Will an administrator be obliged to cover not collected credit payments form its own funds?
An administrator bears responsibility for due collection of funds (credit instalments, accrued interest and default interest, if any) from the apartment or other premises owners and their payment to the bank. An administrator is not responsible for the obligations of the apartment or other premises owners to pay instalments and for failure or improper fulfilment of the obligations. In other words, the administrator's duty to repay the credit is limited to the extent of payments collected from beneficiaries.
A credit maturity is foreseen for 20 years, is ti possible to take acredit for the period of 10-15 years?
A credit maturity may be selected by the apartment owners whose interest is represented by the administrator. The maximum credit maturity may be established at 20 years, however the credit may be takne foe a shorter period of time.
KWhen the credit for the finished works is disbursed?
Šiaulių Bankas does not limit the credit repayment frequency. The bank shall immediately cover the expenses of the works after they are finished, invoice and work the acceptance-transfer deed are provided to the bank alongside with the confirmation of the finished works provided by the persons in charge.
Is it possible to repay a mortgage credit to the bank earlier than agreed?
Is it possible to repay a mortgage credit to the bank earlier than agreed.
If the credit is repaid prior to its maturity should the interest be covered for the entire period?
Interest is calculated summing up the actual credit balance of each day monthly (i.e., from the used and outstanding part of credit) and the interest must be paid accirding to the fact i.e. as much as the estimated amount as of the current day.
Credit provision terms foresee that during the credit usage period which is overlapping with the process of renovation the borrowers are allowed to pay nothomh even interest. Is it so?
Correct. During the credit usage period interest may be subject to the grace period. Interest accrued during the period of grace shall be paid during the remaining credit repayment period in compliance with a separate repayment schedule.
If and administrator planning the renovation addresses the bank regarding 5 multi-apartment houses . Will it have to sign one or five agreements?
5 credit agreements will be signed (one agreement of each multi-apartment house).
Who has to sig a credit agreemt? Is it each apartment owner?
The agreement will be signed by the administrator on behalf of the owners.
What works shall be subkect to financing?
Finance for construction works, 50% of technical project preparation value and 50% of maintenance costs.
Can a community take a credit?
Yes. A credit can be taken by a manager of the objects of common use (a community, a person authorized by a common activity and administrator of the objects of common use). A credit is taken in favour of inhabitants.
Are the credit servicing fees applied?
The credit administration fees such as a document analysis fee, credit administration fee , commitment feet, amendment of agreement conditions fee and pre-paiment fee shall not be applied.
A credit agreement includes a definition "appropriately executed works" - what does it mean?
Appropriately executed works shall mean the works which meet the quality requirements set to such works. After the works are finished the Bank must be provided with the transfer-acceptance deed signed by the contractor, the client (administrator) and the technical supervisor the are responsible for the quality of the carried out works.
Will it be paid for the renovation only during the heating season, or all year round? What will happen to instalment if heating is subject to compensation?
A credit instalment will be paid on monthly basis. The payment procedure of socially disadvantaged people is defined by the legal acts. As for socially disadvantaged people credit and interest as well as other expenses related to the preparation of the project and its implementation shall be covered.
A credit is taken on behalf of the administrator, so is the debt reflected in the balance sheet of the administrator?
This credit is not included in the balance sheet. The funds are only administrated by the bank and implementer of renovation but they are not accounted in their balance sheets.
Where could I find out more on multi-apartment house renovation (modernization)?
More information on multi-apartment house renovation programme is available on the the wesite at www.atnaujinkbusta.lt.
Will the owners of flats be obliged to pay for those owners who fail fulfilling the obligations?
No, each owner of a flat must repay only his own portion of credit which is issued to his flat (taking into account a useful area of the flat).
What is the procedure of making decisions regarding multi-apartment house renovation (modernization) programme?
Decisions is made y the flat owners at the meeting or by voting in writing. A majority of votes 50 per cent + 1 vote is required to make a positive decision. However, according to the requirements of Šiaulių bankas AB such decision has to be approved by at least 60 % of flat or other premises owners of the respective multi-apartment house.
Is a collateral required in order to receive a credit for multi-apartment house renovation (modernization)?
No, the inhabitants may receive the state aids and credit for house renovation not pledging their property.
What hoses may apply for participation in the multi-apartment house renovation (modernization) programme?
A house with three and more flats is considered to be a multi-apartment house. The houses that were built or permit to build them was issued before 1993.