CIB BANK LTD S SPECIFIC BUSINESS REGULATIONS PERTAINING TO LOAN SECURITIES FOR CONSUMERS AND SOLE TRADERS

Transcription

1 1 CIB BANK LTD S SPECIFIC BUSINESS REGULATIONS PERTAINING TO LOAN SECURITIES FOR CONSUMERS AND SOLE TRADERS Effective from: 15 March 2014

2 2 TABLE OF CONTENTS 1. PROVISION OF SECURITY THE HANDLING OF SECURITIES INSURANCE ENFORCEMENT OF THE SECURITIES INSPECTION THE BEARING OF COSTS THE TYPES OF SECURITY... 6

3 3 These Specific Business Regulations of CIB Bank Ltd (registered seat: 1027 Budapest, Medve u ; court of registration: company Court of the Metropolitan Court of Budapest; comp. reg. no.: Cg ; tax number: ; Group tax number: ; Community tax number: HU ; stock exchange membership: Budapest Stock Exchange Limited (Budapesti Értéktőzsde Zrt.), operating licence number: 957/1997/F, III/ /2002) regulate the general contractual conditions of Loan Securities provided by Consumers and Sole Traders. These Specific Business Regulations constitute an annex to the Bank s General Retail Business Regulations for Consumers and Sole Traders (GRBR). The definitions and terms used in these Specific Business Regulations shall have the meaning ascribed to them in the Bank s General Retail Business Regulations (GRBR). 1. PROVISION OF SECURITY 1.1 During the business relationship, upon the Bank s request the Client is obliged to provide appropriate Security for the Bank in an extent that is commensurate with its Debts, or to supplement already provided Security (primarily in the event that the value of previously provided Security diminishes for any reason) in an extent that the Bank reasonably judges necessary for securing the recovery of its claims, whether existing or as may with regard to any banking commitments undertaken be generated in the future. 1.2 The Bank may request the provision of several Securities at the same time, all of which shall in the absence of a provision of the Agreement to the contrary serve to cover the entire claim of the Bank, irrespective of whether the Debt originates from the provision of a Credit Facility or a Loan, or some other business relationship. This rule also applies to receivables transferred to the Bank by a third person. The Security is a continuous collateral obligation supporting the payment and performance of the Debt, which (i) remain in place regardless of any partial or interim performance, and (ii) is independent of the Bank s other Security, whether existing or as may be generated later. 1.3 If the Bank expresses a demand to the Client for any additional Securities, the Client shall, if any new assets pass into its ownership, or if it becomes the beneficiary of any new rights or claims, be obliged to promptly report such to the Bank, in order that the Parties may conclude further Security Agreements. 1.4 When stipulating Security, the Bank is entitled to determine the value in which it will accept the individual Securities as Security (including, among others, their type, kind, value and manner of enforcement). To determine the value, the Bank is entitled to hire an expert pursuant to the provisions of the Agreement. 1.5 Until the Security requested by the Bank as per the foregoing is provided, the Bank shall not be obliged to conclude an Agreement, and until the Security is provided, or the existing Security is supplemented in accordance with the Bank s requests, the Bank shall be entitled to suspend its due payment obligations vis-à-vis the Client, and it shall not be obliged to perform the Service/Agreement. 1.6 The Client acknowledges that the Bank is entitled to check the characteristics of the security provided, as well as the Client s entitlement with regard to the security concerned. During this procedure, the Client shall make available to the Bank all the necessary data requested by the Bank. The Client gives its express consent to the management of the above data and any other data related

4 4 to the Client that is lawfully available for the Bank, in order to enable the Bank to make a well-founded decision regarding the acceptance of the security. 2. THE HANDLING OF SECURITIES 2.1 The Client is obliged to provide for the maintenance and the preservation of the value of all assets, rights and claims that it provides to the Bank as Security, the enforceability of claims that are pledged as Security and to ensure that these claims are performed in favour of the Bank on their due date. If the exercising of a right or the enforcement of a claim that serves as a Security falls due while it is pledged as a Security, in the absence of a contractual or statutory provision to the contrary, the Bank is entitled to exercise the right or enforce the claim. The Bank shall be entitled to treat as Security any monies received through the exercising of such rights or enforcement of such claims. If this is not necessary, the Bank shall credit the Client s Freely Usable Bank Account with the amount, or transfer it to the third-party bank account specified by the Client. 2.2 The Client is entitled and obliged to ensure that the assets in its use and pledged as to the Bank as Collateral are used, handled, operated and protected appropriately, in accordance with their purpose. 2.3 If the Client fails to meet the above obligations, and as a result, the existence, value or enforceability of the security is jeopardised, then the Bank or a person commissioned by it shall be entitled to request additional Security, the supplementation of the existing Security to the extent that the security is jeopardised or may request the restoration of the object of the Security and to initiate the necessary authority or court proceedings. If the Client fails to satisfy the Bank s above-mentioned requests by a reasonable deadline specified by the Bank or violates its above-mentioned obligations, the Bank, in addition to the other legal consequences specified in the GRBR, will be entitled to exercise its right of recovery. 3. INSURANCE 3.1 The Client is obliged to take out insurance against all damage to assets provided as Security, and to designate the Bank as assignee/pledgee/beneficiary in the insurance policy(ies) and/or contract(s) concluded with the insurance company (in respect of indemnity/insurance amounts in excess of HUF 500,000 in the case of real property, in excess of HUF 100,000 in the case of the CIB Homemaking Loan, or in excess of the amount specified in the given Specific Business Regulations or Individual Agreement). The Client shall certify to the Bank the conclusion of an insurance contract: If the Client has purchased life insurance pursuant to the Agreement to secure its Debts under the Agreement, the Client shall agree to designate the Bank as the beneficiary of the life insurance in respect of the amount of such Debt. The right of the beneficiary may be withdrawn or modified in the case of any of the above-mentioned insurances only upon the Bank s prior written consent. 3.2 For as long as the assets serve as Security for Debts owed to the Bank, or - in the case of life insurance - as long as the insured Debt exists, the Client may not modify or terminate the insurance policies related to them without the approval of the Bank (with the exception of increasing the insurance amount). The Client is obliged to pay the insurance premiums and fulfil all the conditions of validity set out in the insurance policy. 3.3 In the interest of maintaining the insurance policy, the Bank is entitled but not obliged to fulfil these conditions in place of the Client. In the interest of the Bank s ability to exercise this right, the Customer is obliged to initiate at the Bank s request a modification to the insurance contract under which the insurance company is not entitled to terminate the insurance policy without informing the Bank, and which allows the Bank sufficient time to fulfil the obligations in place of the Customer.

5 5 3.4 Upon the Bank's request the Client shall be obliged to forthwith present and hand over the insurance policy and documentary proof of payment of the insurance premiums to the Bank. The insured Client authorises the Bank in a separate deed to hand over one original copy of the Agreement to the insurer in the event that the Bank believes it is necessary. 3.5 The insurance or indemnity amount that serves to replace a Pledged Asset that has been destroyed or depreciated shall replace the pledged asset (or shall serve to supplement the pledge security) and thus shall serve as Security. The Client may request that the amount be used for restoration, which the Bank cannot refuse if the Client provides sufficient additional Security or if the circumstances otherwise (reasonably) indicate that the performance of the Client s obligations is not in jeopardy. In the case of pledge agreements that are entered into pursuant to Act V of 2013 on the Civil Code, if it does not jeopardise satisfaction with respect to the insured claim, the Bank shall be entitled to use the insurance amount, indemnity or any other sum that has replaced the pledged asset for the restoration of the Pledged Asset. 3.6 Further provisions regarding Credit and Loan Agreements concluded with Consumers and secured with real property: The Client guarantees not to take out an insurance policy loan in respect of the life insurance The life insurance premium shall be paid by direct debit by the insurer, and consequently the insured Client shall grant the Bank the authorisation that is necessary for the execution of the direct debit, with the proviso that it cannot be withdrawn during the term of the life insurance contract without the Bank s prior consent. 4. ENFORCEMENT OF THE SECURITIES If the Client does not settle any of its outstanding payment liabilities towards the Bank when due, the Bank or a third party commissioned by it shall, in the order and in the extent specified by it, be entitled to exercise the Bank s right arising from any of the Security in a manner such that in the Bank s judgement most effectively serves the satisfaction of the its claim. 5. INSPECTION 5.1 The Bank or its representative may at any time check - (including on the spot) - the existence, condition, value and insurance of the Security and the assets constituting the object of the Security, as well as whether the Client or the person providing the collateral is handling and operating these assets properly and providing for their preservation as appropriate. During the course of such inspections the Client is obliged to cooperate with the Bank, provide access for the appraiser to the real property that serves as Security, permit the viewing of tangible assets, provide the Bank or the appraiser with the necessary documents, provide the information required for the inspection and provide access to the documents. 5.2 The documents necessary for checking the value and enforceability of the Security (including especially, but not exclusively: property appraisal, or a review thereof) shall be obtained by the Bank once a year, or at a time stipulated in the relevant statutory regulations or reasonably specified by the Bank, unless the Bank notifies the Client that it is the Client's task to obtain these documents. In such case the Client shall obtain the documents requested by the Bank and provide the Bank with them in the manner and by the deadline stipulated in the notice. The costs of obtaining the documents shall be borne by the Client. The Bank shall be entitled to hand over to the appraiser the data, necessary for the performance of the appraisal, pertaining to the assets involved in the appraisal.

6 6 5.3 The Client is obliged to immediately inform the Bank of any changes to the value, saleability or enforceability of the collateral, or of any change that threatens the enforceability of the collateral. 6. THE BEARING OF COSTS 6.1 All the necessary costs of provision, maintenance, inspection, handling and enforcing of the Security, as well as the cost of registration and deletion of the mortgage right from the property registry, shall be borne by the Client. 6.2 If, in relation to the establishment and checking of any of the collaterals provided to the Bank, the Bank incurs a payment obligation towards the person providing the collateral or any other person (including especially, but not exclusively, the land-registry office service fee, company-court registration fee, MOKK registration and inquiry fee; guarantee fee payable to Garantiqa-Hitelgarancia Zrt. or to the Agrár-Vállalkozási Hitelgarancia Foundation, the property appraisal and/or review fee, etc.), the Client shall be obliged to reimburse any amounts certifiably paid by the Bank, based on the Bank's written notice, within 3 (three) Bank Working Days, and the Bank shall be entitled to debit these amounts from any of the Client s bank accounts kept at the Bank. The Client shall pay the above costs and expenses in the same currency in which the Bank incurred them. 6.3 The Client shall bear the costs of the execution and notarisation of the contracts to be concluded, as well as the fees, costs and stamp duty arising in relation to the registration and official recording needed for establishing and creating the collaterals and to the deletion thereof from the registry pursuant to the provisions of the Agreement, and in relation to the insurance. These fees, costs and stamp duty shall be paid by the Client directly, when due, to the third person charging such fees, costs and duties. If the above amounts are paid by the Bank, the Client shall be obliged to reimburse any amounts certifiably paid by the Bank, based on the Bank's written notice, within 3 (three) Bank Working Days. 6.4 If in accordance with the foregoing the Client incurs a payment obligation towards the Bank, then the Bank may debit the due amount from any of the Client s bank accounts kept with it. 7. THE TYPES OF SECURITY The Bank may request as personal Security one or more guarantors, the establishment of a pledge as additional Security, the provision of a security deposit, purchase right or corporate guarantee, it may request an assignment, the stipulation of a forfeiture clause or the provision of additional Security pursuant to the Agreement (for example, authorisation to collect, penalty fee) or may exercise offsetting. 7.1 Surety The surety (guarantor) must be an adult private individual with legal capacity, or a legal entity, or a business entity without legal personality, or an economic organisation as per Article 685 of the Civil Code, or other organisation, who/which: (a) in knowledge of the Client's debt, he/it declares in writing in a Notarised Document or in another form that is acceptable to the Bank, his/its ability and willingness to pay, when due, the Debt (and the related costs) in place of the Client, regardless of whether the Bank has attempted to collect the debt from the Client (demand guarantee);

7 7 (b) (c) possesses certified assets, income or revenue that is acceptable to the Bank; and makes all the declarations (for example insurance of his/its assets admitted as security, permission for a prompt collection order with respect to his/its bank account, etc.) the making of which is, in the Bank's judgement, necessary for the event of the Bank's collection of its claim from him/it. 7.2 Lien If the Client fails to fulfil his/her payment obligations towards the Bank when due, the Bank is entitled to enforce its claim from the guarantor(s) without notifying the Client (this does not mean a fallback guarantee). If the guarantor fails to perform voluntarily, the enforcement by the Bank of its outstanding claims (if a Notarised Deed is available) shall occur through direct judicial foreclosure. In the course of the direct judicial foreclosure procedure, all of the guarantor s assets may be seized up to the value of the Client s Debt that has fallen due The guarantor shall also pay to the Bank the litigation and enforcement costs that were incurred in relation to the enforcement of the claim against the Client, provided that the Bank demanded performance from the guarantor before the enforcement of the claim against the Client The guarantor Client agrees to send to the Bank an original copy of the documents and statements related to his income and asset position and requested by the Bank, within fifteen days of the notice With the exception of the modification of the secured transaction through the exercising of the unilateral rights that are due to the Bank, in the event of any modification of the secured transaction, the responsibility of the guarantor may become more burdensome for the guarantor, in comparison to the commitment undertaken by the guarantor, only upon the guarantor s express, written consent In the case of surety contracts that are concluded pursuant to Act V of 2013 on the Civil Code, the Bank shall be entitled to hand over to the Guarantor all data that is considered a bank secret in relation to which the Bank is obliged to provide information to the Guarantor pursuant to the Civil Code General provisions (a) (b) The Bank accepts as pledged assets fixed and moveable property in the ownership of the Client or a third party undertaking a pledge obligation on behalf of the Client (Security Provider), as well as any right or claim to which the Client or the third party is entitled. The pledge agreement shall be concluded in the form of a Notarised Deed. The Bank may also request an independent lien from the Client those conditions of which that depart from the following (especially concerning termination and the transfer of a lien) are contained in the relevant Individual Agreement. The Pledgor (and the beneficiary, if any - in matters concerning him/her) and the Client represent and warrant that: (i) he is or will be the owner of the pledged asset and has free disposal over it, no other person has any right or claim to it that would infringe upon the Bank s lien;

8 8 (ii) in the case of Agreements that are secured with a mortgage (independent lien) on real property, he shall stipulate any other provisions that hinder the alienation, encumbrance, incorporation by a business, rental or the sale at full value of the pledged property only with the Bank s prior consent, with the proviso that the Bank is not obliged to consent to the alienation or incorporation by a business of the pledged asset to which the prohibition on alienation and encumbrance pertains, and shall give its consent, if any, based on its own, reasonable discretion, on the basis of an individual decision following a separate review; (iii) in addition to the provisions specified in subsection (ii), in the case of Agreements that are secured with a mortgage right established on a real property that receives direct housing subsidy from the state and other Agreements that are secured with a mortgage right on a real property that receives other subsidy from the state - such as, especially, loans provided with state-subsidised interest - he shall act in accordance with the statutory provisions regulating state subsidies. (c) (d) The Client consents that the Bank may, at its discretion, - in addition to its right to enforce the lien by judicial foreclosure (including simplified enforcement) - sell the pledged property directly and/or by granting a mortgage loan, or through the involvement of an auction company, or together with the person providing the Security - in an out-of-court foreclosure procedure. In the case of consumer pledge agreements that are entered into pursuant to Act V of 2013 on the Civil Code: (i) the Bank can sell the pledged asset only publicly, except if the parties agree on a different manner of sale in writing after the right of recovery can be exercised. (ii) the Bank cannot obtain the ownership right to the Pledged Asset in return for the recovery (not including a security deposit). (e) (f) In the case of consumer pledge agreements that are entered into pursuant to Act V of 2013 on the Civil Code, the pledged asset is an individually defined asset owned by the natural person who provides the Security or an asset whose ownership right is obtained by the person who provides the Security with the help of a loan or a grace period that is provided by the Bank. Further provisions regarding Credit and Loan Agreements concluded with Consumers and secured with real property: (i) (ii) The Parties shall register the mortgage right pursuant to the provisions of the mortgage agreement, and the costs of the registration and the deletion from the registry of the lien shall be borne by the person providing the Security. If there is more than one Pledged Asset, the Bank s joint and several mortgage right shall pertain to all Pledged Assets individually up to the Loan Amount and the related costs as set forth in the Loan Agreement, in other words, each Pledged Asset serves as security for the entire debt. From the Pledged Assets the Bank may select the one/those in respect of which it wishes to exercise the mortgage right. (iii) The mortgage right established through a Pledge Agreement includes all objects that are or will be related to the Pledged Asset as a component, regardless whether

9 9 they have been or will be entered into the land registry. The registration as an independent property, after the registration of the mortgage right pursuant to the Agreement, of a structure established on the Pledged Asset shall not have an impact on the validity of the Bank s mortgage right, and the mortgage right, pursuant to the Agreement, shall also pertain to the structure that is registered as an independent property. In the case of pledge agreements that are entered into pursuant to Act V of 2013 on the Civil Code, the lien does not pertain to components, accessories and profit that were separated from the real property, pursuant to the rules of ordinary business management, before the right of recovery became exercisable if their ownership right has been transferred and they have been removed from the property. (iv) The person providing the Security and any Beneficiary shall ensure the preservation of the value of the Pledged Asset and shall notify the Bank immediately of all material circumstances or events that come to their attention and have an impact on the value or marketability of the Pledged Asset. (v) The Bank is entitled to check regularly the existence of the Pledged Asset. In this respect, and when exercising its other rights stipulated in the Agreement and pertaining to the Pledged Asset, the Bank is entitled to use the services of a collaborator. The fees and costs of the collaborator, pursuant to the relevant provisions of the Loan Agreement, shall be borne by the Debtor. (vi) If during the term of the Agreement the value of the Pledged Asset falls due to a reason that is not attributable to the Bank, and in the Bank s judgement the Security needs to be supplemented, the Debtor shall be obliged immediately, at the Bank s demand, to offer any additional security that the Bank deems appropriate. (vii) The person providing the Security consents to the Bank s seeking recovery from the Pledged Asset securing the Bank s claim if the Debtor/Co-debtor fails to pay the debt under the Loan Agreement, or if the Bank s right of recovery from the Pledged Asset becomes exercisable for another reason. (viii) The pledge agreement is terminated on the day when the Debtor/Co-debtor has satisfied all of its payment obligations under the Loan Agreement in full. (ix) The person providing the Security and the Beneficiary, if any, uses the pledged asset only as his own regular domicile and that of his family (spouse, children) and agrees not to let anyone else, other than the persons who regularly use it, live there on a regular basis until the Debt under the Agreement is paid in full; (x) in addition to the provisions specified in subsection (i), the Consumer Client, in the case of Agreements that are secured with a mortgage right established on a real property that receives direct housing subsidy from the state and other Agreements that are secured with a mortgage right on a real property that receives other subsidy from the state - such as, especially, loans provided with state-subsidised interest - shall act in accordance with the statutory provisions regulating state subsidies. (xi) if the request of the pledgor for the registration of his ownership is registered at the time of the conclusion of the pledge contract as an apostil, the pledgor agrees to request, within 8 days of the execution of the pledge Agreement, the competent land

10 10 office to register his ownership, which has been acquired on the pledged asset, immediately and shall submit to the Bank the decision of the land office on the registration within 30 (thirty) days after the registration becomes binding; (xii) if he wishes to rent the pledged asset (if it is not excluded by law or if he pays back any state subsidy immediately), he agrees to present to the Bank the rental contract within 10 Banking Days after its date and to stipulate in the rental contract a maximum 90 day deadline for termination and for the vacation of tangible assets from the premises. (xiii) If the pledgor Client is a minor, the consent of the competent guardianship authority (approval by the authorities) is required for encumbering the pledged asset in his property. The pledge Agreement shall not go into effect until it is approved by the authorities, but the parties shall be bound by their declarations. All actions that are required for obtaining the approval by the authorities shall be made by the Legal Representative of the person providing the Security at his own cost. If the approval of the authorities is not granted, the parties shall apply the legal consequences of invalidity to any performance and shall restore the conditions prior to performance, and in the event that the official approval is not granted, any Client providing Security, other than the minor providing Security, and the Bank declare that - had they been aware of it - they would not have entered into the pledge Agreement. (xiv) If the purpose of the Agreement is to purchase real property, the pledgor providing the Security warrants and represents that pursuant to the sale and purchase agreement concluded with the registered owner of the real property to be purchased he shall acquire unencumbered ownership of the pledged asset to be purchased when the final instalment of the purchase price is paid, starting from this date he shall have free disposal over it and no other person shall have any right or claim to it that would infringe upon the Bank s lien Sale without judicial foreclosure (a) (b) In the event of a sale of the pledged asset without judicial foreclosure, - without an agreement to the contrary - the sale may take place within 270 days from when the Bank s right of recovery becomes exercisable, at the lowest price specified in an appraisal prepared by one of the firms engaged in property valuation that is accepted by the Bank (that are also listed on the Bank s official website ( not more than 90 days before the right of recovery became exercisable, and that pertains to the property s liquidation ( escape ) value, and in which appraisal, in the case of a residential property, the value of the property in an occupied state and in a vacated state has been indicated separately. The Bank is entitled to appoint the firm that will perform the appraisal. The Bank shall send to the pledgor, together with the appraisal report, advance written notice of the sale, including the method of sale, the place of sale and the date of the sale, and the lowest acceptable sale price. The Bank shall, at least 30 days prior to the sale, notify the pledgor that it intends to exercise its right of recovery and to sell the pledged property (prior notice). Within 8 days following receipt of this notice, the pledgor shall name those persons to the Bank who besides the rights and facts entered in the property register have additional pledge or other rights on the pledged object that might hinder the buyer s acquisition of the property or limit his/her right of ownership thereto.

11 11 The Bank shall, at least 15 days prior to the sale, notify the Lien Beneficiary of the manner, venue and date of the sale, the name of the person responsible for the sale and the asking price. In the course of the sale the Bank shall proceed in accordance with the Government Decree 12/2003. (I.30.) on the Sale of Pledged Property Outside a Judicial Foreclosure. In the case of perishable items, the date of the sale may be determined without regard to the above deadlines Judicial foreclosure The pledged property may be sold, at the Bank s discretion and provided that the Bank has a Notarised Deed to which a judicial clause to this effect may be attached or another deed through judicial foreclosure. During the court proceedings initiated by the Bank, the appointed bailiff may seize the pledged property in the course of which, in the case of real property, he may have the right of foreclosure registered on the title deed of the real property and sell it, in accordance with the provisions of Act LIII of 1994 on Judicial Foreclosure, through auction, by way of a public tender, or through a contract that has the effect of an auction sale Vacating the real property In the case of the enforcement of lien rights, including a joint sale - the person providing the Security shall be obliged, within 30 (thirty) days and in the case of residential property within 3 (three) months from the Bank s notice, to remove all his personal property from the pledged property, move out from the property, ensure that any other persons with respect to whom the pledged property is an official domicile or place of residence to move out, and transfer the pledged property in a vacant state, available for occupancy (such that it may be transferred into the buyer s possession free from limitations), to the Bank or its duly authorised representative for the purposes of foreclosure or sale. Failure to transfer title to the pledged property in a vacant state after the expiry of the specified deadline shall not constitute an obstacle to the sale of property at its market value when in an occupied state. The Bank may, at its discretion, sell the pledged property in an occupied state, or initiate foreclosure on the lien Transfer to possession After the right of recovery becomes exercisable, the person providing the Security shall be obliged to transfer title to the pledged property in accordance with the Bank s notice. The person providing the Security shall refrain from behaving in a manner that prevents the Bank from exercising its rights. In respect of the pledged property transferred into the possession of the Bank, the Bank shall have the same rights and obligations as the beneficiary of a possessory lien right until such pledged property is sold. This obligation of the person providing the Security may be enforced through foreclosure and with the involvement of the relevant authority Final settlement The Bank, after having deducted its receivables and the related income as well as its costs in connection with the sale, shall immediately credit the amount remaining from the proceeds received from the sale to the pledgor s bank account managed by the Bank, or shall disburse this amount directly to the person providing the Security. In the case of a sale that is not conducted through a judicial foreclosure, the Bank shall prepare a written settlement statement regarding the result of the sale with the contents stipulated in Government Decree 12/2003.

12 12 (I.30.) on the Sale of Pledged Property Outside a Judicial Foreclosure, and shall send the settlement statement to the person providing the Security and any other pledgees involved (hereinafter together: parties concerned), who shall report any objections they may have to the Bank, in writing, in a procedure stipulated in the Decree, within 8 days, and to which the Bank shall have a further 8 days in which to respond. If, despite the objections, the Bank chooses to stand by the settlement statement either in part or in full, it shall inform the parties concerned, in writing, that they may enforce their objections and observations through judicial avenues, but not through a litigation procedure. If within 15 days of the receipt of the information the party concerned confirms that proceedings have been initiated, the Bank shall place the amount received from the sale or the contested portion thereof in the custody of the court Certain rules, in departure from the above, pertaining to the lien on rights and receivables In the case of a lien on rights and receivables, the provisions of section 2.1 above shall also be applicable as appropriate. In the case of a lien on rights and receivables, the person providing the Security is obliged, and the Bank is entitled to, notify the obligor of the right or receivable in writing of the establishment of the lien. The person providing the Security cannot issue a statement with respect to the lien without the Bank s consent that terminates or has a negative impact on the basis of the Bank s recovery. The Bank may, at its discretion, enforce the lien on rights and receivables pursuant to the provisions specified in this section or in accordance with the provisions of the Civil Code that are applicable on the basis of section 2.1 above Handover of deeds The person providing the Security (and, if it is a different person, the Debtor, Co-debtor and the beneficiary Client) shall provide to the Bank immediately the deeds that are necessary for enforcing the lien upon the Bank s request Cancellation 7.3 Collateral deposit After the Debt is paid in the case of Agreements that are secured with a mortgage on real property (independent lien), no later than within 30 days of the complete pre-payment of the loan -, and in the cases specified in the Agreement, the Bank shall issue to the person providing the Security the consent required for the cancellation of the registered lien If cash, bank account receivables, or securities and/or other financial instruments specified by law owned by the Client (including the person providing the Security that undertakes a commitment on his behalf) and provided to the Bank serve as a collateral deposit in respect of the payment of the Debt, the collateral deposit shall cover the Client s debt to the Bank and the costs of any potential foreclosure or other assertion of legal rights. The Client agrees that the Bank may directly satisfy its due claims against the Client from the security deposit, including the default interest to be charged if this payment obligation is overdue, and the costs of a possible foreclosure or the enforcement of the Bank's claim by any other means, except in the case of a collateral deposit consisting of securities that do not have a publicly listed market price pursuant to Act V of 2013 on the Civil Code. In the absence of a stipulation to the contrary, the collateral deposit shall also include any gain in the value of the deposit In the case of the placement of securities into a collateral deposit, if the Client fails to meet his obligation vis-a-vis the Bank that is secured with the collateral deposit, the Bank shall be entitled to sell or keep the collateral deposit, and to use the value of the collateral deposit

13 13 established on the basis of the fair market value, to reduce and/or settle the Client s debt, except in the case of a collateral deposit consisting of securities that do not have a publicly listed market price pursuant to Act V of 2013 on the Civil Code, in which case it cannot be kept. If the securities serving as a collateral deposit do not have an officially quoted market price, they may be sold within 6 months following the first day on which the Bank's right to recovery may be exercised, at the value determined by the appraiser designated by the Bank within 60 days following the first day on which its right to recovery may be exercised. The collateral deposit may be kept (transferred to the Bank s ownership) in the course of the same procedure, with the proviso that the 6 month period does not apply. The Bank is entitled to appoint the firm that will perform the appraisal Dematerialised securities may be placed in a collateral deposit by depositing them on the securities account, managed by the Bank, of the person providing the collateral deposit, and by blocking the securities while at the same time designating the Bank as the beneficiary, or by transferring the securities to the Bank's securities account managed by KELER Zrt The collateral deposit shall be terminated when the Client has fully repaid his Debt, together with the related costs, due to the Bank and secured with the collateral deposit. The Bank shall be obliged to return the collateral deposit upon its termination to the person providing the Security If the collateral deposit consists of domestic currency, foreign banknotes or foreign exchange placed as a Deposit, the maturity date of the Deposit shall correspond to the maturity date of the Bank s claims. The person providing the Security cannot cancel the Deposit as a collateral deposit before its term expires and cannot lay claim on the amount thereof The person providing the Security shall warrant that the guarantee represents a genuine, existing and enforceable claim and meets all the requirements pertaining to it; and further, that the guarantee constitutes the lawful property of the person providing the Security, over which he may dispose freely, to which no third party has a title or claim that could limit or preclude the Bank s capacity to obtain satisfaction from the collateral deposit If during the term of the Agreement the value of the collateral deposit falls due to a change in the exchange rate of the currency in which the collateral deposit is denominated or for any other reason or if the value of the secured claim increases and, in the Bank s judgement, the Security needs to be supplemented, the Client providing the Security shall be obliged, at the Bank s demand, by the deadline specified by the Bank, to offer any additional Security that the Bank deems appropriate and/or supplement the collateral deposit up to the value specified in the Bank s demand. The supplementary Collateral shall be treated the same way as the object of the original security deposit. 7.4 Stipulation of forfeiture The Bank may request the Client to make a written declaration to the effect that, in the case of a breach of contract, he will forfeit a right or benefit to which he would otherwise be entitled under the Agreement. 7.5 Purchase right (call option) The Bank - with the exception of a purchase option to be stipulated in respect of the residential property occupied by the Client - in addition to or in lieu of a lien right on the same asset, may request the Client as seller to conclude with it or a third party belonging to the CIB Bank Group

14 14 (hereinafter either one: the Bank) for a definite period time of up to five years an Individual Agreement establishing a purchase right, on the basis of which the Bank shall be entitled to acquire the asset through a unilateral legal representation at the purchase price specified in the Individual Agreement. If, in the call option agreement, the Bank and the Client agree on the granting of an extension period, the Client shall be entitled to sell the asset during such extension period. The Bank may choose to appoint a third party to exercise the purchase right with the consent of the Consumer in the case of a Consumer Client The Bank or the third party appointed to exercise the purchase right may exercise the purchase right by way of a unilateral statement sent to the seller as a registered letter, and the purchase price shall be paid in accordance with the terms and by the deadline specified in the contract establishing the purchase right, by offsetting it against the receivables of the Bank, or of the third party appointed to exercise the purchase right, due from the seller The title to the asset shall be transferred to the buyer on the day on which the unilateral representation is made, and in the case of real estate, upon the registration of the ownership right in the land registry. The Client shall be obliged to transfer the asset to the possession of the buyer within 15 days from the making of the representation. In the case of failure to do so, the buyer will be entitled to resort to any lawful means in order to take possession of the asset. The purchase price is paid, pursuant to the contract establishing the purchase right, by offsetting it against the receivables of the Bank (buyer) against the seller. 7.6 Assignment, transfer of pension and wages If any of the Client s claims due from a third person serves as Security for the Bank s outstanding claims due from the Debt, the Bank may request the Client to hand over to it all the original documents serving as the basis of or as proof of the Client s claims due from a third person. Upon the Bank's request, the Client shall notify the third person (pledgor) of the assignment, with the effect that from the moment of receipt of the notice the pledgor may pay the debt only to the Bank. Until the Client s Debt is repaid, the Bank shall, at its own discretion, be entitled to use any amount from the claims assigned to it either to settle the Debt, use it as Security, or pay it to the Customer (in accordance with section 2.1 above (Handling Security)). Any amounts received after the expiry of the Client's Debt shall in all cases be used by the Bank to retire any still outstanding debt Further provisions regarding Credit and Loan Agreements concluded with Consumers and secured with real property: (i) If the Client agrees to have his wages or pension transferred to the Bank, the employee/pensioner Client, in order to secure the payment obligations of the Debtor/Co-debtor arising from the Loan within the limits permitted by statutory regulations - may issue an irrevocable order to his employer/the Pension Payment Directorate of the Central Administration of National Pension Insurance (or the corresponding foreign organisation based on an Agreement) in respect of the Transfer of his wages/pension claim or a portion thereof to the Bank Account. The employee/pensioner shall notify his employer/the Pension Payment Directorate of the Central Administration of National Pension Insurance (or the corresponding foreign organisation based on an Agreement) thereof in writing, and shall designate as the place of payment the Bank Account specified in the Agreement. If the Client agrees to the above, in the event of the termination of the work relationship or a change in the employer, the employee/pensioner Client shall, without delay, notify

15 15 the Bank thereof, and shall proceed pursuant to this section in respect of his pension if he retires, and in respect of his new employer if his employer changes. (ii) If it is stipulated that a specific amount must be paid to the Bank Account, the Client agrees, in order to secure the payment obligations of the Debtor/Co-debtor in respect of the Loan, to make available the amount specified in the Agreement, with the frequency set forth in the Agreement, on the Bank Account - either by deposit or in any other manner. 7.7 Bank guarantee (iii) If the assignment of a rental fee is stipulated, the person designated in the Agreement agrees, in order to secure the Client s Debt, to assign to the Bank the effective rental fee from the renting of the real property specified in the Agreement and to designate the Bank Account as the place of payment. The authorised persons have free disposal over the rental fee assigned to the Bank and credited to the Bank Account as long as the Client fulfils his payment obligations towards the Bank without delay. In the case of any delay, the Bank shall be entitled to use the assigned amount for the payment of the Debt as specified in the Agreement. As coverage for its claim arising with respect to the Client, the Bank may request and accept an unconditional and irrevocable bank guarantee of a validity period that coincides with the maturity period of the secured receivable. 7.8 Corporate guarantee The commitment of the guarantor company/organisation based on a guarantee contract or a guarantee declaration pursuant to which it shall perform a payment to the Bank if the conditions specified in the statement are satisfied. As coverage for its claim arising with respect to the Client, the Bank may request and accept an unconditional and irrevocable company guarantee of a validity period that coincides with the maturity period of the secured receivable. 7.9 Commission on the loss of turnover in the case of an Agreement concluded with Sole Trader Clients The commission on the loss of turnover that is charged to the Client by the Bank serves as security for the Bank with a view to the fact that the Bank determines the business conditions of the Services it provides to the Client - such as, especially but not exclusively, the interest to be charged - on the basis of the amount and the charging of the commission on the loss of turnover in the agreement to be concluded with the Client Special provisions pertaining to life insurance as security in the case of Loan Agreements with Consumers In the case of life insurance, if the contracting party and the insured are different persons, the insured Client agrees, in the event of the death or the cessation without a legal successor of the contracting party, to enter into the insurance contract and to continue it starting from the first due date after the death or the cessation without a legal successor, and to perform the contracting party s premium payment obligation pursuant to the insurance contract for the entire term of the contract. The insured shall certify to the Bank his/its commitment above to the insurer within 8 Banking Days after the execution of the necessary document, but no later than within 30 days after the death or the cessation without a legal successor. Non-compliance

16 16 with the provisions of this section shall be considered a serious breach of contract upon which the Bank s immediate right of termination may be exercised The Debtor/Co-Debtor, without a separate notice to the Bank, shall make available on the Bank Account, by 2:00 p.m. on the banking day preceding the 10th day of each calendar month, an amount that also provides coverage for the payment of the insurance premium Any amount that is received from the life insurance on any grounds shall be used pursuant to the Individual Agreement pertaining to the Loan, with the proviso that the amount remaining from the insurance amount after the debt remaining from the Loan is paid in full shall be paid by the insurer to the other beneficiaries The insured Debtor/Co-Debtor authorises the Bank to hand over one original copy of the Individual Agreement pertaining to the Loan to the insurer in the event that the Bank believes it is necessary Special provisions pertaining to home savings as security in the case of Loan Agreements with Consumers If the parties agree in the Agreement to this effect, the Debtor/Co-Debtor, in order to ensure his/its payment obligations under the Agreement, shall enter into a home savings contract and shall assign to the Bank, in the amount of the Loan, the claims that are due to him/it from the home savings contract The Client agrees to pay to the Home the Savings Fund on a monthly basis the savings and the related fees specified in the home savings contract. The Client collecting the home savings agrees not to amend or terminate the home savings contract during the term of the Agreement without the Bank s prior written consent. The amount specified in the home savings contract shall be paid through the direct debit order of the Home Savings Fund, and consequently the Debtor/Co-Debtor shall grant the Bank the authorisation that is necessary for the execution of the direct debit, with the proviso that it cannot be withdrawn during the term of the Agreement without the Bank s prior consent. The Debtor/Co-Debtor, without a separate notice to the Bank, shall make available on the Bank Account, by 2:00 p.m. on the Banking Day preceding the 10th day of each calendar month, an amount that also provides coverage for the payment of the due amount specified in the home savings contract If the amount is freely usable, after the 8th year of saving by the Client the total amount of the savings shall be disbursed to the technical amount specified by the Bank. In the case of Housing Loans, the home savings fund, if the home target has been achieved, may provide a housing loan to the Client that is saving for a home after the 4th year of saving. If the Client issues a statement to the home savings fund in which he/it requests a housing loan, and he/it wishes to use it for pre-repaying the Loan Debt under the Agreement, the home savings fund shall disburse the contractual amount. The total amount of the savings shall be remitted even if the Client does not request a housing loan The home savings fund shall remit the amount to the Bank in two instalments: (i) in the first phase, the amount in the home savings contract (total deposits as per the agreement, state subsidy, the interest credited in respect of them, other credited amount) shall be disbursed within 15 days following the last day of the 3 (three) month remittance period;

17 17 (ii) in the second phase, the state subsidy for the relevant portion of the year is paid (deposit payment) within 1 month of the payment of the contractual amount The amounts realised from the home savings shall be used pursuant to the Agreement, with the proviso that upon remittance, the Debtor/Co-debtor who is saving for a home shall use these amounts fully for the pre-payment of the Debt under the loan Agreement Using the remittance, made to the Bank by the home savings fund owing to the termination of the home savings contract or its falling due for any reason, for the reduction of the Debt shall be considered an automatic remittance, and the provisions of the Agreement shall apply to the payment of the Debt In the event of the Debtor s/co-debtor s death, if the Debtor/Co-debtor does not have any heirs, the Savings Fund shall pay the Debtor s/co-debtor s existing savings to the Bank. The Bank shall use the savings to repay the Debts under the Loan Agreement. If after the payment the deceased Debtor/Co-debtor still has an outstanding loan debt vis-à-vis the Bank, the Bank may submit a creditor s claim to the estate in respect of the missing amount The Bank is entitled to hand over one original copy of the Loan Agreement to the Home Savings Fund in the event that the Bank believes it is necessary. ***