Subsection 3: Solvency assessment

Credit is granted to the borrower only if the creditor has been able to verify that the obligations arising from the credit agreement are likely to be fulfilled in accordance with what is provided for in that agreement. To this end, before concluding a credit agreement, the creditor carries out a rigorous assessment of the borrower’s solvency. This assessment shall take appropriate account of the relevant factors for assessing the…

The creditor may neither terminate nor subsequently amend the credit agreement entered into with the borrower on the grounds that the information provided was incomplete or that the creditor incorrectly verified the borrower’s creditworthiness, except in the event that it is proven that information essential to the conclusion of the agreement was knowingly concealed or falsified by the borrower.

The creditor shall reassess the borrower’s creditworthiness, on the basis of updated information, before a significant increase in the total amount of credit is granted after the conclusion of the credit agreement, unless such additional credit was provided for and included in the initial assessment of creditworthiness.

The terms and conditions for applying the assessment of the borrower’s creditworthiness are specified by decree in the Conseil d’Etat.