SELF-GOVERNMENT Revolving Loan

Purpose of the loan:

• The loan is intended to cover the capital expenditures in the budget of a village/town/HTU.

Use of the loan:

• repeated use and repayment of the loan according to current needs within the agreed credit limit and maturity period.

Maturity period and repayment of the loan:

• the loan by which the bank finances the capital expenditures of a village/town/HTU must be repaid no later than two years after the signature of a Revolving Loan Agreement;
• the loan is repaid in a lump sum or by gradual reduction of the credit line.

Fees:

• a preferential loan fee;
• other fees are set according to the Price List of VÚB, a.s., except for the consideration for the reservation of the funds not granted, which is not applied by the bank.

Loan collateral:

• Minimum collateral: assessed on a case-by-case basis

Terms and conditions for granting a loan:

• demonstrating the ability to repay the loan, including interest and fees, within the required maturity period and under pre-agreed conditions;
• a written confirmation of compliance with all conditions for receiving recoverable financial resources in accordance with Act No. 583/2004 Coll., which is issued and signed by the comptroller general (i.e. the chief financial controller) of a village/town/HTU;
• a special-purpose nature of the loan – the bank provides a loan to cover the operational needs of a village/town/HTU;
• loan collateral, including interest and fees;
• other conditions depending on the nature of the business, knowledge and creditworthiness of the applicant (e.g. making a notarial record as a writ of execution for a property).

Required documents

• a written Loan Application, including additional table annexes, depending on the amount and type of the loan an entity applies for and the type of the business entity/applicant;
• a certificate of mayor appointment;
• a certificate of registration and assignment of an identification (registration) number;
• a resolution and signed minutes concerning the approval of the loan application, the consent to the loan collateral and to the issuance of a notarial record and/or to the signing of a blank bill;
• a detailed budget and audited financial statements for the last two financial years and current financial statements for the last six months;
• an approved budget management plan of a village/town/HTU for the relevant year,
• documents necessary for the loan collateral.