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LICENŢǍ WORKS

LOANS FOR HOUSING AND ITS PROCESSING at Banca Transilvania

The Christian University "Dimitrie Cantemir"


BUCHAREST

Faculty of Economics

Cluj-Napoca

Specialization: Finance and BǍNCI

Cluj


2010

CONTENTS

INTRODUCTION ................................................. .................................................. ........ 3

1. TRANSYLVANIA BǍNCII development and organization .... 5

1.1. History of Transylvania Bank ... ... ... ... ... ... ... ... ... ... ... ... ... .......... 5

1.2. Transylvania Bank Structure ... ... ... ... ... ... ........... ... ... ... 6

1.2.1. Transylvania Bank Management ... ... ... ... ... ... ... ... ... ... ... ... ...................... 6

1.2.2. Committee officers and responsibilities ......................... 7

2. PRODUCED ON LOAN FROM BANK TRANSYLVANIA ..................... 9

2.1. BT credit situation ............................................. ..... 9

2.2. Credits for individuals ... ... ... ... ... ... ... ... ... ....... ... ... ... ... ... ... ... ... ... ... ... ................... 10

2.2.1. Home Loan Casǎ ... ... ... ... ... .... ... ... ... ... ... ... ... ... ... ... ... ......................... 10

2.2.2. Consumer credit ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ... ...... ... ........ 12

2.2.3. Mortgage loan ... ... ... ... ... ... ... ... .. ... ... ... ... ... ... ... ... ... ... ... ... ......... 13

2.2.4. Bridge loan ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ....... 13

2.3. Corporate officer ... ... ... ... ... ... ..... ... ... ... ... ... ... ... ... ... ... ... ......................... ... 14

2.3.1. Start Up Loans ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ......... 15

2.3.2. Fast Loans ... ... .... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ......... 15

2.3.2.1. Without any proper investment credit ..................................... 16

2.3.2.2. Zero interest credit ............................................... ................. 17

2.3.2.3. 100% input credit .............................................. ........,..... 17

2.3.2.4. Loan "An hour without any investment, the EBRD sources ........... 17

2.4. Corporate credit ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..... ... ... ... ................... 18

3. General considerations

FOR loans ............................................... ........... 20

3.1. Credit terms of content and relationship ... ... ... ... ... .. ... ... ............................ 20

3.1.1. Credit functions ... ... ... ... ... ... ................................ ... ... ... ..... .. ... ....... 20

3.1.2. Distinctive features of credit ... ... ... ... ... ... ... ... ... ... ......... 21

3.1.3. Loan classification ................................................ ............................... 22

3.1.4. Credit policy ............................................... ..................................... 23

3.2. Considerations regarding the risks in lending ............................................. .. 24

03.03. And interest rate ... ... ... ... ... ... ... ....................................... ............... 25

3.4. Commissions ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... ... ... ... ... ... ........ 28

4. LOANS FOR HOUSING ............................................... .................... 29

4.1. General considerations on housing loans .................... 29

4.2. Credit supply to residential ............................................. ................ 30

4.2.1. Transylvania Bank Offer Housing ...................................... 30

4.2.2. Housing Bank ............................................... ............................. 30

4.2.3. National Housing Agency .............................................. ........ 31

4.2.4. Other bidders for housing credit ............................................ .. 32

4.3. Importance locuinţǎ credit .............................................. ............ 32

4.4. Need new real estate projects ............................................. .............. 33

5. ELIGIBILITǍŢI FINANCIAL ANALYSIS OF CUSTOMER ............. 35

5.1. Analysis bonitǎţi individuals .............................................. ................ 35

5.2. Financially economical and legal persons ........................... 36

5.2.1. Liquidity Analysis ................................................ ........................................ 38

5.2.2. Solvency analysis ................................................ ................................ 39

5.3 The grant and loan approval ............................................. ................. 39

5.3.3. Credit Contract ............................................... ................................... 40

5.3.2. Secure credit ................................................ ............................... 41

5.3.2. Credit insurance ................................................ ............................... 42

5.4. Repayment of loans and payment rates ............................................. ..... 43

5.5. Collateral execution ............................................... .......................... 44

6. GRANT a mortgage

At Banca Transilvania (CASE STUDY) .................................... 45

CONCLUSIONS AND PROPOSALS ............................................... ................................... 49

1. Conclusion ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... ... ... ..... ... ... ..... 49

2. Proposed ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... ... ... ... ...... ... .. 50

ANNEXES ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ... ... ... ... ... ... ... ... ... ... .. ... ..... 52

Annex 1. Request credit for individuals ... ........................................... 52

Annex 2. Income ... .............................................. .................................. 55

Annex 3. Consulting agreement database CIB

Banking ... ................................................ .................................................. .... 56

Annex 4. Agreement transmission, processing and consultation shall

to s.c. Credit bureau ... ... ... ... ... ... ... ... ... ... ... ... ................... 57

Annex 5. Affidavit ... ... ... ... ... ... ... ... .......................... 58

Annex 6. Credit agreement for individuals ... ... ... ................................ 59

References (selective) ... ... ... ... ... ... ... ... ... ... ... ... ... ................................. ....... 63

INTRODUCTION

To better predict future cash banks and there should see more detail about their past, and this requires a new, thought to perceapǎ truth about our world. "The thinking is new for a new world in our understanding, under which runs LOGO society movement as a whole and its main structure, its submission on the staircase historic progress."

Reconsideration of antiquity, the money was used to buy or sell products, becoming the most widely used means of flat, long, consisting of gold or other precious materials. "Aristotle once considered for the first unit of mǎsurǎ money value." Sometimes, traders just figured exchange goods without using monetarǎ mǎsură unit, but these shifts yield was much lower than that used in the precious metal coin. "Today, money used to plǎţi numǎr are the land of great and very different. Money was and continuǎ life be many ways known in particular under the name of money metal, paper money, electronic money, money in your account, scriptural money, credit money, valutǎ, money with intrinsic value, money materials and other forms of money used in economics.

In the Middle Ages, zarafii were separated as a category socialǎ which dealt with trade in currency and coin localǎ foreigners. Bank in the modern sense is a product of both the organized and legalized cămǎtarilor has dezvoltǎri broker dealers antiques and survivors of the Middle Ages, but a result of circulation of a different kind of money at the side of precious metal or of intrinsecǎ currency value by creating cash changeover.

The first bank appeared in Venice in 1171 because of Doge Michele XI named Banco di Venice, in order to receive city funds. The emergence of banks in the normal sense and constructive social and cultural one can speak of the first modern banks as Bank of Amsterdam in 1608, Bank of Hamburg in 1619, the Bank of Stockholm in 1650 and the Bank of England in 1694 and left some of them until you today, interest charged on loans and fees applied to accounts and deposits represent sources of income and ultimately the profitability of these banks. Subsequently developed and better organized than other banks to reach today's complex and competitive banking system in all respects.

Commercial banks have an important role in the exploitation of capital, mobilizing resources and bank loans between agencies. Equity holders and creditors their beneficiaries carry trade debtors money. Bank deposits called dobândǎ cost of supporting a bonus and then granting credit in obtaining money accumulated earnings through interest and fees collected, the most important activity is actually lending activity. Banks only accept relationships with customers and qualifying their customers împrumutǎ exercitânduşi fair exchange functions, storage, transfer and financing.

Commercial banks is a basic link of any banking system and carry out all types of banking transactions. However, basic operations are represented by making deposits and using them to issue credit traders. They are organized as limited companies and seeks profit by exercising its role as intermediary agents of non-banking system.

Concentration banking sector has become a current phenomenon, while in Romania is in the process of enlargement. The banking system is complex due to technical knowledge and information, due to financial instrumentation in the money market, capital and valutarǎ but modern security systems and credit and the use of "monedǎ elecronicǎ" using cards and internet banking which is a altǎ complexitǎţi dovadǎ the banking system. As regulated banking system is the quality of commercial bǎncilor National Bank direct subordinates principal responsibility and stability in the Romanian banking system. An important role in maintaining financial balance of national economy and it's activities in lending is the principle of budgetary balance that may influence the central bank policy and lending those affected. A modern banking system refers to the fact that it takes more advantageous contractual conditions and creating a framework for recovery of loans granted in terms of transparency and free competition.

Organization and operation of commercial banks is regulated in Romania of legally Law (No. 31/1990) on the company and the Emergency Ordinance (No. 99/2006) on the community's credit and capital adequacy. Also Law (No. 58/1998) for banking, subsequently amended several times by law (no. 437/2001), Law (no. 485/2003) and Law (no. 131/2006) which then was subsequently repealed by Ordinance (No. 99/2006) on credit institutions and capital adequacy. In turn Law (No. 227/2007) to approve Emergency Ordinance (No. 99/2006) on credit institutions and capital adequacy is used to regulate banking activities including Transylvania Bank as banking and credit institution.

This paper aims to explain how housing loan processing, is divided into six chapters, the first chapter aims to present the development and organization of Transylvania Bank, lending to its body structure and the second chapter detailing products from those related to credit BT. Chapter three considers the theoretical generalities of credit, and in chapter four it comes to credit for housing, basic subject of this paper, in chapter five proceed to an analysis of financial indicators against which one can evaluate a company or a natural person and the last chapter deals with a case study on a loan specific person. At the end of the paper was attached appendices contain documents of private credit file of Banca Transilvania. From the theoretical work contains the most important elements of credit that should know each pawn involved in any housing loan or credit or debit or any other governor of any credit.

1. DEVELOPMENT AND ORGANIZATION BǍNCII TRANSYLVANIA

1.1. History of Transylvania Bǎncii



BT (BT) is a "banking institution headquartered in Cluj-Napoca, Romania. Bank's success story began in Cluj-Napoca in December 1993 and February 16, 1994 became operaţionalǎ by opening branches in Cluj-Napoca on the initiative of businessmen from Cluj-Napoca, capital of 2 million lei. The idea was to have a local bancǎ only cǎ's entrepreneurial founders led sǎi strengthen the position of Banca Transilvania, a stage primǎ in Cluj-Napoca and then regionally.

"Talent visionary" BT has made these banks to become a reality and an alternative time and have success than its founders expected. The Bank began operations oriented to the "selection and financing of investment projects and financial investment" and, due to market, it soon began to dedicate and retail area. BT was ranked in fourth position in December 2005 in the number of branches and agencies, the number 285. BT had 19 outlets in Cluj-Napoca, where the headquarters of the bank. According to NBR, in March 2006, BT ranks in the top nine largest Romanian bank with assets worth 1.494 million euros.

In August 2007, BT was ranked fifth place among Romanian banks based on assets (with 3.14 billion euros) and fourth position in terms of number of branches. In 2007, BT has set up its first branch outside Romania, at Nicosia in Cyprus. According to Board President (Horia Ciorcilă), BT had to enter the Moldovan market as one of the expansion for continued growth after 2008. BT exchange value of the switch in 2007 to below 2 billion, but after the drastic correction that followed the financial markets, the bank reached a market capitalization below 300 million in 2009.

BT have opened in the first half of 2009 over 500 locations 400 locations toward 2008. Active customer base grew, reaching the end of 2009, to 1.34 million active customers to over 1.2 million active customers at the end of 2008. Number of employees at 30 June 2009 was 6035, with an average age of 32.4 years. BT activity results in late 2009 led to an increase of 1.22 times BT Heritage in late 2008.

In December 2009, Bank of Cyprus has purchased a package of 9.7% of securities transactions on BT by the Bucharest Stock Exchange, totaling 58 million euros. BT is listed in the index and BET-10 at the Bucharest Stock Exchange. To see better how the new ownership of BT shows, see Figure 1.



Fig. 1.1. Transivania Bank shareholders.



BT Financial Group currently hold, in addition to BT, and companies that have invested: Insurance and Reinsurance company BT Asigurari, BT Leasing, BT Securities. In addition, BT Direct will complement these services, the Consumer Finance industry coverage. BT Financial Group will carry the BT logo in the center of power will be BT, which has the participation rate of 100% or majority positions in the subsidiaries.

According to the bank's founding documents, no shareholder may own more than 5% of the equity of the bank without the consent of shareholders in general meeting (AGM). European Bank for Reconstruction and Development (EBRD) Bank's largest shareholder owns about 15%. EBRD to Banca Transilvania became shareholders in 2001. BT is also the position of the first 40 brandurii 35 in Romania and among the world Top 400.

In these conditions of instability in international markets, regulatory authorities in Romania, especially the Government and National Bank of Romania, have adopted a set of policies for economic recovery to mitigate the economic crisis, sǎ protect national currency and to support the banking system.





1.2. Organizatoricǎ structure and bank management



1.2.1. Transylvania Bank Management



The basic organizational levels are represented by the Central Bank Transylvania and work units and an executive meeting and ordering of the subordinate. Represent the central core of the institution and assigned primarily attributes the organization, direction, coordination and supervision of bank activity with the task to ensure normal development and the new bank under EU rules. Organizational structure is given bǎncii bank.

Network intelligence unit is composed of regional branches, local branches, agencies, work and exchange offices. Operational units are organized for business lending and retail customers and corporate responsibility to conduct their banking transactions with customers directly.

The Board manages the BT, he was elected by the Assembly of Shareholders Generalǎ and aims to "maximize profits and minimize risk, subject to regulatory restrictions. By qualified executives is înfǎptuitǎ Management Committee, its powers delegated by the owner under cǎrora Board monitors and responds to how hotǎrârile Adunǎrii General Shareholders and Board of factual translate into practice. "Magic is not performance training a single person." Executive Management is exercitatǎ of the many charitable ie May of the following enumeration:

- General;

- Deputy Director General;

- CEOs members CM;

- CFO;

- Directors of directorates of the central bank;

- Regional managers, branch managers Coordinators;

- Directors of subsidiaries and operations of the branch managers and heads of operational departments (heads of agencies, service chiefs, heads of offices).

Director General, Deputy Director-General and Executive Directors Management Committee members meet quality single-driving organ. Through their leadership and guidance necesarǎ guarantees the connection between leadership and management administrativǎ executivǎ to realizǎrii strategic plans approved by the Board.

Collective management bodies are:

- Board of Directors;

- Management Committee;

- Banking and Risk Management Committee;

- Assets and Liabilities Management Committee;

- Risk Committee on Operations;

- Appropriations Committee (credit policy);

- Credit and risk committees of central bǎncii;

- Human Resources Committees;

- Internal Control Committee of Innovation;

- Audit Committee;

- Credit and Risk Committee of Branches şiAgenţii.





1.2.2. Appropriations Committee and its responsibility



Committee of Central Bank credit and risk Transylvania mainly aims to establish credit policy and analysis and loan approval has the following composition:

1. Credit and Risk Committee Composition 1

- Risk Management Coordinator Officer

- Director of Directorate of Corporate Loans

- Legal Advisor

2. Credit and Risk Committee Composition 2

- Director General;

- Deputy Director General;

- Executive Director;

- Director of Corporate Loans and Director of Retail Loan;

- Director of Risk Management;

- Legal adviser.

Credit and Risk Committee (RAC RAC 1 or 2) analyze and discuss each case documentation that proposals are promoted to corporate officer concerned individuals. Credit Committee examines employment and credit risk strategy by the Committee established credit, interest, commissions that specifically apply to BT and the incidence of credit risk arising from or in connection with the person or societatatea reprezantanţilor borrower and its legal guardians and taking decisions on loan approval or rejection of the proposal by consensus of members participating in the analysis.

To fulfill the tasks imposed, colaboreazǎ Appropriations Committee with the Committee Management Assets and Liabilities and other specialty lines of BT Central and branches.

Appropriations Committee sets strategy in transposing creditǎrii Practically mǎsurile established the Board of Directors or Management and guarantees the Committee and is responsible for the management of credit and to smooth their reimbursement.

Also individually oficerul officer, one officer of the committee pawns makers will meet some of the tasks that will be listed below:

- Open and close the accounts given for BT customers under the bank's internal rules or relevant legislation and, where appropriate, take steps to block transactions initiated whose legality is unclear or suspicious;

- Assess the eligibility of clients on the proposal to credit;

- Examine proposals on lending operations under the bank credit policy and legislation;

- Analyze transactions in terms of credit risk;

- Identify and propose appropriate financial solutions tailored to the situation and customers;

- Develop commercial relationships with bank customers, natural or legal persons;

- Maintain and develop existing customer portfolio;

- Supports the trading activity for BT customers.

Oficerul credits towards the Appropriations Committee in that it belongs to is part of the Committee also examines reports of credit risk assessment and decide when you need to prepare reports for department CARB less important but essential to maintain the balance loans to the branch or agency concerned.

2. Credit Products at Banca Transilvania

2.1. BT credit situation



The balance of credits granted by BT (TLV) in 2009 increased by 8.5% over 2008 to 12.17 billion RON thus an increase of about EUR 225 million in 2010 and has remained at 2009 levels. Of total loans, 58.44% are loans to companies and 41.56% are loans to individuals. TLV shares on the BSE situation can be seen in Figure 2.1.



Fig. 2.1. Intensity TLV shares on the BSE.

Moreover, the share of nonperforming loans was 4.8% last year in total, ie about 584 million RON. Also, the bank reserves in 2009 amounted to 533 million nonperforming loans, which have reduced much of the profits. Report loans / deposits is of 0.81 against 0.93 at the end of 2008 and 2010 level of 0.81 was retained in 2009.

BT also has significant credit resources for individuals, legal and corporate move, but current conditions are as stringent and can be difficult to achieve. In terms of bank marketing, product and service concept to meet the needs as fairly and identify market segments and Holder, also must "promote and to follow sǎ manage products to achieve strategic objectives considered basic and : return, stability, quality, customer satisfaction, competitiveness.

Offer BT has a range of products gamǎ financing for the purchase or construction of housing. BT uses a set of techniques, processes and tools specific to derulǎrii a competitive business offering attractive loan portfolio or as a credit on each design.

BT also offers customers banking and other tipurii to produce very much appreciated by customers as BT would be saving products: term deposits with banks and investment funds capitalization bonds BT, BT, BT Index, BT Max, BT Invest funds managed by BT Asset Management SAI S.A. addressing natural and legal persons, Romanian and foreign, who have a genuine interest to invest in Romanian capital market.





2.2. Loans to individuals from BT



BT offers you variatǎ offer credit to individuals. Loans are distinguished by flexibility and attractive interest rates, addressing the desires of a growing number of customers. In the credits for individuals, most banks have made in recent times, some personalization to them, immersing them in packages of products and services are subject to actions which aim marcheting acquisition of new segments of the market. BT is to offer individuals more types of mortgages and real estate also has the "First House" and a long-term "bridge loan" medium-term credit.

Necessary acts of individuals credit file specific Transylvania Bank are:

- Evidence of income: salary certificate, copy of card work or individual employment contract, other evidence of income (pensions, rents, dividends, incomes from independent activities, other permanent income);

- Precontract selling buying

- An updated statement of land;

- ID (for the spouse, the original and one copy);

- Marriage certificate (if the original and one copy);

- Credit Application (Type BT);

- Agreement to consult the Credit Bureau;

- CRB Consultation Agreement.





2.2.1. First Home Loan



This type of loan from BT is a program but is a result of the need for continuation of credit from previous years 2009 through which individuals can buy homes through credit agreements. Implementing rules of the "First Home" which is valid only in Romania. According to the report submitted to the Bucharest Stock Exchange, BT has provided about 600 loans in 2009 through the "First Home", the funding of over 27 million. 2010 runs this program as the "First Home 2 'with almost the same conditions as in earlier years

To see the difference between this type of loan volume from BT and the other processors on the Romanian market that has "First Home 2 'you prosecution Figure 2.2.





Fig. 2.2. Ceilings for bank guarantee

participating in "First house in February.



In the First House to a maximum credit that can climb to 95% of investment value, max. 57000 EUR or equivalent LEI also credit characteristics "First House" can be seen in Table 2.1.



Table 2.1

Credit characteristics "First House" from BT

Currency

Loan Period

Loan Loan Amount Interest

actual fee

file analysis fee

administration

monthly fee

reimbursement

anticipated management fees of FNGCIMM:

LEI max 30 years 233 700 14% 0.15% 0.49% 0.2% nil

EUR max 30 years 57 000 9% 0.15% 0.49% 0.2% nil



Important benefits are until you indebtedness of 60% flexibility in file analysis, very attractive cost, life insurance is not required, the assessment will be conducted by an appraiser approved free. Advance requested is 5% of the purchase price of the house, if its price is less than or equal to 60,000 Euro.

Conditions that the borrower have collateral deposit interest with BT to ensure valid throughout the period of credit in an amount equal to three interest rates, to make a solemn declaration of the beneficiary, once the true form of ownership that have not a locuinţǎ, together with their spouses or others, nor have in place another mortgage, which undertakes to fulfill the program's eligibility criteria and FNGCIMM guarantee payment in case of impossibility of considering the investor cǎ advance will lose 5% if the commitment to withdraw from the contract, also is particularly the credit and responsibility Affidavit signed before the official BT, which undertakes to fulfill the eligibility criteria of the program (for beneficiaries who purchase homes that is to be built or red).





2.2.2. Housing Loan for Individuals



Finanţǎrii real estate loan is intended purchase of land, houses or apartments and housing finance or upgrades. Maturity is 25 years.

Advantages of mortgage by BT are obvious:

- Costs are very small;

- Investigating commission is 1.5% of the loan and the annual management fee is 100 RON;

- Credit can be paid in advance, with very low fees for early repayment;

- Rates can be paid directly to the current account;

- Life is only required for loans over EUR 25.000;

- Very low rates, only 9.5% per year for EUR variable or 10.5% per year for the first three years fixed GBP.

Real estate credit for individuals can be seen in Table 2.2.

Table 2.2.

Features "Mortgage loan" for individuals from BT

Currency

Loan Period

Max loan amount

Interest credit

actual fee

award fee

Annual management fee

reimbursement

advance fee risk



LEI max 25 years 1,025,000 10.5% 1.5% 0.5% 150 2% LEI

150 000 EUR max 25 years

EUR 35.93 EUR 9.5% 1.5% 0.5% 2%



Level credit which can be contracted only if you deposit 15% of the total investment and involves submitting to determine on its underlying instruments: value of the sale contract authenticated by a notary public, that the estimate of work under legal rules (property act, building permit) can also request a credit that could reach 250000 EUR, a considerable amount just enough given that the land value will not depăşii 85% of the actual value of that land.

Guarantee is by mortgaging the property to be purchased or mortgaged to other real estate. Monthly payment (principal + interest) should not exceed 35% of the net income of the applicant or his family, calculated as the difference between total revenue and commitments, outlined in the affidavit.



2.2.3. Mortgage loans for individuals



Mortgage Loan Bank Transylvania acordǎ "under the provisions of Law no. 190/1999 on "real estate mortgage investment and reglementǎrilor applicable law." This loan is for purchase, construction or modernization of housing.

This loan has a credit period: 25 years and a maximum level of credit that you can control is 75% of the cost of the proposed investment is determined based on: valoarii of the sale contract authenticated by a notary public, that estimate works (note the ownership, construction permit, etc..) also features this credit can be seen in Table in Table 6.

Benefits are eligible for selection by BT mortgage may be:

- Costs are very small;

- Advance loan can be paid without incurring additional charges;

- Rates can be paid directly to the current account;

- Life is only required for loans over EUR 25.000.



Table 2.3.



Features "loan" from BT.

Currency

Loan Period

Max loan amount

Interest credit

Fee effective

award fee

Annual management fee

reimbursement

early

LEI max 25 years 1,025,000 10.5% 1.5% 150 2%

Max EUR 1.5 million 25 years 9.5% 1.5% 35.93 2%





2.2.4. Bridge loan



Bridging loan is a short or medium term loan that can be given to those customers who have a home they intend to sell but need time for funding supplements a housing loan or mortgage or to purchase a new property.

This credit can be used as destination:

- Temporary funding in addition to a mortgage loan to purchase property or real estate / construction of a new real estate (plus advance from its own bridge loan plus housing loan / mortgage);

- Temporary financing for the purchase of a new real estate construction imobiluluisau (plus credit advance from its own deck);

- Customers who do not have the request for the amount of money to be required for advance purchase property or build a new property, but a real estate property (apartment or house) that it intends to sell later.

Credit level you can control is more than 75% of the actual building that will be sold and mortgage characteristics for individuals can be seen in Table 2.4.





Table 2.4.



Features "bridge loan" from BT.

Purpose of loan period

Max loan amount. Interest credit

actually Fee Fee Fee refund within six months

reimbursement fee in the first 12 months

Refund in 12-18 months

acquisition of property for 12 months zero 100000 EUR 1% 6% 12% 18%

construcţide property for 18 months 100 000

Zero EUR 1% 6% 12% 18%





2.3. Corporate Loans



BT to start its allocated resources and work more on this activity during the crediting of the companies but has been perfected and other services. "Loans to customers represent the legal person for orcare The trade bank, the most important asset investment, the highest yield, bringing revenue, as the financial support of its existence."

The advantages of this type of loan is that it ensures any warranties or guarantees of the mix supported by BT: mortgages on property or land, with or without deprivation pledge on movable property or securities, assignment of receivables, fidejunsiune, letter bank guarantee or letter of guarantee issued by a bank guarantee fund approved.

Corporate loans are designed especially for small and mişlocii and analysis differs simplificatǎ loans, fast loans, letter of credit, loans for business start-ups, rapid credit EBRD sources.

Some of the components necessary loan documents for legal persons are:

- Last balance sheet (half) endorsed by the authorized bodies, together with associated balance;

- Ended last trial balance of society, but not older than 2 months;

- Credit application (BT type);

- But recently finding certificate as a maximum length of 30 days (can be obtained by BT);

- Declaration of group relations;

- Approval of contracting credit and legal persons empowered to bind the company;

- Agreement to consult the Credit Bureau;

- CRB Consultation Agreement;

- Legal acts establishing and CUI.





2.3.1. Start Up Loan



Advantage Credit Business Start-Up are newly created or operated for more than six months. Should only cover 25% of the investment and business can borrow up to 35,000 lei and the option to Start-Up Plus 85 000 RON. It also requires at least two endorsers individuals, regardless of amount, and in addition to 35,000 LEI can accept credit purchased goods but between 35000-85000 LEI is required destination mortgage on a rental space.

The condition is to have a well prepared business plan to know for sure what you intend, the business plan is also prepared to "to fix your business objectives and how and where these limits are reached. The business plan will need to present your work relationship with the company imobiliarǎ market and organizaţionalǎ strategy and investment projects approved ready to make sure you get credit cǎ Start-Up. It is better to use this credit only where secure opportunities and gain due to relatively short term of repayment is also reported here some features of this loan in the table in Table 2.5.

Table 2.5.



Features' Start-Up Loan "from BT

Type of Loan Period

Loan Period

Loan amount Interest Grace

effectively advance

Fee required

grant

Start-Up max 6 months 60 months 18% 25% 35 000 LEI 2.5%

Start-Up Plus max 6 months 60 months 85 000

LEI 18% 25% 2.5%





2.3.2. Fast Loans



Benefits of these types of loans is that it is a new product that addresses small and medium companies. Loan purpose is to allow faster access to finance as small and mişlocii, providing them the necessary capital to make investments, financing working capital or start a new business.

Conditions of access to such a loan are:

- Minimum period of operation of the company 12 months later the credit.

- According to the latest evolution of the turnover balance sheet of the Borrower is positive;

- According to the latest balance sheet of the Borrower recorded operating income;

- CIP have not been in more than three major incidents in the last six months;

- On loans contracted in the last 12 months included in CRB with debt service;

- Your company is financially stable.

Some quick loans can be seen in Table 2.6.

.

Table 2.6.



Features of "Fast Loans" from BT

Loan Type

Loan Period Loan currency loan interest charges

perceived

Investment credit without proper consideration five years 50 000 16% fee award LEI 1.5%

Monthly management fee of 0.15%

12 months zero interest credit 12000 EUR or RON equivalent of granting a fee zero%



Lender input LEI 100% 15% 12 months 35 000 1% commission drawing

One hour without any investment credit, sources EBRD EUR 50000 or equivalent 36 months LEI 16% commission to grant 1.5%

Monthly management fee of 0.15%







2.3.2.1. Investment credit without proper consideration



The advantages are that it requires advance funding is not the entire bill and no collateral is required, also enough to come up with invoice to the bank. BT will pay the bill and guarantee the property will be purchased from the credit. That credit can purchase fixed assets: machinery, equipment, automobiles or other bunurii industrial plant or production purpose.

The loan is approved the same day the application is made and granted for a period exceeding five years. Loan amount can be up to 50,000 lei. The loan is repaid in equal monthly installments, the client benefits from a grace period of three months.

Minimum conditions of this loan are:

- Minimum period of 12 months operation of the company;

- According to the latest evolution of the turnover balance sheet of the Borrower is positive;

- According to the latest balance sheet of the Borrower recorded operating income;

- Borrower has not been registered in CIP with more than three major incidents in the last six months or loans contracted in the last 12 months included in CRB with debt service;





2.3.2.2. Zero-interest loan



The advantages of this loan is that everything is approved in an hour and requires no justification for the purpose of the loan. Customer may acquire up to 35,000 LEI BT also charge no interest on this loan. Fee is 1%, and still charge a monthly fee, depending on the customer's own management, the flow of receipts and payments, ie if at the end of the amount financed is reflected in the current account, it will pay 1% fee, otherwise you pay a fee of 2%.

Minimum conditions for receiving this credit are:

- The company to have at least 24 months, record operating profit and turnover is growing according to the latest balance sheet;

- Can not claim this credit if you have arrears on other loans and have not had more than three major incidents in the last six months in the CIP;

- Delays not exceeding 15 days in the last 12 months to pay the loans, that is stanbilă Financial

- There were not changes in ownership structure or management company in the last 12 months;

- Not active attachment register or not register account budgetary debt outstanding.

It is important to know that there is an inability to pay state and BT has a less pleasant to you to determine achiţii loan, penalties could climb to 25% of the loan.





2.3.2.3. 100% input credit



The major advantage is that any small or medium sized company has an opportunity to make money, 100%, before maturity, promissory notes or checks received from their customers. The new product is designed for companies that need financial resources to carry out their normal activity and growth.

Grant amount is up to 35,000 lei, but not exceeding the average monthly turnover of the client borrower. The loan can be granted for up to 12 months.

Minimum conditions are necessary to access a loan of this type are:

- Company must have a minimum age of 24 months, record operating profit and turnover is growing according to the latest balance sheet;

-If you had arrears on other loans and have not had more than three major incidents in the last six months in the CIP;

- Delays not exceeding 15 days in the last 12 months payment loans;

- There were no changes in the structure members and major shareholders of the company or manager in the last 12 months;

- Not active attachment register current account;

- Not register budgetary debt outstanding.





2.3.2.4. Loan "An hour without any investment, the EBRD sources



This appropriation is for legal persons and the maximum value for this loan is EUR 50000 or the equivalent in lei with a maximum of 36 months, with no advance guarantee is made with good credit and the destination is acquired through the purchase of cars, new equipment and Used, renovations or extensions to buildings

The advantages are that it requires no advance and no collateral is not required .. A great advantage is that you can use either for new projects or for upgrading or expanding existing ones. Guarantees are also flexible, can be even goods purchased by credit or any mix of security accepted by BT.

Conditions for granting a loan from EBRD sources are:

- Developed by the work that is in production, services, commerce or agriculture;

- Maximum of nine employees and register the state budget arrears;

- Company must operate a minimum of 24 months, record operating profit and turnover should be increased according to the latest balance sheet;

- You can request this credit if you had arrears on other loans and have not had more than three major incidents in the last six months in the CIP;

- Delays not exceeding 15 days in the last 12 months to pay the loans;

- Not active attachment register current account;

- Not register the outstanding budgetary debts older than 90 days amounting to more than 500 lei;

- There were no changes in the structure of members of major shareholders or the company manager in the last 12 months;

- The company is financially stable;

- Not register budgetary debt outstanding.





2.4. Corporate credit



BT Services offer corporate clients is quite diverse and we mention some current ceiling products available to offer this type of customers: Account Business Loans, Business Banking, Treasury, Cardurii business Romanian Entrepreneur's Club, POS and E-Commerce, Bancaaurance, structural Fondurii.

BT class credits from corporate customers fairly: Credit for working capital, investment credit, credit for temporary needs, the property company, quickly reserve ceiling, refunds 100% Opportunity FX Energy efficient credit.

Specific corporate governance firms have a clearly defined strategic and operational planning and acts as a system by which companies are directed and controlled at optimum parameters. Corporate approach is agreeată of BT which funded thousands of projects of various corporations. The grace period may be up to 12 months and on investment loan clients we provide funds for: the acquisition and construction of buildings, provide working capital needed to start the new investment objectives, related to newly established companies or to refinance Corporate.

Plan B from BT refinancing is a way for companies or corporations that pay higher rates on bank loans contracted by other than BT, the maximum amount of funding being 1 million lei or the equivalent in euros.

Robert C. Rekkers (CEO of Banca Transilvania), says: "BT has a solution for cases in which the plan of financing a business has proved to be burdensome, especially in times of crisis. Come up with Plan B, a facility refinancing loans from other banks, through which entrepreneurs have the opportunity during the first 12 months of acquisition rates to fall by up to 50%. We, thus, entrepreneurs, financial comfort increased, enabling them to direct resources thus saved to improve productivity, investment and development. "This facility targets SMEs with a turnover of between 1.5 and 4 million, and corporations. Thus, BT offers business loans for working capital, credit lines or ANY other investment loans for income generation. Deadlines for credit granting Plan B varies depending on the type of credit to 12, 36, 90 months respectively. To access a loan to refinance the company must record a minimum of 24 months of activity and evolution of the turnover to be positive or decline up to 25%. The new loan product to companies, Plan B, is part of the Anti-Crisis Platform Transylvania Bank, launched early last year than fianciar necessary to maintain the balance of certain companies or corporations affected by the current economic crisis.

Conditions that a corporation can benefit from such a loan may also be the following:

- Signup company to work for a minimum period of two years;

- Turnover is growing or if it is a negative development, reduced turnover must not exceed 25%;

- Company to issue bank checks;

- On loans contracted to appear in CRB with debt service A or B in the last 12 months and has to date analysis;

- Not register the account active attachment;

- Not registered, on analysis, outstanding budgetary debts older than 60 days.

Besides a service offered by this product, BT can offer you a period extending the loan repayment, there is also the possibility of granting additional funding if the financial situation of your company and its financing needs have good reason in this respect.

3. General considerations concerning loans

3.1. Credit terms of content and relationship



The credit is supposed to be "old and complex phenomenon, because, he is old and older are human need and various goods and complex because, involves risks different ways of procuring, issuing, processing and recovery term integralǎ and costing generates.

According to the explanatory dictionary of Romanian language credit is a relationship (economic) cash that is established between a natural or legal person (lender), which granted a loan of money or selling goods or services on credit, and other natural or legal person ( debtor), which receives the loan or buy on credit, loan (reimbursable basis and subject to the usual payment of interest); creditor claim, monetary obligation, the duty credit; value, the amount of money that a creditor fails as refundable his debtor.

By definition of bank loan is a loan with an interest payment and price anumitǎ credit on time anumitǎ provided aceastǎ amount rambursatǎ life be refunded or above the predetermined period.

Loan means the operation which takes immediate stǎpânire resource in return for a promise of future repayment, normally accompanied by payment of interest. Relationship credit available and raising capital represent cash savings or money market financial-banking. The basic elements of loan aimed directly and indirectly made available monetary resources of those involved in understanding the credit.

The credit is the result of agreement between creditor and debtor, one gives money to collect money lent and the other based on a contract basis and guarantor or other property accepted by the creditor. Lending operations can produce relationships between individuals in the form of simple personal agreements and transactions made in the form of the loan contracts.

Creditor and the debtor is generally the bank is a company or person Physical and credit is a real debt of debtor to creditor. The loan can take many forms: debt, debt in exchange for promissory notes, credit lines, bank înprumuturi, reschedule payments. Need and the credit event in any economy is an objective, which is in turn generated by the objective nature of micro and macro economic reproduction. Mobility and distribution of such resources through loan capital is in ultimǎ court legatǎ obiectivǎ need to effectively use financial resources as the economy.





3.1.1. Credit function



Here are some of functions of credit, making credit a starting point, both financially and altǎ-kind, with the primary aim of establishing a competitive forms of financing:

- Business credibilizarea less known;

- Contributing to the increase in real capital by encouraging better use of production factors or the availability of funds when other production mişloace Injury;

- Contributing to the formation of production units forming large companies and corporations are more easily;

- Accelerate business transactions or to offset certain transaction more difficult;

- Increases the rotational speed of the currency and contribute to its sizing;

- Exercising influence on consumption.

Money familiar with the process of generalization that is, capital market development tends toward a single, currency and credit apǎrând new products tends to diversify the bank with a market financiarǎ ratǎ convenabilǎ as for credit applicants.

The credit can be grouped according to several criteria: type of property that private or public address, the duration of the: spot, forward, how to guarantee destination: consumption, production, operating, upgrading, investing.

Overall condition of the credit "financing sources direactă own or indirect if that is a bank deposit which is used together with other bank deposits to buy bonds from the firm or parts of real estate assets in the investment of capital, bank mediating this funding. "





3.1.2. Trǎsături typical credit



Credit features are common to all types of credit loans both to individuals and legal persons for loans or corporate loans. Components of credit to be listed and explained below.

1. Topics credit report, creditor and debtor shows a big difference in terms of membership in social and economic structures, the reasons of taking credit report and during his employment but is particularly apparent several groups of customers who are individuals, legal persons State corporations and even money that is sometimes needed.

2. Promise of reimbursement, an essential element of the credit report, risky, and requires, therefore, often employing a security. The relationship of credit risk are:

- Default risk is the likelihood of late payment or failure to payment rates due dificienţelor aces borrower assume responsibility.

- The risk of property occurs at the bank, or deposit holder who is unable to meet the demands of the holder of deposits, due to a failed management of loans.

- Personal security is a commitment to pay third party debt, instead of turning initially insolvent debtor. If simple guarantee, the guarantor is entitled to discuss the fulfillment of its obligation, to require enforcement of the debtor and, if there are more codebitorii which to respond only to part. If joint security guarantor can be held liable to pay, jointly, or even before the debtor, if present conditions apparently preferable solvency.

3. The term of repayment of the loan is a specific feature and. lies between 24 hours later charged between banks on world markets, and even with time over 30 years if the housing loan. For short-term loans, business loans, or consumer loans, a repayment in full is required at maturity. Medium and long term loans are repaid monthly, yearly or quarterly.

4. Interest is the price of credit and credit claims with its restutirea currency loan. Interest is an essential feature of the loan and also calculate the rate when there is a phenomenon indeispensabil credit.

5. Transaction or the actual granting of credit where credit can be agreed within a single transaction, a loan, a bond sale, hiring a warehouse. Recently opened credit system was developed in which actual borrowing occurs freely chosen by every debtor.





3.1.3. Loan classification



Loans are more felurii and requires their classification into categories by default principles advance. "We define ways, instead of forms, because their relationship stronger side than spiritual or intellectual credit side of the material, body or space."

Demarcation criteria are the main types of credit:

- Subjects relationship lending: the lender and borrower;

- Subject to credit and scope of use;

- Source of borrowed funds,

- Duration of relationship lending.

Loan classification can be made according to several criteria:

1. Classifying loans by way of reimbursement:

- Credit redeemable at which reimbursement is equal or unequal installments, comprising or not, as applicable, and interest;

- Specific Credit depreciable which full repayment is in arrears;

- Credit repayable by annuities constant;

- Credit repayable by constant rates;

- Loan fully repaid at maturity.

2. Classification of crediting period:

- Short term loans: a period not exceeding 12 months

- Medium or medium term loans: are loans whose repayment date is 3-5 years.

- Long-term loans: are loans whose repayment period exceeds five years even within 30 years at BT.

3. Classification of loans by borrower quality:

a) Loans granted to individuals:

- Cash Credit

- Housing loan

- Personal credit

- Consumer credit

b) Credit granted to legal persons:

- Operating Credit

- Cash Credit

- Pre-financing credit

- Loan of equipment

- Credit Leasing

4. Credit quality classification by creditor:

- Commercial Credit

- Bank credit

5. Classification by purpose of granting credit:

- Production credits

- Traffic officer

- Consumer credit

6. Classification of loans by way of loan guarantee distinguish:

- Real loan guarantees and capital;

- Personal loan without collateral trust.

Loans should be very diverse and the BT offering a chance to those who want something new or who have a way of funding special.

Divide the loan types listed above are included in the platform officer of BT but if housing loan offer BT has reached a specific product portfolio while maintaining all other bank in the field or even providing customers exclusixitate certain serious or good payers.





3.1.4. Credit policy



Credit policy serves to define the standard BT and organizational objectives, the business of lending, covering technical aspects of protection and credit portfolio under management BT also serves to maintain an atmosphere appropriate internal proper course of business.

To overcome the weaknesses in the business of lending banks should develop credit policies based legal to commit or prepare loan officers who understand and accept the discipline of the bank credit policy.

In development policy lending, bank senior management must go through several stages:

1. Classification based on the loan portfolio, according to credit quality (Standard, substandard, in observation, doubtful and loss) to identify market segments favorable or unfavorable for BT and their performance, BT will decide which market segments will be abandoned.

2. Is predetermined underlying causes losses or gains from BT and set the strengths and weaknesses of bank debt and credit policy successes of the period under review.

3. Assessing risks and has taken BT. It notes that only those managers who maintain a position of balance between profits and risks assumed unable to overcome difficult moments.

4. The next step would be answering a series of government economic policy questions such as:

- Which economic sectors will be supported by the government through subsidized credit;

- What influence have executive options on the exchange rate;

- What instruments of monetary policy by the central bank will be used to support the economic policy pursued by the executive.

5. BT penetration decisions on different market segments based on knowledge of existing and potential competitors and finding compromise solutions with them.

Credit policy to be well founded to meet monetary and credit developments in the state determined, but depends on the current political and economic situation is also important to rely on ANY bank people with clear political vision to lead and decide according to existing rules also where lending standards were lipsurii or escape to know how serious are the consequences of a bad credit also know how to avoid unpleasant situations in relation to people who can influence lending periculoşii otherwise, always be found an alternative that is closer to financial objectives pursued Of course the extent of the law.











3.2. Considerations on credit risks



Where there should you request a credit to the many specific risks of the banking system and even BT offers its loans when you need to establish provisions for loans to old customers at risk from non-payment of loans granted by them before the crisis. Avoiding bank fraud is by "prudential supervision of credit institutions and financial investment services companies and the oversight of payment and settlement systems for financial instruments." Longer reach and "enforcement" where appropriate according to regulations.

Bank credit risk management is much broader than a simplǎ loan transaction. "It extends the scope of the concerns include issues relating to fund three phases, perhaps the most important process of creditǎrii" namely:

- Decision-making procedure of credit;

- Process the loan repayment period;

- Credit portfolio management.

Lending is a high importantǎ activity, to which his creditor there should provide sound information and documentation to avoid and recover losses due to bad credit risk management. "The one persoanǎ cautǎ sǎ aibǎ sigurǎ situation, much will be May sǎracǎ viaţǎ." This shows that a risk still exists but a small, controllable, participants assumed the loan. Where money is one of nesiguranţǎ dozǎ but careful if we can not fail noastrǎ or against any of the others.

"For the prevention and sanctioning money spălǎrii was established National Office for Preventing and Combating Money Spălǎrii. It analyzes the information on suspicious transactions and notify the competent authorities in this regard. If we analyze the risks and find the easiest possible to determine financial and criminal people will have to cooperate, and formal institutions are concerned with such cases.

Another way to identify the risks a company may be determined by "internal audit" and a favorable score (low risk) may give the company an additional şansǎ in getting a loan.

Risk management process begins by decoding required by the various banking products and observing why investors undertaking the guarantees offered for mortgage, contractor profile, maybe even a criminal record may be requested to highlight suspicious referituare the investor profile. Then they should be compared with the bank's risk profile. If the bank's risk profile is less reluctant than the risk profiles identified, then the bank as a whole, has a value of synergy, positive for shareholders. To identify and assess the risk of a range of banking products or banking activity, managers must identify all situations that may cause significant financial loss.





03.03. And interest rate



Interest is the amount of money you must pay the borrower (debtor) lender (creditor), to use money held in the latter, until their restitution. If the loan lender is a bank or other financial institution and borrower is the client or person or entity that borrows ..

Interest plays an important role in the mechanism operating economy, perform the following functions:

- Influence the allocation of production factors;

- Way to boost both the population and firms in saving a portion of income;

- Ground to ensure recovery of costs incurred and making a profit;

- Leverage the redistribution of income.

Curentǎ Interest will be calculated from the date efectuǎrii first drawdown on the loan account balance on credit calculǎrii employee interest. The course of the loan, current interest level variables change depending on developments referinţǎ index LIBOR / EURIBOR / ROBOR.

Banks also use quotation index ROBOR EURIBOR 3M and 3M to determine benchmark interest rate on loans and its progress can be seen in Figure 3.1-figura3.2. showing a decrease due to central bank intervention and that the European Central Bank to restart lending directly interested.







Fig. 3.1. 3M Graphics ROBOR the evolution from 2009 to 2010.







Fig. 3.2. Graphic evolution EURIBOR 3M 2009.



"Interest is calculated and charged monthly at fixed maturities, with the rate of credit." Size is calculated by weight and interest rate.

The interest rate is "the price paid to have one year to 100 monetary units. It represents the ratio between the absolute magnitude of annual interest paid and loan. "Or" relative mǎrimea express themselves through interest rate "

Interest is an important contribution in the credit and credit is the price. The most important distinction of interest is fixed interest rate differential between variabilǎ.

Fixed Interest rǎmane unchanged during the credit or deposit all due up. If a fixed deposit with dobândǎ, for example, once you know the deposit amount will be accrued in interest, you'll receive at the end or its maturity.

Variable interest rate which is calculated periodically (usually at 3 months) depending on the evolution of market interest. This interest gives the creditor the opportunity to defend against loss resulting to him from setting an unchanged interest to grant credit in a period of rising interest.

Simple interest is paid on income or paying a capital service provided it is not capitalized but for a specific period. When the loan or deposit not exceeding one year, calculate the "simple interest"









where:

Ds = simple interest amount

Ko = invested capital

rd = annual simple interest rate

t = time a year for which the loan is granted

Kv = realized capital

Dobâda compusǎ represent "income paid or paying for service or a capital primitǎ in terms of its capitalization. It also involves processing equity interest in primates, thus leading to calculate interest on interest "

As details of the APR% (Interest Anualǎ Efectivǎ, next to a include interest and fees and commissions) also may be charged only consumer loans, the loan can not exceed EUR 20000 can not apply for housing loans, loans for rehabilitation of property for renovation of commercial buildings, offices. APR does not include spending incerţii borrowers or those in dispute, the fee tabulation, keeping in mind labanca Costs that, expenditure warranty insurance, or other unforeseen Costs.

Interest anualǎ efectivǎ, further denumitǎ APR represents the total cost of credit expressed as an annual percentage of the total loan amount granted including fees and charges, the APR is importnantă calculating the final cost of the loan but interest on loans not covered pemtru housing.





3.4. Fees



Commission is the second basic component of income from bank lending operations. They are quite diverse and are intended to cover bank charges arising from a series of complementary activities and much needed credit themselves.

BT class credits are encountered in these types of commissions.

1. Commission to issue a unique analysis promises guarantee is 0.15% applied to unilateral promise value issued by bank credit (loans for First Home from BT).

2. Registration fee in the Electronic Archive of Security Interest which is paid orcum orcum not specified nicăierii, is also considered an additional cost (charged to credit is first house on BT and BT to other credits).

3. Bank transfer fee from the buyer at the seller's account or cash withdrawal fee to pay the seller of the property consideration, as appropriate, to reach EUR 100-150 to 400-500 euros, depending on the bank and type of operation.

4. Commission is a commission that is investigating the real estate loan at 1.5% for both BT credit in RON / EUR / USD fee is deducted from this fee redactactare documents but only if that loan is approved.

5. Charge of drafting documents is EUR 200 fee payable to BT and if the client does not meet some reason the credit requested.

6. Fee Credit (zero if the real estate mortgage or BT) is a commission peceput one time fee charged when the credit.

7. Management fees (from BT to charge for such cards and credit fee is charged this fee) are also collected during the course of other bank loans.

8. Commissions Risk (has a value of approximately 0.5% for mortgage or car acreditelor from BT) is a perceived comosion course credit.

9. Commissions "penalty" is charged as the loan holder does not meet the initial loan with interest is charged eventula.

10. Prepayment fee is calculated on the amount repaid early with a value exceeding 1% of loan amount under the new regulation (zero for first house loan from BT)

11. Late fee is levied to pay rates where the owner fails to reimburse the loan rates for credit contracted.

12. Rescadenţare commission, loan rescheduling from BT is 1% of the credit rescadenţat, rescheduled and is required only where there is a rescheduling of the loan.

13. Modified contractual fee charged if customer demand changes to the initial credit agreement.

14. Assessment fee is a fee charged by authorized appraiser to determine the collateral (the credit is zero LEI First House from BT).

15. Monthly management fee is charged to the first disbursement of the loan and calculate the amount of credit (0.2% / month for first house loan from BT)

16. Management fee payable FNGCIMM: 0.37% per annum, calculated on the balance of funding from BT Credit First House.

The course of the loan, the bank may change the fees without the consent of Borrower, within regulations. The level of fees is displayed at the premises of the bank or in writing by letter or statement issued to customers for free, BT counters.

4. LOANS FOR HOUSING

4.1. Considerations on housing loan



Housing loan is a mortgage lending and real estate that valorificǎ units offered by the market or other companies willing imobiliarǎ sǎ construiascǎ them and these types of loans favorizeazǎ really so important for Romania. Desemneazǎ mortgage loans for real estate investments that type of loans from financial institutions authorized to finance "construction, acquisition, rehabilitation, strengthening or expanding the purpose buildings housing, industrial or commercial." But a necessity that requires "free and unimpeded access the dwelling of every citizen. "

Locuinţǎ credit is a bank loan and mortgage. Housing credit is a bank loan because they provide a medium and long term and is a mortgage that is granted based on collateral or other property.

One of the possibilities for buying a home is to contact a locuinţǎ credit, now credit offered by many banks in Romania. Since this is a great investment that spans a long-term (up to 30 years), a loan for locuinţǎ should be only after a thorough needs analizǎ beneficiary of its financial and existing offers on the market.

If "entropy" of information is a process creditǎri properly understood and appreciated by customers and then will see the essential role that credit plays in the regeneration of our society's economic balance, especially for housing credit.

Even if the mortgage loan is a variant of the property, banks offer are enough differences between the two. Differences between the two types of loans are given to three factors: the guarantee required by the bank providing credit, financing and insurance amount required share the same bank. Mortgage loan financed property is guaranteed only with property which ipotechează future for the bank, so that the person seeking credit will be required to ensure that property and real estate loan can be guaranteed and other dwellings, such as property or applicant another person, of which its value can be greater than the residence to be purchased.

To make an investment bunǎ should we consider the specific indicators of various industries and fields and also construction-specific indicators (referitorii gradulde surface and its occupancy). An understanding and appreciation of the best parameters which must be the future location makes the investor to be more peaceful and more convinced that the election will do when investing a large sum of money. Also offers an attractive location bunǎ money invested and a further assessment if they intend their desire to recover the money by selling or lending sells easier and faster that building or location that previously achiziţonată. An investor can choose îtotdeauna correctly and if not less careful sandstones.





4.2. Bidders for housing loan



4.2.1. Housing Bank



"Investments have different meanings from one to another persoanǎ" but every man has some money invested in properties and that there should appeal to those who have to sell or mortgage properties and especially housing. Bidders credit to purchase homes are bǎncile, Naţinalǎ Housing Agency, mortgage funds, mortgage companies and other financial institutions authorized by law but is typically provided housing or other older investors or companies who build new homes. By law must be ensured "to the possibility that housing may be purchased by loans from banking institutions, loans are secured by mortgage on that home purchase.

Commercial banks are banks with universal character set as its main business in mortgage lending, but they must remain primarily banks are universal, ie to provide the products and services but also their specific housing lending activity November is obigatorie condition for restoring "the budget to finance new housing construction, default on developing a youth housing program, rental.

All relationships between bǎncii and other credit institutions on transfer of money disponibilitǎţi formǎ specifies that capital movements and fructificǎrii formeazǎ "capital markets or credit markets."





4.2.2. Transylvania Bank Offer Housing



BT, in addition to product offerings, has a wider objective to classify the needs and opportunities as other criteria as specified below. Some of the various proposed encouraging Trabsilvania Bank for credit:

1. For new construction housing or recreation, including modernization of existing facilities or completed:

- Act land ownership or building or its consecionare appropriate, proprietary act of construction that is modernized, arranged or ends.

- Construction permit issued by the municipality under the law, project general estimate works with advice from utility providers;

- Estimate the remaining works to complete the housing started earlier.

2. To purchase homes or holiday homes:

- Precontract of sale (if applicable)

- The contract of sale logged done with natural or legal person who sells home, stating that its value efecuat sale dwelling acquired, how the advance payment and transaction.

3. Required to pay damages sought credit resulting from a court, a trade agreement, a voluntary act of sharing will require the following documents:

- Irrevocable judicial decision (recorded in CF rights judgments constituents), thereby establishing the equivalent amount;

- Exchange contract concluded under private or authentic form as appropriate;

- Act of sharing or voluntary settlement agreement, transcribed in the land.

4. Purchases of land intended for housing:

- Precontract (if applicable);

- The contract of sale authentic, made with natural or legal person who sells the land, stating the amount to which efectează sale, its location, topographic position, method of payment and amount paid in advance.

Should they be seen closer to infer that it did BT restrisţionistǎ policy more credible and that bancǎ urcǎ bunǎ slowly towards more housing recovery has been a landmark for those less committed to offering diverse portfolio of offers accepted by the bank.





4.2.3. National Housing Agency



A.N.L. also is a public institution with legal personality, coordination of funding sources in the field of housing, with financial autonomy, operating under the authority of the Ministry of Regional Development and Tourism, the agency has also formed due to the need of certain social categories facilitate certain tasks and some of the NHA are:

- Support for mortgage purchase new homes by former tenants NHA;

- Implementation of financial mixurii allowing easy access to housing as NHA;

- Attracting and managing financial resources for construction, purchase, rehabilitation, strengthening and expansion of housing, including those operated under lease;

- Develop a youth housing, rental, based on projects approved by the Ministry of Regional Development and Tourism;

- Acquisition of land for housing construction;

- Making investments for housing construction or existing interventions.

Under the Law (no. 152/1998) establishing a National Housing Agency, as amended by Emergency Ordinance no. 105/2005, may receive credit for building a house by NHA individuals Romanian citizenship residing in Romania, regardless of age. According to GEO 51 of June 28, 2006, the State supports access to housing, personal property by granting a subsidy from the state budget 30% of homes built. Subsidy paid to young people or other social categories that they fit the requirements NHA programs may not exceed the equivalent in lei of 15.000 EUR, calculated at the exchange rate RON / EUR communicated by NBR for the day ended contract to build the house.





4.2.4. Other bidders for housing loan



Mortgage funds under Law Enforcement nr.190/1999 regulations on mortgages for property investment, mortgage funds is that funds are closed under a contract of civil society or private company, by a minimum of five founding members natural or legal persons, Romanian or foreign, to respect their legal system on their legal capacity, mortgage funds are intended exclusively for mortgage debt and acquisition activity inside the institutions approved financing on mortgage securities, real estate construction and issuing securities in the portfolio of mortgage debt held.

Law no. 34/2006 defines authorized institutions as banks and mortgage banks universal. National Housing Agency, mortgage companies and any other entities regulated by special laws for mortgage loans for property investment. As a separate idea, mortgage banks, whose business and operation is governed by the recent Law no. 33/2006 will be able to conduct all the activities they carry a universal bank, except to attract deposits and their lending activity is limited to loans for which collateral shall constitute a real right of mortgage.





4.3. The importance of housing loan



To make housing financing available for a large number of families, specialized financial institutions asumǎ their responsibilities to fulfill in good condition, the function of diversification of methods to attract funds temporarily available to this area and encourage public-private partnership in solving the housing problem.

All property types of decisions reached and major financial issues that can decisively influence the decisions to be taken in this area. Darwin's idea that saying "replicate varies, let the strongest survive and the weak perish" is not against the idea of turning the property sector as a sector about which lucuinţele be well made example for new homes and damaged homes to destroyed leaving room for new goals.

Managing real estate financing is a vast field in which investment decisions can be rent or mortgage. An initial condition of funding required to begin the analysis is to determine the responsibilities of real estate used to secure the sufficient income to support it.

Domestic investors are engaged in the use of property is particularly interested in non-financial aspects because directly fructifies their use and less on financial, investing because they require living space of commercial buildings or other locations tipurii and investors make foreign direct investments in particular stocks and bonds very rarely buy as individuals will appreciate the risks and opportunities, their only reason being to gain something more than elsewhere is strictly concerned with the financial investment .





4.4. Need new real estate projects



Companies are pawns pricipalii generating financial resources but need not be "grandiose ideas" to make a deal with property, but requires that firms' financial balance and management capacity of the available capital management company. Romanian governments encouraged 'savings and credit mechanisms in collective housing system "but are dependent on investment and population will need to decide positive development through the purchase of new homes available and the only way money can move favorably naţinal GDP growth .

Real estate development offers a new architectural concept as a result of market demand for housing and even banks leaves an imprint on how new buildings should be designed, specialists and evaluators dealing position value certain places emphasis on building orientation on the structural quality on quality of materials used to finish and even the number of customers who would like a home in that building.

To develop a housing project in the center of a city or town is enough to own the land under a future building project and tabulated by an architect or designer authorized previously approved by the Authority that the bank is prepared immediately to get the capital needed to finance building a new building to European standards that the market offers enough customers to buy well-made flats.

Agencies specializing in residential real estate working with banks, forensic experts and developing ANEVAR construction firms and real estate projects in November, putting great emphasis on the quality of the proposed business plan can provide an extra chance if the person who made and who should go to prove that he is able to carry out business.

Investment project is required if the company's activity is based on credit for investment in construction, assembly or other types of real estate investing involving a bank loan. Business plan is actually funding the project along with portfolio and details on prospects of economic and strategic value of business conducted on the project quality baseline.

"To clarify the concept of project components there should know:

- Terms of start and completion terms;

- Investor budget;

- Referituare quality specifications;

- Work desfǎşuratǎ respectivǎ company;

- Aim for strategic investment;

- Project team;

- For itself which urmǎreşte;

- Business cycle viaţǎ carried by the proposed project.

Investment project is required if the company's activity is based on credit for investment in construction, assembly or other types of real estate investing involving a bank loan firm.

Marketing your business can establish standards to be achieved for the investment to have a secure future and also may be based on:

- Investment analysis;

- Risk Analysis;

- Identify the target site;

- Design Strategy Project;

- Develop plan of advertising;

- Implementation of the strategy;

- Management of sales.

Of developing new projects to make money especially if you have a good positioning of the building but recommended greater fairness in respect of the project especially the details of structure to avoid collapse of ceilings or other dangerous defects for future beneficiary of the property.

5. ANALYSIS OF CLIENT ELIGIBILITǍŢII

5.1. Analysis of creditworthiness of individuals



Credibility (eligibility) client referǎ especially the "morality" and it is importantǎ to prevent fraud losses from BT by some people who were injured intentions generally called speculators who know sǎ vândǎ bank and they need not to buy the same locations at a lower price later on controlled auctions or other methods to defraud the banking sector. Subevaluaezǎ bank guarantees to protect these valued employees located but here are correct and have reached a analizǎ particularǎ eligibility of clients who are just tests for assessment or claim credit for investment very More details pertaining to fence the client fairness and its ability to timely and unconditional payment of future borrowing. Many are unaware of losses that may result if the interest clietului neplatǎ and life be evaluated and speculators may even memorizing the discussions oficerul officer. "Quantity, quality and speed of the network provided data livreazǎ data" are an important factor but can indirectly influence a customer credit analysis correctly is patient because he knows that the reasons are only details of customer information only as can be disclose whether or not one right. Even authorized personnel can analyze the harmful sǎ client by collecting tax assessment then records the reasons sǎ respingǎ intentionally less "outstanding".

Cǎ appreciate and "money spǎlare phenomenon is a reason amǎnunţite analysis applied to some dubious reviews but can not overlook certain aspects when it comes to large amounts of money.

The creditworthiness of customers who seek a loan "means its financial capacity to repay the loan and pay interest owed to the lender agreed deadlines. Preliminary classification will be determined according to the score (scoring) criteria are obtained to analyze why acordǎri loan. According to other opinions "represent accounts database necesarǎ in making economic decisions by the owner of various categories of users."

Provisions for customer creditworthiness if it is an individual are differentiated:

1. For those employed: salary certificate certified by one of the following documents: copy of employment record or individual employment contract endorsed by the Board of work, tax statement for the preceding year or fraction of year.

2. Free for self occupation approved

- Authorization for the activity (certificate of free practice running, registration certificates etc.).

- Register Log receipts and payments for January to date in 2010;

- Statement of Finance imposes visa on the last two years;

- Global Tax Declaration last year, registered with tax authorities, tax decision final;

- Extract the current account in lei plus bank signature (the original copy of bank stamp and date of issue copy);

- Service contracts;

3. For those who realizeazǎ rental income and income considered other-kind lease requires registered Financial Administration or other documents certifying income;

4. For those who get income from dividends is required by the Administration last balance sheet Financiarǎ, recent statements made to the Financial Administration, General Assembly Resolution on distribution of profits, the last Two kinds of verification.

5. The persons who received income for abroad:

- Income (BT type or type their employer) for 3 consecutive months latest, issued in more than 45 days before analysis;

- Individual employment contract, registered organ of State administration compentent where you are employed;

- Special declaration of income or tax statement or tax certificate or other legal document proving payment of taxes.

For income in strǎinǎtate all documents issued by a foreign authority, will be legalized by the competent authority and subsequently translated and legalized in Romania.





5.2. Financially economical and legal persons



. Cunoaştearea is good risks incurred by both bank and client to avoid fraud. And assess the risks can be "internal audit" and a favorable score a şansǎ also offers its business in getting a loan.

Customer creditworthiness is established from the customer and creditworthiness score is determined by economic and financial analysis of their performances, according to scores on quantifiable criteria (financial) and non-quantifiable criteria (non) depending on the model of analysis of creditworthiness agents bank-specific economic, reliability as calculatǎ After NBR rules.

For legal persons who need a loan:

- Credit application (see Annex 1);

- Agreement for coplătitori, if applicable (form provided by BT);

- ID for the applicant and, if appropriate, coplatitori (copy)

- Last balance sheet (or half yearly) endorsed by the authorized bodies, accompanied by corresponding balance;

- The last two kinds of verification signed by the company;

- Articles of Incorporation / addenda on the change of location, company name, company time, changes in shareholders (if any);

- Certificate of registration;

- Lease or ownership document;

- Documents required to substantiate income from other sources;

- As recently finding certificate but not exceeding 30 days old (and can be obtained from BT);

- Establishing legal documents and registration certificate (CUI + es);

- Finding certificate from the Trade Register (not older than one month);

- The Administrative Council or General Assembly of Shareholders, the person authorized to sign a form.

Non-financial analysis is based on the following criteria: quality management, quality organization, the business sector, the company's position in the industry, development strategy and outlook and the outcome of interrogation unitǎţii customer that says much about his intentions and even the ability to perceive that it will assume responsibility.

Assessment of economic and financial performance criteria that give customer creditworthiness if it is a legal person are:

- Current liquidity;

- General indebtedness;

- Assets;

- Net equity in the strict sense;

- Bad stocks;

- Rotational speed of the assets;

- Reviews uncer;

- Interest expense;

- Short-term debt;

- Turnover;

- Solvency;

- Supplies;

- Total assets;

- Imported supplies;

- Total liabilities;

- Conversion differences passive.

In determining the score for guaranteeing credit customers with many types of warranties will use the weighted average.

"Some of the analytical procedures required in their application, a anumitǎ order to assess the influence factors. Findings and analysis of economic efficiency of investment projects is done with a tool of investigation represented by indicators of economic efficiency may be the investment, "indicators that are designed to size as accurately as possible the real substance of economic efficiency in its many manifestations" . Banking Advisor analyzes why gnosiology investor decision making and then verificǎ depusǎ documentation that meets customer requirements, and employment calculeazǎ mǎrimii amount that may be a client for it corespundǎ conditions satisfacǎ BT and at the same time the customer.

Necessary, "check for the flesh of the individual, that the territory of the registered legal person seeking credit. This actually implies accuracy or reliability of documents that make the loan and of course why cǎ data must correspond with the reality that poatǎ commitment to be successful.

Assessing information on the applicant and coplătitorii, information on participants in loan income, receipt of salary information, previous credit repayment history if any, and other information supplied by the customer and credit analysis necessary to subject checks from the bank.

Security assessment is made by an external assessor bǎncii but approved by the bank. The client is informed by the bank adviser if credit has been approved or rejected and the result is communicated debitorului.La this phase of analysis will be charged a commission orcum file but can not otherwise find out if a loan corespunzii requirements.

If the loan is approved at the BT client is required to sign the credit contract, contract of guarantee, the insurance of goods to the security and insurance certificate, as appropriate.

After the shooting conditions, credit is made available to the customer, extract the land can be submitted and subsequently not later than 10 days after authentication.

Money is made available to customer in a current account which shall be transferred in one installment or more under the credit agreement, the current account of the seller, manufacturer, supplier of materials, the service provider.

And measurement of indicators used in assessing the economic efficiency of a target there should invest just as accurately quantify effort in decision making processes and effects resulting from construction and operation of an investment objective, allowing the investor sǎ bunǎ take the specific decision it.





5.2.1. Lichiditǎţii Analysis Company



Liquidity represents an economic capacity to meet its short term debt by the rapid transformation of its assets in asset availability and can lead to liquidity indicators:

Liquidity indicators are classified as the most eminent:

- Liquidity generalǎ> 2



- Liquidity be decreased = 1



- Liquidity imediatǎ <0.65



where:

CA = current assets

SDR = short-term debt

S = stocks

C = claims

Appreciates that business is good when immediate liquidity ratio is over 100% since then shows that receipts exceed payments, and if less than 100% because it highlights an unsatisfactory business earnings are below the level of payments. In the absence of liquidity traders is characterized by accumulation of debts to suppliers, the state budget, bank or other legal entities.

Lack of liquidity risk "occurs when banks are unable to provide ANY time the payments required by its creditors.





5.2.2. Analysis of company solvency



Depending on the solvency analysis is to help develop the business by finding creditworthy customers, but an assessment of applications for new loans is to help existing borrowers or sǎ sǎ mentinǎ their îmbunatǎţească its solvency.

It calculeazǎ as relationship:



S = Solvency

SC = social capital

TP = total liabilities

Also reflects the creditworthiness of the company generalǎ ability to transform all its assets in cash to pay existing debt at once anumitǎ. A trader is solvent when the amount of its assets invested in fixed assets, assets, debts certain resources or more money at least equal to the total liabilities represent obligations to partners, employees, bank. This ability of firms to make cash assets is reflected in the analysis of balance sheet debt indicators of the company seeking credit.

Risk of insolvency "occurs as a result of neâdeplinirii credit contract by the customer. This breach of contract may cause the bank or a permanent loss of capital or, at best a partial and late recovery of the loan. "

.





5.3. Grant and credit approval



Loans should be covered by the new provisions of the National Bank which require documentation and evaluation to reduce guarantees, and a new model for evaluation of the dossier requiring less effort in choosing the appropriate credit and less time for granting it. "The exchange is effected only if the party involved an agreement between" ie the client is legally eligible grant also be made by deposit and credit instruments trasferabilitatea.

Record is accomplished by specifying relationships through various forms of credit or documentary credit instruments.

These forms of record include:

- Obligations of both creditor and debtor party;

- The borrower to repay the amount received and revenue enhancements to pay (interest);

- Conditions for granting and repayment of credit;

- The guarantees provided under which the loan is approved.

Transferability of credit instruments is done through the assignment of receivables and also depending on the necessities, the creditor may convert debt into money.

Among the main types of criteria delimiteazǎ credit reports according to the interrelationships that characterized mention:

- Individual creditor;

- Specify how the training and use of available capital;

- Individual debtor;

- The use of borrowed capital;

- Subject to credit and scope of use;

- Times up capital available for use by borrowers.

Approval is made by credit oficerul measure the amount of money due and subsequently accepted by the customer interest and an initial fixed period. To know details of future commitment to the customer can acquire the details of the credit agreement and to recognize the value that will be a surrender value is greater than it receives and that may be lost or collateral in advance event of default are important to know. Credit agreement is defined as a unilateral convention by which a bank or other similar credit institution undertakes, in return for renumeraţii, to make funds available to a person money, for a period and amount determined, or to assume, in the interests of persons, a cash commitment by the downstream, or letter of guarantee.

Record and portability are characteristics of the loan. Credit agreements are recorded, mostly by writing, credit instruments, credit instruments and portability is by credit transfer agreements from one beneficiary to another, can each claim in the lender to make money, according to needs or a bilateral agreement.





5.3.1. Credit agreement



The credit agreement must contain some essential elements of which sets some of them:

- Purpose of the loan;

- Loan size;

- The credit;

- Form of credit;

- Interest and other costs of lending;

- Sources of credit and cover its costs;

- Maturity rate and interest payment;

- Guarantee credit.

Credit agreement is the most important document of the credit file but also a complex document to be signed by both the client and the bank officials concerned. At least 10 days before the contract mortgage borrower bank will provide a written offer which will contain all the conditions of the contract and its shelf life. Mortgage contract will not be modified except by written agreement of the parties, in compliance with the statutory credit.

Loan amount will be made available to the beneficiary of the mortgage installments or full payments are made directly to the seller when buying a property by a manufacturer or otherwise. Where work for which the mortgage loans will be made for its own by its beneficiaries, the money will send them under a financing plan established by contract.

Credit contract differs from one bank to another and even from one type to another, but credit is a document that contains information and conditions shall enter into force once signed is valid regardless of the consequences arising from the contract.





5.3.2. Loan guarantee



"When granting loans, banks should further ensure that these will be repaid on time, thus reducing the risks associated with lending operations." And this operation is done by guarantee with a mortgage on a property under the terms of the credit.

Debtor agrees not to dispose of the collateral or use them to ensure any other obligation by another banking company or any other person or entity to full reimbursement of all sums resulting from this contract or without prior consent of BT. Lending operation also implies the existence and risk-taking by lenders and that safeguards for its employment by debitori.Garanţiile can be structured as follows:

Personal guarantee is the commitment made by a third party to pay the creditor the debt if the debtor is in default and includes:

Simple personal guarantee guarantor offers the opportunity to negotiate its payment obligations in terms of required enforcement of the debtor or to answer only part, where more than one guarantor.

Joint personal guarantee requires the guarantor, if required by lender to pay the same, or even before the debtor, if present conditions apparently preferable solvency.

Collateral apply on some properties of the creditor or other third parties appointed guarantors, and includes:

Detention provides creditor the right to require the debtor's immovable property until it is fully paid a debt that is related to that object. To achieve this right must meet the following conditions:

- Tangible property owned by the debtor to have a connection with the claim;

- Claim to be certain and due.

Forms can be collateral mortgage and pledge.

Mortgage is a real imobiliarǎ parked without dispossession, which allows a creditor that if the loan was not repaid scadenţǎ, sǎ seeks mortgaged property, recovery security required by scoatarea sǎ of the sales of the proceeds will to recover all or part of the credit and or interest. Mortgage is the act whereby the debtor grants the creditor the right on immovable property owned by it, without dispossession as collateral for a loan but drepturii full on the building until the end of the rates paid by the indebted,

Conditions to be a mortgage on a property are:

- Mortgage can not be established only through authentic;

- Civil engineering can only be mortgaged along with accessories that are immovable, the destination and the usufruct of immovable property;

- Have a corresponding property;

- To specify conditions on constituientului person;

- Who is the must have full legal capacity;

- Who is the must have current ownership of the property that ipotechează;

- They do not depend on the solemn nature of the mortgage contract, but only to ensure enforceability and to rank the preference of the mortgage;

- Advertising is the inclusion of mortgage in the land of the territorial court in which property is also located: the parties conclude a mortgage contract as it is presented to the notary. Based on authenticated documents, an application and an appointed judge judicial stamp duties will include keeping cadastral mortgage in the land register.

The pledge is considered a "pledge that that entails, as a rule, dispossession and încrediţarea borrower pledged its property to a third person designated by the parties. The debtor can claim the refund until the object pledged full honor, in part, to its charitable bank debt. "

Pledge is the act whereby the debtor submits a good lender called mortgage credit guarantee, which is usually made with dispossession.

If the pledge without dispossession occurs, the lender receives title to the recognition of collateral is required to be published.

Creditor holding the pledge may have the following rights:

- Preferably the right to be paid before other creditors, the sale property that is security;

- Right up where the owner is changing;

- Ability to keep the subject of collateral;

- The legal right to sell the pledged asset.





5.3.3. Credit insurance



Loans are granted based on collateral which is normal to be insured or person to repay the loan is insured in case of "death" or disability that BT can recover the difference from the insurance company in accordance with clauses in the contract credit.

Credit insurance and guarantees may be subject to insolvency risks overall, export credit, the sale price paid in installments, the mortgage, the orcare other officer, direct or indirect guarantee under the rules adopted by the body State in whose jurisdiction by law, shall supervise the activities of insurance.

It also requires the debtor to insure against all risks of Credit and the purchased goods to the guarantee, to conclude the insurance contract over the period of credit to an institution or insurance company approved by the bank (where such insurance is required) .

The debtor is required to renew insurance policies throughout the period of credit until the full payment of amounts due under this contract.

Where insurance policies are not renewed, BT has the right, without being obliged to make any extension thereof, the expense.

For payment by insurance premiums, BT, BT client supports the right to automatically debit its current account.

If lack of availability, costs incurred by BT for this purpose shall be deemed maturity date of actual payment by the insurance company, the bank will recover the insurance premium priority consideration of the amounts paid by the borrower in the current account to pay next.

The debtor is required to give compensation for the bank's rights of insurance contracts of movable and immovable property concluded with insurance companies approved by the bank.

The debtor is required to deliver BT original insurance policy, which will keep the bank until full repayment of amounts under this contract.

If the insured events, the borrower is obliged to inform the insurer within 24 hours, and BT 48 hours to produce them.

Where the debtor record debt arrears to BT, more than 30 days of credit or against him was initiated legal proceedings for recovery of debts, amounts of compensation will be used by BT to recover outstanding debts.





5.4. Repayment of loans and payment rates



Repayment and interest payment will be made by the borrower and the coplătitori even in the same currency in which credit was granted. Borrower obligǎ ensure supply current account so scadentǎ day of each month throughout the period poatǎ creditarepentru as BT to charge interest rate of loans due that maturity.

Customer accepts that BT to debit bank accounts opened with amounts due under this contract, as they fall due.

Allow the client to make on behalf of BT and its account to the amounts owed, any foreign exchange required to convert amounts held by Borrower in its current accounts in the currency of this contract, the BT.

Total volume repaid monthly rates and due dates are included in the repayment schedule annexed to this contract, except credit lines not drawn reimbursement schedule.

Early repayment is permitted and considered as such only after full payment of outstanding debt and current interest to the date of payment calculated in terms of costs set by BT.

Increase or decrease the initially approved a loan for the same purpose loan, modification of credit data when it is given in several installments (monthly, biannual, quarterly), deferred payment or amend any other terms of credit agreement will lead to the establishment of a new reimbursement schedule.

If early repayment of the credit due to diminishing credit unused within the drawing, BT notify the borrower, as appropriate, directly at the BT or a letter with acknowledgment of receipt, the new reimbursement schedule as against the Borrower also without further formality, considering it is unconditional acceptance.

Failure to deadlines credit rates rise to record their outstanding from the due date, overdue loans account. It is however advisable to seek an alternative, perhaps a personal loan to not delay as rates can reach much larger loss than you aştepţii, the bank has rights to almost nelimitete neplătitorii customers or delay rates, execuatea can even reach the house and forced public auction to recover damages resulting from such non-payment rates.





5.5. Collateral execution



If mortgage-backed loans, customers must be fully aware of the risk assumed. If you can not honor debts to the bank may lose the property mortgaged in favor of BT. However, the situation is not desirable for either side, and credit institutions offer clients different options in financial trouble if a eventula BT can prelungii refinancing loan repayment period if this is the last soluţie.În Consequently, there cases in which the loan holder can not fulfill its contractual obligations on a given perioadă.adică has no possibility of reimbursement rates on time and this may lead ultimately to enforcement of the security property.

"If the debtor fails to fulfill its obligation, the creditor is entitled to satisfy their warranty claim with the affected property." To this end, the creditor is entitled to take possession peacefully, security or property damaged resulting from turning products , as well as titles and documents that give ownership of the debtor's property, without requiring any authorization or notice and without paying anything. Pledge law gives secured creditors to take possession or to retain the affected property and guarantee the right to sell it in order to obtain payment of the secured obligations.

Collateral execution occurs when the deadlines set atuncii not paid credit rates are not paid interest also must notify the borrower BT, and where appropriate, coplătitorului and guarantors, the consequences of the loan agreement, following non-compliance obligations.

If, within 30 days of the due date, the borrower does not pay rates or coplătitorii repaid, BT is entitled to recover its claims on the path execution by harnessing the mortgaged securities or any other property owned by Borrower or aferenţii coplătitorilor it.

Recovery order payable bank is the following:

- Bank charges first;

- Interest in order of seniority;

- Credits in order of seniority.

Failing bank by the owner of any right of this contract constitutes a waiver thereof, and the bank will ever wear for that right to settle all obligations towards the Borrower. .

The only advantage of that to be deprived of property litigation is that "at any time until the asset is sold by the bank, the debtor and any interested person may perform the obligation by paying the debts incurred in acquisition and sale of the property. In this case, the creditor is obliged to accept payment, immediately cease any enforcement measures and to return property of the debtor.