Jing Gao Fa Fa [2020] No. 146

Circular of Beijing Municipal High People’s Court, Operations Office (Beijing) of the People’s Bank of China and Beijing Office of China Banking and Insurance Regulatory Commission on Handling of RMB Settlement Accounts and CreditBusiness by Bankruptcy Administrator

To all the courts and banking institutions in Beijing,

The relevant matters concerning the bankruptcy administrator’s handling of such business as RMB bank settlement accounts and credit businessare hereby notified as follows in accordance with the Enterprise Bankruptcy Law of the People’s Republic of China, the Law of the People’s Republic of China on the People’s Bank of China, the Commercial Banking Law of the People’s Republic of China and other laws and regulations, in a bid to promote the efficient handling of bankruptcy cases in light of law and assist the bankruptcy administrator appointed by the people’s court in performing statutory duties in the bankruptcy cases.

I. The bankruptcy administrator shall, in accordance with the law, take over the duties and responsibilities of the debtor, decide the debtor’s internal management affairs, investigate, manage, dispose of and distribute the debtor’s property, settle the debtor’s claims, and participate in legal proceedings on behalf of the debtor. Where the bankruptcy administrator handlesbusiness involvingRMB bank settlement accounts and credit businesssuch asinquiry of the debtor’s corporate account information, transfer of funds from the debtor’s corporate account, cancellation of the debtor’s corporate account, the banking institution shall deem that such business is handled by the debtoron its own.

II. The bankruptcy administrator shall bringthe following documents when opening a temporary deposit account: written verdict of the people’s court on acceptance of bankruptcy application, written decision of the people’s court to appoint a bankruptcy administrator, recommendation letter of bankruptcy administrator, identity card of bankruptcy administrator, and identity certificates of the handling person.

III. The banking institution shall perform the obligation of identifying clients as required, conduct due diligence, handle the business of opening a temporary deposit account of the bankruptcy administrator in time and notify the bankruptcy administrator before the expiry of the account. On the premise of ensuring that risks are under control, banking institutions are encouraged to streamline procedures and handle the business of user account change, cancellation and renewal through electronic channels or door-to-door service.

IV. The bankruptcy administrator may apply to the people’s court that accepts and hears the bankruptcy case to inquire the name and number of the bank where the debtor’s enterprise has opened RMB bank settlement accounts through the online “court-to-bank” execution & control system.

V. The bankruptcy administrator may inquire the debtor’s corporate account information from the banking institution, including: the name, number, status, balance and transaction records, counterparty’s name, statement of account, original transaction voucher, account opening information, reserved seal, and whether the account is subject to judicial freeze, pledge or restriction, and other electronic and paper information.

VI. Banking institutions shall promptly reply to the bankruptcy administrator’s account information inquiry. For matters inquired at the counter of a banking institution, those that can be answered on the spot shall be answered in time; in the event the answers can not be given on the spot, the inquiry of electronic information shall be answered within 3 working days, and the manual inquiry involving paper material shall be answered within 20 working days.

VII. The bankruptcy administrator may choose his signature or the corporate signature of the debtor, and apply to a banking institution for handling relevant business of the debtor’s corporate RMB bank settlement account and credit business. The bankruptcy administrator shall fill in the application for change or sign an agreement in accordance with the procedures of the banking institution in respect of the change of the seal reserved by the debtor in the banking institution.

VIII. The bankruptcy administrator shall bringthe following documents when handling relevant business of the debtor’s corporate RMB bank settlement account: written verdict of the people’s court on acceptance of bankruptcy application, written decision of the people’s court to appoint a bankruptcy administrator, recommendation letter of bankruptcy administrator and identity certificates of the handling person.

IX. After the people’s court rules to approvethe debtor’s reorganization plan, the debtor’s or the bankruptcy administrator can submit an application to the basic database of financial credit information in accordance with the award of the people’s courton approval of the reorganization plan, and publicize such plan by adding “memorabilia” or “statement of the subject of information ” in the enterprise credit reference system (CRS).

X. Banking institutions shall recognize the contents of the “memorabilia” or “statement of the subject of information” of the enterprise with bankruptcy reorganization and support its reasonable financing needs. They shall strengthen the communication and reporttothe supervising authority, report the credit history again after being paid within the legal framework for insolvency, display the debtor-creditor relationship between the banking institutions and the enterprises with bankruptcy reorganization in the enterprise CRS, and display the original enterprise’s credit history as “settled” status according to the actual corresponding repayment method.

XI. The Circularshall take effect as of the date of issuance.

Beijing Municipal High People’s Court

Operations Office (Beijing) of the People’s Bank of China

Beijing Office of China Banking and Insurance Regulatory Commission

April 7, 2020