Conversion of CHF loans

Notice on Compliance with the Provisions of the Act on Amendments to the Consumer Credit Act (Official Gazette no. 102/2015)
We hereby inform borrowers with loans denominated in CHF and in HRK with a currency clause in CHF and persons participating in relevant loan operations on the side of debtors of the following:

• In fulfilment of legal obligations under Article 19.e of the Act on Amendments to the Consumer Credit Act (Official Gazette no. 102/2015) ("the Act"), Zagrebačka banka d.d. ("the Bank") from this day, 12 November 2015, has started with the delivery of registered mail packages that contain documents prescribed under the Act. 
• Due to the extremely large number of packages that are sent via registered mail with a return receipt pursuant to the Act, not all clients will receive the package on the same day. 
• On 14 November 2015, the Bank will fulfil the legal obligation of providing information under Article 19.d of the Act and allow clients to check the calculation of the conversion by publishing a calculator and the prescribed documents on its website. 
• For the delivery of packages, the Bank uses the last known address of the clients and once again draws the attention of the clients to their contractual obligation under which they should inform the Bank of any change of address for the delivery of documents. 
• The Bank draws the attention of the clients to the extensiveness of the documents included in registered mail packages and to the prescribed statutory period of 30 days from the receipt of the packages during which they can thoroughly study the delivered documents in order to make an informed decision. The package also includes the form of the Notice of Acceptance of Conversion Calculation which, in the event of acceptance of conversion calculation, the borrower can use and submit to the Bank in accordance with the Act. 
• Pursuant to Article 19.f of the Act, clients who choose to accept conversion, regardless of the date of conclusion of the amended loan agreement, shall settle their obligations based on the instalment/annuity for October 2015 in line with the repayment schedule valid before the conversion, with 15 December 2015 as the deadline for orderly payment of the monthly obligation for November 2015. 
• Based on the recorded response of clients to conditions of the conversion stipulated by the Act, organised by the branches in which individual agreements were concluded, the Bank will individually invite clients in an organised manner to conclude an amended agreement, starting from 1 December 2015, in order to ensure the fulfilment of the obligations prescribed by the Act for all its other clients as soon as possible and ensuring the required quality and prompt service. 
• For clients who for any reason do not accept the package with the calculation of conversion and other prescribed documents within a period which will allow them to thoroughly study the delivered documents and inform the Bank about their decision in the prescribed manner even before 1 December 2015, we draw attention to the fact that the period of 30 days for their decision on the acceptance of conversion shall not begin from the date on which the Bank delivered the prescribed mail package, nor from the date of publication of the calculator and prescribed documents on the Bank's website, but from the date of receipt of the prescribed mail package, pursuant to Article 19.e, paragraph (5) of the Act. 
• Regardless of the delivery date of the Notice on Acceptance of Conversion within the deadline stipulated by the Act, and regardless of the date of conclusion of the amended loan agreement, all loan repayment obligations of all clients shall be calculated pursuant to the Act in the same way, according to the balance on 30 September 2015, and all further payments possibly made in the meantime, in line with the repayment schedule in force prior to the conversion, shall be deemed as overpayment in favour of the borrower pursuant to Article 19.f of the Act.