§ 5-17. Co-debtors: who is liable for how much, and credit assessment

When several customers take out a loan together, the agreement must show how much of the amount owed the bank can claim from each of them. This requirement is part of the rules on co-debtors, which apply when at least one of the borrowers is a consumer (forbruker) (§ 5-16).

The credit assessment is based on this stated division. Even if the borrowers have agreed something else between themselves, it is the division in the agreement that is used when the bank assesses whether each of them is creditworthy under § 5-2. Under § 5-2, the assessment must be based on information about, among other things, income, assets, expenses and other obligations.

Sometimes a borrower's creditworthiness depends on that person being able to claim money back from another borrower (recourse). Recourse is regulated in § 2-16: Anyone who has paid more than their share can immediately claim it back from the others. If one of them does not cover their share, the others can be required to pay it. In such cases, the bank must ensure that the agreement prohibits the borrower from giving up the repayment claim before it can be enforced.

The Government can issue supplementary rules on credit assessment for such agreements, and on terms that are relevant to the assessment of creditworthiness.

This section is the first rule after the scope provision in § 5-16. The next ones concern the bank's duty to notify (§ 5-18), the co-debtor's right to information (§ 5-19), release of security (§ 5-20) and reduction of liability for the debt (§ 5-21). Example: Two customers take out a loan together. The agreement states how large a share the bank can claim from each. Between themselves, they have agreed a different division. The bank must still assess each customer's creditworthiness based on the division in the agreement.