Section 11: Credit agreements

11. Credit agreements Where a lender grants a credit facility to a person, the credit agreement between the parties shall— (a) contain, by way of a summary at the beginning or the end of the document, the particulars relating to— (i) the names, occupation and place of residence or business of the parties; (ii) the amount of the credit facility and the terms of its repayment, specifying the rate of annual interest chargeable, the periodicity of repayment, the instalment repayable, the amount of interest and the penalty on default payment; and (iii) the immovable property, if any, to be given as security for the performance by the borrower of his obligations; (b) be made in accordance with the guidelines issued under section 6 (5); (c) subject to section 16, not contain any provisions for any charge by way of penalty; (d) not impose on the borrower an obligation to pay to a law practitioner a fee, by whatever name called, other than one of an amount equivalent to what the law practitioner would be entitled to as a result of a claim presented to a Court; and (e) in respect of a loan, provide that the credit facility may only be recalled on the ground that the borrower has failed to— (i) effect payment of the instalment due— (A) where repayment of the loan is effected on a monthly basis, for a period of 3 months following the first default; or (B) in any other case, for a period of 6 months following the first default; or (ii) fulfil any other obligation under the credit agreement. [Issue 7] B11 – 6 Revised Laws of Mauritius