Regulatory Alerts2016-03-24
Added · Updated
Interpretations of the Adjustment Period for Land Loan Renewal Cases to Comply with Loan-to-Value Ratio
For individual borrowers renewing land loans after December 31, 2010 for personal expenses or financial management with a loan-to-value ratio exceeding 65 percent, an adjustment period of up to one year is granted to meet the 65 percent requirement. If the borrower cannot repay the excess portion by the end of this period, the lender may negotiate installment repayment over a maximum of three years, which must be included in the renewal loan contract. For other land loan cases renewed after December 31, 2010 with ratios higher than stipulated, a single adjustment period of up to one year is permitted. The provisions in Decree Tai-Yang-Ye-Zi-100009326 dated January 20, 2011 and Decree Tai-Yang-Ye-Zi-100036373 dated August 2, 2011 cease to apply immediately.
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