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Charette Cooperation Address: Sofia, 36, Serdika str., fl. 5, ap. 17 e-mail:


icro-credits available to Charette members are regulated through the current TERMS OF FINANCE as adopted and/or amended by the General assembly. Their provisions are binding to the members having received or applied for a grant of Charette’s financing. A sample Micro-credit Contract ther attached to provide the basic terms ditions under which micro-credits are

is furand congranted.

TABLE OF CONTENT: I. Definitions II. General Provisions III. Credit Requirements IV. Application procedure V. Credit Repayment and Defaulted payments VI. Securities VII. Sample Micro-credit Contract


• Evaluation committee – a committee comprised of 3 expert persons, specialists in a designated field, assigned by the Board to evaluate the benefits of the proposed project and the price of the securities. • Financial revenue from micro-credits – revenue from interest earned, fees, and commissions (including late fees and penalties) on the gross micro credit portfolio only, including the accrued but nonpaid interest. • Number of micro–credits disbursed - the number of loans disbursed during a specific period. Usually corresponds to the number of the financed projects. • Performing portfolio -the part of the gross micro-credit port folio including the value all outstanding micro credits which lack any delays in repayment beyond 7 days and that have not been rescheduled or restructured. It does not include accrued interest.

• Portfolio at risk - the value of all outstanding micro-credits with one or more installments of principal past due for more than 7 days. This includes the entire unpaid principal balance, including both past, due and future installments, with no accrued interest. It also does not include loans that have been restructured or rescheduled. • Securities - any asset that equals or exceeds the micro-credit amount and provides for its full and timely payment, such as: • Promissory notes issued to the benefit of Charette; • Mortgages established in the name of Charette; • Pledges over movable property (shares included herein); • Special pledges registered in the Registry for Special Pledges; Receivables due by Charette to its members do not fall within the definition of securities. • Value of micro-credits disbursed - the value of all loans disbursed during the period, regardless of whether they are performing, non-performing, or written off.

GENERAL PROVISIONS 1. As a way to pursue and achieve Charette’s aims, the latter provides its members with micro-credits subject to the criteria below. 2. Charette’s micro-credits are used for further development and promotion of design activities, marketing and distribution of design products, development of business projects and plans, as well as any other activity considered appropriate by the Board. 3. Charette provides only group members micro-credits to groups comprised of at least 3 members. 4. Repayment of Charette’s micro-credits could be:

1) with a fixed term of repayment;


for up to 2 years;


for up to 1 year;

2) with a rescheduled repayment;


for up to 3 years;


for up to 1.5 year;



5. Micro-credits are used solely for the purposes for which they have been granted. Noncompliance with the microcredit purpose results in its accelerated repayment.

6. Charette maintains a Micro-Credit Register, posted on its site, with the following information: 1)

Value of micro-credits disbursed;


Number of micro窶田redits disbursed;


List of micro-credit receivers;


Performing portfolio;


Portfolio at risk;


Financial revenue from micro-credits;


Credited projects and their stage of development;

The data so presented is highly confidential.


Applicants are required to have completed Charette’s micro-credit workshop.

Applicants, having completed the workshop, must provide the following information: •

income for the proceeding year and a half (other than

Charette’s); •

repayment capacity;

lack of breaches in the member’s obligations;

business plan or an overview of the credited project;

project perspective incomes;

type of micro credit repayment;

micro-credit security (preferences between several


APPLICATION PROCEDURE 1. Micro credit availability, together with the upcoming micro-credit workshop dates, are announced on Charette’s site. 2. Members applying for micro-credits are considered registered for the micro-credit workshop. 3. The application procedure is initiated at the entrance of the username/password of one of the group members, 4. Each application comprises of 2 sections:

Applicants’ data: •

name of members applying;

current income of each members;

repayment capacity of each member;

past repayment track record of each member;

Projects’ data: •

business plan or a project overview;

project realization;

estimated project costs;

Further information is presented when appropriate.




Applications together with the attached to them documents are

submitted to the Board by clicking the “submit” button located in the right corner of the screen. 6. Applications are considered filed in with the Board from the moment of receiving a confirming e-mail. Its non-receipt equals non-applying for the micro-credit and non-registration for the workshop. 7. Amendments in the presented information reported to the Board immediately but no later than the following 3 days. 8. Each application is processed separately by the Board within 2-weeks of its filing. 9. Approved applicants are invited to participate in the workshop. 10. Subject to the successful completion of the workshop, the Board adopts a grounded resolution for micro-crediting the project up to a certain percent. Applicants are notified of the resolution within 3 days of its adoption. 11.

Micro-credit Contracts are concluded within 7 days of the receipt

of the mail and subject to further negotiations held between the Board and the respective members.

12. Concluded contracts are entered in the Micro-credit register

within 3 days through posting: •

micro credit amount;

repayment day or schedule

financed projects;


• Repayment of micro-credits is executed within the designated term(s), in the amount provided and through a bank transfer to Charette’s bank account. • Fixed term contracts with a period of repayment for up to 2 years bear an interest determined by SOFIBOR + 2 points. • Fixed term contracts with a period of repayment for up to a year bear an interest determined by SOFIBOR + 1.2 points. • Long term loans with rescheduled repayment bear an interest determined by SOFIBOR + 3 points. • Short term loans with rescheduled repayment for up to 1.5 year bear an interest determined by SOFIBOR + 1.8 points. • Repayments are registered by the Board in the Micro-credit register.

• The Board amends the entries in the Micro-credit register in case of error. • Default in the repayment of any of the due installments results in the micro-credit accelerated payment. • Defaulted members receive notice for the voluntary repayment of the credit within 3 days of the due term. • Non-payment within 10 days from the receipt of the invitation gives raise to the initiation of proceedings for exercising Charette’s rights over the securities. • All disputes regarding micro-credits are heard by a Bulgarian state court of competence with the application of the Bulgarian legislation.


1. Micro-credits are secured through the establishment of securities to the benefit of Charette. 2. Members’ dividends are set-off with micro-credit repayments up the amount of the smaller. 3. Securities are established in the name of Charette in the amount of their market price, as determined by the Evaluation Committee. 4. Devaluation of the established securities. In case of de-evaluation of the market price of the so established securities, the Board of Directors could ask the receiver of the financial grant to established an additional security up to the amount of the non-returned grant together with the calculated upon it interest.

Charette Cooperation Address: Sofia, 36, Serdika str., fl. 5, ap. 17 e-mail:

Charette_Terms of finance