Mortgage - backup or debt pit?

Mortgage models and programs. What model is better, what documents are needed to obtain a loan, how to make a contract correctly.

Get your own apartment or increase the area of ​​the already existing, improve its quality, to move to another area or the city in our country can now be almost exclusively through the sale and purchase transaction. Inexpically, in the construction of the rare exceptions, domestic materials and components are used, housing prices not only remain high, but continue to grow. In the early time, the new accommodation is in great demand and popularity. But buy an apartment in a new building, even to sell, not everyone affordable. To solve this problem, you can take money in debt among friends (if there are such), try to get a loan at work (if they give) or seek a mortgage loan, which is still quite unusual for Russians, but completely naturally in the West.

Note. In 594 BC. The ancient Greek Archont Solon held his famous reforms: canceled the loamal debts and introduced the freedom of the will, as a result of which the fraudous property was no longer necessary to hear the genus. That is, everyone received the right to dispose of "property" at its discretion: to make and give away debt. Before the Athens, the debtor who could not pay the debt, fell into slavery. In order to translate personal responsibility to the property, Solon offered to put the debtor on the land (usually on the border location) pillar with an inscription that this property serves as a certain amount. Such a pillar was called mortgage. Greek Hypotetheca- stand, backup.

Mechanisms of mortgages

The main models of mortgage lending are only two, although the variants and schemes can be a great set. A simple model is a triangle: the buyer is a trader - creditor. Borrower, he is a buyer, takes a loan on the bank secured by an apartment acquired. The Bank opens an account for settlements with housing sellers and ensuring the guarantees of calculations when buying an apartment on credit. The buyer through the bank is calculated with the seller for the purchased apartment and receives the right of ownership, after which there is a loan and interest on him during the contract. Aesley does not succeed in the borrower, then on the repayment of the loan, he is deprived of the apartment. The simplicity of the organization of such a model made it widespread in developing, and in quite developed countries, for example, in the UK, France, Spain. A huge popularity of such a mortgage mechanism (VVIDE of the construction savings cash register) has won in Germany.

It is much more complicated by a two-level mortgage lending model. The main influx of credit resources comes with specifically for this organized secondary securities market provided by the mortgage on real estate. Such a workable such model becomes only with an extended and well-established mortgage market infrastructure. It is not necessary to do without the help of the state and, at a minimum, its partial control over the issuance of securities that appeal in the secondary market. This mortgage model is now the greatest distribution in the United States, so it is often called American. Its main feature is that mortgage rates are not related to either rates on other bank loans, nor with the cost of deposits.

Interestingly, since the end of the XIXVEK and before the revolution, a similar mortgage system was organized and perfectly acted throughout Russia. After the revolution about the mortgage, naturally, I had to forget, talk about it was resumed only in 1991. The first package of mortgage laws was adopted in 1996, but only recently, at the end of August 2001, Prime Minister Mikhail Kasyanov signed the rules for providing state guarantees on mortgage bonds. The aircraft means that they will appear on the securities market, and the real formation of the mortgage will begin in Russia along its two-level model. Agotum rates on mortgage loans will go down, and a much larger number of Russians will be able to take advantage of this accommodation of housing.

Banking mortgage program

One of the widespread advertised housing mortgage lending is "Deltacredit", developed by the USA Investment Fund. According to this program, the Fund provides long-term financing to Russian partner banks for subsequent issuance of housing mortgage loans to individuals for up to 10 years. Here are the criteria that mortgage loan products must be consistent so that they can be offered through the Fund's program:

• The maximum mortgage loan period is 10 years;
• Credit (in the US) is 70% of the cost of housing, and if the initial contribution above is $ 15,000, it can be 80%; The interest rate is recorded for the entire validity of the contract;
• interest rate on the loan - market (namment of the conclusion of the contract); Now it is equal to 13-15%;
• For each loan, the life of the borrower, apartments from the risk of loss, ownership of the apartment;
• The moratorium on the early payment (we note that such moores will soon be introduced in other programs).

The program has no compulsory requirement for registration in Moscow or citizenship of the Russian Federation, the guarantee of other persons is not required, there are no restrictions on the choice of an apartment (except for demolition houses and with wooden floors) or a real estate company. Intercom with the program "Deltacredit", when buying an apartment in the secondary market, it is necessary to assess in a specialized appraisal company. When making a mortgage loan, except for the official salary (disposal from the main place of work), other legitimate income generation schemes can be taken into account, for example, on bank deposits, insurance payments, securities, from renting existing housing and other confirmed income types.

Insurance mortgage program

PSK together with CEMI RAS and with the support of the state system developed a national mortgage lending program "Future today". This program consists of a long-term customer life insurance contract for a period of 10 years. When the amount of paid insurance premiums reaches a third of the cost of the future dwelling, the client receives a loan from the insurance company necessary to buy an apartment. This year from the moment of appeal to the loan, the insurance company invests in the share of housing, after which the borrower has already received a new apartment in his property lays it in favor of the insurance company until the end of all settlements with the insurer. Settling (delegation and registration) in the new apartment, the borrower continues to pay insurance premiums under the contract. At the same time, the cost of servicing the loan issued to him, in accordance with the terms of the program, will not exceed 8% per annum in currency. Thus, the property is secured. If the borrower is not able to pay, it is evicted, and the apartment is sold. The client returns the initial contribution and subsequent payments minus the cost of the company, the value of depreciation, etc. (in percents).

The advantage of the program in a sufficiently low interest rate on the loan (in the Vbankov mortgage model it is almost twisted above). There is a borrower and certain social guarantees. Even if he, for any reason, suspends payments, and his apartment becomes the ownership of the insurance company, in accordance with the current legislation, it is provided with a living area from the Municipal Secondary Residence Fund.

Upon the occurrence of the insured event (death, disability, disability, damage or destroying of the mortgaged housing), the insurance company itself repays the debt of the borrower in front of the lender with certain payments. Serious brake in the implementation and development of this program in Moscow - restricting the borrower in the choice of housing, that is, in the choice of the area and a particular type of building. But in the regional cities this problem does not exist.

Mortgage programs "Effect" and "housing on credit"

The program of mortgage lending "effect" was developed by Sarov's nuclear center specialists. Two years, she was tested in four cities: Sarov (Nizhny Novgorod Region), Ryazan, Penza and Zarechny (Penza.). After these cities, these cities differ significantly both by the number of residents (more than 600 thousand inhabitants in Penza and 64 thousand. Re-student), and on average family income, the proposed scheme of acquiring apartments in all of them turned out to be attractive and affordable. Now the system "effect" is introduced in more than 20 rubles of the Russian Federation, including Moscow, Volgograd, Vologda, Penza, Kaliningrad, Kaluga, Smolenskaya, Nizhny Novgorod, Tyumen, Irkutsk region. The result of the successful application of this system was the creation of a federal program "Housing on credit".

"Housing on credit" has a number of distinctive features. The first of these is that the apartments are sold at cost, since the Fund, which is a non-commercial organization, whose activities are not aimed at making the management and implementation of the program. The installment part of the payment for the purchased apartment is provided under a low percentage (5-10% per annum), and its repayment period is 7-15 years. The maximum loan size is determined by the cumulative monthly income of buyers. Another feature is low, but at least 10% of the cost of the purchased apartment, a mandatory initial fee. The program has a socially-oriented nature and is designed for citizens who have the size of a total area per family member not exceeding social norms, as well as those in need of improving housing conditions and consisting in this regard.

Payments by installments are made monthly, equal shares and within the deadlines established by the rules for the sale of housing on credit. The size of the mandatory monthly payment to repay installments should not exceed 20% of the cumulative family income. The change in the interest rate refers to the exceptional competence of the Board of Trustees of the Foundation. The fulfillment of obligations under the contract is ensured by the key to the citizen owned by a citizen of movable and immovable property, the guarantee of other persons, insurance of life and property, as well as in other ways.

The program offers 4-ranking housing acquisitions: buying with installments and surrendering your own apartment to the payment acquired; buying with installments without putting your own apartment; Buying without installments with the rental of your own apartment to the payment of purchased housing and buying housing without installments and without surrendering your own apartment. Criteria that define the sequence of applicants, the following: The preemptive right to purchase housing in installments is enjoyed by the applicant who needs a smaller amount of funds provided on credit; Under equal conditions, one who sells his own housing is the advantage in the first criterion, the advantage is used. Under equal conditions, on the first and second criteria, preference is given to having an earlier date of registration in the lists of needy improvement of housing conditions.

Moscow Construction and Savings

OJSC "Construction Savings Cashier" (SSC) was established in 1998. Decree of the Government of Moscow N896. Her founder is the Department of State Municipal Property of Moscow. SSC Works in the framework of the experiment conducted in the Western district on a comprehensive reconstruction of quarters of the Old-five-storey residential foundation with the involvement of citizens who want to acquire housing under the proposed mortgage model. It is the model of SSC, according to experts, it may be the most promising option for lending to the construction and acquisition of housing during the formation of the Moscow and even Russian mortgage.

Persons who have permanent registration in Moscow and the Moscow Region, paying an initial contribution of 5% of the total cost of housing, can reserve a specific apartment in one of the countries of the University of Houses and during its construction (14-16 months) to make equal shares Another 45% of the cost. After that, the apartment as a commodity mortgage loan is made to the property of the depositor with its mandatory key to the full repayment of a fifty-percent loan for three years under 8% per annum. The implementation of the program is calculated for five years and consists of five stages. The construction part of the first of them began in the early 1989, when the official laying ceremony of the first stone on Lobachevsky Street, possession94 took place. In just 5 years to 73ga, 530 thousand. M2 housing should be built, 37Thytors are demolished, and their inhabitants are resettled in new homes. Now ends the construction of eight modern high-rise residential buildings. Apartments in seven of them Muscovites can buy according to the SCC scheme. These are monolithic brick houses with improved layout, high ceilings and a large area of ​​apartments. In the last, the eighth corps will move inhabitants of the nearby five-story buildings to be demolished.

Based on the experience of two years of work, the SSC in the Western district creates the concept of a citywide model, which provides for the separation of functions of the citywide and territorial structures of the SCC.

In order for such a scheme to work successfully, we need a single information database, a rigid control system, a flexible pricing policy and financing the construction of various objects. All this implies the creation of a centralized structure of the citywide SCC, consisting of a head office and territorial offices in the districts, which will significantly expand the client mortgage base and attract an additional number of co-investors. As a result by visiting the SSC branch coming to his home, a potential client will be able to choose an apartment to him anywhere in Moscow, to get the necessary advice and there to be issued all the documents required.

Commandable partnerships on faith

These concepts are still poorly familiar with even residents of the capital. So let's start with the legislative framework. The concept, the procedure for formation, activities and liquidation of the partnership on faith (comdients) is regulated by the Civil Code (Art. 82-86). The partnership is created and operates on the basis of the Constituent Treaty. Managing activities is carried out by full comrades. Depositors (Commanders) are not entitled not only to participate in managing and conducting cases, but also challenge the actions of complete comrades for the management and conduct of the partnership affairs on faith. The contributor to the partnership in faith contributes to share capital, which is certified by the certificate of participation (Certificate of the Depositor). The rights of the depositor are determined by the Constituent Agreement (deposit agreement) and applicable law.

The first partnership in Moscow at the faith "DSC-1 and the Company" was created in May 1997. At the initiative of JSC DSC N1 as a participant in the pilot project of mortgage lending to the Government of Moscow. September 13, 2001, the second committee appeared by the second committee, SU-155 and Co.. Creates of such organizations needed, first of all, to attribute that full comrade (founder ) Or comrades (if there are several founders) at the failure to fulfill their obligations, it is responsible to shareholders with all their property, not by authorized capital. "DSC-1 and the company", for example, this is the 4th GBC, 5-minded and production and technical offices. The cost of this property is significantly more than the maximum permissible size of the concurrent capital. So the version of the financial pyramid in the case of a comdant partnership does not pass. The acrome of that, when contributing to a comdant partnership, you can save money on the account for a long time. After all, the client trusts his own partnership, denoting this intention someday (in a year or 5-10 years) to buy a new apartment.

The comdant partnership does not put any restrictions for the participants in the amount of deposit, the procedure and amount of payments. By making the initial amount, the client can periodically add new money to it, accumulating them on the account until the amount is gathered to buy an apartment. In addition, participating in money in the construction of houses, the depositor receives part of the profit from the sale of apartments. If the client has thought of buying an apartment, his Pai and profit accrued on it will be listed on his account during the 20bank days.

From January 1, 2001. The second part of the Tax Codexarf, which (Article 2220 "Property Tax Decomposition") (Article 2220 "Property Tax Decomposition") Citizens who bought an apartment with mortgage lending are beneficial to pay income tax in the amount of amounts aimed at purchasing housing not exceeding 600 thousand rubles. (approximately 20 thousand $). Asami means aimed at repaying interest on mortgage loans are derived from the taxation. Tax deductions for this benefit can be carried out until its complete use.

Citizens who applied to the comdant partnership in order to accumulate funds and receive dividends on the basis of financial and economic activities of the Organization, draw up a contribution agreement, which stipulates the procedure for the depositor of the depositor from the comdant partnership and receiving a deposit in cash (Wood), obtaining dividends on the results of the results The fiscal year (Wood), the term of the contract and the procedure for its prolongation, as well as an agreement on the procedure for the accumulation of the contribution to the further purchase of the apartment. The agreement on the procedure for the accumulation of the contribution states the intentions of the parties about the timing and size of the savings and the possibility of discounts when buying an apartment. The example of the example will give the main conditions for the purchase of an apartment on credit (the pursuit of the payment and the pledge of real estate) in the aforementioned COMMANDATER partnership "DSC-1 and the company". The size of the initial contribution of 30% of the total cost of the apartment; installment payment - up to 10let; The amount of interest payments depends on the service life and the amount of the initial contribution; interest rates are no more than 10% per annum; Apartments are provided only to residents of Moscow and the Moscow region from the Housing Fund of the Partnership; The buyer's solvency is confirmed by the provision of relevant documents. When checking out the purchase of apartments on credit with installment payment is the corresponding contract for the sale of apartments on credit and the pledge of real estate, while the apartment is drawn up to the buyer's property and is pledged by the partnership until the buyer's fulfillment is fully fulfilled by the contract.

Well, if you have a high "unofficial" income, you may be offered a choice of several "quasi-knock" schemes. As a rule, they differ in the nuances, but the basic idea is: the client chooses an apartment, pays 50% of its cost and populates. Next, he pays for hiring, that is, the unpaid part of the cost of the apartment is divided into 24 months in equal shares. Interest rate 10-13% per annum in currency. After repaying the loan, the apartment is drawn up on the client.

What is the model mortgage better?

This may seem doubtful, but for the buyer, the American scheme is still preferred. At least for three reasons. First of all, it is possible to get a cash loan to acquire any apartment, while, for example, according to the SSC option, the choice is limited by the offerings of the construction and savings box office. Real funds make it possible to participate in the mortgage to acquire housing in the market, and not on the established SSC and often overestimated prices. But, perhaps, the most important advantage of the American version of the mortgage period of lending. WMOSkow, as already mentioned, loans are issued for up to 10 years, and according to the SCC scheme, the borrower must pay for 3, maximum 5 years. Not the last role is also played by the fact that in the US scheme, the borrower has the right to dispose of his debt: in love with the moment to sell an apartment (more precisely, the mortgage on it) or get a new loan by laying a debt. (Unas, True, such operations are not yet common.) There is no SSK of such possibilities: I bought an apartment, it is impossible to sell it until all the debt is paid. However, despite all the shortcomings, the simple mortgage lending scheme for most mortgage participants is still more understandable, affordable and cheap.

Hidden thoughts loud

Deciding on obtaining a mortgage loan, it is better to correctly appreciate its capabilities in advance. To do this, we suggest you to answer ten questions.

one. Do you have enough money to pay the first contribution (it usually is 30% of the cost of the purchased apartment)?

2. Do you have any money to cover the costs associated with the purchase of a transaction for the sale of apartments? This is 1.5% of the cost of the apartment for a notarized certificate of the contract, the fee for registration of the contract in the GBD, the possible fees of the bank at the conclusion of the loan agreement and payment of insurance premiums at the conclusion of insurance contracts (the borrower at its own expense should insure his own life and disability, acquired property , risk of loss of ownership (title) for an apartment acquired). SUMME These payments can be from 1.5 to 5% per year.

3. Do you have enough money for maintaining the necessary family living level after monthly payments to repay the loan and pay interest on it? After all, these payments can reach 35% of the sum of the cumulative family income.

four. Do you have a continuous work experience in the last 2 years? Aesley were dismissal and breaks in work, how do you explain them?

five. How do you assess the stability of your position and income in the next 5-10 years?

6. Will you in case of loss of work quickly find another with payment not lower than the former, that is, to restore your solvency?

7. Have you used loans or loans and whether they returned them in a timely time? Do you use credit cards? In other words, do you have a positive credit history?

eight. Are you paying utility services, telephone, electricity, etc.?

nine. Do you have a movable or immovable property (another apartment, country house, etc.), which can be an additional confirmation of your creditworthiness?

10. Can you provide as an additional guarantee of a legal entity, such as an employer, bank guarantee or something like this?

Consider if at some point you will find yourself unable to fulfill your obligations to repay the loan obtained for the purchase of an apartment that provided it to you the bank may require you to return the loan and paying accrued interest to you, to recover the apartment that the apartment that has incorporated you in accordance with the current legislation As a result, it will be sold, and you and all living with you are evicted on this housing. Well, even after the sale of the apartment for reversible funds to repay obligations under the loan agreement will not be enough, the lender may draw a penalty and other of your property. So take money into debt, not being confident in the ability to return it on time and in full, quite frivolously.

If you answered all these questions positively, then you will be able to evaluate the maximum loan size that you can count on. On the overwhelming majority of Internet sites providing loans, there is an online mortgage calculator, making data on its income, one can determine the very maximum amount of the loan accessible to you and the amount of monthly payments on it.

What documents are needed

The procedure for obtaining a mortgage loan is complex and long. First of all, referring to any organization that provides such a service, you will have to fill out a statement application for a housing mortgage and attach a considerable amount of papers on the basis of which will be pre-consideration of the possibility of including you in the list of applicants for this loan. The list of documents is great and not exactly the same in different firms. It can also be found on the Internet.

The first thing will be required copies of passports (all pages), not only the borrower itself, but also of all persons living together with him, as well as those who do not live if the spouse (spouse), parents, children are spelled out somewhere else. Will be needed: a copy of the certificate of assigning a borrower Inn, a copy of the document that is the basis for registering the permanent residence of the borrower, a copy of the formations of education and a number of others. In addition, documents confirming your marital status, health and information about employment and income will be required. It will be necessary to provide information and other assets if there are available. Other documents may be requested. The term consideration of the application questionnaire is usually from 2 week to 1 month. If a positive decision is made, you will be offered to collect additional documents for entering into a mortgage agreement. Their list will be given to the company that provides a loan.

In mid-February of this year, a federal law was adopted in Russia, which made changes and additions to the already operating law "Opripotek". Now it is recommended that the "residential house or apartment acquired or built using a bank loan or other credit institution is considered to be pledged from the date of state registration of the ownership of the borrower." Clarifications are made to Article 54, protecting the lender from a non-associate or unfair debtor who admits regular delay in payments. The credit institution was able to demand full fulfillment of obligations, not repayment of one current debt. Appeal for accommodation for housing, acquired or built under a mortgage agreement to ensure the return of a bank loan, is the basis for terminating the right to use the pledger and his family members with this residential premises. Recovery on the mortgaged housing "is possible both in the judicial and extrajudicial manner." A residential building or an apartment, which is laid under the mortgage agreement and which is drawn to the recovery, are implemented by selling from trading held in the form of an open auction or competition. " The new edition of paragraph 2 of Article 78 protects credit organizations from unscrupulous borrowers who instill members of their families after entering into a mortgage agreement without registration of a notarized commitment to the exemption of the laid house or apartment in the event of recovery. The text of Article 78 did not allow to resolve the issue of their eviction.

And the guardianship and guardianship authorities now have the right to agree to representatives of minors or limitedly capable family members to alienation or transfer to the mortgage of the residential premises occupied by them if their rights are not violated and the interests protected by law. Such permission must be submitted to the applicant in writing in a thirty-day period, and the refusal in the country of consent must be motivated. The applicant "has the right to challenge the decision of the guardianship and guardianship bodies in court."

How to make a mortgage agreement

Note that the mortgage agreement, according to Art. 339 of the Civil Code of the Russian Federation is subject to a compulsory notarial certificate and state registration. Failure to comply with at least one of these requirements makes it invalid. Comprehensible situation with the conclusion of a preliminary agreement on mortgage. Currently there are certain discrepancies at the request of its mandatory state registration. Soda Party, the preliminary contract must be concluded in the form established for the main contract (Art. 429 of the Civil Code of the Russian Federation), and on the other, the preliminary agreement does not lead to the transition of property rights and, accordingly, is not a real estate transaction, and therefore Mandatory State Registration does not require. But without any doubt, a preliminary mortgage agreement is subject to a mandatory notarial certificate (Article 18, 163,165, 339, 429 GKRF). When concluding a mortgage contracts, the question of the possibility of their conclusion is relevant in the event that the subject of pledge is not yet or not purchased by the mortgager. Now, the Federal Law "Obijotek" allowed the pledge of the object of unfinished construction.

According to Article 339 GKRF and the article of the 9-Fedral Lawruf "Opripotek", in the mortgage agreement should necessarily indicate:

• Parties to the contract; At the same time, it was not specifically established that the contract was not allowed to conclude a mortgage of residential premises in the property of a citizen by proxy (paragraph 6 of Article 74 of the Law "Opripotek");
• the obligation provided by the mortgage, indicating its sum, the basis of the occurrence and period of execution; If the obligation is based on a contract, it is necessary to specify its parties, the date and place of the conclusion;
• Mortgage object: Description of the object of real estate, sufficient to identify it (name, location, purpose, characteristics);
• The right of the mortgagor to the laid real estate object and the name of the Justice authority registered, that is, the mortgage agreement is only after the state registration of the rights of the pledger (property, economic management, lease) on the property under investigation;
• If the mortgagee rights are certified by the mortgage, it must be specified;
• assessment (value) of the mortgage object in monetary terms (at market prices);
• the procedure for the recovery of the pledge (by a court decision or a notarized Agreement of the Parties);
• In the contract of deposit of the house, buildings, structures must be indicated by the right of the pledger on the land-occupied land plot, as well as the provision on the pledge of this site (lease rights) or its part necessary to use the object, since otherwise the mortgage agreement will be considered invalid (Art. 340 of the Civil Code of the Russian Federation);
• If the contract does not establish a different position, the pledger is entitled to dispose of the pledge, including to alienate and transfer to the subsequent deposit, only with the consent of the pledgee.

If immovable property is in general joint ownership, it requires written consent to its collateral, and if it is in total share ownership, this consent is not required (Article 7 of the Law "Opripotek"). Consent to the mortgage of property located in the joint ownership of spouses, from another spouse, should be notarized (paragraph 3 of Article.35 of the Family Codecarf). If the mortgage object is a residential premises owned by minor citizens, limitedly capable or incapacitated persons, then a written consent is required to carry out the operation of the guardianship and guardianship authority (P.5 of Article 74 of the Law "Opripotek").

Insurance all risks and sleep calmly

Despite the fact that the mortgage insurance standards suggest unity and complexity, in practice, creditors and insurance companies themselves determine the risk set, from which the borrower must be insured. As a rule, a mortgage lending has a general agreement on cooperation with an insurance company, which provides a full range of insurance services for mortgage activities. From a rather extensive list of possible risks, 3-4 most necessary are chosen. At the same time, insurance rates are reduced, and the insurer services are bypass by the borrower not more than 3-5% per annum on the loan amount.

The only thing that should be insured is obligatory is the real estate of the borrower (for example, an apartment). It is insured from a set of standard risks. After the occurrence of the insured event, the insurer's responsibility includes funding for restoration work. The insurance contract is valid during the entire loan period. The beneficiary in the contract is a creditor bank. Insurance amount is equal to the loan obtained with interest, and the insurance premium is approximately 0.6-3% of the mortgage loan.

If the apartment is purchased in the secondary market, the question of the legal purity of the purchased property is faced with a special sharpness. Listening to incorrect privatization or violations in the resale process, all subsequent transactions are automatically canceled and a creditor bank with unfavorable developments risks remain without property collateral. Title insurance increases the cost of the mortgage loan by an average of 1%, although it can actually be both lower (0.5%) and above (up to 3-3.5%). When buying a "primary" housing, the risk of incorrect design of the transaction is much lower, but also likely. The least common type of insurance at the conclusion of the mortgage contractual liability of the borrower. The client, like the owner of the apartment and a citizen, is responsible to other citizens (their neighbors) for the damage that he can cause their property (fire, flooding, etc.).

This is the Russian mortgage now. Mortgage loans are still available to a little. But new options are gradually emerging, more acceptable to our citizens.