中國銀行業監督管理委員會令（2003年第4號）

 (English version available)

《汽車金融公司管理辦法》已經國務院批準，現予以印發施行。

美妙時光產權酒店 紫光臺式電腦 小戶型主陣容揭曉 多媒體互動學英語

主席：劉明康

二OO三年十月三日

汽車金融公司管理辦法

第一章  總則

第一條  為適應汽車金融服務業發展的需要，規范經營汽車金融業務的非銀行金融機構的行為，依據有關法律、行政法規，制定本辦法。

第二條  本辦法所稱汽車金融公司，是指經中國銀行業監督管理委員會依據有關法律、行政法規和本辦法規定批準設立的，為中國境內的汽車購買者及銷售者提供貸款的非銀行金融企業法人。

第三條  中國銀行業監督管理委員會負責對汽車金融公司的監督管理。

第二章  機構的設立、變更與終止

第四條  設立汽車金融公司應當經中國銀行業監督管理委員會批準。

未經中國銀行業監督管理委員會批準，任何單位和個人不得擅自設立汽車金融公司或者變相從事汽車金融業務,不得在機構名稱中擅自使用“汽車金融”、“汽車信貸”等表明從事汽車金融業務的字樣。

第五條  出資設立汽車金融公司，出資人應具備下列條件： 

（一） 中國境內外依法設立的企業法人。

非金融機構，其最近一年的總資產不低于40億元人民幣或等值的自由兌換貨幣，年營業收入不低于20億元人民幣或等值的自由兌換貨幣；

非銀行金融機構，其注冊資本不低于3億元人民幣或等值的自由兌換貨幣。

（二）經營業績良好，最近3年連續盈利。

（三）遵守注冊所在地法律，無違法、犯罪行為。

（四）主要出資人須為汽車企業、非銀行金融機構。

汽車企業是指生產或銷售汽車整車的企業。

主要出資人是指出資數額最多且出資額不得低于擬設汽車金融公司全部股本30%的出資人。

（五）同一企業法人不得投資一個以上的汽車金融公司。

（六）中國銀行業監督管理委員會規定的其他審慎性條件。

 第六條  設立的汽車金融公司，應當具備下列條件:

（一）具有符合本辦法要求的最低注冊資本。

（二）具有符合《中華人民共和國公司法》等相關法律和本辦法要求的章程。

（三）具有熟悉汽車融資及相關業務的高級管理人員。

（四）具有健全的組織機構、管理制度和風險控制制度。

（五）具有與業務經營相適應的營業場所、安全防范措施和其他設施。

（六）中國銀行業監督管理委員會規定的其他條件。

第七條  汽車金融公司注冊資本的最低限額為 5億元人民幣或等值的自由兌換貨幣。注冊資本為實繳貨幣資本。

中國銀行業監督管理委員會根據汽車金融業務發展情況及審慎監管的需要，可以調整注冊資本的最低限額，但不得少于前款規定的限額。

第八條  汽車金融公司的設立須經過籌建和開業兩個階段。 申請人提交的申請籌建、申請開業的資料，應以中文書寫為準。

第九條  申請籌建汽車金融公司，應由主要出資人作為申請人向中國銀行業監督管理委員會提交下列資料:

(一) 籌建申請書。其內容應包括擬設汽車金融公司名稱、公司注冊所在地、注冊資本金，出資人及各自的出資額、業務范圍等。

(二) 設立汽車金融公司的可行性研究報告。其內容包括對擬設公司的市場前景分析、未來業務發展規劃、組織管理架構和風險控制能力分析、公司開業后3年的資產負債規模和盈利預測等內容。

(三) 擬設立汽車金融公司的章程（草案）。

(四) 出資人基本情況，包括出資人名稱、法定代表人、注冊地址、營業執照復印件、經營情況等。

(五)出資人最近3年經法定機構審計的資產負債表、損益表和現金流量表。

(六) 籌建負責人名單及簡歷。

(七) 中國銀行業監督管理委員會要求提交的其他文件。

申請人為外國非銀行金融機構的，申請籌建時應提供其注冊地金融監管當局出具的書面意見。申請人為非金融機構的，申請籌建時應提供評級機構對申請人最近1年的信用評級報告。

 第十條  中國銀行業監督管理委員會自收到完整的籌建申請資料之日起6個月內作出是否批準籌建的書面答復。

第十一條  申請人應當自接到中國銀行業監督管理委員會批準籌建文件之日起6個月內完成籌建工作。有正當理由需要延長籌建期限的，應當在籌建期限屆滿前書面向中國銀行業監督管理委員會提出申請，經批準可以延長3個月。

籌建期限屆滿或延長期限屆滿，申請人未提出開業申請的，原籌建批準決定自動失效。

籌建期內不得以汽車金融公司名義從事經營活動。

第十二條  申請人應當在籌建期限屆滿前或延長期限屆滿前，向中國銀行業監督管理委員會提出開業申請，并提交下列文件、資料:

(一) 籌建工作完成情況報告和申請開業報告。

(二) 中國法定驗資機構出具的驗資證明、工商行政管理機關出具的對擬設機構名稱的預核準登記書。

(三) 汽車金融公司章程。

(四) 擬任高級管理人員的名單、詳細履歷。

(五) 股東名稱及其出資額。

(六) 擬辦業務的規章制度及內部風險控制制度。

(七) 有權部門出具的營業場所及其他與業務有關設施安全驗收合格文件。

(八) 中國銀行業監督管理委員會要求的其他文件。

第十三條  中國銀行業監督管理委員會自收到完整的開業申請文件、資料之日起3個月內作出核準開業或不核準開業的決定。決定核準開業的，書面通知申請人，頒發經營金融業務許可證，核準其業務范圍。不予核準開業的，應書面通知申請人并說明理由。

申請人憑該許可證到工商行政管理部門辦理注冊登記，領取《企業法人營業執照》后方可營業。

汽車金融公司自領取營業執照之日起，無正當理由3個月不開業或開業后自行停業連續6個月的，由中國銀行業監督管理委員會收回其許可證，并予以公告。

第十四條 汽車金融公司不得設立分支機構。

第十五條  中國銀行業監督管理委員會對汽車金融公司高級管理人員實行任職資格核準或備案制度。

汽車金融公司董事長、總經理及副總經理、董事和財務總監等的任職資格應當報經中國銀行業監督管理委員會審查核準。有關高級管理人員的任職資格及其核準或備案程序另行規定。

第十六條  汽車金融公司有下列變更事項之一的，應報經中國銀行業監督管理委員會批準:

(一) 變更公司名稱。

(二) 變更注冊資本。

(三) 變更營業場所。

(四) 調整業務范圍。

(五) 改變組織形式。

(六) 調整股權結構。

(七) 修改章程。

(八) 更換高級管理人員。

(九) 合并或分立。

(十) 中國銀行業監督管理委員會規定的其他變更事項。

第十七條  汽車金融公司因解散、依法被撤銷或被宣告破產而終止的，其清算事宜，按照有關法律法規的規定辦理。

第三章  業務范圍和監督管理

第十八條  經批準，汽車金融公司可從事下列部分或全部人民幣業務：

（一）接受境內股東單位3個月以上期限的存款。

（二）提供購車貸款業務。

（三）辦理汽車經銷商采購車輛貸款和營運設備貸款（包括展示廳建設貸款和零配件貸款以及維修設備貸款等）。

（四）轉讓和出售汽車貸款應收款業務。

（五）向金融機構借款。

（六）為貸款購車提供擔保。

（七）與購車融資活動相關的代理業務。

（八）經中國銀行業監督管理委員會批準的其他信貸業務。

第十九條  汽車金融公司向自然人發放購車貸款應符合有關監管部門關于個人汽車貸款管理的規定；向法人或其他組織發放汽車貸款應遵守《貸款通則》等有關規定的要求。

第二十條 未經有關監管部門批準，汽車金融公司不得擅自發行債券、向境外借款。汽車金融公司設立和開展業務中涉及匯兌管理、利潤匯出、向非居民發放汽車消費貸款、資本金管理等外匯管理事項的，由有關監管部門會同國家外匯管理部門作出相關規定。

第二十一條  汽車金融公司應實行資本總額與風險資產比例控制管理。汽車金融公司資本充足率不得低于10%，中國銀行業監督管理委員會視汽車金融公司風險狀況和風險管理能力，可提高單個公司資本充足率的最低標準。有關其他各類資產風險控制與管理的具體要求，由中國銀行業監督管理委員會另行規定。

第二十二條  汽車金融公司應當執行相關的金融企業財務會計制度。

第二十三條  汽車金融公司應按規定編制并向中國銀行業監督管理委員會報送資產負債表、損益表、現金流量表及中國銀行業監督管理委員會要求的其他報表，并于每年會計年度終了后的3個月內報送上一年度的財務會計報告。

汽車金融公司不得提供虛假或隱瞞重要事實的財務會計報告。

第二十四條  汽車金融公司應參照中國人民銀行制定的《商業銀行內部控制指引》的要求，建立、健全各項業務管理制度與內部控制制度，并在該制度施行前報告中國銀行業監督管理委員會。

第二十五條  汽車金融公司應自覺接受中國銀行業監督管理委員會對其實施的現場檢查及非現場檢查。

第二十六條  中國銀行業監督管理委員會根據日常監管中發現的問題，可以向汽車金融公司的法定代表人和其他高級管理人員提出質詢，并責令該公司限期改正。

第二十七條  汽車金融公司應建立定期外部審計制度。應在每個會計年度結束后的6個月內，將經法定代表人簽名確認的年度審計報告報送中國銀行業監督管理委員會。

第二十八條  汽車金融公司出現支付困難等緊急情況時，應采取緊急自救措施，并立即向中國銀行業監督管理委員會報告。

第二十九條  汽車金融公司出現下列情況之一的，中國銀行業監督管理委員會可視情況責令其進行整頓：

（一） 當年虧損超過注冊資本的50%或連續3年累計虧損超過注冊資本的30%。

（二） 出現支付困難。

（三） 有其他重大經營風險，中國銀行業監督管理委員會認為應當整頓的情況。

第三十條  中國銀行業監督管理委員會責令汽車金融公司整頓后，可對汽車金融公司采取下列措施：

（一） 要求更換或禁止更換汽車金融公司高級管理人員。

（二） 暫停其部分業務或禁止其開辦新業務。

（三） 要求在規定期限內增加資本金。

（四） 責令汽車金融公司進行改變股權結構等形式的重組。

（五） 禁止分紅。

（六） 中國銀行業監督管理委員會認為必要的其他措施。

第三十一條  汽車金融公司經過整頓，符合下列條件的，報經中國銀行業監督管理委員會批準后方可結束整頓：

（一） 支付能力得到恢復。

（二） 虧損得到彌補。

（三） 重大經營風險得到化解。

第三十二條  汽車金融公司整頓時間最長不超過1年，逾期未實現整頓目標的，依法予以市場退出。

第三十三條  汽車金融公司可成立行業性自律組織，實行自律管理。自律組織開展活動，應當接受中國銀行業監督管理委員會的指導和監督。

第四章 法律責任

第三十四條  未經中國銀行業監督管理委員會批準，擅自設立汽車金融公司或者非法從事汽車金融業務的，由中國銀行業監督管理委員會依法予以取締；構成犯罪的，依法追究刑事責任；尚不構成犯罪的，由中國銀行業監督管理委員會沒收非法所得，并處非法所得1倍以上5倍以下的罰款；沒有非法所得的，由中國銀行業監督管理委員會責令改正，并處10萬元以上50萬元以下的罰款。

第三十五條 未經中國銀行業監督管理委員會批準，擅自在機構名稱中使用“汽車金融”、“汽車信貸”等表明從事汽車金融業務字樣的，由中國銀行業監督管理委員會責令其改正，并處1000元罰款。

第三十六條  汽車金融公司超出中國銀行業監督管理委員會批準的業務范圍從事金融業務活動的，給予警告，沒收違法所得，并處違法所得1倍以上 5倍以下的罰款；沒有違法所得的，處10萬元以上50萬元以下的罰款；構成非法經營罪或者其他罪的，依法追究刑事責任。 

第三十七條  汽車金融公司違反本辦法有關規定，提供虛假或者隱瞞重要事實的財務會計報告的，由中國銀行業監督管理委員會予以警告，并處10萬元以上50萬元以下的罰款；構成提供虛假財會報告罪或者其他罪的，依法追究刑事責任。

第三十八條  汽車金融公司違反本辦法有關規定，拒絕、阻礙依法監督檢查的，由中國銀行業監督管理委員會給予警告，并處1萬元以上3萬元以下的罰款。

第三十九條  汽車金融公司違反本辦法規定，除依據本章第三十四條至第三十八條的有關規定給予處罰外，情節嚴重的，中國銀行業監督管理委員會可以取消該公司高級管理人員1至10年直至終身的金融機構高級管理人員任職資格。

第四十條  汽車金融公司違反我國其他法律、法規的，由有關主管機關依法處理。

第五章  附則

第四十一條  香港特別行政區、澳門特別行政區和臺灣地區投資者在內地設立汽車金融公司，適用本辦法。

第四十二條  本辦法自2003年10月3日起施行，并由中國銀行業監督管理委員會負責解釋。

China Banking Regulatory Commission No. 4 Order

Upon the approval of the State Council, the Administrative Rules Governing the Auto Financing Company is now promulgated by the China Banking Regulatory Commission.

Chairman   Liu Mingkang

October 3, 2003

Administrative Rules Governing the Auto Financing Company

Chapter I       General Provisions

Article 1   The Administrative Rules Governing the Auto Financing Company (hereinafter referred to as the Rules) is stipulated in accordance with relevant laws and regulations to serve the need of developing auto financing business and regulating the business activities of the non-bank financial institutions engaging in auto financing business.

Article 2      Auto financing companies referred to in the Rules are defined as non-bank financial legal entities charted by the China Banking Regulatory Commission in compliance with relevant laws, regulations and the Rules to provide loans for auto buyers and dealers in the mainland of China.

Article 3   Auto financing companies are supervised and regulated by the China Banking Regulatory Commission.

Chapter II      Incorporation, Change and Termination

Article 4      The establishment of an auto financing company shall be subject to the approval of the China Banking Regulatory Commission.

Without the approval of the China Banking Regulatory Commission, no individual or entity shall be allowed to establish an auto financing company, or engage in auto financing business, or include in the name of a company such names as “auto financing” or “auto loan” that indicate the company’s engagement in auto financing business

Article 5      An investor of an auto financing company shall satisfy following requirements:

(a)  It shall be a corporate legal entity incorporated in and     outside China.

If the investor is a non-financial entity, its total assets of the previous year shall be no less than RMB4 billion yuan or an equivalent amount in convertible currencies; its annual business revenue of the previous year shall be no less than RMB2 billion yuan or an equivalent amount in convertible currencies.

If the investor is a non-bank financial institution, its registered capital shall be no less than RMB300 million yuan or an equivalent amount in convertible currencies;

(b) It shall have sound business performance and remain profitable for the last three consecutive years;

(c)  It shall comply with the laws of the countrieserehwit is incorporated and shall have a clean record;

(d) In case of the largest investor, it shall be an auto enterprise or a non-bank financial institution.

The auto enterprise refers to an enterprise that manufactures and sells the whole unit of an automobile.

The largest investor refers to the investor with the largest share of capital and its capital contribution accounting for no less than 30 percent of the total equity of the auto financing company;

(e)  It shall not invest in more than one auto financing company; and

(f)   It shall satisfy other prudential supervisory requirements set forth by the China Banking Regulatory Commission.

Article 6      An auto financing company shall satisfy the following conditions inpuorg to be incorporated:

a)       the minimum amount of registered capital required by the Rules;

b)      Articles of Association that complies with relevant laws including the Company Law of the People’s Republic of China and the Rules;

c)       senior management familiar with auto financing and other related business;

d)      a sound organizational structure, management and risk control systems;

e)       proper business premises, safety measures and other facilities for business operations; and

f)        other conditions set out by the China Banking Regulatory Commission.

Article 7      The minimum registered capital of an auto financing company shall be no less than RMB500 million yuan or an equivalent amount in convertible currencies. Registered capital shall be paid-in capital.

The China Banking Regulatory Commission shall have the power to adjust the minimum registered capital of an auto financing company in line with the developments of auto financing business and the prudential requirements, but the adjusted floor shall not be lower than the amount provided in this Article.

Article 8      The establishment of an auto financing company shall cover two stages, i.e. the preparation stage and the business commencement stage. The Chinese text of all application documents for the preparation and the business commencement stages shall prevail.

Article 9      To apply for the preparation of a prospective auto financing company, the largest investor of the company shall act as the applicant and submit the following documents to the China Banking Regulatory Commission:

(a)    an application letter, including the auto financing company’s name, location of incorporation, registered capital, business scope and investors’ names and amounts of investment, etc.;

(b)   a feasibility study on establishing the auto financing company, including a market analysis, a business plan, the organizational structure, an assessment of the company’s risk control capability, the proforma balance sheet and profits in the following three years after the business commencement;

(c)    an Articles of Association of the auto financing company (a draft note);

(d)   basic information of each investor of the auto financing company, including name, legal representative, location of incorporation, a photocopy of the business license and a summary of business performance, etc.;

(e)    the investor’s balance sheet, profit and loss statement and cash flow statement for the latest three years audited by qualified auditing firms;

(f)     name and resume of the person in charge of the preparation; and

(g)    other documents required by the China Banking Regulatory Commission.

If the applicant is a foreign non-bank financial institution, it shall submit the consent of its home country supervisory authority in writing. If the applicant is a non-financial entity, it shall submit the credit rating report of the previous year by a rating agency.

Article 10      The China Banking Regulatory Commission, upon receiving a complete set of application documents for the preparation of an auto financing company, shall provide its decision of approval or denial in writing within six months.

Article 11      The applicant shall, upon receiving the approval letter from the China Banking Regulatory Commission, complete the preparation within six months. If the applicant has justification for prolonging the preparation stage beyond the prescribed period, it shall submit a written application to the China Banking Regulatory Commission before the original deadline falls due, and may extend the preparation stage for up to three months subject to the approval.

If the applicant fails to apply for business commencement upon the completion of the preparation stage or the extended preparation stage, the original approval document for the preparation shall become void automatically.

During the preparation stage, the applicant shall not conduct any auto financing business.

Article 12 The applicant shall, before the deadline of the preparation stage or the extended preparation stage, apply for business commencement to the China Banking Regulatory Commission with the following attachments:

(a)  a report on completion of the preparation and an application    letter for business commencement;

(b) a certification of paid-in capital issued by a qualified Chinese certifying agency, and a registration certificate issued by the State Administration of Industry and Commerce;

(c)  articles of Association of the auto financing company;

(d) names and detailed resumes of proposed senior managerial personnel;

(e)  name and capital contribution of each shareholder;

(f)   proposed business rules and procedures and internal controls;

(g)  verification documents on business premises and other business-related facilities issued by relevant authorities; and

(h)  other documents required by the China Banking Regulatory Commission.

Article 13      The China Banking Regulatory Commission, upon receiving a complete set of business commencement application documents, shall provide its decision of approval or denial of the application within three months. If the application is approved, the applicant shall receive a written approval letter attached with a license to conduct financial business with the prescribed business scope. If the application is denied, the applicant shall receive a written notice in which reasons for denial are provided.

The applicant shall, before commencing operations, register with the State Administration of Industry and Commerce with the presentation of the license to conduct financial business, and receive a corporate legal entity business License.

The China Banking Regulatory Commission shall revoke the license to conduct financial business and issue a public notice of the revocation if the auto financing company, after receiving the business license, fails without justification to open business within three months, or, without approval, stops operation for six consecutive months after business commencement.

Article 14      An auto financing company shall not set up any branch or subsidiary.

Article 15      The appointment of the senior managerial personnel of an auto financing company shall be either subject to the qualification review by the China Banking Regulatory Commission or filed with the China Banking Regulatory Commission for record.

The chairman of the board of directors, general manager and deputy general manager, executive directors, and chief financial officer of an auto financing company are subject to the qualification view by the China Banking Regulatory Commission. The qualifications of these senior managerial personnel and procedures relating to qualification review and filing for record shall be issued separately.

Article 16      An auto financing company, in case of any of the following changes, shall seek the approval of the China Banking Regulatory Commission:

(a)  change of company name;

(b) change of registered capital;

(c)  change of business premises;

(d) change of business scope;

(e)  change of organizational structure;

(f)   change of equity structure;

(g)  revision of Articles of Association;

(h)  change of senior managerial personnel;

(i)    merger or split; and

(j)    other changes that require the approval of the China Banking Regulatory Commission.

Article 17      The liquidation of an auto financing company whose operation is terminated because of dissolution, closure or bankruptcy, shall be carried out in compliance with relevant laws and regulations.

Chapter III Business Scope and Supervision

Article 18      An auto financing company may conduct all or part of the following lines of Renminbi business with the approval of the China Banking Regulatory Commission:

(a)   taking deposits with maturity of no less than three months from its shareholders in the mainland of China;

(b)  extending loans for auto purchase;

(c)   extending loans to auto dealers for purpose of purchasing automobiles or facilities for operations (including the show-room construction, purchase of spare parts and equipment repairs);

(d)  transferring and selling auto loan receivables;

(e)   borrowing from financial institutions;

(f)    providing guarantee for auto purchase financing;

(g)   agency business relating to auto purchase financing; and

(h)   other loan business approved by The China Banking Regulatory Commission.

Article 19 An auto financing company, in case of extending loans to a natural person for auto purchase, shall observe relevant rules governing the auto loans to individual buyers promulgated by the relative supervisory authority. In case of extending auto loans to a legal entity or other organizations, an auto financing company shall observe relevant rules set out by General Provisions of Loans and other regulations.

Article 20      An auto financing company, without the approval of relevant regulatory authorities, shall not issue bonds or borrow funds from overseas. When an auto financing company’s establishment and business operations involve currency exchange, outward repatriation of profits, provision of auto loans for non-residents, capital management or other business transactions relating to foreign exchange administration, the company shall be subject to relevant regulations to be jointly issued by relative regulatory authorities and the State Administration of Foreign Exchange.

Article 21      An auto financing company shall meet the requirement on the capital to risk assets ratio, and the capital adequacy ratio shall not be less than ten percent. The China Banking Regulatory Commission may increase the minimum requirement of capital adequacy ratio of an individual company in line with the company’s risk profile and risk management capability. Other requirements on risk control and management relating to various kinds of assets shall be issued separately by the China Banking Regulatory Commission.

Article 22      An auto financing company shall adopt relevant accounting rules for financial institutions.

Article 23      An auto financing company shall compile in required format and submit to the China Banking Regulatory Commission the balance sheet, the profit and loss Statement, the cash flow statement and other statements required by the China Banking Regulatory Commission, and submit the financial statements of the previous year within three months after the end of each accounting year.

An auto financing company shall not provide false financial statements, or statements in which important facts are concealed.

Article 24      An auto financing company shall establish and improve various business management systems and internal controls in line with Guidelines on Strengthening Internal Controls of Commercial Banks issued by the People’s Bank of China, and report the systems to the China Banking Regulatory Commission before their implementation.

Article 25      An auto financing company shall accept the on-site examination and the off-site surveillance by the China Banking Regulatory Commission.

Article 26      The China Banking Regulatory Commission may call the legal representatives or other senior managerial personnel of an auto financing company for inquiriesotniproblems discovered during regular examinations, and demand the company to correct within a prescribed time frame.

Article 27      An auto financing company shall establish a system of external audit on a regular basis and submit to the China Banking Regulatory Commission annual auditor’s report signed by the company’s legal representative within six months after the end of each accounting year.

Article 28      An auto financing company, in case of encountering payment difficulties or other emergencies, shall take remedial actions, and promptly report to the China Banking Regulatory Commission.

Article 29      The China Banking Regulatory Commission shall demand remedial actions by an auto financing company in case of the following circumstances:

(a)  The company suffers from a loss in the current year of above    50 percent of the registered capital or losses in the last three consecutive years of above 10 percent of the registered capital;

(b) The company is in payment difficulties; and

(c)  The company faces other major operational risks that the China Banking Regulatory Commission deems necessary to issue anpuorgfor corrective actions.

Article 30      The China Banking Regulatory Commission, after issuing anpuorgfor corrective actions to an auto financing company, may take the following enforcement actions:

(a)    demanding or prohibiting the change of the company’s senior managerial personnel;

(b)   suspending part of the company’s business or prohibiting the company’s engagement in new business lines;

(c)    demanding an increase of the company’s capital within a prescribed time frame;

(d)   demanding the company to change its equity structure or implement other forms of restructuring;

(e)    prohibiting the dividend distribution; and

(f)     other enforcement actions that the China Banking Regulatory Commission deems necessary.

Article 31      An auto financing company, when receiving anpuorgfor remedial actions, shall not resume normal business operations until the following conditions are met and are approved by the China Banking Regulatory Commission:

(a)   Solvency is restored;

(b)  Losses are covered; and

(c)  Major operational risks are addressed.

Article 32      The maximum time limit that an auto financing company is allowed for corrective actions shall not exceed one year. If the company fails to meet the objectives of remedial actions within the prescribed time limit, its operation shall be terminated in accordance with relevant laws and regulations.

Article 33      Auto financing companies may establish a trade association for self-regulation purposes. The activities of the trade association are subject to the guidance and oversight of the China Banking Regulatory Commission.

Chapter IV Legal Liabilities

Article 34      Any establishment of an auto financing company or any auto financing business without the approval of the China Banking Regulatory Commission shall be banned. If the case constitutes a crime, criminal liabilities shall be investigated. If the case dose not constitute a crime, the China Banking Regulatory Commission shall confiscate the illegal earnings and impose a fine between one to five times the illegal earnings. If no illegal earnings are involved, the China Banking Regulatory Commission shall issue anpuorgfor remedial actions and impose a fine of no less than RMB100,000 yuan and no more than RMB500,000 yuan.

Article 35      The China Banking Regulatory Commission shall demand correction and impose a fine of RMB1000 yuan if a company, without the approval of the China Banking Regulatory Commission, includes in its name such words as “auto finance”, “auto loan”, etc. that indicate the company’s engagement in auto financing business.

Article 36 In case of an auto financing company being found to engage in business activities beyond its prescribed business scope, the China Banking Regulatory Commission shall issue a warning against the company, confiscate the illegal earnings and impose a fine in a range of one to five times the illegal earnings. If no illegal earnings are involved, the China Banking Regulatory Commission imposes a fine of no less than RMB100,000 yuan and no more than RMB500,000 yuan. If the case constitutes a crime, the criminal liabilities shall be investigated.

Article 37 In case of an auto financing company being found in violation of relevant provisions of the Rules to provide false financial statements or statements in which important facts are concealed, the China Banking Regulatory Commission shall issue a warning against the company, and impose a fine of no less than RMB100,000 yuan and no more than RMB500,000 yuan. If the case constitutes a crime, the criminal liabilities shall be investigated.

Article 38 In case of an auto financing company being found in violation of relevant provisions of the Rules to reject or impede the examinations and oversight by the supervisor, the China Banking Regulatory Commission shall issue a warning against the company, and impose a fine of no less than RMB10,000 yuan and no more than RMB30,000 yuan.

Article 39      An auto financing company, in case of being found in violation of the Rules, shall be punished in accordance with the provisions of Article 34 to Article 38. If the violation is a serious one, the China Banking Regulatory Commission may ban the company’s senior managerial personnel from holding senior management position for one to ten years, or in some particular case, for life.

Article 40 An auto financing company, in case of being found in violation of other Chinese laws and regulations, shall be subject to enforcement actions by relevant regulatory authorities.

Chapter V Supplementary Provisions

Article 41      The Rules is applicable to all auto financing companies incorporated in the mainland of China funded by investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan province.

Article 42      The Rules entersotnieffect on October 3, 2003, and the power of the interpretation rests with the China Banking Regulatory Commission.