The bank grants loans and opens credit lines in national and foreign currencies to residents of Ukraine – organizations, firms, enterprises of different ownership forms, individuals – entrepreneurs, and to non-residents. Financial position of the borrower and his ability to repay debt and interest for use thereof in time, availability of collateral are the main criteria for consideration of loan request. When granting loans JSB BROKBUSINESSBANK is governed by legislation currently in force and regulatory acts of the National Bank of Ukraine.

Interest rate is determined on the basis of market one, subject to the risk of loan granting to certain customer (average interest rates).

FORMS OF LOAN COLLATERAL

As loan collateral the Bank accepts the following:

• pledge of high-liquid property or securities;
• guarantees of other bank, financial institution, property or deposit funds of the third party;
• guarantee secured by property of the third party.

Total cost of collateral (in accordance with property appraisal by the bank) shall be at least 150% of loan and interest amount for the whole loan period (depending on collateral liquidity degree). When appraising property transferred as loan collateral, the bank applies reduction factors reflecting liquidity cost of the property.

To investigate possibility of loan granting (evaluation of borrower’s solvency) the borrower shall provide the bank with the following documents:

• A letter – loan request – enclosure;
• A request for funds transfer with specification of accurate bank and payment details;
• The borrower’s passport – enclosure;
• A form with specimen signatures – certified by notary (for customers of other banks);
• A certificate of codes issued by the Ministry of Statistics (a copy);
• Articles of Association – certified by notary (for customers of other banks);
• A constituent document – certified by notary (for customers of other banks);
• A copy of registration certificate;
• A copy of VAT payer certificate;
• Passport of the company’s director (a copy – to be made by loan department officer);
• A certificate of absence of loan indebtedness with servicing banks;
• A bank statement of funds flow and balance on settlement account for the last 6 months;
• A balance sheet (form No. 1) and profit and loss statement (form No. 2) as of the last reporting date, interpretation of last balance items: fixed assets, authorized fund, specialized funds and target financing, bank loans, items “Accounts receivable”, “Accounts payable” (for primary debtors and creditors) with specification of indebtedness origin date and payment conditions (in form of additional certificate). A balance sheet (form No. 1) and profit and loss statement (form No. 2) as of the last two annual dates. After the loan is issued the balance sheet (form No. 1) and profit and loss statement (form No. 2) shall be delivered on a quarterly basis;
• Income statements of enterprises as of the last reporting date and for each following quarter, copies with wet seal;
• Documents guaranteeing loan repayment (contract of pledge, surety, etc). In case of surety or guarantee by the third person the following documents shall be delivered: its balance sheet with wet seal and signatures of director and chief accountant, form of specimen signatures and seal impress certified by notary, Articles of Association and constituent agreement certified by notary, statement of funds flow on settlement account for the last 6 months – primary account without fail. In case of pledge the following document shall be delivered: documents confirming ownership right to the object pledged, balance statement specifying on which account and in which amount the object is reflected, document defining dimensions and specifications of the object pledged, appraisal report of independent experts (those the bank entrusts to), and other documents depending on the object pledged;
• Previous auditor’s report;
• Contract for loan agreement;
• Feasibility study on loan repayment, or business plan;
• Payment order for money transfer from customer’s loan account with the bank onto its settlement (current, deposit or other) account, or from customer’s loan account with the bank onto counteragent's account according to intended purpose of the loan under loan agreement. Payment details in payment order shall be specified in the following form: “According to loan agreement No. XX-XX-XX as of XX.XX.200_ for …”. Payment orders shall be delivered in four copies, two of which are to be signed and affixed with a seal pursuant to legislation currently in force. (Payment orders shall be delivered by the customer after the parties sign loan agreement);
• Extract from minutes of the meeting of founders in which it is specified that director (surname, name and patronymic name of director) is entitled to take loan in certain amount from the bank, and to provide certain property as a collateral;
• Extract from minutes of the meeting of founders about assignment of company’s director and notarized copy of director’s labour contract;
• Customs declarations with all respective documents affixed with wet seal, acceptance certificates and other documents confirming intended purpose of the loan (for loans in foreign currency);

Servicing of loans granted to the bank customers by foreign creditors

JSB BROKBUSINESSBANK being the authorized bank services loans in foreign currency granted by foreign creditors to bank customers provided that the latter were issued a registration certificate by the National Bank of Ukraine.

The creditors may be:

• private banks and other financial institutions;
• foreign parent companies and their subsidiaries;
• foreign companies and other private creditors;
• official creditors: governments of foreign states, their official agencies, international organizations.

• Avalizing of bills – undertaking by the bank of liability to pay the bill in full or partially for one of persons being binding under the bill if the bill failed to be paid by payer in time, or in case of impossibility to obtain payment under the bill in time;
• Discount of bills is a form of crediting by way of bill purchase at maturity thereof with a discount of monetary funds n order to obtain profit from payment of bill in full. When discounting the bill the bank grants to the bill holder - payer a term loan;
• Borrowings against bill pledging are granted subject to bill endorsement according to which the bill is not transferred into the ownership, but is kept by the bill holder (with the bank) as a collateral.

Procedure for acceptance and drawing up of documents for carrying out of these transactions, as well as procedure for drawing up of agreements for carrying out of transactions and security thereof are similar to that of loan granting.

GUARANTEES

JSB BROKBUSINESSBANK provides its customers with the following guarantees:

• payment guarantee which provides for payment of certain amount by the bank on beneficiary’s demand if trading partner – the bank customer fails to fulfil his payment obligations stipulated in the contract in time;
• advance payment guarantee is the bank’s liability to repay an advance payment made by the beneficiary in favour of the bank customer, if the customer fails to fulfil his obligations under the contract under which this payment was obtained;
• facility guarantee is given by the bank in favour of correspondent and is for the latter the collateral of a loan which will be granted to the supplier for fulfilment of his obligations under the contract;
• performance bond is the bank’s liability to compensate for losses incurred as the result of improper performance of contractual work by the bank customer;
• other kinds of guarantees.

Procedure for acceptance and drawing up of documents for guarantees, as well as procedure for drawing up of agreements and security thereof are similar to that of loan granting.

LEASING

Leasing is an entrepreneurial activity which consists in transfer by the lessor to the lessee into his exclusive use for fixed period of time of property owned by the lessor or purchased by him into the ownership by proxy and as agreed with the respective property seller, provided that the lessee pays periodical leasing fees.

The leasing object may be any real or personal estate which may relate to fixed assets according to legislation (machines, equipment, vehicles, computer and other technique, telecommunication systems, etc) allowed for free circulation on the market and with regard to which there are no restrictions to lease thereof.

Leasing is effected under the lease agreement which governs legal relations between leasing parties, and may be of two kinds – financial and operating, depending on peculiarities of leasing transactions.

• Financial leasing is an economic transaction which provides for purchase (acquirement) by the lessor upon the request of the lessee of fixed assets, with further transfer thereof into use of the lessee for the period exceeding no that of complete depreciation of such fixed funds, and with compulsory subsequent transfer of ownership right to such fixed funds to the lessee.
• Operating leasing is an economic transaction which provides for transfer by the lessor to the lessee of the right to use fixed assets for the period exceeding no the period of complete depreciation thereof, with compulsory return of such fixed assets to owner thereof upon completion of validity period of operating leasing agreement.

Procedure for acceptance and drawing up of documents for carrying out of leasing transactions, as well as procedure for drawing up of agreements and security thereof are similar to that of loan granting.

OVERDRAFT

Overdraft is a form of short-term loan which consists in writing funds off customer’s settlement account in excess of account balance, i.e. creation of debit balance on customer’s account. Overdraft loan is determined when opening the account and may not exceed predetermined amount.

Overdraft is granted to especially reliable customers. Overdraft may be given both in national, and foreign currency. Overdraft is a convenient form of crediting for customers due to fast access and possibility to obtain loan resources.

Customer shall pay for services of the bank in accordance with approved rates.

STATE REGISTER OF PLEDGES OF MOVABLES

The bank offers servicing of State Register of Pledges of Movables (SRPM). Upon customer's request the bank delivers services connected with inclusion or exclusion of objects, and issue of statements of availability (unavailability) of pledge of movables.

Customer shall pay for services of the bank in accordance with approved rates.

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