That such extension

When making any contribution a client signs with the Bank the relevant contract. In addition to the amount of the Deposit necessarily indicative of the principal terms of the Deposit: the Deposit term, the possibility of early termination of the contract or of renewal on expiry of the Deposit term, the possibility of replenishment. Each of these nuances are undoubtedly very important. However, the text of the Treaty itself is sometimes so specific that the average man is not clear, what are you talking about in a particular paragraph.

For example, not all Bank customers are aware of what is the extension of the agreement, and the automatic differs from that provided by signing an additional agreement. But the way of prolongation of the contract is extremely important to the customer. If a contract renewal is automatic, this means that at the end of the term of the agreement the client should not request the Bank to enter into another — the Bank will renew the Deposit for the same period. That is, the client only comes in if he needs to withdraw money or to change something in the contract. When the automatic extension of the term of the contract is not provided, the money at the end of the fall term for the current account and on them cease to accrue. That is, the depositor is not aware of what the extension of the agreement, and not realizing that in his contract it is not provided, continued to keep money in the Bank without receiving interest.

There Are other cases. For example, when a customer wants to withdraw money from the account and knows that the duration of the Deposit ended, but comes to the Bank a week later and finds out that it can not receive money on Deposit, because the contract lasted and now it needs to terminate. This, of course, automatic extension of the Deposit specified in the contract. The money he will eventually take it, but he will have to put extra efforts to write statements, to come again, etc. But a careful study of the Treaty would have helped in both cases to save time and nerves.

The Notion of extending the term of the contract is also applied in lending and certain other activities of the banks. In particular, what is the extension of the agreement, I know many borrowers who were caught off guard by the recent financial crisis. When people earn credits, and after some time realized that are unable to repay them, they began to look for possible ways out. In addition to the sale of the collateral, which is massively offered to banks on mortgage and other secured loans, one of the outputs was the extension of the term of the loan agreement to minimize the monthly payment. In a similar situation about any automatic rollover, of course, the speech was not. To stretch repayment period, the customer had to contact the Bank to write a statement and assure that the new payment he will be able to do. Only in this case he was given the opportunity to sign an additional agreement to reduce the payments.

If to consider that such extension of the contract, but without reference to loans, deposits and banks in General, literally meaning "extension period". That is, to extend the contract means to delay the end date of its execution, of course, by mutual consent of the parties.