Suspension of obligations under loan agreements without a mortgage guarantee.

We’ll immediately tell you the results announced by the State on the Suspension of obligations under credit agreements without a mortgage guarantee.

Article 21. Suspension of performance of obligations under credit agreements without mortgage guarantee.

1. The established measures that facilitate the temporary suspension of contractual obligations arising from any loan or loan without a pledge guarantee, without a mortgage guarantee, which existed at the date of entry into force of this royal decree-law, which was concluded by an individual in a vulnerable economic situation, as defined in article 16 of this decree, as a consequence of the health crisis caused by # COVID_19.
2. The same measures will also be applied to guarantors and guarantors of the principal debtor under the сircumstances specified in Article 16.

Section 23. Request for Suspension.
Debtors, within the framework of suspension of obligations arising from loan agreements without collateral, may demand from the creditor, within one month after the end of the emergency, the suspension of their obligations. Debtors will have to complete, together with the suspension request, the documentation provided for in article 17.

Section 24. Provision of Suspension
1. After the suspension request referred to in Article 23 of this Royal Decree-Law and having proved the situation of economic vulnerability, the lender will proceed to automatically suspend the obligations arising from the loan without a mortgage guarantee.
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4. The suspension will continue for three months, which can be extended by agreement of the Council of Ministers.

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Article 25. Consequences of suspension.
1. During the suspension period:
a) The creditor may not demand payment of a fee or any item of concepts that are included in this contract (depreciation of capital or payment of interest) either in whole or in part.
b) No kind of interest can be accrued, either ordinary or for late payment.

2. The validity period agreed upon in the contract will be extended, as a result of the suspension, for the duration of the requested suspension, without any changes to the remaining agreed terms. In the case of registered goods or rights, they will be adapted in accordance with their own rules, in accordance with the general rules and the provisions of Section 2 of the previous article.

3. The suspension of interest payments will not apply to debtors or contracts other than those regulated by this royal decree-law

From #ConsultInfo, we recommend that all those main debtors who have suffered from the health crisis caused by #Covid_19 contact their trusted advisors to analyze in detail the situation of economic vulnerability in each case individually and, if necessary, request a moratorium on payment mortgages and / or payment of loan or credit agreements without a mortgage guarantee.

You can also contact us for a consultation!

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