(Translation)
Mortgage Contract
No. J.K.D.2015—032
J.K.J.2015—095, hereinafter referred to as the main contract) signed by Min LI (borrower) and Party A on August 13, 2015, Party B is willing to u the property owned or disposable according to laws as mortgage; Through verification, Party A agrees to accept the property mortgage of Party B;
According to relevant laws and regulations, bad on mutual negotiations, Party A and Party B make agreement in the following articles:
Article 1 Collateral of Party B
Party B us the property in the List of Collateral (appendix) for mortgage. Party B guarantees its ownership or right of disposal according to laws.
Article 2 Method of Mortgage Guarantee
1. When the debt stipulated in the main contract is due, the guarantee responsibility of the loan provided by Party A to Party B yet not repaid by Party B is ascertained according to the scope of mortgage guarantee in Article 3 of this contract; before the debt stipulated in the main contract is due, if Party A conducts recour on the borrower in advance according to the main contract, Party B shall also take the guarantee responsibility with the collateral.
2. If Party A and Party B (or borrower) make written agreement of extending duration on the debt duration, interest rate, amount and etc. stipulated in the main contract, or Party A makes an adjustment in the interest rate according to the main contract during the debt duration stipulated in the main contract, it is not necessary to
get connt from Party B or to inform Party B and Party B agrees to all, then the mortgage guarantee responsibility undertaken by Party B shall not be affected.
Article 3 Scope of Mortgage Guarantee
The scope of mortgage guarantee includes the entire principal stipulated in the main contract, interest, overdue interest, penalty interest, compound interest, default fine, compensation for loss, all charges to enforce the mortgage right and realize the creditor’s rights (including but not limited to legal costs, arbitration fees, costs of prervation, announcement fees, asssment fees, appraisal charges, auction costs, travel expens, communication expens, counl fees and etc.) and all other payable expens of the debtor in the main contract.
Article 4 Custody of Ownership Certificate and Registration
of the Collateral
Party B shall deliver ownership certificate of the collateral to Party A on the date of contract signing, and both parties agree that within 2 days after the contract is signed, Party B shall unconditionally assist Party B with relevant mortgage registration procedures. Ownership certificate of the collateral shall be in the custody of Party A during mortgage period.
Article 5 When there are other mortgage guarantee, pledge guarantee or guarantees in the creditor’s rights of Party A, if Party A gives up or removes other mortgage guarantee and pledge guarantee or dismiss guarantee responsibility of guarantees, Party B shall still take mortgage guarantee responsibility regarding Party A according to articles stipulated in this mortgage contract.
If Party A suspends granting the loan that has not been granted or collects granted loan in advance bad on the articles in the main contract, the guarantee responsibility undertaken by Party B according to this contract shall not be affected.
Article 6 Cost Bearing
Relevant costs stipulated in this contract such as asssment fees, insurance premium, appraisal charges, registration fees, custody charges and etc.
Article 7 Custody of the Collateral
1. During the mortgage period, the collateral shall be in custody of Party B or the entrusted agent of Party B; Party B and the entrusted agent of Party B shall maintain proper custody of the collateral and have the obligation of repair, maintenance and keeping it intact and shall accept the inspection of Party A at any time.
The mortgage period refers to the period from the day this contract comes into effect to the expiration day of statute of limitations of creditor’s rights stipulated in the Loan Contract.
2. During the mortgage period, Party B shall not take any actions that will reduce the value of the collateral; if such actions occur, Party A has the right to demand Party B to stop and recover the value of the collateral, or to provide new collateral accepted by Party A within 2 days after Party A informs Party B. Costs resulted from the recovery of the collateral of providing new collateral shall be undertaken by Party B.
3. Party B shall purcha property insurance for the collateral during the mortgage period, and the first beneficiary of the property insurance shall be Party A. Insurance documents shall be in custody of Party A. During the mortgage period, if loss within the insurance scope of the collateral occur or the value of the collateral is reduced becau of the actions of the third party, insurance compensation or compensation for loss shall be ud to liquidate the debt stipulated in the main contract in advance or shall be deposited by Party B in the account appointed by Party A, and Party B shall not u during the mortgage period.
Article 8 During the mortgage period, if the collateral caus environmental pollution or other damages, Party A alone shall take the responsibility.
Article 9 During the mortgage period, without written connt from Party A, Party B shall not give away, remove, rent, transfer, remortgage or dispo in other ways the collateral stipulated in this contract.
Article 10 During the mortgage period, with written connt from Party A, payment received from the transfer of the collateral by Party B shall be ud to liquidate the mortgaged creditor’s rights of Party A in advance.
Article 11In the expiration of the time limit of the main contract, if the borrower cannot liquidate the debt, Party B has the right to discount the collateral or take priority in compensation with the payment from the auction or lling off of the collateral.
Article 12 Party A has the right to realize the mortgage right through disposal of the collateral in advance, suspend the grant of loan stipulated in the main contract or collect the principal and interest of the granted loan stipulated in the main contract in advance when one of the following circumstances occur:
1. There are defaults of the articles or agreement stipulated in the main contract made by the borrower;
2. There are violations of in the agreed responsibility stipulated in Article 4, Article 7, Article 8, Article 9 and Article 10 of this contract or other actions of default; or Party B fails to fulfill resposibilities stipulated in this contract.
3. When Party B is a legal person or other organizations, situations that will affect its ability to liquidate debts or lack of good faith in debt liquidation occur such as suspension of business, suspension or annulment of business licen, application or
being applied for bankruptcy, dissolution and etc.
4. When Party B is a natural person, death without heirs or devies occurs;
5. When Party B is a natural person, heirs or devies of Party B give up the inheritance or bequest and refu to fulfill the obligation of repaying loan principal and interest;
6. Other events that will endanger the realization of creditor’s rights of Party A stipulated in the main contract.
Article 13 Responsibility for Breach of Contract
1. If Party B violates Article 7 of the contract through reduction in the value of the collateral resulting from the carelessness in the repair and management of the collateral, or actions of Party B directly endanger the collateral and result in the reduction in the value of the collateral, Party A has the right to demand Part B to immediately stop the violating actions towards the mortgage right of Party A, to demand Party B to provide other collateral accepted by Party A, and to dispo the collateral in advance.
2. If Party B violates Article 9 of the contract and arbitrarily dispos the collateral, the action is not valid; Party A has the right to demand Part B to immediately stop the violating actions towards the mortgage right of Party A, to demand Party B to provide other collateral accepted by Party A;
3. If Party B conceals the fact that the collateral is involved in co-ownership, disputes, al-up, impoundment, rent, existing mortgage, legal priority right with lower mortgage right (including but not limited to priority right of construction project payment) or no ownership or disposal right of Party B and etc., Party A has the right to demand Party B to provide other collateral/ pledge property accepted by Party A;
4. When any of the above circumstances violating the contract occurs, if Party B fails to provide othe
r collateral according to the requirements of Party A, Party B shall pay Party B a default fine amounting to 20% of the loan principal stipulated in the main contract. If economic loss are caud to Party A, Party B shall compensate Party A for all the economic loss.
Article 14 Payment from Exerci of the Mortgage Right by Party A Shall be Assigned in Priority of the Following Order:
1. Payment of charges related to the exerci of the mortgage right;
2. Liquidation of interest payable by the borrower to Party A;
3. Liquidation of loan principal, default fine (including penalty interest), compensation and etc. payable by the borrower to Party A;;
4. Payment of other cost.
Article 15 Delivery
Except for other agreement, both parties designate the communication method and contact address stipulated in the contract as the basis, and any written notification delivered to the address shall be c
onsidered effective arrival. Party B shall promi that if there is any change in the communication method and contact address, Party A will be notified in the written form within three days after the change. If either party fails to notify the other party about the change in the communication method or contact address according to the agreement resulting in this party not receiving the notification from the other party, this party shall undertake corresponding conquences by itlf.
The signing of personnel authorized by Party B or arranged by Party A for come-and-go files, legal papers or relevant notifications shall be regarded as the arrival to Party B, except that Party B explicitly notifies Party A in the written form that the personnel is not entitled to sign the come-and-go files, legal papers or relevant notifications.
Article 16 Terms of Compulsory Execution
1. Party A and Party B both confirm that according to relevant laws and regulations, they have specific understanding of the definition, content, procedure and effect of notarization that gives compulsory execution effect, and through conscious consideration, all parties agree to apply to the notarization authority for notarization and give this contract effect of compulsory execution.
2. Party B promis to accept compulsory execution according to laws when failing to fulfill or compl
etely fulfill obligation of repayment stipulated in the contract; Party B gives up the right of pleadings.
3. When Party B fails to fulfill relevant obligations stipulated in the contract, Party A has the right to conduct collection and interpellation to Party B through mail delivery, telephone notification, announcement delivery and etc. Party B shall fulfill relevant obligations stipulated in the contract within three days after the collection and interpellation of Party A. If Party B still fails to fulfill relevant obligations stipulated in the contract, Party A has the right to apply to notarization authority for execution certificate.
4. Agreed items in advance about the verification contents and methods of the notarization authority before the Execution Certificate is issued: if Party B fails to fulfill or completely fulfill guarantee responsibility, Party A provides the notarization authority with evidence of Party B’s failure of fulfillment. Bad on the application of Party A, before the Execution Certificate is issued, the notarization authority verifies the fact of Party B’s failure of fulfillment or proper fulfillment of guarantee responsibility through letters or telephones (faxes) according to the contact address or contact telephone stipulated in the contract before. Party B shall substantially respond to the verified contents made by the notarization authority within five days according to the requirements of the notarization authority, otherwi no disagreement from
