Bank loans represent amounts due to various banks and are generally due on demand or within one year. These loans can be renewed with the banks. Bank loans consisted of the following at March 31, 2012 and December 31, 2011:

Bank	March 31, 2012		December 31, 2011
Nanjing Bank	$	9,591,516	$	11,731,223
Shanghai Pudong Development Bank		7,957,140		8,966,382
Industrial and Commercial Bank of China		316,200		5,294,270
Bank of Communications		6,637,390		2,660,562
The Hong Kong and Shanghai Bank	-			532,944
Bank of China		537,540		-
	$	25,039,786	$	29,185,381

On August 2, 2010, Goldenway entered into a two-year revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.86 million (RMB50 million). As of March 31, 2012, under this agreement, the Company had borrowed approximately $5.38 million (RMB34 million) with annual interest rates of 7.02%, and due on various dates from May to July 2012. These loans are guaranteed by Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment.

On March 11, 2010, Ever-Glory Apparel entered into an one-year line of credit agreement for approximately $7.86 million (RMB50 million) with Nanjing Bank. The agreement has been extended until April 6, 2013. As of March 31, 2012, $1.05 million of bank loans was outstanding under this agreement, with an annual interest rate from 5.53% to 5.58%, due on various dates from April to May 2012, and collateralized by approximately $1.3 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. At March 31, 2012, approximately $6.81 million was unused and available. Approximately $0.77 million was repaid in April 2012.

As of March 31, 2012, LA GO GO had borrowed $1.58 million (RMB10.0 million) from Nanjing Bank with an annual interest rate of 7.87% and due on various dates from April 2012 to June 2012. Approximately $0.79 million was repaid in April 2012.This loan is guaranteed by Jiangsu Ever-Glory and Mr. Kang.

As of March 31, 2012, New Tailun had borrowed $1.58 million (RMB 10.0 million) from Nanjing Bank with an annual interest rate of 8.6% and due in June 2012. This loan is guaranteed by Jiangsu Ever-Glory and Mr. Kang.

As of March 31, 2012, Ever-Glory Apparel had borrowed $1.63 million from Shanghai Pudong Development Bank with an annual interest rate from 7.02% to 7.54%. The loan is guaranteed by Goldenway, and collateralized by approximately $2.1 million of accounts receivable from wholesale customers. This loan is due in May 2012.

On January 4, 2011, Goldenway entered into a new one-year line of credit agreement for approximately $6.32 million (RMB40 million) with Shanghai Pudong Development Bank. As of March 31, 2012, Goldenway had borrowed the maximum amount available under the line of $6.32 million (RMB40 million), with an annual interest rate of 7.55%. These loans are collateralized by certain properties and land use rights of Goldenway, and are due in November 2012.

As of March 31, 2012, Ever-Glory Apparel had borrowed $0.32 million (RMB2.0 million) from the Industrial and Commercial Bank of China with an annual interest rate of 6.1%. The loan is due in June 2012, and is guaranteed by Jiangsu Ever-Glory.

As of March 31, 2012, Ever-Glory Apparel had borrowed $5.06 million from the Bank of Communications with an annual interest rate of 7.08%, and due in March 2013. The loan is guaranteed by Jiangsu Ever-Glory and the Company's chairman and CEO, Mr. Kang. In addition, Ever-Glory Apparel had borrowed $1.58 million from the Bank of Communications with annual interest rates ranging from 3.96% to 4.08%, due on various dates from April 2012 to June 2012, guaranteed by Jiangsu Ever-Glory and Mr. Kang, and collateralized by approximately $1.98 million of accounts receivable from wholesale customers. Approximately $0.23 million was repaid in April 2012.

As of March 31, 2012, Ever-Glory Apparel had borrowed $0.54 million from the Bank of China with an annual interest rate of 6.53%. The loan is guaranteed by Goldenway, and collateralized by approximately $0.7 million of accounts receivable from wholesale customers. This loan was paid full in April 2012.

On July 29, 2011, Ever-Glory Apparel and Perfect Dream collectively entered into a secured banking facility agreement for a combined revolving import facility, letter of credit, invoice financing facilities and a credit line for treasury products of up to $7.0 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of March 31, 2012, no amounts were outstanding under this agreement.