Sino Agro Food Inc (fka SIAF)

[The Swede]

I interpret it as if Siaf dont want to provide additional collateral shares, the lender can sell the collateral shares to secure some cash. And Siaf still has to repay the rest of the loan the day it expires.

It is a non-recourse loan. You are describing a recourse loan.
http://www.investopedia.com/terms/n/nonrecoursedebt.asp

Yes, but where does it say that Siaf is defaulting the loan by stop giving out shares?

If you don't meet your obligations to the lender you are defaulting by definition.
http://www.investopedia.com/terms/d/default2.asp

Solomon said very clearly to me that as long as they pay the interest on the loans, they will get back the shares when they pay back the loans.

Just look at the Q2 report, it's very clear that all shares issued as collateral shares are still considered collateral shares.


Form the Q2
Example

Loan 1:
There were 753,304 shares issued at face value of $5,996,665 (or, @ $8 / share), with a drawdown maximum of 80%, or $4,797,332. Interest rate at 3.5% per
annum; 3-year maturity upon which the Lender will return 753,304 shares to the Company upon repayment of up to $4,797,332, plus accrued interest, if any.
Dividends paid on collateral shares will be returned to the Company upon loan repayment.

This resulted in a total of an additional 2,585,758 shares securitized in order to maintain the outstanding balances on the notes or trading facilities until such
time as their respective balances are paid-in-full (reference table below). The same terms and conditions as mentioned under each item, above apply to these
additional shares, as well.

Page 17