Promissory notes

The International Bank of Development offers corporate and private customers to take advantage of a multipurpose security – the Bank’s Promissory Note.

Promissory Note is a security, which confirms an issuing bank liability, at no specific conditions, to pay to a promissory note Holder a sum specified therein at a maturity date mentioned therein. The Bank’s Promissory Note is the multipurpose financial instrument for settlements and funds accumulation. Besides, the Promissory Note can be used as the marketable collateral while loans and bank guarantees are issued.

The Bank offers the following types of Promissory Notes:

• Interest-bearing note with face value in RUR, USD and EUR (with charging interest rate to the note total amount (face value);
• Discounted promissory note with face value in RUR, USD and EUR (interest rate allowed in the face value);
• Interest-bearing/discounted promissory note with face value in RUR, USD and EUR (at cost being different to face value, with charging interest rate);
• Non interest-bearing note with face value in RUR, USD and EUR (without charging interest rate).

Promissory Note is issued as specified in the contract after the funds have been transferred to the Bank. For the purpose of such contract execution, the Customer is to submit: a Promissory Note application form and necessary documents. Promissory Note transfer to a Customer’s authorized representative is made under statement of acceptance of delivery as agreed between the Customer and the Bank.

Promissory Note can be entrusted to any person on a basis of endorsement.
Endorsement is inscribed on the reverse of a Promissory Note and it is to be verified therein with a signature by a person authorized and a seal (for corporate customers), or by a signature (for individuals) of the latest holder and/or company name, or by a new holder’s name (for individuals).

Promissory Note can be presented for payment before maturity date. In this event, the Bank has right to clear such Promissory Note at a value discounted for a payment made in advance. An amount to be discounted shall be determined by the Bank in accordance with its economic appropriateness for such transaction. The contract of purchase/sale is signed therewith.

Promissory Note redemption is executed against the bill form on a basis of redemption application form. A person, who presents a note for redemption, shall submit necessary documents.

Promissory Note transactions are subject to tax liability according to existing legislation of the . For Promissory Note discounted, the holder’s income shall be a margin between purchase and sale costs, for an Interest - bearing Note, the holder’s income shall be an interest rate paid above its face value and for an Interest - bearing/discounted note, the holder’s income shall be both a margin and interest rate paid above the face value.

Interest rate (bill discount) offered by the Bank is set according to present financial market condition.

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