Concerning claims set-off

2013-07-12

Pursuant to Article 85(4) of the Law of the Republic of Lithuania on Banks, the bankruptcy administrator of BAB Ūkio bankas (hereinafter referred to as the Bank) hereby informs you that the Bank’s claims to the Bank’s depositors having liabilities with respect to the Bank will be set off against the claims of the Bank’s depositors to the Bank.

Liabilities with respect to the Bank include all credit transactions entered into by the Bank and a depositor (credit agreements, overdrafts, factoring, repo deals, credit line agreements, leasing agreements, debts accrued under payment card agreements, guarantee agreements, etc) and also depositor’s other debt liabilities to the Bank, and interest, late payment charges and other payments payable on them.

Claims will be set off only with respect to the insured deposits and depositor’s liabilities to the Bank, which have not been transferred to AB Šiaulių bankas.

Please be informed that as on 18 February 2013, the amount of depositor’s claims to BAB Ūkio bankas which may be set off against the Bank’s claims to the depositor may not exceed LTL 345 280. The amount of claims to the Bank exceeding the aforementioned amount of LTL 345 280 will not be set off against the Bank’s claims to a depositor, and this amount is the subject of lodgement of a creditor’s claim.

The amount of depositor’s claims to the Bank, which may be set off against the Bank’s claims to the depositor is calculated by subtracting the part of an insured deposit transferred to AB Šiaulių bankas from an amount of LTL 345 280.

For example, if your deposit amounted to LTL 400 000 out of which LTL 45 280 were transferred to AB Šiaulių bankas, while liabilities totalled LTL 300 000, a claim may be set off on the amount of LTL 300 000 (insured amount – LTL 345 280, and an amount of LTL 45 280 transferred to Šiaulių bankas), and the remaining amount of LTL 54 720 may be the subject of lodgement of a creditor’s claim against the Bank. Following the set-off of claims the client would no longer have liabilities to the Bank.

For example, if your deposit amounted to LTL 400 000 and liabilities also totalled LTL 400 000, a claim may be set off on the amount of LTL 345 280 (insured amount), and the remaining amount of LTL 54 720 may be the subject of lodgement of a creditor’s claim. In the meantime the depositor’s liabilities to the Bank remaining after the set-off of claims would amount to LTL 54 720.

Please be informed that from the date of submitting to the Bank an application for claims set-off calculation of interest and/or late payment charges on the liabilities, or part thereof, covered by the set-off application will be discontinued.

The order of priority of set-offs: first – penalties for nonfeasance, second – interest, and third – the amount of an overdue debt or any other debt to the Bank or part thereof. The balance of the depositor’s claim remaining after the set-off may be used for early repayment of a loan, either in whole or in part, if the depositor so requests.

The Bank has the right to adopt a decision on the set-off of claims within 40 working days of the date of receipt at the Bank of an application for setting off claims.

Submitting an application

Claims will be set off against liabilities following receipt from the Depositor of a written application for claims set-off, whose format is published on the Bank’s website, or by a unilateral decision of the bankruptcy administrator of the Bank.

The Depositor’s application for claims set-off must be submitted to the Bank on paper and must carry the original signature and/or seal of the Depositor/Depositor’s representative. An application for claims set-off signed by the Depositor’s representative under law/Power of Attorney must be accompanied by a document giving proof of the authorisations or by a certified copy thereof. An application for claims set-off submitted by the representative of a natural person must be certified by a Notary Public.

Applications for claims set-off must be submitted using the format specified by the Bank, and if completed by hand – completed in block capitals in Lithuanian and must be clearly legible.

In the event of several co-debtors under an agreement concluded with the Bank, applications for claims set-off must be submitted by all co-debtors.

The application may be sent by post at the address: BAB Ūkio bankas, Maironio str. 25, 44250 Kaunas.


Application for claims set-off form for natural person you can find here.

Application for claims set-off form for legal person you can find here.

 

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