The period for the termination of the loan agreement, in accordance with banking law, is 30 days and, in the event of a risk of bankruptcy, 7 days for the borrower. The provisions of the loan agreement can only extend this period, they cannot shorten it. Any contractual provisions allowing the bank to terminate the contract in the short term or immediately would be inoperative. The bank also has the right to regularly check the creditworthiness after the loan is granted. Under section 74 of the Bank Act during the term of the loan agreement, the borrower is required to provide, at the request of the bank, the information and documents necessary to assess his financial and economic situation and to control the use and repayment of the loan. If, during the term of the loan agreement, the borrower was not required to provide the above information and documents to the bank, this could be an argument in favour of the bank because it has lost its solvency and therefore does not wish to be audited. The termination declarations apply only to secured loans that hold certain assets as collateral. For unsecured loans, such as credit cards or personal lines of credit, no termination extract is required. The amount of the loan granted may be reduced in relation to such a loan, which has not yet been fully used, i.e. .part of the loan granted remains to be paid to the borrower. Reducing the amount of the loan in practice means that the borrower loses the right to require the bank to repay the unused portion of the loan. Declarations of termination are legal documents necessary to exempt a borrower from any right of bet invoked against his property. The return is recorded along with other documents, such as.
B.dem title of the property, in the Public Records Office. Today, secured lenders are required to submit these termination declarations in accordance with the rules of the Single Trade Code. Although there is some delay in the presentation and processing of documents, termination declarations are usually provided immediately as soon as a loan has been repaid. Another fact that the borrower has the right to give the bank the right to cancel the loan or reduce its amount is the borrower`s credit loss.