The subject of the contract is the granting and servicing of a long-term loan in the amount of PLN 15,700,000.00 (say: fifteen million seven hundred zlotys 00/100) to cover the planned budget deficit of the Hrubieszów District and to repay previously incurred liabilities due to loans and credits.

1) the principal will be repaid in quarterly instalments in the amounts and dates specified in the repayment schedule

2) the loan will be disbursed cashless by transfer to the bank account

CONTRACTING

3) The Contractor shall leave the funds of the loan at the disposal of the Contracting Authority:

a) in full in the period: from the date of conclusion of the agreement to 31.12.2023, or

b) in tranches by 31.12.2023,

4) The Contractor allows the loan funds to be used to cover the planned budget deficit of the Hrubieszów District and to repay previously incurred liabilities

borrowings and credits;

5) Grace period for repayment of the principal until 26.03.2024

6) Interest Payment:

a) monthly interest on the loan will be repaid on the last day of each month to which they relate, with interest for the month of December 2040 together with the repayment of the principal installment;

b) The Contractor will charge interest on the amount of the loan actually used. Interest will be calculated for the actual number of days the loan is used, assuming that the year is 365/366 days long, from the date of incurring the debt under the loan to the day preceding its repayment inclusive;

(c) the first repayment of the interest instalment will be made on the last day of the month in which the first tranche is disbursed;

7) Interest rate on the loan:

a) will be based on a variable interest rate, i.e. based on WIBOR 1M as the base rate increased by the bank's margin offered. In the event of abolition/replacement

and cessation of trading of WIBOR 1M, a replacement for the key WIBOR 1M benchmark designated by the Minister responsible for financial institutions by way of a regulation will be introduced by operation of law. In view of the introduction of a replacement, the Contractor will be obliged to inform the Contracting Authority in writing about the change within 7 days from the announcement of the change and the modification of the schedule of interest instalments payment based on the newly introduced indicator (if applicable);

(b) the method of determining the base rate of interest: the rate fixed for a period of 1 month

WIBOR 1M as of the last business day of the month and applicable from

1st calendar day of the following month;

c) if the WIBOR 1M base rate set for a given period reaches a negative value, then for the purposes of calculating the interest rate it will be assumed that in a given settlement period the base rate is 0.00%, so the interest rate on the loan in this period will be equal to the bank's margin;

8) To calculate the offer price, the WIBOR 1M rate as at 29.09.2023 should be used.

in the amount of 6.04% and as the date of disbursement of the entire loan as 08.12.2023.

9) The Contractor's margin is fixed during the term of the contract;

10) The Contracting Authority does not provide for the payment of a one-off preparatory commission

on the loan granted;

11) The Ordering Party reserves the right to early repayment of all or part of the loan without incurring additional costs,

12) The Contracting Authority will not incur any additional costs, including fees and commissions related to the disbursement and servicing of the loan during the entire loan period, except for the interest rate;

13) The Contracting Authority reserves the right to use the credit in part without incurring additional fees in this respect;

14) The Contracting Authority will use at least PLN 5,000,000 of credit;

15) Settlements between the Ordering Party and the Service Provider – in PLN;

16) The Contracting Authority declares that it has no arrears towards the Social Insurance Institution and the Tax Office;

17) The Contracting Authority does not use the leasing and issuance of debt securities;

18) The repayment of the loan will be secured by a blank promissory note together with a promissory note declaration.

The Contracting Authority informs that the documentation concerning the financial situation and the documentation concerning the budget of the Hrubieszów District are available on the website of the Contracting Authority's Public Information Bulletin: http://bip.starostwo.hrubieszow.pl/.