{"id":5710,"date":"2012-04-30T13:42:53","date_gmt":"2012-04-30T13:42:53","guid":{"rendered":"https:\/\/gregorydamy.niceavocats.fr\/?p=5710"},"modified":"2023-08-19T06:15:51","modified_gmt":"2023-08-19T06:15:51","slug":"liability-clarification","status":"publish","type":"post","link":"https:\/\/gregorydamy.niceavocats.fr\/en\/liability-clarification\/","title":{"rendered":"Responsibility of the banker in the granting of credit"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.19.5″ custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.19.5″ _module_preset=”default” background_enable_mask_style=”on” background_mask_style=”wave” background_mask_color=”rgba(0,0,0,0.08)” custom_padding=”||6px|||” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter title=”Estimated reading time (in minutes)” number=”2″ percent_sign=”off” _builder_version=”4.20.2″ _module_preset=”default” title_font=”Amiri||||||||” max_width=”137px” global_colors_info=”{}”][\/et_pb_circle_counter][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/gregorydamy.niceavocats.fr\/wp-content\/uploads\/2012\/04\/liability.webp” title_text=”liability” _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Text” _builder_version=”4.21.0″ text_font=”Amiri||||||||” header_2_font=”Amiri||||||||” header_3_font=”Amiri||||||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

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Protection of borrowers: rules on breaking credit agreements and respecting notice periods<\/span><\/h2>\n

Clarification of liability!\u00a0<\/span>In the field of credit agreements, it is crucial to\u00a0\u00a0<\/span><\/span>recognize\u00a0<\/span><\/span>\u00a0that\u00a0<\/span>banks<\/span><\/a>\u00a0cannot freely terminate credit agreements without consequences.\u00a0<\/span><\/span>Whether it’s breaking an open-ended loan or not renewing a fixed-term loan, such actions can be considered abusive.\u00a0To ensure fair practices and safeguard the interests of borrowers, banks are required to comply with certain rules, in particular those relating to compliance with a notice period.<\/span><\/p>\n

The notice requirement applies to both open-ended and fixed-term contracts.\u00a0It provides borrowers with essential protection by allowing them enough time to prepare to enter into their credit agreements and explore alternative financial options if necessary.\u00a0By adhering to this requirement, banks comply with the principles of transparency and fairness,\u00a0\u00a0<\/span>preventing\u00a0<\/span>\u00a0sudden disruptions in the financial situation of borrowers.<\/span><\/p>\n

Clarification of the responsibility of the banker: granting of credit against wrongful violation<\/span><\/h2>\n

A historic judgment issued on September 23, 2020 by the Chamber of Commerce has highlighted the bank’s responsibility for helping borrowers.\u00a0This decision made a significant distinction between two major liabilities: liability for extending credit and liability for wrongful breach of credit.<\/span><\/p>\n

Under Article L313-13 of the Monetary and Financial Code, liability for wrongful termination is established, guaranteeing that banks cannot arbitrarily terminate credit agreements without just cause.\u00a0On the other hand, Article L650-1 of the Commercial Code deals with liability for the granting of credit, requiring proof of fraud to establish the bank’s liability.<\/span><\/p>\n

The main purpose of the ruling is to provide clarity and avoid any potential exploitation or confusion between these two distinct scopes.\u00a0By differentiating these responsibilities, the court strengthens the framework to enforce fair lending practices and protect both banks and borrowers.<\/span><\/p>\n

Conclusion:<\/span><\/h2>\n

In conclusion, the credit contract, like any contract, cannot be terminated freely by the bank without respecting specific rules and obligations.\u00a0<\/span>The abusive termination of open-ended credits or the non-renewal of fixed-term credits can be considered abusive, highlighting the need to respect notice periods.<\/span><\/span><\/p>\n

In addition, the judgment of September 23, 2020 insists on the distinction between liability for granting credit and wrongful breach of credit.\u00a0Article L313-13 of the Monetary and Financial Code and Article L650-1 of the Commercial Code dealing separately with these attributions, the judge ensures clarity and prevents possible misuse of their application.<\/span><\/p>\n

Ultimately, these measures are intended to protect borrowers, maintain transparent lending practices, and maintain the integrity of credit agreements within the banking industry.<\/span><\/p>\n

DAMY Law Firm<\/span><\/a><\/p>\n<\/div>\n

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Protection of borrowers: rules on breaking credit agreements and respecting notice periods Clarification of liability!\u00a0In the field of credit agreements, it is crucial to\u00a0\u00a0recognize\u00a0\u00a0that\u00a0banks\u00a0cannot freely terminate credit agreements without consequences.\u00a0Whether it’s breaking an open-ended loan or not renewing a fixed-term loan, such actions can be considered abusive.\u00a0To ensure fair practices and safeguard the interests of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[332],"tags":[],"class_list":["post-5710","post","type-post","status-publish","format-standard","hentry","category-banking-law"],"yoast_head":"\nResponsibility of the banker in the granting of credit - Soci\u00e9t\u00e9 d'avocats Damy<\/title>\n<meta name=\"description\" content=\"Liability Clarification In the realm of credit agreements, it is crucial to recognize that banks cannot terminate credit agreements\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gregorydamy.niceavocats.fr\/en\/liability-clarification\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Responsibility of the banker in the granting of credit - 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