Product Overview
Repurchase or buy-off.
The repurchase business is a financial business in which CMB acts as a transferee of the undue credit assets legally released by a financial institution, and the financial institution will buy back from CMB such creditor’s rights at an agreed price and date, unconditionally, and in full.
The buy-off business is a financing business in which CMB accepts the transferred undue credit assets legally released by a financial institution.
Advantages
1. Provides long-term financing to financial institutions.
2. Helps financial institutions gain a higher return through the fast circulation of assets.
3. Helps financial institutions adjust the size and structure of their assets at the right time.
4. Simple processing.
Service Procedure
Repurchase
1. CMB grants a financial institution client a credit line according to its demands after necessary due diligence has been performed.
2. The two parties negotiate the transaction object of the credit assets and transaction factors (amount, term, interest rate) and agree on an intent of transaction.
3. CMB accepts the Application for Credit Assets Transfer for Financial Institutions, the loan contract covering the intended credit assets, and other documents from the financial institution. CMB signs the credit assets transfer agreement with the institution after examining the submitted documents.
4. CMB pays the transfer amount to the financial institution.
5. The financial institution pays back the amount to CMB when the transfer agreement expires.
Buy-off
1. The two parties negotiate the transaction object of the credit assets and transaction factors (amount, price), and agree an intent of transaction.
2. The financial institution provides basic documents concerning the intended credit assets to CMB, which undertakes necessary due diligence and examines the intended credit assets.
3. The two parties conclude the credit assets transfer agreement. As per the agreement, CMB assists the financial institution to inform the client and complete the legal procedures for changing the underlying asset collateral.
4. CMB pays the transfer amount to the financial institution.
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.