What is a Conditional payment?

CONDITIONAL PAYMENT payment is a settlement between individual and legal entities for the purchased-sold assets authorizing the Bank to transfer the Customer’s funds for the intended to be bought assets into transferred the Bank’s inner account into the Seller’s bank account after the Customer submits the main purchase-sales agreement. Conditional payment may be performed into LTL, EUR or USD currency.

Conditional Payment - security and settlement guarantee:
• to the Customer - security as it is not necessary to bring cash; transaction guarantee as it is not necessary to transfer funds before an asset purchase-sales agreement;
• to the Seller - security as it is not necessary to take cash; risk of false money is avoided; settlement guarantee as settlement does not need to be postponed (waiting for funds) after signing an agreement.

How to perform a settlement via conditional payment?
1. A trilateral agreement among the Customer, Seller and the Bank is entered.
2. The Customer transfers the amount of funds sufficient to cover the settlement with the Seller into the Bank’s inner account.
3. The Bank is keeping the funds on the account until the term defined in the Conditional Payment Agreement.
4. The Seller provides the Bank with the main asset purchase-sales agreement prior to the term defined in the Conditional Payment Agreement. The Bank transfers the funds paid by the Customer into the Seller’s account. In case the Seller does not provide the main asset purchase-sales agreement prior to the term defined in the Conditional Payment Agreement, the funds are returned to the Customer.

Fess applied to conditional payments