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you are here: > Civil Code
> Article 216
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7. Obligation
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| 7.3 Standards of financial instruments | ||
| Article 216-Trade Loan | ||
| 216.1 | Trade Loan | |
| A trade loan is a contract by which the lender hands over a certain quantity of money to the borrower that is then used to facilitate capital works of the business on the agreement to return a like quantity of the same kind and quality to the lender after a certain time. | ||
| 216.2 | Standards of structure and information | |
| The standard structure of a trade loan shall be as follows: | ||
| (i) All the key and pertinent information that is unique to the contracts is provided in form design including signature and approval at the front; | ||
| (ii) Any modified clauses, new clauses (including new technical word definitions), list of deleted clauses and/or other special considerations that are different from the standard form of general contract immediately after the summary of key information; | ||
| (iii) The standard clauses (including definitions) of the primary form as the last attachment with any deleted clauses crossed out using a clear "x" through the body of the clause . | ||
| This structure shall allow the easiest method of contract interpretation, validation that it complies to the primary form and conversion to an electronic record. | ||
| 216.3 | General application of trade loan | |
| The following are the general application and requirements of a home loan: | ||
| (i) all enterprises employing less than 20 persons are eligible for a trade loan. All business larger than this size must negotiate a general loan agreement; | ||
| 216.4 | Qualifying criteria of a trade loan | |
| The purpose of a trade loan is to facilitate low interest capital avialability for the smallest businesses of the economy who produce the greatest growth in jobs and wealth in the community. | ||
| The following is the minimum qualifying criteria: | ||
| (i) The business must have been in operation for at least 12 months; | ||
| (ii) The business owners must not have been in charge of a business employing more than 2 people that has been liquidated in the past two years; | ||
| (iii) That the business has a capital works plan for the loan in which less than 20% of the loan will be directly or indirectly for wages and 80% will be for improvement of the business; | ||
| (iv) That the business has a clear commercialization/marketing strategy; | ||
| (v) That as a direct result of finalizing capital works and commercialization the business has a clear employment strategy (including job descriptions) of at least 30% more full time staff ; | ||
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