Common use of Termination of the Loan Agreement Clause in Contracts

Termination of the Loan Agreement. 13.1. In addition to his right to early repayment (Clause 9.7), the Customer is entitled to terminate any Loan Agreement in any form at any time. Whilst termination is free of charge, in case of such termination, all outstanding amounts will be immediately due and payable. 13.2. Novum and the Customer are entitled to terminate the contract for important cause (“wichtiger Grund”) at any time with immediate effect when that cause renders continuance of the contract unreasonable (“unzumutbar”) for the terminating party (“außerordentliche Kündigung”). A cause entitling Novum to terminate pursuant to this Clause can (but need not) be given especially if: 13.2.1. the financial situation of the Customer or of another person liable for repayment of a Loan deteriorates, this development endangering fulfilment of Novum’s claims under the contract; 13.2.2. the Customer made incorrect statements concerning his/her financial situation, identity, bank account or other material information; or if 13.2.3. the Customer fails to comply with an obligation to provide Novum with collateral or increase the existing collateral. 13.3. In the case of Instalment Loans, “Terminsverlust” may occur if the Customer falls into arrears for at least six weeks with either a full month’s instalment or with parts of instalments and/or ancillary payments totalling at least a full month’s instalment. Enforcing a “Terminsverlust” presupposes further (a) that Novum fully performed its obligations under the contract (= disbursed the loan in due manner) and (b) sent the Customer a payment reminder threatening “Terminsverlust” and granting a grace period of at least two weeks. The latter reminder may already be sent within the six weeks’ default period.

Termination of the Loan Agreement. 13.1. In addition to his right to early repayment (Clause 9.7), the Customer is entitled to terminate any Loan Agreement in any form at any time. Whilst termination is free of charge, in case of such termination, all outstanding amounts will be immediately due and payable. 13.2. Novum and the Customer are entitled to terminate the contract for important a cause (“wichtiger Grund”) at any time with immediate effect when that cause renders continuance of the contract unreasonable (“unzumutbar”) for the terminating party (“außerordentliche KündigungKündigung aus wichtigem Grund”). A cause entitling Novum to terminate pursuant to this Clause can (but need not) be given especially if: 13.2.1. the financial situation of the Customer or of another person liable for repayment of a Loan deteriorates, this development endangering fulfilment of Novum’s claims under the contract; 13.2.2. the Customer made incorrect statements concerning his/her financial situation, identity, bank account or other material information; or if 13.2.3. the Customer fails to comply with an obligation to provide Novum with collateral or increase the existing collateral. 13.3. In the case of Instalment Loans, “Terminsverlust” may occur if the Customer falls into arrears for at least six weeks with either a full month’s instalment or with parts of instalments and/or ancillary payments totalling at least a full month’s instalment. Enforcing a “Terminsverlust” presupposes further (a) that Novum fully performed its obligations under the contract (= disbursed the loan in due manner) and (b) sent the Customer a payment reminder threatening “Terminsverlust” and granting a grace period of at least two weeks. The latter reminder may already be sent within the six weeks’ default period.