OREANDA-NEWS. December 20, 2010. Explanation of Certain Provisions of Requirements for Bonds Purchased under the Program of Vnesheconombank’s Investments in Affordable Housing Construction Projects and Mortgage Lending in 2010-2012.

Explanation of certain provisions of requirements for bonds including mortgage-backed bonds and mortgage coverage of bonds purchased under the Program of Vnesheconombank’s Investments in Affordable Housing Construction Projects and Mortgage Lending in 2010-2012 (herein after referred to as the Requirements):

Question: Is it possible to include credits (loans) to pay co-op shares in housing savings cooperatives in mortgage coverage of bonds issued under the Program of Vnesheconombank’s Investments in Affordable Housing Construction Projects and Mortgage Lending in 2010-2012 (herein after referred to as the Program)?

Answer: Inclusion of a mortgage loan into mortgage coverage, with the mortgage loan having been extended to the borrower to purchase housing by way of paying a co-op share in a housing savings cooperative will be in line with the Requirements in the case that a housing savings cooperative participated in constructing accommodations as a developer or as a participant in the participatory construction (investor), and the borrower, a member of a housing savings cooperative, has paid his co-op share in full using among other things a bank’s credits (as specified by para 5 of the Requirements), has become an owner of accommodation and pledged it as a mortgage collateral with a bank.

Question: What documents are required to confirm that a condition stating that there are no fees for creditors included in payments made in favor of insurance company (a final provision of subpara “d” of para 5 of the Requirements)?

Answer: In order to make a decision as to whether a mortgage coverage of bonds is in line with final provision of subpara “d’ of para 5 of the Requirements, a current creditor (lender) is only to submit a written application to the borrower that no fees paid by an insurance company in favor of the creditor (the lender) are included in payments made by the borrower for insurance services provided for by a credit agreement (loan agreement).

Question: Will a mortgage loan extended for purchasing real estate assets owned by joint stock investment funds and closed mutual investment funds be in line with the Requirements?

Answer: Inclusion of a mortgage loan extended to the borrower for purchasing accommodations owned by joint stock investment funds into mortgage coverage does not run counter to the Requirements. Inclusion of a mortgage loan extended to the borrower for purchasing accommodations owned by closed mutual investment funds into mortgage coverage will be fully in line with the requirements only in the case that all owners of investment shares of closed mutual investment funds are legal entities. For the purpose of confirmation, a managing company of a closed mutual investment fund is to submit an extract from a register of investment shares owners, which is maintained by a registrar or a special depository of a mutual investment fund responsible for maintaining registers for a period during which relevant agreements on purchasing/selling residential property were concluded.