Can I pledge my equity to a bank for a loan?
It is possible to pledge my equity to a bank for a loan.
According to the relevant provisions of the "Guarantee Law", loans can be made after pledge.
(1) Enterprises applying for equity must meet the following conditions:
1. Have independent legal personality;
2. Comply with national industrial policies and business performance Good;
3. The equity as pledge has been registered and managed by the Zhejiang Provincial Securities Registration Center;
4. Other conditions required by the "General Rules for Loans";
(2) Natural persons applying for equity must meet the following conditions:
1. The equity must be able to repay principal and interest on time;
2. The equity as pledge has been registered with the Zhejiang Provincial Securities Registration Center Registration and custody;
3. Other conditions required by the "General Terms of Loan".
Article 75 of the "Guarantee Law of the People's Republic of China" Article 75 The following rights can be pledged:
(1) Bills of exchange, checks, promissory notes, Bonds, deposit receipts, warehouse receipts, and bills of lading;
(2) Shares and stocks that can be transferred in accordance with the law;
(3) Trademark exclusive rights, patent rights, and copyrights that can be transferred in accordance with the law property rights;
(4) Other rights that can be pledged according to law.
Can equity, stocks, funds, and bonds be used as mortgage loans? What are the specific operating procedures and mortgage methods?
Equity can be pledged.
Equity pledge, also known as equity pledge, refers to a pledge established by the pledger using his equity as the subject matter of the pledge. According to the current legal systems on guarantees in most countries in the world, pledges can be divided into chattel pledges and rights pledges based on the subject matter. Equity pledge is a type of rights pledge. The creditor obtains the security interest in the pledged equity due to the establishment of equity pledge, which is an equity pledge.
Stocks, funds, and bonds are all acceptable.
Securities companies established in accordance with the law and approved by the China Securities Regulatory Commission to engage in securities proprietary business can apply for stocks from local branches of banks. The specific conditions that borrowers should meet include:
(1) The assets have sufficient liquidity and the ability to repay principal and interest;
(2) Its self-operated business complies with China Relevant risk control ratios stipulated by the China Securities Regulatory Commission;
(3) Sufficient transaction risk reserves have been withdrawn in accordance with the provisions of the China Securities Regulatory Commission;
(4) Have been set aside in accordance with the provisions of the China Securities Regulatory Commission; The China Securities Regulatory Commission stipulates the regular disclosure of information such as balance sheets, net capital calculation statements, income statements, and profit distribution statements;
(5) There are no incidents identified by the China Securities Regulatory Commission in the recent year of operations; For major violations or special risk matters, any senior management personnel and main business personnel have no major bad records as determined by the China Securities Regulatory Commission;
(6) Client transaction settlement funds have been determined by the China Securities Regulatory Commission. Achieve effective independent custody and do not misappropriate customer transaction settlement funds;
(7) Steady operation and good cooperation with our bank;
(8) Other conditions required by the lender.
What are the relevant regulations for equity procedures?
1. The borrower of an equity pledge loan must provide the following information when applying to the lender: 1. Equity pledge loan application form; 2. The borrower's financial statements (balance sheet, profit and loss statement, etc.) at the end of the previous quarter; 3. The equity issuance company’s asset evaluation report for the previous fiscal year; 4. Proof of consent from the equity issuing company. When the pledged equity exceeds 5% of the total share capital of the equity issuance company, a resolution from the board of directors is required to approve the pledge. If the capital contribution certificate of a limited liability company is pledged, a copy of the equity pledge recorded in the shareholder list must be issued; 5. Other materials required by the lender. 2. Both the equity borrower and the lender should sign a "loan contract" in writing. Both the pledger and the lender should enter into an "Equity Pledge Contract" in writing. The equity pledge contract can be concluded separately, or it can be a guarantee clause in the loan contract. 3. Within 15 days from the date of signing the equity pledge contract, the equity parties must go to the equity pledge registration agency to register the equity pledge based on the equity pledge contract, and hand over the equity to the equity pledge registration agency for safekeeping within the time limit stipulated in the contract. The equity pledge registration agency shall issue the "Equity Pledge Registration Certificate" to the pledger.
The ownership of bonus shares and cash dividends distributed during the equity pledge period is stipulated in the pledge contract. Before the expiration of the debt performance period, neither the pledger nor the pledgee shall handle bonus shares and cash dividends, and shall entrust the equity pledge registration agency for safekeeping. The cash dividends shall be calculated and paid by the equity pledge registration agency based on bank demand deposit interest rates. 4. The lender handles the loan in accordance with the loan contract and the "Equity Pledge Registration Certificate". Note: The interest rate and term of equity are subject to relevant regulations of the People's Bank of China. The above is the equity procedure, I hope it can help you
Can I get a loan after pledging my equity?
Yes, I can get a loan after pledging my equity. A pledge is the transfer of movables to the creditor for possession, but the ownership remains with the debtor. A loan is a mortgage loan on a change in ownership of a movable property. Therefore, the debtor can still get a loan after the pledge.
If the pledgee makes a loan without the consent of the pledgor and causes damage to the pledgor, he shall be liable for compensation.
Enterprises applying for equity must meet the following conditions:
1. Have independent legal personality;
2. Comply with national industrial policies and have good operating performance;< /p>
3. The equity as pledge has been registered and managed by the Zhejiang Provincial Securities Registration Center;
4. Other conditions required by the "General Rules for Loans".
Legal basis:
"People's Republic of China and Civil Code"
Article 425 For the performance of guaranteed debts, the debtor or the third party shall If three persons pledge their movables to the creditor for possession, and the debtor fails to perform the due debt or the circumstances agreed by the parties to realize the pledge occur, the creditor shall have the right to receive priority payment for the movables. The debtor or third party specified in the preceding paragraph shall be the pledger, the creditor shall be the pledgee, and the movable property delivered shall be the pledged property.
Article 431 If the pledgee, during the existence of the pledge, uses or disposes of the pledged property without the consent of the pledgor, thereby causing damage to the pledgor, he shall be liable for compensation.
Can a company’s equity be used as a mortgage loan?
A company’s equity can be applied for a mortgage loan. Equity mortgage loan application process: 1. The equity borrower applies to the lending institution and presents relevant materials; 2. The equity borrower and the lender should sign a loan contract in writing, and both the pledger and the lender should sign a loan contract in writing. Enter into an equity pledge contract. The equity pledge contract can be concluded separately, or it can be a guarantee clause in the loan contract; 3. Within the agreed time after the equity pledge contract is signed, the equity parties must present the equity pledge contract to the equity pledge registration agency (equity issuance company) The registered industrial and commercial administrative department) handles the equity pledge registration, and hands the equity to the equity pledge registration agency for safekeeping within the time limit stipulated in the contract; 4. Apply for equity pledge registration and submit materials to the industrial and commercial administrative department; 1. "Equity Pledge Establishment Registration Application" signed or stamped by the applicant; 2. A copy of the shareholder list of the limited liability company recording the name of the pledger and the amount of capital contribution, or a copy of the joint-stock company held by the pledger Copy of the stock (both need to be stamped with company seal); 3. Pledge contract; 4. Copy of the qualification certificate of the pledger or pledgee or the identity certificate of the natural person (if the pledger or pledgee is a natural person, the certificate must be submitted in person) Signature, if it belongs to a legal person, affix the seal of the legal person, the same below); 5. Other materials required by the State Administration for Industry and Commerce, if the designated representative or *** is handled with the entrusted agent, the applicant's designated representative or *** should also be submitted *Proof of the same as the authorized agent. 5. The lender handles the loan in accordance with the loan contract and the relevant certification documents of the equity pledge; Note: The ownership of bonus shares and cash dividends distributed during the equity pledge period is stipulated in the pledge contract. Before the expiration of the debt performance period, both the pledger and the pledgee shall Bonus shares and cash dividends shall not be processed and shall be entrusted to the equity pledge registration institution for safekeeping. Cash dividends shall be calculated and paid by the equity pledge registration institution based on bank demand deposit interest rates. The legal basis is the Company Law.
What are the loan requirements for equity?
The application conditions for equity include independent legal person qualifications; compliance with national industrial policies; equity registration and custody by the Provincial Securities Registration Center; and other conditions.
The equity procedures are: apply for materials and sign a contract; handle equity pledge registration, and the equity will be kept by the equity pledge registration agency; handle loans.
Legal basis
Article 443 of the "People's Republic of China and Civil Code"
Where fund shares or equity are pledged, the pledge shall The right is established when the pledge is registered.
After the fund shares and equity are pledged, they may not be transferred, except with the agreement between the pledger and the pledgee. The price received by the pledger from the transfer of fund shares or equity shall be paid off the debt in advance or deposited with the pledgee.
That’s it for the introduction of equity mortgage loan conditions.