Unofficial transfer (c) Soyuzpravoinform LLC

LAW OF THE AZERBAIJAN REPUBLIC

of February 24, 2023 No. 822-VIQD

About modification of the Civil code of the Azerbaijan Republic

Being guided by Items 12 and 27 of part I of article 94 of the Constitution of the Azerbaijan Republic, Millie DECIDES: Majlis of the Azerbaijan Republic

Article 1

In the Civil code of the Azerbaijan Republic (Collection of the legislation of the Azerbaijan Republic, 2000, No. 4 (book I), Article 250, No. 5, Article 323; 2002, No. 12, Article 709; 2003, No. 8, Article 420; 2004, No. 3, Article 123, No. 5, Article 318, No. 6, Article 415, No. 10, Article 761, No. 11, Article 901; 2005, No. 2, Article 61, No. 6, Article 466, No. 8, Articles 684, 692, 693, No. 11, Article 996, No. 12, Article 1085; 2006, No. 2, Article 68, No. 3, Article 225, No. 5, Article 387, No. 6, Article 478, No. 8, Article 657, No. 12, Article 1005; 2007, No. 2, Article 80, No. 6, Article 560, No. 8, Article 745, No. 10, Article 937, No. 11, Article 1053, No. 12, Articles 1215, 1219; 2008, No. 3, Article 145, No. 6, Article 456, No. 7, Article 602, No. 12, Article 1049; 2009, No. 2, Article 47, No. 5, Article 295, No. 6, Article 404, No. 7, Article 517; 2010, No. 2, Article 75, No. 3, Article 171, No. 4, Articles 265, 266, 276; 2011, No. 7, Article 586, No. 8, Article 750, No. 12, Articles 1073, 1102; 2012, No. 1, Article 5, No. 5, Article 403, No. 6, Article 498; 2013, No. 1, Article 15, No. 6, Article 620, No. 11, Article 1280, No. 12, Articles 1469, 1478; 2014, No. 2, Article 96, No. 7, Article 768; 2015, No. 3, Article 254, No. 5, Article 512, No. 7, Article 814, No. 10, Article 1093; 2016, No. 1, article 26, No. 2 (book I), Articles 186, 204, No. 3, Article 401, No. 4, Articles 640, 646, No. 6, Article 1005, No. 7, Article 1248, No. 12, Articles 1998, 2018; 2017, No. 2, Articles 151, 153, No. 4, Article 524, No. 5, Articles 703, 735, No. 6, Article 1035, No. 11, article 1953, No. 12 (book I), Articles 2210, 2234, 2239; 2018, No. 2, Article 142, No. 4, Article 650, No. 5, Articles 845, 851, No. 11, article 2212, No. 12 (book I), Articles 2467, 2518, 2526, 2533; 2019, No. 1, Articles 23, 50, No. 5, Articles 806, 812, 814, No. 6, Articles 994, 996, No. 7, Article 1202, No. 8, Article 1369, No. 11, Article 1681, No. 12, Article 1908; 2020, No. 5, Article 515, No. 7, Articles 822, 832, 839, 843, No. 12 (book I), Article 1423, 1435; 2021, No. 1, Article 8, No. 4, article 307, No. 6 (book I), Articles 556, 558, No. 7 Article 711, No. 8, Article 894, No. 11, Article 1206, No. 12, Article 1335; 2022, No. 6, Article 580, No. 8, Articles 824, 828, 833; the laws of the Azerbaijan Republic of November 29, 2022 No. 651-VIQD and of December 2, 2022 No. 669-VIQD) to make the following changes:

1.1. in the second offer of Article 194.2 and the third offer of Article 431.1 to exclude words "According to the Law of the Azerbaijan Republic "About banks";

1.2. under Article 331:

1.2.1. add Article 331.1 with the second and third offers of the following content:

"The transaction is considered the written form concluded with observance and in case of the conclusion it by means of the electronic or other technical means allowing to reflect its content in invariable form in the material carrier and if in this case this or that method allowing to determine authentically voleizjyavitel was used, the requirement of the signature is considered executed. The special method (methods) allowing to determine precisely person can be determined by the law, other legal acts or the agreement of the parties.";

1.2.2. in Article 331.2 shall be replaced with words the word of "parties" "the law, other legal acts or the parties";

1.2.3. in Article 331.3 before the word of "parties" to add with words "the law, other legal acts or";

1.2.4. in Article 331.5 of the word "conclusion in shape" shall be replaced with words "the conclusion in case of trade and confirmation in the digital signature";

1.3. in Article 406.3 of the word "documents by mail, to telegraph, the teletype, phone, electronic communication or by means of other communication allowing to determine authentically that the document proceeds from the agreement party" shall be replaced with words "letters, telegrams, electronic documents or other data according to Article 331.1 of this Code";

1.4. after the word "creditor" in Article 428.4 to add with the words "if other is not provided by the law or the agreement";

1.5. state Article 445.7 in the following edition:

"445.7. If other is not provided by this Code or the agreement, in case of delay by the debtor of payment of sum of money the creditor can demand payment of five annual interest rates on the overdue amount.";

1.6. under Article 449:

1.6.1. in the second offer of Article 449.1 shall be replaced with words the word of "percent" "percent if other is not established by the law or the agreement", and in the third offer shall be replaced with words "provide" the word "pay";

1.6.2. in Article 449.4 before the word "agreement" to add with words "this Code or";

1.7. in the first offer of Article 462.1 before the word "agreement" to add with words "the law or";

1.8. in Article 478 "management" to replace the word with the word "organization";

1.9. state Chapter 37 in the following edition:

"Chapter 37. Loan

§ 1. Loan agreement

Article 739. Concept and form of the loan agreement

739.1. According to the loan agreement one party (lessor) shall transfer to other party (borrower) the ownership to money or other substitutable things, and the borrower shall return received to the lessor respectively in the form of the same cash amount or equal quantity of things of the same type and quality.

739.2. If the amount of the subject of the agreement of loan exceeds three thousand manats or if one of agreement parties is the legal entity, irrespective of the amount, the loan agreement shall be signed in writing.

739.3. Day in which there is right of the borrower or the third party specified to them to dispose of the subject of the agreement of loan is considered day of issue of loan. If the subject of the agreement of loan is money, and they are issued via bank transfer, day of issue of loan day of transfer of loan amount into the account of the credit institution servicing the account of the borrower or the third party, or the other person specified to them is considered. If accounts of the lessor and the borrower (or the third party specified to them) are in the same organization, day of issue of loan day of transfer of borrowed funds into the account of the borrower or person specified to them is considered.

739.4. The lessor cannot grant loan for the purpose of purchase of share (share) in the authorized capital. The share (share) in its authorized capital cannot act as guarantee of execution of debt obligation before the lessor.

Article 740. Percent on the loan agreement

740.1. If other is not provided by the law or the agreement, the lessor has the right from the borrower of percent according to the procedure and the size, provided by the agreement.

740.2. If other is not provided by this Code, the size of percent and (or) other payment for provision of loan, or procedure for their calculation are determined by the agreement of the parties.

740.3. If for use of loan percent are provided, and the corresponding sum is not determined by the agreement, this amount is estimated based on Article 439.3 of this Code.

740.4. Percent, including the percent added for delay, and other payments are charged only on the amount of remaining balance of the principal debt which is not returned before date of loan repayment.

740.5. If other is not provided by the agreement, percent and (or) payments on the loan agreement shall be paid at the end of every year of validity and if the loan is not returned before the expiration of one year, percent and (or) payments shall be paid along with loan repayment.

740.6. Percent on the agreement are calculated by division of annual interest rate into three hundred sixty five or three hundred sixty if it is provided by the loan agreement, and multiplication on the number of the actual days of provision of loan (including day of provision of loan and excepting day of its return).

740.7. It is not allowed to consider this or that payment accepted by the lessor from the borrower according to the loan agreement, the payment accepted in one of the next days on loan.

740.8. Percent and (or) other payments on the credit agreement are paid to the terms established by the credit agreement.

740.9. Regulations of this paragraph of this Code on interest payment and (or) payments are applied if the law or the loan agreement provide interest payment and (or) payments.

740.10. Provision in loan of money for the purpose of income acquisition is regular, and also to unrestricted subjects can be performed only by person having the right to perform activities for loan granting according to regulatory legal acts.

Article 741. Unilateral cancellation of the obligation to provide and obtain loan

741.1. If other is not established by this Code if it is obvious that the debt will not be repaid in connection with considerable deterioration in property condition of the borrower or in connection with provision by the borrower to the lessor of obviously false data in time, or in case of non-execution by the borrower of the obligations provided by the credit agreement about issuance of credit, including if it does not provide providing the lessor can refuse unilaterally complete or partial obligation fulfillment on provision of loan.

741.2. The borrower can refuse unilaterally receipt of loan fully or partially before date of transmission to it the subject of the agreement of loan.

Article 742. Loan repayment

742.1. The borrower shall return loan (and also percent and (or) payments) to the lessor in terms and according to the procedure which are provided by the loan agreement (taking into account article 740 of this Code). The subject of loan is considered returned in day of its transfer to the lessor or the third party specified by the lessor if other is not provided by the agreement. If the subject of the agreement of loan is money, and they return via bank transfer, day of loan repayment day of transfer of loan amount into the account of the credit institution servicing the account of the lessor or the third party, or the other person specified to them is considered. If accounts of the lessor and the borrower or the third party specified to them are in the same organization, day of loan repayment day of transfer of borrowed funds into the account of the lessor or person specified to them is considered.

742.2. If the loan agreement not fixed term of loan repayment, the lessor can demand loan repayment at any time. The borrower who received the executive requirement of the lessor shall return loan within one month, and also pay percent and (or) payments provided that the agreement of the parties does not provide longer term.

742.3. If other is not provided by this Code, the borrower can return ahead of schedule loan by the interest payment and (or) payments added from the date of provision of loan about day of its return.

742.4. The term specified in Article 742.2 of this Code is estimated from the moment of receipt of the prevention.

742.5. If the law or the loan agreement do not provide other rule for benefit of the borrower, the lessor can demand the early loan repayment provided for certain term (including percent and (or) other payments which are subject to payment to the lessor in connection with loan about day of early reclamation of loan) in the following cases:

742.5.1. in the presence of the bases to assume that the loan will not be returned in time in connection with considerable deterioration in property condition of the borrower (including when the deterioration taking place to the conclusion of the agreement and which is not eliminated until the conclusion of the agreement became known to the lessor later) or for the reason that the borrower provided to the lessor false information;

742.5.2. in case of debt repayment delay (including percent and (or) payments) according to the loan agreement providing interest payment and (or) payments in parts which term came, for the term of 90 (ninety) days and more or two consecutive violations of payment due dates of debt (including percent and (or) payments) (at least 90 (ninety) days);

742.5.3. in case of non-execution by the borrower of the obligation on ensuring execution of the loan obligation, loss (destruction, the termination, etc.) of providing or reduction of its cost in accordance with the circumstances for which the lessor is not responsible (including in case of considerable deterioration in property condition of the guarantor or guarantor) and in these cases there are bases to assume that the loan will not be returned in time;

742.5.4. if purpose of loan is specified in the loan agreement, and the borrower does not allow the lessor to control use of loan to destination according to the procedure, provided by the agreement or if the loan is used not for designated purpose.

§ 2. Credit agreement

Article 743. Concept of the credit agreement

743.1. According to the credit agreement the lessor shall transfer to the borrower the ownership to money in the amount of and on the conditions specified in the agreement, and the borrower shall return to the lessor the received money in time, specified in the agreement, on condition of interest payment and (or) other payments specified in the agreement. Person having the right to implementation of activities for loan granting according to regulatory legal acts can only be the lessor according to the credit agreement.

743.2. If other does not follow from provisions of this paragraph of this Code, regulations of this Code on the loan agreement are respectively applied to the credit agreement.

743.3. Borrowing on behalf of the Azerbaijan Republic, and also loan granting at the expense of means of specialized government institutions and the Central bank of the Azerbaijan Republic, and also are performed by pawnshops according to the corresponding legal acts. The questions connected with loan granting not settled by the specified legal acts are regulated according to this Code.

Article 744. Procedure for the conclusion and contents of the credit agreement

744.1. The credit agreement is signed between the parties in writing, and one copy of the credit agreement is handed to the borrower.

744.2. In the credit agreement the following shall be specified at least:

744.2.1. name and address of the lessor;

744.2.2. name and borrower's address;

744.2.3. amount and loan currency;

744.2.4. term of repayment of the loan and payment term;

744.2.5. purpose of the loan;

744.2.6. the annual interest rate applied on the credit and (or) the amount of other payments, and also the actual annual interest rate (if the agreement stipulates variable interest rate, initial actual annual interest rate);

744.2.7. accurate and exact information on term during which percent on the credit, when applicable will not be collected.

744.3. Except as specified, stipulated in Article 743.3 of this Code, the actual annual interest rate according to the credit agreement is calculated according to the procedure, established by the Central bank of the Azerbaijan Republic.

Article 745. Features of the credit agreement

745.1. Article 742.5.3 of this Code is applied to cases of loss or reduction of cost of ensuring execution of the credit obligation only provided that the borrower did not replace providing or did not submit collateral security in time, established by the credit agreement.

745.2. In case of early repayment by the borrower of the obligation according to the credit agreement the lessor can demand payment of compensation according to this Code only if it is provided by the credit agreement.

745.3. Article 740.7 of this Code is applied to the relations arising from credit agreements on condition of implementation of payment before the termination of operational day (time established by the lessor for acceptance of payments). If the lessor did not establish shorter term in the credit agreement, the payment made via the payment terminal or otherwise after the termination of operational day is considered made no later than the next working day.

745.4. Claim term according to requirements of the lessor following from the credit agreement constitutes one year.

745.5. If other is not provided by the credit agreement (except for establishments of the bigger amount), percent for delay of payments on the credit (interest arrears) is calculated by addition to the annual interest rate provided credit agreements, the discount rate determined by the Central bank of the Azerbaijan Republic on the date of execution of monetary commitment or its corresponding part. In case of application of interest arrears in the limits set by this Article, the additional penalty (penalty, penalty fee) or payment in any other form cannot be requested.

745.6. If the damage caused to the lessor in connection with delay of payments on the credit exceeds the amount of the percent which are due to it based on Article 745.5 of this Code, the lessor can demand from the borrower of compensation of damage in that part in which it exceeds this amount, judicially or by achievement of the separate arrangement with the borrower after date of approach of damage.

§ 3. Agreement of consumer loan

Article 746. Concept of the agreement of consumer loan

746.1. Under the agreement of consumer loan the lessor shall provide money as a loan to the borrower - physical person (further - the consumer) on the purposes which are not connected with business or professional activity, and the consumer - to return the obtained loan according to the procedure and term, established by the agreement, on condition of interest payment and (or) other payments specified in the agreement.

746.2. Provisions of this paragraph of this Code do not extend to the following agreements:

746.2.1. the credit agreements connected with acquisition of rights real estate or provided with mortgage of real estate;

746.2.2. on agreements which amount at the time of the conclusion of the credit agreement is lower than the size of minimum monthly salary established over the country, or more than in 300 (three hundred) times more of this amount;

746.2.3. on crediting of the bank account for a period of up to 90 (ninety) days;

746.2.4. on agreements on the loans granted by credit unions to the members;

746.2.5. on agreements on the loans granted by the lessor performing activities for loan granting according to Article 743.1 of this Code, to the workers;

746.2.6. on agreements on the loans granted by the organizations performing investment services for the conclusion of the security transactions performed by them or derivative financial instruments;

746.2.7. go on the credit agreements signed based on the voluntary settlement signed through court mediation;

746.2.8. on besprotsentno the established agreements of restructuring providing repayment of credit debt and other payments for new term;

746.2.9. on agreements on the credits in which obligation fulfillment is provided with thing, transferred to ownership of the lessor, and it is provided that the obligation of the consumer is limited only to this thing.

746.3. If other does not follow from provisions of this paragraph of this Code, regulations of this Code on the loan agreement and the credit agreement are respectively applied to the agreement of consumer loan.

Article 746-1. Initial informing under the agreement of consumer loan

746-1.1. Before the conclusion of the agreement of consumer loan the lessor shall provide to the consumer on paper or other steady carrier (any means allowing to store information during the period of time suitable for its purposes and to reflect stored information without changes) information as follows:

746-1.1.1. type of loan;

746-1.1.2. name and address of the lessor;

746-1.1.3. amount and loan currency;

746-1.1.4. term of repayment of the loan and term of payment;

746-1.1.5. goods or service and their price cash (when implementing during purchase of goods or service of lump sum payment) if the loan is granted by means of the adjacent credit agreement in connection with purchase of certain goods or rendering service;

746-1.1.6. the annual interest rate applied on the credit and (or) the amount of other payments and condition of their application, and also the actual annual interest rate;

746-1.1.7. accurate and exact information on term during which percent on the credit, when applicable will not be collected;

746-1.1.8. the size, quantity and frequency of the payments which are subject to implementation by the consumer and also the sequence of write-off of missing or excessive payments from obligation fulfillment;

746-1.1.9. when applicable (except as specified lack of need for opening of the account), maintenance costs of one or several accounts, the recording transactions on payment and cashing in, including expenses on use of means of payment for transactions on payment and cashing in, other expenses following from the credit agreement, and condition of change of these expenses;

746-1.1.10. when applicable, availability of the notarial expenses which are subject to payment by the consumer in connection with the conclusion of the credit agreement;

746-1.1.11. in cases when the conclusion of the agreement on additional service, including the insurance contract, is obligatory for receipt of the credit, obligation of the consumer to sign such agreement in connection with the agreement of consumer loan;

746-1.1.12. consequence in law of untimely implementation by the consumer of the payments;

746-1.1.13. when applicable, the penalty which is subject to payment in case of delay of payments;

746-1.1.14. when applicable, providing necessary for loan granting;

746-1.1.15. consumer's right to refusal of the agreement of consumer loan, term and sales term of such right;

746-1.1.16. consumer's right to early repayment of consumer loan and, when applicable, right of the lessor to compensation, amount of compensation and procedure for its determination;

746-1.1.17. when applicable, circumstances under which the lessor can demand early return of the debt specified in Article 742.5 of this Code;

746-1.1.18. in case of refusal in provision to the consumer of the credit based on the data received from credit bureaus for the purposes of solvency assessment the consumer's right to free receipt of information on it;

746-1.1.19. the consumer's right to free receipt of the draft copy of the agreement from the lessor based on the address;

746-1.1.20. effective period of the information provided by the lessor.

746-1.2. The data specified in Article 746-1.1 of this Code are reflected in standard form of informing. The standard form of informing affirms the Central bank of the Azerbaijan Republic.

746-1.3. In standard form of informing it can be included also other data connected with the credit.

746-1.4. The information provided by the creditor shall be expressed in clear and clear type.

746-1.5. When using as the means of communication for the conclusion of the agreement of remote consumer loan of means of voice communication (phone call, video call, etc.) the lessor at the beginning of call provides to the consumer only the following information:

746-1.5.1. the name of the lessor and the purpose it is ringing;

746-1.5.2. name, surname and communication with the lessor of person which contacted the consumer;

746-1.5.3. the offered service is consumer loan;

746-1.5.4. the amount of the offered consumer loan, annual interest rate on the credit and the actual annual interest rate;

746-1.5.5. mark that the consumer can have additional expenses in connection with the offered consumer loan;

746-1.5.6. consumer's right to refusal of the agreement of consumer loan, term and sales term of such right;

746-1.5.7. effective period of the information provided by the lessor.

746-1.6. In case of application of Article 746-1.5 of this Code the lessor informs the consumer on possibility of provision of other information specified in this Article based on the address of the consumer according to the procedure, stipulated in Article 746-1.1 of this Code, and provision of the specified information based on the address of the consumer provides.

746-1.7. In case of the address of the consumer to the lessor with use of the right specified in Article 746-1.1.18 of this Code, the lessor shall provide the relevant information to the consumer in writing no later than the next working day.

Article 746-2. Procedure for the conclusion and contents of the agreement of consumer loan

746-2.1. The agreement of consumer loan is constituted in writing on paper or other steady carrier.

746-2.2. In the agreement of consumer loan accurately and precisely the following is specified:

746-2.2.1. type of loan;

746-2.2.2. name and address of the parties;

746-2.2.3. amount and loan currency;

746-2.2.4. term of repayment of the loan and payment term;

746-2.2.5. goods or service and their price cash (when implementing during purchase of goods or service of lump sum payment) if the loan is granted by means of the adjacent credit agreement in connection with purchase of certain goods or rendering service;

746-2.2.6. the annual interest rate applied on the credit and (or) the amount of other payments and condition of their application, and also the actual annual interest rate and all payments included in its calculation;

746-2.2.7. accurate and exact information on term during which percent on the credit, when applicable will not be collected.

746-2.2.8. the size, quantity and frequency of the payments which are subject to implementation by the consumer and also the sequence of write-off of missing or excessive payments from obligation fulfillment;

746-2.2.9. when applicable (except as specified lack of need for opening of the account), maintenance costs of one or several accounts, the recording transactions on payment and cashing in, including expenses on use of means of payment for transactions on payment and cashing in, other expenses following from the credit agreement, and condition of change of these expenses;

746-2.2.10. when applicable, availability of the notarial expenses which are subject to payment by the consumer in connection with the conclusion of the credit agreement;

746-2.2.11. consequence in law of untimely implementation by the consumer of the payments;

746-2.2.12. when applicable, the penalty which is subject to payment in case of application for overdue payments (percent for delay);

746-2.2.13. when applicable, information on conditions of ensuring execution of the credit obligation and insurance claims;

746-2.2.14. consumer's right to refusal of the agreement of consumer loan, term and sales term of such right;

746-2.2.15. consumer's right to early repayment of consumer loan and, when applicable, right of the lessor to compensation, amount of compensation and procedure for its determination;

746-2.2.16. when applicable, circumstances under which the lessor can demand early return of the debt specified in Article 742.5 of this Code;

746-2.2.17. the consumer's right to free obtaining in the period of the agreement on paper twice within calendar year (if the agreement does not provide more favorable circumstance), and on other steady carrier - at any time - account statements about credit remaining balance in schedule type of payments on the credit (in the payment schedule payments which shall be made terms of such payments, structure of payments, including the percent added on annual interest rate, and other applied additional expenses are specified);

746-2.2.18. whether consideration of disputes extrajudicially is possible and if yes, that its procedure;

746-2.2.19. other terms of the contract, when applicable;

746-2.2.20. name and address of the Central bank.

746-2.3. Application of variable interest rate and establishment of possibility of increase in percent and other payments under the agreement of consumer loan is not allowed.

746-2.4. In cases of crediting of the bank account the lessor periodically informs the consumer by means of the account statement on paper or other steady carrier as follows:

746-2.4.1. the period to which the account statement belongs;

746-2.4.2. dates and amounts of crediting;

746-2.4.3. balance according to the previous statement and its date;

746-2.4.4. new balance for date of the current statement;

746-2.4.5. the amounts and payment dates made by the consumer;

746-2.4.6. interest rate for the agreement;

746-2.4.7. any applicable expenses and other payments;

746-2.4.8. when applicable, the minimum amount which is subject to payment.

746-2.5. The agreement of consumer loan according to Article 406.3 of this Code can be signed remotely without simultaneous physical presence of the lessor and the consumer with use until its conclusion, including also the moment of its conclusion, remotely one or several means of communication.

746-2.6. Other requirements to the conclusion of the agreement of consumer loan are remotely determined by the Central bank of the Azerbaijan Republic.

Article 746-3. Consumer's right to refusal of the agreement of consumer loan

746-3.1. The consumer can refuse the agreement of consumer loan without specifying of any reasons within 30 (thirty) days from the date of provision to it money under the agreement of consumer loan. In this case the consumer shall pay the money and percent added from the date of issue of this money about day of their return transferred under the agreement. Except for the amounts of the state fee and the service fee paid by the lessor, obtaining from the consumer of compensating and any other payments it is not allowed.

746-3.2. In case of realization by the consumer of the right, stipulated in Article 746-3.1 of this Code, the agreements on additional services signed with the lessor or the third party rendering services based on the agreement signed with the lessor in connection with the agreement of consumer loan stop, and the consumer does not incur any obligations under these agreements.

Article 746-4. Early agreement performance of consumer loan

746-4.1. The consumer can return consumer loan to the lessor fully or partially without the prevention at any time. In this case the percent added for loan term remaining balance and (or) other payments decrease in proportion to the amount paid ahead of schedule.

746-4.2. The lessor can demand from the consumer the compensation amount defined by the agreement taking into account requirements of Article 746-4 of this Code, for compensation of damage according to this Code in case of early agreement performance of consumer loan.

746-4.3. Compensation amount, specified in Article 746-4.2 of this Code, shall not exceed 1 (one) percent from the amount of ahead of schedule paid amount on consumer loan if before the termination of term of the agreement there were more than one year, and percent 0,5 if there was year or less.

746-4.4. The compensation amount cannot be requested in the following cases:

746-4.4.1. when implementing early payment based on the insurance contract signed under this agreement;

746-4.4.2. in case of crediting of the bank account.

746-4.5. If the amount which is ahead of schedule paid by the consumer on consumer loan within the last twelve months exceeds the forty-multiple size of the minimum wage established over the country, the lessor can demand judicially or on condition of the proof of the damage caused to it in case of such payments by achievement of the separate arrangement with the consumer after date of damnification, higher compensation (proportional to the caused damage), than the compensation amounts specified in Article 746-4.3 of this Code. In this case the damage caused to the lessor consists of difference between the interest rate of the returned credit provided in the credit agreement and interest rate of the loan of the same appointment granted by the lessor at the time of early repayment.

746-4.6. Anyway the compensation amount cannot exceed the amount of the percent estimated on annual interest rate, which are subject to payment during the period between the moment of early repayment of consumer loan by the consumer and the moment of the expiration of the agreement.

Article 746-5. Other features of the agreement of consumer loan

746-5.1. For this or that payment by the consumer to the lessor under the agreement of consumer loan (except as specified, provided by Articles 746-3 and 746-4 of this Code), and also the payment cannot be received for provision by the lessor of information to the consumer (taking into account requirements of Article 746-2.2.17 of this Code).

746-5.2. If percent for delay of payments are provided in the agreement of consumer loan (percent for delay), the size of such percent cannot exceed the amount estimated by way of addition of five percent points to the annual interest rate provided by the agreement of consumer loan. In this case the additional penalty (penalty, penalty fee), the commission or any payment in other form cannot be requested. Charge of percent for delay cannot last more than 180 days. If the damage caused to the lessor exceeds the amount of percent for delay, the lessor can demand from the consumer to indemnify loss in the part exceeding this amount.

746-5.3. Article 742.5.3 of this Code is applied to cases of loss or reduction of cost of ensuring obligation fulfillment on consumer loan only provided that the consumer did not replace providing or did not provide collateral security within two months after promotion of the requirement by the lessor.

746-5.4. All contradictions and uncertainty of the agreement of consumer loan shall be interpreted for benefit of the consumer.

746-5.5. Any expenses and other payments which are not specified in the agreement of consumer loan cannot be requested from the consumer.

746-5.6. The regulations of the credit agreement that the lessor can change unilaterally any term of the contract of consumer loan are invalid. This requirement does not extend to cases of improvement of the situation of the consumer, including simplification of debt load.

Article 746-6. Adjacent credit agreement

746-6.1. The agreement of consumer loan signed for financing of the purchase and sale agreement of certain goods or rendering services and which is in commercial tie with this agreement is recognized the adjacent credit agreement. Commercial ties are caused by availability of one of the following circumstances:

746-6.1.1. the lessor uses services of the seller (person rendering service) in connection with preparation and the conclusion of the credit agreement;

746-6.1.2. purchase and sale of certain goods (rendering service) accurately is specified in the credit agreement.

746-6.2. If the goods covered by the adjacent credit agreement are not provided to the consumer (services are not rendered), provided partially (services are rendered partially) or do not correspond to the purchase and sale agreement (service), the consumer has the right to suspend obligation fulfillment, arising from the adjacent credit agreement, and to demand from the lessor of return of payments.

746-6.3. The consumer can perform the rights specified in Article 746-6.2 of this Code, only in the following cases:

746-6.3.1. the consumer addressed the seller (person rendering service) for execution of terms of the contract of purchase and sale (service), and conditions of the corresponding purchase and sale agreement (service) are not performed within one month after date of this address;

746-6.3.2. in case of cancellation of the purchase and sale agreement in connection with inadequate goods quality provided that the consumer addressed the lessor concerning inadequate goods quality;

746-6.3.3. except as specified terminations of the contract of purchase and sale (service) because of failure to provide goods by the seller (service non-rendering), the consumer returned acquired by it based on the cancelled agreement of purchase and sale (service).

746-6.4. In case of the address of the consumer to the lessor concerning approach of the circumstances specified in Article 746-6.3 of this Code, the lessor returns payments to the consumer within 10 (ten) working days and acquires the right to demand from the seller (person rendering services) of the payments returned to the consumer and other expenses.

746-6.5. Regulations on rendering services in Article 746-6 of this Code extend also to the relations on performance of works.";

1.10. in Article 960.2 after the words "provided that" to add with words "present the Code or".

Article 2

This Law becomes effective in 6 (six) months after its publication.

 

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info