CREDIT TRANSACTION AGREEMENT
(For Corporations)
To : Korea First Bank
Date : January 8, 2000
Borrower: NewState Capital Co., Ltd.
000-00 Xxxxxx-Xxxx
Xxxxxxx-Xx, Xxxxx
By : Xxxxx Ki Xxx, President
(Corporate seal affixed)
We acknowledge that, in connection with the credit transaction with
Korea First Bank (hereinafter referred to as the "Bank") pursuant to the terms
and conditions of Article 1 below, the terms of standard bank credit transaction
rules shall apply to this transaction and we hereby agree to comply with the
following terms and conditions.
Article 1 (Terms and Conditions)
--------------------------------
Classification:
Kind of Transaction : individual
Amount of Credit : 263 million Won
Date of Disbursement : January 8, 2000
Date of Repayment : August 13, 2000
Interest Rate : Average Deposit Rate + 1.5% p.a
Overdue Interest Rate : 19.0 % p.a
Method of Disbursement : Full amount to be disbursed at the date of
funding Method of Repayment : Full amount outstanding to be paid
at the maturity date
Payment of Interest : Every 30 days from funding
Special Provision on setoff : As to installment savings trust based
loans, in the event the installment payment is not made for a period of four
months, the Bank shall have the right to offset the loan with the trust fund by
giving notice to the borrower even prior to maturity of the loan.
Article 2 (Late Payment)
------------------------
(1) We agree to immediately pay late charges in the event payment of interest or
repayment of installment or principal installment is not made when due.
(2) In the event we fail to repay our debts on the due date or at the expiration
of the transaction hereof or in the event the maturity is accelerated in
accordance with the terms of Article 7 of the Standard Bank Credit Transaction
Rules (for corporations), we agree to pay late charges on the principal balance
of our debts.
(3) As to installment savings trust based loans, we agree to pay interest until
the day before the setoff date ; after the setoff date, we agree to pay late
charges on the principal balance of the loan.
(4) As to loans based on savings or checking account, we agree to immediately
pay late charges on the amount of overdraft.
Article 3 (Calculation of Loan Amount ; Payment Schedule)
---------------------------------------------------------
(1) With respect to loans of installment disbursements, the total amount of
loans shall be shall be calculated based on installment payment schedule and
receipt or other proofs.
(2) With respect to loans with installment amortization, other than equal
installment of principal plans like installment savings trust based loans, etc.,
the Bank Shall deliver payment schedule to the borrower.
Article 4 (Reduction ; Suspension)
----------------------------------
If it becomes necessary due to changes of banking situation or for
the purpose of preserving the Bank's security in the loans, the Bank may, by
notice to the borrower, reduce the line of credit as set forth in Article 1
above or suspend further disbursement. In such an event, we agree to immediately
repay any amount that exceeds the line of credit.
Article 5 (Overdraft)
---------------------
(1) In the event (?) we request for payment in excess of the balance amount in
our savings or checking account, (?) automatic withdrawals from our account are
regularly made in payment of various charges, or (?) we use debit cards, we
agree repay our debts by means of making deposits into our account.
(2) Notwithstanding the provisions of Article 5 (2) above, if a coupon book is
used for repayment of the loan, repayment of the loan shall be made using the
coupon book. Method of transaction, notice, etc, concerning the coupon book
shall be as provided by the Bank
(3) Any deposits into the borrower's account shall be considered to be
automatically applied to the repayment of the loan. (Securities deposited into
the account shall be considered to have been transferred to the Bank as
collateral and shall be applied to the repayment only when they are liquidated.)
(4) Interest and late charges shall be added to the principal amount of loan and
may be withdrawn from the borrower's account or otherwise shall be repaid
immediately.
(5) Any overdraft shall be considered a debt to the Bank and shall be repaid
pursuant to the terms of this Agreement.
(6) We agree to indemnify and hold the Bank harmless for any dishonored
overdraft notes or checks due to reduction or suspension in accordance with
Article 4 above.
(7) The Bank may in its own discretion honor the borrower's overdraft notes or
checks even after the expiration of this transaction if they are issued prior to
the expiration of this transaction and the terms and conditions of this
Agreement shall apply to such a loan.
Article 6 (Fees for Unused Funds)
---------------------------------
If the credit transaction herein is line of credit or foreign
exchange loan, we agree to pay fees for unused funds at the rate established by
the Bank.
Article 8 (Delivery of Blank Note)
----------------------------------
(1) We agree to deliver to you a check or promissory note with blank amount and
due date, with proper endorsement by a guarantor, as security for installment
repayment loan, note discount or line of credit.
(2) The Bank shall have the right to fill out the blanks and enforce its rights
in the event of the borrower's default or acceleration in accordance of Article
7 of the Standard Bank Credit Transaction rules.
(3) If the Bank decides to fill out the blanks pursuant to the terms of Article
7 (1) above, the amount of the note or check shall not exceed the total amount
of the principal, interest, late charges and other ancillary charges.
Article 8 (Currency and Exchange Rate)
--------------------------------------
Foreign currency loan may be repaid in the same currency or won.
Repayment in Won shall be at the exchange rate of telegraphic transfer selling
rate.
Article 9 (Collateral ; Insurance)
----------------------------------
Unless the Bank requires otherwise, we agree to provide the Bank as
collateral the land, building and other improvements of which the loan is used
for construction or installation and insure the Bank as additional insured.
Article 10 (Perfection of Security)
-----------------------------------
(1) In order to secure our debts herein, we agree to establish the Bank's
security interest in the following bank deposit and, accordingly, we have
transferred the deposit certificate to the Bank as additional incurred.
(2) The Bank's security interest as established in Article 10 (1) above shall
include the principal, returns (including any future deposits) and any special
or legal incentive payments..
(3) The Bank's security shall not be affected by extension of terms,
modifications, renewals, division or increase or decrease of amount of the
deposit. Further, in case of trust, the Bank's security interest shall cover
returns of the trust notwithstanding any extension of term, default or change of
the classification of trust.
(4) In addition to the Bank's security interest as established in Article 10
(1)above, the Bank shall have the right to offset the loan with the following
deposit pursuant to the terms of Article 7 of the Standard Bank Credit
transaction Rules.
Collateral :
Classification : Development trust
Account Number : 000-00-000000
Beneficiary : NewState Capital co., Ltd.
Total deposit up to 1/8/2000 : 300,000,000 Won
Date of Certificate : August 3, 1998
Date of Payment : August 3, 2000
Article 11 (Miscellaneous)
--------------------------
We acknowledge receipt of a copy of the standard Bank Credit
Transaction Rules and this Agreement. We also acknowledge that the major terms
and conditions of same have been explained to us and we fully understand them.
Borrower : NewState Capital Co., Ltd.
By : Xxxxx Ki Xxx
(Corporate seal affixed)
Consent to use of Credit Information
To : Korea First Bank
In connection with this Credit Transaction Agreement, we agree that
you may use our credit information registered with
Borrower : NewState Capital Co., Ltd.
By : Xxxxx Ki Xxx
(Corporate seal affixed)
(Revenue stamps affixed)
