Urgent Decree of the Minister of Economy and Finance, President of the CICR, No. 644 of 30 June 2012

Secretariat of the Interministerial Committee for Credit and Savings

Interministerial Committee for Credit and Savings The Minister of Economy and Finance - President

HAVING REGARD TO Legislative Decree 10 September 1993, No. 385, containing the Consolidated Law on Banking and Credit Regulations (hereinafter, TUB), and in particular:

Article 117-bis, which regulates the remuneration of credit facilities and overdrafts, and in particular paragraph 4, which assigns the CICR the power to adopt implementing provisions thereof, also in matters of transparency and comparability, as well as the power to extend the same discipline to other contracts for which analogous customer protection needs arise;

Article 114-undecies and Article 114-quinquies.3, which extend the application of Title VI of the TUB to payment institutions and electronic money institutions;

Article 120, which regulates the timeframes for recognizing the availability of funds related to cashier's checks or bank checks and the start date of interest on the deposit of such funds;

Article 127, paragraph 01, which assigns credit authorities the power to issue provisions on internal organization and controls to promote the transparency of contractual conditions and the correctness of relationships with customers;

HAVING REGARD TO Decree-Law 24 January 2012, No. 1, converted, with modifications, by Law 24 March 2012, No. 27, and in particular, Articles 1 and 1-bis;

HAVING REGARD TO Article 1, paragraph 1-ter, of Decree-Law 24 March 2012, No. 29, converted, with modifications, by Law 18 May 2012, No. 62, which establishes in which cases the fast-track processing fee provided for in Article 117-bis, paragraph 2, of the TUB is not due;

HAVING REGARD TO the CICR Resolution of 9 February 2000 containing "Methods and criteria for the production of interest on overdue interest in operations carried out in the exercise of banking and financial activities";

HAVING REGARD TO the CICR Resolution of 4 March 2003, No. 286, containing "Discipline of the transparency of contractual conditions of banking and financial operations and services";

HAVING REGARD TO the Urgent Decree of the Minister - President of the CICR of 3 February 2011, No. 117, containing "Provisions on consumer credit and amendments to the resolution of 4 March 2003 on the transparency of contractual conditions of banking and financial operations and services";

ON PROPOSAL of the Bank of Italy, formulated in agreement with CONSOB, pursuant to Article 127 of the TUB;

DEEMING the urgency of providing for measures, pursuant to and for the effects of Art. 3, paragraph 2, TUB;

DECREES

Article 1 (Definitions)

1. For the purposes of this decree, the following definitions apply: a) "customer": a subject who has an existing contractual relationship with the intermediary. Banks, financial companies, electronic money institutions, payment institutions, insurance companies, investment firms, collective investment schemes for savings, asset management companies, centralized management companies of financial instruments, pension funds, Poste Italiane s.p.a., Cassa Depositi e Prestiti, and any other subject carrying out financial intermediation activities are not considered customers. Companies belonging to the same group as the subjects indicated above are also not considered customers; b) "intermediary": banks, payment institutions, electronic money institutions, and other subjects authorized to offer the public the contracts provided for in Article 2; c) "credit facility", "sum made available to the customer", or "credit line": the sum of money made available to the customer, as determined in the contract, with the customer's right to use it and restore its availability; d) "overdraft": the sums of money used by the customer, or otherwise charged to them, in excess of the credit facility ("extra-credit usage"); the sums of money used by the customer, or otherwise charged to them, in the absence of a credit facility, in excess of the customer's balance ("overdraft in the absence of credit").

Without prejudice to the possibility for the intermediary to not allow the use or charge.

Article 2 (Scope of Application)

1. This decree defines the charges that may be applied to credit lines and overdrafts, as identified pursuant to Article 117-bis of the TUB. It applies in relationships with consumers and in those with subjects other than consumers:

a) credit lines regulated in current accounts, based on which the customer has the right to use and restore the availability of the credit facility; b) overdrafts in current account contracts in the absence of a credit line; c) overdrafts where there is a contract for a credit line regulated in a current account; d) credit facilities and overdrafts charged to payment accounts, granted in accordance with Article 114-octies, paragraph 1, letter a), of the TUB, excluding credit facilities charged to credit cards; e) overdrafts charged to credit cards.

2. The commissions applied to credit lines and overdrafts are regulated by Article 117-bis of the TUB, Article 27-bis, paragraph 1, of Decree-Law 24 January 2012, No. 1, and by this decree only when they concern the services indicated in paragraph 1.

Article 3 (Credit Facility)

1. Each credit facility granted through a contract provided for in Article 2, paragraph 1, letters a) and d), may entail exclusively the following charges borne by the customer:

a) a comprehensive commission, calculated proportionally with respect to the sum made available to the customer and the duration of the credit facility. The amount of the commission is freely determined - in coherence with this decree - in the contract, taking into account the specific type of credit facility, and cannot exceed 0.5 percent per quarter of the sum made available to the customer; b) an interest rate.

2. For the purposes of paragraph 1:

i) the comprehensiveness of the commission implies that no further charges may be provided for regarding the making available of funds or their use, including the processing fee, expenses related to interest calculation, and any other consideration for activities that are exclusively for the service of the credit facility. Taxes, notary fees, charges resulting from customer default, expenses for mortgage registration, and expenses for payment services for the use of the credit facility are not included in the commission; ii) the commission applies to the entire sum made available to the customer based on the contract and for the period during which the sum is made available; iii) the commission is charged to the customer as provided in the contract; if charged in advance, in case of early termination of the relationship, the excess part is refunded; iv) the interest rate applies to the sums used by the customer for the period during which they are used.

Article 4 (Overdraft)

1. To the overdrafts provided for in Article 2, the following charges may be applied exclusively, borne by the customer:

a) a fast-track processing fee; b) an interest rate on the amount and duration of the overdraft.

2. The fast-track processing fee has the following characteristics:

a) it is determined, for each contract, in a fixed amount and expressed in absolute value. Commissions of different amounts may be applied to different contracts, also depending on the type of customer. In contracts with subjects other than consumers, different commissions may be applied within the same contract depending on the amount of the overdraft, if it exceeds 5,000 euros; no more than three amount tiers may be provided; b) it does not exceed the costs normally incurred by the intermediary to carry out the fast-track processing and directly connected to it, as provided for in paragraph 4; c) it is applied only against charges that cause an overdraft or increase the amount of an existing overdraft; d) it is applied only when there is an overdraft with regard to the end-of-day available balance.

3. If the overdraft is only on the balance for value date, neither the fast-track processing fee nor the interest rate provided for in paragraph 1, letter b), are applied.

4. In conformity with what is provided for in Article 12-bis of the CICR Resolution of 4 March 2003, No. 286, as modified by Article 14 of the Urgent Decree of the Minister - President of the CICR of 3 February 2011, No. 117, for the quantification and application of the fast-track processing fee, intermediaries define:

a) internal procedures, adequately formalized, which identify the cases in which fast-track processing is carried out; the commission is applied exclusively in these cases. In case of multiple overdrafts during the same day, no more than one commission may be applied; b) the costs of fast-track processing, possibly differentiated as provided for in paragraph 2. The quantification is formalized and adequately motivated.

5. The cases in which the fast-track processing fee is applied based on the procedures defined pursuant to paragraph 4, letter a), are made known to customers.

6. The fast-track processing fee is not due when:

a) in relationships with consumers, both of the following conditions are met:

i) for overdrafts in the absence of credit, the total passive balance - even if derived from multiple charges - is less than or equal to 500 euros; for extra-credit usages, the total amount of these latter - even if derived from multiple charges - is less than or equal to 500 euros; ii) the overdraft does not last more than seven consecutive days; b) the overdraft occurred to make a payment in favor of the intermediary; c) the overdraft did not occur because the intermediary did not consent to it.

7. The consumer benefits from the exclusion provided for in paragraph 6, letter a), for a maximum of once for each of the four quarters comprising the calendar year.

8. Pursuant to Article 117-bis, paragraph 2, of the TUB, following the overdraft, the customer does not incur further charges than those indicated in this Article. It follows that, in case of extra-credit usage, the interest rate provided for extra-credit usage applies exclusively to the overdraft amount, and the interest rate related to the credit facility may be increased only in the presence of the prerequisites and in compliance with the procedures provided for in Article 118 of the TUB.

Article 5 (Final Provisions)

1. To ensure transparency and comparability of the costs provided for in Articles 3 and 4, the provisions of the Bank of Italy on "Transparency of banking and financial operations and services. Correctness of relationships between intermediaries and customers" issued in implementation of the CICR Resolution of 4 March 2003, No. 286, and the Urgent Decree of the Minister - President of the CICR of 3 February 2011, No. 117, apply.

2. The Bank of Italy may issue implementing provisions of this decree.

3. What is established, pursuant to Article 120 of the TUB and the CICR Resolution of 9 February 2000 containing "Methods and criteria for the production of interest on overdue interest in operations carried out in the exercise of banking and financial activities", remains unchanged.

4. Contracts in force as of July 1, 2012, are adapted by October 10, 2012, with the introduction of clauses conforming to Article 117-bis of the TUB and this decree, pursuant to Article 118 of the TUB. The adaptation of contracts to what is provided for pursuant to Article 117-bis of the TUB and this decree constitutes justified cause pursuant to Article 118 of the TUB. For contracts that do not provide for the application of Article 118 of the TUB, intermediaries propose the adaptation of the contract to the customer by October 10, 2012.

5. This decree will be published in the Official Gazette of the Italian Republic and will enter into force on July 10, 2012.

Rome, 30 June 2012 THE MINISTER - PRESIDENT