An administrator bears responsibility for the appropriate collection of funds (credit instalments, accrued interest and default interest if any) from the flat owners and owners of other premises as well as payment of these funds to the bank. The administrator is not responsible for for failure of the flat owners/owners of premises to pay the credit instalments or fulling their liabilities or for their improper fulfilment. In other words, the obligation of the administrator (as a legal entity that concluded a credit agreement with the bank) to repay the credit is to extend of the number of payments collected from the beneficiaries.
FAQ
Will the administrator have to cover the not repaid credit instalments from its own funds?
It is foreseen that credit maturity is 20 years, is it possible to take it for the period of 10-15 years?
The credit maturity is chosen by the flat owners whose interest is represented by the administrator. It is foreseen that maximum, i.e. the longest credit maturity can be 20 years, however, a credit can be taken for a shorter period as well.
When is the credit for the completed works disbursed?
Šiaulių bankas does not limit the periodicity of the credit disbursement. When the works are performed, an invoice and work acceptance-transfer deed are provided and the completion of works is approved by he responsible persons the bank will imidetaly cover the expenses related to the competed works.
If the credit is repaid prior to its maturity should the interest be covered for the entire period?
Interest is calculated by aggregating the actual credit account balance each month (i.e. used and outstanding portion of the credit). Interest will be charged from the fact i.e. how much it is calculated on the current day.
Is is specified that during the period of credit usage until renovation is carried out it is possible to pay nothing even interest. Is this so?
That's right. During the credit usage period the interest can be subject to a grace period. The interest accrued over the grace period will be repaid over the entire credit repayment period according the separate repayment schedule.
If the administrator addressed the bank regarding 5 houses which are planned to be renovated. How many credit agreements will be signed - one or five?
One credit agreement is concluded for one renovated multi-apartment house.
Who signs a credit agreement - each owner of the flat?
A credit agreement is signed by the administrator on behalf of the flat owners.
What works will receive funding?
A credit is assigned for construction works which are foreseen in the renovation (modernization) project of the multi-apartment house.
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 intalment will be paid on monthly basis. The payment procedure of socially disadvantaged people is defined by the legal acts. A s 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.