GENERAL TERMS OF FINZO

1. IN GENERAL

Finzo OÜ (Finzo) and its website www.finzo.fi make up an online customer service package, which offers its registered Members an opportunity to offer a loan, apply for a loan and to conclude credit agreements between them (so called peer-to- peer loans). To be registered in the Finzo system the Creditor and the Borrower must always first agree with the General terms and conditions, which constitutes a binding contract between Finzo and its Members. Finzo is only a side according to these General terms and conditions, not a Side of the Credit agreement, and therefore acts solely as a brokerage service between the Creditor and the Borrower. These General terms and conditions do not constitute an agreement between all three parties: Finzo, the Creditor and the Borrower.

In addition to the General terms and conditions Members must also accept Specific terms of the Credit agreement, which together with General terms and conditions constitute a Credit agreement between the Creditor and the Borrower.

2. DEFINITIONS

Below are the definitions of the terms used in the Finzo membership and client System.

Customer's deposit account – a deposit bank account operated and managed by Finzo, of which Finzo pays means according to the Credit agreement to the Members and to which Finzo deposits means of the Creditors and the means paid back by the Borrowers.

Specific terms – specific terms and conditions between the Creditor and the Borrower, which form part of the Credit agreement.

Member – A person, who has registered in the System with the purpose of applying for a loan according to the General terms and conditions. However, the member is not obliged to make credit agreements in the System. In case Member has not made any credit agreements within six (6) months since acceptance of the General terms and agreements, then the Member will be automatically deleted from the System.

Creditor – Adult and identified in a reliable way Member, who has a permanent residence in Finland or any other EU/ETA country and who has accepted the General terms and conditions and Specific terms of the Creditor and also deposited financial means to Finzo's Customer's deposit account with an aim to lend them to the Borrower or Borrowers registered in the System.

Specific terms of the Creditor – Agreement terms specific to Creditor, in accordance to them Creditor has authorized the System to provide a Credit agreement to the Member applying for a loan.

Borrower – A member, who is at least 21 years old and identified in a reliable way, who has a permanent residence in Finland or any other EU/ETA country and whose credit rating has been approved during the control check and who has also accepted Finzo's General terms and conditions as well as has applied for a loan in the System.

Specific terms of the Borrower – specific agreement terms specified by the Borrower, under which the Borrower is ready to make a Credit agreement through the System.

Credit offer – the credit offer made through the System to the Member applying for a loan with an intention to make a Credit agreement according to the terms between the Creditor and the Borrower.

Credit application form – Borrower's application for a loan through the Finzo System in accordance with the terms applicable to the Finzo members.

Credit agreement – agreement package between the Creditor and the Borrower, which contains the terms about the credit granting, payments and repayments according to the specific terms of the Creditor and the Borrower. The Credit agreement consists, as a whole, of the Creditor's and the Borrower's specific terms and the General terms and conditions they accepted.

Mobile certificate – A service provided by the Finnish mobile operators, which helps to check the member's identity when registering with the System and which he/she uses when making payments between the Virtual account in the System and the bank account. The mobile certificate meets all requirements of a strong electronic identification.

Party – a Member who has signed down the Credit agreement, either a Creditor or a Borrower. To clarify the matter we repeat that the service Provider is not a party to the Credit agreement but merely a provider of the brokerage service.

System – Finzo OÜ's online service www.finzo.fi, which is used by the service Provider to manage the Member database, the Credit Offers and Agreements between the Members and related events.

Service provider – Finzo OÜ, Posti street 30, 90504 Haapsalu, Estonia. (Finzo). Tartu's trade register nr: 12781600
Contact information of the Customer service:
Phone number: +358 (0) 400242801
e-mail: asiakaspalvelu@finzo.fi
website: www.finzo.fi
Finzo has been added to the register maintained by the Administration of the Southern Finland to control and register the credit organisations and organisations providing peer-to-peer credit services.

Bank identifier code – Member's own individual Tupas-ID, which is used to recognize the Member's identity during the registration in the System and which he uses to perform payments between the Virtual account and the bank account. Tupas-ID meets all requirements of the strong electronic identification.

Investment account – Creditor's virtual account in the System, whereby the Creditor may specify the allocation of its investment funds to the Virtual account with the aim to provide individual Credit agreements and to determine the repayment terms of such agreements.

Virtual account – A member's personal account in the System where all transactions under the Credit agreement/agreements are performed and through which the Member can transfer the means between the Virtual account and the bank account. Use of the Virtual account is also a way to manage the repayment instalments, the possible delays in payments and sanctions due to the delays.

3. REGISTRATION AND AUTHORIZATION

3.1. The identity and credit history of every new Member is checked upon Member's registration with the System. During the registration process Finzo requires the Members to provide their ID number, address and phone number as well as requires users authentication using the bank ID or Mobile certificate. A Member must use such a strong identifying method to ensure that Finzo can secure the Member's identity and to ensure the security of Finzo's services. Members also use their electronic identification when signing down and accepting these General terms and conditions and the Credit agreement.

3.2. By registering with the Service and accepting these General terms and conditions the Member authorizes Finzo to act as a representative in all matters related to the Credit agreement, including the right to take any necessary actions on the Creditors behalf to recover outstanding debt (the breach of the agreement). This includes the right to transfer any outstanding claims to a third party, such as debt collection agency. Any costs incurred by the breach of contract must be carried out by the Borrower.

In the event of breach of the contract, the Credit agreement may also be transferred to Finzo OÜ, with all the rights and obligations, in accordance with Section 8.3 of the General Terms and Conditions.

3.3. A Member has the right to cancel the agreement with the service Provider during 14 days period after accepting the General terms and conditions by notifying the service Provider about that in a written form, The cancellation condition is that the Member has fulfilled the General terms and conditions¨and possible obligations to the service Provider, other Members and third parties.

4. VIRTUAL ACCOUNT AND TRANSFER OF PAYMENTS

To be able to apply for the credits, make credit offers and conclude agreements the Member must have a Virtual account, which is opened during the process of registration.

4.1. A Member agrees to keep secret his/her registered username and password and to handle them carefully so that they don't end up used by others. Member's obligations are stated in the chapter 10 of the General terms and conditions.

4.2. The Member must have an account in at least one bank in Finland as well an online banking service agreement along with the bank identifiers. Bank identifiers are used in the process of strong identification during the Member's registration and for allowing the payment transactions between Member's bank account and Virtual account. The process of strong identification might be performed also with the use of the Mobile certificate.

4.3. The funds deposited to the Member's Virtual accounts will be directed to the Customer's deposit account maintained by Finzo, where funds belong exclusively to the Members.

4.4. Parties agree that the service Provider may charge all valid fees and costs from the Borrower's Virtual account according to Credit agreement and the Finzo's price list. Price list on all services is available in the Finzo's System.

4.5. The Borrower understands that the fees and costs according to the Finzo's service price list are a part of brokerage services provided by the Finzo and do not lessen neither the credited amount, neither the interest rate in accordance with the Credit agreement.

5. CONCLUSION OF THE CREDIT AGREEMENT

5.1. The Credit agreement between the Creditor and the Borrower (Parties) consists of a package of terms with an integral part made up of General terms and conditions and the Specific terms and conditions signed down independently by both Parties. The General terms and conditions are signed down when registering with the System and they are an integral part of the agreement. General terms and conditions must be also re-signed if at least six (6) months has passed since the last login into the System or if the service Provider has made changes to the terms.

5.2. The Creditor signs down Creditor's specific terms and after that, in accordance with the terms, the System generates the Credit offer to the Member applying for the credit.

5.3. The Member applying for the credit signs down Creditor's specific terms and after that the System sends him the Credit offer in accordance with the terms.

5.4. The System creates the Credit agreement according to the chapters 5.2 and 5.3 as a whole package of Specific terms and conditions and Genetal terms and conditions.

5.5. The Credit agreement contains following information, in accordance with the Consumer Protection Act:

5.5.1. Creditor's name, ID number, address, terms of agreement (the credited amount, interest rate and repayment schedule) as well as the date and time of signing down the specific terms of the Creditor.

5.5.2. Borrower's name, ID number, address, the credit score of the Borrower provided by the service Provider (based on the credit history), Virtual account number, terms of the agreement (the credited amount, interest rate and repayment schedule), real annual interest rate and the date and time of signing down the specific terms of the Borrower. In addition, the Credit agreement contains information about the use of the right to withdraw from the agreement, the termination of the agreement and information about measures towards securing the rights and about supervisory authorities.

5.5.3. Name and address of the service Provider.

5.6. The binding Credit agreement is concluded between the Parties the moment the Borrower signs down the Credit agreement in the System and the System has sent the Parties terms of the agreement as the Credit agreement (.pdf file).

5.7. When the Credit agreement binding the Parties is concluded according to the chapter 5.6, then the service Provider charges the credited amount (agreed upon in the Credit agreement) from the Creditor's Virtual account and transfers it to the Borrower's Virtual account. After this event the Creditor has fulfilled its obligations accoring to the Credit agreement and transferred the loan amount to the Borrower.

5.8. The Borrower has the right to transfer the credited amount from the Virtual account and take it for his own use.

5.9. By signing down the General terms and conditions both Parties agree with the valid, published in the System service fees and other fees as well as give the service Provider the permission to automatically debit them from their Virtual accounts.

5.10. The Parties are aware that the Credit agreement has been concluded between individuals and that Finzo OÜ acts solely as a broker for the Credit agreement. In case the Creditor is a legal person this representative confirms that the Creditor's main activity is not in a field covered by the Act on the prevention and determination of money laundering and financing of terrorism in chapter 2§ and that the Credit agreement has been concluded as an occasional and restricted measure within the terms of chapter 4§ of the said Act. As a result of the breach of the aforementioned declaration the Creditor has an independent obligation to adopt the measures imposed by the abovementioned Act.

6. REPAYMENT OF THE CREDIT

6.1. The Borrower pays the credited amount and an interest rate to the Creditor in the instalments agreed upon in the repayment schedule of the Credit agreement.

6.2. The Borrower must make sure that there are sufficient means on his Virtual account to cover the repayment agreed upon in the repayment schedule at the due date at the latest.

6.3. The service Provider will automatically charge the payment from the Virtual account of the Borrower in accordance with the due dates and transfer it to the Virtual account of the Creditor.

6.4. The Borrower confirms that he got acquainted with the credit repayment terms available in the System and accepts that the Borrower may, if he wishes so, extend the repayment period of the loan or transfer the due date of the payment instalment according to these terms.

6.5. The Borrower agrees that along with the extending of the repayment period or with transferring the due date he agrees that the service Provider will charge the service fees according with the price list in the System.

7. CREDIT INTEREST RATE AND COSTS

7.1. The interest rate on the credit (fixed percentage for the entire credit period) is to be agreed upon in the Credit agreement. Interest rate is calculated from the amount remaining until the last due date.

7.2. The interest rate is calculated daily as a real annual interest rate (365 days a year).

7.3. In case the full repayment of the loan or payment instalment is delayed from the due date without any separate agreement as mentioned in chapter 6.4 and 6.5, then the Borrower is charged the penalty fee (interest rate on the delayed payment) starting from the repayment's or payment instalment's due date, in accordance with 4§ and 5§ of the Interest Act. If the before mentioned interest rate on the delayed payment is smaller than the interest rate payable on the debt for the period prior to the due date, then the interest rate on the delayed payment shall be payable on the same basis for a maximum of 180 days from the date on which the loan is fully due. If a court judgement on the loan is issued before the end of that period, then the interest rate is to be paid on the same basis as it should be before the due date for the judgement.

7.4. The service Provider will charge the costs related to the Credit agreement or any fees for the payments passing the due date in accordance with the current price list in the System.

8. VALIDITY OF THE CREDIT AGREEMENT

8.1. The Credit agreement ends when the Borrower has fully fulfilled its obligations under the Credit agreement and repaid the credited amount, interest rate, possible interest rate on delayed payments and other fees.

8.2. Preliminary termination of the Credit agreement does not free the Borrower from the fulfilling the terms of Credit agreement, which were accepted before the termination.

8.3. As a consequence of breach of the contract by the Borrower, Finzo OÜ has the right to cancel the Credit agreement and to demand full repayment of the loan, including interest, in accordance with the provisions of the Finnish Consumer Protection Act.

8.4. By accepting these General Terms and Conditions, the Borrower and the Creditor agree that the loan receivables, for which the contract has been concluded after 14 August 2017, may be automatically transferred to Finzo OÜ under the following conditions:

• At least one hundred (100) days have elapsed since the date the loan repayment or its instalment payment is due, and the Borrower has not fulfilled its contractual obligations (breach of contract)
• In the event of breach of the contract, such Credit agreement may be automatically and entirely canceled and, with all the rights and obligations, transferred to Finzo OÜ.
• Upon completion of the transfer, Finzo OÜ as the new creditor has the right to transfer the receivables under the Credit agreement to a third party or to hire a third party such as a debt collection agency for the loan recovery.
• Upon completion of the transfer, Finzo OÜ shall be obliged to pay to the Lender at least 60% of the outstanding principal amount of the transferred Credit agreement.

Repayment to the Creditor shall be made to this Virtual account on the same day as the Loan contract has been transferred to Finzo OÜ.

9. PRELIMINARY BREAKAGE OF THE CREDIT AGREEMENT

9.1. The Borrower has the right to repay the loan in full before its due date using the System.

9.2. In order for the loan to be fully repaid, the Borrower shall ensure that there are sufficient means on its Virtual account to cover the remaining amount, interest rate, interest rate on any delays as well as service fees and other fees in their entirety.

9.3. If you want to terminate the Credit agreement before its original due date, then you should file an application for that through the System.

10. MEMBER'S GENERAL OBLIGATIONS

10.1. The Member is obliged to use the System in a good manner and in accordance with the prevailing general morals and current legislation.

10.2. A Member must make sure that he has a valid and functioning electronic bank ID or a Mobile certificate so that Member's identity can be checked.

10.3. The Member is obliged to keep his personal and contact information up-to-date in the System and to make sure that the service Provider can contact the Member using that information without any unnecessary delays.

10.4. The Member is obliged to take care of their personal information and their username, password and PIN codes received through the System with the utmost care so that they don't happen to be used by others. The Member must immediately notify the service Provider in case the Member has any reason to suspect that the aforementioned information might be used by others or there might have been loss of any information. The Member is responsible for any damages incurred by Finzo, which were caused due to negligent or deliberate handling of information and happened before the Member has notified the service Provider about the loss of information or the use of it by others.

10.5. Member may be held responsible for the damage, which occurred to the service Provider or others due to the actions against the General terms and conditions or due to violation of these terms.

10.6. A member shall without any undue delay notify the service Provider, if there happened any changes to the personal information (name, home address, phone number, bank information or any other information given during registration in the System) he gave during registration. Changes can be made in the System.

10.7. The service Provider reserves the right to prevent any events in the System, at its sole discretion, in case he suspects the request might come from other than the Member itself or, if the service Provider suspects any other misuse.

10.8. Membership and the Virtual account are personal and the rights and obligations related to them cannot be transferred, assigned or pledged to any third party. Finzo reserves the right to assign or pledge the rights and obligations given by these General terms and conditions to third party.

11. PROTECTION OF THE PERSONAL INFORMATION AND RESPONSIBILITY FOR THE PROVIDED SERVICE

11.1. By accepting these General terms and conditions the Member gives the service Provider the right to register the personal information to the client database in the System.

11.2. The service Provider is responsible for ensuring that processing of personal information complies with applicable laws and regulations. The service Provider confirms that a register notice required by the law has been filled in with the person responsible for data protection due to having a client database.

11.3. The service Provider may use the Member's personal information for its own direct marketing purposes. Member may still refuse that by notifying about that in the System.

11.4. The service Provider may use the Member's personal data only for the purposes set forth in these General terms and conditions in accordance with 2:6§ of the Personal Data Act.

11.5. The service Provider is responsible for ensuring the confidentiality of Members' personal data in accordance with applicable legislation and official requirements.

11.6. The service Provider is required to discard any information that is not necessary for the purpose of its activity, unless the need for retention of the information has been expressed.

12. THE BREAKAGE OF THE MEMBERSHIP AND THE CLOSING OF THE VIRTUAL ACCOUNT

12.1. Member has the right to close the Virtual account and terminate the membership at any time in case the Member does not have any unresolved obligations to other Members or the service Provider. When closing a Virtual account Member cannot have any ongoing Credit agreements or offers and the balance on Member's Virtual account must be zero.

12.2. Membership is terminated in the System or by sending a notification to the service Provider by e-mail asiakaspalvelu@finzo.fi

12.3. The service Provider has the right to limit the Member's use of Virtual account or terminate the Membership and close the Virtual account in the following cases:

12.3.1. The Member has violated the obligations agreed with by accepting General terms and conditions.

12.3.2. The Member has failed to meet the conditions of the General terms and conditions.

12.3.3. The Member has given misleading information to the service Provider or other Members.

12.3.4. The Member has gone bankrupt.

12.3.5. The Member has passed away.

13. THE TRANSFER OF THE ACCOUNT AND RIGHTS COMPLYING WITH THE ACCOUNT

13.1. Member's Virtual account is individual and the Member cannot transfer, assign or pledge it to any third party.

13.2. A Member shall also be not entitled to assign or pledge any of these General terms and conditions as well as any rights or obligations imposed by the terms of Credit agreement to any third party.

13.3. If there is a case that the Member is a legal person, a trader or an entrepreneur, then by signing down the Credit agreement he confirms that he has the full right to represent the company and to conclude binding agreements on its behalf.

13.4. The service Provider reserves the right to assign or pledge the rights and obligations imposed by these General terms and conditions to a third party.

14. DIVISION OF RESPONSIBILITY

Finzo is not responsible for any damages, which can happen due to the loss of internet connection or any other electronic communication errors, which can prevent from logging into the System or Virtual or Investment accounts, provided that Finzo has followed the norms of taking care of its activities. Finzo is also not responsible for damages as a result of incorrect personal information provided by Member. In no event shall Finzo be responsible for any damages incurred by Members or third parties.

Finzo is not responsible for any damages as a result of national legislation or decisions by the authorities, military actions, inadequate performance of general telecommunication systems, strikes, blockades, boycotts, lockout or any other similar situation (force majeure). Limits due to strikes, blockades, boycotts and lockout are also valid if that is the case for Finzo or Finzo is involved in the conflict.

If any of the above events prevents Finzo from taking measures such as payments or other services provided to the Members, then measures are to be performed as soon as the obstacles have ceased.

15. CHANGES IN THE GENERAL TERMS AND CONDITIONS

Finzo reserves the right to change these General terms and conditions without the prior consent of the Members. Changes to the General terms and conditions shall be notified to the Member beforehand in written form by e-mail or by any other way of electronic communication. The Member then has the right to terminate his membership and close the Virtual account immediately under the terms provided in chapter 12.

16. APPLICABLE LAW AND SOLUTIONS TO THE CONFLICT SITUATIONS

16.1. The service Provider is responsible for observing good credit practices as well as operating in compliance with the current legislation and regulations.

16.2. The Finnish law shall be applied in case of conflicts on the subject of the General terms and conditions and Credit agreements as well as in case of conflicts between the Member and Finzo OÜ.

16.3. If a Member's loan conflict cannot be settled by negotiation, then it may be settled in Finland in the general court of first instance, in accordance to the jurisdiction in which the Borrower's permanent residence is registered.

16.4. Alternatively, the conflict referred to in chapter 16.2 may be also settled through the Consumer's Dispute Board (www.kuluttajariita.fi). Before submitting the matter to the Consumer's Dispute Board Member should contact the local magistrate's consumer counselling (www.kuluttajaneuvonta.fi).

16.5. In Finland regulations for providing financial services are stated in the Consumer Protection Act chapter 6a.

16.6. In Finland consumer's credits are regulated in accordance to the Consumer Protection Act chapter 7.