Banking (Early Repayment of Housing Loans) Order,

Transcription

1 akg (Early Repaymet of Housg Loas) Order, y vrtue of the power vested me uder Secto 3 of the akg Ordace 94 (hereafter, the Ordace ), followg cosultato wth the Commttee, ad wth the approval of the Mster of Face ad the Kesset Face Commttee, I hereby order as follows: Deftos (Amedmet [204] 5774). I ths Order Pror otce - Loa - Foreg currecy loa - Drected loa - Supplemetary loa - Idexed loa - The Supervsor - Notce gve by a borrower to a bakg corporato of the borrower s teto to make early repaymet o a specfc date; A loa grated by a bakg corporato for the purchase of a resdetal dwellg or wth the collateralzato of a resdetal dwellg; A loa deomated or dexed to foreg currecy; A loa grated uder a arragemet wth the govermet, the Jewsh Agecy, the World Zost Orgazato, a local authorty, or ay of the compaes lsted the Frst Addedum, whether grated from aforesad ettes deposts desgated for gratg loas or whether grated from the bakg corporato s sources; A loa other tha a drected loa that s grated from the bakg corporato s sources to a dvdual elgble for a drected loa, addto to the drected loa ad for the same purpose, depedet of the date o whch the loa was grated; A loa whose amout s dexed to the Cosumer Prce Idex (CPI) publshed mothly by the Cetral ureau of Statstcs; The Supervsor of aks or ay dvdual authorzed thereby for the purpose of ths Order; Repad amout - The prcpal amout repad by early repaymet plus dexato or exchage-rate dfferetals, as the case may be, ad terest, accrued to the early repaymet date; Early repaymet - Early repaymet of the loa or part thereof, uder Secto 3 Average terest rate - of the Ordace; The last kow terest rate publshed by the Supervsor, otce of whch was ssued to the bakg corporatos, whch was determed accordg to a calculato of the Kovetz Hatakaot 679, 5762 (Jue 27, 2002), p. 95. Amedmet: Kovetz Hatakaot 745, 5774 (August 27, 204), p. 705 (cludg chage of ame). Uoffcal traslato oly the Hebrew verso s bdg.

2 Drected Loa average weghted terest rate of loas that are ot drected loas grated by bakg corporatos, or accordg to ay other terest calculato, as determed by the Supervsor; Aother determato of the terest calculato shall be brought before the Kesset Face Commttee for approval; The Supervsor may publsh varous average terest rates for dfferet perods ad dfferet loa categores. 2. A bakg corporato shall ot make early repaymet of a drected loa codtoal o paymet of ay fee. Early repaymet fee (Amedmet 5774) 3. A bakg corporato may make early repaymet codtoal o paymet of the followg fees: (a) Operatg fee ot to exceed NIS 60; (b) If the borrower gave pror otce of fewer tha 0 days a fee equal to oe teth of oe percet of the repad amout; However - () If the bakg corporato grated a loa for the purpose of the early repaymet, o fee as stated ths paragraph shall be charged wth respect to the amout of the ew loa grated; (2) If the borrower ded, the fee stated ths paragraph wll ot be charged; (c) If the average terest rate o the early repaymet date s lower tha the perodc terest rate that apples to the loa o the early repaymet date a fee ot to exceed the etre dfferece betwee the future paymets that the borrower wshes to dscharge through early repaymet, dscouted to ther preset value o the early repaymet date based o the average terest rate as at that date, ad the sad paymets, dscouted to ther preset value o the early repaymet date based o the perodc terest rate that apples to the loa o the early repaymet date; The fee ths paragraph shall be calculated accordg to the formula provded tem the Secod Addedum; (d) Notwthstadg the provsos of subparagraph (3), f the average terest rate o the loa grat date was lower tha the perodc terest rate that apples to the loa o the loa grat date a fee ot to exceed the etre dfferece betwee the future paymets that the borrower wshes to dscharge through early repaymet, dscouted to ther preset value o the early repaymet date accordg to the average terest rate as at that date, ad the sad paymets, dscouted to ther preset value o the early repaymet date accordg to the average terest rate o the loa grat date; The fee ths paragraph shall be calculated accordg to the formula provded Item of the Secod Addedum; If the average terest rate as at the loa grat date was ot 2 Uoffcal traslato oly the Hebrew verso s bdg.

3 publshed, the perodc terest that apples to the loa o the loa grat date shall be deemed the average terest rate as at the loa grat date; (e) A bakg corporato may charge a fee that s the lower of the fee as stated subsecto (3) or the fee, f ay, as stated subsecto (4). Varable Rate Loas (Amedmet 5774) 4. For a loa whose chargeable terest rate vares over the loa perod, ad the varable terest rate s ot kow at the tme the loa s grated (a) For the purpose of calculatg the fee as stated Secto 3(3) ad Secto (3(4), the outstadg prcpal o the date o whch a ew terest rate apples or may apply shall be cosdered the fal future paymet the future stream of paymets that the borrower wshes to repay; (b) If the dates o whch the terest rates vary are ot kow advace, or f they are kow advace but are determed to vary aually or more frequetly, o fee as stated Secto 3(3) shall be charged; (c) If repaymet s made o a date o whch the terest chages, oly a fee as stated Secto 3() shall be charged; (d) For the purpose of the formula provded Item of the Secod Addedum ad for the purpose of Secto 7(c), the average terest rate o the most recet date of terest rate chage shall be cosdered the average terest rate o the loa grat date. Idexed Loa 5. I a CPI-dexed loa If early repaymet s made betwee the frst ad the ffteeth day of ay moth, the bakg corporato may charge, addto to the fees uder Secto 3, a fee equal to the repad amout multpled by oe half of the average rate of chage the CPI over the twelve most recet CPIs publshed pror to the repaymet date. Foreg Currecy Loa 6. I a foreg currecy loa If the borrower gave advace otce of less tha two busess days, the bakg corporato may, addto to the fees uder Secto 3, stpulate that the early repaymet s codtoal upo [paymet of] a fee equal to the exchage rate dfferetal betwee the foreg currecy exchage rate o the date o whch early repaymet s made ad the foreg currecy exchage rate two busess days thereafter; For the purpose of ths secto, a busess day s ay day o whch foreg currecy tradg takes place Israel ad overseas. 3 Uoffcal traslato oly the Hebrew verso s bdg.

4 Dscoutg rules (Amedmet 5774) 7. (a) If several average terest rates were determed for dfferet perods, the fee stated Secto 3(3) ad Secto 3(4) shall be calculated accordg to the average terest rate for the perod remag utl the fal loa repaymet date, ad the evet stated Secto 4 for the perod remag utl oe day before the date o whch a ew terest rate apples or may apply. (b) If the average terest rate o the early repaymet date s hgher tha the terest rate o the loa o the early repaymet date, a calculato shall be performed as stated Secto 3(3), ad the balace of the dscouted amout shall be set off from the amouts stated Sectos 3 ad 5. (c) Notwthstadg the provsos of subsecto (b), for the purpose of Secto 3(4) f the average terest rate o the loa grat date s lower tha or equal to the average terest rate o the early repaymet date, a calculato as stated Secto 3(4) shall be performed, ad the balace of the dscouted amout shall be set off from the amouts stated Sectos 3 ad 5. Deductos (Amedmet 5774) 8. (a) I the case of a supplemetary loa, the fee accordg to Secto 3(3) or Secto 3(4) shall be reduced by the followg rates: () If early repaymet s made at the ed of oe year or more, but less tha two years, from the loa grat date 0% of the fee amout; (2) If early repaymet s made at the ed of two years or more, but less tha three years, from the loa grat date 20% of the fee amout; (3) If early repaymet s made at the ed of three years or more, but less tha four years, from the loa grat date 30% of the fee amout; (4) If early repaymet s made at the ed of four years or more, but less tha fve years, from the loa grat date 40% of the fee amout; (b) I ay evet other tha subsecto (a), the fee accordg to Secto 3(3) or accordg to Secto 3(4) shall be reduced by the followg rates: () If early repaymet s made at the ed of three years or more, but less tha fve years from the loa grat date 20% of the fee amout; (2) If early repaymet s made at the ed of fve years or more from the loa grat date 30% of the fee amout. 4 Uoffcal traslato oly the Hebrew verso s bdg.

5 The Supervsor s Authorty (Amedmet 5774) 9. (a) The Supervsor shall determe the maer whch dscoutg for the purpose of Secto 3(3) ad Secto 3(4) shall be calculated, ad otce of ths shall be delvered to the bakg corporatos. (b) The Supervsor may from tme to tme revse the amout stated Secto 3() accordg to chages the CPI; Notce of the revsed amout shall be publshed the Gazette of Record [Reshumot]. Pror Notce (Amedmet 5762) 0. (a) Pror otce shall be gve oe of the followg maers: () y delvery wrtg to the brach of the bakg corporato; (2) y dspatch by mal, ad the pror otce s cosdered to have bee made o the date t s receved by the bakg corporato; ad by regstered mal three days after the dspatch date; (3) y fax; (4) y other meas of commucato proposed by the bakg corporato, at the customer s request. (b) Pror otce shall ot be gve more tha 45 days before the date determed by the borrower as the early repaymet date. Falure to Make Early Repaymet. If the borrower delvered a advace otce ad faled to act upo t, o other pror otce gve by the borrower regardg early repaymet of the same loa shall be cosdered for the purpose of calculatg the fee for a perod of sx moths from the early repaymet date determed the frst otce. Term Sheet (Amedmet 5762) 2. (a) A bakg corporato shall gve a term sheet to a borrower, both whe gratg the loa, ad whe the borrower requests early repaymet, ad after early repaymet has bee made; If advace otce s delvered as set forth Secto 0(a)(), the bakg corporato shall have the borrower sg a documet cofrmg that the borrower receved the term sheet. (b) For the purpose of ths secto, term sheet a documet that clarfes the meag of Secto 3 of the Ordace ad the Order ssued thereuder, as follows: 5 Uoffcal traslato oly the Hebrew verso s bdg.

6 () The term sheet delvered to the borrower at the tme the loa s grated shall clude the followg detals, amog others: a. Clarfcato regardg the opto of gvg pror otce of te days pror to the repaymet date, ad the ramfcatos of falure to gve such otce; a. Cotact detals of the bakg corporato for the purpose of gvg pror otce each of the modes lsted Secto 0(a); b. All types of early repaymet fees that the borrower may be lable for whe makg early paymet, cludg the deducto rates accordg to ths Order ad the loa agreemet; c. Examples that llustrate to the borrower the amout of the early repaymet fee uder Secto 3, as a fucto of the tme remag utl fal repaymet of the loa, ad of the dfferetal betwee the cotractual terest rate ad the average terest rate; d. For a foreg currecy loa the term sheet shall clude, addto to the provsos of subparagraphs A through C, clarfcato regardg the sgfcace of gvg pror otce of less tha two busess days, cludg the practcal mplcatos of the actual tmg of the early repaymet, cotrast to the tmg of the paymet of the fee uder Secto 6. (2) The term sheet that s gve to the borrower upo a request to make early repaymet shall clude the followg detals, amog others: a. All types of early repaymet fees that are charged by the bakg corporato to the borrower, ad ther amouts, sofar as such amouts may be kow advace, cludg the deducto rates ad ther amouts accordg to ths Order ad the loa agreemet;. Clarfcato regardg the opto of gvg pror otce of te days before the repaymet date ad the mplcatos of falure to gve such otce;. Cotact detals of the bakg corporato for the purpose of gvg advace otce, each of the meas lsted secto 0(a). b. I a foreg currecy loa the term sheet shall also clude clarfcato regardg the practcal sgfcace of the actual tmg of the early repaymet, cotrast to the tmg of the paymet of the fee uder Secto 6. 6 Uoffcal traslato oly the Hebrew verso s bdg.

7 Revocato (c) Wth 60 days from the date that early repaymet s made, the bakg corporato shall delver to the borrower a term sheet that lsts the compoets of the early repaymet fees charged to the borrower ad ther amouts, cludg the actual deducto rates ad ther amouts uder ths Order ad the loa agreemet, ad for a foreg currecy loa also the borrower s outstadg debt to the bakg corporato due to the fee stated Secto 6, to the extet that such debt was created, ad the mplcatos of falure to make tmely repaymet of sad debt balace. 3. The akg (Early Repaymet Fees) Order, , s revoked. Commecemet 4. Ths Order shall come to force o the 26 th day of Heshva 5763 (November, 2002). Frst Addedum (Amedmet 5774) Secto. Halamsh Govermet-Mucpal Compay for Housg Reewal Ltd. (Tel Avv) 2. Prazot Govermet-Mucpal Compay for Housg Ltd. (Jerusalem) 3. Shkmoa Govermet-Mucpal Compay for Housg Reewal Hafa Ltd. 4. Amgur Asset Maagemet Ltd. 5. Heled Govermet-Mucpal Compay for Housg Reewal Petah Tkva Ltd. 6. Amdar Natoal Compay of Israel for New Immgrat Housg Ltd. 7 Uoffcal traslato oly the Hebrew verso s bdg.

8 Secod Addedum (Amedmet 5774) (Secto 3(3) ad Secto 3(4)) A. Defto of terms A The average perodc terest rate o the early repaymet date, as defed Secto of ths Order; C The average perodc terest rate o the loa grat date, as defed Secto of ths Order; R The perodc terest rate o the loa o the early repaymet date; The future perodc paymets accordg to the terms of the loa, cludg accrued terest; Idex dcatg the perod; The umber of perods from the early repaymet date utl the terest chage date; N The umber of perods from the early repaymet date utl the ed of the loa perod; PV The amout of prcpal that s pad the early repaymet plus dexato dfferetals or exchage rate dfferetals, ad terest accrued to the early repaymet date; PV(A) The preset value of the future paymets utl the ed of the loa perod, where the paymets utl the terest chage date ad the prcpal o the terest chage date are dscouted to the early repaymet date accordg to the average terest rate o the early repaymet date; PV(C) The preset value of the future paymets utl the ed of the loa perod, where the paymets utl the terest chage date ad the prcpal o the terest chage date are dscouted to the early repaymet date accordg to the average terest rate o the loa grat date.. The formula Secto 3(3) - Fee calculated accordg to a 00% ecoomc loss resultg from early repaymet: PV ( A) PV = N + + ( + ) ( + ) = A A = ( + R) N + + ( + ) ( + ) ( + ) = R R = R 8 Uoffcal traslato oly the Hebrew verso s bdg.

9 Secto 3(4) - PV ( A) PV ( C) = Notes: + + ( + ) ( + ) = A A = ( + R) N N + + ( + ) ( + ) ( + ) = C C = R The prcpal o the terest chage date s: N = + ( + R) If N = (that s, f there s o chage the terest rate utl the ed of the loa perod), the secod term all bracketed terms should be gored (that s, we assume that the prcpal equals zero o the terest chage date). The formula s also sutable for loas whose paymets are made at regular tervals (eve f the paymets are ot equal) ad for loas whose paymets are made at rregular tervals (for example, f the perod s defed as oe moth, the formula for a loa that s repad tervals of complete moths ca be appled, eve f the tervals are ot equal, such as f loa paymets are alterately made oce a moth ad oce every three moths). C. Partal early repaymet () I the evet of partal early repaymet, whch specfc perodc paymets are made (such as: the loa term s reduced by makg early repaymet of the fal paymets), the bakg corporato may calculate the fee accordg to the formula, respect of the ecoomc loss t curs as a result of the paymets that were advaced, or, alteratvely, may be calculated as the proportoate part of the fee respect of a full repaymet of the loa; (2) I partal early repaymet whch the perodc paymets are reduced but the orgal loa term remas uchaged, the bakg corporato wll calculate the fee accordg to the formula, as the proportoate part of the fee respect of a loa that s repad by early repaymet. Tamuz, 5762 (Jue, 2002). Davd Kle Goveror of the ak of Israel 9 Uoffcal traslato oly the Hebrew verso s bdg.