Other provisions

Question

Other provisions

Accepted Answer

1 Loan maintenance commission per effective year of the contract - Contractual

2¹ Maximum period of master contract on performing loan transactions - 240 months

3 Fee for concluding the master contract on performing loan transactions - Contractual

4 Application screening fee for amendments to the terms of the decision on satisfying an effective application until the conclusion of contracts - Contractual

5 Application screening fee for re-approval of the decision on satisfying an effective application - Contractual

6 Application screening fee for the review of an effective credit instrument except for the contractual terms of letters of credit (pledge contract excluded)

Only for a credit instrument secured by primary pledge (except for letters of credit) - Contractual

7 Any amendment to the letter of credit (except for increasing an amount, extending a time period) - AMD 30,000

Fee for increase in the letter of credit amount or time period extension - Contractual

8 Fee for amending the text/content of a guarantee letter (whenever no amendment to the decision or a new decision-making is required) - not charged

9 Fee for substituting the collateral (not applicable to instances of substituting the collateral) - Contractual

- for finds (including term and on-demand)

- for CBA-released securities

With state treasury bonds of the Republic of Armenia

- for bonds released by the Bank

- for standardized gold bars

10 Upon the customer's request, any other security deposit release fee regardless of the number of property units pledged under the contract - Contractual

The decision on satisfying the application shall be effective for 30 days upon issue
Applying terms stricter than those set out in this document shall not be deemed a deviation therefrom
	1 For an HPP, the maximum validity period of the master contract shall equal that set out in the terms of lending

Loan type		Import Letter of Credit²
	Provisions ¹	P: Bank Turnover Worth AMD 5bn, and More or Top 50 Taxpayers of Armenia	A : Bank Turnover Worth 1.2-5 Billion
1	Purpose	Acquisition of operating assets, acquisition of fixed assets/capital investments	Acquisition of operating assets, acquisition of fixed assets/capital investments
2	Currency	In accordance with the list released by the Central Bank of Armenia (CBA)	In accordance with the list released by the Central Bank of Armenia (CBA)
3	Maturity	In accordance with the contractual timeframe of the transaction	in accordance with the contractual timeframe of the transaction
4⁴	Interest rate or Issuance/release fee	Contractual	Contractual
	Release of Letters of Credit approved by a foreign financial institutions (FFI)	Contractual	Contractual
	If secured only by cash funds and/or bonds issued by the Bank:	Contractual	Contractual
	Release of direct Letters of Credit (without FFI approval)	Contractual	Contractual
	If secured only by cash funds and/or bonds issued by the Bank:	Contractual	Contractual
	Payment under a letter of credit	0.15 %, min. AMD 5,000 max: AMD 75,000	0.15 % min. AMD 5,000 max: AMD 75,000
	For accepting and checking documents without discrepancies	Free	Free
	For accepting and checking documents with discrepancies	Free	Free
5³	Application screening fee	Not defined	Not defined
	Application screening fee	Not defined	Not defined
	For loans secured only by cash funds and/or bonds issued by the Bank (charged per each loan instrument)	Not defined	Not defined
6	Charging of issuance/release fees	One-off, i.e. - upon issuance, throughout the entire effective period	One-off, i.e. - upon issuance, throughout the entire effective period
7	Borrower, available bank account	Mandatory	Mandatory
8	Minimum amount	Not defined	Not defined
9	Maximum amount	Not defined	Not defined
10	Pledger	Resident and non-resident legal entities in the Republic of Armenia, individual entrepreneurs, individuals of full legal age (18 and over)	Resident and non-resident legal entities in the Republic of Armenia, individual entrepreneurs, individuals of full legal age (18 and over)
11	Letter of Credit recovery	Annex 1	Annex 1
12	Penalties, fines	Contractual	Contractual
13	Insurance	At the Bank's request	Cargo insurance in case of export/import financing (if required) or in other cases (upon the Bank's request)
14	Other provisions	Annex 2	Annex 2

¹	Clients shall be granted classes subject to the Bank's "Procedure for Classifying Corporate Clients
²	The CBD Trade Finance Department shall be the subdivision responsible for FFI commissions
³	A commission imposed by a foreign financial institution (FFI) shall be charged separately; an incomplete quarter shall be deemed a full quarter. Application screening fee for a foreign currency credit instrument, the settlement and charging shall be made in AMD relying on the conversion sale exchange rate effective at the Bank upon making the payment
⁴	For a foreign currency credit instrument, the exchange rate equals the sale exchange rate effective at the Bank upon issuing the credit