Notice of the Bureau of Science and Technology of Nansha District of Guangzhou Municipality on Issuing the Management Measures of Nansha district for Technology SME Credit Risk Compensation Capital Pool

2. Having established branches (sub-branches) in Nansha district, and having science and technology sub-branch or specialized organs for serving SMEs.

3. Implementing separate fund planning policies, risk tolerance policies, exemption assessment policies, special provision policies, and risk pricing policies for science and technology credit in Nansha district, and offering special credit loan products for SMEs.

Article 12 The total annual loan principal of a single enterprise applying for project loans covered by the Capital Pool shall not exceed 30 million yuan, and the loan term shall not exceed three years.

Article 13 Loan projects include bank financing products applied for based on credit, guarantees, chattel, real estate, and equity mortgages (pledges), but excluding projects guaranteed by financing guarantee companies or included in re-guarantees.

Only the loan projects where credit takes up over 50 percent can be covered by the Capital Pool. Loans include unsecured loans granted by banks to enterprises, loans secured by personal joint and several liability guarantees provided by actual controllers or shareholders of enterprises, loans secured somewhere other than specialized guarantee companies, or loans obtained by enterprises with patents, equity, accounts receivable, etc. as collateral.

Article 14 After implementation of these Measures, if the loan project covered by the Capital Pool is listed in the NPL grade of the People's Bank of China as inferior or below, litigation is taken against such an NPL according to the law (including notarization with enforcement effect) and the judicial organ or arbitration institution has issued an effective judgment or has enforced the filing of the case for more than 30 days but still fails to recover it or recover it in full, the cooperative bank may apply for compensation.

Article 15 Compensation standards for NPL projects:

1. The Capital Pool will bear 25 percent of the principal loss arising from the loan issued by the cooperative bank for technology SMEs in accordance with these measures. The total compensation amount applied for by the cooperative bank every year shall not exceed the product obtained by multiplying the proportion of the actual loan amount of the loan project reported by the bank in the current year by the actual