Loan Terms

and Conditions
for Overdraft
Loans
Effective as of
1 January 2014

LOAD TERMS AND CONDITIONS FOR OVERDRAFT LOANS

Part I/ Introductory Provisions
(1) Loan Terms and Conditions for Overdraft Loans (the Loan
Terms and Conditions) stipulate binding rules for overdraft
loans granted by Sberbank CZ, a.s., Co. Reg. No. 25083325,
registered in the Commercial Register with the Municipal
Court in Prague, File No. B 4353 (the Bank) to its clients
consumers (the Applicant/Client) upon an application
for overdraft loan (the Application).

Part II/ Entering into Agreement

(1) If the Application is a new Application (i.e. if the Client does
not apply for increasing an existing overdraft loan granted
by the Bank), the Application is the Applicants offer to
the Bank to enter into an overdraft loan agreement (the
Agreement) pursuant to Section 2395 et seq. of Act No.
89/2012 Sb., the Civil Code, as amended (the Civil Code).
(2) If the Application is an Application to increase an existing
overdraft loan granted by the Bank (i.e. if the Client does
not apply for a new loan), the Application is the Applicants
offer to the Bank to amend the Agreement (the Amendment). If, in the Application for an increase, there are
several parameters of the loan that deviate from the original provisions of the Agreement, the Agreement is amended in the event the Application is accepted by the Bank so
that it applies for the Agreement even for an increase in the
renegotiated provisions (in particular: if the agreement
on interest rate differs, the new interest rate on the funds
provided under the Agreement apply even to funds provided to increase the original loan).
(3) The Bank is in no way legally bound by the Application under
Paragraphs 1 and 2 hereof; the Application does not qualify
the Client for a loan or an increase in it. The deadline for the
Bank to accept the draft Agreement is 30 (thirty) calendar
days, and the draft Agreement expires upon the lapse of this
period. The Client may obtain information on the status of
his Application on the Banks toll-free Infoline 1 (one) business day after submitting the Application.
(4) If the Bank accepts the Application, it sends a letter of acceptance to the Applicants address stated in the Application. The acceptance letter in particular confirms acceptance of the Application and states the loan requisites. The
Client agrees that the Bank may accept the Application
and grant the Client a loan amount lower than specified
in the Application. The Client is always notified by the Bank
about such acceptance in advance; the Client may refuse
such decision. The Bank only informs the Applicant of having rejected the Application if the loan is not provided due
to the results of a search in a database enabling assessment
of the Applicants creditworthiness. In such case, the Bank
informs the Applicant of this outcome and provides him
data from the database used at the Banks discretion by
sending an email / text message to the email address /
telephone number stated by the Applicant in the Application or, if he did not provide an email address / telephone
number, by sending a written notification to the Applicants mailing address.
(5) The Agreement/Amendment is entered into upon delivery
of the acceptance letter to the Applicant. The acceptance
letter is sent to the Applicant by registered mail. If the
mail is returned as undelivered, the effects of delivery
come into force on the day upon which the mail was returned to the Bank as undelivered. The Client agrees that

Effective as of 1 January 2014

the date of utilising the loan under the Agreement may be

the day the acceptance letter was sent by the Bank.

Part III/ Information Obligation and Rights and

Obligations
(1) The Client has to inform the Bank immediately of any
change in the data stated in the Application (mainly name
and surname, permanent and mailing address, etc.) and to
submit documents evidencing such changes upon request.
If there is any doubt about the validity of the data stated
in the Application, the Bank is also entitled to have relevant
documents submitted. In addition, the Bank may require
that the Client submit documents, certificates or acknowledgments issued by third parties, public authorities or
authorised institutions related to the Client or his property
and proving the facts claimed by the Client or required by
the Bank within a reasonable time. Failure to submit such
required documents is considered to constitute a breach
of the Agreement under Part VII/ Paragraph 1(a) hereof and
establishes the Banks right to require these documents,
certificates or acknowledgments on behalf of and at the
expense of the Client, whereby the Client explicitly authorises the Bank to do so.
(2) The Client undertakes to inform the Bank without undue
delay about any developments and facts that could (even
in the future) have a substantially adverse impact on his
financial situation, especially if these could result in an increase in the risk of default of his duties and obligations to
the Bank; for example, deterioration of his financial situation, insolvency, motion to commence bankruptcy proceedings, a writ of distraint against his assets, as well as
any legal or administrative proceedings that may impose
substantial payment obligations on the Client.
(3) The Client represents and warrants that he is aware of the
value of performance provided to the Client by the Bank
under the Agreement. The Client further explicitly waives
his right to claim the termination of the Agreement and
restoration of the rights.
(4) The Bank may assign its rights and obligations ensuing from
or in connection with the Agreement to any third party.
The Client gives his explicit consent thereto. The Client may
assign his rights and obligations ensuing from or in connection with the Agreement to any third party only subject to the previous approval of the Bank.
(5) The Bank is not obliged to accept any payment from any
party other than the Client.

Part IV/ Interest Rate and Payment Currency

(1) The interest on an overdraft loan granted by the Bank is
borne at the rate specified in the Application. However,
the Bank may change the interest rate in view of changes
in the financial market and banking services market, its
business policy or legislative changes. The current interest
rate is always announced by the Bank in the Interest Rate
Conditions. The Bank notifies the Client of a new interest
rate in writing at least 2 (two) months prior to the day the
amended interest rate should become effective. The notification is transmitted by the Bank together with the current account statement or as a separate notification sent
to any of the contact details provided in the Application.
The Bank publishes the new rate on its website. If the Client disagrees with the new interest rate, he may terminate
Page 01 of 05

LOAD TERMS AND CONDITIONS FOR OVERDRAFT LOANS

the Agreement free of charge and with immediate effect.
The notice of termination must be made in writing and
delivered to the Bank no later than the last day before the
announced change should take effect. The Client has to
settle his obligations to the Bank arising from the Agreement, including all interest and fees, as of the effective date
of his notice of termination.
(2) Unless explicitly agreed otherwise, the loan interest, interest, default interest, and unauthorised overdraft fees are
paid monthly, on the last banking business day of the respective calendar month.
(3) The loan interest, default interest, and unauthorised overdraft fees are calculated using the actual number of
days/360 convention.
(4) Any outstanding interest on the loan not paid by the Client
as of the due date is added by the Bank to the outstanding
principal.

Part V/ Loan Utilisation and Repayment

(1) Loan utilisation is understood as making debit transactions
from the current account specified in the Application (the
Current Account), i.e. withdrawals and transfers from
the Current Account if the Current Account does not have
enough funds. The Client may utilise the loan repeatedly,
up to an agreed amount. Parties authorised to transact
with the funds in the Current Account in question may
additionally utilise the overdraft loan in the name of the
Client, to the extent of their authorisation rights to the
Current Account. As the owner of the Current Account,
the Client has to familiarise these parties with the terms
and conditions of the Agreement and is liable for any
breaches committed by these authorised parties.
(2) Unless explicitly agreed otherwise, the Bank allows the
Client to utilise the loan as at the day upon which the Client
has fulfilled all agreed terms and conditions for utilising
the loan, including to document the establishment of security (if security for the loan was arranged by the Client).
The Client is not allowed to utilise the loan if such circumstances have arisen entitling the Bank to suspend/cancel
the loan utilisation under the Agreement and if the Bank
has exercised such entitlement.
(3) The loan is granted for an indefinite period and is due and
payable in a lump-sum instalment on the date of the termination of the loan. The Client may repay the loan under
the Agreement at any time free of charge.
(4) The Client undertakes to ensure a credit turnover in the
Current Account of at least 25% of the overdraft agreed
in the Agreement each calendar month throughout the
entire term of the Agreement. The turnover includes only
incoming payment transactions; transfers between the
Clients accounts at Sberbank CZ, transfers from accounts
opened by the Client with other banks, etc., are not included. A breach of this obligation is deemed a major breach.
(5) If the due date of any amount under the Agreement falls
on a day off or holiday, the amount is due and payable on
the next banking business day. However, if the due date
falls on the last day of the month and this day is a day off
or holiday, the amount is due on the last banking business
day for the month in question.
(6) Any payments under the Agreement (interest, fees for
overdraft loan services, etc.) are automatically offset by the

Effective as of 1 January 2014

Bank during repayment against the credit balance in the

Current Account of the Client, through which the overdraft
was granted. If there no sufficient funds in the Clients
Current Account to cover this offset, the Banks claim is
charged to the Current Account during repayment, resulting in an overdraft without the need of the Clients further
consent. Unless the above conditions for inclusion are met
or the Current Account does not have sufficient balance
available for utilising the loan, the Bank may remit the
amount due to the Clients Current Account. The resulting
unauthorised overdraft is subject to the interest rate for
unauthorised overdraft on current accounts. The Client has
to provide for sufficient funds in Current Account so that the
claims above can be offset or covered by the loan, thereby
preventing unauthorised overdraft from arising.
(7) Unless the Bank and the Client agree otherwise, any payments made by the Client as part of his obligations to the
Bank is credited first to the costs of the Bank, and subsequently to the bank fees charges, default interest, loan
interest, and finally to the principal balance (the amount
of utilised overdraft loan). If the Client is provided with
several loans with identical maturity dates, and if the Clients payment does not sufficiently cover all the loans, the
Clients payment is credited to the least secured obligation
according to the Banks discretion.
(8) The Client undertakes to ensure that the obligations arising from the Agreement are properly fulfilled until they
are repaid in full, at least equally with all other existing and
future obligations of the Client.

Part VI/ Costs and Payments

(1) The Bank charges fees for its services in accordance with
the valid List of Fees. The amount of fees may be changed
subject to the terms and conditions stipulated in Part Six/
Article IV of the General Business Terms and Conditions.
(2) Throughout the term of the Agreement, the Bank provides
the Client, regularly at appropriate intervals, the following
information in paper form or through other permanent
data carriers:
a) period to which the statement from the account relates;
b) amount and date of loan utilisation;
c) original balance from the previous statement and its
date;
d) new balance;
e) date and amount of payments made by the Client;
f)

applicable interest rate;

g) loan-related fees and charges paid for the given period;

and
h)

minimum amount to be paid by the Client.

Part VII/ Breach

(1) A breach is any circumstance that could result in a substantial change in the terms and conditions under which
the Agreement was entered into and that may, in the Banks
opinion, threaten the proper performance of the Clients
duties and obligations to the Bank, in particular:
a) The Client commits a material breach of any provision
of the Agreement and no other case of a breach occurs.

Page 02 of 05

LOAD TERMS AND CONDITIONS FOR OVERDRAFT LOANS

b) The Client commits a minor breach of the provisions
of the Agreement and fails to remedy the situation
within 15 (fifteen) days from having been notified
thereof by the Bank, provided no other case of a breach
occurs.
c) The Client breaches any other contractual or other
legal obligation to the Bank or a third party, and is
indefault in fulfilling this obligation for a period exceeding 15 (fifteen) days.
d) The Bank discovers circumstances that may threaten
the loans repayment to the Bank (especially considerable deterioration of the Clients financial situation,
the Clients inability to pay, impending insolvency proceedings or liquidation, distraint order, etc.).
e) During the loan approval process, the Client failed to
inform the Bank of circumstances that could result
in an increased risk as to repayment of the loan, or
provided the Bank with untrue, distorted or incomplete information.
f) The Client is in default in making any payment for
aperiod exceeding 14 (fourteen) days.
(2) If a breach occurs, the Bank may undertake one or more
of the following measures at its discretion:
a) declare due, in full or in part, the entire remaining
amount of all loans and related charges and interest,
enumerated as at the day stated in the declaration,
regardless of the agreed period of the loan and its repayment; the Client has to repay this amount due and
related charges and interest within 15 (fifteen) days
from the declarations delivery;
b) block funds on all the Clients current or time (deposit)
accounts maintained by the Bank;
c) require additional loan security;
d) limit or fully suspend the utilisation of loans;
e) withdraw from the Agreement the withdrawal is
effective upon delivery of the notice of withdrawal to
the Client; the Client has settle his obligations to the
Bank under the Agreement, including all interest and
fees, within 15 (fifteen) days from the day of receipt of
the notice;
f) claim a contractual penalty pursuant to Section 2048
et seq. of the Civil Code of CZK 50,000 (fifty thousand) for each breach of the Agreement; the Banks
right to claim damages is not affected thereby;
g) cancel the provision of the loan for any part of the loan
not yet drawn; the cancellation notice is effective on
the day of its delivery to the Client;
h) increase the interest on the loan agreed in the Agreement up to an amount corresponding to the rate for
unauthorised overdrafts on current accounts, agreed
in the List of Fees; and
i)

take other legal measures regulations (as the case

might be).

(3) The Bank informs the Client in advance about terminating

its authorisation to utilise the loan and the reasons for such
termination or, if not possible to do so, without undue delay after such circumstance arises.
(4) The Bank may set off any due claims against the Client (and,
if a breach occurs, then even future claims) arising from or
in connection with the Agreement against the due (and

Effective as of 1 January 2014

future) claims of the Client against the Bank; in particular,

against claims from any payments made by the Bank in
favour of the Client, Clients deposits with the Bank, any
positive balance on any account of the Client maintained
by the Bank in any currency, or outstanding claims of the
Client against the Bank arising from any title and in any
currency.
(5) The Bank may use the funds in the Clients Current Account
to set off any costs incurred in connection with the establishment, maintenance and termination of the loan under
the Agreement, in particular the fees specified in the valid
List of Fees, costs for expert opinions, legal representation,
bailiffs, administrative fees, notarial fees, including costs
incurred in connection with realising the security, etc.
(6) In case of the late repayment of loan instalments, the Bank
may, in addition to the agreed interest rate, charge interest
from the date of delay until the full payment of the outstanding amount at the rate corresponding to unauthorised
overdrafts for current accounts agreed in the List of Fees.
(7) Failure to abide by the agreed amount of overdrafts constitutes a breach of the Agreement whereby the Client has
to pay immediately the amount utilised above the agreed
level; otherwise, this amount is charged default interest
from the date of the unauthorised overdraft, at the rate
corresponding to unauthorised overdrafts for current accounts agreed in the List of Fees.

Part VIII/ Termination of Agreement

(1) Both parties may withdraw from the Agreement in writing
without stating a reason. The notice period is 1 (one) month
if the Agreement is terminated by the Client and 2 (two)
months if the Agreement is terminated by the Bank. The
notice period commences from the receipt of notice; no
new loans can be utilised during the notice period. The
Client has to settle his obligations to the Bank ensuing
from the Agreement, including all interest and fees, no
later than the effective date of termination.
(2) The Client may withdraw from the Agreement without
stating a reason within 14 (fourteen) days from having
entered into the Agreement. If the Agreement does not
contain the information stipulated in Section 6(1) of the
Consumer Credit Act, the withdrawal period does not end
earlier than 14 (fourteen) days after the Bank provides the
missing information to the Client. A notice of withdrawal
on the part of the Client must be made in writing, and the
withdrawal period is considered to be preserved if the
withdrawal notice is sent to the Bank in paper form or on
another permanent data carrier no later than on the last
day of the period. If the Agreement has been withdrawn
from according to this provision, the Client has pay to the
Bank the principal of the utilised loan as well as the interest
to which the Bank would be entitled, had the withdrawal
not occurred, for the period from the day when the loan
was drawn to the day when the Client repaid the principal,
and to do so without undue delay within 30 (thirty) days
from the day of sending the withdrawal notice to the Bank.
(3) If the Bank or a third party provides the Client with an additional service in connection with the Agreement under
a contractual relationship between the third party and
the Bank, the agreement on the additional service is also
terminated upon withdrawal from the Agreement. The
agreement for the current account on which the overdraft

Page 03 of 05

LOAD TERMS AND CONDITIONS FOR OVERDRAFT LOANS

loan has been arranged is deemed an additional service
and is cancelled upon withdrawal from the Agreement
only if:
a) The Client explicitly stated in the notice of withdrawal
from the Agreement that the impacts of the withdrawal should also concern the agreement for the
given current account. Or
b) No payment transactions were performed on the given
account prior to entering into the Agreement.

In other cases, the agreement for the given current account

is not deemed an additional service and the account is not
cancelled by the Clients withdrawal from the Agreement.

(4) Unless explicitly agreed otherwise, the Client has to settle

all of his obligations to the Bank incurred in connection
with granting the loan, including interest, fees, penalties
and other costs, no later than on the day the Agreement
terminates.
(5) In the event that the Current Account Agreement through
which the Bank granted the loan expires, this Agreement
expires and the overdraft is due and payable upon termination of the Current Account Agreement.
(6) If the Bank or the Client withdraws from the Agreement,
the obligation ceases to exist at the moment this withdrawal becomes effective

Part IX/ Final Provisions

(1) If any provision of the Agreement or part thereof is or becomes invalid or unenforceable, the remaining provisions
of the Agreement or parts thereof shall remain valid and
enforceable.
(2) The Bank may amend the Loan Terms and Conditions pursuant to Part Six/ Article IV (Changes to Terms and Conditions) of the General Business Terms and Conditions.
(3) The Client and the Bank have hereby explicitly agreed that
the rights of the Client and the Bank under the Agreement
are subject to the statute of limitation of 10 (ten) years.
(4) The terms defined in these Loan Terms and Conditions will
be used for the Application, unless it specifically states
otherwise.
(5) These Loan Terms and Conditions are executed in Czech and
English. In case of discrepancy between, the Czech version
prevails.
(6) These Loan Terms and Conditions are effective from
1 January 2014, replacing the Loan Terms and Conditions
of 15 August 2013.

Part X/ Important Agreements

The Client has properly understood these Loan Terms and
Conditions and in particular explicitly accepts the arrangements set forth in:
(1) Part III/ Paragraph 1 hereof, according to which failure
to submit required documents specified in Part III/ Paragraph is considered to constitute a breach of the
Agreement under Part VII/ Paragraph 1(a) hereof (Breach)
and establishes the Banks right to require these documents, certificates or acknowledgments on behalf of
and at the expense of the Client, whereby the Client
explicitly authorises the Bank to do so.

Effective as of 1 January 2014

(2) Part III/ Paragraph 2 hereof, according to which the Client

undertakes to inform the Bank without undue delay
about any developments and facts that could (even in the
future) have a substantially adverse impact on his financial situation, especially if these could result in an increase in the risk of default of his duties and obligations
to the Bank; for example, deterioration of his financial
situation, insolvency, motion to commence bankruptcy
proceedings, a writ of distraint against his assets, as well
as any legal or administrative proceedings that may impose substantial payment obligations on the Client.
(3) Part III/ Paragraph 3 hereof, according to which the Client
represents and warrants that he is aware of the value
of performance provided to the Client by the Bank under
the Agreement. The Client further explicitly waives his
right to claim the termination of the Agreement and
restoration of the rights.
(4) Part III/ Paragraph 4 hereof, according to which the Bank
may assign its rights and obligations ensuing from or in
connection with the Agreement to any third party. The
Client gives his explicit consent thereto. The Client may
assign his rights and obligations ensuing from or in connection with the Agreement to any third party only
subject to the previous approval of the Bank.
(5) Part V/ Paragraph 7 hereof, according to which unless the
Bank and the Client agree otherwise, any payments
made by the Client as part of his obligations to the Bank
is credited first to the costs of the Bank, and subsequently to the bank fees charges, default interest, loan interest,
and finally to the principal balance (the amount of utilised overdraft loan). If the Client is provided with several
loans with identical maturity dates, and if the Clients
payment does not sufficiently cover all the loans, the
Clients payment is credited to the least secured obligation according to the Banks discretion.
(6) Part V/ Paragraph 8 hereof, according to which the Client
undertakes to ensure that the obligations arising from
the Agreement are properly fulfilled until they are repaid
in full, at least equally with all other existing and future
obligations of the Client.
(7) Part VII/ Paragraph 1(a) hereof, according to which
abreach is understood to be a situation when the Client
commits a material breach of the Agreement and no
other case of a breach occurs.
(8) Part VII/ Paragraph 1(b) hereof, according to which
abreach is understood to be a situation when the Client
commits a minor breach of the provisions of the Agreement and fails to remedy the situation within 15 (fifteen)
days from having been notified thereof by the Bank,
provided no other case of a breach occurs.
(9) Part VII/ Paragraph 1(d) hereof, according to which
abreach is understood to be a situation when the Bank
discovers circumstances that may threaten the loans
repayment to the Bank.
(10) Part VII/ Paragraph 2(f) and (i) hereof, according to
which if a breach occurs, the Bank may claim a contractual penalty pursuant to Section 2048 et seq. of the Civil
Code of CZK 50,000 (fifty thousand) for each breach of
the Agreement; the Banks right to claim damages is not
affected thereby; or, as the case might be, take other
measures pursuant to law.

Page 04 of 05

LOAD TERMS AND CONDITIONS FOR OVERDRAFT LOANS

(11) Part VII/ Paragraph 4 hereof, according to which the Bank
may set off any due claims against the Client (and, if
a breach occurs, then even future claims) arising from or
in connection with the Agreement against the due (and
future) claims of the Client against the Bank; in particular, against claims from any payments made by the
Bank in favour of the Client, Clients deposits with the
Bank, any positive balance on any account of the Client
maintained by the Bank in any currency, or outstanding
claims of the Client against the Bank arising from any
title and in any currency.
(12) Part VII/ Paragraph 5 hereof, according to which the Bank
may use the funds in the Clients Current Account to set
off any costs incurred in connection with the establishment, maintenance and termination of the loan under
the Agreement, in particular the fees specified in the
valid List of Fees, costs for expert opinions, legal representation, bailiffs, administrative fees, notarial fees,
including costs incurred in connection with realising
the security, etc.
(13) Part IX/ Paragraph 3 hereof, according to which the Client
and the Bank have hereby explicitly agreed that the
rights of the Client and the Bank under the Agreement
are subject to the statute of limitation of 10 (ten) years.
(14) Part V/ Paragraph 4 hereof, according to which the Client
undertakes to ensure a credit turnover in the Current
Account of at least 25% of the overdraft agreed in the
Agreement each calendar month throughout the entire
term of the Agreement. The turnover includes only incoming payment transactions; transfers between the
Clients accounts at Sberbank CZ, transfers from accounts opened by the Client with other banks, etc., are
not included. A breach of this obligation is deemed a major breach.
(15) Part V/ Paragraph 6 hereof, according to which any payments under the Agreement (interest, fees for overdraft
loan services, etc.) are automatically offset by the Bank
during repayment against the credit balance in the Current Account of the Client, through which the overdraft
was granted. If there no sufficient funds in the Clients
Current Account to cover this offset, the Banks claim is
charged to the Current Account during repayment, resulting in an overdraft without the need of the Clients
further consent. Unless the above conditions for inclusion are met or the Current Account does not have sufficient balance available for utilising the loan, the Bank
may remit the amount due to the Clients Current Account. The resulting unauthorised overdraft is subject
to the interest rate for unauthorised overdraft on current accounts. The Client has to provide for sufficient
funds in Current Account so that the claims above can
be offset or covered by the loan, thereby preventing
unauthorised overdraft from arising.
(16) Part III/ Paragraph 5 hereof, according to which the Bank
is not obliged to accept any payment from any party
other than the Client.

Effective as of 1 January 2014

Page 05 of 05