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Borrower __________ and Guarantor _________ hereby state that they have taken this Contract back home on ___ (year) ____ (month) _____ (day) for review (at least five days should be allowed for contract review), and they understand fully and accept the terms and conditions as agreed by the parties.
Borrower _________ (“Party A”) hereby applies for a loan from __________ Bank (“Party B”), and the parties hereto agree to the terms and conditions below:
Article 1 (Type of Contract)
The Contract comes in two types below by the method of loan disbursement:
(1) Lump-sum disbursement:
It refers to the type of loan where Party B grants Party A a loan amount and disburses the loan proceeds to Party A in one lump sum.
(2) Revolving loan facility:
It refers to the type of loan where Party B grants Party A a loan facility and Party A may drawdown the loan up to a limit on a revolving basis.
Article 2 (Loan Amount or Limit)
(1) Lump-sum disbursement:
The loan amount granted to Party A is NT$___________.
(2) Revolving credit facility:
The loan limit granted to Party A is NT$ __________.
Article 3 (Loan Disbursement)
□ (1) Lump-sum disbursement:
Party B’s loan to Party A is deemed disbursed when Party B deposits the loan proceeds into Party A’s _______ deposit account No. ____________ at ________ Bank as instructed by Party A.
□ (2) Revolving loan facility:
Party B’s loan to Party A is deemed disbursed when loan proceeds are available in a _____________ deposit account No. ________________ opened by Party A at Party B (referred to as the “revolving loan drawdown account” hereunder) for drawdown by Party A and Party A makes withdrawal from the account within the loan limit with a passbook and a withdrawal slip or makes transfer from the account via phone banking or online banking during the term of loan.
□ (3) Payment into a borrower-designated merchant account
Party B’s loan to Party A is deemed disbursed when Party B deposits the loan proceeds directly into a merchant’s _______ deposit account No. ____________ at ________ Bank as instructed by Party A. However if the payment to a merchant pertains to a merchandise or service contract involving a transaction other than a deferred (prepaid) transaction, Party A may notify Party B to stop payment at any time without giving any reason, and Party B will stop the payment of undisbursed amount upon receiving Party A’s notice.
Article 4 (Term of Loan)
(1) Lump-sum disbursement
This loan has a term of ______ (years) _____ (months), starting on _______ (year) _________ (month) _____ (day) and ending on _______ (year) _________ (month) _____ (day).
(2) Revolving loan facility
This loan has a term of one year, starting on _______ (year) _________ (month) _____ (day) and ending on _______ (year) _________ (month) _____ (day). If Party B decides not to renew the Contract prior to its expiration, Party B shall, no later than 30 days before the expiration date (excluding the day on which the Contract expires), notify Party A in writing. Should Party B fails to act according to the preceding provision, Party A may claim that the loan has been renewed for another year under the same terms and conditions without signing another contract.
Article 5 (Calculation and Payment of Loan Interest)
Interest on this loan may be calculated and paid according to one of the following methods:
□ (1) Calculated by Party B’s prime rate (or other benchmark rates) at ____ % plus an annual rate of ____ % (totaling _____ % per annum); the interest rate will be adjusted subsequently as Party B’s prime rate (or other benchmark rate) changes, and interest will be calculated at the adjusted annual rate starting from the first payment date after the adjustment.
□ (2) Calculated by Party B’s prime rate (or other benchmark rates) at ____ % plus an annual rate of ____ % (totaling _____ % per annum); the interest rate will be adjusted subsequently as Party B’s prime rate (or other benchmark rates) changes, and interest will be calculated at the adjusted annual rate starting from the date of adjustment.
□ (3) Calculated by a fixed rate of ____% per annum.
□ (4) Interest on loan with a prepayment penalty clause is calculated as follows: _________.
□ (5) (Any other manner as agreed by Party A and Party B).
The prime rate (or other benchmark rates) referred to in Paragraph 1 shall be based on ___________ (the bank shall indicate whether the prime rate is the rediscount rate of the Central Bank, average interest rate of the time deposits of major banks, average call loan rate, money market rate, or other representative and transparent market benchmark rate, plus a certain percentage, that has been publicly announced as required).
Under the interest calculation methods referred to in the preceding two paragraphs, interest may be calculated by either of the two following means based on the bank rules or the type of loan product:
(1) Interest that is calculated daily will be accrued on the basis of 365 days a year (including leap years) where daily interest is the daily ________ (bank should indicate “highest”, “average” or “ending”) outstanding loan balance multiplied by annual interest rate and then divided by 365.
(2) If interest is calculated monthly, monthly interest is the principal multiplied by annual interest and then divided by 12, and interest on the portion less than a month will be calculated daily, that is, interest will be accrued on the basis of 365 days a year (including leap years) where principal is multiplied by annual interest rate and the number of days elapsed in the partial month and then divided by 365.
Article 6 (Notice of Interest Rate Change)
When Party B adjusts its prime rate (or other benchmark rates), Party B shall notify Party A of the adjusted prime rate (or other benchmark rates) within _____ days (no more than 15 days). If Party B fails to make such notification in a timely manner, the interest and delay interest will be calculated at the originally agreed rate when interest rate is adjusted higher, and calculated at lower rate when interest rate is adjusted down.
Party B shall post the announcement of interest rate change mentioned in the preceding paragraph at its business places and on its website, and in addition, notify Party A via _________ as mutually agreed by the parties (the agreed method of notification includes notification by short message, in writing, by e-mail, by posting on passbook, on the printout of interest payment receipt, or on the online banking login page). If no such method of notification is agreed on, Party B should notify Party A of interest rate change in writing. (There will be a time lag between the date of rate adjustment announcement and the actual date of passbook posting or notice receipt date).
When Party B adjusts the prime rate (or other benchmark rates), Party A may ask Party B to provide the principal and interest repayment method and repayment schedule calculated based on the adjusted interest rate.
Where interest is calculated and paid as agreed according to Subparagraph (5), Paragraph 1 of Article 5, the provisions of preceding three paragraphs shall apply when interest rate is adjusted.
Article 7 (Amortization of Principal and Interest and Repayment Method)
The principal and interest of the loan may be repaid by any of the following methods:
□ (1) Starting from the actual date of disbursement, Party A will make monthly payment on interest and repay the principal in one lump sum on due date (___ (year) ___ (month) ___ (day)).
□ (2) Starting from the actual date of disbursement, Party A will make monthly amortized payment on principal and interest calculated by annuity method.
□ (3) Starting from the actual date of disbursement, Party A will make monthly fixed payment on principal and pay interest calculated on a monthly basis.
□ (4) Starting from the date of disbursement, Party A will make monthly payment on interest in the first _______ years (months) of the loan, and then make monthly amortized payment on principal and interest calculated by annuity method starting from the _____ year (months).
□ (5) Interest accrued by the revolving loan drawdown account will be settled once every month and Party A will make monthly amortized payment on principal and interest.
□ (6) Other methods as agreed by Party A and Party B.
Party B should provide Party A with the method of calculating loan principal and interest and repayment schedule, and inform Party A of the method of inquiring loan payment online or by other methods.
If none of the options provided in Paragraph 1 hereof is agreed on, Party A will make monthly amortized payment on principal and interest calculated by annuity method starting from the date of actual disbursement. However Party A may request to change to another repayment method as provided in Paragraph 1 at any time.
Party B offers the option of “no prepayment penalty” and “with prepayment penalty” and Party A agrees to choose one of the following:
□ “No prepayment penalty”: Party A agrees to repay loan principal and interest in accordance with Subparagraph ____, Paragraph 1 of Article 5 and has the option to repay the loan or close the account at any time without paying any penalty.
□ “With prepayment penalty”: Party A agrees to repay loan principal and interest in accordance with Subparagraph (4), Paragraph 1 of Article 5 and further agrees to pay a prepayment penalty, provided Party A _________ (the bank should indicate whether it is “repays principal” or “repays all principal” or “closes the loan account”) early in the first _______ years (or ____ months) of the loan from the date of loan disbursement (withdrawal). The aforementioned prepayment penalty will be charged in the following manner: ____________________.
(Note: Prepayment penalty should be charged in a scale-down manner in consideration of borrower’s repayment period, loan balance and other factors. However when early payoff of loan is necessary due to the death or severe disability of the borrower as evidenced by relevant document, the bank may not charge the borrower prepayment penalty).
Article 8 (Delay Interest and Penalty)
Where Party A is late in repaying the principal or paying the interest, Party B may charge penalty only if it calculates interest during the late payment period at the original loan rate. The aforementioned penalty will be charged by the following methods:
□ If payment is less than six months late, default penalty will be charged by billing period at the rate of 10% of the original loan rate; for the portion of payment over six months late, the penalty will be charged at the rate of 20% of the original loan rate. For each incidence of default, penalty may be charged only up for nine consecutive billing periods.
□ A fixed-amount penalty of NT$ _______ will be charged for each billing period, and for each incidence of default, penalty may be charged only up for three consecutive billing periods. (The bank may charge different fixed amounts of penalty for “different duration of default”, but may not charge different fixed-amounts of penalty based on “monthly overdue amount in different brackets”).
Where Party A is late in repaying the principal or paying the interest, Party B may not charge additional penalty if it calculates delay interest during the late payment period at a rate higher than the original loan rate. Party B will charge interest during the late payment period at the rate of _________ up for nine consecutive billing periods for each incidence of default, and calculate interest during the late payment period based on the original loan rate after the 10th billing period.
Article 9 (Fees)
Loan fees may be agreed on as follows:
□ (1) Up-front charge: NT$ _______.
□ (2) Account management fee: NT$ _________.
The fees listed in the preceding paragraph may be charged once only. Aside from the fee items and amounts listed in the preceding paragraph, Party B may not charge other fees.
Article 10 (Acceleration Clause)
Party A shall pay off all debts in connection with any of the loans granted by Party B, including principal, interest and fees, according to the agreed terms and conditions.
In case Party A has any of the following situations, Party B has the discretion to shorten the term of loan or call the entire loan due. However when Party B makes any claim in accordance with Subparagraph (2), (6), and (7) hereof, it should notify Party A in writing and give Party A a reasonable period of time before the shortening of loan term or the calling of loan takes effect:
(1) Party A fails to repay the principal of any debt as agreed.
(2) Party A fails to pay interest, fees and other payables on any debt as agreed.
(3) Party A files for settlement or voluntarily files or is being filed for declaration of bankruptcy under the Bankruptcy Act or the Consumer Debt Clearance Act, or the bill or check drawn by Party A is being denied service by the clearing house, or Party A ceases its business, or is in the process of debt consolidation.
(4) Party A passes away and his/her heirs waive rights to inherit.
(5) Party A’s major assets are being seized under court order in connection with a criminal case.
(6) The actual use of proceeds from loans granted by Party B is inconsistent with the purpose approved by Party B.
(7) Party A’s assets are subject to compulsory execution, provisional seizure, provisional disposition or other precautionary measures that it is likely Party B will not be able to receive repayment from Party A.
Article 11 (Exercise of Offset Right)
When Party A fails to make amortized payment as agreed, or when Party A’s debt becomes due or is deemed due in accordance with the preceding article, Party B has the right to treat the deposits of Party A and Guarantor at Party B and all of Party A’s claims over Party B as early payment to Party B and use such early payment to offset Party A’s debt to Party B. However when Party A’s deposits at Party B and Party A’s other claims over Party B are sufficient to pay off Party A’s debts under the Contract, Party B shall not exercise offset right against Guarantor.
When Party B plans to carry out offset in accordance with the preceding paragraph, it shall notify Party A and Guarantor of its intent in writing. Such notice shall contain information on cause for exercise of offset right, types of offset rights and amounts involved. Party B shall carry out offset in the following order:
(1) Party A’s claims over Party B will be offset first, and Guarantor’s claims over Party B will be offset after Party B’s action of compulsory enforcement against Party A is ineffectual.
(2) Debts that are due will be offset first and debts that are not yet due will be offset later.
(3) When deposits are used for offset, deposits with lower interest rate will be offset first.
Article 12 (Notice of Address Change)
Where Party A or Guarantor changes his or her residence or mailing address, or Party B changes its business place, the changing party shall immediately notify the other party in writing or in a manner as agreed by the parties.
Article 13 (Use of Consumer Information)
Unless it is otherwise provided by law, Party B may gather, process and use the personal information of Party A and Guarantor and their information on dealings with financial institutions only to the extent of serving the purpose of the Contract.
Party A and Guarantor:
□ Disagree (if Party A or Guarantor disagrees, Party B will not be able to provide this loan service).
□ Agree.
(Check either one; if neither is checked, it is deemed that Party A and Guarantor disagree).
Party B may provide the personal information of Party A and Guarantor and information on their credit-related dealings with Party B to the Joint Credit Information Center (JCIC) and persons commissioned by Party B in compliance with applicable regulations to handle matters on Party B’s behalf. However when the data and information of Party A and Guarantor provided to the aforementioned entities under their consent contains error, Party B should take the initiative to make correction or supply additional information and ask the aforementioned entities to restore the status quo, and send Party A or Guarantor a notice of the same.
If the information provided by Party A or Guarantor to Party B is stolen, leaked, altered or otherwise infringed by institutions or persons other than Party B, Party B shall notify Party A or Guarantor by an appropriate means as soon as possible, and if Party A or Guarantor asks Party B to furnish the flow of relevant information, promptly provide Party A or Guarantor with the list of institutions or persons that have access to such information.
Article 14 (Notice of Outsourcing of Collection Operation)
When Party A is late in repaying principal or interest, Party B may outsource its debt collection operation and notify Party A and Guarantor the same in writing before doing so. Such notice shall contain information on the name of outsourced collection service provider, collection amount, period of retention for tape-recorded collection record, and other relevant matters as required by applicable regulations.
Party B shall post the basic information of the outsourced debt collection service provider at its business places or on its website.
If Party B fails to send notice according to Paragraph 1 hereof or Party B’s outsourced service provider fails to perform the collection activities in accordance with applicable regulations, Party B shall be held jointly liable for damages incurred by Party A or Guarantor thereof.
Article 15 (Outsourcing of Business Operations)
Party B may, in accordance with applicable regulations set forth by the competent authorities, commission third parties (institutions) to handle the billing and payment operations, computer processing operation or other operations associated with the Contract.
Where Party B has outsourced its business operations according to the preceding paragraph, Party B shall urge and ensure that outsourced service providers will observe the confidentiality provisions set out in the Banking Act and other applicable regulations without disclosing relevant information to third parties.
When an outsourced service provider commissioned by Party B violates the Personal Information Protection Act that results in the personal information of Party A or Guarantor being illegally gathered, processed, or used, or the rights of Party A or Guarantor being otherwise infringed, Party A or Guarantor may seek damages from both Party B and the outsourced service provider.
Article 16 (Service Hotline)
Party B’s service hotlines are as follows:
□ Telephone:
□ Fax:
□ E-mail:
□ Website:
□ Others:
If there is any change to the aforementioned information, Party B shall post an announcement at its business places or on its website.
Article 17 (Provision of “Statement on Consumer Loan Handling Mechanism When the Deferred (Prepaid) Merchandise or Service Is No Longer Available”, except for other types of consumer loans)
When Party B offers loan for deferred (prepaid) merchandise or service, Party B shall inform Party A and Guarantor related rules and operating procedure in advance with a “Statement on Consumer Loan Handling Mechanism When the Deferred (Prepaid) Merchandise or Service Is No Longer Available” (see attached) at the time Party A applies for a loan, and the statement shall constitute a part of the Contract.
Article 18 (Court of jurisdiction)
If litigation arises out of this contract, the parties agree that Taiwan ________ District Court be the court of jurisdiction for the first instance. However, the application of Article 47 of Consumer Protection Act or Paragraph 2, Article 28 or Article 436-9 of the Code of Civil Procedure on small claim court may not be excluded.
Article 19 (Delivery of Contract)
The Contract is executed in ____ original copies , to be held each by the parties hereto, Guarantor and other related parties. If so requested or agreed by Guarantor and other related parties, Party B may deliver to them a photocopy of the Contract noted with the wording “Identical to the Original” by Party B and affixed with Party B’s contract seal.
Party A (Borrower): _________ (signature/seal)
□ Guarantor: _________(signature/seal)
Party B: _________
Date:
Statement on Consumer Loan Handling Mechanism When Deferred (Prepaid) Merchandise or Service Is No Longer Available
_________ Bank (the “Bank”) provides this statement pursuant to Article 17 of the Standard Form Contract for Unsecured Consumer Loan.
1. When Borrower applies to the Bank for discontinuation of payment on the consumer loan he/she has acquired from the Bank because the deferred (prepaid) merchandise or service he/she has purchased with the loan is no longer available, such application shall meet the following two conditions:
(1) The Bank has had a “strategic alliance”, “joint promotion” or other cooperative relationship with the deferred (prepaid) merchandise or service provider, and the Bank provided consumer loan service to Borrower for purchasing said merchandise or service; and
(2) The loan was disbursed in one of the following manners:
1. The consumer loan proceeds were directly disbursed into an account designated by the deferred (prepaid) merchandise or service provider; or
2. Prior to disbursement of loan proceeds, the Bank asked Borrower to fill out a withdrawal slip and disbursed the proceeds into Borrower’s own account, and then transferred the proceeds into an account designated by the deferred (prepaid) merchandise or service provider based on the previously filled withdrawal slip.
2. Borrower may not apply for discontinuation of payment on consumer loan as provided in the preceding point in case of any of the following situations:
(1) The merchandise or service provided is not the deferred (prepaid) type.
(2) The merchandise or service purchased is investment in nature (e.g. joining a franchise).
(3) The request for discontinuation of payment has to do with a dispute over the defect, gift, warranty or after-sale service of the merchandise or service.
(4) The deferred (prepaid) merchandise or service provider has provided consumers with contract performance guarantee according to law or the mandatory and prohibitory provisions of standard form contract.
3. The term “deferred (prepaid) merchandise or service is no longer available” referred to in Point 1 herein means one of the following circumstances:
(1) The deferred (prepaid) merchandise or service provider is declared bankrupcy by court.
(2) The business registration of the deferred (prepaid) merchandise or service provider has been revoked by the competent authority.
(3) The deferred (prepaid) merchandise or service provider is out of business as determined by the competent authority.
(4) The fact that the deferred (prepaid) merchandise or service provider can no longer provide merchandise or service is described in a court ruling.
(5) Other information or data suffice to show that the merchandise or service is no longer available.
4. Operating procedure for Borrower’s application for discontinuation of payment:
(1) Borrower makes an application:
A. When the fact is established that the deferred (prepaid) merchandise or service provider can no longer provide merchandise or service as agreed, Borrower should prepare the following support documents to apply to the Bank for discontinuation of payment before the payment deadline:
a. The purchase or service contract signed by Borrower and the deferred (prepaid) merchandise or service provider, or proof of purchase or receipt; and
b. Documents evidencing that the merchandise or service is no longer available, e.g. receipt and form indicating merchandise or service use record, membership card or IC card, class pass, phone bill, etc. (not required if Borrower is unable to provide such documents), and a legal attest letter sent by Borrower to the deferred (prepaid) merchandise or service provider, reminding the provider that Borrower has not been receiving the merchandise or service.
B. During the period from the time Borrower makes an application for discontinuation of payment to the time the application is being approved or denied, the Bank shall treat Borrower’s payable as a disputed transaction without submitting Borrower’s late payment record to the Joint Credit Information Center, nor shall the Bank demand payment from Borrower.
(2) Bank review:
The Bank will check and verify based on the written documents and other information furnished by Borrower whether Borrower’s case meets any of the circumstances provided in (1) ~ (5) of Point 3 herein.
A. If the application is approved:
a. The Bank will calculate the amount Borrower is not obligated to pay based on the proportion of undelivered merchandise or service. However Borrower shall still pay for the portion of merchandise or service that he/she has received.
b. When the proportion of undelivered merchandise or service cannot be calculated (e.g. lifetime membership, guaranteed class of learning center, neither Borrower nor the bank is able to provide support documents for calculating the proportion of undelivered merchandise or service, etc.), the time when Borrower makes the application for discontinuation of payment will be used as a reference point, and Borrower is not obligated to pay the unpaid installments after that reference point. However if there is new evidence later on showing that Borrower has continued to receive the deferred (prepaid) merchandise or service, Borrower is obligated to continue the payment of loan principal and interest.
B. If the application is denied:
a. The Bank shall send Borrower a notice with the valid reason for denying his/her application noted.
b. After receiving the aforementioned notice, Borrower shall forthwith pay the payment due, and pay interest calculated based on the agreed rate provided in the loan contract starting from the next day following the original payment deadline.
c. The Bank can resume the demand for payment. If the Bank sends Borrower a demand letter but Borrower fails to make payment, the Bank may submit Borrower’s late payment record to the Joint Credit Information Center.
5. If Borrower’s loan is already delinquent or the Bank has taken collection action against Borrower when Borrower applies for discontinuation of payment, Borrower is still entitled to apply to the Bank according to the agreement under this Statement. However Borrower is also obligated to pay overdue loan payments occurred before the merchandise or service becomes unavailable.
6. Borrower understands and declares that unless there is a situation as agreed under this Statement that allows him/her to apply for discontinuation of payment, when Borrower and the deferred merchandise or service provider have dispute over the quality, quantity or amount of the merchandise or service, Borrower should seek resolution with the merchandise or service provider and shall not use such dispute as a defense for not paying the Bank payment due.
7. Where Borrower or the guarantor fails to pay payment due in a timely manner in accordance with the agreement under the loan contract and this Statement, the Bank has the discretion to register relevant information with the Joint Credit Information Center according to law. Borrower and the guarantor understand that this may affect their ability to apply for other loans in the future.
Borrower and the guarantor hereby state that they have received and carefully read this Statement.
Borrower: (signature or seal)
Citizen ID No.:
the guarantor: (signature or seal)
Citizen ID No.:
Date:
(This Statement has ____ counterparts. The Bank will save one copy, and the rest will be given to Borrower and the guarantor for record).
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