Circular Letter No. 3/97/DOC - Credit Lines Manual: Codes 658, 667, 885, and 886

Banco de Portugal Circular Letter No. 3/97/DOC, dated 23-01-1997 SUBJECT: Credit Lines Manual. Credit Lines Codes 658, 667, 885 and 886

Due to the publication, on 31 July 1996, of Decree-Law No. 104/96, which amended the current regulations of RECRIA - Special Regime for Co-financing in the Recovery of Rented Properties, of Decree-Law No. 105/96 which created REHABITA - Support Regime for Housing Recovery in Old Urban Areas, and of Decree-Law No. 106/96 which created RECRIPH - Special Regime for Co-financing and Financing in the Recovery of Urban Buildings under Horizontal Property Regime, the credit lines with codes 658 and 885 shall be inserted into the Credit Lines Manual, replacing the existing ones with the same number, as well as the new lines created with codes 667 and 886.

Any clarifications may, as usual, be obtained from the Credit Operations and Markets Department of Banco de Portugal.

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Sent to: Banks, Caixa Geral de Depósitos, Caixa Económica Montepio Geral, Caixa Central de Crédito Agrícola Mútuo and Caja de Ahorros Municipal de Vigo.

C. PRIVATE FINANCING HOUSING STOCK RECOVERY CREDIT HOUSING REPAIR 27-11-96 Rented Property Recovery Code RECRIA - Special Regime for Co-financing in the Recovery of Rented Properties 658

BENEFICIARIES a) Owners and landlords who carry out conservation and improvement works in the flats and common areas of buildings; b) Tenants who replace landlords in carrying out the works.

OBJECT Conservation and improvement works in the flats and common areas of buildings.

FORM Loan contract between the lending institution and the beneficiary.

AMOUNT To be defined by the lending institutions, based on the value of the work to be carried out.

DURATION The loan terms are set by the lending institutions, taking into account the nature of the operations.

GUARANTEE Any form admitted by law.

NOMINAL RATE Rate to be agreed between the lending institution and the beneficiary.

REFINANCING BY BANCO DE PORTUGAL The resources mobilized by the lending institutions may not be refinanced. The classification of these operations shall be: "Private - Housing Stock Repair - Property Recovery - CODE 658"

C. PRIVATE FINANCING HOUSING STOCK RECOVERY CREDIT HOUSING REPAIR 27-11-96 RECRIPH - Special Regime for Co-financing and Financing in the Recovery of Urban Buildings under Horizontal Property Regime - Decree-Law No. 106/96, of 31 July. Code 667

BENEFICIARIES Condominium owners of urban buildings under horizontal property regime, respecting the conditions provided for in Article 2 of Decree-Law No. 106/96, of 31 July.

OBJECT To provide resources, in accordance with Article 4 of the same legislation, for works of:

• ordinary and extraordinary conservation in common areas;
• ordinary and extraordinary conservation and improvement of autonomous fractions, provided that one of the following requirements is met:
• all necessary ordinary and extraordinary conservation works in the common areas of the building have already been carried out;
• there has been a resolution by the condominium assembly to carry out works in the common areas of the building in accordance with the aforementioned Decree-Law.

FORM Loan contract between the lending institution and the beneficiary.

AMOUNT To be agreed between the lending institutions and the borrowers, and, where there is co-financing, up to the maximum limit of the non-co-financed value of the works.

DURATION The loan terms are set by the lending institutions, with repayment within a maximum period of 10 years.

GUARANTEE Mortgage or any other form admitted by law.

NOMINAL RATE Rate to be agreed between the lending institution and the beneficiary.

COMPETENT INSTITUTIONS National Housing Institute, Caixa Geral de Depósitos, Montepio Geral - Caixa Económica de Lisboa, Crédito Predial Português; banks and Caixa Central de Crédito Agrícola Mútuo, under the conditions of Dispatch 1089/96-SEFT, published in the DR, II Series, of 16-7-96.

REFINANCING BY BANCO DE PORTUGAL The resources mobilized by the lending institutions may not be refinanced. The classification of these operations shall be: "Private - Housing Stock Repair - RECRIPH - CODE 667"

BONUSES These operations may benefit from bonuses, granted under the conditions provided for in the general regime of subsidized housing credit established by Decree-Law No. 328-B/86, of 30 September.

E. PUBLIC ADMINISTRATION BODY FINANCING MEDIUM OR LONG TERM SUPPORT HOUSING 27-11-96 RECRIA - Special Regime for Co-financing in the Recovery of Rented Properties Decree-Law No. 197/92, of 22 September amended by Decree-Law No. 104/96, of 31 July Code 885

BENEFICIARIES Municipal Councils that replace landlords in carrying out works, in accordance with paragraph 2 of Article 2 of Decree-Law No. 197/92.

OBJECT Ordinary or extraordinary conservation works and improvement works.

AMOUNT To be agreed between the lending institution and the borrower, based on the value of the non-co-financed part of the works.

DURATION The loan terms are set by the lending institutions, with repayment within a maximum period of 10 years.

FORM Loan contract between the lending institution and the beneficiary.

GUARANTEE Any form admitted by law.

NOMINAL RATE Rate to be agreed between the lending institution and the borrower.

COMPETENT INSTITUTIONS National Housing Institute Caixa Geral de Depósitos, Montepio Geral - Caixa Económica de Lisboa, Crédito Predial Português and banks, under the conditions of Dispatch 1090/96-SEFT, published in the DR, II Series, of 16-7-96.

REFINANCING BY BANCO DE PORTUGAL The resources mobilized by the lending institutions may not be refinanced. The classification of these operations shall be: "PUBLIC ADMINISTRATION - Housing (RECRIA) - CODE 885"

BONUSES These operations may benefit from a bonus funded by IGAPHE.

E. PUBLIC ADMINISTRATION BODY FINANCING MEDIUM OR LONG TERM SUPPORT HOUSING 27-11-96 REHABITA - Support Regime for Housing Recovery in Old Urban Areas Decree-Law No. 105/96, of 31 July Code 886

BENEFICIARIES Municipal Councils

OBJECT Reconstruction works of residential buildings, where recovery is unfeasible, on the condition that the buildings to be reconstructed are owned or possessed by the municipality and are intended for rental under the supported rent regime. Construction or acquisition of flats for the temporary or permanent resettlement of households that must be displaced to enable the carrying out of works.

AMOUNT To be agreed between the lending institutions and the borrowers, based on the non-co-financed part of the value of the works and having as maximum values those resulting from the application of Decree-Law No. 163/93, of 7 May.

DURATION The loan terms are agreed between the lending institutions and the beneficiaries, with amortization within a maximum period of 25 years.

FORM Loan contract concluded between the municipality and the lending institution, which must also subscribe the collaboration agreement provided for in Article 2 of Decree-Law No. 105/96.

GUARANTEE Mortgage or any other form admitted by law.

NOMINAL RATE Rate to be agreed between the lending institutions and the municipalities, in accordance with the provisions of Article 4, paragraph 2 and Article 5, paragraph 1, letter b) of Decree-Law No. 105/96.

COMPETENT INSTITUTIONS National Housing Institute Caixa Geral de Depósitos, Montepio Geral - Caixa Económica de Lisboa, Crédito Predial Português and banks, under the conditions of Dispatch 1090/96-SEFT, published in the DR, II Series, of 16-7-96.

REFINANCING BY BANCO DE PORTUGAL The resources mobilized by the lending institutions may not be refinanced. The classification of these operations shall be: "PUBLIC ADMINISTRATION - Housing (REHABITA) - CODE 886"

BONUSES These operations may benefit from a bonus in accordance with the provisions of paragraphs 1 and 2 of Article 6 of Decree-Law No. 105/96.