Decree on Conditions and Manner of Redemption of Republic of Serbia Bonds Before Maturity for Paying Certain Costs

DECREE
ON THE CONDITIONS AND MANNER OF REDEMPTION OF REPUBLIC OF SERBIA BONDS ISSUED IN RESPECT OF THE ECONOMIC DEVELOPMENT LOAN BEFORE MATURITY FOR THE PURPOSE OF PAYING CERTAIN COSTS (ìRS Official Gazetteî, no. 95/2004)
Article 1
This Decree specifies in further detail the conditions and manner of redemption of Republic of Serbia bonds, issued in line with Article 9 of the Law on the Regulation of the Obligations of the Republic of Serbia in Respect of the Economic Development Loan (ìRS Official Gazetteî, no. 43/2004, hereinafter: Law), Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan (ìRS Official Gazetteî, no. 78/2004), before maturity, and the maximum amount to which persons are entitled in order to pay certain costs referred to in
Article 11, paragraph 1 of the Law.
Article 2
Persons with their claims established subject to the regulation referred to in Article 8, paragraph 2 of the Law and converted into bonds as defined in Article 12, paragraph 1 of the Law (hereinafter: entitled persons) shall be entitled to redemption of the bonds referred to in Article 1 hereof (hereinafter: bonds) before maturity for the purpose of paying certain costs.
Article 3
An entitled person may redeem the bonds before maturity, with the application of a discount rate of 2% annually, for personal purposes or for those of close family members (spouse, parents, children, brothers and sisters) in order to pay for certain costs incurred since the day of entry into force of the Law, such as:

1. costs of medical treatment in the country ñ based on medical specialistís report, with
   diagnosis of illness and opinion on the necessity of medical treatment and certified bills of the competent health institution;
2. costs of treatment abroad for the illnesses that cannot be treated in the country ñ based
   on medical specialistís report, with diagnosis of illness and opinion on the necessity of medical treatment, certificate of the republic health authority that certain illnesses cannot be treated in the country and bill of the health institution abroad;
3. costs of purchasing medicines and orthopedic aids in the country ñ based on medical
   specialistís report, with diagnosis of illness and opinion on the necessity to purchase

medicines and orthopedic aids, certified bills of a pharmacy or another legal entity registered to engage in the purchase and sale of medicines and orthopedic aids;
4) costs of purchasing medicines and orthopedic aids which are not produced or sold in
the country abroad ñ based on medical specialistís report, with diagnosis of illness and opinion on the necessity to purchase medicines and orthopedic aids, certificate of the republic health authority that a particular medicine and orthopedic aid is not produced or sold in the country and the bill of the competent institution abroad;
5) funeral costs ñ based on the death certificate, and certified bills of the competent
institution or an independent commercial business, if in the place of residence of the entitled person there is no institution with legal entity status registered to provide funeral services ñ up to EUR 500 in dinar equivalent value. If certified bills are not enclosed, the payment will be made against the death certificate ñ up to EUR 250 in the dinar equivalent value. For the costs referred to in paragraph 1, indents 2) and 4) hereof, the entitled person residing abroad shall not be required to obtain the certificate referred to in these indents. The payment made in respect of the costs referred to in paragraph 1, indents 1) to 4) hereof shall amount up to the level of actual costs, against the enclosed bill, in the case of refund of already paid costs, or up to the level of the amount specified in the pro-forma invoice, if payment is effected by transferring funds to the account of the competent organization or institution. All costs referred to in paragraph 1 hereof shall be paid against original documentation.
Article 4
The funds for the redemption of bonds before maturity for the purpose of paying certain costs referred to in Article 3 hereof shall be provided by the Republic of Serbia by making a payment to the credit of a special account opened with the National Bank of Serbia for these purposes.
Article 5
The payment of costs established hereunder shall be effected through the bank referred to in Article 12 of the Law, or banks (hereinafter: bank) which maintain securities accounts of the entitled persons within their securities accounts with the Central Securities Depository and Clearing House a.d. Beograd (hereinafter: Central Securities Depository).
Article 6
For the purpose of paying the costs referred to in Article 3, paragraph 1 hereof, the entitled person shall submit an application to the bank with prescribed documentation.

The bank shall check whether the applicant is the entitled person, check the balance in its securities account and perform control of the submitted documentation, in line herewith.
Article 7
After performing the foregoing control, and for the purpose of making payments based on applications fulfilling the conditions specified herein, the bank shall submit to the National Bank of Serbia ñ Monetary System and Policy Department ñ Division for Monitoring Foreign Currency Savings, Belgrade (hereinafter: Division) requests for the transfer of dinar or foreign currency funds for the payment of bonds of the Republic of Serbia before maturity, in the Form 1 ñ Request for the transfer of dinar funds for the payment of bonds of the Republic of Serbia before maturity, or Form 2 ñ Request for the transfer of foreign currency funds for the payment of bonds of the Republic of Serbia before maturity, which are enclosed herewith and constitute an integral part thereof. Along with the requests referred to in paragraph 1 hereof, the bank shall also submit a signed representation that the documentation of the entitled person entirely meets all conditions specified herein, in the Form 3, enclosed herewith and constituting an integral
part thereof.
Article 8
The bank shall number the request for the transfer of dinar funds and the request for the transfer of foreign currency funds referred to in Article 7 hereof in a chronological order starting from number 1 with the letter index D (1D, 2D, 3DÖ) or E (1E, 2E, 3E), respectively, until the end of the payment period.
Article 9
On the basis of the requests referred to in Article 7 hereof, the National Bank of Serbia shall transfer the funds for bond payment from a special account referred to in Article 4 hereof to the bank.
Article 10
The National Bank of Serbia shall transfer dinar funds to the bank by transferring such funds to a commission account opened with the National Bank of Serbia, or transfer foreign currency funds to a foreign currency account of the bank abroad, or the bank shall receive foreign cash, which it shall specify in its request.
Article 11
The bank shall effect bond payment at a discounted value, as defined in Article 3, paragraph 1 hereof, in foreign currency or the dinar equivalent value by applying the purchase exchange rate for foreign currency based on the exchange rate list of the National Bank of Serbia for foreign currency valid at the time of payment.

Article 12
The data on individually performed bond payments to entitled persons before maturity shall be submitted electronically by the bank to the Central Registry, in line with the data transfer specification.
Article 13
The bank shall submit to the National Bank of Serbia data on effected bond payments before maturity in order to account for dinar or foreign currency funds transferred as defined herein, in line with data content from Forms 4 and 5, enclosed herewith and constituting an integral part thereof.
Article 14
A new request for the transfer of dinar or foreign exchange funds shall be submitted by the bank to the National Bank of Serbia, after accounting for the funds transferred on the basis of a previous request.
Article 15
If the bank fails to pay the full amount of dinars or euros based on the previous request, it shall be required to list the names of entitled persons to which no payment was made (if the person has waived the payment, or the bank has been unable to contact the person, etc.) in the new request for the transfer of funds. In the new request, the bank will specify the amount of funds necessary for payment in respect of that request, notifying however that the amount of unpaid funds in respect of the previous request should be subtracted from the former amount.
Article 16
The bank shall submit a monthly report on effected bond payments to the Division, in the Form 6, enclosed herewith and constituting an integral part thereof.
Article 17
All transactions related to bond payments before maturity ñ the opening of special accounts, keeping records of funds payment, sale, purchase and conversion of foreign currency funds, transfer of funds to banks, monitoring the frequency of bond payment, bookkeeping records of changes and other transactions as defined herein, in the name and for the account of the Republic of Serbia, shall be performed by the National Bank of Serbia subject to Article 61 of the Law on the National Bank of Serbia (ìRS Official Gazetteî, no. 72/2003 and 55/2004).

For the purpose of performing the transactions referred to in paragraph 1 hereof, the Ministry of Finance and the National Bank of Serbia shall conclude an agreement.
Article 18
This Decree shall enter into force on the next day following its publication in the ìOfficial Gazette of the Republic of Serbia.î _________________________________________________ AUTHORIZED BANK REGISTRATION NUMBER AND NAME Form 1 REQUEST no. ___________ D FOR THE TRANSFER OF DINAR FUNDS FOR THE PAYMENT OF REPUBLIC OF SERBIA BONDS BEFORE MATURITY issued subject to the Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan ("RS Official Gazette", no. 78/2004) No. Name and surname of entitled persons Date of request submission Basis of payment Amount of funds necessary for payment in dinars

1. 2. 3. 4. 5.

TOTAL DINARS: ____________

Please effect the transfer of dinar funds for the payment of bonds before maturity.

Transfer the funds to the account no.:

---

---

(reference number)

Date: __________________ Bank stamp and signatures of

authorized persons

_________________________________________________ AUTHORIZED BANK REGISTRATION NUMBER AND NAME Form 2 REQUEST no. ___________ E FOR THE TRANSFER OF FOREIGN CURRENCY FUNDS FOR THE PAYMENT OF REPUBLIC OF SERBIA BONDS BEFORE MATURITY issued subject to the Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan ("RS Official Gazette", no. 78/2004) No. Name and surname of entitled persons Date of request submission Basis of payment Amount of funds necessary for payment in euros

1. 2. 3. 4. 5.

TOTAL EUROS: ____________

Please effect the transfer of foreign currency funds for the payment of bonds before maturity.

The transfer in respect of this request is to be effected:

1. By receiving foreign cash (the amount in euros shall be rounded to the
   smallest-denominated paper banknote ñ 5 euros)
2. By transferring funds to the foreign currency account of the bank abroad ñ
   name of the bank and account number __________________ (Specify the method of funds transfer)

Date: __________________ Bank stamp and signatures of authorized persons

_________________________________________________ BANK REGISTRATION NUMBER AND NAME Form 3

REPRESENTATION
"Under full responsibility, and with the obligation to indemnify any damages incurred through unauthorized use of funds, we hereby represent that all applications and documentation of the entitled person, for which request no. _____ of _____ for the transfer of funds for bond payment before maturity in the amount of ___________ is submitted, in all respects meet the conditions stipulated by the Decree ÖÖ. (ìRS Official Gazetteî, no.). Date: ______________ Bank stamp and signatures of authorized persons

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BANK REGISTRATION NUMBER AND
NAME
Form 4

SPECIFICATION*
OF EFFECTED PAYMENTS OF THE REPUBLIC OF SERBIA BONDS BEFORE MATURITY IN THE DINAR EQUIVALENT VALUE issued subject to the Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan (ìRS Official Gazetteî, no. 78/2004) AS OF ________________

BOND MATURITY
NOMINAL BOND
VALUE

• IN EUR -
  DISCOUNTED
  BOND VALUE
  IN EUROS
  (paid in CSD)
• in EUR￾PURCHASE
  EXCHANGE
  RATE /NO.
  OF NBS
  EXCHANGE
  RATE LIST
  DINAR
  VALUE
  OF
  PAID
  BONDS
• in CSD

1 2 3 4 5 (3x4)

TOTAL:

Date: __________________

• Specification is compiled separately for each maturity date (31 Aug 04; 31 Aug
  05;.........)

__________________________________ Form 5
BANK REGISTRATION NUMBER AND NAME

SPECIFICATION*
OF EFFECTED PAYMENTS OF REPUBLIC OF SERBIA BONDS BEFORE MATURITY IN FOREIGN CURRENCY

issued subject to the Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan ("RS Official Gazette", no. 78/2004) AS OF___________________

BOND MATURITY
NOMINAL
BOND VALUE

• IN EUR -
  DISCOUNTED BOND
  VALUE IN EUROS
  (paid in euros)
• in EUR￾1 2 3

TOTAL:

Date: ___________

• Specification is compiled separately for each maturity date (31 Aug 04; 31 Aug 05;....)

___________________________________________ Form 6 BANK REGISTRATION NUMBER AND NAME REPORT

ON EFFECTED PAYMENTS OF REPUBLIC OF SERBIA BONDS BEFORE MATURITY issued subject to the Decision on Issuing Republic of Serbia Bonds for the Purpose of Regulating Obligations in Respect of the Economic Development Loan ("RS Official Gazette", no. 78/2004)

for the month of ______________200...

BOND
MATURITY
OVERALL
NOMINAL
BOND
VALUE (from specifications)

• in EUR -
  DISCOUNTED
  BOND VALUE
  (paid in EUR from specifications)

• in EUR -
  DISCOUNTED
  BOND VALUE
  (paid in CSD from specifications)

• in EUR -
  DINAR
  VALUE OF
  PAID BONDS
  (from specifications)
  TOTAL
  DISCOUNTED
  VALUE OF
  PAID BONDS

• in EUR -
  1 2 3 4 5 6 (4+3)

31 Aug
2004
31 Aug
2005
31 Aug
2006
31 Aug
2007

TOTAL:

Date: __________________ Bank stamp and signatures of authorized persons