Credit and consumer law
Interdependence of mortgage loan and financed contract: the resolutory condition
By Charlotte GAUCHON25 June 2025In the mind of the borrower, buying a property and taking out a loan to finance it are two sides of the same coin. However, in law, these two contracts could have separate fates. Aware of this risk, the legislator has created a strong legal link between the contract of sale and the property loan that finances it. This interdependence is a cornerstone of protection for borrowers on home loans, in the same way as other mechanisms used in specific home loan situations. Understanding how this link works, and in particular the resolutory condition, is essential for all buyers. In the event of difficulties, the advice of a lawyer who is an expert in mortgage law can help to secure the transaction. The principle of legal interdependence For an individual or an SME manager, buying premises and obtaining the necessary loan are inseparable. It is unthinkable...
Export credit insurance: an essential lever
Export credit, Credit and consumer lawIn the arena of international trade, every transaction is accompanied by a multitude of risks. The remoteness of trading partners, political instability in certain regions, currency volatility and the potential insolvency of debtors are major obstacles for exporting companies. These uncertainties can turn a promising business opportunity into a financial nightmare. Credit insurance...Personal recovery: a solution for irremediably compromised situations
Credit and consumer law, Over-indebtednessWhen debts pile up with no hope of being cleared, a situation often referred to as over-indebtedness, the French legal system offers a radical solution: personal recovery. This procedure, often compared to 'civil bankruptcy', allows debtors to start afresh by wiping out their debts under certain strict conditions. Personal recovery...Loan insurance: issues and developments
Mortgages, Credit and consumer lawGot your mortgage? Congratulations. But don't forget loan insurance, which is often relegated to second place during negotiations, but is nonetheless essential. It can account for a substantial proportion of the total cost of your loan, sometimes up to 30% or even more, depending on your profile and cover. Its role is...Internal credit insurance: protecting receivables on the domestic market
Credit insurance, Credit and consumer lawCompanies that sell on credit are exposed to the risk of non-payment. This risk, which is often overlooked, can jeopardise their cash flow and even their survival. Internal credit insurance offers protection against this threat. Scope of internal credit insurance Traditional insolvency insurance Internal credit insurance mainly protects against the insolvency of debtors. However, this concept...Export credits and European law: between prohibition and harmonisation
Export credit, Credit and consumer lawExport credits are an essential tool in international trade. In the European Union, they are governed by a complex legal framework, between competition law and the common commercial policy. Understanding these rules is crucial for exporting companies and their banks. State aid prohibited in the EU is...Bank round tables in international loans: mechanisms and precautions
Export credit, Credit and consumer lawThe financing of major international projects often exceeds the capacity of a single banking institution. In such cases, it is essential to set up a banking "pool" to spread the risks and raise sufficient capital. The need for banking pools Against a backdrop of international competition...Formation of a mortgage contract
Mortgages, Credit and consumer lawBuying a property usually involves taking out a loan. This may seem like a straightforward operation, but in reality it is governed by strict rules designed to protect the borrower. The mortgage contract is not formed instantly, but follows a precise, sequenced process. Understanding these stages is essential if you are to...Property leasing: specific situations and special arrangements
Leasing, Credit and consumer lawProperty leasing is a powerful financing tool, but its structure can take different forms depending on a company's needs. Unlike traditional credit, leasing combines rental and purchase options in a sophisticated legal arrangement defined by article L. 313-7 of the French Monetary and Financial Code. Controlling the...The administration of syndicated loans: legal and operational issues
Syndicated credit, Credit and consumer lawSyndicated loans are an essential tool for financing large-scale projects. This technique makes it possible to spread the risk between several banks while ensuring harmonised credit management. The effectiveness of this mechanism depends on rigorous organisation and a clear definition of roles. 1. Centralised administration...Changes in over-indebtedness law: towards better protection for debtors
Credit and consumer law, Over-indebtednessOver-indebtedness is a relatively recent phenomenon in our legal system. Since the Neiertz Act of 1989, there has been a steady succession of reforms. This constant evolution aims to adapt the law to new economic and social realities. The emergence of the law on over-indebtedness in France Over-indebtedness has not...The professional duties of mortgage lenders and intermediaries
Mortgages, Credit and consumer lawA home loan is often the biggest financial commitment in a consumer's life. This complex operation is logically accompanied by a strict regulatory framework that imposes precise obligations on credit professionals, whether lenders or intermediaries. The aim of these rules is to protect the individual borrower and to...Legal classification of syndicated loans and sub-participations: a legal labyrinth
Syndicated credit, Credit and consumer lawBetween banking pragmatism and legal theories, syndicated loans and sub-participation transactions navigate a grey area. Their classification remains a headache for the courts and legal doctrine. Here is an overview of the debates and recent developments. 1. Syndicated credit: an elusive qualification A number of banks, a variety of...Advertising and information on home loans
Mortgages, Credit and consumer lawTaking out a mortgage is often the project of a lifetime. The opacity that has long characterised this sector has led the legislator, notably through the reform of home credit and your rights, to impose strict rules to protect borrowers. Advertising and pre-contractual information are at the heart of...The euro and its impact on leasing contracts
Leasing, Credit and consumer lawA recurring concern for companies when the euro was introduced was that of current leasing contracts. These contracts, which are executed successively over several years, seemed to be particularly exposed to currency turbulence. Twenty years on, these questions are still relevant when analysing the legal mechanisms applicable...Syndicated loans: mechanisms and legal issues
Syndicated credit, Credit and consumer lawMajor property, industrial or infrastructure projects require colossal amounts of financing. A single bank can rarely take them on alone. This is where syndicated loans come in. Definition and typology of syndicated loans Definition and legal framework A syndicated loan is a transaction in which several banks join forces to grant a single loan....Bank sub-participation: a hidden risk transfer mechanism
Syndicated credit, Credit and consumer lawIn the world of structured finance, bank sub-participation operates in the shadows. Unlike direct syndication, where all the lenders sign the contractual documentation, this mechanism allows a bank to transfer all or part of its credit risk to other institutions, often without the borrower's knowledge. 1....Transfer, assignment and fraud exception in documentary credits
Documentary credit, Credit and consumer lawIn international trade, the documentary credit is a powerful tool for securing payments. Its strength lies in its independence from the underlying commercial contract. But what happens when the exporter wishes to mobilise the credit before it has even been realised? The circulation of documentary credits is governed by specific rules...Documents and compliance in documentary credits: the decisive examination criterion
Documentary credit, Credit and consumer lawA poorly checked documentary credit can turn a promised international transaction into a legal nightmare. Examination of the documents is the critical stage where everything can come to a head. In my practice as a lawyer specialising in international banking law, this moment of verification crystallises the tensions between importers, exporters and banks. A minor discrepancy in...Legal relations in documentary credits: who owes what to whom?
Documentary credit, Credit and consumer lawIn international commercial transactions, the documentary credit offers valuable security to the parties. This payment technique is based on a complex network of obligations between buyer, seller and banks. Let's untangle these legal relationships and their practical implications. Relationship between buyer and seller The buyer (principal) undertakes to open a documentary...The documentary credit: mechanism and fundamental principles
Documentary credit, Credit and consumer lawIn international trade, payment is often the nerve centre of a transaction. The importer fears paying without receiving the goods ordered. The exporter fears delivery without payment. The documentary credit solves this equation by offering a mutual guarantee to both parties. This legal and financial instrument, a pillar of the...
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