The assignment of the fifth salary is a form of personal loan dedicated by law to all employees (public, state, parapubblici and private) and pensioners.
Precisely as a right granted to these categories, the assignment of the fifth is governed by specific legislation:
- article 1260 of the Civil Code;
- Presidential Decree number 180 of 5 January 1950;
- implementing regulation of Presidential Decree number 895 of 28 July 1950.
The legislation on the transfer of the fifth sanctions its essential characteristics.
First of all, the amount of the installment, which can not exceed the maximum size of one fifth of the monthly net salary or pension, defined as transferable quota .
In the case of employees only, it is possible to transfer up to a maximum of 40% of the net salary requesting a loan with a proxy (this is also called the sale of double-fifths ), in order to obtain greater liquidity.
In this case, in fact, the legislation allows for the cumulative sale of the fifth and delegated loan , through two installments of 20% each: the first installment is related to the transfer of the fifth, the second to the loan by proxy.
Second important aspect governed by the law: the interest rate applied and the amount of the loan installment remain unchanged for the entire duration of the repayment schedule.
Furthermore: the provision of funding to the customer can take place in two ways:
- non-transferable bank drafts;
- wire transfer.
The Customer can exercise the right of withdrawal within 14 days from the stipulation of the loan. If you wish to exercise this right of financing already activated, you will then have 30 days to repay the principal or accrued interest as provided for by the contractual conditions.
Finally, the legislation on the sale of the fifth provides for double insurance coverage, to protect life and job risk.
This means that, in the event that the Transferor is premedited, the insurance company must fully cover the outstanding debt owed to the Bank, so as to preserve the family members from the right of recourse.
If, on the other hand, the Transferor loses its employment, the insurance company must pay the Bank while retaining the right of recourse against the customer, as the principal debtor. Finally, if the Customer is able to find a new placement with another employer within the term of about 6 months, the Bank will renotify the contract to the new company, for which the installment will be retained on the new paycheck and it will not be necessary to intervene insurance company.
The insurance contracts that provide these guarantees are stipulated for the Bank’s benefit, which sustains the related costs. Should the contract be terminated in advance, the customer will still recover the costs of unpaid policies because the above mentioned are included in the nominal annual rate which is clearly discounted in the case of extinction.