Subsection 2: Assessment of solvency

The procedures and information on which the assessment of creditworthiness referred to in Article L. 313-16 are documented and kept by the lender throughout the term of the credit.

The assessment of solvency is based on information relating to: 1° The borrower’s income, savings and assets; 2° The borrower’s regular expenditure, debts and other financial commitments. The creditor shall take into account, as far as possible, events that may occur during the term of the proposed credit agreement such as, where applicable, a possible increase in the borrowing rate or a risk of a negative change in the exchange…

The creditor or credit intermediary shall warn the borrower of the need to provide accurate and complete information so that a proper assessment can be made. The lender or credit intermediary shall inform the borrower that credit cannot be granted if the lender is unable to carry out a credit assessment due to the borrower’s refusal to provide this information. The creditor shall keep proof of this warning on a…

When, pursuant to article L. 313-16 the creditor requests the information and supporting documents necessary to verify creditworthiness, and indicates the deadlines by which these items must be provided. Where necessary, the creditor may request clarification of the information received in response to the request. .