The subject of the contract is: Granting the Municipality of Czersk a bank loan in the amount of PLN 9,970,000 to repay liabilities in 2023 resulting from loans in the amount of PLN 3,570,000 and to cover the planned deficit in the amount of PLN 6,400,000.

1.The Contractor shall grant the Employer a loan in the Polish currency in the amount of PLN 9,970,000 (in words: nine million nine hundred seventy thousand zlotys) on the terms specified in the loan agreement.

2.The contracting authority shall allocate funds from the loan to repay liabilities arising from loans taken out in 2023 and to cover the planned deficit in accordance with Article 89 section 1 points 2 and 3 of the Act of 27 August 2009 on public finances (i.e. - Journal of Laws of 2022, item 1634, as amended).

3.The subject of the contract should be completed by: 31.12.2023. However, the loan will be granted for the period from the date of conclusion of the contract until 30/04/2039.

Continued in point II.2.4)

4.The Contractor shall open a credit account at the latest on the day of conclusion of the credit agreement and shall maintain it free of charge during its term.

5.The Contractor shall open a sub-account or an account dedicated to the credit account at the latest on the day of conclusion of the contract and shall keep it free of charge during the performance of this loan agreement.

6.The Contractor shall make the credit funds available to the Contracting entity on the day of signing the contract.

7.The Contractor shall release all tranches of the loan in accordance with the instructions of the Contracting Authority without charging a commission on the unused part of the loan.

8.The Contractor shall release the credit funds in the amount and dates indicated by the Contracting Authority in the instructions submitted to the Contractor, without submitting a separate credit application subject to consideration.

9.The final date for using the loan expires on 31.12.2023.

10. The Ordering Party shall have the right to submit a written statement of resignation from further use of the loan.

11. The loan will be used in the Polish currency.

12. The amount of credit used will bear interest on an annual basis, at a variable interest rate.

13. The interest rate referred to in point 12 shall be equal to the base rate increased by the Contractor's fixed margin, determined on the basis of the submitted bid.

14. The Ordering Party's liabilities due to interest on the loan will be regulated in monthly accounting periods as the sum of the variable base rate WIBOR for PLN 1-month deposits on the interbank market, from the last quotation in the month preceding the month for which interest will be calculated, increased by the Contractor's fixed margin determined on the basis of the submitted offer.

15.Interest will be calculated on the basis of 365 days in a year, with the number of calendar days falling in a given month being assumed in a month, and each day for 1/365 part of a year.

16. The amount of the base rate (WIBOR 1 M) constituting the basis for calculating the interest rate on the loan in a given month and the amount of accrued interest for a given month, the Ordering Party shall be notified in writing by the Contractor by the 20th day of that month.

17. The Contractor's margin is fixed during the contractual loan period.

18. Interest on the credit used shall be calculated on a monthly accounting basis, according to the actual number of days of the calendar month, and shall be payable by the last working day of each subsequent month for which it is accrued, whereby:

(a) the first accounting period shall be calculated from the date of payment of the first tranche of the loan and shall end thereafter

on the last day of the calendar month,

b) the last accounting period ends on the day preceding the full repayment of the loan.

18.For each accounting period included in the contractual loan term, the borrowing rate shall be fixed.

19. The Ordering Party has the right to early repayment of all or part of the loan

within the period indicated by him, subject to prior written notification to the Contractor, which will be delivered in person or via e-mail no later than 7 days before the date of early repayment of all or part of the loan.

20. In the event of early repayment of part or all of the loan, the Contractor shall recalculate interest for the accounting period in which the repayment took place and inform the Contracting Authority in writing about the amount of interest for the current accounting period within two days from the date of receipt by the Contractor of a written notification of early repayment.

21. If the Ordering Party makes early repayment of part of the loan, the Parties will determine a new loan repayment schedule in the form of an annex to the contract.

22. Early repayment of all or part of the loan does not mean its termination.

23. The Contractor is not entitled to charge and collect any additional fees and commissions, except for fees and commissions, which will be determined in the contract.

Continued in point III.1.3)