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					               Master Agreement for the Provision of the Intraday Credit


Česká národní banka                and             The Bank
Na Příkopě 28                                      Address
115 03 Prague 1                                    ID No.
ID No. 48136450                                    Entered in the Commercial Register kept by
(hereinafter referred to                           the ... Court in ..., Section ..., Entry ...
as the “CNB”)                                      (hereinafter referred to as the “Participant”)

enter into this Master Agreement for the Provision of Intraday Credit (hereinafter referred to
as the “Master Agreement”) on the month, day and year set out below.

I. General Provisions
1. For the purposes of smooth settlement of payments in the CERTIS system, the CNB shall
   be entitled under this Master Agreement to provide the interbank clearing Participant, for
   which a clearing account is maintained in the CERTIS system, with the intraday credit at
   the Participant’s request.
2. The Participant shall have no legal entitlement to the provision of the intraday credit and
   the CNB shall be entitled to refuse to provide such intraday credit.
3. Individual agreements for the intraday credit (hereinafter referred to as “Transactions”)
   and for the Lombard repo shall be concluded under this Master Agreement. The Lombard
   repo shall be governed by the Master Agreement for Financial Transactions concluded
   between the CNB and the Participant on ..... (hereinafter referred to as the “Master
   Agreement for Financial Transactions”). The intraday credit shall consist of the sum of
   monetary amounts provided to the Participant under all Transactions concluded on the
   same day.
4. The intraday credit, which is repaid on the same day on which it has been provided, shall
   not bear interest charges.
5. The intraday credit shall be secured by a security interest in securities registered on the
   securities owner account that maintained by the CNB for the Participant in the Short-Term
   Bond System (hereinafter referred to as the “SKD”). This Master Agreement, together
   with the conditions agreed for individual Transactions, shall simultaneously constitute a
   financial collateral arrangement pursuant to Article 323a et seq. of Act No. 513/1991
   Coll., the Commercial Code, as amended (hereinafter referred to as the “Commercial
   Code”). The financial collateral arrangement shall arise at the moment when the CNB
   accepts a request for the provision of, or an increase in, the intraday credit.
6. The Participant’s procedures and instructions associated with the provision of, an increase
   in, repayment of, or a decrease in, the intraday credit, and procedures associated with the
   financial collateral arrangements for the intraday credit shall be specified in the SKD
   Rules. All persons authorised to enter instructions into the SKD shall be entitled to submit
   a request pursuant to Article II(4)(b).

II. Request for the provision of the intraday credit
1. The Participant shall submit a request for the provision of, or an increase in, the intraday
   credit in the form of an instruction for the provision of, or an increase in, the intraday
   credit. Should the financial collateral be made up of securities substitutable with those
   which the Participant has already provided on the same day as financial collateral under
   the Transaction, where such Transaction has not been repaid, this new request shall be


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   deemed a request for an increase in the intraday credit under the original Transaction.
   Should other securities be provided as the financial collateral, such new request shall be
   deemed a request for an increase in the intraday credit under a new Transaction.
2. The CNB shall provide the intraday credit equal to the market value of the securities
   registered in the Participant’s account in the SKD and provided as the financial collateral,
   adjusted by the coefficient specified by the CNB before the start of the SKD accounting
   day. The market value of the securities shall be determined by the CNB in accordance
   with the SKD Rules. The list of securities accepted by the CNB as the financial collateral
   shall be published in a manner enabling remote access.
3. The request for the provision of, or an increase in, the intraday credit shall be accepted by
   the CNB at the moment when the CNB provides the Participant with the funds drawn in
   the form of the intraday credit, i.e. when it transfers the funds to the Participant’s clearing
   account maintained in the CERTIS System, subject to the Participant having provided
   adequate financial collateral, i.e. the security interest in the securities having been
   registered in the SKD.
4. A request for the provision of, or an increase in, the intraday credit, shall simultaneously
   be deemed:
       a. an instruction to transfer an amount equal to the outstanding part of the intraday
           credit from the Participant’s clearing account to the clearing account of the CNB,
           the effect of which shall be subject to non-repayment of the intraday credit in full
           before the start of closure of the CERTIS accounting day,
       b. a request to execute a Lombard repo maturing on the subsequent working day
           (O/N maturity) in an amount equal to the outstanding part of the intraday credit
           from the given Transaction under the conditions stipulated in the Official
           information of the CNB on the manner of execution of the CNB’s operations on
           the domestic money market, as amended, the effect of which shall be subject to
           non-repayment of the intraday credit from the given Transaction in full by the end
           of the CERTIS accounting day; and
       c. an instruction to transfer the securities provided as financial collateral under the
           given Transaction and not returned as a result of partial repayment of the intraday
           credit, to the asset account of the CNB, the effect of which is subject to execution
           of a Lombard repo.

III. Decrease in the intraday credit
1. The Participant shall be entitled to decrease the amount of accepted the intraday credit at
   any time by partial repayment thereof. Partial repayment of the intraday credit shall be
   performed by the Participant in the form of an instruction to decrease the intraday credit in
   the SKD.
2. Should the disposable funds in the Participant’s clearing account be insufficient to cover
   the full repayment of the intraday credit under Article IV(1)(b) during closure of the
   CERTIS accounting day, the CNB shall automatically transfer the outstanding amount of
   the intraday credit through the CERTIS system from the Participant’s clearing account to
   the clearing account of the CNB up to the amount of the disposable balance on the
   Participant’s clearing account.
3. Simultaneously with the decrease in the intraday credit referred to in (1) and (2), the CNB
   shall return to the Participant part of the provided financial collateral equal to the repaid
   part of the intraday credit.




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IV. Repayment of the intraday credit
1. The Participant shall repay the intraday credit in full on the day it was provided. The
   following shall be deemed repayment of the intraday credit:
   a) settlement of an instruction to repay the intraday credit during the SKD accounting
        day;
   b) automatic transfer of the outstanding amount of the intraday credit from the
        Participant’s clearing account to the clearing account of the CNB;
   c) repayment by offsetting of the CNB’s claim under (7).
2. Repayment of the intraday credit under (1)(a) shall be performed by the Participant in the
   form of an instruction to repay the intraday credit in the SKD no later than at the start of
   closure of the CERTIS accounting day.
3. Repayment of the intraday credit under (1)(b) shall be performed automatically by the
   SKD during closure of the CERTIS accounting day, unless the intraday credit has been
   repaid under (1)(a) by that time.
4. Immediately on receipt of payment from the participant, the CNB shall return the financial
   collateral provided.
5. Should the Participant fail to repay the intraday credit in full before closure of the
   CERTIS accounting day in accordance with (1)(a) or (1)(b), the CNB shall accept the
   Participant’s request to execute a Lombard repo (Article I(4)(b)) in an amount equal to the
   outstanding part of the intraday credit, or requests to execute Lombard repos in an amount
   equal to the outstanding parts of the intraday credit provided under individual
   Transactions where the outstanding intraday credit has arisen under several Transactions.
   For the sake of preventing doubts, it shall be stated that this form of execution of the
   Lombard repo is in accordance with Article 2(1) of the General Provisions of the Master
   Agreement for Financial Transactions. The provisions of the first sentence shall not apply
   if the CNB proceeds according to Article V of this Master agreement.
6. Under a Lombard repo maturing on the following working day (O/N maturity), the CNB
   shall repurchase the securities securing the outstanding part of the intraday credit for an
   amount equal to the outstanding part of the intraday credit, or the securities securing the
   outstanding part of the intraday credit from individual Transactions for an amount equal to
   the outstanding part of the intraday credit from the given Transaction. The repurchase
   price under a Lombard repo shall be calculated using the CNB’s Lombard rate effective
   on the date of the execution of the Lombard repo and the act/360 day-count convention.
7. The funds to be paid to the Participant as the purchase price under the Lombard repo shall
   be offset by the CNB against its claim on the Participant arising from the intraday credit.

V. Satisfaction of the CNB’s claim on the Participant from the financial collateral
1. The CNB shall satisfy its claim on the Participant by sale or appropriation of the financial
   collateral pursuant to Article 323c of the Commercial Code if the Participant has failed to
   repay the provided intraday credit in full under Article IV(1) and, at the same time:
       a. the Participant has ceased to be eligible to be a financial collateral provider under
           Article 323a(3) of the Commercial Code;
       b. the Master Agreement for Financial Transactions between the parties to this
           Master Agreement has ceased to be effective;
       c. the licence granted under a special legislative act has been withdrawn from the
           Participant; or
       d. insolvency, bankruptcy, reorganisation or composition proceedings or any other
           proceedings with similar legal effects have been commenced.



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2. The valuation of financial collateral for the purposes of appropriation shall be performed
   by the CNB by discounting the nominal value of the security. The discount period shall
   start on the date of valuation and end on the date of maturity of the security. The interest
   rate used by the CNB for discounting shall be the last available PRIBOR rate for the
   maturity period equal to the discount period. If such rate is not available, the CNB shall
   calculate it by interpolating two PRIBOR rates (for the nearest shorter and nearest longer
   maturity).
3. Should the value of the financial collateral exceed the value of the secured claim of the
   CNB, the difference shall be transferred to the Participant to an account specified by the
   Participant.

VI. Final provisions
1. This Master Agreement shall be executed for an unlimited period. This Master Agreement
   shall come into force and effect on the date it is signed by both contracting parties.
2. Any amendments or additions to this Master Agreement may be made only in the form of
   written appendices numbered ascendingly and signed by both contracting parties.
3. This Master Agreement shall be terminated by mutual agreement of the contracting parties
   or upon notice given by either of the contracting parties. The period of notice shall be
   three working days and shall start on the first day following service of the notice.
   Termination of this Master Agreement shall be without prejudice to any claims for
   damages made by the contracting parties in compliance with the generally binding legal
   regulations.
4. This Master Agreement is executed in two counterparts in the Czech language. Each
   contracting party shall receive one counterpart. Both counterparts shall have the validity
   of an original.
5. This Master Agreement shall be governed by the laws of the Czech Republic, in particular
   the relevant provisions of Act No. 513/1991 Coll., the Commercial Code, as amended, Act
   No. 40/1964 Coll., the Civil Code, as amended, and the provisions of Act No. 591/1992
   Coll., on Securities, as amended.



In Prague on...............................                       In Prague on...................................



..............................................................    ..................................................................
                 Karel Bauer                                                                  Name
                    Director                                                                Position
   Financial Markets Department




..............................................................    ..................................................................
                Petr Frydrych                                                                 Name
                    Director                                                                Position
         Interventions Division




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posted:4/17/2010
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