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Transfer of Credit Assets
 
Product Overview
CMB transfers the undue credit assets extended by itself (short-term or medium-or-long term loans) to a financial institution in the form of a repurchase or sell-off. As required by Chinese law, only sell-off businesses can be operated by a trust company.
Asset transfer with repurchase agreement refers to the service in which CMB buys back the asset unconditionally and in full from a financial institute at an agreed price on an agreed date from the creditor to which the asset has been initially sold
Asset transfer in sell-off refers to the service that CMB transfer the  credit assetsto financial institution with no repurchase or guarantee obligation upon maturity. This type of transfer is divided into unconditional and conditional transfers. Conditional sell-off includes priority of repurchase, asset transfer with a guarantee responsibility, and asset transfer without a guarantee responsibility but with a commitment of repurchase under certain conditions.

Advantages
1. High asset quality
2. Improved return on surplus funds

Service Procedure
1. CMB informs a financial institution about the information of the credit assets to be transferred, and negotiates price, term, and transaction method.
2. CMB provides the financial institution with photocopies of loan-related documents.
3. The two parties enter into a credit assets transfer agreement, specifying the amount, term, and interest rate of the transfer, and the rights and obligations of the transferor and transferee. CMB helps the financial institution to complete legal formalities for changing the relevant collateral.
4. The financial institution pays the funds to CMB.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.