A to Party B are legal, genuine, complete, accurate, and effective, and comply with other requirements set forth by Party B.
10. Other preconditions:________________________________________.
II. Loan Utilization Plan Loan utilization refers to Party B disbursing the loan funds to the loan disbursement account based on Party A’s application and the contract’s terms. The loan utilization plan is determined as the following term 1 :
1. The loan utilization plan is as below;
(1) Date: May 7, 2025, amount: RMB 3,000,000;
(2) Date: _________, amount: ___________;
(3) Date: _________, amount: ___________;
(4) Date: _________, amount: ___________;
(5) Date: _________, amount: ___________;
(6) Date: _________, amount: ___________;
2. The loan utilization plan is as below;
(1) From _________ to _________, amount ___________;
(2) From _________ to _________, amount ___________;
(3) From _________ to _________, amount ___________;
(4) From _________ to _________, amount ___________;
(5) From _________ to _________, amount ___________;
(6) From _________ to _________, amount ___________;
3. Party A may apply for disbursements at any time based on its actual funding requirements.
Loan Disbursement and Payment