The Approved Credit policy

4. General rules for granting refinance loan

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1. Loan Amount

• The loan amount shall not exceed 83% of the outstanding balances of the mortgage loans which are accepted for refinancing.
  
  
• The loan shall be collateralized by first degree liens properties transferred to the order of JMRC with a residual value not less than 120% of the principal amount of loans. The principal balance shall be subject to revaluation by JMRC according to the degree to which the interest rate or the conditions on the respective loan deviate from the rates and conditions applicable to most new mortgage loans as defined by JMRC

2. Loan Draw Down Procedures
   
   

• The loan shall be drawn within a maximum period of two months from the date of signing the refinance loan agreement.
• Draw down procedures shall be agreed upon with the borrowing financial institutions for each case separately in line with JMRC's cash flows.
  
  

3. Rate Of Interest On The Loan
   
   

• An annual interest shall be charged on the loan on daily balance and shall be credited monthly to the loan account and paid every six months.
  
  
• The rate of interest charged on the loan shall be reviewed every (…..) month/months from the date of singing the Refinance Loan Agreement on the basis of the yield prevailing in the local market on Treasury Bills or Certificates of Deposits issued by the Central Bank Of Jordan of life duration plus a margin agreed upon at time of the origination of the loan.
  
  
• The interest shall be calculated on the basis of the actual number of the days which have elapsed since the possession of the amounts by the borrowing financial institution considering that the month is 30days and the year is 12 months for the purposes of the denominator only according To the following equation :-

considering that the month is 30days and the year is 12 months for the purposes of the denominator only according to the following equation :-
 ( The amount X interest rate X actual number of days divided by 360 days ).

4. Delay Interest

• In case any principal amount and/or interest payments and/or commitment fee or expenses fall due and are not paid in their due date the financial institution undertakes to pay JMRC the applicable interest rate on the amounts due, plus an annual percentage of (1% ) over the period after seven days from due to full repayment.

5. Commitment Fee

• Commitment fee on the loan shall be percentage of (.....) over the amount of the refinance loan committed and not withdrawn. computation of such fee shall commence from the date of signing the refinance loan agreement by the financial institution until final draw down.
  
  
• This fee shall be paid on the same dates of payment of the interest amount, or at the end of the drawing period, or upon the cancellation of the in draw balance, whichever comes first. The commitment fee shall be calculated on the basis of the same equation used for calculating the interest.

6. Repayment.
   
   

• The loan principal shall be repaid in one installment on the maturity date.
  
  
• Early repayment of the principle amount of the loan, or any part of it, shall not be permitted without the consent of JMRC. Such consent may be subject to a repayment premium based upon the difference between the prevailing market rate of interest at the time of repayment and the existing rate of interest under the loan agreement.
  
  
• Allowing term of the loan to be extended once or more based on an Agreement between the Financial Institution and JMRC, according to an official request from the Financial Institution to be sent (3) months before maturity date to JMRC. JMRC agreement shall include the new maturity date and the new annual interest rate for the coming period.
  
  
• Allowing extension of the loan’s term, according to the Refinance Loan Agreement Annex to be attached to the original Agreement

7. Other Requirements:-

Except as the IRBD shall otherwise agree, the following provisions shall be include in the Refinance Loan Agreement ensuring that the right of the financial institution to draw down of its Loan from JMRC shall be:-

1-Suspended upon failure by the financial institution to perform any of its obligations under its respective Refinance Loan Agreement.

2-Terminated if such right shall have been suspended for a continues period of 30 days.

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