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

Rights and Obligations of the Lender. 1. The Lender has the right to understand circumstances related to the Borrower’s production operations, financial activities, inventory levels, and usage of the loan proceeds, and to require the Borrower to submit relevant documents, materials, and information, such as financial statements etc., on a periodic basis. 2. Upon the occurrence of adverse actions or situations on the part of the Borrower that is material enough to affect the safety of the loan, including, without limitation, the actions and situations listed under 7, 8, and 10 of Article 4, the Lender may suspend drawdown of the loan or recall loan amount drawn down earlier. 3. The Lender may withhold and collect from any of the Borrower’s accounts directly when retrieving or retrieving in advance loan principal, interest, default interest, compound interest, and other expenses payable by the Borrower pursuant to this Agreement. 4. Where the amount repaid by the Borrower is not sufficient to pay off the amount payable under this Agreement, the Lender may choose to use such amount to repay any of the principal, interest, default interest, compound interest, or expense(s). 5. If the Borrower fails to perform its obligation of repayment, the Lender may make public disclosure of such breach of contract by the Borrower. 6. The Lender shall issue the loan amount to the Borrower in full as scheduled pursuant to this Agreement.