Decree No. 370 / 2004 Coll.
Government Regulation on the scope and conditions of the use of funds to cover loans secured by the State Housing Development Fund
Valid
Regulation
Effective from 21.06.2004
Text versions:
11.12.2009
21.06.2004
370
GOVERNMENT REGULATION
of 21 April 2004
on the scope and conditions of the use of funds to cover loans secured by the State Housing Development Fund
The Government orders pursuant to § 9 of Act No. 211 / 2000 Coll., on the State Housing Development Fund and amending Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic in the case of transfers of State property to other persons and on the National Property Fund of the Czech Republic, as amended, to implement § 3 (1) (f) of this Act:
(1) This Regulation provides for the scope and conditions of the use of the funds of the State Housing Development Fund (hereinafter referred to as the Fund) to cover liability obligations for part of the outstanding principal of a loan granted to a legal or natural person (hereinafter referred to as the applicant) to cover the costs associated with the construction of rental apartments and the construction of infrastructure by municipalities for residential construction.
(2) The applicant must have his registered office or residence in the territory of:
(a) a Member State of the European Union;
(b) a State Party to the Agreement on the European Economic Area; or
(c) the Swiss Confederation.
(3) For the purposes of this Regulation, construction shall mean:
(a) the new building of the apartment house where the rental apartment is created,
(b) the superstructure or extension according to the building legislation1), resulting in a rental apartment;
(c) building modifications according to the building legislation1) to create a rental apartment from
1. premises intended for purposes other than housing; or
2. an apartment unfit for living.
(4) If an application for guarantee is submitted after 1 January 2012, the construction referred to in paragraph 3 (a) shall comply with the energy performance requirements of the buildings, applicable at least to Class B under the specific legislation governing the energy performance of the buildings (2).
Guarantee range
(1) A guarantee can provide a loan for a maximum period of 40 years from the date of conclusion of the guarantee contract.
(2) The guarantee guarantees a maximum of 70% of the outstanding principal of the loan. In so doing, the outstanding portion of the principal for which it is guaranteed may not exceed
(a) in the case of construction referred to in § 1 (3) (a)
1,500,000 CZK, or
2. 1 800 000 CZK, if the applicant is a municipality and part of this construction is the technical infrastructure of the municipality,
(b) for the construction referred to in § 1 (3) (b) and (c) 300 000 CZK.
Guarantee conditions
(1) Only a loan granted by a bank or a branch of a foreign bank (hereinafter referred to as "the bank") may be guaranteed by the guarantee to cover the costs associated with the construction or construction infrastructure of the municipality referred to in § 1 (3) (a).
(2) The guarantee of the loan by guarantee referred to in paragraph 1 shall be possible only:
(a) on the basis of a written contract concluded between the Fund and the applicant (hereinafter referred to as the guarantee contract),
(b) where the commitments of the applicant towards the Fund arising from the guarantee of the Fund are properly secured by one of the means of securing the obligations laid down in the Civil Code;
(c) the agreement between the Fund and the applicant on the extent and manner of checking the use of the credit for which a guarantee is required under this Regulation.
(3) At the time when the loan is guaranteed by guarantee, the applicant shall not transfer the loan or the ownership of the lease to another person without the consent of the Fund. If the person to whom the credit or ownership right is transferred fulfils the conditions laid down in this Regulation and undertakes to assume the rights and obligations relating to the guarantee, the Fund shall give its consent to the transfer.
(4) The applicant will not change the use of construction as a rental apartment for the duration of the guarantee but for at least 10 years after the conclusion of the guarantee contract.
Guarantee procedure
(1) The application for guarantee of the loan is submitted by the applicant to the Fund.
(2) The applicant must attach to the application:
(a) the credit agreement or the draft credit agreement, if such a contract is not yet concluded, containing always details of the amount of the credit, the purpose of the credit and the date of the last instalment of the credit;
(b) the documents necessary for the credit risk assessment;
(c) the order of the council which approved the conclusion of the credit agreement if the applicant is a local authority,
(d) a statement that, at the date on which the application for guarantee of the credit is submitted, it does not have a outstanding balance to the public budget or to the health insurance undertaking;
(e) a declaration stating that it is not known that the enforcement of the decision imposing the payment of the sum of money is against him;
(f) documents certifying the manner in which the commitments against the Fund arising in the case of the guarantee transactions by the Fund are secured;
(g) for the construction referred to in Article 1 (3) (c) (2), an opinion of an authorized engineer in the field of ground construction, or an expert opinion drawn up by a forensic expert in the field of ground construction, or a statistic of buildings evidencing the incapacity of an apartment for housing;
(h) a declaration in the case of aid granted under the directly applicable EC Regulation governing small scale aid (3).
(3) The Fund may require additional documents to assess the purpose of the credit, the financial security of the investment and the level of risk.
(4) Where an application for a credit guarantee fulfils the conditions laid down in this Regulation, the Fund shall assess the risk of a credit guarantee guarantee and may conclude a guarantee contract with the applicant on the basis of that assessment.
The guarantee contract shall include in particular:
(a) the name and registered office of the Fund;
(b) the name and, where applicable, the name, surname, address of the place of permanent residence or place of residence and the date of birth of the applicant, if the applicant is a natural person, or the name, registered office and identification number, if the applicant is a legal person, name or, where applicable, surname, address of permanent residence or address of residence and date of birth of the person or persons acting on behalf of the legal person;
(c) the commercial firm, the registered office and the identification number of the lending bank;
(d) the purpose and amount of the credit or designation of the credit agreement;
(e) the date of the last instalment of the loan guaranteed by guarantee;
(f) the amount of the guarantee;
(g) the period for which the loan is guaranteed by guarantee;
(h) the amount of the payment for the guarantee of the loan and the method of its reimbursement;
(i) arrangements for securing the applicant's commitments to the Fund;
(j) arrangements for the scope and method of checking the use of the credit guaranteed under this Regulation;
(k) the amount of interest on late payment under the special legislation in the event that the applicant fails to repay the claim to the Fund within the specified period;
(l) an arrangement on the maturity date of the claim arising from the guarantee performance; the period may not exceed 60 days from the date of receipt of the recovery call;
(m) a contractual fine arrangement in the event that the applicant uses the means obtained by drawing a guaranteed credit for a purpose other than that specified in the guarantee contract or infringes the obligations laid down in the guarantee contract;
(n) arrangements for the payment of the contractual fine referred to in (m); the contractual fine must be paid in full on a one-off basis, not later than the date specified in the letter of invitation to the Fund;
(o) arrangements for the applicant's information obligations towards the Fund.
Procedure for the use of Fund funds
(1) The Fund will satisfy the bank's loan claim following the Bank's call for guarantee performance.
(2) The Fund shall send an invitation to the applicant to settle the claim no later than 30 days after the date of fulfilment of the liability obligation.
If the Fund finds that the applicant has used the loan for a purpose other than that referred to in the credit agreement, it shall, within 30 days of the finding of this fact, invite the applicant to pay the agreed contractual fine.
Efficacy
This Regulation shall enter into force on the day of its publication.
Prime Minister:
PhDr. Špidla v. r.
Minister for Local Development:
JUDr.
1) Paragraph 2 (5) of Act No. 183 / 2006 Coll., on Territorial Planning and Construction Regulations (Construction Act).
2) Decree No. 148 / 2007 Coll., on the energy performance of buildings, as amended.
3) Article 3 of Commission Regulation (EC) No 1998 / 2006 on the application of Articles 87 and 88 to de minimis aid.
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Regulation Information
| Citation | Government Decree No. 370 / 2004 Coll., on the scope and conditions of the use of funds to cover loans secured by the State Housing Development Fund |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.06.2004 |
|---|---|
| Effective from | 21.06.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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