State Administration of Foreign Exchange, Provisions on Foreign Exchange Control in Connection with the Cross-border Provision of Security (Draft for Comments)

国家外汇管理局跨境担保外汇管理规定 (征求意见稿)

April 11, 2014 | BY

CLP Temp &clp articles &

Issued: February 13 2014Main contents: The Draft greatly narrows the scope of control over the amounts involved in the provision of domestic security…

Promulgated: 2014-02-13

Issued: February 13 2014

Main contents: The Draft greatly narrows the scope of control over the amounts involved in the provision of domestic security for foreign loans, while only maintaining control over the scale of the domestic financing type of provision of security for foreign loans of financial institutions, and also changes the prior determination of limits to “self-regulation of percentages”. With respect to the provision of foreign security for domestic loans, the creditor must be a financial institution in China, the debtor may not be a financial institution and the secured debt may only be an ordinary loan or line of credit denominated in either renminbi or foreign currency.

Related legislation: Circular on Issues Concerning the Administration of the Provision of Security to Foreign Parties by Organisations in China; and Tentative Measures for the Administration of Financing Security Companies

issued:2014-02-13

Issued: February 13 2014

Main contents: The Draft greatly narrows the scope of control over the amounts involved in the provision of domestic security for foreign loans, while only maintaining control over the scale of the domestic financing type of provision of security for foreign loans of financial institutions, and also changes the prior determination of limits to “self-regulation of percentages”. With respect to the provision of foreign security for domestic loans, the creditor must be a financial institution in China, the debtor may not be a financial institution and the secured debt may only be an ordinary loan or line of credit denominated in either renminbi or foreign currency.

Related legislation: Circular on Issues Concerning the Administration of the Provision of Security to Foreign Parties by Organisations in China; and Tentative Measures for the Administration of Financing Security Companies

issued:2014-02-13

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