New version of the General Corporate Client Crediting Conditions will come in force from 12 October
We would like to inform you that from October 12 of this year Šiaulių Bankas is updating the General Corporate Client Crediting Conditions which are published on the Bank's website www.sb.lt.
Reasons for update and essence of changes:
- Pursuant to Article 28 (2) of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016, all credit agreements with corporate customers will henceforth specify the action to be taken by the Bank if a variable interest rate index (e.g., LIBOR, EURIBOR) is no longer be available. This may occur if the index is no longer published or determined, it can no longer be used, the methodology of its determination changes substantially or the index can no longer be used due to other events beyond the Bank's control (Clause 1.10 of the General Corporate Client Crediting Conditions);
- Implementing the rights granted by the legal acts of the Republic of Lithuania and the EU to banks to borrow funds from the central bank by submitting credit claims arising from the credit agreement as collateral, the Agreement was supplemented by a provision allowing the Bank to transfer / pledge claims arising from the Agreement to third parties (Clauses 9.14 and 9.15 of the General Corporate Client Crediting Conditions);
- According to the provisions of the Agreement, the requirement to pay under the Bank's guarantee is considered a material breach of the Agreement, therefore the Bank has the right to terminate the Agreement unilaterally, therefore for clarity, the Agreement has been supplemented with a new requirement for the Client to cover within 30 days the part of the credit that was used to pay the guarantee issued by the Bank (Clause 6.8 of the General Corporate Client Crediting Conditions), however, the Bank recommends applying for an individual decision in each case;
- In order for the Bank's sanctions for non-compliance with the Bank (if any) to encourage the Client to properly perform its contractual obligations to the Bank, the current Agreement that provides for a fixed non-compliance penalty for all customers has been changed to a one-time penalty to be defined in each specific case with the maximum amount of the penalty limited to 2 per cent of the specific credit amount (Clause 3.15 of the General Corporate Client Crediting Conditions);
- During the four years of validity and application of the General Corporate Client Crediting Conditions (the Conditions have been valid from 23/05/2016 and have never been changed), there is a need to adjust and explain certain definitions and wording which leads to other minor changes made which, however, do not aggravate the Client's position.
The Conditions are available by clicking here.
If you have any questions, please do not hesitate to contact your credit manager, call at 1813 (calling from abroad +370 37 301 337) or e-mail to email@example.com.