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

loan amount of the Capital Pool in the current year and the maximum annual compensation fund of 60 million yuan. The cooperative bank shall bear the remaining loss of loan principal and loan interest.

2. If the total amount of annual risk loss compensation exceeds the size of the Capital Pool, the district science and technology department will, after review, allocate the compensation to each cooperative bank for their loss from the loan projects by corresponding standards.

3. The municipal and district technology SME credit risk compensation pools are encouraged to strengthen their connections. Cooperative banks apply solely to the district Capital Pool or together with the municipal one.

Chapter V Basic Operating Procedures

Article 16 Main Operating Procedures of the Capital Pool:

1. The cooperative bank shall submit the main data of the loan project to the entrusted management organization for application within seven working days after issuing loans to qualified SMEs.

2. The entrusted management organization shall report the loan projects conforming to these Measures to the district science and technology department. After being confirmed by the latter, the entrusted management organization shall send a loan project confirmation letter to the cooperative bank.

3. If any of the SMEs fails to repay the principal or interest on schedule, or, though without substantial overdue repayment at the time, such an enterprise encounters serious business situation deterioration or other substantial adverse effects and its failure to repay the principal and interest of the loan due is predicted, the cooperative bank shall notify the entrusted management organization in a timely manner. They shall jointly verify the loan repayment abilities of the borrowing enterprise and take measures such as suspending the loan contract.

4. If the loan project meets the conditions of Article 14 of these measures, the cooperative bank shall apply to the entrusted management organization before June 30 each year, which shall be reviewed by the entrusted management organization, and