REGULATIONS. on currency Swap Transactions (FX Swap Rules)

Transcription

1 REGULATIONS on currency Swap Transactions (FX Swap Rules)

2 General Provisions 1 These Rules on Currency Swap Transactions, hereinafter referred to as FX Swap Rules, encompass a detailed description of, and set conditions for, FX Swap Transactions concluded between the Bank and its Clients under the Master Agreement. 2 FX Swap Transactions shall be concluded in accordance with the provisions hereof, the Master Agreement, and Terms and Conditions of Cooperation. In the event of any discrepancy between the provisions of the FX Swap Rules and Terms and Conditions of Cooperation applicable to FX Swap Transactions, the provisions of the FX Swap Rules shall prevail. Definitions and Interpretation 3 1. The expressions starting with capital letters, which have not been otherwise defined, shall have the meaning attributed to them in the Terms of Cooperation on condition that such Terms of Cooperation have been delivered to the Client and if they are binding in the relationships with the Client pursuant to the Master Agreement. 2. The terms used herein shall have the following meaning: 1) Second FX Swap Transaction Exchange sale (purchase in the First FX Swap Transaction Exchange) or purchase (sale in the First FX Swap Transaction Exchange) on the Second FX Swap Transaction Exchange Settlement Day of the FX Swap Transaction Amount into the Non- Base Currency equivalent at the Second FX Swap Transaction Exchange Rate; 2) FX Swap Transaction Additional Terms Transaction Terms referred to in 4 sec. 2 item 2 of these Rules; 3) Second FX Swap Transaction Exchange Settlement Day a day on which the liabilities and receivables of the Parties in relation to the Second FX Swap Transaction Exchange are settled; 4) First FX Swap Transaction Exchange Settlement Day a day on which the liabilities and receivables of the Parties in relation to the First FX Swap Transaction Exchange are settled, falling on or before the second Business Day from the Day of the Agreement of the FX Swap Transaction Terms; 5) FX Swap Transaction Early Closing Settlement Day a day specified by the Parties in the conditions for FX Swap Transaction Early Closing, on which the Settlement Account is credited or debited in relation to FX Swap Transaction Early Closing. 6) Day of the Agreement of the FX Swap Transaction Terms a day on which at least all the FX Swap Transaction Material Terms, necessary for the Parties to conclude an FX Swap Transaction, were agreed; 7) FX Swap Transaction Early Closing Day a day on which all the terms necessary for an FX Swap Transaction Early Closing have been agreed upon by the Parties, falling on or before the Second FX Swap Transaction Exchange Day; 8) FX Swap Transaction Material Terms Transaction Terms indicated in 4 sec. 2 item 1 of these Rules; 9) Following Business Day Convention the method of adjusting the relevant date in the event when it is supposed to fall on a day which is not a Business Day, in order for the date to fall on the first consecutive Business Day; 10) First Exchange FX Rate the Base Currency rate, specified on the Day of the Agreement of the FX Swap Transaction Terms, expressed in the Non-Base Currency units for a given First FX Swap Transaction Exchange Settlement Day; 11) Second Exchange FX Rate the Base Currency rate, defined on the Day of the Agreement of the FX Swap Transaction Terms,expressed in the Non-Base Currency units for a given Second FX Swap Transaction Exchange Settlement Day; 12) FX Swap Transaction Amount amount in the Base Currency, exchanged into Non-Base Currency at the First FX Swap Transaction Exchange (at the First FX Swap Transaction Exchange Currency Rate) and the Second FX Swap Transaction Exchange (at the Second FX Swap Transaction Exchange Currency Rate); 13) FX Swap Transaction Early Closing Amount amount credited or debited onto the Settlement Account in the event of an FX Swap Transaction Early Closing; 14) First FX Swap Transaction Exchange purchase or sale, on the First FX Swap Transaction Exchange Settlement Day, of the FX Swap Transaction Amount into the Non-Base Currency equivalent, at the First FX Swap Transaction Exchange Currency Rate; 15) FX Swap Transaction Confirmation a document constituting an evidence of agreeing on the Terms of FX Swap Transaction, drawn up by the Bank pursuant to the specimen constituting the Appendix No. 1 to the FX Swap Rules.. 16) FX Swap Transaction Early Closing Confirmation document constituting an evidence of concluding FX Swap Transaction Early Closing, drawn up by the Bank pursuant to the specimen constituting the Appendix No. 2 to the FX Swap Rules. 17) Settlement Account Client s financial account in the Bank (in Base and Non-Base Currency) for settling FX Swap Transactions; 18) FX Swap Transaction Settlement settlement of liabilities and receivables of the Parties, arising from the concluded FX Swap Transaction; 19) FX Swap Transaction each Transaction entered into between the Bank and the Client under the Master Agreement, whose description and key terms have been set forth in the FX Swap Rules and in the FX Swap Transaction Confirmation; 20) Base Currency currency whose price is expressed in Non-Base Currency units. The Parties to the FX Swap Transaction shall decide which of the currencies constituting the subject matter of the FX Swap Transaction shall be a Base Currency, taking into consideration practices established on the financial market; 21) Non-Base Currency currency whose units serve to express the unit price of the Base Currency; 22) FX Swap Transaction Early Closing the way of closing FX Swap Transaction delineated in 8 of the FX Swap Rules;

3 23) Net Present Value of FX Swap Transaction total value of not-yet due and payable liabilities and receivables resulting from the concluded FX Swap Transaction, calculated by the Bank on the FX Swap Transaction Early Closing Settlement Day. Subject matter and concluding of FX Swap Transactions 4 1. FX Swap Transactions consist in the returnable exchange of two currencies, based on: 1) exchange purchase or sale, on the First FX Swap Transaction Exchange Settlement Day, of the FX Swap Transaction Amount in the equivalent of Non-Base Currency, at the First FX Swap Transaction Exchange Currency Rate; 2) reverse exchange (i.e.: purchase or sale), on the Second FX Swap Transaction Exchange Settlement Day, of the FX Swap Transaction Amount in the equivalent of Non-Base Currency, at the Second FX Swap Transaction Exchange Currency Rate; 2. Subject to provisions of sec. 6, upon entering into the FX Swap Transaction, the Parties shall agree on the following items: 1) as regards to FX Swap Transaction Material Terms: a) FX Swap Transaction Type purchase or sell of Base Currency at the First FX Swap Transaction Exchange; b) First and Second FX Swap Transaction Exchange Settlement Day; c) FX Swap Transaction Amount; d) Base Currency and Non-Base Currency; e) First and Second FX Swap Transaction Exchange Currency Rate; 2) as regards to FX Swap Transaction Additional Terms: a) Settlement Account for Base and Non-Base Currency for the First and Second FX Swap Transaction Exchange. 3. The minimum FX Swap Transaction Amount shall be 50,000 PLN or its equivalent in currencies: EUR, USD, CHF, or GBP. 4. The Second FX Swap Transaction Exchange Settlement Day falls on at least one Business Day following the First FX Swap Transaction Exchange Settlement Day. 5. The currency purchased by the Client at the First FX Swap Transaction Exchange is the currency sold by the Client at the Second FX Swap Transaction Exchange. 6. When determining the FX Swap Transaction terms, the Parties may make arrangements which scope will exceed the provisions of the FX Swap Rules, aimed at concluding FX Swap Transactions on individual terms. In particular, if it is required for conclusion of an FX Swap Transaction, the Parties will be entitled to arrange Transaction Terms other than those specified in sec. 2 or resign from arranging Transaction Terms to the extent defined in sec. 2. FX Swap Transaction Settlement 5 1. The First FX Swap Transaction Exchange settlement shall be performed in the following mode: 1) On the First FX Swap Transaction Exchange Settlement Day, the Client, no later than at 4 p.m., ensures the amount of sold currency at the First FX Swap Transaction Exchange on the Settlement Account. 2) The Settlement Account corresponding to the sold currency by the Client is debited with amount of the currency sold. Next, the Settlement Account corresponding to the purchased currency by the Client at the First FX Swap Transaction Exchange shall be credited with the amount of the currency purchased. 2. Should the funds available on the Settlement Account corresponding to the sold currency by the Client be insufficient to perform First FX Swap Transaction Exchange, the Bank shall be entitled to exercise a net FX Swap Transaction settlement, applying net settlement rates resulting from the applicable Bank Rates Table or rates defined by the Bank itself pursuant to the current market quotations. 3. The Bank shall calculate the FX Swap Transaction net settlement amount in order to settle the First and Second FX Swap Transaction Exchange in accordance with the following formula: KZ = N S ((K R1 K FXSwap1 ) df (K R2 K FXSwap2 )) where: KZ net settlement amount, N FX Swap Transaction Amount, S coefficient: ( 1) if the Client purchases Base Currency at the Second FX Swap Exchange, (+1) if the Client sells Base Currency at the Second FX Swap Exchange, K R2 net settlement rate for the Second FX Swap Transaction Exchange, K R1 net settlement rate for the First FX Swap Transaction Exchange, K FXSwap2 Second Exchange FX Rate, K FXSwap1 First Exchange FX Rate, df discount coefficient for Non-Base Currency, for the period lasting from the First FX Swap Transaction Exchange Settlement Day until the Second FX Swap Transaction Exchange Settlement Day.

4 4. If the net FX Swap Transaction settlement amount is positive, the Bank will credit the Non-Base Currency Settlement Account with such amount. 5. If the net FX Swap Transaction settlement amount is negative, the Bank will debit the Non-Base Currency Settlement Account with such amount The Second FX Swap Transaction Exchange settlement shall be performed in the following mode: 1) On the Second FX Swap Transaction Exchange Settlement Day, the Client, no later than at 4 p.m., ensures the amount of sold currency at the Second FX Swap Transaction Exchange on the Settlement Account. 2) The Settlement Account corresponding to the sold currency by the Client is debited with the amount of the currency sold. Next, the Settlement Account corresponding to the purchased currency by the Client at the Second FX Swap Transaction Exchange shall be credited with the amount of the currency purchased. 2. Should the funds available on the Settlement Account corresponding to the sold currency by the Client be insufficient to perform the Second FX Swap Transaction Exchange, the Bank shall be entitled to exercise a net FX Swap Transaction settlement, applying net settlement rates resulting from the applicable Bank Rates Table or rates defined by the Bank itself pursuant to the current market quotations. 3. The Bank shall calculate the FX Swap Transaction net settlement amount in accordance with the following formula: KZ = N S ((K R2 K FXSwap2 ) where: KZ net settlement amount, N FX Swap Transaction Amount, S coefficient: (+1) if the Client purchases Base Currency at the Second FX Swap Exchange, ( 1) if the Client sells Base Currency at the Second FX Swap Exchange, K R2 net settlement rate for the Second FX Swap Transaction Exchange, K FXSwap2 Second Exchange FX Rate. 4. If the net FX Swap Transaction settlement amount is positive, the Bank will credit the Non-Base Currency Settlement Account with such amount. 5. If the net FX Swap Transaction settlement amount is negative, the Bank will debit the Non-Base Currency Settlement Account with such amount. 7 Clients shall be entitled to utilize the currency purchased as a result of FX Swap Transactions to make a transfer or another bank operation. Such operations shall be carried out by the appropriate Bank entities pursuant to principles specified in the relevant Bank s bylaws referring thereto. FX Swap Transaction Early Closing 8 1. Clients shall have the right to the FX Swap Transactions Early Closing. 2. The FX Swap Transaction Early Closing is effected through either crediting or debiting the Settlement Account on the FX Swap Transaction Early Closing Settlement Day with the FX Swap Transaction Early Closing Amount accepted by the Client, equal to the Net Present Value of FX Swap Transaction defined by the Bank pursuant to market quotations, whereby: 1) if the Net Present Value of FX Swap Transaction is positive, the Settlement Account will be credited with the FX Swap Transaction Early Closing Amount; 2) if the Net Present Value of FX Swap Transaction is negative, the Settlement Account will be debited with the FX Swap Transaction Early Closing Amount. 3. In the event of FX Swap Transaction Early Closing on the FX Swap Transaction Early Closing Day, the Parties obligations related to the given FX Swap Transaction shall entail payment of the FX Swap Transaction Early Closing Amount. 4. Following the FX Swap Transaction Early Closing Day, the Bank shall prepare and provide the Client with an FX Swap Transaction Early Closing Confirmation featuring the FX Swap Transaction Early Closing Amount. Final provisions 9 1. The Bank reserves the right to make amendments to the FX Swap Rules, which shall be notified to the Client in the manner specified in the Master Agreement. The Client failure to file written reservations within 14 days as of the receipt of amendments hereto shall be deemed equivalent to expressing consent to the new wording of the FX Swap Rules. The FX Swap Transactions concluded within the period from the day of Client s receiving amendments to the FX Swap Rules until ineffective expiry of the deadline referred to in previous sentence shall be governed by the provisions of the FX Swap Rules in their wording binding prior to introducing the changes by The Bank. Should the Client file reservations in respect of amendments to the FX Swap Rules no new FX Swap Transactions shall be concluded with the Client and the FX Swap Transactions already concluded shall be governed by the provisions of FX Swap Rules binding prior to introducing the changes by the Bank.

5 2. The amended FX Swap Rules shall apply to FX Swap Transactions concluded after the day on which the said Rules became effective, subject to the provisions of sec. 1. BANK POLSKA KASA OPIEKI S.A. Warsaw, 13 April, 2011

6 Appendix No. 1 to FX Swap Rules Warsaw, FX Swap Transaction Confirmation No. concluded on at (time) between Bank Polska Kasa Opieki Spółka Akcyjna, hereinafter referred to as the Bank, and hereinafter referred to as the Client, (name and surname/business name of the Client) Base Currency/Non-Base Currency (currency pair): Transaction currency and amount purchased by the Client at the First FX Swap Transaction Exchange: Transaction currency and amount sold by the Client at the First FX Swap Transaction Exchange: Transaction currency and amount purchased by the Client at the Second FX Swap Transaction Exchange: Transaction currency and amount sold by the Client at the Second FX Swap Transaction Exchange: First Exchange FX Swap rate: FX Swap Transaction points: Second Exchange FX Swap rate: Settlement Day for the First FX Swap Transaction Exchange: Settlement Day for the Second FX Swap Transaction Exchange: Settlement Accounts: FX Swap Transaction Confirmation incorporates the provisions of Terms of Cooperation, Master Agreement, and FX Swap Rules. Terms written in capital letters shall have the meaning assigned thereto in the Terms of Cooperation or in the FX Swap Rules. In the case of any date correction, the Following Business Day Convention shall apply. This Conformation constitutes the original document and, to be valid, does not need any signatures. This transaction - pursuant to the act on trading in financial instruments - has been concluded within the framework of the investment service Acquisition or disposal of financial instruments on own account (art. 69 sec. 2 item 3). Bank Pekao S.A., based on analysis of Your knowledge and experience, evaluated this financial instrument as inappropriate. This Transaction was conducted on Your direct request, and on Your own risk, despite warning of its inappropriateness that has been provided to You.* * If the Client must agree to the conclusion of an inadequate FX Swap Transaction. Bank Pekao S.A. ul. Grzybowska 53/57, entered in the National Court Register (KRS) under number registered in the Business Activity Register maintained by the District Court for the Capital City of Warsaw XII Economic Department of the National Court Register, NIP , initial capital and paid-in capital:.. PLN.

7 Appendix No. 2 to FX Swap Rules Warsaw,. FX Swap Transaction Early Closing Confirmation This is to confirm that, on at (time) we executed FX Swap Transaction Early Closing in regard to FX Swap Transaction No. Settlement Day for the FX Swap Transaction Early Closing: FX Swap Transaction Early Closing Amount: Settlement Day for the First FX Swap Transaction Exchange: Debiting/crediting of the Settlement Account of Client No.: The FX Swap Transaction Early Closing Confirmation incorporates the provisions of Terms of Cooperation, Master Agreement, and FX Swap Rules. Terms written in capital letters shall have the meaning assigned thereto in the Terms of Cooperation or in the FX Swap Rules. In the case of any date correction, the Following Business Day Convention shall apply. This Conformation constitutes the original document and, to be valid, does not need any signatures. Bank Pekao S.A. ul. Grzybowska 53/57, entered in the National Court Register (KRS) under number registered in the Business Activity Register maintained by the District Court for the Capital City of Warsaw XII Economic Department of the National Court Register, NIP , initial capital and paid-in capital:.. PLN.