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What does payment in mortgage loan installments mean?

· The detailed terms of the loan disbursement are specified in the Agreement.

· The loan is disbursed once or in tranches.

If the loan is used to repay a loan in another Bank, the security of which is a mortgage entered in the land and mortgage register of the real estate constituting the collateral for the repayment of the loan granted by the Bank, the loan is firstly disbursed to the Borrower's loan account at another bank.

· The consumer loan amount can be released only after the housing loan amount has been financed and settled.

· In the case of purchase of real estate or financing of construction and renovation works carried out by the substitute investor, the payment of the loan may only be made to the account number indicated by the substitute investor or the vendor.

The funds are disbursed within a few days of the Borrower's submission of the payment application to the Bank, provided that:

1) signing the Agreement,

2) the Borrower's establishment of legal security for the loan repayment,

3) submitting a declaration of submission to enforcement by the Borrower and other persons who are debtors of the Bank for securing the Bank's receivables under the Agreement,

4) the payment by the Borrower of the Bank's arrangement fee, if any,

5) submission by the Borrower to the Bank of documents confirming the contribution of own funds, if any,

6) the Borrower's fulfillment of the other loan disbursement conditions specified in the Agreement.

The disbursement of subsequent loan tranches takes place within a few days from the date of submitting by the Borrower a properly prepared application for the payment of the loan tranche, provided that:

1) if the previous loan tranche was intended for the repayment of the loan in another bank or institution, the security of which was a mortgage entered in the land and mortgage register of the real estate constituting the collateral for the repayment of the loan granted by the Bank, the Borrower shall submit to the Bank a certificate of full repayment of the loan in question and a copy, along with attachments, a paid and registered application to the competent land and mortgage register court for the removal of the mortgage in question,

2) the borrower will use all the funds granted under the previous loan tranche,

3) the investment will be advanced, which corresponds to the stage of works financed by the previous tranche, specified in the payment schedule attached to the Agreement,

4) the performance of construction works related to a specific stage of construction and renovation works, as well as the use of materials, is in accordance with the design documentation and will be confirmed by the construction supervision inspector and the contractor or will be confirmed with an assessment of the advancement of construction works carried out by the bank inspection,

5) the borrower presents documents confirming incurring or necessity to incur expenses constituting the subject of the loan,

6) there was no risk of timely loan repayment,

7) the conditions for disbursing the loan tranche specified in the Agreement have been met.

The bank pays out the tranche or part of the tranche intended for financing construction and renovation purposes carried out using the economic method in the form of an advance payment for:

1) purchase of materials, court costs and notary fees,

2) payment for construction and renovation works,

The Borrower is obliged to provide the Bank, within the time limit specified in the Agreement, but not longer than 2 months from the disbursement of the loan tranche and not later than before the payment of the next loan tranche, documents confirming the expenditure of the funds referred to in sec. 8. The method of documenting the incurred expenses by the Borrower must be in accordance with the method of settling the loan disbursement specified in § 8.

· The Bank disburses the loan tranches in the amounts and on dates specified in the loan disbursement schedule attached to the Agreement, in a non-cash form to the account indicated in the disbursement application.

The borrower is obliged to immediately inform the Bank about the change of the payment date and / or the amount of the prepayment specified in the contract with the substitute investor, and to present a document confirming the above change and to apply to the Bank for an increase in the loan amount or to provide the Bank with a document confirming the payment to the substitute Investor own funds up to the amount equal to the difference in prepayment.

In the case of a loan intended for the construction, completion of construction, extension, modernization, finishing, renovation, adaptation of a non-residential premises for housing needs and paid in tranches, the condition for the payment of the loan is:

1) conducting an inspection of the property before the payment of each loan tranche in order to assess the compliance of construction and renovation works with the scope of works indicated in the tranche payment schedule constituting an appendix to the Agreement and to assess the current value of the property,

2) taking photos confirming the performance of works by a person representing the Bank and inspecting the property,

3) checking entries in the construction log, if the scope of the financed works requires entries in the construction log.

· The Bank inspects the property on a working day on a date agreed with the Borrower. If, as a result of the inspection of the real estate, it is found that the construction progress is inconsistent with the scope of the loan tranche payment schedule, the Bank has the right to withhold the payment of subsequent loan tranches until the deficiencies are remedied. The Borrower is obliged to pay a fee in the amount specified in the Tariff for carrying out the inspection in accordance with the principles set out above.

· The Borrower is obliged to use individual tranches on the dates specified in the loan disbursement schedule attached to the Agreement.

· The requested disbursement amount may not be higher than the loan amount or the tranche amount indicated in the tranche disbursement schedule.

At the request of the Borrower, the Bank may pay the tranche in an amount lower than the amount specified in the Agreement:

1) provided that the Borrower has previously made and documented the payment of own funds in the amount of the difference, or

2) on condition of documenting the possession of funds in the amount necessary to cover the required liabilities of the Borrower, or

3) when the reduction in the amount of the tranche results from lowering the investment cost.

· The reduction by the Borrower of the tranche amount constitutes the resignation from the tranche or its part.

· The Borrower's failure to use a part of the funds granted under one loan tranche does not increase the amount of funds available under subsequent tranches.

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