Currency Swap Agreement - Sturlugata 8 ehf. and Islandsbanki-FBA hf.
Currency Swap
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Contract Identification: 0500/GMVT/01122701
Contracting parties: Sturlugata 8 ehf., State Reg. No.
581201-2490, Sturlugata 8, 101 Reykjavik,
hereinafter referred to as the Customer and
Islandsbanki-FBA hf., State Reg. No.
550500-3530, Kirkjusandur 2, 155 Reykjavik,
hereinafter referred to as the Bank.
Contract Date: 21 December 2001
First interest day: 1 January 2002
Final date: 1 December 2008
Exchange of amounts during the The Contracting Parties pay their principals
term of the Contract: in 7 equal instalments annually, starting on
1 December 2002.
Customer commitment:
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Principal: Currency Foreign amount Initial Initial ISK
conversion value Equivalent
<S> <C> <C> <C> <C>
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USD 13,789,027.87 101.53 1,400,000,000.-
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Total ISK 1,400,000,000.-
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Interest term 3 months at a time
First due date
Interest 1 March 2002.
Instalments 1 December 2002
Instalments The above principals shall be paid in 7 equal
instalments annually.
Rate of interest LIBOR-BBA in accordance with the below +
2.85% margin annually
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Initial rate of interest Currency Base interest Margin (%) Total interest (%)
rate
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<S> <C> <C> <C> <C>
USD 2.85
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The interest determination will be 28 December 2001
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Banking day rule The following banking day.
Day rule A/360 and 30/360 for ISK.
Payment terms The Bank shall withdraw from the account of
the Customer on the due dates as follows:
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Currency Account Number
<S> <C> <C>
USD xxx-38-xxxxxx
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Bank's commitment
Principal ISK 1,400,000,000.-
Indexation The principal is linked to the consumer price
index
Base index 219.5
Interest term One year at a time
First due date 1 December 2002
Instalments The above principal shall be paid in 7 equal
instalments. Due dates of instalments and
interest are the same.
Rate of interest The fixed interest rate is 8.5% per year.
Banking day rule The following banking day.
Day rule 30/360
Payment terms The Bank shall deposit on the Customer's bank
account No. xxx-xx-xxxxxx on the due dates.
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Gjaldmiolaskiptasamningur Sturlugotu 8 ehf. Numer:0500GMVT01122701
og Islandsbanka-FBA
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General terms: In the event that the losses of the Customer
as a result of the Contract exceed 50% of the
market value of the collateral placed as
security for the trading, ISFBA my require
the customer to provide security/additional
security, which ISFBA considers adequate,
within 3-7 days. The same applies even if
there is no loss on the Contract if the
market value of the collateral falls.
Requests for collateral will be made by
telephone, e-mail or fax. Notification shall
be regarded as sent to the correct address if
it has been sent to the e-mail address / fax
number supplied by the Customer. A notice
given over the telephone is regarded as being
immediately notified to the Customer.
In the event that the Customer does not
provide security/additional security within
the time limit set, ISFBA may, without any
obligation to do so, call in or terminate the
Contract without notice.
In addition to the provisions of this
Contract, the General Terms for the Market
Transactions of Islandsbanki-FBA and the
General Terms on Interest and Currency Swaps
published by the Icelandic Bankers'
Association and the Icelandic Savings Banks'
Association in February 1998 (1 Edition)
shall apply. The Customer has acquainted
himself with these terms. In the event of
conflicts between this Contract and the
General Terms the provisions of this Contract
shall apply.
Signature: In witness hereof, the parties have signed
this Contract in two identical copies, one
copy to be retained by each party. By his
signature the Customer authorises the above
account transfers. The Customer furthermore
confirms by his signature that he has
acquainted himself with the nature of
currency and interest swap contracts and that
he has had the benefit of advice from an
expert outside the Bank before he signed the
Contract.
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Reykjavik, 27 December 2001
Islandsbanki-FBA hf. Sturlugata 8 ehf.
Guomundur P Guomundsson [sign.] Tomas Sigurosson [sign.]
Porvaldur Egilsson [sign.]
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