SME Financing Agreement China Minsheng Bank Wenzhou Branch
Exhibit 10.4
China Minsheng Bank Wenzhou Branch
Party A: Huadi Steel Group Limited (the “Borrower”)
Address: 0000 Xxxxxxxxx Xxxxxx, Xxxxxxx District, Wenzhou, PRC
Legal representative: Xx Xxxx
Party B: China Minsheng Bank Wenzhou Branch (the “Lender”)
Address: 0 Xxxxxxxxx Xxxx, Xxxxxxx District, Wenzhou, PRC
Contact person: Xxxx Xx
Rider
Article 1. Line of credit: RMB 14,900,000
Article 2. Term: From April 25, 2019 to April 25, 2020
Article 3. Account number: ---
Article 4. Security interest:
| Name of Guarantor | Agreement No. | Agreement Name | ||
| Huadi Steel Group Limited | --- | Collateral Agreement | ||
| Huadi Steel Group Limited | --- | Collateral Agreement | ||
| Huadi Steel Group Limited | --- | Collateral Agreement | ||
| Taizhou Huadi Co., Ltd. | --- | Collateral Agreement | ||
| Xx Xxxx, Xxxxxx Xxxx and Juepeng Wang | Collateral Agreement |
General
| 1. | The maximum credit amount that Party A can apply to Party B during the term of the maximum credit line shall be stipulated in Article 1 of the Rider. |
| 2. | The credit line refers to the amount of the guarantee and the equivalent of the guarantee, that is, the equal amount of financing used by the third party other than Party A or Party A to pay the deposit and its equivalent does not occupy the above amount. |
| 3. | The use of proceeds shall include but not limited to the following: |
| (1) | Working capital loan |
| (2) | Bank acceptance draft |
| (3) | Commercial draft discounting |
Working Capital Loan Agreement
| 1. | Loan interest rate is negotiated upon each withdrawal. |
| 2. | If Borrower fails to repay the loan on time, Lender has right to charge Borrower the penalty interest which will be calculated as the penalty interest rate times the number of days due. |
The penalty interest rate = the interest rate specified in this contract plus 50% of the interest rate
| 3. | Borrower shall repay all the loan principal at one time before the contract maturity date. |
| 4. | If Borrower wants to repay the loan prior to the maturity date, Borrower shall notify Borrower in writing 10 business days in advance. Upon approval of Loaner, such written application cannot be revoked. |
| 5. | If Borrower uses the loan in violation of the purpose of this agreement, Loaner has right to terminate the agreement and charge Borrower the penalty interest which will be calculated as the penalty interest rate times the number of days due. |
| 6. | The penalty interest rate = the interest rate specified in this contract plus 50% of the interest rate. |
Bank Acceptance Draft
| 1. | Loan interest rate is set upon each application. |
Interest rate = draft amount – discounting interest amount
Discounting interest amount = draft amount * discount rate * discount term
| 2. | If Borrower breached the agreement, Lender has right to charge Borrower the penalty interest which will be calculated as the penalty interest rate times the number of days due. |
The penalty interest rate = the interest rate specified in this contract plus 50% of the interest rate
