General Info on Residential Purchase Mortgage Loan

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Roger Ray
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General Info on Residential Purchase Mortgage Loan Lender: United Bulgarian Bank AD, Company ID Number 000694959 Address: Sofia City, 5 Sveta Sofia Str.

1 General Info on Residential Purchase Mortgage Loan Lender: United Bulgarian Bank AD, Company ID Number Address: Sofia City, 5 Sveta Sofia Str. Telephone number (Call Center): BIC code (SWIFT): UBBSBGSF Website: Product: Residential Purchase Mortgage Loan Loan Purpose: Collateral: Maximum Loan Tenor: Deadline for signing the loan agreement: Interest Rate: Purchase of residential property Mortgage on a real estate, situated on the Republic of Bulgaria s territory 35 years Clients have a 14-day period as of receipt of the loan agreement s draft to make an informed decision for its signing. Mortgage loan with a variable interest rate: The interest rate is determined on the grounds of a Reference Interest Rate (RIR) a variable market index 6-month SOFIBOR/EURIBOR on loans in BGN/EUR, published on the website of the Bulgarian National Bank/ European Banking Federation and a fixed margin. The fixed margin cannot be changed unilaterally during the loan agreement s period. The RIR value is being updated /amended/ every 6 months, 2 times per year on 1 st March and on 1 st September. The recalculation is made in accordance with the value of the 6-month SOFIBOR/EURIBOR, for loans in BGN/EUR, as announced on the website of the BNB/EBF for a date, preceding 1 st March and 1 st September by 7 business days. The new recalculated interest rate value shall be applicable as of the first payment due date under the loan, following the recalculation date. The change in the RIR value entails a change in the total loan cost and the total amount, due by the client! Mortgage loan with a fixed interest rate for the first 3 years of the loan period: The loan principal shall be accrued with a fixed interest rate during the first three years after the loan drawdown/ the first tranche of the loan, respectively. The fixed interest rate cannot be amended unilaterally. During the remaining period of the loan the interest rate shall be determined, based on a Reference Interest Rate (RIR) a variable market index 6-month SOFIBOR for loans in Bulgarian leva (BGN), published on the website of the BNB and a fixed margin, which cannot be amended unilaterally.

2 Loan Currency: Following the expiry of the 3-year fixed interest period, the interest rate shall be formed, based on the currently effective value of the 6- month SOFIBOR, as announced by the BNB and accepted by UBB as of 1 st March/1 st September, respectively, and shall be valid for the year when the transition to a floating interest rate was made. The RIR value shall be updated /amended/ every 6 months, 2 times per year on 1 st March and on 1 st September. The recalculation shall be made in accordance with the value of the 6-month SOFIBOR, as announced on the website of the BNB for a date, preceding 1 st March and 1 st September by 7 business days. The new recalculated interest rate value shall be applicable as of the first payment due date, following the recalculation date. The change in the RIR value entails a change in the total loan cost and the total amount, due by the Client. Bulgarian leva (BGN), euro (EUR) Loans with a fixed interest rate for the first three years after drawdown are available in BGN only. With loans in currencies other than the Client s local currency, the amendment in the exchange rate of the loan currency against that of the client s income entails a change in the total loan cost and the total due amount of monthly installments! Example: Annual Percentage Rate (APR) for loans in BGN: 4.47% with a loan of BGN for a period of 30 years and 4.293% variable interest rate with payroll transfer or regular proceeds to a Comfort account: 360 monthly installments on the loan in the amount of BGN ; total due amount of BGN Conclusion of Property Insurance policy is required, as the related expenses are not included in the APR. The client s total loan-related expenses equal BGN Annual Percentage Rate (APR) for loans in BGN: 4.99% with a loan of BGN for a period of 30 years and 4.793% variable interest rate: 360 monthly installments on the loan in the amount of BGN ; total due amount of BGN Conclusion of Property Insurance policy is required, as these expenses are not included in the APR. The client s total loan-related expenses equal BGN Annual Percentage Rate (APR) for loans in BGN upon a fixed interest rate for the first three years: 4.40% with a loan of BGN for a period of 30 years and 4.00% fixed interest rate for the first 3 years and variable interest rate, formed of the 6-month SOFIBOR percent fixed margin for the remaining loan period: 36 monthly installments on the loan in the amount of BGN for the period with a fixed interest rate and 324 monthly installments on the loan in the amount of BGN during the remaining loan period; the total amount due equals BGN 142

3 Conclusion of Property Insurance policy is required, as the related expenses are not included in the APR. The client s total loan-related expenses equal BGN Annual Percentage Rate (APR) for loans in EUR: 4.96% with a loan of EUR for a period of 30 years and 4.762% variable interest rate upon payroll transfer or regular proceeds to a Comfort account: 360 monthly installments on the loan in the amount of EUR ; total due amount of EUR Conclusion of Property Insurance policy is required, as the related expenses are not included in the APR. The client s total loan-related expenses equal EUR Annual Percentage Rate (APR) in EUR: 5.49% with a loan of EUR for a period of 30 years and 5.262% variable interest rate: 360 monthly installments on the loan in the amount of EUR ; total due amount of EUR Conclusion of Property Insurance policy is required, as these expenses are not included in the APR. The client s total loan-related expenses equal EUR The value of the 6-month SOFIBOR, adopted by the Bank as of , equals 0.293%. The value of the 6-month EURIBOR, adopted by the Bank as of , equals %. Fees: Application fee ; Property appraisal fee ; Fee for review of documentation, referring to the proposed loan collateral, preparation of a legal opinion and representation of the bank upon mortgage establishment BGN 100. The fee shall be payable one-off prior to signing the loan agreement. The state and notarial fees, due for mortgage establishment, shall be payable separately to the Registry Agency and the respective notary; Credit assessment fee. The fee shall be collected from the account, servicing the loan, prior to loan drawdown; Loan account maintenance fee; Mortgage release fee. The state and notarial fees, due for the release, shall be payable separately. Additional and potential loanrelated expenses, not included in the total contractual loan cost: Issuing the necessary documents for approval actual expenses. Establishing and renewing a mortgage actual expenses. The fees shall be payable to a notary public and the Registry Agency.

4 Upon the use of additional legal services, provided by an attorneyat-law, the attorney s fees, agreed between the parties, shall also be payable. Loan repayment, including an example with repayment installments number, schedule and amount: Loan Prepayment: Property Appraisal: Is the conclusion of an agreement for additional services mandatory for either obtaining the loan, or for being provided with specific terms and conditions? Is the Client entitled to utilize the additional services from an entity, other than the Lender? Warning about possible consequences upon nonperformance under the loan agreement: Insurance premiums under concluded voluntary Life insurance and mandatory Property insurance policies. Annuity monthly installments, including principal and interest. The interest shall be payable monthly, during the entire loan period, as a part of the monthly repayment installment. The repayment installments number depends on the loan period, as the date is determined according to the Client s preferences. Installments are payable monthly on a preliminary set date, as per the provided repayment schedule. You are entitled to fully or partially prepay your liabilities under the loan agreement anytime. Upon loan prepayment the Lender shall be entitled to a contractual indemnity, equaling 1% of the prepaid principal amount until payment of the first 12 instalments. Payable by the Client pursuant to UBB s Fees and Commissions Tariff. The property appraisal shall be performed by a licensed appraiser, selected by the Bank. For loan servicing purposes the Borrower shall have to maintain a current account with the Bank. Preferential terms and conditions, concerning the agreed margin on top of the RIR, shall be provided under agreements with clients based on incoming proceeds (comprising remunerations under labour or official legal relations), in the Borrower s current account with the Bank, or upon regular payments, received in the account under a signed Comfort Current Account Agreement with individuals. Property Insurance policy, concluded in favour of UBB not later than the date of the loan drawdown and covering the entire loan period. The Bank provides an opportunity for conclusion of insurance policy with insurance company, partner of UBB AD, as the insurance premiums shall be payable monthly in interest-free installments, together with the repayment instalments under the loan and shall be included in the repayment schedule. Insurance policies with other insurance companies, providing equivalent insurance coverage, may also be accepted and approved by the Bank, pursuant to the Insurance Code. Upon delay of payment on the principal on the part of the Client, the Bank shall accrue the past due amounts with a penalty interest, equaling 5/five/ percent on top of the effective interest rate, as agreed between the parties. Upon other non-performance under the loan agreement, including in case of the entire debt s early callability, the Bank shall be entitled to accrue penalty, equaling the effective interest rate, as agreed between the parties, and a margin of 5 /five/ percent per

5 annum. In case of the Client s non-performance on the obligations, related to the loan agreement, the Bank shall be entitled to: (1) Terminate the provision of amounts under the approved loan or change the terms and conditions on its utilization. (2) Make the entire debt under the loan callable ahead of schedule upon the Client s full or partial failure to repay two installments, provision of false data in the loan application or non-performance on any other contractual obligation. (3) Initiate ex officio collection of due amounts, pursuant to the procedure, envisaged in the agreement and in the effective legislation. (4) Resort to remedy for its receivables through enforcement of the provided collateral / respectively, the debtor s entire sequestrable property, depending on the Client s choice of amenability as per Art.24., Para. 2 of the Real Estate Loans Act. With loan agreements where the Client has chosen amenability as per Art.24., Para. 2, Item 1 of the Real Estate Loans Act and in case that the collateral, instituted in the Bank s favour, has been declared null and void through legal action or a court ruling has ascertained that the mortgagor/s was/were not owner/s as of the date of establishing/registering the mortgage in favour of UBB AD, the Bank shall remedy itself from the entire property of the Borrower/Co-debtor through the general legal procedure. The Bank shall likewise remedy itself from the entire property of the Borrower/Co-debtor through the general legal procedure also upon the Borrower/Co-debtor s non-performance on any of the obligations below: - Non-disposal (unless having obtained the Bank s consent in writing) of the property, provided as loan collateral, until the full repayment of the liabilities under the loan agreement; non-institution of rights in rem nor registration of encumbrances in favour of third parties on the real estate, standing loan collateral; -Non-infliction of damages on the property, provided as loan collateral; non-rendering of substantial reconstructions thereon, nor changing the property s intended use without the Bank s consent in writing, nonundertaking or non-allowing initiation by others of any actions whatsoever that may entail decrease in the collateral value, nor partially or entirely demolishing the property; - Informing the Bank in writing about initiated proceedings regarding the provided collateral within a one-week period

6 as of the date of filing/becoming aware of the fact; - Provision of access, upon the Bank s demand, to its representatives for performing an inspection and checking the collateral s condition; - Observance of all terms and conditions of the insurance policies, while non-performing/non-allowing the performance of anything that could entail nullity, annulment or termination of insurance policies, and payment in due time of the insurance premiums /when this is not deemed an obligation of the Bank/.

GENERAL TERMS AND CONDITIONS FOR CONSUMER LENDING TO PRIVATE CLIENTS OF PROCREDIT BANK (BULGARIA) EAD

GENERAL TERMS AND CONDITIONS FOR CONSUMER LENDING TO PRIVATE CLIENTS OF PROCREDIT BANK (BULGARIA) EAD I. GRANTING THE LOAN: CHANGES IN THE CONTRACTUAL RELATIONSHIP 1. The loan shall be granted after the