S.L. 371.21 Art. 22Content of the credit agreement.

(1) The credit agreement shall be drawn up in writing or on a durable medium, and shall specify as much as possible, in a plain and intelligible language that can be easily understood by the consumer, the following:

(a) the information listed under regulation 17(2)(b), (c), (e), and (g) to (j);

(b) the identities and geographical addresses of the contracting parties;

(c) the annual percentage rate of charge and the total amount payable by the consumer calculated at the time the credit agreement is concluded: Provided that all the assumptions used in calculating that rate shall be mentioned;

(d) the right of the consumer to receive, on request and free of charge, at any time throughout the duration of the credit, a statement of account in the form of an amortisation table:

Provided that the amortisation table shall:

(i) indicate the payments owing and the periods and conditions relating to the payment of such amounts;

(ii) contain a breakdown of each repayment showing the interest calculated on the basis of the borrowing rate and where applicable any additional costs;

(iii) where the interest is not fixed or the additional costs may be changed under the credit agreement, it shall indicate clearly and concisely that the data contained in the table will remain valid only until such time as the borrowing rate or the additional costs are changed in accordance with the credit agreement;

(e) if charges and interest are to be paid, a statement showing the periods and conditions for the payment of the interest and of any associated recurrent and non-recurrent charges;

(f) the interest rate applicable in the case of late payments as applicable at the time of the conclusion of the credit agreement and the arrangement for its adjustment and, where applicable, any charges payable for default;

(g) the procedure to be followed in exercising the right of termination of the credit agreement;

(h) information concerning the right resulting under regulation 23 and the conditions attached to that right;

(i) whether or not there is an out-of-court procedure for the consumer to make a complaint, the redress mechanism available and the methods for having access to it;

(j) where applicable, other contractual terms and conditions.

(2) (a) In the event of any changes in the borrowing rate, the creditor shall inform the consumer of any such change, on paper or another durable medium, before the change takes effect: Provided that such information shall at least state:

(i) the amount of the payments to be made after the new borrowing rate takes effect; and

(ii) in cases where the number or frequency of the payments changes, provide the consumer with particulars of such payment changes.

(b) Without prejudice to paragraph (a), the parties to the credit agreement may agree in the credit agreement that:

(i) where the change in the borrowing rate is correlated with a change in a reference rate, the information referred to in paragraph (a) is to be given to the consumer periodically;

(ii) the new reference rate is to be made publicly available by appropriate means, which may include a publication on the creditor’s website or a public advert; and

(iii) the information concerning the new reference rate is to be kept available in the premises of the creditor and communicated personally to the consumer together with the amount of new periodic instalments.

(c) Where changes in the borrowing rate are determined by way of auction on the capital markets and it is therefore impossible for the creditor to inform the consumer of any change before the change takes effect, the creditor shall, in good time before the auction, inform the consumer on paper or on another durable medium of the upcoming procedure and provide an indication of how the borrowing rate could be affected.

(3) Where applicable, the creditor shall make available to the consumer, free of charge and at any time during the duration of the equity release financial product, a statement of account in the form of an amortisation table.

(4) Every public deed of loan to which these regulations apply shall make a direct reference to the equity release financial product entered into and between the creditor and the consumer, the date thereof and shall state expressly that the consumer has received, read, understood and agreed to all the terms set out in the credit agreement, after due explanation by the creditor as may be amended from time to time according to the terms thereof.