Subsection 2: Default by the borrower

In the event of default by the borrower and where immediate repayment of the capital is not requested, the rate increase provided for in article L. 313-50 may not exceed three interest points.

For the advances provided for in articles R. 317-1 et seq. of the French Construction and Housing Code, interest is charged at a rate that cannot exceed the highest of the maximum interest rates for State-guaranteed subsidised loans pursuant to article R. 312-3-1 of the Code de la construction et de l’habitation applicable at the time of the offer of advance.

The indemnity provided for in the event of termination of the credit agreement may not exceed 7% of the sums due in respect of the outstanding capital plus accrued and unpaid interest.