State of emergency resulting from adverse weather conditions. Faculty to suspend the payment of loan installments for those affected.
Customers are informed that the Council of Ministers has declared a state of emergency for twelve months as a result of the adverse weather conditions that, starting on May 1, 2023, have affected the territory of the provinces of Reggio-Emilia, Modena, Bologna, Ferrara, Ravenna and Forlì-Cesena.
The high intensity meteorological phenomena caused flooding of watercourses, landslides of slopes, flooding, landslide movements, as well as serious damage to road infrastructure, public and private buildings, hydraulic defense works and the network of essential services, leading to a serious situation of danger to the safety of people, loss of life and the evacuation of many families from their homes,
The Head of the Civil Protection Department issued Ordinance No. 992 of May 8, 2023 containing the first urgent civil protection interventions due to the serious socio-economic hardship resulting from these events, which were considered force majeure pursuant to and for the purposes of Article 1218 of the Civil Code.
These include the right, for the holders of mortgages relating to buildings that have been evacuated or are uninhabitable, or to the management of activities of a commercial and economic nature, including agricultural, carried out in the same buildings, subject to the submission of self-certification of the damage suffered, made pursuant to Presidential Decree of December 28, 2000, no. 445 and subsequent amendments and additions, to request from credit and banking institutions, until the agibility or habitability of the aforementioned property and in any case not later than the date of the termination of the state of emergency, a suspension of the installments of the same mortgages, opting between the suspension of the entire installment and that of the capital portion only.
Customers who, unfortunately, find themselves in these conditions of serious difficulty, have the opportunity to apply for the suspension of installments, within 60 days of the publication of the order in the Official Gazette (May 12, 2023).
Below is information on the technical modalities related to the application for suspension of mortgage installment payments:
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- The suspension period also includes any overdue and unpaid installments (provided that the payment delay is not more than 180 days from the suspension request);
- The suspension is operative within 45 working days from the acceptance of the customer’s request; if there are overdue and unpaid installments, the suspension operates from the first of these;
- Any installments past due and paid from the time of occurrence of the event to the time of activation of the suspension are not included in the suspension.
- During the suspension period, agreed contractual interest accrues, which can be repaid by the customer in the following ways:
(i) suspension of the principal portion only. The interest portion is repaid on the original due dates;(ii) suspension of amortization for interest and principal portion and application of the contractual rate to the outstanding debt. In this case, the interest accrued during the suspension period is repaid (without application of additional interest), starting from the payment of the first installment following the resumption of amortization, with periodic payments (additional to the installments falling due and with equal periodicity) for a duration that will be defined by the bank on the basis of the elements provided by the borrower.
Resumption of the amortization process at the end of the suspension period and corresponding lengthening of the repayment schedule for a duration equal to the suspension period.
The Branch staff is at your disposal and ready to promptly accommodate any requests you may have.
The Board of Directors, the Board of Statutory Auditors and the General Manager, on behalf of all employees of the Bank, express sincere sympathy for those who are in this very serious situation of difficulty.