LOAN CONTRACT

Contract Number:

BORROWER:
Address:

LENDER:
Address:

In accordance with provisions of Contract Law of the Peoples Republic of China and Bank of China, after reviewing the status and the request of the Borrower, the Lender agrees to grant the Borrower a line of credit on . The Borrower, Lender and Guarantor, through friendly negotiation, have executed this Contract as follows:

ARTICLE 1 CURRENCY, AMOUNT AND TERM OF THE LOAN:

1. The Currency under this loan is Reiminbi.

2. The Line of the loan is yuan.

3. The period of this loan is 12 months from the date of
effectiveness of this contract.

ARTICLE 2 THE PURPOSE OF THE LOAN:

1. The purpose of this loan is used for working capital turnover.

2. Without written approval of the Lender, the Borrower could not use the loan out of the scope of the purpose.

ARTICLE 3 INTEREST RATE AND CALCULATION OF INTEREST:

1. Interest rate: The interest rate shall be [***] During the loan term, if the countrys related authority adjusted the interest rate or the manner of calculation of interest, the interest of this contract shall be
adjusted accordingly after one year from the date of execution of this contract.
The adjustment shall be conducted when the interest rate are executed one year.It is not obliged to inform the Borrower when the adjustment of interest.

2. The interest shall be calculated from the date of first drawdown and the actual days the borrower use. One year shall be calculated as 360 days.

3. The payment of interests: The Borrower shall pay the interests per quarter. The payment date shall be , and
. If the payment for the last installment is not on the payment date,the interests shall deduct the interest from the bank account of the Borrower.
In the event that the Borrower fails to pay the interests on time and the balance of the account of the Borrower is not enough for the payment of interest, the Lender shall have rights to collect a penalty being [***] of the outstanding amount per day for the Borrowers breach of contract.

ARTICLE 4 OVERDUE INTERESTS AND MISUSING INTERESTS

1. If the Borrower fails to repay the loan and can not reach a agreement with the Lender regarding the extension, the Lender shall collect an overdue penalty for [***] of the overdue amount per day.

2. If the Borrower fails to uses the loan in accordance with the provisions set forth in this contract, the Lender shall have right to charge a interests for the misusing part at a rate of [***] per day.

ARTICLE 5 ACCOUNT

The Borrower shall open Reiminbi basic account and/or foreign currency account at the Lender or Lenders branch for the use of draw-down, repayment,payment of interests and fees.

ARTICLE 6 DRAW-DOWN

1. The loan under this contract is revolving, the balance of this contract shall not more than the line of credit.

2. The Borrower shall send a draw-down application as the form herein attached in this contract 7 days before the date of draw-down.

3. The Borrower shall not draw the loan less than 1 million.

ARTICLE 7 CONDITIONS FOR DRAW-DOWN

The following conditions shall be satisfied in advance of the draw-down date:

1. The Borrower has opened foreign account and Reiminbi account at the office of the Lender or the branch of the Lender;

2. This contract and the appendices have been effective;

3. The Borrower has provided the recognition of the investment or certificate of the investment to the Lender;

4. The Borrower has provided the board resolution and power of attorney regarding this loan contract;

5. The Borrower has provided the list and the signature sample of the authorized person who empower to sign this contract and documents;

6. The Guaranty under this contract has been effective;

7. The Borrower has been satisfied the warrants under Article 11 of this contract;

8. The other requirement for the draw-down have been satisfied.

ARTICLE 8 REPAYMENT PLAN AND PREPAYMENT

1. The Borrower shall repay the loan in accordance with the status of its cash. The Borrower shall inform the Lender the payment amount and date [***] prior to make the payment. The Borrower shall be obliged to repay the
principal and related interests on due date without any condition.

2. The payment made by the Borrower and the deduction from the account of the Borrower shall be used for repaying the interest at first and then for repaying the principal.

3. In the event the Borrower fails to repay the loan, the Lender shall have rights to deduct the debt from the bank account of the Borrower at the Lender or empower the branches of the Lender to deduct the debt from the
bank account of the Borrower at the Lenders branches;

4. The installment of repayment shall not less than 1 million.

ARTICLE 9 DEBT CERTIFICATE

The Lender shall keep record in the Lenders account for the principal,interests and fees and other fees of the Borrower under this contract; The above mentioned record and the documentation for the draw-down, repayment and payment of interest is the certificates of the debts between the Borrower and the Lender.

ARTICLE 10 GUARANTY

1. (the "Guarantor") shall
be the guarantor for the loan under this contract and take jointly liabilities.

2. During the term of this contract, if the guarantors financial status become deteriorated or the liabilities for repayment of debts become weak, the Lender shall have right to request the Borrower changes guarantor or
provide mortgage and pawn secured for this loan under this contract.

ARTICLE 11 REPRESENTATIONS AND WARRANTIES

I. The Borrowers represents and warrants as follows:

1. The Borrower is a company duly organized and validly existing under the law of the Peoples Republic of China and has the power and authority to own its property to consummate the transactions contemplated in this contract
and join the litigation. The Borrower has the power to handle it assets used in operation.

2. The Borrower is at its option to sign and perform this contract.It is the Borrowers true meaning and has the power to sign this contract and it is not breach it article of association or regulations or contracts. The
procedure for signature and performance of this contract has been gone through and fully effectiveness.

3. The all documents, materials, reports and certificates provided to the Lender by the borrower for consummation of this contract is true, real, compete and effective

4. The Borrower shall not conceal the following events which is being happened or have been happened which will cause the Lender refuse to extend the loan:

(1) The Borrower or the principal executives of the Borrower involve in material events which breach regulations, laws or compensation to others;

(2) Pending actions and arbitration;

(3) The Borrowers debts or proposed debts or liens and other encumbrances;

(4) The other matters will impact the financial status or
abilities of repayment for the debts;

(5) The Borrower breached contract which is between the
Borrower and other creditors.

II. The Borrower hereby warrants as follows:

1. Using the capital of the loan as usage set forth in this contract, the Borrower will not use the loan as Equity investment; The Borrower will not use the capital of the loan invest in security, future, real estate
etc. The Borrower will not lend to the others privately or involving other maters which is prohibited by the country. The Borrower will not misusing or appropriation of the loan.

2. Making payment and related expenses in accordance with the provisions set forth in this contract;

3. Providing updated financial statement or financial bulletin every quarter; Providing the audited financial report at the first quart of each year; Providing operation report, financial report or other files and materials and shall warrant the reality, correct and effectiveness for the files and materials;

4. Any anti-guaranty or other similar documents will not make any impact on the rights and benefits of the Lenders;

5. Accepting the supervision of the Lender, provides assistance and cooperation for the Lenders supervisions;


6. Will not reduce the registration capital; Prior approval from the lender shall be required when the Borrower changes of shareholders and operation manner(including but not limited to joint venture, cooperation,
jointly cooperation; dissolution, closedown, liquidation, transformation; merger; change to share company, use the housing, machinery or other real assets or trademark, intellectual property, Knowhow, landing using rights or other intangible assets to invest in share company or investment company, trading of operation right or own right by contracting, joint operation, trusteeship)

7. The Borrower shall inform the Lender and warrants the liability under its security will not more than net assets of the Borrower when the Borrower guarantee for other party or mortgage its assets. The Borrower warrants
that will not dispose the assets which will make adverse impact on its ability of paying debts.

8. The Borrower will not pay the other similar loans prior to the Lender;

9. The Borrower warrants to inform the Lender immediately when the following events occurred:

(1) The event of breach of contract under this contract or other loan or guaranty contracts between the Borrower and any branches of Bank of China or other banks, non-bank financial organization;

(2) The Borrower changes shareholders or revise the article of association;

(3) The Borrower suffer difficulties and bad result in financial and operation;

(4) The Borrower involves in material actions or arbitration;

10. The Borrower shall keep sufficient balance for repayment prior [***] to the due date.

11. The Borrower shall keep its bank transactions regarding income collection, sell foreign currency or buy foreign currency ect. Shall be conducted at the Lender or other branches of the Lender. The turn-over for the
capital shall satisfy the demand of the Lender;

III. The Borrowers representations and warrants hereunder this contract shall be effective even though any mendment, supplements or revised to be made to this contract.

ARTICLE 12 REPRESENTATIONS AND WARRANTS OF THE LENDER

I. The Lender represents and warrants as follows:

1. The Lender is a state-owned commercial bank or branch duly organized and validly existing under the law of P.R.C and approved by the Industry and Commercial Administration and holds the financial institutions legal person licenses and financial institutions operation license to be
qualified to operate financial business.

2. The Lender has taken all necessary action to authorize the execution of this contract and performance of its obligations under this contract. The Lender is duly authorized to extend this loan.

II. The Lender warrants as follows:

1. The Lender shall extend the loan in accordance with the
provisions set forth in this Contract.

2. Collect interests in accordance with the regulations of the Peoples Bank.

ARTICLE 13 EVENTS OF BREACH CONTRACT AND SETTLEMENT:

I. Settlement of the Borrower breach of contract

1. Event of breach of contract:

(1) The Borrower fails to use the loan in accordance with the agreed usage of the Loan;

(2) The Borrower fails to repay the due principal and pay the interests, expenses or other payable in accordance with the agreed term of this contract;

(3) The Borrower breaches the representation and warrants set forth in Article 11.

(4) The Borrower breaches other loan agreements or guaranty agreements or the Guarantor breach the guaranty agreement which may make impact the Borrower to perform the obligations under this contract.

(5) Conclusive evidence to show that the Borrower lose the capacity of credit or during performance of the obligation under this contract, the financial conditions of the Guarantor are seriously deteriorating or other reasons caused the Guarantor the capacity of credit decline.

(6) The Borrower breaches the other obligations under this contract.

2. Under the above circumstances, the Lender shall have right to:

(1) Request the Borrower to rectify within the period
designed by the Lender;

(2) Cease in extending the loan or cancel the credit;

(3) Declare the loan under this contract is due and the
Lender shall have right to deduct the outstanding amount from the account of the Borrower. The Borrower shall not appeal against the Lender.


(4) Declare the loan is due under other loan agreements
between the Lender and the Borrower, request the Borrower to repay the loan principals, interests, and other expenses.

II. The settlement for the Lender breach of the contract

1. The Lender fails to extend the loan as agreed in this
contract without any reasons;

2. The Lender breaches the agreed interest rate and collection add interests or other fees;

3. The Lender breaches the provisions set forth in Article 12;

4. Under the above circumstances, the Borrower shall have right to:

(1) Request the Lender to rectify;

(2) Repay the loan ahead of time and refuse to pay any
compensation for prepayment.

ARTICLE 14 DEDUCTION

The Borrower shall pay in full for the payment without any
counteraction or any condition.

ARTICLE 15 ASSIGNMENT OF THE DEBT AND CREDIT

1. The Borrower shall not assign its right and liability under this contract to other third party without any written approval of the Lender;

2. In the event the Borrower assign its right and liability under this contract to other third party under the written consent of the Lender, the third party shall abide this contract without any condition.

ARTICLE 16 PERFORMANCE OF OBLIGATION AND WAIVER OF RIGHTS

1. The Borrower is independent contractor under this contract,
it will not impact by any other relations between the Borrower with other party except the other provisions set forth in this contract.

2. The Lender give any extension, toleration, favor to the Borrower or permit the Borrower to delay of performance any obligation under this contract shall not impair any rights of the Lender in accordance with this contract and laws, regulation, it shall be deemed to have waived its
rights under this contract and the obligation shall be performed by the Borrower under this contract.

ARTICLE 17 AMENDMENT, SUPPLEMENT AND INTERPRETATION OF THE CONTRACT

1. This contract could be amended and supplemented upon the written agreements conclude by the parties. Any a amendment and supplement shall be integral party of this contract.

2. In the event change of laws, regulations or legal practice which will cause any terms contained in this Contract become illegal, invalid or loss of practice, the other part of this contract shall not be impaired by
it. The both parties shall make efforts to change the illegal, invalid or loss of practice part.

3. For the matters not referred in this contract shall be
construed in accordance with the provisions of the Peoples Bank of China.

ARTICLE 18 DISPUTE RESOLUTION, GOVERNING LAW AND WAIVER OF EXEMPTION

1. The conclusion, interpretation and dispute resolution shall be subject to the Laws of the Peoples Republic of Chin. The disputes arising from the execution of this contract shall be settled through friendly
consultation by both parties. In case no settlement can be reached, the disputes shall be submitted to the Peoples Court of the location of the Lender for judgment.

2. The Borrower shall not reject any obligation during the settlement of disputes.

3. The execution and performance of this contract and the
related transaction is civil behavior. The Borrower shall not appeal to take action to exempt from the obligation under this contract.
(if both parties agree to apply arbitration, the above term shall be:)

1. The conclusion, interpretation and dispute resolution shall be subject to the Laws of the Peoples Republic of Chin. The dispute arising from the execution of this contract shall be settled through friendly consultation by both parties. In case no settlement can be reached, the
disputes shall be submitted to China International Economic and trade arbitration commission for arbitration.

2. The arbitration shall be conducted in accordance with the Arbitration Law of Peoples Republic of China and Provisional Rules of Procedure of China international economic and trade arbitration commission.

3. During the Arbitration, this contract shall be effective and the Borrower shall not disclaim the any obligations under this contract.

4. The execution and performance of this contract and the related transaction is civil behavior. The Borrower shall not appeal to take action to exempt from the obligation under this contract.

ARTICLE 19 OTHER MATTER AGREED BY THE PARTIES.

ARTICLE 20 APPENDICES

The following appendices shall be integral part of this contract:
1. Draw-down application
2.

ARTICLE 21 NOTICE

1. Any notice, payment notice or telecommunications shall be forwarded to the following address:

To: The Borrower:

Address:
Post Code:
Fax:

To: The Lender:

Address:
Post Code:
Fax:

2. If any change of address shall inform the other party immediately.

3. Any notice, payment request or communication shall be forwarded to the above address. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

(1) If given in letter it shall be deemed effectively given on the fifth day after the date mailed by registered airmail, postage prepaid;

(2) If given by telex it shall be deemed effectively given on the date the other party returned the information;

(3) If given by facsimile it shall be deemed effectively given on the first date of transmission;

(4) If given by personal delivery it shall be deemed effectively given on the date of personal delivery;

This contract become effective after signed by the authorized representatives of both parties until the loan and the interests and other related expenses be cleared up.

This contract is executed in _____ original and be equally authentic.Each of the Borrower, the Lender shall hold ____ copy.


Borrower:
Lender:

Date:

The Importance Of The Payday Loan Agreement

Have you ever wondered why the agreement for getting instant pay day loans is lengthy? Would you rather get an instant cash advance from a company where the terms and conditions aren’t that long drawn? For those who are not really aware of this, agreements for instant payday loan is usually lengthy so that you, as the consumer have all the requisite information. Also, the terms and conditions specified by a company can be legal only if they are put down in the form of an agreement that is read by you and accepted. This document serves as a legal proof of the commitments that the lender has made towards you while extending the loan. As a result, when you take same day payday loans, you must make it a point to read the agreement properly and then, if you agree with the terms and conditions, you would need to sign it before you can avail the cash advance service.

Why is it important to read the agreement?

You must be wondering that if the lender has given you all the information then why do you need to read the agreement before you get the same day cash loans or payday loans. Most importantly, this is what will help you in distinguishing a dependable lender of overnight cash advances from a not so dependable one. The terms and conditions of the agreement would be specified very clearly in the agreement made by a dependable lender. In short, a transparent and informative agreement is a sure shot way of identifying a dependable lender for same day pay day loans.

Also, through the agreement you would get to know what your rights are along with the obligations that you have towards the lender.

Agreements, a great way of getting qualified information from lenders

The payday loan agreement is a contract that is made in compliance with all the applicable state or federal disclosure requirements. Before you get a payday advance, you would need to sign this agreement that outlines all the details of the transaction including the loan amount that you have applied for, the service fee, the interest that you would require to pay and the due date of the loan, amongst other details. The service fee would be mentioned as a dollar amount and as an annual percentage rate (APR). Also, the fee for a rollover and the number of rollovers that are allowed would also be mentioned in the agreement. Additionally, the contact information of the lender would also be mentioned in the agreement. This would include the company name, address, phone number and at times even the fax number or email address.

As is evident, agreements are very important while considering payday loans. They can be crucial in getting important information about the loan and the lender. So, whether you're thinking of applying for a cash advance today, or keeping it in mind for a future date, remember to read the agreement carefully.

How To Read The Payday Loan Agreement

Fast cash advances are very popular, and can be a great way of dealing with financial emergencies. When you are short on cash and between pay periods, one of the most popular ways to gain access to funds is to take out a payday loan (aka a cash advance, paycheck loan, or pay loan). Most people who take payday loans do it for financial emergencies, and just want to get the cash quickly. However, you need to take a few minutes during the process and read the loan agreement. Payday loans can be quick and convenient; they typically do not require any credit check and, unlike regular bank loans, you secure the loan with a promise to pay back the amount borrowed from your next paycheck. Often, all you need to qualify is a job and a regular paycheck!

The key to understanding how much you will need to pay back (and when) is sometimes confusing. All payday lenders need to disclose the terms in a legal document called a "TILA" or loan agreement. These documents are required by a law called the Truth in Lending Act. This law requires that the cost of the payday loan - like other types of credit - must be disclosed. As part of a payday loan application process, this is provided by way of a payday loan agreement, which you must review and sign. Among other information, this agreement discloses:

* The total amount financed (the amount being borrowed)
* The finance charge
* The Annual Percentage Rate (APR)
* The terms of "repayment."

The fee, or finance charge for the loan is the dollar cost of the loan, and includes the dollar cost of all the interest to be paid over the term of the loan and the cost of all charges imposed by the lender. Typically this is expressed as set fee charged per amount borrowed - say, for every $50 or $100 loaned. The loan agreement must also express this as an APR, which is the cost of credit on a yearly basis. This is a complex calculation designed to provide a uniform "true cost of credit" which the borrower can use to comparison shop. Basically, the APR assumes that the total finance charge (which is equal to the total interest on the debt plus any other charges) is paid in equal installments over the term of the loan and then calculates the amount paid each year as a percentage of the amount financed.

Since payday loans are typically very short term in nature, the APR – which represents the cost of credit on a yearly basis – is usually relatively high. For example, if you borrow $100 for 14 days and the loan fee is $15, the APR would be expressed as 391% APR. However, the APR can be very useful when comparing loans and loan fees.

When you are shopping for a good payday loan, you should remember that if you don't like the terms (or the cost) of the loan that is offered to you, you don't have to take it!

What Is A Construction Loan Agreement

If you are planning to build your own home, the entire process can be extremely overwhelming. There are very few projects you or anyone else can take on that are more stressful and more prone to problems. One of the most dizzying aspects of building your own home is having a grasp on all of the legal agreements and contracts that you will need to enter into to get the job done. One contract that you will need to have a working knowledge of is a construction loan agreement. Let’s take a look at what a construction loan agreement is and why having one is so important.

To put it simply, a construction loan agreement is made to any individual, business or group who needs to raise funds for a major building project. It could be something as simple as a single family home or something as complex as a shopping mall. The agreement itself is fairly simple in terms of how complex it is. Every day, there are tens of thousands of these agreements signed in the United States by families looking to build their first home and by businesses looking for that next great investment.

The construction loan agreement is a short term loan agreement. These types of loans are never made for permanent financing of a project, but simply to help progress construction along or to help finance the initial groundbreaking. They are often repaid quickly with funds from the permanent financing option within only a few months.

While it is possible to get a construction loan agreement without permanent financing, almost all individuals and businesses get loans like these after permanent financing has been approved. Unlike many other types of loans, the entire loan amount is seldom released all at once; instead, the necessary funds in the loan are divvied out when needed to help keep construction progressing forward. This helps individuals from squandering much of the loan or spending more of it then they need to. If a business is seeking a construction loan agreement, most banks require personal guarantees for the loan to move forward.

The maximum term on a construction loan agreement is only 12 months, which puts pressure on the borrower to repay the loan as quickly as possible. The interest rate for these types of loans is plus 1 percent of prime and is adjusted monthly. For these types of loans, borrowers are completely responsible for all third party costs and points can be bought with these types of loans to keep long term costs down.

When it comes to drawing up a comprehensive and reliable construction loan agreement, clarity is the main goal of every good document. The biggest challenge you’ll face is defining the terms and conditions so that both the borrower and the lender agree upon the final set of terms. While a general construction loan agreement template can sometimes be used, each individual loan is often utterly unique and a completely original agreement is often needed.

A Bank Loan Humor

Rajiv and Mona are flying to Australia for a two-week vacation to celebrate their 20th anniversary.

Suddenly, over the public address system, the Captain announces, “Ladies and Gentlemen, I am afraid I have some very bad news. Our engines have ceased functioning and we will attempt an emergency landing. Luckily, I see an uncharted island below us and we should be able to land on the beach.
However, the odds are that we may never be rescued and will have to live on the island
for the rest of our lives!”

Thanks to the skill of the flight crew, the plane lands safely on the island.

An hour later Rajiv turns to his wife and asks, “Mona, did we pay our Rs 5 lakh deposit cheque yet to ICICI Bank?”

“No, sweetheart,” she responds.

Rajiv, still shaken from the crash landing, then asks, “Mona, did we pay our ICICI Bank Master card yet?”

“Oh no! I’m sorry. I forgot to send the cheque,” she says.

“One last thing, Mona. Did you remember to send cheques for the auto loan to them too this month?” he asks.

“Oh, forgive me, Rajiv,” begged Mona. “I didn’t send that one, either.”

Rajiv grabs her and gives her the biggest hug in 20 years. Mona pulls away and asks him, “Why did you hug me?”

Rajiv answers, ” They’ll find us !!!!”

Banking for Red Indians

An old Native American wanted a loan for $500. He approached his local banker. The banker pulled out the loan application, asking, "What are you going to do with the money?"

"Take jewelry to city and sell it," said the old man.

"What have you got for collateral?" queried the banker, going strictly by the book.

"Don't know of collateral."

"Well that's something of value that would cover the cost of the loan. Have you got any vehicles?"

"Yes, I have a 1949 Chevy pickup."

The banker shook his head, "How about livestock?"

"Yes, I have a horse."

"How old is it?"

"I don't know; it has no teeth."

Finally the banker decided to make the $500 loan. Several weeks later the old man was back in the bank. He pulled out a roll of bills, "Here's the money to pay loan," he said, handing the entire amount including interest.

"What are you going to do with the rest of that money?"

"Put it in my pocket."

"Why don't you deposit it in my bank?" he asked.

"I don't know of deposit."

"Well, you put the money in our bank and we take care of it for you. When you want to use it you can withdraw it."

The old Indian leaned across the desk, looking suspiciously at the banker, and asked, "What you got for collateral?"

Mouse buys a house

So a mouse wants to buy a house, because he's tired of getting chased from his mousehole by the cat. So he contacts several real estate agents in his area, browses classified ads, and finally selects a home in a good neighborhood with access to school and shopping. The initial asking price seems a little high, but the owner is willing to come down enough to fit the mouse's needs. So the mouse goes to a bank to get a home loan, and the loan officer turns him down. He tries another bank, same thing. Another bank, same thing. "I see how it is," the mouse finally says at the fourth bank. "You won't give me a loan because I'm a mouse!" And the loan officer says "No, we won't give you a loan because you have a history of delinquent accounts, you defaulted on your student loans, and your credit cards already eat up a third of your discretionary income!"

Loan the frog some money

A frog goes into a bank and approaches the teller. He can see from her nameplate that the teller's name is Patricia Whack.

So he says, "Ms. Whack, I'd like to get a loan to buy a boat and go on a long vacation." Patti looks at the frog in disbelief and asks how much he wants to borrow. The frog says $30,000. The teller asks his name and the frog says that his name is Kermit Jagger, his dad is Mick Jagger, and that it's OK, he knows the bank manager. Patti explains that $30,000 is a substantial amount of money and that he will need to secure some collateral against the loan. She asks if he has anything he can use as collateral.

The frog says, "Sure. I have this," and produces a tiny pink porcelain elephant, about half an inch tall, bright pink and perfectly formed. Very confused, Patti explains that she'll have to consult with the manager and disappears into a back office. She finds the manager and says: "There's a frog called Kermit Jagger out there who claims to know you and wants to borrow $30,000. And he wants to use this as collateral." She holds up the tiny pink elephant. "I mean, what the heck is this?"

The bank manager looks back at her and says: "It's a knick knack, Patti Whack. Give the frog a loan. His old man's a Rolling Stone".

Joke: Loan Repaid

Two lawyers are standing in line at a bank when armed robbers burst in. While a few of the robbers take the money from the tellers, the others line the customers up against a wall and proceed to take their wallets, jewelry, and any other valuables they may have.

While this is all taking place, one lawyer presses something into his colleague's hand. Without looking down, the second lawyers whispers, "What is that?"

"It's the $100 I owe you," replies the first lawyer.

A blonde borrows

　　A blonde walks into a bank in New York City and asks for the loan officer. She says she's going to Europe on business for two weeks and needs to borrow $5,000. The bank officer says the bank will need some kind of security for the loan, so the blonde hands over the keys to a new Rolls Royce. The car is parked on the street in front of the bank, she has the title and everything checks out. The bank agrees to accept the car as collateral for the loan. The bank's president and its officers all enjoy a good laugh at the blonde for using a $250,000 Rolls as collateral against a $5,000 loan. An employee of the bank then proceeds to drive the Rolls into the bank's underground garage and parks it there.
Two weeks later, the blonde returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, "Miss, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?"
The blonde replies, "Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return?"

A senior U.S. official warned that the city save money by issuing executive pay is a criminal offense

According to the British "Daily Mail" reported that the U.S. House of Representatives Finance Committee Chairman Barney - Frank on October 31 that will save the city money in addition to loans for any purpose other than, for example, the Wall Street money manager or pension Will be a criminal offense.

It is reported that previously, as of the end of 2007, the U.S. government to accept financial aid funds 9 of the first banks owed a total of senior management and the extension of pension money to pay more than 40,000,000,000 U.S. dollars. Goldman, Sachs & Co. will be relevant to their manager to pay millions of pounds of prize money has been reported in China triggered angry taxpayers. Earlier this week reports said the operation is in a predicament of Goldman, Sachs & Co. prepared 7,000,000,000 pounds for the payment of wages and year-end bonus in 2008, 443 partner companies will be more than 300 million pounds per capita over the Christmas bonuses, prize money distribution The United States more than the total amount of funds injected by the Government 6,100,000,000 pounds.

Frank said: "Some financial institutions relief bill is being distorted, I will be very disappointed. Loans for purposes other than the use of the funds, whether in cash, severance pay or dividends or acquisitions, contrary to the bill agreed . "Frank said Treasury Secretary Paulson to participate in the project's financial institutions to help clear that the government would insist that they abide by the agreement of the Bills.

As passed by Congress 700,000,000,000 U.S. dollars to save the city a part of the bill, the U.S. Treasury Department are 250,000,000,000 into the bank capital. Ministry of Finance is active all over the country to the local community banks and the distribution of 125,000,000,000 U.S. dollars. As part of the project, the bank received capital injection of gold, it must provide the Government with preference shares. The project also includes bank executives pay to prohibit increase in the dividend and stock to buy another. Members are trying to give the project more additional conditions, including the prohibition of any dividend and any restriction on the types of loans. These conditions may be the guiding principles of the way, but if the banks do not agree with these conditions, then the bank regulators can restrict the activities of the bank's approach to the enforcement of these principles.

An official from the Bush administration this week said the four, Bank of activities over the implementation of restrictive measures will be to restore liquidity in the market have a negative effect. Paulson on October 20 on the plan said the project aims to attract private capital and encourage lending. He said: "Our goal is to increase our confidence in the banks so that they can borrow their capital. We expect them to do so because of the increase in confidence will lead to an increase in lending activities. The Government would like to participate in this project to help banks While those in difficult circumstances but have the ability to avoid the houses owners to recover. "

U.S. sub-prime mortgage credit crisis

What is the Subordinated Debt Crisis:

In the United States, the credit rating of different people in the search for bank loans or lending institutions to enjoy a different rate. 660 points higher than the credit rating of borrowers, can enjoy preferential interest rates. The U.S. federal funds rate to 5.25 percent, banks or financial institutions in general to the prime rate of 8.25 percent. Credit rating lower than 660 sub-loans, had to accept the relatively high interest rates. In the mortgage market, the relatively high interest rate, known as subprime mortgage interest rates or the subprime mortgage interest rates. Secondary mortgage rates are usually higher than the prime rate 2-3 percentage points.

U.S. mortgage securities market operation mechanism:

In the United States, personal loans are loans to companies rather than directly to the bank to apply for mortgages. Mortgage loans will be sold to commercial banks or investment banks. Bank loans will be re-packaged into mortgage securities after the sale to buy mortgage securities investors, the transfer of risk. At the same time, banks and mortgage companies will sign an agreement requiring mortgage lenders in the personal loan arrears, the buy-back mortgage. Bank will purchase some of the credit default swap contracts, which is equivalent to the purchase of a mortgage default rates rise against the "insurance" to further spread their risk.

Almost all the time to make money:

2001-2004, Federal Reserve policy of low interest rates to stimulate the real estate development, the American enthusiasm for the purchase of a sharp rise, due to availability, the hot unprecedentedly subprime mortgage market. During this period, most of the chain will profit, mortgage securitization is that the benefits of real estate value-added revenue would be allocated to more people. Mortgage company's profits will come from the sale of mortgage loans to the bank, the bank's profits from the mortgage securities will be sold to purchase mortgage securities, and mortgage securities buyers will be able to enjoy than to buy treasury bonds or investment-grade bonds more High income. This does not include those indirect involvement of investors, including the purchase of mortgage company or bank stock investors. The only losses may occur in the credit default swap market bet mortgage default rates will rise.

Almost all the loss-making period:

U.S. real estate boom significant decline in Subordinated Debt is the root of the problem. Increasing the loan default, the secondary market than the U.S. bogged down in the bad debt crisis by lending institutions. March 13, 2007, the U.S. Mortgage Bankers Association reported that subprime mortgage market crisis. The news of the U.S. stock market fell comprehensive. The U.S. stock market panic quickly spread to Asia. April 2, 2007, the nation's largest distributors of the new century Subordinated Debt filed for bankruptcy protection, marking the U.S. subprime mortgage market crisis.

Possible solutions:

March 15, the former Federal Reserve Chairman Alan Greenspan said that house prices continue to drop unless the United States, the United States subprime mortgage risk is unlikely to affect the U.S. economy as a whole. Reading from a different angle, and Alan Greenspan to mean that house prices can not fall in the United States, or other areas of the economy will be affected. "I think it is important to identify clearly we are dealing with things, this is a house, rather than mortgage credit problems." Is Greenspan also hinted at using the old methods of drawing a market it?

March 21 meeting of Federal Reserve monetary policy statement from the Qu Xiaodiao in August 2006 to stop raising interest rates has always been like this since the "further tightening" the language and replace it with "future policy adjustments" relatively neutral language. The market will interpret the Federal Reserve to cut interest rates for the formal opening the door. Although the March 28 Federal Reserve Chairman Ben Bernanke are both houses of Congress in the Economic Commission for Co testified that the wording change does not necessarily mean that interest rate cuts, and repeatedly play down the subprime mortgage crisis threat, but a lot of bystander That this is motivated.

African-American have been on unequal treatment in the car loans

According to the Associated Press reported that in the African-American to apply for car loans have always been subject to unequal treatment, but for a series of recent auto finance companies to consumers for discriminatory treatment by the dust has settled litigation, which is expected to reduce or eliminate U.S. car loan industry The existence of discrimination.

According to the Consumer Federation of the United States to a survey conducted in 2004, blacks buy
To buy a new car loan interest rates typically 7%, and under the same conditions, the white rate was only 5%. In the purchase of second-hand car, 27% of blacks were asked to pay 15 percent or higher loan interest, and the proportion of whites only 9%.

Reported that to a large extent, set the lending interest rate is based on the car buyer's credit record. However, some people pointed out that car dealers and consumers do not usually discuss on the authorization to raise interest rates. U.S. consumers head of the Federation of the view that only by the credit records to explain the difference between the interest rate car loan problem, it is difficult to convince.

U.S. Consumer Law Center, said Stuart Grossman, who is currently handling a total of 11 for a car loan discrimination lawsuits, legal center and each of the relevant car finance companies have reached a solution, including in the next few years may not increase Blacks and other ethnic minorities in the purchaser's lending rate, which will contribute to the elimination of discrimination against the status quo.

Toyota in the United States launched zero-interest car loans

In order to attract as personal loan market in general and the tense wait-and-see car buyers, Toyota (Toyota Motor) announced that the United States for 11 models introduced zero interest rate car loans.

Toyota Motor Corporation of the United States at a press conference that the zero-interest car loans for a period of 36 months to 60 months, involving vehicles, including Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma As well as the Tundra, and so on.

Toyota Motor North America general manager Bob - Carter (Bob Carter) said that the company has prepared a stock fuel-efficient models, and to provide loans or financial leasing services.

Toyota is Japan's largest car manufacturer. The company announced Wednesday that the United States in September of this year's car sales year-on-year decrease of 32%, due to the deterioration of the U.S. economy, the lack of consumer confidence.

Finding Bank Balance Insufficient! Just Avail Secured Auto Loan

Willing to buy an automobile? Simple, check your bank balance and go head to buy your dream automobile. And, if you find your bank balance not enough to meet the financial needs in buying it then just avail secured auto loan. Secured auto loan is the source of funds which provides financial assistance in fulfilling your desire of owning an automobile.

In secured auto loan, you are asked to place collateral against the loan amount. Here, collateral can be any asset of value that is home etc and sometimes an automobile itself acts as a collateral in secured auto loan. If you desire to procure large amounts and on low interest rate then you are recommended to place collateral with high equity.

Before availing secured auto loan, do consider following points:

•Take in to account your ability to repay the loan amount

•Try to differentiate between your need and desire

•Deal with the lender, who is reputable in the financial market

•Not rely on the advertisement unless you, yourself find the fact

•Compare the various offers of secured auto loan made to you

•Go thorough all the terms and conditions of the secured auto loan

•Do get your automobile insured but not from the same financing company

•Research in the financial market to know the trend and competitiveness of the secured auto loan deal.

Secured auto loan is also available to you, if you have poor credit history. But, it is possible that the lender asks you to pay bit high rate of interest. And, once your credit score gets improve then you can also avail secured auto loan on competitive rates.

The factors which enable the lender to offer competitive rates of secured auto loan are high down payment and applying loan through online mode.

The main process of availing secured auto loan starts from locating the lender. Though there are many lenders who offers secured auto loan but finding the one among them which matches with financial needs is not an easy task. But, this task can be simplified if online method of research is adopted.

Once the lender has been located, the next step is to ask for loan quote and negotiating with the lender. Negotiation most of the times results in the reduction in the total cost of the loan. At the time of negotiation itself, various aspect of the secured auto loan are decided such as interest rate, terms of repayment, monthly repayment etc. Then you are asked to fill an application asking certain financial and personal details and if the lender finds an application eligible for the loan then he approves a loan amount. Finally, you can purchase an automobile of your desire.

Get A Low Cost Loan By Using Balance Transfers

Keeping interest payments down is a sign of good money management and credit card tarts have got it down to a fine art. Credit card tarts take advantage of 0% balance transfer deals to make sure they never pay interest on their credit card debt.

Credit Card Tarts

It works like this. The borrower applies for and gets a credit card that offers 0% on balance transfers for a fixed period. Usually this is six months to a year. The borrower transfers the existing debt on to the credit card and makes repayments as usual. Since no interest is being charged, all repayments are reducing the amount of money owed, which is good news for the borrower's long term financial health.

At least six weeks before the 0% deal is due to expire, the borrower applies for another 0% credit card and transfers the remaining balance on to the card. This means the borrower has another period of clearing debt without paying interest. This strategy can be repeated several times, though many credit card companies have got wise to it and are now charging balance transfer fees.

Low Cost Loans

This is a great strategy for people who are trying to reduce debt, but it turns out that it can also be used for debt-free people who want to get a low cost loan. To do this, borrowers need to find two different types of credit cards. Debt free people with a good credit rating should have little problem with this strategy.

First of all, the borrower will need to find a card that offers a low balance transfer rate for the life of the balance. There are several of these to choose from. Many of them also offer other incentives, so it is worth shopping around.

Second, the borrower needs to find a card that allows a fee-free balance transfer, as well as credit card cheques with a 0% interest rate. There are a few cards that meet these criteria.

Transferring The Balance

Third, the borrower needs to do a balance transfer from the low rate card to the 0% card. This means that the 0% card will be in credit. Finally, the borrower can write a credit card cheque from the 0% credit card and pay it into his or her current account. The net effect of this is a loan at a much lower rate than normal bank loans.

Even for people that don't need a loan, this can be a good way of making some cash, especially if they are able to stash the cash in a high interest account.

What About The Credit Rating?

One danger of this strategy is if borrowers make too many credit card applications in a short space of time. This can count against them in a credit file. It is also essential to make at least the minimum payments on the required dates to maintain a good credit history.

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Beware Of The Small Writing In A Loan Contract

Is it sound to take a loan? Well, “everybody” does it, so it should not be that bad… Mmm… dig into the subject a little and you will find many cases of disputes due to either small writing that you overlooked or a misunderstanding at the time of signing for the loan. Loans are good business, for both you and the lender, provided you take it seriously and check out everything thoroughly.

The Small Writing

Have you ever wondered why “small writing” is small? Some may argue that it does not affect the essence of the contract. Others may “accuse” the lending party of making it smaller so that YOU give it less importance and will not care to read it. Whatever the reason, small writing is WRITING, and writing was made to be READ. So get your glasses on and read it.

Never Heard Of

I have never heard of loan agents actually asking the borrower to read the small writing… Honestly, I would not venture a reason. However, the fine tuning of the loan or contract is in the small writing. So read it thoroughly and decide whether you accept those conditions or not.

Most small writing clauses are all the same, obtained from a template provided by the organisation that regulates the trade, so it can not be taken as a direct intention of the lenders to fool you. They’re mostly protecting their business, since there are more laws that protect customers than there are to protect the lenders from “wise loan takers”.

The Real Essence

The real essence of the operation is business. If you’re simply buying a car for pleasure, you are making business. Any transaction is business. The profit of buying a car is the satisfaction you get from using it.

The Other Way Around

Remember the saying about considering the glass half empty or half full? Well, it is the same case here. You need their cash, it is true… but they need the interest you pay, otherwise the will be out of business in no time. Lost of investors and lending agencies have tons of cash, but either it is not theirs, or they HAVE to put it to work, or they will end up consuming it and eventually go broke.

So Then?

Read everything and decide upon it. Do not let anybody hurry you. Find out the little things you can use to negotiate a better deal. Remember that a well-used loan can mean much more to you than it does to any lender. The lump sum you get can leverage big business. Even if it is a small loan, the proportional business it can give you is big, compared to your present condition.

Conclusion

When cataloguing lenders, rather than considering them good or bad ones, there are just “convenient” or “not convenient” ones for your situation. Stop thinking that they are trying to fool you. It puts you in a defensive situation and makes you feel weak. You are the customer and the lenders, dealers, brokers or whatever you wish to call them, need YOU.

VA Home Loan Information - Buying A House With A VA Loan

Buying a home with a VA guaranteed loan grants veterans and service persons better terms than that of a conventional mortgage loan. VA loans are handled through private mortgage lenders, so there is limited bureaucratic red tape.

Understanding VA Loans

VA mortgage loans are guaranteed by the government, but the actual home loan is handled by a mortgage lender. In effect the government is like your co-signer. However, you still need to qualify for the mortgage loan by having a good credit record and enough income to cover the cost of a home, which includes mortgage payments, insurance, and taxes.

As long as the loan is equal to or less than the value of the property, no down payment is required. The government guarantees $36,000 to mortgage lenders, which is like a down payment in the finance company’s eyes. As a result, you don’t have to pay mortgage insurance premiums.

Other benefits of a VA loan include no prepayment fees, negotiable interest rate, and a warranty from the builder for homes inspected by the VA during construction. The VA will also assist borrowers with financial difficulties before they have to default on their loan.

Obtaining A VA Loan

Obtaining a VA loan is very similar process for a conventional mortgage. To begin, start home shopping. Once you are ready to buy a home, sign a purchase contract on the condition of approval of a VA guaranteed loan.

The next step is to apply for a loan with a private lender and submit a certificate of eligibility from the VA or discharge papers. The lender will process your loan application and contact the VA to appraise the value.

The loan will be approved based on the property’s value and your credit report. The final step is to discuss the terms, pay for any closing costs, and sign the final paperwork.

Finding VA Loan Lenders

VA loan lenders can be found virtually everywhere you would look for a traditional finance company. Online lenders allow you to easily compare rates, since the government doesn’t dictate lending rates. You will also want to find a user friendly process. Online lenders enable you to complete forms in your home through their websites, with final paperwork signed with a notary.