Lorem ipsum dolor sit amet, conse ctetur adipisicing elit, sed do eiusmod tempor incid idunt ut.
PROPOSAL REQUEST
Process:
The Tenant submits a formal request, which is to be accompanied by the Bank’s sanction letter.
An initial deposit of €1,200 is paid and proof of payment provided.
Upon receipt of the two items above a due diligence (including Financial) process is triggered.
This process includes but is not limited to:
The confirmation that the emphyteuta has a valid emphyteutical deed
Internal confirmation that tenant is compliant with all terms of their contract with INDIS (payments, use, insurance, employees, maintenance, etc)
No pending issues exist with INDIS or any other Government department or entity including, but not limited to the Commissioner for Revenue or Malta Enterprise.
The confirmation that the Emphyteuta has no other property which can be used as collateral.
Vetting of the sanction letter.
Analysis of the Business Plan provided to the Bank pursuant to the granting of the bank facilities and of the latest audited financial statements and managment accounts.
The vetting of the valuation of the premises showing its (or future if new development) current market value.
Applicable one-time fee
The premium to be paid by the emphyteuta for the collateral shall be a one-time fee which is composed from the interest rate charged by the respective Bank minus a % on the approved limit which shall be calculated as below:
The interest rate charged by the respective Bank minus 200 basis points or 2% should be applied when using INDIS property as collateral for upgrading the premises or buying machinery to increase productivity.
The interest rate charged by the respective Bank minus 150 basis points or 1.5% should be applied when using INDIS property as collateral for an overdraft facility.
The interest rate charged by the respective Bank minus 125 basis points or 1.25% should be applied when using INDIS property as collateral for other approved purpose.
OR
As established within the terms and conditions of the existing contract. Normally, 1.50% charge based on the remianing Ground rent payments. It is worth noting that before the charge is applied the deed is vetted for such conditions.
The Emphyteuta is required to affect the payment of the premium in accordance with the applicable methodology as referred to above upon issuance of approval from INDIS.
More information can be obtained by contacting us on [email protected]
