Terms and Conditions

Terms And Conditions For Transactions With Correspondent Banks

Section I. Opening and maintenance of correspondent account

Opening and maintenance of correspondent accounts
1. Account opening	free of charge
2. Account maintenance	free of charge
3. Accruing interest on account balance	by arrangement
4. Statements of account and attachments thereto	free of charge
5. Duplicates of account statements and attachments thereto on the correspondent’s request	USD 10 per item
6. Reply to the auditor’s request	USD 30

Section II. UAH transactions

Correspondent account transactions

1. Credits free of charge

2. Debits free of charge

3. Changing the terms and conditions of transfer free of charge

4. Cancellation of transfer free of charge

5. Inquiry concerning amounts transferred from the bank:

       ▪ within 3 months from the transaction date free of charge

       ▪ within more than 3 months from the transaction date UAH 80.00 per inquiry

Section III. Foreign currency transactions

Correspondent account transactions

1. Credits free of charge

2. Debits:

       ▪ in favour of a beneficiary holding account with VAB Bank free of charge

       ▪ interbank USD 5

       ▪ in favour of a beneficiary holding account with another bank:

       – in US Dollars USD 10

       – in hard currency (except for US Dollars) USD 5 (the correspondent bank’s fee is charged additionally)

       – in soft currency USD 5

3. Changing the terms and conditions of transfer or recalling transfer details after they have been accepted for execution by the bank USD 20

4. Acceptance of amendment to the incoming payment in foreign currency from the correspondent bank (bank-contractor) to execution, without notifying the correspondent bank (bank-contractor) of the execution of this amendment. USD 30

5. Acceptance of amendment to the incoming payment in foreign currency from the correspondent bank (bank-contractor) to execution, with notifying the correspondent bank (bank-contractor) of the execution of this amendment. USD 40

6. Inquiry to another bank USD 30

7. Conversion of funds in the account of a correspondent bank into another currency by arrangement

8. Cash deposits

       ▪ acceptable banknotes by arrangement

       ▪ mutilated banknotes 2% of the amount

9. Cash withdrawals by arrangement

Section IV. Transactions with Precious Metals

Transactions with Precious Metals

1. Credits free of charge

2. Debits

       ▪ in favour of a beneficiary holding account with VAB Bank free of charge

       ▪ interbank USD 5

       ▪ in favour of a beneficiary holding account with another bank: USD 10

3. Changing the terms and conditions of transfer or recalling transfer details after they have been accepted for execution by the bank USD 20

4. Inquiry to another bank USD 30

5. Changing standard and measured precious metal bars of different weight by arrangement

6. Conversion of precious metals by arrangement

7. Purchase of precious metals via exchange 0.2% of the amount

8. Sale of precious metals via exchange 0.2% of the amount

9. Receipt of precious metals and their delivery to the Bank’s vault by arrangement

10. Examination of precious metals by arrangement

11. Withdrawal of precious metals in cash from the metals account to which they have been credited in electronic form (without delivery) min 2.5% max 35%
depending on the bar par value

Section V. Trade Finance

Documentary Letters of Credit

1.1.          Export Letters of Credit

1.1.1. Preliminary advising of the letter of credit USD 20

1.1.2. Advising of the letter of credit 0,1% of the amount
min USD 20 max USD 350

1.1.3. Confirmation of the letter of credit (the fee is charged for the quarter or a part of it)

       ▪ covered with VAB Bank 0,15% of the amount
min USD 25 max USD 250

       ▪ uncovered with VAB Bank by arrangement

1.1.4. Checking, preparing and delivering the documents 0,15% of the amount
min USD 20 max USD 350

1.1.5. Changing the terms of the letter of credit:

       ▪ increasing the amount 0,1% of the additional amount
min USD 20 max USD 350

       ▪ other changes and cancellation of the letter of credit   USD 20

1.1.6. Processing documents that differ from the terms and conditions of the letter of credit USD 50 (additionally)

1.1.7. Preparing the request on the bank’s consent to approve the documents that differ from the terms and conditions of the letter of credit USD 50

1.1.8. Preparing other inquiries USD 20

1.1.9. Transfer of transferable letter of credit to another beneficiary 0,1% of the amount
min USD 20 max USD 350

1.1.10. Checking the documents exceeding the regular scope of work (if there are more than 7 documents) USD 20 (additionally)

1.2.          Import Letters of Credit
1.2.1. Preliminary advising of the letter of credit USD 20

1.2.2. Opening the letter of credit initially covered with the correspondent’s funds 0,15% of the amount
min USD 50 max USD 500
(per quarter or a part of it)

1.2.3. Increasing the amount or extending the validity period of the covered letter of credit 0,15% of the additional amount
min USD 50 max USD 500

1.2.4. Opening the letter of credit without initial coverage, increasing the amount or extending the validity period of such letter of credit by arrangement

1.2.5. Other changes and cancellation of the letter of credit USD 20

1.2.6. Checking the received documents for correspondence with the terms and conditions of the letter of credit 0,15% of the amount
min USD 25 max USD 350

1.2.7. Preparing inquiries to the beneficiary and other banks USD 20

1.2.8. Processing documents that differ from the terms and conditions of the letter of credit USD 50 (additionally)

1.2.9. Checking the documents exceeding the regular scope of work (if there are more than 7 documents) USD 25 (additionally)

1.2.10. Transfer of funds to the beneficiary See terms and conditions
Section II and III)

2. Guarantees

1.1. Issuance of a guarantee initially covered with the correspondent’s funds 0,15% of the amount per quarter min USD 200

1.2. Extension of the validity period of the covered guarantee for the period exceeding the validity period paid for 0,15% of the amount

1.3. Increasing the amount of the covered guarantee 0,15% of the amount added

1.4. Issuance of the uncovered guarantee or the guarantee with partial coverage, increasing the amount or extension of the validity period of such guarantees by arrangement

1.5. Introducing additional changes to guarantee terms and conditions USD 50

1.6. Checking and delivering guarantee documents 0,15% of the amount min USD 20

1.7. Cancellation of a guarantee before its expiry date USD 20

1.8. Advising, forwarding guarantee issued by another bank 0,05% of the amount min USD 25 max USD 350

1.9. Verification of the authenticity of guarantees issued by other banks by arrangement

3. Documentary Collections

1.1. Export transactions

1.1.1. Processing and preparing documents for collection 0,1% of the amount min USD 25 max USD 125

1.1.2. Control over the receipt of documents and payment (non-payment) under documentary collection USD 25

1.2. Import transactions

1.2.1. Receiving and advising collection documents 0,1% of the amount min USD 25 max USD 125

1.2.2. Forwarding collection documents against payment 0,1% of the amount min USD 25 max USD 125

1.2.3. Return of unpaid documents USD 50

Section VI. Communication charges

Communication charges

1. Postage charges actual cost

2. Phone, fax charges actual cost

3. Telex, SWIFT charges USD 5

NOTES:

1. In case the services rendered are not listed in this Terms and Conditions or need additional approval, the fee agreed by the parties shall be applied.
2.   VAB Bank reserves the right to amend, change or cancel this Terms and Conditions in its sole discretion with giving prior notice to the correspondent as set forth by the Correspondent Relations Agreement.
3.   Return of miscredited amount — USD 15 (the fee is charged on the amount of incoming payment).
4.   The fee for foreign currency transactions and transactions with precious metals are charged in the currency of transactions at the NBU cross-rate as of the transaction date.
5. Fees and commissions of other banks shall be charged additionally.

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