Subsection 3: Default by the borrower

In the event of default by the borrower and where the lender does not require immediate repayment of the outstanding capital, it may increase, within limits set by decree, the rate of interest that the borrower will have to pay until it has resumed the normal course of contractual repayments.

When the lender requests that the contract be rescinded, it may demand immediate repayment of the outstanding capital and payment of the interest due. Until the date of actual payment, the outstanding sums shall accrue default interest at a rate equal to that of the loan.In addition, the lender may demand compensation from the defaulting borrower which, without prejudice to the application of the article 1231-5 of the Civil Code,…

No compensation or costs other than those mentioned in article L. 313-51 may not be charged to the borrower in the event of default as provided for in this article. However, in the event of default by the borrower, the lender may claim reimbursement from the borrower, subject to justification, of the taxable costs incurred by the lender as a result of the borrower’s default, to the exclusion of any…