CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian, Qian Gu and Liangqian Ying, JunHe
tion or a liquidation procedure, the lender may continue to enforce the mortgage. 3.10 Taxes on Loans There are no existing, pending, or proposed mortgage recording or similar taxes in connec - tion with mortgage loans or mezzanine loans related to real estate. 4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The PRC laws applicable to strategic planning and zoning at state level mainly include the Land Administration Law, and the Urban and Rural Planning Law. Local governments shall, in accordance with these laws, prepare the urban planning and zon - ing, and reasonably determine the development scale, steps and construction standards of the urban locality. 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction In addition to the relevant laws and regulations, such as the Construction Law and Regulation on the Quality Management of Construction Projects, the design, appearance and method of construction are governed by the national standards promulgated by the relevant authori - ties of the state council, such as: • the General Standard for Civil Building; • the Unified Standard for Energy-Saving Design of Industrial Buildings; • the Code for Fire-Protection Design of Build - ings; and
• the General Standard of Quality Control in the Construction of Buildings and Municipal Projects. Generally, these regulations and rules apply to both the construction of a new building and the refurbishment of an existing building. Local gov - ernments may promulgate detailed implement - ing rules according to the relevant national regu - lations and policies. 4.3 Regulatory Authorities The development and designated use of real estate are generally governed by the competent authorities of the state and local governments, such as: • the competent development and reform com - mission (DRC) for the approval or filing of the project initiation; • the PNRC for planning and zoning approval, grant of land use right and issuance of land use right certificate; and • the housing and urban-rural development authority (HUDA) for preliminary design approval, issuance of the construction works construction permit ( 建筑工程施工许可证 ) and fil - ing for completion acceptance. 4.4 Obtaining Entitlements to Develop a New Project The approval process for development of a new building and/or infrastructure project can be divided into four phases: • phase 1 for project initiation and land-plan - ning permission, which includes approval or filing of the project, and issuance of the construction land planning permit ( 建设用地规划 许可证 ); • phase 2 for engineering and project permis - sion, which includes project design examina -
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