|
The eleventh part of the new Banking Act deals with mortgage banking. For purposes of the Act, a mortgage transaction shall mean
- (a)
- provision of mortgage credit facilities and issue of mortgage certificates related thereto, and
- (b)
- provision of municipal credit facilities and issue of municipal bonds related thereto by the bank.
The Act further defines terms such as mortgage and municipal credit facilities. The minimum maturity period of both types of credits is determined for 4 years and the maximum for 30 years.
Unlike the former Banking Act, receivables of mortgage bank from mortgage credit facilities and receivables from municipal credits not exceeding 70% of the value of mortgaged real estate may be used for proper coverage of issued mortgage certificates and municipal bonds. Mortgage and municipal credits above this limit may be provided only if the total value of receivables exceeding this limit is not more than 10% of the total amount of provided mortgage and municipal credits.
A list and scope of mortgage credit facilities and municipal credits, mortgages and receivables of a mortgage bank from mortgage credits and municipal credits used for coverage of mortgage certificates and municipal bonds or other values serving as substitute coverage have to be registered by the mortgage bank in its Mortgage Register. By the end of January and July of each calendar year, the mortgage bank is obliged to submit to NBS and MF SR an information on records from its Mortgage Register for the last six months.
Banks are still obliged to request evidencing of identity of clients at each transaction except for activity performed by means of exchange ATMs which do not enable to verify the identity.
|
