Translation from Lithuanian Translation from Lithuanian GOVERNMENT OF THE REPUBLIC OF LITHUANIA R E S O L U T I O N No.451 On the Approval of the Procedure of Formation, Management and Use of Resources of Non-Profit Organization Housing Credit Foundation Vilnius, 12 April 1996 The Government of the Republic of Lithuania r e s o l v e s: 1. To approve the Procedure of Formation, Management and Use of Resources of Non-Profit Organization Housing Credit Foundation (attached). 2. To give a permission for the Non-Profit Organization Housing Credit Foundation to use 200 thousand litas, assigned from the state budget of Lithuania for this purpose, for the establishment of authorised capital of this foundation. 3. To recognize as invalid paragraph 1 of Resolution No. 1209 "On the Procedure of Crediting Residential Premises, Dwelling Renovation and Thermal Insulation" adopted on 11 September 1995 by the Government of the Republic of Lithuania (Records, 1995, No. 76-1777, 1995); Prime Minister Mindaugas Stankevièius Minister of Construction Aldona Baranauskienë and Urban Development APPROVED by Resolution No. 451 of 12 April 1996 of the Government of the Republic of Lithuania Procedure of Formation, Management and Use of Resources of Non-Profit Organization Housing Credit Foundation 1. The non-profit organization housing credit foundation (hereafter referred to as "foundation”) shall be allocated for thermal insulation of single-family and multi-family apartment houses, dwellings and buildings for social purposes and (
- or)renovation in terms of energy saving (hereafter referred to as thermal insulation and (
- or)renovation), crediting of the construction of pilot-project houses. 2. The foundation resources shall consist of: 2.1. budget resources; 2.2. contributions of legal and natural persons, support funds; 2.3. technical assistance funds; 2.4. resources allocated by domestic and external financial funds; 2.5. foreign loans; 2.6. funds received from other external sources. They shall be used in full compliance with the conditions of proper use of these funds upon coordination with external financial sources; 2.7. interests received on: 2.7.1. credits extended; 2.7.2. time deposits in accounts wherein unused fund resources are kept; 2.8. late payments for credits not repaid in time; 2.9. fines as laid down in the agreements for credits misused; 2.10. the amount for credit repaid, which was extended from the state budget of Lithuania for thermal insulation and (
- or)renovation for single-family and multi-family apartment houses, dwellings and buildings for social purposes, financing of construction of pilot-project houses; 2.11 other resources legally obtained. 3. The foundation resources shall be managed according to the procedure established in the regulations of the said fund. 4. The procedure of receipt, allocation, and return of external loans received on behalf of the state of Lithuania and those taken upon the guarantee of the Government of the Republic of Lithuania shall be regulated by other legal acts of the Republic of Lithuania. These loans may be repaid and interests may be paid from the resources allotted to the fund. 5. The foundation, in the process of handling resources: 5.1. by way of competition shall select banks through which crediting of thermal insulation and renovation of single-family and multi-family apartment houses, dwellings and buildings for social purposes, construction of pilot-project housing is foreseen, if not otherwise agreed with creditors; 5.2. shall establish the interest rate for the credits provided, their repayment procedure and other terms of credit return; 5.3. shall conclude with bank-winners of competition contracts on utilization of credits received and their repayment terms, if not otherwise agreed with creditors; 5.4. shall conclude loan servicing agreements with banks servicing the foundation, in case they refuse to be committed to the repayment of the extended credits and payment of the interest rate, if not otherwise agreed with creditors; 5.5. in cooperation with banks shall adopt decisions on allocation of credits for financing specific projects according to project selection criteria set by the foundation. 6. Credits are extended: 6.1. to single-family house owners; 6.2. to associations of multi-family apartment owners; 6.3. to owners of multi-family apartment houses; 6.4. to owners of buildings for social purposes (health care and educational purposes). 7. Credits are extended with the aim to: 7.1. clad thermal insulation and (
- or)renovate houses, dwellings, buildings, and some parts of their structures; 7.2. update engineering facilities of residential premises, buildings for social purposes; 7.3. reconstruct houses with the intention to save energy (including installation of premises in attics in case of a pitched roof); 7.4. construct pilot-project houses (in order to test new construction materials saving warmth, to test design, engineering facilities, technology). 8. Credits are extended under the following conditions: 8.1. credits with 10 year maturity are extended for thermal insulation and (
- or)renovation of single-family houses and multi-family apartment houses, apartments and buildings for social purposes, and for construction of pilot-project houses. They cannot exceed 90 per cent of thermal insulation and (
- or)renovation price; 8.2. the amount of the credit extended cannot exceed: 8.2.1. 500 Lt. for 1 sq. meter of general floor area to cover thermal insulation and (
- or)renovating expenses for one flat of a multi-family apartment house; 8.2.2. 300 Lt. for 1 sq. meter of general floor area to cover thermal insulation and (
- or)renovating expenses for one flat of a single-family house; 8.2.3. in case of construction of pilot-project house (in respect to energy-saving): 8.2.3.1. 1000 Lt. for 1 sq. meter of general floor are in case of construction of a single-family house; 8.2.3.2. 900 Lt. for 1 sq. meter of general floor area (including premises in attics under a pitched roof) of one flat in case of construction of multi-family apartment house; 8.2.4. 500 Lt. for 1 sq. meter of general floor area to cover thermal insulation and (
- or)renovating expenses in case of buildings for social purposes; 8.3. when credit is extended to the association of owners of multi-family apartment house, and owners of a multi-family apartment house fail to approve unanimously the decision on the acceptance of credit adopted by the members and (
- or)representatives of association at their meeting, the amount of the credit should be calculated in the way that its repayment and interests could be covered from the resources received from the amount, which was needed to pay for 1 sq. meter of general floor area prior to thermal insulation and (
- or)renovation, subtracting the amount which would be needed to pay for 1 sq. meter of general floor area after the completion of thermal insulation and (
- or)renovation; 8.4. credits for thermal insulation and (
- or)renovation of single-family and multi-family apartment houses, dwellings and buildings for social purposes shall be extended, if projects developed meet the criteria established by the fund; 8.5. projects on thermal insulation and (
- or)renovation of buildings should contain calculations showing economic feasibility of the works to be carried out and purposefulness of the credit; 8.6. pilot-projects of construction of residential houses shall meet the requirements according to which these houses are assigned as pilot-project houses, and for which a reference document is needed from the committee on the construction of the pilot-project residential houses; 8.7. credits for thermal insulation of single family houses or their renovation are extended only upon the conclusion of agreements ensuring the implementation of duties. 9. Associations of owners of multi-family apartment houses shall repay the credit received from the foundation by using for that purpose special contributions paid by owners of multi-family apartment house and other recourses of the association. Owners of multi-family apartment houses may pay special contributions, designated for thermal insulation of houses or their renovation, to the association in one of the following ways: 9.1. by paying special contributions to the account of the association according to the order and terms established by the decision of association members (representatives) at their meetings; 9.2. by paying the association for the heating energy according to the tariffs for 1 sq. meter of heating area as established by the Government of the Republic of Lithuania for the whole term of repayment of the credit taken by the community. The provision of Resolution No. 998 "On the Order of Compensation of the Expenses for Heating Residential Premises and Hot Water for Families with Low Income " (Records, 1995, No. 61 - 1542) adopted by the Government of the Republic of Lithuania on July 20, 1995, shall be applied to families with low income. 10. The association of a multi-family apartment house upon receiving the credit for thermal insulation or renovation of the house shall pay for the actual consumption of heating energy to enterprises supplying heating energy. Interest is paid and the credit is repaid from the recourses received from the amount, which had to be paid for 1 sq. meter of the general floor area prior to thermal insulation or renovation of the house, subtracted from the sum, which has to be paid for 1 sq. meter of the general floor area after the completion of thermal insulation or renovation of the house. 11. The repayment of the extended credit shall start upon the completion of thermal insulation of a single-family house or multi-family apartment house, a dwelling or a building of social purposes or upon the construction of a pilot-project house, but not later than 2 years after the conclusion of the loan agreement. 12. If it is established that the extended credits are used not according to the purpose or violating other conditions fixed in the loan agreement, banks servicing the foundation may apply sanctions established by laws and agreements. __________________________