Terms and Conditions of Accounts with 1 (3) Overdraft Facility Consumers Effective as of 1.1.2017. The Terms and Conditions of Accounts with Overdraft Facility 3 INTEREST RATE and the General Account Terms and Conditions shall apply to the revolving credit facility linked to the account. In the event of 3.1 Interest on floating-rate credit any inconsistency or discrepancy between these sets of terms and conditions, the Terms and Conditions of Accounts with Interest on the floating-rate credit comprises the reference interest Overdraft Facility shall apply. rate and the bank’s markup. The credit agreement sets forth the reference interest rate and the margin as well as the effect of chang- 1 DEFINITIONS es in the reference interest rate on the interest payable on the credit amount. 1.1 Mortgage loan means a consumer loan in security of which the borrower gives shares in a housing cooperative entitling its holder 3.2 Effect of a change in the reference interest rate on the to possession of an apartment, residential property or usufruct of credit interest rate property. When calculating the loan interest rate, the reference interest rate 1.2 Foreign currency loan means a home loan or a mortgage loan must be at least 0. granted in a currency other than the EU or EEA currency where the consumer resides, or in a currency of a country other when The credit interest rate for the first interest period and a change in the where the consumer earns his/her income or has assets that interest rate appear from section Credit Interest Rate under the credit he/she uses to repay the loan. agreement. 1.3 Costs of the credit refer to the total amount of interest, ex- Euribor rate penses and other charges known to the bank and payable by the debtor owing to his/her obligation to the bank, including any The Euribor rate is a euro-area money market reference interest rate costs of insurance and other additional services related to the whose determination and quotation days are based on the interna- credit agreement if obtaining the credit on the marketed terms tional practice in force from time to time. requires entry into an agreement on the additional service. Base rate 1.4 Effective interest rate refers to an annual interest rate deriving The base rate is the rate half-yearly confirmed by the Ministry of from calculating the costs of the credit in terms of annual inter- Finance. est on the credit amount and taking account of amounts repaid. OP-Prime interest rate 1.5 Distance selling refers to a transaction whereby an agreement on a service is made through telecommunications, with the cus- The OP-prime rate is a reference interest rate announced by OP tomer not meeting the bank representative in person. Distance Cooperative which is used to regulate OP Financial Group's borrow- selling excludes any transaction based on an existing online or telephone bank agreement. ing and lending rates. OP Cooperative's Executive Board determines the OP-Prime rate, taking account of market interest rate movements 1.6 Provision of information in permanent form refers to provid- and interest rate expectations. More information on the bases for OP- ing information on OP eServices or to a written notification. Prime rate determination is available at op.fi and from OP Financial The bank shall notify its eServices customers of any changes in Group's member bank branches. this credit agreement, its terms and conditions, and the bank's list of service charges and fees as well as other notifications 3.3 Fixed interest rate based on this credit relationship by sending the debtor a mes- sage on OP eServices. The interest rate applied to fixed-rate credit remains the same throughout the loan term. If the customer has no eServices Agreement with the bank, the bank will send the abovementioned notifications by post to the 3.4 Notification of interest rate address reported to the bank or the Population Register Centre. The bank shall notify the debtor of changes in interest rates as speci- 1.7 Sanctions refer to a sanction, financial sanction, export or fied in the General Account Terms and Conditions. import ban, trade embargo or another restrictive action im- posed, administered, approved or executed by the Finnish gov- 3.5 Cessation or suspension of quotation of the reference ernment, United Nations, European Union, United States of interest rate America and United Kingdom or their competent authorities or governing bodies. If quotation of the reference interest rate ceases or is suspended, the reference interest rate applicable to the credit shall be determined in 2 USE OF CREDIT accordance with a statute which is issued on the new reference interest rate or with a decision or instructions issued by the authori- Use of the credit facility requires that ties. the debtor has signed the credit agreement; If no statute on a new reference interest rate is enacted or no deci- sion or instructions on the reference interest rate are issued by the the bank has received the agreed collateral when granting the relevant authorities, the bank and the debtor will agree on a new credit, and all pledge and guarantee documents have been duly reference interest rate applied to the credit. Should the bank and the debtor fail to reach agreement on the new reference interest rate signed and in the possession of the bank; and before the end of the interest determination period, the reference any other preconditions for drawing down the credit or part interest rate applicable to the credit will remain the reference interest rate applied to this credit before the end of the interest determination thereof have been fulfilled. period. Credit may be drawn down at an OP Financial Group member coop- If the debtor and the bank cannot reach agreement on a new refer- erative bank branch, on OP eServices or by using another instrument ence rate within six (6) months of the end of the interest rate deter- intended for use of the credit. The debtor or a person authorised to mination period, the bank shall determine a new reference rate after use the credit may use a payment instrument only in such a way that hearing banking regulators. the credit limit is not exceeded. 3.6 Penalty interest If there are two or more debtors, each may singly use the credit unless otherwise agreed in writing. If any of the debtors wishes to If the debtor defaults on credit repayment or payment of interest prevent the use of credit, the bank must be notified thereof, in which charges or other charges and fees or exceeds the credit limit, he/she case the bank has the right to prevent its use. Thereafter, the credit must pay annual penalty interest on the overdue amount from the may be used only by all debtors jointly. due date until the date when the overdue amount arrives at the bank or exceeding the credit limit comes to an end. 330862e.dot Terms and Conditions of Accounts with 2 (3) Overdraft Facility Consumers The penalty interest rate is seven (7) percentage points higher than 7.2 Release of collateral the reference interest rate referred to in the Interest Act. However, penalty interest is never lower than the interest charged on the credit In case the debtor has lodged collateral in security for repayment of by the bank. the credit, the bank will release said collateral as soon as the debtor returns all of the funds, interest included, drawn down on the basis of If the interest charged by the bank prior to the credit maturity is high- the credit agreement. er than the penalty interest referred to in the Interest Act, the bank will have the right to charge this interest as penalty interest for a 7.3 Non-binding ancillary contract maximum of 180 days from the date on which the entire credit has matured, but only up to the day on which the relevant court has Another contract related to the credit agreement will not be binding issued a ruling regarding the credit. Thereafter, the credit institution on the debtor in case he/she cancels the agreement, if such ancillary will charge penalty interest under the Interest Act. service is provided by a bank or a third party on the basis of an agreement or another arrangement between the third party and the 4 CHANGE IN CHARGES AND FEES bank. The bank shall notify of any changes in charges and fees in the If the debtor wishes to keep the ancillary contract in force despite manner specified in the General Account Terms and Conditions. cancellation of the credit agreement, he/she must inform the bank in permanent form thereof within 30 days of sending the notice of can- 5 POSTPONEMENT OF THE REPAYMENT DATE cellation. In case the ancillary contract remains in force, the bank will charge a price based on the contract. If the due date is not a business day, the repayment date of credit and the related interest and charges related to the management of 8 CLOSING THE ACCOUNT DUE TO NOTIFICATION BY credit will be postponed until the next business day. In such a case, AN EXECUTION OFFICER the bank will charge credit interest, according to the interest determi- nation period preceding the postponement of the repayment date up If an execution officer notifies the bank of a prohibition of payment or to the postponement date, on the entire remaining principal of the remittance pertaining to the credit, the bank shall have the right to credit.