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Rules for Handling Dishonesty Concerning Alibaba Merchant Loan

 

Date of Release: August 20, 2020         Effective Date: August 27, 2020

 

Chapter I Overview

Article 1 Merchant Loan is an online financing service that third-party financial institutions introduced by Alibaba provide to merchants of Alibaba.com. To protect the legitimate rights and interests of all parties under Merchant Loan and jointly create a fair and honest financial environment, these Rules are formulated pursuant to relevant stipulations of the Merchant Loan – Loan Amount Contract (hereinafter referred to as the "Loan Contract"), the Alibaba.com Rules (General Rules), and the Alibaba.com Penalty Rules for Non-compliance Concerning False Transactions.

Article 2 These Rules apply to the order stocking loans and cash loans obtained through the successful activation of Merchant Loan via Alibaba.com and in accordance with the relevant guidelines of Alibaba.com.

 

Chapter II Dishonest Situations

Article 3 "Overdue Loan Repayment" refers to the circumstance where the borrower fails to repay the due amount in full and on time as agreed in the Loan Contract, including principal, interest, and default interest.

Article 4 "Illegal Use of Funds" refers to the circumstance where the borrower uses funds that are obtained from Merchant Loan for the purchase of personal housing, securities investment, equity capital investment, futures investment, and other speculative operations, or for the investment in money laundering, selling guns, drugs, banned drugs, pirated software, or pornographic materials, and other illegal and irregular activities identified by the regulatory agencies, judicial agencies, and lenders.

Article 5 "Providing False Information" refers to the borrower's act of obtaining financing funds by providing false information, forging and altering relevant licenses, indiscriminately or fraudulently using other people's information, or by creating false orders.

Article 6 "Malicious Breach of Contract" refers to the borrower's evasion of debts, refusal to cooperate in providing necessary materials required for post-loan monitoring, false promises, or other malicious breach of contract recognized by the lender as violating the principle of good faith.

 

Chapter III Dishonesty Handling Measures

Violations

Handling Method

Overdue Loan Repayment

Less than or equal to 30 days

The dishonest merchant is prohibited from participating in marketing activities.

Financial product functions are frozen, and related rights and interests are cancelled.

The withdrawal function of the Trade Assurance or OneTouch related foreign exchange account is frozen.

More than 30 days

The dishonest merchant is prohibited from participating in marketing activities.

Financial product functions are frozen, and related rights and interests are cancelled.

The withdrawal function of the Trade Assurance or OneTouch related foreign exchange account is frozen.

Financial product functions are closed, and related rights and interests are cancelled.

Illegal Use of Funds

Financial product functions are closed, and related rights and interests are cancelled.

According to the Loan Contract, all the loan principal and interest that have been issued will expire in advance immediately, and the principal and interest will be subject to the handling situation that it is overdue for more than 30 days before they are settled.

Providing False Information

Financial product functions are closed, and related rights and interests are cancelled.

According to the Loan Contract, all the loan principal and interest that have been issued will expire in advance immediately, and the principal and interest will be subject to the handling situation of overdue loan repayment before they are settled.

Downgrading relevant search authority or prohibiting the dishonest merchant from participating in marketing activities is conducted according to the Alibaba.com Penalty Rules for Non-compliance Concerning False Transactions. If a false transaction is created for the purpose of obtaining financing funds, the dishonest merchant shall be penalized according to the "extremely serious circumstances", and Alibaba.com has the right to directly close the account, give related punishment, and permanently refuse cooperation with the merchant.

If a merchant provides false information, forges or alters relevant licenses, or indiscriminately or fraudulently uses other people's information, the case shall be reported to the public security organ for filing and handling.

Malicious Default

The dishonest merchant shall, according to the relevant provisions of the Alibaba.com Rules (General Rules) concerning [Dishonesty], be imposed with penalties such as a warning, deduction of points, or account closing based on the circumstances of its violation.

 

Chapter IV Miscellaneous

Article 7 Alibaba.com and its financial institution partners have the right to handle dishonest merchants in accordance with these Rules.

Article 8 Alibaba.com and its financial institution partners have the right to revise these Rules from time to time according to any adjustment to laws and regulations, changes in the business environment, and other factors. The revised rules will take effect seven days after being announced.

Article 9 These Rules are made in both Chinese and English languages. If any discrepancy arises between the two, the Chinese version shall prevail.

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