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Article 16: Non Performance of Financing Contract and Guarantee Agreements
No: 351000116619
Date(g): 7/7/2014 | Date(h): 10/9/1435
Effective from 2014-07-07 - Jul 06 2014 To view other versions open the versions tab on the right
A Creditor may only proceed to enforcement against a Guarantor if the Borrower is in Default and has failed to comply with a Default Notice for a period of not less than 30 Calendar Days from the date of receipt.
Creditors, their representatives, and any other assignees of the Creditor's rights under the Financing Contract or Guarantee Agreement may not take disproportionate, excessive or unreasonable measures to recover amounts due to them in the event of non-performance of aforementioned agreements
A Creditor may demand immediate repayment in the event of Default only through a Default Notice requesting the Borrower, or where applicable, the Guarantor to comply with his/her obligations under the Agreement within 30 Calendar Days from the date of the issuance of notice.
A Default Notice is not required in the event of any of the following:
(a)
Fraudulent activities by the Borrower or Guarantor, which must be proven by the Creditor;
(b)
Steps taken by the Borrower to sell or attempt to sell financed goods to which the Creditor has retained title or pledged collateral without due authorization of the Creditor.
A Creditor may suspend Draw-downs under a Financing Contract in the event of a failure by either the Borrower or the Guarantor to abide by its terms and conditions in a Default. However the Creditor is required to give notice of its intent to suspend Draw-downs to the Borrower and the Guarantor (if any) without delay.
A Creditor is required to provide without delay and upon request of the Borrower, a detailed statement of account incorporating all applicable fees, Term Cost and charges including any administrative charges, free of charge in the event of a Default or prepayment of the Consumer Financing.
A Creditor may not bring an action for the enforcement of security over goods pledged as collateral without first obtaining approval from the Committee for Settlement of Banking Disputes if:
(a)
the Borrower has repaid 75% of the Amount of Financing; and
(b)
the Borrower has not provided his/her consent to the Creditor (whether in the Finance documentation or otherwise) to enforce that security.
