China -  Chinese law firm

People's Bank of China and China Banking Regulatory Commission jointly issued Supplementary Notice On Commodity Property Mortgage Loans on December 5, 2007.

Under this Notice, commercial banks shall determine the number of mortgage loans granted to mortgagors in consideration of the family as a unit, rather than the individual. An application for a mortgage from a family which has already been bound by a mortgage from a bank for their first residential property but the average area per capita within the first property in question is lower than the local standard shall be processed under the same rules which apply to mortgages for a first property. The above rules also apply to applications for a second mortgage from a family in which the property is mortgaged with the Housing Provident Fund. Commercial banks are not allowed to accept any application that contains false information or false testimony.

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