9/27/23

Emergency Weather Events in the Provinces of Parma, Reggio Emilia, Modena, Bologna, Ferrara, Ravenna, and Forlì Cesena: Customer Support Initiatives

Banca Progetto is standing by its customers to overcome the emergency resulting from the exceptional meteorological events that occurred from July 22 to July 27, 2023, in the territory of the provinces of Parma, Reggio Emilia, Modena, Bologna, Ferrara, Ravenna, and Forlì Cesena, activating the legally mandated measures.

Banca Progetto has implemented the measures provided for in the Ordinance of the Head of the Department of Civil Protection (OCDPC) dated September 15, 2023, No. 1.022, published on the Civil Protection Department's website (https://www.protezionecivile.gov.it/it/normativa/ocdpc-n-1022-del-15-settembre-2023/) and currently being published in the Official Gazette, regarding the suspension of mortgage payments following the declaration of a state of emergency (resolved on August 28, 2023).

In particular, Article 9 ("Suspension of Mortgages"), paragraph 1, of the Ordinance has stipulated that the aforementioned event constitutes force majeure within the meaning and effects of Article 1218 of the Civil Code. With Resolution of the Council of Ministers of July 22, 2024 - published on the website of the Department of Civil Protection https://www.protezionecivile.gov.it/it/normativa/delibera-cdm-del-22-luglio-2024-regione-emilia-romagna/ and in the Official Gazzetta, the state of emergency is extended for a further twelve months

In this regard, it is provided for individuals holding mortgages related to evacuated buildings or engaged in commercial and economic activities, including agriculture, carried out in the same buildings, to have the right to request from credit institutions and banks, upon presentation of a self-certification of the damage suffered, the suspension of the installments of the same mortgages until the habitability of the said property and, in any case, not beyond the date of cessation of the state of emergency (August 28, 2025), choosing between:

• the suspension of the entire installment.

• the suspension of only the principal portion.

Customers can, therefore, request the suspension of payment from the Bank by submitting the relevant request (see Annex 1) accompanied by a self-certification made in accordance with Presidential Decree of December 28, 2000, No. 445, and subsequent amendments (see Annex self-certification).

The total amount suspended must be repaid to the Bank without additional charges or fees in terms of commissions or processing fees. The maturity of the mortgage will be extended for a period corresponding to the suspension period.

In the case of the suspension of only the principal portion, the borrower will pay the Bank, for the duration of the suspension months, an installment of interest only, calculated on the remaining principal debt, at the interest rate and according to the terms stipulated in the contract.

In the event of the suspension of the entire installment (principal portion + interest portion), the accrued and suspended interest during the period, which does not generate additional interest, will be divided into equal amounts over the subsequent due installments and will be entirely due in the event of the mortgage's repayment or substitution.