RMB liquid fund loan contract is the appellation given to a legal contract in which two business entities enter into legally binding arrangement wherein one entity advance some funds to another entity in the People’s Republic of China. In other word it is provision under the laws of People’s Republic of China under which a company can avail funds from a designated financial institution to meet its business obligations and tide over liquidity crunch. Before entering into any such agreement it is prime responsibility of both the parties to go through a diligent evaluation and negotiation stage so as to avoid any issues or conflicts in future.
A well drafted RMB liquid fund contract should throw clear light on points such as the amount of loan, the purpose for which the loan is being availed, the term of loan, the interest rate of loan, the repayment installments and plan, penalty clause if any, he course of action to be followed by creditor in case of default on part of the debtors and rights of both the debtors and creditors.
RMB Liquid Fund Loan Contract
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