§ 5-15. Blocking (sperring) of access to credit

Financial Contracts Act (Finansavtaleloven)·LOV-2020-12-18-146

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The text of the law (unofficial translation)

§ 5-15. Blocking of access to credit

(1) The lender (kredittyter) may block the customer's (kunde) access to use a credit facility under a credit agreement (kredittavtale) if the conditions for blocking are set out in the credit agreement and objectively justified considerations indicate that the credit facility should be blocked.
(2) The lender shall notify the customer of the blocking in a written document and at the same time state the grounds for the blocking. § 3-53 third paragraph, third sentence applies correspondingly. If it is not possible to notify the customer before the blocking is implemented, the customer shall be notified immediately after the blocking.
Source: Lovdata — Finansavtaleloven (the Financial Contracts Act) § 5-15

What does this mean?

This section allows the bank to block further use of a credit facility. This requires that the agreement itself contains conditions for blocking, and that objective considerations support blocking it. Blocking is something different from notice of termination (oppsigelse) under § 5-14, and the customer can still give notice of termination under § 5-13.

The bank must notify the customer in writing and state why it is blocking. The notice must also inform the customer of the right to complain, cf. § 3-53. If the bank cannot give notice in advance, the notice must come immediately after the blocking has been put in place.

Related sections
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