Regulatory Alerts2013-03-28 | FPR/DIR/GEN/CIR/03/002Circular to All Banks and Discount Houses: The Revised Guide to Bank Charges
The disclosure requirements for various bank products are as follows: 1. **Term Loans**: Disclosures should include loan purpose, itemization of amount financed, annual percentage rate (APR), variable rate information, payment schedule, prepayment terms, late payment policy, collateral requirements, insurance requirements, repayment terms, and loan tenure requirements. 2. **Overdrafts**: Disclosures should include loan purpose, overdraft limits, APR, variable rate information, late payment policy, collateral requirements, insurance requirements, repayment terms, and loan tenure requirements. 3. For contingent liabilities, the disclosure requirements are dependent on the specific product: - **Bid Bonds**: Offer letter stating all terms and conditions, placement of funds in an investment account at an agreed rate (if customer provides cash), or agreement on a rate (if bank provides funds). - **Performance Bonds**: Offer letter stating all terms and conditions based on risk assessment. - **Advance Payment Guarantees**: Offer letter stating all terms and conditions, specifically utilization of proceeds to be received. Also, the appointment of a quantity surveyor/expert is required. - **Bank Guarantees**: Offer letter stating all terms and conditions, specifically when risk crystallizes, and move funds into an investment account if customer provides funds. - **Indemnities**: Offer letter stating all terms and conditions, specifically when risk crystallizes.