【正文】 the contract, failing to repay the funds on due date or failing to pay funds in full, Party B has the right to charge higher interest rate on overdue loans as prescribed by the People’s Bank of China(penalty interest rate on overdue loan is stipulated under Article ). In case that Party A fails to use the funds for the agreed purposed under this contract, Party B has the right to charge penalty interest rate on overdue loans as prescribed by the People’s Bank of China (penalty interest rate on misappropriation of loan is stipulated under Article ). For overdue loan or loan of misappropriate use, Party B shall calculate the interest rate based on penalty interest rate from the day of overdue loan or misappropriate use of loan till the principal and interest are paid off. If Party A fails to pay off the interest on due date, Party B shall calculate pound interest based on penalty interest rate. Party A and Party B agree to follow the principle of “repaying interest before the principal”, and Party B shall deduct the funds repaid by Party A in a sequence of “the principal and interest for overdue loan, penalty interest and pound interest – current interest principal”. Article 7 Repayment in Advance If Party A is able to pay off the loan ahead of time, it shall submit to Party B the irrevocable loan repayment application and repayment plan. After checking and confirming that Party A has no delay of loan principal and interest and has paid off the current interest, Party B will approval the repayment ahead application, then Party A can repay the loan in advance. The interest repayable before repaymentinadvance day shall not be adjusted. For repayment in advance, Party B can charge penalty to Party A under Article . Article 8 Guarantee of Loan The guarantee type for the loan is specified in Article . The effectiveness of guarantee terms under this contract is independent of this contract. Scope of Guarantee The principal of loan, interest (including pound interest), penalty interest under this contract。 Penalty, pensation, reimbursement。 fees, assessment fee, auction fee, law suit fee, allrisk fee, travel expense etc.). Mortgage Guarantee The mortgager voluntarily mortgages the property in Guaranty List the Attachment A of this contract, and agrees to be restricted by this contract. The coowner of the mortgaged property under this contract agrees to mortgage the property and be restricted by this contract. The mortgager shall plete the registration of mortgaged property based on laws and regulations. The mortgager shall take on the fees for the mortgaged property. The mortgager shall provide to the Party B the evidence documents and relevant materials of ownership of the guaranty, and the original of Mortgage Registration Certificate shall be kept by Party B. Party B can exercise the mortgage right in case one of following situations happens: (1) Party A fails to repay the due loan payable and/or other items payable based on this contract。 (3) The mortgager breaches the contract by disposing the guaranty, or implements action enough to decrease the value of guaranty, and Party B is refused of restoring the guaranty to original value or providing guarantee, Party B can exercise the mortgage right in advance. Party B can select any one of the following ways to realize the mortgage right: (1) Discount of mortgage in agreement with mortgager。 (3) Sale of mortgage。 (2) Party breaches the contract, party B claims to take back the loan in advance, and Party B fails to be paid off or not fully paid off。 (2) Auction of pledges。 (4) Other ways allowed by laws. When Party B and Party A change the contract(including, but not limited to, amount of loan, term of loan, interest rate, type of interest settlement, type of repayment, period of repayment, repayment amount for each period), there is no need to ask for approval of the pledger, and the pledger is still bear the responsibility of guarantee. The pledger shall provide to Party B the evidence certificates, after confirmation of Party B, and all certificates shall be kept by Party B. When Party A pays off the principal, interest and expenses for the whole loan under this contract, or the pledger pays off the guaranteed security instead of Party A, Party B shall return the pledges and relevant certificates to the pledger. Guarantee The guarantee form under this contract is joint liability assurance. The guarantee period is two years, from the day when the contrac