<p>HYPO ALPE ADRIA BANK Terms for submitting a credit claim - Claimant holds Montenegrin citizenship - Age: from 18 – and the last annuity is due before the age of 65 -Account with the Hypo Bank: regular account holder -Employment: permanent employment</p><p>Credit capacity of the parties to the credit - Monthly annuity has to be equal or less than 50% (1/2) of the net monthly income after other deductions -If the beneficiary does not fulfil the aforementioned credit capability condition, credit capability can be supplemented </p><p>Documentation needed</p><p>- Credit Claim Form filled in - Borrower Data Form filled in - Administrative ban on all parties to the credit; - Certificate/Declaration form filled in and certified - Photocopies of identity cards of credit beneficiaries and joint guarantors -Certified payment orders of earnings for the last three months of all parties to the credit -Abstract from property registers and Real Estate Register, not older than 3 days ;</p><p>Security instruments </p><p>- Two creditworthy indorsers for credits up to € 5.000 -First mortgage of the least estimated value of 1:1,25, for credits to the amount higher than € 5.000 - Real estate insurance against basic risks; - Administrative ban of credit beneficiary (endorser); -Bill of exchange authorization signed by the credit beneficiaries and joint gaurantor -Bill of exchange signed by all parties to the credit; -Life insurance for credits to the amount higher than € 5.000 and repayment period longer than 10 years - Joint Guarantee Contract or Declaration of Joint Guarantee - Bank can require additional security </p><p>- NikšiĆka bank AD NikšiĆ Interest rate and other expenses - Fixed interest rate: 6,4% annually, out of which share of the interest rate repayment of the Government of the Republic of Montenegro is 2,4%, while the rest 4% is repaid by the credit beneficiary; - Default interest rate: One third of regular interest rate, augmented by one percentage point in relation to the normal interest rate; - Fee: 0,50% one-off payment from the amount of the extended credit, on the occasion of granting the credit; - Pre-term credit repayment: 2,00% for the remaining amount of the credit principal;</p><p>Credit risk security - Three endorsers, certified administrative bans for credit beneficiary and endorsers (i.e. permanent order of suspension of a part of income to the benefit of the Bank) and a blank bill of exchange with the credit beneficiary's acceptance, avalled by the endorser are needed for credits up to € 5.000,00;</p><p>- For credits from € 5.001,00 to € 30.000,00, first mortgage is taken out and the credit beneficiary submits to the Bank also 2 (two) certified administrative bans (i.e. permanent order of suspension of a part of income to the benefit of the Bank) and a blank bill of exchange with the credit beneficiary's acceptance. Apart from the housing space which is being purchased or reconstructed from the credit funds, the credit beneficiary can offer also another's real estate as mortgage to be taken out in favour of the Bank, with presentation of its owner's approval certified by court. Minimum value of the hypotecated real estate must be by 50% higher than the credit amount to be extended. Estimate of the real estate value in order to take out a mortgage is done by the Directorate for Real Estate of the Republic of Montenegro. </p><p>Property insurance - on the occasion of concluding the credit, credit beneficiary is obliged to present to the Bank an insurance policy of the hypotecated real estate, which is vinculated in favour of the Bank.</p><p>Required documentation - credit claim, - certificate of the income amount, - request for issuing a permanent order for suspension to the Bank or administrative bans, - blank accepted (avalled) bill of exchange, - Copies of Identity Cards for credit beneficiary, co-debtor and endorser, - Real estate certificate for mortgaged real estate, i.e. a copy of urban plan paper (only for house, if it is mortgaged), - insurance policy of hypotecated real estate, - certificate of the housing space ownership (for adaptation and reconstruction), i.e. certificate of non-ownership of a housing space (for purchase crediting), - certificate of household, - certificate of years of service. Credit realization - Credit up to € 5.000,00 is disbursed by transfer to the credit beneficiary's account, which is open with the Bank. - Credit exceeding € 5.001,00 is disbursed to the Bank giro account of the housing space sellers or contractor of adaptation or reconstruction works, </p>