§ 2-9. Repayment of credit
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- When you repay, interest and costs must be paid up to and including the day of payment.
- The debtor (skyldner) can pay before the agreed time.
- A payment without instructions goes to the oldest claim that has fallen due.
- The Late Payment Interest Act (forsinkelsesrenteloven) applies to late payment, with stronger protection for the debtor.
The text of the law (unofficial translation)
§ 2-9. Repayment of credit
What does this mean?
This section says how a credit is settled. If you pay off the loan, you must cover interest, fees and other costs up to and including the day you pay. The exception is early repayment of a fixed-rate loan (fastrentekreditt), which § 2-10 regulates. Otherwise, the main rule is that the lender can demand the loan repaid, with accrued interest and costs, whenever they wish, unless something else has been agreed. The debtor can also pay all or part of the amount before the agreed time.
The third paragraph solves a practical problem. If the debtor pays an instalment or another partial payment without saying what it is for, and the context does not indicate otherwise, the payment is set against the oldest claim that has fallen due under the credit agreement. Example: The debtor sends in an amount without any note, and two instalments have fallen due. The amount then goes to the instalment that fell due first.
The fourth paragraph refers to the Late Payment Interest Act. It applies when payment in connection with the credit agreement is late, unless the agreement has terms that are better for the debtor. For mortgages, the debtor benefits from § 4 of the Late Payment Interest Act even if they are not a consumer. That section says that late payment interest (forsinkelsesrente) can be reduced if the debtor had reasonable grounds to refuse to pay. It also says that the creditor cannot charge fees or average-calculated loss items other than those permitted by the Debt Collection Act (inkassoloven), and that the rules cannot be departed from to the detriment of the debtor.
§ 2-10 gives the creditor the right to demand compensation for loss on early repayment of a fixed-rate loan, if the agreement says so. The debtor is not liable for more than the interest that would otherwise have been paid. If the creditor can demand compensation for loss, the debtor shall to the same extent be credited with any gain the creditor makes. § 2-11 and § 2-12 apply after the claim has been paid: the debtor and the guarantor (kausjonist) must receive written confirmation, and the creditor must make sure that collateral (pant) and other security are deleted or released, unless otherwise agreed.