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Definition and Form
Article 430
- (1)
- Under a contract for bank credit a bank shall be obliged to provide to a borrower a sum of money for a certain purpose and under agreed conditions and term, and the borrower undertakes to use the sum as agreed and to return it upon expiration of the term.
- (2)
- The borrower shall pay interest on the credit, as agreed with the bank.
- (3)
- The contract for bank credit shall be concluded in writing.
Necessary Information
Article 431
The borrower shall be obliged to provide the bank with the necessary information relevant to the conclusion and performance of the contract.
Early Claim
Article 432
- (1)
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Further to the cases provided for in the contract, the bank may request early return of the sum under the credit, where:
- 1.
- the credit is not used for the purpose for which it has been received;
- 2.
- the borrower provides untrue information;
- 3.
- the security becomes insufficient and is not supplemented within a term set by request therefor;
- 4.
- the borrower fails to return other loans to the bank due to serious aggravation of his financial status.
- (2)
- In the case under paragraph 1, sub-paragraph 4, the bank shall provide a sufficient time period before exercising its right for early return of the sum.
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