Section 5: Formation of the credit agreement

For the loans referred to in Article L. 313-1, the lender shall formulate an offer provided free of charge on paper or on another durable medium to the borrower and to the guarantors declared by the borrower when they are natural persons. This offer is accompanied by the European standardised information sheet referred to in Article L. 313-7 when its characteristics differ from the information contained in the information sheet…

The offer mentioned in article L. 313-24 : 1° Mention the identity of the parties and any declared guarantors; 2° Specify the nature, purpose, terms and conditions of the loan, in particular those relating to the dates and conditions for making the funds available; 3° For loan offers with a fixed interest rate, include an amortisation schedule detailing for each instalment the breakdown of repayment between capital and interest ;…

The model of the offer mentioned in articles L. 313-24 and L. 313-25 may, where necessary, be set by order of the minister responsible for the economy.

Any change in the conditions for obtaining a loan with a fixed interest rate, in particular the amount or rate of credit, shall give rise to the provision to the borrower of a new advance offer on paper or on another durable medium.

In cases where the borrower presents another insurance contract in place of the insurance contract proposed by the lender under the conditions set out in Article L. 313-29, the lender may issue an amended offer, on paper or on another durable medium, subject to the provisions of article L. 313-32, without the time limits mentioned in article L. 313-34 are not extended or renewed. The terms on which the lender…

When the lender offers the borrower an insurance contract with a view to guaranteeing, in the event of the occurrence of one of the risks that this contract defines, either the total or partial repayment of the amount of the loan outstanding, or the payment of all or part of the instalments on the said loan, the following provisions must be applied: 1° Attached to the loan contract is a…

Until the borrower signs the offer referred to in article L. 313-24, the lender may not refuse another insurance contract as collateral, provided that this contract offers a level of cover equivalent to the insurance contract it offers. The same applies when the borrower exercises the right of cancellation provided for in premier alinéa de l’article L. 113-12-2 du code des assurances or au third paragraph of article L. 221-10…

If the offer referred to in Article L. 313-24 has been issued, the lender shall inform the borrower, on paper or any other durable medium, of its decision to accept or reject the offer and, where applicable, send the borrower the amended offer referred to in Article L. 313-27, within ten working days of receipt of the request for substitution. If the borrower makes use of the right to cancel…

The lender may not, in return for accepting as collateral an insurance contract other than the insurance contract it offers, including in the event of exercise of the right of cancellation pursuant to the first paragraph of Article L. 113-12-2 of the Insurance Code or the third paragraph of Article L. 221-10 of the Code de la mutualité nor change the rate, whether fixed, variable or revisable, or the terms…

The insurer is obliged to inform the lender of non-payment by the borrower of the insurance premium or of any substantial change to the insurance contract.