A borrower is considered as cooperating with the lenders if the borrower:
- provides full and updated contact details to the lenders or any third party acting on the lender’s behalf; (e.g. landline or mobile phone and fax numbers, e-mail address, home and work address) and designates a family member or friend as process agent for any event that the borrower cannot be reached.
- is available to make contact with the lender or a third party acting on the lender’s behalf and responds honestly and clearly to any phone calls made or letters sent by the lender or a third party acting on the lender’s behalf, either in person or through their process agent, with any means available, within 15 working days.
- makes, either in person or through their process agent, full and honest disclosure of information to the lender or a third party acting on the lender’s behalf, relevant to the borrower’s current financial status within 15 working days as of the day of its change or within 15 working days as of the day such information was requested by the lender or a third party acting on the lender’s behalf.
- makes, either in person or through their process agent, full and honest disclosure of information to the lender or a third party acting on the lender’s behalf, that would have significant impact on their financial status, within 15 working days as of the day the borrower became aware thereof (e.g. fulfilment of requirements to receive a benefit, any new assets obtained (inheritance), loss of assets, notice of dismissal, termination of lease, purchase of insurance products, earnings of any kind, etc.)
Consents to find an alternative debt restructuring solution in collaboration with the lender or a third party acting on the lender’s behalf, in line with the provisions of the Code of Conduct of Law 4224/2013 as applicable.
If the borrower is classified as “non-cooperating” the following legal and financial consequences may apply:
Initiation of legal/court actions for the collection of receivables.
Liquidation of any collateral provided by the borrower or any other party to the agreement, and/or any other assets.
Possible exclusion from special beneficial provisions of law.
Consequences of failure to reach an agreement
In the event of failure to reach a forbearance or resolution and closure agreement:
The Bank shall have the right to terminate the loan agreement.
Legal or court actions may take place for the collection of receivables.
Mechanisms for out-of-court or judicial debt settlement or a resolution order or bankruptcy may be activated.
There is a possibility that the borrower may still be liable for any outstanding amount of debt, which will continue to be charged with interest as provided for in the relevant agreement, regardless of the liquidation of any collateral or the pledge of other assets.
You may like