CICR Deliberation of 22 April 1995 on Mortgage Credit Limits

Rome, date
Ministry of the Treasury
Via XX Settembre, 97

Interministerial Committee
for Credit and Savings

SECRETARIAT

DELIBERATION 22 April 1995

Implementation of Article 38, paragraph 2, of Legislative Decree 1 September 1993, No. 385 (Consolidated Text on Banking and Credit Laws). Mortgage Credit.

THE INTERMINISTERIAL COMMITTEE FOR
CREDIT AND SAVINGS

Having seen Article 38, paragraph 1, of Legislative Decree 1 September 1993, No. 385, which defines the notion of mortgage credit as the granting by banks of medium- and long-term financing secured by a first-degree mortgage on real estate;

Having seen paragraph 2 of the same article, which provides that the Bank of Italy, in accordance with the deliberations of the CICR, shall determine the maximum amount of mortgage credit financing, identifying it in relation to the value of the mortgaged assets or the cost of works to be carried out on them, as well as the cases in which the presence of prior mortgage registrations does not prevent the granting of financing;

Having seen Articles 42, paragraph 4, and 44, paragraph 3, of the aforementioned Legislative Decree, which provide that when financing for public works and, respectively, agricultural credit is secured by a mortgage on real estate, the regulations provided for mortgage credit operations shall apply;

Having seen Article 153 of the same Decree, which provides that until the issuance of the Bank of Italy regulations provided for in Article 38, paragraph 2, the regulations set by the previously applicable norms shall continue to apply in this matter;

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Rome, date
Ministry of the Treasury
Via XX Settembre, 97

Interministerial Committee
for Credit and Savings

SECRETARIAT

2.

Recognizing the need that, with regard to the maximum amount of financing in relation to the value of the guarantee, a single limit be established for all particular credit operations, in coherence with the regulatory rationalization carried out by the consolidated text;

Considering the appropriateness that, with regard to financing on real estate burdened by a mortgage with a degree subsequent to the first, the legislation be adapted to the principle of full competition among banks, leaving to them the assessment of the extent of credit in relation to the capacity of the mortgage;

On the proposal of the Bank of Italy;

D E L I B E R A T I O N

1. The maximum amount of mortgage credit financing shall be equal to 80 percent of the value of the mortgaged assets or the cost of the works to be carried out on them. This percentage may be increased up to 100 percent, provided that additional guarantees are given, consisting of bank and insurance sureties, policies from insurance companies, assignments of annuities or contributions borne by the State or public bodies, guarantee funds, and other suitable guarantees, according to the criteria established by the Bank of Italy.

2. In the presence of prior mortgage registrations on a real estate property, for the purpose of determining the maximum amount of a mortgage credit financing, the residual capital of the previous financing shall be added to the relevant amount.

3. The provisions under sub-paragraphs 1 and 2 shall also apply

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Rome, date
Ministry of the Treasury
Via XX Settembre, 97

Interministerial Committee
for Credit and Savings

SECRETARIAT

3.

to public works credit and agricultural credit operations, provided they are secured by a mortgage on real estate.

The Bank of Italy shall issue implementing instructions for this Deliberation.

This Deliberation shall be published in the Official Gazette of the Italian Republic.

Rome, 22 April 1995

THE PRESIDENT
L. Dini
(Signature)