CREDIT TRANSACTION AGREEMENT
To : Taegu Bank
Date : May 27, 1998
Borrower : Yeongnam Housing Finance Co., Ltd.
286-1 Shinchun-dong
Dong-Gu, Taegu
By : Chang Ho Park. President
(Corporate seal affixed)
We acknowledge that, in connection with our credit transaction with
Taegu bank (hereinafter referred to as the " Bank") pursuant to the terms and
conditions set forth herein below, the provisions of Standard Bank Credit
Transaction rules (in case of comprehensive passbook loan and overdraft,
pertinent standard rules) shall apply to this transaction and hereby agree to
comply with each and every provision hereof.
Article 1 (Terms and Conditions)
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Classification : general fund loan
Amount of Credit : Five billion Won
Term of Transaction : From May 27, 1998
To : May 27, 1999
Interest Rate : 8+ 7% p.a
Overdue Interest Rate ; 19.0 % p.a
Calculation of Interest : 365 day year : calculated on a daily
basis. However, internation custom shall apply to foreign exchange transaction.
Method of Disbursement :
Payment of Interest :
Special Provision on Setoff : As to installment savings trust
based loan, in the event the installment payment is not made for a period of
four consecutive months, the Bank shall have the right to offset the loan with
the trust fund by giving notice to the borrower even prior to the maturity of
the loan.
Article 2 (Late Payment)
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(1) We agree to immediately pay late charges in the event payment of interest or
repayment of installment or principal of the loan is not made when due.
(2) In the event we fail to repay our debts on the due date or in the event the
maturity is accelerated in accordance with the terms of Article 7 of the
Standard Bank Credit Transaction Rules, we agree to immediately pay late charges
on the principal balance of the loan.
(3) As to installment savings trust based loans, we agree to pay interest until
the day before the setoff date, after the setoff date, we agree to pay late
charges on the principal balance of the loan.
(4) As to comprehensive passbook automatic loans and overdraft, we agree to
immediately pay late charges on the amount of overpayment or overdraft.
Article 3 (Calculation of Loan amount : Payment Schedule)
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(1) With respect to loans of instilment disbursements, the total amount of loan
shall be calculated after the last disbursement based on installment payment
schedule and receipt or other proofs of disbursement.
(2) With respect to loans with installment amortization, with the exception of
installment savings based loans, the Bank agrees to prepare and deliver payment
schedule to the borrower.
Article 4 (Reduction : Suspension)
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If it becomes necessary due to changes in banking situation or for
the purpose of preserving the Bank's security interest in the loans, the bank
may, By notice to the borrower, reduce the line of credit as set forth in
Article 1 above or temporarily suspend further disbursement. In such an event,
we agree to immediately repay any amount that exceeds the reduced line of
credit.
Article 5 (Comprehensive Passbook Automatics Loan and Overdraft)
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(1) Any deposits into the borrower's comprehensive passbook account or checking
account shall be considered to be automatically applied to the repayment of the
loan. (securities deposited into the account shall be considered to have been
transferred to the Bank as collateral and shall be applied to the repayment only
when they are liquidated.)
(2) Any overpayment or overdraft shall be paid through the borrower's account.
(3) The Bank in its discretion may make payment in excess of the line of credit
as provided in Article 1 above which we agree to repay immediately.
(4) Interest and late charges may be either withdrawn from the borrower's
account or added to the loan amount, regardless of the amount of line of credit,
which we agree to repay you immediately.
(5) Any overdraft paid by the Bank on our behalf shall be reimbursed as
repayment of loan.
(6) We acknowledge that the notes or checks issued by us may be dishonored by
the Bank due to reduction or suspension as provided in Article 4 above.
(7) The Bank may at its own discretion honor the borrower's overdraft notes or
checks even after the expiration of this transaction if they are issued prior to
the expiration of this transaction and the terms and conditions of this
Agreement shall also apply to such a loan.
Article 6 (Fee for Unused Funds)
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(1) With respect to note loan, we agree to deliver to the Bank a promissory note
containing the amount and due date and another promissory note with blank amount
and due date issued by both the borrower and the guarantor.
(2) With respect to line of credit and loans for a period of more than one (1)
year, we agree to deliver to the Bank a promissory note with blank amount and
due date issued by both the borrower and the guarantor.
(3) We hereby authorize the Bank to fill out the blanks and enforce its right in
the event of the borrower's default or acceleration in accordance with Article 7
of the Standard Bank Credit Transaction Rules.
(4) If the Bank decides to fill out the blanks pursuant to the terms of article
7 (3) above, the amount of the note shall not exceed the total amount of
principal, interest, late charges and other ancillary charges.
Article 8 (Currency and Exchange Rate)
Foreign currency loan may be repaid either in the same currency or in
won. Repayment in Won shall be at the exchange rate of the telegraphic transfer
selling rate on the repayment date.
PROMISSORY NOTE
(For Loan Transactions )
To : Taegu Bank, Ltd.
Amount :
Due Date :
Place of Payment : Place of business of Taegu Bank, Ltd.
In Taegu City
We promise to pay the above amount of money to you or your designee
in exchange for this Promissory Note.
Dated : May 22, 1999
Issud by : Yeongnam Housing Finance Co., Ltd.
286-1 Shinchun-Dong
Dong-Gu, Taegu
By : Chang Ho Park. President
(Corporate seal affixed)
Guarantor : Address
Name
Guarantor : Address
Name
Other Special Provisions
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We have received a copy of the Standard Bank Credit Transaction rules
and this Agreement : the major terms and conditions contained therein have been
fully explained to us and we understand the same.
Signed by : Chang Ho Park
(Corporate seal affixed)
