Amending The Civil Code Was Entered Into Force Introducing Changes In Four Areas

• Published date: 29 May 2023
• Subject Matter: Consumer Protection, Consumer Credit
• Law Firm: GRATA International
• Author: GRATA International

New clauses have been added to the Civil Code regulating the written procedure for concluding contracts.

According to the amendments, the written form is deemed to have been complied with even if the transaction has been concluded by electronic or other technical means that allow its content to be reflected on a physical medium in unaltered form, in which case, if any method has been used to unmistakably identify the person expressing the will, the signature requirement is deemed to have been met.The methods of identification of the person expressing the will, may be determined by the Act, other legal acts or the will of the parties.

The Civil Code has been amended in relation to the conclusion of a loan agreement.

The amendments give a new formulation to the loan agreement, according to which under a loan agreement one party (the lender) undertakes to transfer to the other party (the borrower) the ownership of money or other things replaceable, while the borrower undertakes to return the money received to the lender in the same amount or an equal quantity of things of the same kind and quality received by him.

The amendments define "loan disbursement day" as the day on which the borrower or a third party designated by the borrower has the right to dispose of the object of the loan agreement. If the subject of the loan agreement is cash and if the cash is transferred by wire transfer, the date of disbursement of the loan is the date when the amount of the debt is credited to the account of the credit institution servicing the account of the borrower or a third party designated by the borrower, or to the account of another person.

The amendments introduce a procedure for unilateral termination of contractual obligations:

1. the borrower may unilaterally refuse to receive the loan in full or in part until the subject of the loan agreement has been provided to him;
2. if it becomes clear to the lender that the debt will not be repaid when due, or if the borrower has failed to fulfil an obligation stipulated in the loan agreement, including failure to provide a guarantee, the lender may unilaterally withdraw from full or partial performance of the loan obligation due to a material deterioration of the borrower's financial situation or the provision of any untrue information by the borrower.

The following provisions are given in connection with the repayment of loan obligations:

1. the borrower must repay the debt (and interest and/or fees) to the lender at the time and in the manner provided for in the loan agreement;
2. the lender may demand repayment of the debt at any time, if the...