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Instructions for amending the facilities granted in guarantees

Decisions

Instructions for amending the facilities granted in guarantees.

The Commercial Bank has issued instructions to amend the facilities granted in guarantees, which require amending the guarantee facilities provision to reach 4% bid bond and 8% performance bond, for new granting or increasing it.

As for guarantees issued with a provision of 15% and 25% or 10% and 50% remain the same until the cancellation of these guarantees, provided that the customer submits a request for an amendment to the provision, and the guarantees that will be issued after the date of the amendment decision shall be applied.

- In the event that the facilities in guarantees are not used, they shall not be reduced or canceled upon renewal or modification except at the suggestion of the branch manager or at the request of the client.

-The possibility of granting facilities in guarantees without the existence of tender contracts and without being bound by the maximum limit, not exceeding 100% of the net value of the offered guarantees, if the condition of having a commerce register that mentions the activity of contracting or engaging in tenders is fulfilled. In the event of the customer is a contractor, a document proving the degree of classification - not less than the second degree -of the contractor registered the Contractors’ Syndicate.

- The Branch Manager is granted the power to approve the issuance of temporary guarantees with a provision of 4% on an exceptional basis only within the limits of 10% of the value of the granted facilities of the guarantees and a ceiling of 10 million SP, provided that the customer submits a request to issue temporary guarantees with a provision of 4% within the limits of the 10% of the value of the granted facilities, using it in all facilities in guarantees.Or if the unused remaining balance of guarantees is not sufficient to issue the required temporary guarantee and the net value of the real estate collaterals after margin covers the used amount of guarantees in addition to the amount of the temporary guarantee, which issuance is required.

- The Branch Manager is granted the authority to extend a final guarantee to the customer whose facilities are due without returning to the Credit Directorate and issuing a temporary guarantee after the approval of the Credit Directorate according to the following conditions:

1. The request for renewal of customer facilities is pending by the General Administration.

2. The absence of any demand guarantee or any other obligations toward the customer.

3. Not exceeding the granted ceiling

4. The sufficiency of the duly provided real estate collateral to cover the granted amount.

Granting guarantees with provisions of 4% bid bond and 8% performance bond, with a guarantee of a fixed term deposit, provided that the customer undertakes in writing to mortgage the deposit to secure the granted guarantees, and authorizes the bank to liquidize it to pay his/her obligations towards the bank in the event of non-compliance with the terms of use of the facilities, provided that the values ​​of the granted guarantees do not exceed 90% of the value of the fixed deposits in Syrian pounds exclusively. The interest is calculated on the fixed deposit upon customer’s request at 5%. The maturity period is specified as a maximum of one year if the deposit is term deposit that is automatically renewed. But in the event that the deposit is not automatically renewed (i.e. a time deposit), the maturity date of the granted guarantees must due before the deposit's maturity date.

The commission for the indirect facilities is collected according to the instructions in force. Guarantees are granted, renewed and canceled by a term deposit guarantee in accordance with the powers of granting and renewing the facilities duly established.

When the granted guarantee facilities are canceled, the deposit will be unfixed, at the request of the customer, to cancel the facilities and unfix the deposit.