Annuity payments - are regular, equal and monthly payments to indemnify mortgage debt (principal debt of the loan and calculated percentage of that debt). These payments must be calculated and allocated so that, at the end of the maturity of loan the debt could be paid.
Borrower is a citizen of the Republic of Azerbaijan, who has got mortgage loan from authorized credit institutions.
Penalty amounts/Fines - it is the amount of money, which must be paid to the lending loan institution by the debtor (co-debtor) when debtor fails to fulfill his/her obligations according to the loan agreement, or fail to fulfill properly, or fails to meet his/her obligations on time.
“E-Mortgage” system – Automated information system on mortgage lending, financing and servicing;
Benefited party – pursuant to insurance agreement, person to whom insurance payment should be made;
Young family – family formed by means of entry of persons not older than 35 years into marriage, as well as, single parent who is not older than 35 years and who has at least one child under his/her protection;
The initial payment - is resource of borrower, which has been directed to obtaining residential area. The initial payment is equal to the difference between value of residential area, which received by means of the mortgage loan and amount of mortgage loan
Mortgage – being a method ensuring fulfillment of an obligation, mortgage of real things and movable things, proprietary rights of which are registered in an official registry;
State registration of mortgage – state registration of an agreement on mortgage of real estate in state registry;
Mortgage right – in case of failure by the borrower to fulfill the obligation, the right of mortgage holder to apply deduction in the subject of mortgage;
Mortgage note – named security establishing mortgage right;
Legal owner of mortgage note – person who obtained the right of ownership on mortgage note;
Mortgage loan - is a loan given with the purpose of purchasing residential area with the conditions of being provided with the immovable property, purposeful usage, restoration, debtor’s payment and guarantee within the specified period by the authorized credit organization.
Mortgage loan guarantee (the subject of mortgage) – maintained dwelling area purchased on account of mortgage as specified by the laws and property right of which is registered in state real estate registry;
Mortgage loan refinancing– assigning rights of demands on mortgage loan allocated by attorney bank by making an endorsement to the benefit of the Fund in a mortgage note;
Mortgagor – person who mortgages a thing that constitutes the subject of mortgage. Mortgagor can be both the borrower and the third party;
Mortgage contract is contract, which have been concluded between lender (creditor, who is secured with the obligation by the mortgage) and borrower (borrower, joint borrowers).
Mortgage holder – Person who has a mortgage right and a right to require fulfillment of the principle obligation on account of the subject of mortgage more efficiently than other creditors of mortgagor, as well as legal owner of mortgage note;
Loan underwriting - is process of assessment of payment ability of borrower (joint borrower) to repay mortgage loan, also condition and value of mortgaged property.
Credit file – collection of documents reflecting information developed by attorney bank and related to mortgage loan, as well as fulfillment of loan obligations of the borrower;
Loan service – complex measures taken by the attorney bank in dealing with non-performing loans owned by the Fund, inspection of the condition of the property encumbered with mortgage, taking control over fulfillment of monthly payment obligations and insurance obligations by the borrowers and in implementation of other measures;
Loan agreement – An agreement concluded in a written form by and between the attorney bank and the borrower (borrowers). Pursuant to this agreement, the attorney bank should present funds (mortgage loan) to the borrower (borrowers) in order to purchase dwelling area on account of mortgage, the borrower (borrowers) should pay back the received funds and calculated interests to the attorney bank;
Minimum consumption basket – collection of food, non-food products and services specified under scientific norms necessary for minimum level of health and life activity of humans;
The authorized credit organization – which is included in affirmative list by The Central Bank of The Republic of Azerbaijan, and signed a Head agreement with The Azerbaijan Mortgage Fund and non-bank credit organization.
Attorney assessor – An independent assessor engaged in assessment pursuant to the existing laws, who concluded an agreement with the Fund on cooperation in assessment of the subject of mortgage and regulation of other relations arising in this concern;
Attorney insurer – Local legal entity concluded an agreement with the Fund on cooperation in the field of implementation of insurance of real estate that constitutes the subject of mortgage and or insurance against the cases of death or loss of work ability of the borrowers, local legal entity that holds a license to operate under the existing laws;
Attorney organization – attorney bank, attorney insurer and attorney assessor that concluded the agreement with the purpose of cooperation with the Fund on mortgage lending;
Insured – a party to insurance agreement who pays insurance fee, who is interested in insurance of the insured object;
Insured event – An event or a circumstance that gives a ground for making insurance payment to insured or to a benefited person under the insurance agreement, that happened during the validity period of the insurance agreement;
Insurance fee – The amount of money to be paid to the insurer by the insured pursuant to the insurance agreement against acceptance of risks and or their distribution;
Insurance amount – the end limit of the obligations of insurer on insured risks in the amount specified by insurance agreement;
Insurance agreement – agreement that establishes the terms and conditions of undertaking an obligation by the insurer to compensate for the losses relating the risks that may be exposed to the insured object, for the damage caused and or the agreed amount when a certain insured event happens;
Insured – person whose proprietary interests are insured pursuant to the insurance agreement;
Insurance payment – financial compensation paid by insurer pursuant to insurance agreement when insured event happens;
Minimum living wage – social norm composed of the value of consumption basket and compulsory payments;
The contract of trading residential area – is written form of contract agreed between owner of residential area (seller) and debtor (customer). In accordance with the same contract, seller must give residential area to private property of buyer, buyer must receive this residential area and must pay cost of residential area with personal and involved funds, which is shown in contract.