BOV HOME LOANS

GENERAL TERMS AND CONDITIONS

 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

Home Loan sanctioned by Bank of Valletta p.l.c. (The Bank)

1. Unless otherwise agreed, the English language will be used for the purpose of interpreting the Facility Letter and for all
communications in connection with the Facility Letter.

2. Facility Letter Validity

The validity period of a Facility letter commences from the date when the Facility letter is issued.
a. If the preliminary agreement is due to expire within 6 months’ time, then the Facility letter will be valid for 6 months;

b. I f the preliminary agreement extends for more than 6 months but less than one year, then the Facility letter will be
valid for one year.

c. I f the preliminary agreement is of a longer term which exceeds more than one year, then the Facility letter will still
be valid for one year with the proviso that it may be extended for a further period after the Bank certifies that there
were no material changes to the customer’s financial position.

In each of the above cases, any extension of the validity of the Facility letter may be considered.

Utilisation of facilities

No drawdown will be permitted if the Facility letter validity has expired. The Bank may consider extending the drawdown of
a loan subject that the Facility letter is valid and subject to the payment of a commitment fee as per Bank’s Tariff of Charges.

3. This facility is also subject to the terms and conditions set out hereunder:

a. Unless you are self-employed, you agree to channel your wage or salary direct to the Bank at all times during the
duration of the Loan.

b. Unless otherwise agreed, the Bank should have the right to supply loan funds to you, whether in whole, or in part,
by means of a direct payment of the supplier indicated on the invoice submitted by yourself.

c. Where there is more than one customer, any reference to ‘Customer’ includes a reference to each of them and the
agreements, obligations and liabilities of such person herein contained are joint and several.

d. Unless otherwise agreed, withdrawals from the loan account are to be signed by all account holders.

e. Unless otherwise agreed, all payments and remittances received in the name/s or for the credit of either or any
one or more of the account holders shall be placed to the credit of the loan account.

4. uthority is hereby given to the Bank to divulge any information regarding this/these facility/ies to the guarantor/s and/or
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pledgor/s indicated in this Facility Letter.

5. a. The loan/s shall become immediately due and payable together with interest and charges upon the occurrence of
any of the events of default listed in the attached ‘Events of Default’ and on receipt of the Bank’s first demand in writing.

In addition to the above, the Bank reserves the right, at its sole discretion to terminate its business relationship with you
for grounds, even if extraneous to the conduct of the loan account, which it considers of sufficient gravity to warrant such
termination. In such cases, and depending on the severity of the circumstances, the Bank shall be entitled, at its option,
to consider such grounds as an event of default entitling the Bank to give you reasonable notice to make alternative
banking arrangements or claim full repayment of the outstanding loan balance within thirty (30) days. Circumstances for
termination may include, but are not limited to, the following:

• onduct on your part which prejudices the Bank’s interests, security, reputation or giving rise to a material risk
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to the Bank, or

• If you or any third party whom the Bank would be paying from the loan account (such as a property vendor,
supplier or service provider) become subject to any court order prohibiting us from making any payment to you
or contract with you, or any court order attaching or freezing your assets, in which case, the Bank would have
no obligation to disclose the reason for terminating the business relationship, or

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 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

• I f you or any third party whom the Bank would be paying from the loan account (such as a property vendor,
supplier or service provider) become the subject of any sanction/s issued by any national government, such
as the United States, or any international organisation, such as the United Nations Security Council and the
European Union, or,

• If it becomes apparent to us that you or any third party whom the Bank would be paying from the loan
account (such as a property vendor, supplier or service provider) are involved in any fraud, money laundering
or financing of terrorism whatsoever in which case, the Bank would have no obligation to disclose the reason
for terminating the business relationship.

b. In the event that you do not effect repayment as agreed or if you are in default, the Bank may, by giving you notice
in writing, debit any account held by you with the Bank, with all or any repayment instalments, interest calculated
in accordance with the above, and charges as set out herein.

Notwithstanding any other clause of this Facility letter and/or deed of loan, in so far as costs payable by you are
concerned, where you do not effect repayment as agreed, where you are in default or where you are otherwise in
breach of any of your obligations or any of the conditions of the Facility letter and/or the deed of loan, the Bank
may increase the interest rate, up to a maximum which is presently eight percent (8%), on the full loan amount by
giving you a prior written notice.

c. Contribution towards the property purchase is to be deposited with the Bank before signing of the deed.

d. i . Loan repayments are to be effected by standing order.

ii. Payment for insurance premia and emphyteusis are to be strictly affected by privileged standing order
arrangements with the Bank.
Furthermore, in the event of a change in the amount of the repayment resulting from a change in the Home
Loans Bank Base Rate, or in the applicable insurance policy stamp duty, you are hereby authorising the Bank
to amend in accordance with the terms of this Facility Letter the loan repayment / insurance policy standing
order amount, on your behalf and without further notice.
Moreover, if no funds are available in the account indicated by you in the standing order application for the
payment of any insurance premia, the Bank may, by giving you notice in writing, debit any account held by
you with the Bank, including the Loan account, with the relative premia.

e. ou acknowledge that the Bank has issued this Facility Letter in reliance on representations and/or information
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given to the Bank. Consequently, if any event occurs or circumstance arises which, may reasonably affect the
performance of all or any of your obligations under this Facility Letter then, or at any time thereafter, prior to
utilisation of the banking facilities indicated above, the Bank shall have the right to amend, withdraw or cancel this
Facility Letter by giving you notice thereof by simple letter.

6. inancial statement of affairs of applicants in detail to show the repayments are still feasible and sustainable, as and when
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required by the Bank from time to time.

7. Loan repayments should not in any way prejudice the performance and operations of any account in which you have
any interest or control.

8. The terms and conditions (including the interest rate, fees and charges) may be amended from time to time by the Bank:

a. i n the event of changes in market conditions or in banking practice;

b. in the event of changes in costs or reductions in return to the Bank, including costs or reductions in return which
shall be consequent upon compliance by the Bank with any capital adequacy or minimum reserve requirements
or any other request from or requirement of any Central Bank or other fiscal, monetary or other authority;
c. if you are in breach of your obligations in line with paragraph 5b above;
d. in the event of changes in the law and/or a decision or recommendation of a court, regulator or similar body;
e. in the event of the introduction of new or improved products, systems, methods of operation, technology,
alternative delivery channels, services or facilities;
f. in the case of a merger with or takeover of the business of another bank or organisation offering similar services;
g. If any event occurs or circumstances arises which may reasonably affect the performance by you or all or any of
the obligations under this Facility Letter. The Bank will give you reasonable written notice of such changes.

If a change in the interest rate is solely due to a change in the Home Loans Bank Base Rate, the Bank will inform you
thereof by publication in the local press or on the Bank’s website www.bov.com. Information concerning the new Home
Loans Bank Base Rate will also be available at the Bank’s branches or through internet banking.

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 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

9. I n the case of non-Euro denominated home loans, customer/s confirm that he/she/they is/are aware of the potential risks
involved as a result of fluctuations in the interest rate and currency exchange risks.

10. Security

You and/or the Pledgor may be required to make up for the difference between the value of the securities pledged in
favour of the Bank and the amount of the facility. This difference is called the ‘Security Margin’. If at any time, the value of
the securities pledged in favour of the Bank taken at the lowest market price of the day or at the exchange rate of the day
(if applicable) is less than the amount of the facility plus a margin as may be determined by the Bank from time to time,
you and/or the Pledgor shall on demand, and at the sole discretion of the Bank, either pay to the Bank an amount which
is required to make up the Security Margin or alternatively give further security to make up the required Security Margin.

a. Insurance

i. All properties hypothecated should be adequately insured for full replacement value, and the said Insurance
policies are to be pledged in favour of the Bank.

ii. ny policy of life assurance required by the Bank as security against credit or loan facilities may be arranged
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with and obtained from any insurance company, or through an enrolled insurance intermediary, broker or
tied insurance intermediary, provided the policy meets the requirements of the Bank, such as, it is issued by
a reputable insurance company, it provides adequate cover for the purposes of the credit or loan facilities
being required from the Bank.

Whilst you are free to contract life assurance and buildings insurance cover from any other source, we are taking this
opportunity to inform you that the Bank offers life assurance products issued by MSV Life p.l.c. and buildings insurance
products issued by Middle Sea Insurance.

Pledges on Life Assurance Policy & Comprehensive Property Protection Insurance Policy should be received by the Bank
and perfected within 15 days from issue of Facility letter.

Insurance policies pledged in favour of the Bank must be acceptable to the Bank and, unless otherwise agreed, are to
be subject to the laws of Malta.

b. Hypothecated Property

i. he facility will only become operative when the security required and an architect’s valuation of the property
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to be hypothecated are submitted to the Bank, and these are found to be to the Bank’s satisfaction.

ii. oan Drawings for the completion and finishes are to be duly certified by the responsible architect confirming
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that works are of the required standards of workmanship and comply with approved building permits and
plans. Moreover, on completion of the works on the property an architect’s declaration duly completed for
the issue of a compliance certificate is required. This document is to confirm that:

a. t he building and finishes are in accordance with the building permit and approved plans;
b. there are no infringements which may prejudice the provision of water and electricity to the property;
c. on completion, an architect’s property report and valuation certifying that property will be fit for
habitation.

iii. Within two years from date of Facility letter you should provide the Bank with an architect’s certificate
confirming that all the required works are completed and that property is fit for habitation, including the
provision of water and electricity services.

iv. Contractual undertaking to immediately inform the Bank once the relative works are completed and
authorising the Bank to appear on the relevant deed of conservation of privilege at the Bank`s sole discretion
and at your sole expense.

v. Copy of the latest ground rent receipt.

vi. You are kindly requested to submit the relevant Planning Authority permit, if not already submitted, prior
to first loan drawdown. Please note that drawdown will only be allowed after the first thirty (30) days
commencing from decision press date of relative permit, and on condition that no 3rd party appeal related
to the said permit has been lodged within this period, in which case, drawdown will only be allowed once
the Environment and Planning Review Tribunal decides to release suspension of said permit.
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 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

vii. Unless the property/ies under Security Required has/have already been registered at the Land Registry, you
are to provide your Notary with a site plan of the property/ies in conformity with Land Registry requirements.

viii. On the deed of Loan you are to give the Bank your contractual undertaking not to:

a. ive further charges over the hypothecated property even if these rank after the charges registered
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in favour of Bank of Valletta p.l.c.

b. ransfer, let, sublet, part with, or allow third parties to use the hypothecated property without the
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Bank’s prior written consent.

11. Legal

a. ou are advised that the amendment/s is/are not to be interpreted to constitute a novation of your obligations
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towards the Bank. On default the terms and conditions of the quoted Facility Letter shall apply and have effect
immediately.

b. In accordance with law, the facility/ies is/are being granted on a joint and several basis, where applicable.

c. his Facility Letter shall be regulated by, and shall be construed in accordance with the laws of Malta and any
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dispute in relation thereto shall be subject to the exclusive jurisdiction of the Courts of Malta.

12. Tariffs and Other Expenses

a. A fee is charged in accordance with the Bank’s Tariff of Charges when the loan is repaid in full.

b. The full or partial Advances Processing fee is payable on issuance of the Bank’s Facility letter which fee may be
refunded after the publication of the relative deed, where applicable.

c. The full or partial legal fees are payable on the publication of the relative deed, if applicable.

d. he property hypothecated in the Bank’s favour as security for facilities granted may be subject to a property
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revaluation every three years or at shorter intervals, at the Bank’s discretion. The Bank-appointed valuer will be
engaged to carry out property revaluation/s, in line with current banking regulations. Fees and expenses in respect
of property revaluations shall be for your account.

13. a. Early Repayment Administration Fee - Variable / Interest Only Home Loans

You may at any time repay the loan and all interest accrued up to the date of repayment, in full or in part.

In the event that you request to do so, the Bank shall calculate the exact amount which is due from you at the
time of the request. Depending on the time of the early repayment, the exact amount which you will repay may be
lower than the total amount repayable to the Bank had you not effected such early repayment.

In order to effect an early repayment you may contact any of the Bank’s branches, or the Bank’s Customer Service
Centre on (356) 2131 2020 or via the Bank’s website www.bov.com.

The Bank reserves the right to charge any administrative costs which it may incur as a result of an early repayment,
as per the Bank’s Tariff of Charges, as may be amended from time to time which is available at any of the Bank’s
branches, on the website www.bov.com or by calling the Bank’s Customer Service Centre.

In the case of early repayment no refund is given of one-time fees such as processing and legal fees.

b. Early Repayment Fee – Fixed Interest Rate Home Loans

In the case of Fixed Interest Rate Home Loans, the following fixed interest rate contract terms and conditions shall
apply:

i. Utilization Period:

The fixed interest rate (the “Fixed Interest Rate”) specified in the Facility Letter shall be fully utilized within a
period of eighteen (18) months from the date of the Facility Letter (the “Utilization Period”).
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 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

ii. Forfeiture of Charges:

The booking fee as stated in the Bank’s Tariff of Charges (currently €250) shall not be refunded if amount of
the loan at the Fixed Interest Rate is not utilized within the Utilization Period.

iii. Changes to the Fixed Interest Rate:

Changes to the Fixed Interest Rate are not allowed, save in exceptional circumstances, at the discretion
of the Bank, and, if allowed, may be subject to further conditions, and, in particular to a fee covering the
loss incurred by the Bank resulting from the difference between the Fixed Interest Rate and the prevailing
interbank interest rate at the time of the change to the Fixed Interest Rate.

No refund of one-time fees such as processing, booking and legal fees shall be given.

iv. Early Repayment:

You may at any time repay the loan and all interest accrued up to the date of repayment, in full or in part.

In the event that you request to do so, the Bank shall calculate the exact amount which is due from you
at the time of the request. Depending on the time of the early repayment, the exact amount which you will
repay may be lower than the total amount repayable to the Bank had you not effected such early repayment.

Should you request to repay the home loan early in part or in full, during the Fixed Interest Rate Period the
Bank reserves the right to charge a fee covering the loss incurred by the Bank resulting from the difference
between the Fixed Interest Rate and the prevailing interbank interest rate at the time of the early repayment
(the “Early Repayment Fee”).

In order to effect an early repayment and ascertain the exact level of the Early Repayment Fee at that
moment, you may contact any of the Bank’s branches, or the Bank’s Customer Service Centre on (356)
2131 2020 or via the Bank’s website www.bov.com.

The Bank reserves the right to charge any administrative costs which it may incur as a result of an early
repayment, as per the Bank’s Tariff of Charges, as may be amended from time to time which is available
at any of the Bank’s branches, on the website www.bov.com or by calling the Bank’s Customer Service
Centre.

In the case of early repayment no refund is given of one-time fees such as processing and legal fees.

c. Settlement Fee

This fee is charged in accordance with the Bank’s Tariff of Charges when the loan is repaid in full.

14. AIP Permits

The AIP permit is to be provided to the Bank prior to the signing of the final deed, when applicable.

15. Central Credit Register

In line with Directive No. 14 issued by the Central Bank of Malta relating to the establishment of a new Central Credit
Register, information related to all your credit facilities in excess of €5,000 (if any) will be made available to the Central
Bank for inclusion in this Register. In terms of this Directive, all banks in Malta are legally obliged to provide to the Central
Bank all the necessary information on a monthly basis.

The credit facilities reportable for the purposes of this Register include loans, overdrafts, commitments, credit cards and
other credit lines which are deemed to represent a credit exposure.

Access to the Register, which will be operated through a fully auditable system on the CBM portal, will be strictly limited
to banks in Malta and Credit Reference Agencies for the issuance of credit scores, whilst customers themselves, or their
lawful representatives, may also request to exercise the right to have an extract of the information held on them on the
Register.

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 BOV HOME LOANS - GENERAL TERMS & CONDITIONS

16. Amortisation Table

You are entitled at any time throughout the duration of the loan to a statement of account in the form of an amortisation
table, upon your request free of charge. So however that you shall remain obliged to continue effecting monthly
repayments as stated above.

17. Complaints

Complaints regarding the facility should ideally be first discussed with the Manager of the Unit or the branch where the
facility is domiciled. If the response is not satisfactory, one may write to:
The Manager, Customer Issues,
Bank of Valletta p.l.c.
4th Floor, 45 Triq ir-Repubblika,
Il-Belt Valletta, VLT 113 – Malta
email: customerissues@bov.com
or complete a Bank’s complaint form available in electronic format on our website - https://www.bov.com via ‘Get in
Touch’.

In the event that you are still not satisfied with the Bank’s reply or no agreement was reached with the Bank, you may
refer the matter in writing to the Office of the Arbiter for Financial Services, as per the contact details provided below:
The Office of the Arbiter for Financial Services,
First Floor,
Pjazza San Kalcidonju,
Floriana FRN 1530, Malta.

Further information may be obtained through the official website: www.financialarbiter.org.mt; Freephone (local calls):
8007 2366 and Telephone: (356) 2124 9245.

EVENTS OF DEFAULT

There shall be an event of default if:

a. t he Customer* fails to pay any sum whether of principal, interest, fees or charges, due from it at the time and in
the manner stipulated in the document/s regulating the Loan; or

b. t he Customer commits any breach of or omits to observe any obligations and undertakings expressed to be
assumed by it in the document/s regulating the Loan; or

c. ny representation or warranty made or deemed to be made, or repeated by or in respect of the Customer, is or

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proves to have been, incorrect in any material respect; or

d. ny indebtedness of the Customer is not paid when due or becomes due and payable, or any creditor of the
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Customer becomes entitled to declare any such indebtedness due and payable prior to the date when it would
otherwise have become due or any guarantee or indemnity of the Customer in respect of indebtedness is not
honoured when due and called upon; or

e. ny consent, authorisation, licence or approval of, or registration with, or declaration to, governmental or public
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bodies or authorities, or courts, required by the Customer in connection with, or pursuant to, the execution, delivery,
validity, enforceability or admissibility in evidence of the document/s regulating the Loan or the performance by the
Customer of its obligations in the document/s regulating the Loan, is modified, or is not granted, or is revoked or
terminated or expires and is not renewed or otherwise ceases to be in full force and effect; or

f. creditor attaches or takes possession of, by way of execution, sequestration or other process is levied or
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enforced upon or sued out against, any of the undertakings, assets, rights or revenues of the Customer; and is
not discharged within seven (7) days; or

g. t he Customer suspends payment of its debts, or is unable, or admits inability to pay its debts as they fall due, or
commences negotiations with one or more of its creditors with a view to the general readjustment or rescheduling
of all or part of its indebtedness, or proposes, or enters into any composition or other arrangement for the benefit
of its creditors generally or as a class of creditors, or proceedings are commenced in relation to the Customer
under any law, regulation or procedure relating to the reconstruction of debts; or

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h. the Customer takes any action or any legal proceedings are started or other steps taken for :

i. the Customer to be adjudicated or found bankrupt or insolvent; or

ii. the winding up or dissolution of the Customer; or
iii. the appointment of a liquidator, curator, administrator or similar officer of the Customer

i. the Customer suspends or ceases or threatens to suspend or cease to carry on its business; or

j. ll or a material part of the undertakings, assets, rights, or revenues of, or shares, or other ownership interests
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in, the Customer are seized, nationalised, expropriated or compulsorily acquired by, or under the authority of any
government; or

k. nless previously approved in writing by the Bank, the Customer allows and/or recognises any transfer of its
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shares or any change of its ownership and/or in any other manner whatsoever allows the control of the Customer
to be acquired or exercised by any person or entity not having control as at the date of the document/s regulating
the Loan. For the purposes of this clause, “control” means the power to direct the management and/or policies of
the Customer whether through the ownership of capital, by contract or otherwise; or

l. i t becomes unlawful at any time for the Customer to perform all or any of its obligations in the document/s
regulating the Loan; or

m. t he Customer repudiates, or does, or causes, or permits to be done, any act or thing evidencing an intention to
repudiate the document/s regulating the Loan; or

n. there occurs in the opinion of the Bank, a material adverse change in the financial condition of the Customer; or

o. ny other event occurs or circumstance arises which, in the opinion of the Bank, is likely, materially and adversely
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to effect the ability of the Customer to perform all or any of its obligations under or otherwise comply with the terms
of the documents/s regulating the Loan; or

p. i f the loan is utilized in any other way than for the purpose indicated in the Facility letter, in which case without
prejudice to any of the Bank’s rights on the occurrence of an event of default, the Bank shall be entitled to increase
the interest rate to three point seven per cent (3.7%) over the Home Loans Bank Base Rate immediately upon
giving your written notification thereof.

* Wherever the word ‘Customer’ appears herein, this shall include the surety, if applicable.

Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, Il-Belt Valletta VLT 1130 - Malta (01/2022)
Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the
business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta)
and the Investment Services Act (Cap. 370 of the Laws of Malta).
Bank of Valletta p.l.c. is an enrolled Tied Insurance Intermediary under the Insurance Distribution Act,
Cap. 487 of the Laws of Malta for MAPFRE MSV Life p.l.c. (MMSV). MMSV (C-15722) is authorised
under the Insurance Business Act, Cap. 403 of the Laws of Malta. Both entities are regulated by the Malta
Financial Services Authority

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