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ISSUE DATE 25 January 2012

Frequently Asked Questions and Answers regarding Loan Servicing and Refinancing

Notwithstanding the bankruptcy proceedings commenced against AB Bankas SNORAS (the "Bank") on 7 December 2011, the obligations of customers to whom the Bank made loans continue in accordance with the terms of those loans. Although there has been a period of disruption in respect of interest and principal payments, these are now resolved and loan servicing and payment shall continue as normal with certain necessary adjustments.

These Frequently Asked Questions deal with general account and loan enquiries, ordinary loan servicing, partial prepayments, full repayments and refinancing arrangements. Specific enquiries can be dealt with through the Bank's call centre by calling the toll free line 8 800 27272, our working branch network and by emailing enquiries to paskolos@snoras.com

These Frequently Asked Questions do not currently deal with the application of the new rules on set off which came into effect on 1 January 2012.  The Bankruptcy Administrator expects to make an announcement shortly in respect of the application of the set off rules.

PART 1:   Ordinary Loan Servicing Questions

1. Where can I learn the exact sum which I must pay according to the current loan obligations?
You can learn the exact sums of loan obligations in the banking system "Internet Bank+", by calling the toll free line 8 800 27272 and by using the telephone banking service (if you are an existing subscriber of this service).
You can also learn your exact account balances and the sums of obligations due using the bank services provision on-line, "Internet Bank+". To do so, once you have accessed Internet Bank+, first choose the appropriate loan transaction in the section "Loans". In the opened window "Payable sums", the sum due to be paid for the period from the date of your last payment (before the commencement of the temporary administration of the Bank on 16 November 2011) to date for such loan transaction will be displayed in the table "Information about overdue payments". Information about the sum and the date of the next payment is provided in the table of the same window "Information about the next payment". You will also be able to see your total outstanding obligations under the loan to date under this window.

2. How should payments be paid?
Ordinary payments and the accrued interest according to the loan agreement shall be paid as follows:

  • Payments in litas should be transferred to the borrower's account for instalments in Bank SNORAS, as it is indicated in the loan agreement;
  • payments in any other currency should be transferred to Bank SNORAS account in AB SEB bank No. LT217044060007787462;

3. If a loan is in foreign currency, in which currency should I pay ordinary instalments?
You can pay instalments of a loan in foreign currency:

  • in the loan currency by transferring the foreign currency to Bank SNORAS account LT217044060007787462 located in SEB Bank; or
  • if you have an account in Bank SNORAS, opened in litas, you can pay instalments in litas to your account in Bank SNORAS, as it is specified in the loan agreement. The transferred sum in litas will be credited against your loan account in the loan currency at the official currency conversion rate established by the Bank of Lithuania. Official currency conversion rates can be found under: http://www.lb.lt/exchange/default.asp.

4. Which information must be specified when paying the instalment?
Payers who wish their loan to be covered according to the loan redemption schedule, should indicate "1" in the field "Instalment code" of the order form.
Payers who wish to prepay their loan in full or in part should follow the relevant instructions provided in Part 3 or Part 4 below.

5. If a loan is in litas, can I pay instalments in foreign currency?
You can pay instalments of a loan in litas:

  • in litas, by transferring the funds to your account for instalments in Bank SNORAS, as it is indicated in the loan agreement; or
  • in foreign currency, by transferring the funds to Bank SNORAS account LT217044060007787462 located in SEB Bank. The transferred sum in foreign currency, unless repayment in such foreign currency is expressly permitted under your loan agreement, will be credited against your loan account in litas using the official currency conversion rates established by the Bank of Lithuania. Official currency conversion rates can be found under: http://www.lb.lt/exchange/default.asp.


PART 2: General Loan information

6. For which period should I pay the ordinary payments and the accrued interest?
You should pay the ordinary payments and the accrued ordinary interest for the period since 16 November 2011. If your ordinary payment for November 2011 was paid before 16 November 2011, you should pay the ordinary payments according to the loan redemption schedule. If previous ordinary payments have not been paid, you should also make these ordinary payments according to the loan redemption schedule.

7. By when must I pay the overdue payments?
The ordinary payments for November 2011, December 2011 and January 2012 and the accrued ordinary interest must be paid before 1 February 2012. All ordinary payments should be paid according the loan redemption schedule.

8. Will default interest be calculated for 16 November 2011 to 31 January 2012 for overdue payments?
The Bankruptcy Administrator has agreed to waive default interest on unpaid amounts falling due in the period 16 November 2011 to 31 January 2012 to reflect the fact that customers have had difficulty in paying amounts into SNORAS.

9. Can I transfer payments by using Bank SNORAS internet banking system?
We are unable to operate the Bank SNORAS internet banking system for making payments. You can pay instalments only by transfer of funds from another bank.

10. I have no financial possibility of performing my loan obligations. Whom should I contact concerning a change of the terms and conditions of the loan agreement ?
You should contact the bank concerning a change of the terms and conditions of the loan agreement to make arrangements for a meeting. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.

11. If I transfer a payment amount that is smaller than indicated in the loan redemption schedule, will default interest be calculated?
The default interest will be calculated from 1 February 2012 for the obligations not fulfilled by that day.

12. According to the loan agreement, the instalments payment schedule had to be changed after 16 November 2011. Will the instalments payment schedule be changed and how will I receive it?
The recalculation of variable interest will be carried out under the order stipulated in the loan agreement. Concerning the change of other conditions of the loan agreement, you should contact the Bank and arrange a meeting. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.

13. If this is my last loan instalment, whom should I contact regarding the release of collateral?

You should contact the Bank concerning termination of the loan agreement and make arrangements for a meeting. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling to the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.

14. Will the changes in the loan redemption schedule, stipulated in the loan agreement, be performed if it is provided for in the loan agreement that for one year I pay only interest in a linear way, and, after a year, the loan instalment and interest in annuity way?
All the changes stipulated in the loan agreement will apply.

15. Which fees of the Bank will be applied while performing the transfer of the instalment?
While performing the payment transfer, the fees established by the Bank, from which the payment transfer is performed, shall be applied. The fee for collection of the funds will not be applied by the Bank upon each incoming transfer before to 31 March 2012.  Application of the fee will be reconsidered prior to that deadline.

16. According to the signed loan agreement, a discount for the loan interest rate shall be determined by the regularity of transactions in my customer account. After the suspension of certain of the Bank's activities, it was not possible to make such transactions using my customer account, what interest rate will be applied to my loan?
After the suspension of certain activities of the Bank, the discounts determined by the regularity of transactions in your customer account will not be applied anymore. The applied interest for these loan agreements will be updated from 1st of February.

17. I have a credit card. Can I pay only interest as it is stipulated in the agreement? Is it necessary to repay the entire sum of the used credit limit?
All payments should be made pursuant to the terms of your agreement.

18. I have a hire purchase card. Is it necessary to repay the entire sum of the used credit limit?
All payments should be made pursuant to the terms of your agreement.

19. What if I make a payment greater than the scheduled loan amount; what happens to the excess?
Customers should only pay the amount due on the scheduled payment date. When the bankruptcy of SNORAS commenced, the Bank lost its banking licence and its ability to take deposits. Therefore, the Bank cannot hold excess payments on deposit as it did previously. Therefore, any amounts paid in excess will not be returned and will not be interest bearing. Any amounts received will be noted as a credit on a loan servicing statement and will be applied to the next scheduled payment. In the event that an excessive amount of excess payments have been received by the Bank, customers may be asked to apply those amounts in early prepayment of their loan obligations.

 
PART 3:  Partial Prepayments

20. How do I go about making partial prepayments of my loan ?
In order to part pay a loan you should complete the notification form. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com. The Bank's staff will be available to assist customers to complete a notification for the prepayment, if requested. The notification form must be delivered in writing to your Bank branch.
Following completion and delivery of the notification, an employee at the Bank branch will then check whether the request for partial prepayment is in accordance with the terms of the loan. If so, the employee shall confirm to you that you should make your partial prepayment in accordance with your notification.
Once the confirmation is made that you should proceed to make the partial prepayment, you should transfer the amount which you want to prepay as follows:

  • for payments in litas - to the account specified for the repayment of the loan instalments in the loan agreement;
  • for payments in foreign currency - to the Bank's account no. LT21 7044 0600 0778 7462 in AB SEB Bank.

If your request is not in in accordance with the terms of the loan, the employee shall communicate this to you and inform you not to make any prepayment until told otherwise. In this case, your request will be discussed by a committee appointed by the bankruptcy administrator. Their decision will be communicated to you by a branch employee. You will be required to sign a document amending the loan to reflect the partial prepayment. You should then make the partial prepayment using the same process detailed above.

21. What information do I need to provide in the relevant prepayment order relating to a prepayment?

  • for natural persons - the name and surname and the personal identification number of the borrower for whose account the payment is made;
  • for legal entities - the registered name and the registration code of the borrower for whose account the payment is made;
  • the number of the account specified for the payment of the loan instalments in the loan agreement;
  • the number of the loan agreement on account of which the payment is made; and
  • the payment code "2".

22. How should the prepayment be applied to the loan?

The borrower shall specify in the notification the way the prepayment should be allocated to the loan repayment. The prepayment should be applied in accordance with the terms of the loan agreement. If any other proposal is made by the customer, the customer should wait for confirmation that the proposed method of prepayment is accepted by the Bank.

PART 4:  Questions Relating to Refinancing or Prepayment in Full

23. How could I refinance the loan in another bank or make prepayment in full?

You should contact the Bank by filling in the form at the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com in order to arrange a meeting at your SNORAS branch.
Before completing the form relating to refinancing your loan you need to have a document confirming another bank's or third party's agreement to refinancing your loan.
In order to prepay in full or refinance a loan you should complete the request form provided by a representative of the Bank at the meeting in your Snoras branch where such representative will assist you in completing the request form, if requested.
In the request form, you must:

  • specify whether you want to refinance the loan with another bank or any other person or entity or if you want to prepay the loan in full;
  • if your loan is a secured loan which you wish to refinance, request the Bank to agree to a second ranking security over the pledged property in favour of the refinancing party specified above; and

The SNORAS branch representative will explain the next steps once you have submitted your request.

PART 5:  Other questions relating Loan Servicing

24. I signed the loan agreement, but the money was not transferred to my account. Is it necessary to pay the ordinary instalment indicated in the loan redemption schedule?
You will shortly receive termination of the loan agreement. Therefore no amount will be payable in respect of a loan. Any overdue fees may still be payable.

25. I signed the loan agreement, the money was transferred to my account, but I did not use it before 16/11/2011 and was not able to thereafter due to the suspension of some of the Bank's activities.  The entire loan amount is in my account. Is it necessary to pay the ordinary instalment indicated in the loan redemption schedule?
The loan instalments should be paid according to the payment schedule indicated in the loan agreement. Set-off may be available under the new laws. Please continue to check the Bank website for further announcements regarding this issue.

26. I signed a housing loan agreement, but the money was not transferred to the seller's account. Is it necessary to pay the ordinary instalment indicated in the loan redemption schedule?

You will shortly receive termination of the loan agreement. Therefore no amount will be payable in respect of a loan. Any overdue fees may still be payable.

27. I want to sell the property pledged to the Bank because I have found a buyer; the Bank's permit (certificate) is necessary which allows execution of the transaction. How can I obtain it?
You should contact the Bank concerning the loan certificate and make arrangement concerning a meeting. You can contact the Bank by filling in the form on the bank website by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.

28. I committed to purchase an apartment on the conditions of the state sponsored housing loans programme. The agreement was signed, the money was not transferred to the seller, I cannot take another loan on those conditions; furthermore, the loan issue fee was paid. Will the money be transferred to the seller? If not, will I be able to take a loan in another bank? Will the paid fee for concluding the loan agreement be returned?
The money will not be transferred to the seller. You should contact the Bank concerning termination of the loan agreement and fill in the form concerning the loan termination. You should also contact the Bank and make arrangements for a meeting. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.
Concerning repayment of the paid fee for concluding the agreement, you should fill in a creditors claim form, which you will find at the Bank's website and you should submit the signed claim form by e-mail to kreditoriai@snoras.com or creditors@snoras.com.
WE WOULD LIKE TO REMIND ALL BANK CREDITORS, THAT THE EXPIRATION DATE FOR SUBMISSION OF A CREDITORS CLAIM FORM IS 10 FEBRUARY 2012.

29. Student loans: I took a loan in your bank for studies. To whom will I have to pay the instalments? Can I refinance this loan? Can I take a new student loan (financed by the fund) in another bank?
If the money was paid out, you shall pay the ordinary instalments and the accrued interest under the order specified in the loan agreement. You can refinance the loan by the funds of another bank; however, in that case the state guarantees will not be applied. You should contact the Bank and make arrangements for a meeting. You can contact the Bank by filling in the form on the bank website, by calling your branch credit expert who is responsible for your loan, by calling the toll free line 8 800 27272 or by sending a query by e-mail to paskolos@snoras.com.
You are available to take new student loan (financed by the fund) in another bank. More information is provided on the website of the State Studies Foundation www.vsf.lt.

30. Student loans: I took a loan in the Bank for covering living expenses. What will happen to this loan? To whom will I have to pay the instalments? Can I refinance this loan? What actions should I take where I have not received the monthly loan payment designated for monthly living? Can I take a soft loan (financed by the fund) in another bank?
No further payments will be made by the Bank in respect of these loans. The loan should be repaid in accordance with the procedures outlined in Part 1. Your loan amount will be equal to the funds already paid to you plus calculated interests by the Bank. The students, who this autumn had concluded the state sponsored loan agreements with the Bank, can contact other banks and sign new loan agreements for the remaining unpaid sum. The exact information is provided on the website of the State Studies Foundation www.vsf.lt.
You can refinance the loan by the funds of another bank; however, in that case the state guarantees will not be applied. You should contact the Bank concerning any loan refinancing. Please also see question 23 above.
You are available to take new student loan (financed by the fund) in another bank. More information is provided on the website of the State Studies Foundation www.vsf.lt.

 

AB Bank SNORAS
7 A.Vivulskio Str. LT-03221 Vilnius
Phone: + 370 5  239 2239
Fax: + 370 5  232 7300
E-mail: info@snoras.com
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