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BANCA NAŢIONALĂ A ROMÂNIEI

Explanatory memorandum

regarding the draft Regulation on the settlement risk management procedure

applicable to clearing systems and facilities granted by Banca Naţională a

României for the smooth settlement in ReGIS

Subject matter

The draft Regulation is aiming to set up a settlement risk management procedure

applicable to clearing systems and the facilities granted by Banca Naţională a României

for the smooth settlement in ReGIS.

Main objectives of the draft Regulation

The main objectives of the draft Regulation are:

- to update the regulatory framework regarding the settlement risk management

procedure in ReGIS1 following the closure of the paper-based clearing house

operated by Banca Naţională a României;

- to ease the conditions for credit institutions participating in ReGIS to benefit

from the facilities granted by Banca Naţională a României and

- to separate the settlement risk management procedure and the facilities granted

in order to achieve smooth settlement in ReGIS from the licensing procedure for

payment systems into two regulations.

The draft Regulation seeks to update the regulatory framework following the closure of

the paper-based clearing house operated by Banca Naţională a României via lifting the

1 Real-time gross settlement system operated by Banca Naţională a României.

2

obligation imposed on payment system participants to establish a technical unilateral

guarantee ceiling. This measure was initially meant to minimise the settlement risk of

net positions calculated by the paper-based clearing house and currently represents an

inefficient blocking of funds in ReGIS or of large-value securities in SaFIR2 without

ensuring mitigation of the settlement risk.

The draft Regulation also improves the regulatory framework governing the smooth

settlement in ReGIS by facilitating access to the intraday facility granted by Banca

Naţională a României to credit institutions participating in ReGIS even in the case when

those participants are no longer fulfilling the eligibility criteria for open market

operations or their access to these operations is suspended or restricted.

The draft Regulation also details the procedure of automated conversion of the repo

intraday facility into the lending facility – Lombard Credit – for eligible credit

institutions participating in ReGIS at their own initiative, following the recommendation

of the International Monetary Fund in the Financial Sector Assessment Program – Aide

Memoire (November 2008) in order to allow the use of the same eligible financial

instruments as collateral for the two types of operations.

In addition, the draft Regulation provides the separation of the settlement risk

management procedure applicable to clearing systems and the provisions related to the

facilities granted by Banca Naţională a României to the credit institutions participating

in ReGIS for the smooth settlement in this system, on the one hand, from the licensing

procedure for payment systems, on the other hand, whilst the latter procedure is subject

to another regulation.

Stage in national legislative process

The draft Regulation has been endorsed by the executive management of Banca

Naţională a României and after the consultation of the European Central Bank it will be

approved by the Banca Naţională a României Board and then published in Monitorul

Oficial al României.

2 Securities depository and settlement system operated by Banca Naţională a României.

3

Details of the contact person

Contact person is Ms. Ruxandra Avram, Head of Payment and Securities Settlement

Systems Oversight Division, Financial Stability Department, telephone: +40 021 307 01

98; +40 021 313 04 10 extension 1150, fax: +40 021 313 06 54 and email:

[email protected].

BANCA NAŢIONALĂ A ROMÂNIEI

REGULATION

on the procedure for the settlement risk management applicable to net settlement

systems and the facilities granted by Banca Naţională a României for the smooth

settlement in ReGIS

Having regard to the provisions of Article 22 paragraphs (1) and (3) of Law No.

312/2004 on the Statute of Banca Naţională a României and of Articles 404 (1) and 405

of Government Emergency Ordinance No. 99/2006 on Credit Institutions and Capital

Adequacy, approved as amended and supplemented by Law No. 227/2007, as

subsequently amended and supplemented,

Pursuant to the provisions of Article 48 of Law No. 312/2004 on the Statute of Banca

Naţională a României,

Banca Naţională a României issues this Regulation.

Chapter I

General provisions

Article 1. This Regulation establishes:

a) The procedure for settlement risk management applicable to net settlement systems

which settle in ReGIS, unless they are governed by their own procedures for the

management of settlement risk in ReGIS, imposed by the system operator and approved

by Banca Naţională a României;

b) The facilities granted by Banca Naţională a României to the credit institutions

participating in ReGIS for the smooth settlement in this system.

Article 2. Under this Regulation, the terms and expressions stated below shall have the

following meaning:

a) System operator – the legal person that establishes the rules of the system and is

responsible for the system operation;

b) Facilities granted by Banca Naţională a României to the credit institutions

participating in ReGIS for the smooth settlement in this system – the intraday liquidity

facility and the lending facility for ensuring settlement of net positions;

c) Intraday liquidity facility – the facility granted by Banca Naţională a României to the

credit institutions eligible under Article 11, enabling credit institutions to obtain

liquidity via repurchase transactions with settlement on the same day, concluded with

Banca Naţională a României against assets eligible for collateralisation.

d) Lending facility for ensuring the settlement of net positions – the facility granted by

Banca Naţională a României to the credit institutions participating in ReGIS, enabling

credit institutions to obtain credit from Banca Naţională a României in order to settle net

positions calculated in the card payment schemes;

e) Lending facility - Lombard Credit – the facility defined in the regulations of Banca

Naţională a României on open market operations;

f) Clearing participant – a credit institution whose net position following the clearing

within a net settlement system is settled through its settlement account held with ReGIS;

g) ReGIS – a real-time gross settlement system operated by Banca Naţională a

României;

h) SaFIR – a financial instruments depository and settlement system operated by Banca

Naţională a României;

i) System – a payment system or a financial instruments settlement system;

j) Net settlement system – a system which calculates the net positions of clearing

participants; the positions are then sent to Banca Naţională a României, which, in its

capacity as settlement agent, shall have them registered with the clearing participants’

settlement accounts held with ReGIS.

Chapter II

Procedure for the management of settlement risk applicable to net settlement

systems which settle in ReGIS

Section I

Collateralisation

Article 3. (1) The clearing participant in a net settlement system which is not governed

by any procedure for the management of settlement risk in ReGIS shall set up collateral

in lei, available with Banca Naţională a României, in order to ensure the settlement in

ReGIS of its net debit position, calculated and communicated by the net settlement

system’s operator.

(2) The collateral shall be set up no later than the settlement day and its value shall be at

least equal to the value of the net debit position of the clearing participant.

Article 4. (1) The collateral in lei referred to in Article 3 shall consist in:

a) Pledge over the funds registered in the “Reserves” section in the clearing

participant’s settlement account held with ReGIS and/or

b) Pledge registered in SaFIR over eligible assets for collateralisation, as defined in the

regulations of Banca Naţională a României on open market operations.

(2) The list of eligible assets for collateralisation referred to in paragraph (1) letter b),

their value established by Banca Naţională a României, and the haircut applied by

Banca Naţională a României when calculating the value of the collateral for these

operations shall be made available on a daily basis to the clearing participants by Banca

Naţională a României, via SaFIR-specific communication means.

Article 5. The collateral shall be provided, supplemented, executed and released in

compliance with the rules of ReGIS and SaFIR and the contractual clauses regarding the

setting-up and foreclosure of collateral as per the contract concluded by the clearing

participant with Banca Naţională a României.

Article 6. Within the procedure for the management of settlement risk applicable to net

settlement systems which settle in ReGIS, Banca Naţională a României may foreclose

the collateral set up and made available with it by a clearing participant, in order to

settle the latter’s net debit position.

Section II

Procedure for the management of settlement risk in

financial instruments settlement systems

Article 7. In the case of a financial instruments settlement system which settles on a net

basis in ReGIS, the procedure for the management of settlement risk shall be applied in

the following stages, by observing the rules of ReGIS and SaFIR and the clauses laid

down in the participation contract in ReGIS, concluded between Banca Naţională a

României and the system operator:

1. The system operator shall perform a preliminary calculation of the clearing

participants’ net positions.

2. The system operator shall query ReGIS and SaFIR for the value of the collateral set

up by each clearing participant in the respective system, at the hours specified by the

participation contract concluded with Banca Naţională a României.

3. Where the total value of the collateral set up by a clearing participant is less than the

value of its net debit position, the system operator shall communicate to the former the

amount by which the collateral shall be supplemented. The clearing participant shall be

given a time frame for this operation, as specified by the participation contract in ReGIS

concluded between Banca Naţională a României and the financial instruments

settlement system operator.

4. After the expiry of the time frame referred to in point 3, the system operator shall

query again ReGIS and SaFIR for the new values of the collateral set up by the clearing

participants in the respective system.

5. Where the total value of the collateral set up by each clearing participant covers the

net debit position, the system operator shall initiate a payment instruction in ReGIS for

the settlement of net positions.

6. Where the total value of the collateral set up by a clearing participant is still less than

its net debit position, the system operator shall recalculate the net positions by excluding

some transactions, so that each new net debit position is covered by the collateral set up

for it and shall initiate a payment instruction for the settlement of the new net positions

in ReGIS. As concerns the transactions excluded from the calculation of net positions,

the system operator can initiate payment instructions in ReGIS for their settlement on a

gross basis.

Article 8. (1) The payment instruction for the settlement of net positions shall be

initiated in ReGIS in compliance with the provisions of the participation contract in

ReGIS concluded between Banca Naţională a României and the respective financial

instruments settlement system operator.

(2) Banca Naţională a României shall not be bound to ensure the settlement of net

positions on the respective settlement day unless the system operator initiates the

payment instruction for the settlement of net positions in ReGIS within the time frame

specified by the system rules and the participation contract in ReGIS concluded between

Banca Naţională a României and the respective financial instruments settlement system

operator.

Section III

Procedure for the management of settlement risk

for card payment system

Article 9. In the case of a card payment scheme, the procedure for the management of

settlement risk shall be applied in the following stages, by observing the rules of ReGIS

and SaFIR, the clauses of the participation contract in ReGIS concluded between Banca

Naţională a României and the respective system operator as well as the provisions of

Chapter III, Section II of this Regulation:

1. Where the net debit position of a clearing participant cannot be settled due to the lack

of funds available in its settlement account held with ReGIS, Banca Naţională a

României shall proceed to execution of collateral provided by the respective clearing

participant in compliance with the provisions of Chapter II, Section I of this Regulation.

2. Where the net debit position of the clearing participant cannot be settled, even after

the foreclosure on collateral set up in that system, the participant shall raise the funds

required for the settlement either by using the intraday liquidity facility granted by

Banca Naţională a României or by borrowing funds from other participants in ReGIS or

by performing other transactions on the interbank market.

3. Where the net debit position of the clearing participant still cannot be settled, even

after going through the stage referred to in point 2, the clearing participant shall use the

lending facility granted by Banca Naţională a României to clearing participants in card

payment schemes in order to ensure the settlement of net positions.

Chapter III

Facilities granted by Banca Naţională a României to the credit institutions

participating in ReGIS for the smooth settlement in this system

Section I

Intraday liquidity facility

Article 10. In order to obtain intraday liquidity for the smooth settlement in ReGIS,

eligible credit institutions can use the intraday liquidity facility granted by Banca

Naţională a României under the framework contract for repurchase transactions with

settlement on the same day, concluded between respective credit institution and Banca

Naţională a României, by observing the provisions of this Regulation and the rules of

ReGIS and SaFIR.

Article 11. A credit institution is eligible to access the intraday liquidity facility if it

fulfils each of the following conditions:

a) The credit institution participates in ReGIS and SaFIR and it is not suspended from

these systems;

b) The credit institution has concluded with Banca Naţională a României the framework

contract for repurchase transactions with settlement on the same day, referred to in

Annex No. 1.

Article 12. The assets used within the intraday liquidity facility shall be eligible assets

for collateralisation, as defined they in the regulations of Banca Naţională a României

on open market operations.

Article 13. (1) The list of assets eligible for collateralisation used in intraday liquidity

facility transactions, their value established by Banca Naţională a României, and the

haircut applied by Banca Naţională a României when calculating the value of the

collateral for these transactions shall be made available on a daily basis to the

participants in ReGIS by Banca Naţională a României, via SaFIR-specific

communication means.

(2) The repurchase price of the assets used in the intraday liquidity facility transactions

shall be the same as the initial sale price.

(3) In the case of failure to repurchase the assets used within the intraday liquidity

facility, the credit institution can request Banca Naţională a României to convert the

intraday liquidity facility into lending facility - Lombard Credit. Where the credit

institution does not require the conversion of the intraday liquidity facility into lending

facility - Lombard Credit, the eligible assets used for collateralisation remain in the

ownership of Banca Naţională a României.

(4) The conversion of the intraday liquidity facility into lending facility - Lombard

Credit shall be achieved by novation, observing the conditions in the regulations of

Banca Naţională a României on open market operations, including those referring to the

eligibility of credit institutions and the rules of SaFIR.

Article 14. Banca Naţională a României can decide to suspend or restrict the access of

an eligible credit institution to the intraday liquidity facility:

a) Where the credit institution has repeatedly failed to complete the repurchase

transaction through the repurchase of the assets used as collateral within the intraday

liquidity facility or through the conversion of the intraday liquidity facility into lending

facility - Lombard Credit;

b) Where insolvency proceedings were opened against the respective credit institution;

c) Pursuant to the decision of the Banca Naţională a României Board for prudential

reasons.

Section II

Lending facility for ensuring the settlement of net positions

Article 15. In order to obtain the necessary credit to manage the settlement risk the

clearing participant in a card payment scheme shall conclude the framework contract

with Banca Naţională a României, according to the draft contract presented in Annexes

No. 2a and 2b, respectively.

Article 16. (1) If a clearing participant in a card payment scheme lacks the funds

required for the settlement of its net debit position even after going through the stages

referred to in Article 9 points 1-2, Banca Naţională a României grants a loan to that

clearing participant guaranteed by the operator of the respective card payment scheme.

The system operator guarantees the loan granted by Banca Naţională a României by

collateral including, but without limiting to, publicly issued government securities

and/or deposits with Banca Naţională a României or with other legal persons agreed by

Banca Naţională a României.

(2) The loan granted under paragraph (1) shall not exceed the value of the uncovered net

debit position of the clearing participant in the card payment scheme.

(3) The loan referred to in paragraph (1) shall be granted for a period of 3 days.

(4) The interest rate applied to the loan referred to in paragraph (1) shall be equal to the

interest rate on the lending facility - Lombard Credit established by Banca Naţională a

României plus 3 percentage points.

(5) The interest on the loan referred to in paragraph (1) shall be paid at the same time as

the loan reimbursement.

(6) Where the loan’s maturity day is a non-operating day for ReGIS, the loan shall be

reimbursed on the next operating day of the system.

Chapter IV

Final provisions

Article 17. On the date this Regulation enters into force the provisions of Banca

Naţională a României Regulation No. 10/2005 on the facilities granted by Banca

Naţională a României for the smooth settlement in ReGIS and the provisions of Title III

of Banca Naţională a României Regulation No. 1/2005 on the payment systems

ensuring funds clearing shall be repealed.

Article 18. Annex No. 1 and Annex No. 2 are integral parts of this Regulation.

Chairman of Banca Naţională a României Board

MUGUR CONSTANTIN ISĂRESCU

Bucharest, ________.

No. ____.

Annex 1

Framework contract

for intraday repo transactions

No..........date.......

Pursuant to the provisions of Law No. 312/2004 on the Statute of Banca

Naţională a României, of Government Emergency Ordinance No. 99/2006 on Credit

Institutions and Capital Adequacy, approved as amended and supplemented by Law No.

227/2007, as subsequently amended and supplemented, of the Regulation on the

procedure for the management of settlement risk applicable to net settlement systems

and the facilities granted by Banca Naţională a României for the smooth settlement in

ReGIS, of the system rules for the financial instruments depository and settlement

system – SaFIR,

between Banca Naţională a României, with headquarters in Bucharest, Lipscani 25

street, sector 3, represented by ................and by......................

and

........................................., hereinafter credit institution, with headquarters in.................

(name of credit institution)

Street.........................., no........., registered at Registrul comerţului under no..............,

tax code no.................represented by...............................and by...........................,the

following contract was concluded:

I. Object of the contract

The object of the present contract is the sale, by the credit institution to Banca Naţională

a României, of assets eligible for collateralization, in order to obtain liquidity, and the

repurchase of the same assets, within the same transaction, at the same price, during the

same day.

II. Definitions

Throughout the present contract, the terms below have the following meanings:

1. first leg - is the sale of assets eligible for collateralization, in an intraday repo

transaction;

2. second leg - is the repurchase of assets eligible for collateralization, sold at the

first leg;

3. assets eligible for collateralization - the financial instruments defined in Banca

Naţională a României regulations on money market operations;

4. unit price for sale/repurchase - the price for one financial instrument, at which

both the sale and repurchase are executed, in an intraday repo;

5. haircut - the difference, as a percentage, between the market value of an eligible

asset for collateralization and the value at which it is accepted by Banca

Naţională a României for collateralization; the haircut is established and

communicated by Banca Naţională a României, via SaFIR;

6. market value - the value at a certain date, set and communicated by Banca

Naţională a României, via SaFIR, for each eligible asset for collateralization;

7. amount to settle - the amount of money credited to the account of the credit

institution at the first leg in an intraday repo, and respectively to the Banca

Naţională a României account at the second leg of the transaction.

III. Moment when an intraday repo is executed

1. An intraday repo is accepted by Banca Naţională a României at the moment

when the instruction is sent by the participant in SaFIR, without any other

formalities being necessary regarding quotations or transaction approvals.

2. Unless expressly specified, for transactions under the present contract, the lack

of any formalities, other than those specified in the present contract, do not

affect the validity of transactions.

IV. Rights and obligations of the parties

1. Rights and obligations of the credit institution

1.1. The credit institution has the right to receive intraday liquidity through the sale

to Banca Naţională a României, within repo transactions, of assets eligible for

collateralization.

1.2. The credit institution is obliged:

1.2.1. to initiate repo transactions from the evidence account for financial

instruments held in its own name, opened in SaFIR;

1.2.2. to initiate repo transactions only with assets eligible for collateralization,

specified and communicated via SaFIR, at the price communicated by

Banca Naţională a României and according to the timetable provided in the

system rules;

1.2.3. to hold, in the evidence account for financial instruments held in its own

name, the necessary amount of eligible assets for the settlement of the first

leg;

1.2.4. to hold, in its settlement account in ReGIS, at the time of settlement, the

amount of money necessary for the settlement of the second leg;

1.2.5. to transfer to Banca Naţională a României’s property the assets eligible

for collateralization;

1.2.6. to fully repurchase from Banca Naţională a României the assets sold at

the first leg, by paying the repurchase price during the same day according

to SaFIR system rules or to initiate the procedure to transform the intraday

liquidity facility into a lending facility (lombard credit), according to SaFIR

system rules.

1.3. The credit institution guarantees that the assets eligible for collateralization sold

are its property, are not pledged or put under distraint and fall due after the

maturity of the operation.

2. Banca Naţională a României’s rights and obligations

2.1. Banca Naţională a României has the right:

2.1.1. to receive the repurchase price of the assets, as well as the commissions

stipulated in the SaFIR system rules;

2.1.2. to decide the suspension or restriction of the access of a credit institution

to the intraday liquidity facility in any of the following situations:

a) the credit institution was suspended or removed from ReGIS and/or

SaFIR;

b) if the credit institution repeatedly does not finalize the repo operation,

by repurchasing the assets used for the intraday liquidity facility or for

the lombard credit into which the intraday liquidity facility was

transformed;

c) for prudential reasons, pursuant to the decision of Banca Naţională a

României’s Board.

2.2. Banca Naţională a României is obliged to:

2.2.1. communicate daily, via means specific to SaFIR, the list of assets

eligible for collateralization, their market value and haircut applied by

Banca Naţională a României to obtain their collateral value for repo

operations;

2.2.2. to accept intraday repos, initiated by the credit institution via messages

sent to SaFIR, based on the fulfillment of the obligations stipulated in the

present contract and in the Regulation on the settlement risk management

procedure applicable to net settlement systems and the facilities granted by

Banca Naţională a României for the smooth settlement in ReGIS,of the

system rules for the financial instruments depository and settlement system

– SaFIR.

V. Timetable for initiating repo transactions with settlement on the same day

Repo transactions with settlement on the same day can be initiated by the credit

institution within the timeframe of the “delivery versus payment” service, as specified

in SaFIR system rules.

VI. Price and amount to be settled

1. The unit sell price for the first leg and the unit repurchase price for the second leg

are equal and represent the market value minus the haircut, as defined in the present

contract and SaFIR system rules.

2. The amount to be settled for the first leg and the amount to be settled for the second

leg are equal. The settlement amount will be smaller or equal to the product between

the number of financial instruments and their market value less the haircut.

VII. Settlement

1. Repo transactions with settlement on the same day are settled in real time, based on

the principle of “delivery versus payment”, according to SaFIR system rules.

2. Delivery of financial instruments by the credit institution to Banca Naţională a

României, and respectively by Banca Naţională a României to the credit institution,

according to the present contract, is performed through the transfer of the property

right.

3. According to SaFIR system rules, participants can set a deadline for the second leg

before the cutoff time of the service “delivery versus payment”.

4. For repo transactions with settlement on the same day, for which the first leg was

settled, the change of eligibility criteria during the day does not impede the

settlement of the second leg.

5. For repo transactions with settlement on the same day, no other ancillary operations

are permitted, such as substitutions, margin calls, maturity modification, as defined

in SaFIR system rules.

6. If a credit institution that entered into a repo transaction with Banca Naţională a

României cannot perform the second leg of the repo, the credit institution has the

choice to request to Banca Naţională a României a transformation of the intraday

liquidity facility into a lending facility (lombard credit). Otherwise, the assets

transacted under the contract remain in Banca Naţională a României’s property. The

transformation of intraday credit facility in lombard credit shall be done, according

to SaFIR system rules, through novation.

VIII. Commissions

The commissions owed by the credit institution for repo transactions with settlement on

the same day are those specified in annex no. 9 to SaFIR system rules.

IX. Force majeure

Parties of this contract are not liable for improper/delayed execution – fully or in part –

of obligations arising from this contract, if due to force majeure.

X. Litigations

Disagreements between parties shall be settled amiably. If that is not possible, parties

shall address the competent judicial authority.

XI. Final provisions

1. This contract is governed by Romanian law. Any change in the regulatory

framework, including in the model for the framework contract, and/or the system

rules of SaFIR, shall lead to the corresponding revision of the present contract.

2. This contract shall enter into force on .............

3. This contract was concluded today..............., in two copies, one for each party.

BANCA NAŢIONALĂ A ROMÂNIEI ....................................

Authorized signatures (name of credit institution)

Authorized signatures

Annex 2a

Framework contract

regarding loans granted for the settlement of net debit positions

No. ...... of ............

Pursuant to the provisions of the Law No. 312/2004 on the Statute of Banca Naţională a

României, of the Emergency Ordinance of the Romanian Government No. 99/2006 on

credit institutions and capital adequacy, approved with amendments and supplements by

the Law No. 227/2007, as subsequently amended and supplemented, of the Regulation

on the procedure for the management of settlement risk applicable to net settlement

systems and the facilities granted by Banca Naţională a României aiming at smoothing

the settlement in the ReGIS system, and of the ReGIS system rules.

Between Banca Naţională a României, with headquarters in Bucharest, 25 Lipscani

Street, Sector 3, represented by ...................... and by ....................,

and

......... .................................................. hereinafter “credit institution” with

(name of the credit institution)

headquarters in ......................, Street ........................ no. ......, registered in Registrul

Comerţului under No. ................., fiscal code ................., represented by .....................

and by ..................., the present contract has been concluded.

I. Object of contract

The object of the present contract is the granting of a collateralised credit by Banca

Naţională a României for the final settlement in the ReGIS system of the net debit

position of the credit institution, in case that, at the moment established in the ReGIS

system rules, the credit institution does not hold the funds necessary for the settlement

in ReGIS of its net debit position, as calculated by the card payment system

administrated by VISA Europe.

II. Lending requirements

1. The credit granted shall not exceed the value of the uncovered net debit position of

the credit institution, calculated by the card payment system administrated by VISA

Europe.

2. The credit granted by the Banca Naţională a României shall be guaranteed by VISA

Europe according to the contract between Banca Naţională a României and VISA

Europe.

3. The credit period is 3 calendar days.

4. The interest rate on this loan shall be the interest rate for the Lombard credit, as

published on the Banca Naţională a României contributor’s pages in Reuters and

Telerate systems, plus 3 percentage points.

5. The interest on this loan shall be paid at the time of the loan reimbursement.

6. In case the maturity date of the loan is a non-operating day for the ReGIS system, the

loan shall be reimbursed on the next operating day of the system.

III. Rights and obligations of the parties

1. The credit institution has the right to receive funds from Banca Naţională a României

through the lending facility for ensuring the settlement of net debit positions and the

obligation to reimburse those funds, under the conditions agreed by the parties in this

contract.

2. Banca Naţională a României has the obligation to grant the loan at the end of the

ReGIS operating day and the right to be reimbursed at the maturities and under the

terms of this contract.

3. In case that the credit institution fails to reimburse the loan and the interest, fully and

on term, Banca Naţională a României has the right to inform VISA Europe of this fact.

IV. Force majeure



V. Litigation



VI. Final provisions

1. This contract is governed by the Romanian law. Any change in the legal framework,

including the framework contract, shall result in amending this contract accordingly.

2. This contract comes into force at ...... (date)........ .

3. This contract has been concluded today ..........(date)............. in two copies, one for

each party.

BANCA NAŢIONALĂ A ROMÂNIEI …...……..….............................................


Authorised signatures Authorised signatures

Annex 2b

Framework contract

regarding loans granted for the settlement of net debit positions

No. ...... of ............

Pursuant to the provisions of the Law No. 312/2004 on the Statute of Banca Naţională a

României, of the Emergency Ordinance of the Romanian Government No. 99/2006 on

credit institutions and capital adequacy, approved with amendments and supplements by

the Law No. 227/2007, as subsequently amended and supplemented, of the Regulation

on the procedure for the management of settlement risk applicable to net settlement

systems and the facilities granted by Banca Naţională a României aiming at smoothing

the settlement in the ReGIS system, and of the ReGIS system rules.

Between Banca Naţională a României, with headquarters in Bucharest, 25 Lipscani

Street, Sector 3, represented by ...................... and by ....................,

and

......... .................................................. hereinafter “credit institution” with


headquarters in ......................, Street ........................ no. ......, registered in Registrul

Comerţului under No. ................., fiscal code ................., represented by .....................

and by ..................., the present contract has been concluded.

I. Object of contract

The object of the present contract is the granting of a collateralised credit by Banca

Naţională a României for the final settlement in the ReGIS system of the net debit

position of the credit institution, in case that, at the moment established in the ReGIS

system rules, the credit institution does not hold the funds necessary for the settlement

in ReGIS of its net debit position, as calculated by the card payment system

administrated by MasterCard International.

II. Lending requirements

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1. The credit granted shall not exceed the value of the uncovered net debit position of

the credit institution, calculated by the card payment system administrated by

MasterCard International.

2. The credit granted by the Banca Naţională a României shall be guaranteed by

MasterCard International according to the contract between Banca Naţională a

României and MasterCard International.

3. The credit period is 3 calendar days.

4. The interest rate on this loan shall be the interest rate for the Lombard credit, as

published on the Banca Naţională a României contributor’s pages in Reuters and

Telerate systems, plus 3 percentage points.

5. The interest on this loan shall be paid at the time of the loan reimbursement.

6. In case the maturity date of the loan is a non-operating day for the ReGIS system, the

loan shall be reimbursed on the next operating day of the system.

III. Rights and obligations of the parties

1. The credit institution has the right to receive funds from Banca Naţională a României

through the lending facility for ensuring the settlement of net debit positions and the

obligation to reimburse those funds, under the conditions agreed by the parties in this

contract.

2. Banca Naţională a României has the obligation to grant the loan at the end of the

ReGIS operating day and the right to be reimbursed at the maturities and under the

terms of this contract.

3. In case that the credit institution fails to reimburse the loan and the interest, fully and

on term, Banca Naţională a României has the right to inform MasterCard International

of this fact.

IV. Force majeure



V. Litigation

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VI. Final provisions

1. This contract is governed by the Romanian law. Any change in the legal framework,

including the framework contract, shall result in amending this contract accordingly.

2. This contract comes into force at ...... (date)........ .

3. This contract has been concluded today ..........(date)............. in two copies, one for

each party.

BANCA NAŢIONALĂ A ROMÂNIEI …...……..….............................................


Authorised signatures Authorised signatures

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