Common use of Rights and Obligations of the Lender Clause in Contracts

Rights and Obligations of the Lender. 1. The lender is entitled to acknowledge the borrower’s production and operation, financial activities, inventory and usage of loan, and require the borrower to regularly provide such documents, materials and information as financial statements. 2. If adverse actions or situations occurred on the side of borrower that can affect the safety of loan including, but not limited to what have been listed under Item 7,8 and 10 under Section 4, then the lender can stop distributing the loan or collect the loan in advance. 3. According to this agreement, if the principal, interest, compound interest and other expenses payable by borrower are collected or collected in advance, lender can directly withhold from any accounts of borrower. 4. When the amounts paid by borrower can not pay off the payables under this agreement, lender can use this amounts to pay principal, interest, penalty interest or expense. 5. If borrower can not perform its obligation of repayment, lender can disclose publicly the action of breach by borrower. 6. According to the agreement, lender should distribute the loan at full value on schedule.