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What is the legal security for a mortgage?

1. Legal security for the loan repayment is specified in the Agreement.

2. The basic, obligatory collateral for the loan is:

· Real estate mortgage

Assignment to the Bank of rights under the contract of insurance against fire and other fortuitous events of the residential real estate which is the subject of collateral,

Assignment to the Bank of rights under the insurance contract against fire and other random events of a single-family house under construction - until the real estate is put into use (in the case of building a single-family house using the economic method or general / partial contracting),

3. The loan repayment security may not be a mortgage on a fraction of real estate or a mortgage on real estate encumbered with personal easements, with the proviso that if the subject of the loan is a parking space in an underground garage or parking lot for which a separate land and mortgage register is not kept, it is allowed to that the loan repayment is secured by a mortgage on the fractional part of the property corresponding to the Borrower's share in the ownership of the common property, resulting from the parking space, provided that:

a) the mortgage will encumber the entire share of the co-owner,

b) on the basis of the agreement on the use of the common property by the co-owners, the Borrower will be physically separated from the property, which will constitute a parking space for exclusive possession and use,

c) in section III of the land and mortgage register kept for the common property in question, the Borrower's claim resulting from the agreement on the use of the property will be disclosed.

4. In the event that the real estate which is to constitute the loan security is not owned or solely owned by the Borrower, then the loan must be guaranteed by the owner or all other co-owners of the real estate, and if the property owner is married, the loan must also be guaranteed by a spouse who is not the owner of the real estate, except when the spouses remain in separate property or a legally valid separation has been pronounced against them.

5. In the event that it is not possible to establish the target collateral referred to immediately after the conclusion of the Agreement, the Bank shall accept the bridge collateral until such collateral is established.

6. In the case of a loan for the construction of a flat / single-family house carried out by a substitute investor, additional bridging security for the repayment of the loan is the transfer of receivables that the Borrower has in relation to the substitute Investor under the preliminary sale agreement or promise agreement to sell the apartment / single-family house - if the obligation is to the establishment of the transfer of receivables results from the agreement concluded by the Bank with the insurance company and the loan insurance is the bridge collateral.

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