Overdraft

 Borrower

• Legal entities bearing unlimited civil liability;
• Legal entities bearing limited civil liability.

Purpose

• To execute payment documents furnished by the Customer (payment orders, debit orders, cheques, collection orders, etc.);
• To make cash disbursements in case of fund shortage in the Customer���s account.

Repayment source

• The positive cash flow of the regular business;
• Receivables;
• Subsidies and support funds received.

Limit

• The overdraft limit is the maximum allowed debit balance in the Customer���s account;
• The limit depends on the financial capacity of the customer to repay the credit, value of the credit security and the credit risk.

Currency

• LTL, EUR, USD.

Interest rate

• Fixed interest rate

Interest calculation and payment

• Interest shall be charged for the outstanding overdraft amount from the first date of granting of the overdraft or any part thereof until the date of full payment of the overdraft in the procedure established in the Bank;
• Interest shall be paid on a monthly basis.

Arrangement of the documents and execution of the agreement fee

• A onetime fee charged for arrangement of the documents and execution of the overdraft agreement; it shall be paid after conclusion of the agreement before granting of the first part of the overdraft.

Commitment fee

• The commitment fee shall be paid on a monthly basis in the procedure for interest payment established in the Bank; it shall be charged for the undrawn amount of the overdraft reserved from the date of effect of the overdraft agreement until the date of expiry of the overdraft limit;
• The Borrower shall transfer the amount of the commitment fee charged to the account, whereupon the Borrower shall debit the relevant amount from the account.

Term

• The term of the overdraft limit shall not be more than 12 months;
• The maximum term for drawing on the overdraft (the term from granting of the debit balance in the Customer���s account until payment thereof) shall be 30 calendar days.

Disbursement

• The overdraft may be disbursed in the following ways:
  • By transfer of the overdraft funds to execute the payment documents furnished by the Borrower;
  • By transfer of the overdraft funds to the account specified by the Borrower;
  • By cash disbursement.

Overdraft repayment

• The Customer shall repay the overdraft regularly over a short period of time from the business proceeds;
• Throughout the life of the overdraft, within the limits of the maximum term for drawing on the overdraft (Paragraph 10.2.) from the date of drawing on the overdraft (inclusive), the Borrower shall repay the Bank all the credits drawn on from the overdraft limit in the maximum term for drawing on the overdraft;
• After repayment the Borrower shall be entitled to draw on credits within the overdraft limit for the maximum term of drawing on the overdraft again;
• The Borrower shall repay the overdraft by transfer of the outstanding overdraft amount to the account, whereupon the Bank shall debit the relevant amount from the account.

Repayment security

• The overdraft may be granted:
  • Without collateral subject to execution of payment transactions in the volume specified by the Bank through the accounts opened with the Bank;
  • Subject to a pledge on the funds in the bank accounts and execution of payment transactions in the volume specified by the Bank through the accounts opened with the Bank;Repayment of the overdraft may be secured by an indemnity issued by the major shareholder of the entity or by the spouse of the owner of the entity.