Termination of a loan agreement: judicial practice. How to terminate a loan agreement with a bank unilaterally: sample application

Not only the bank, but also the borrower has the right to file a lawsuit to terminate the loan agreement. The reason may be unlawful actions of the creditor or significant changes in the circumstances of the client. The procedure for terminating the loan agreement through the court, a list of necessary documents, as well as the consequences for the borrower and the bank, you will find below.

You can file a lawsuit in person or through a proxy, at the place of residence or location of the bank. When applying to the court, you should make a statement of claim, which indicates:

• name of the judicial authority;
• personal information - address and full name, as well as the name and location of the respondent bank;
• the fact of violation of your rights and the essence of the requirements;
• circumstances on the basis of which claims arose and evidence on them;
• information on compliance with the appeal to the bank, if it is provided for by the loan agreement;
• list of attached documents.

If there are several defendants in the case, make the appropriate number of copies of this statement.

Together with the claim, it is necessary to submit documents confirming:

1. Payment of state duty. For individuals, its size is 200 p.
2. The competence of the representative, if any. This may be a power of attorney or another document.
3. Circumstances on the basis of which the lawsuit is filed. This will require:

• additions and changes to the contract;
• loan application;
• detailed calculation of the cost of the loan;
• statements from your bank accounts about the movement of funds;
• documentary evidence of correspondence with the financial institution with a note on receipt of letters and other references.

The number of copies of these documents should correspond to the number of participants in the case.

4. Attempt to resolve the dispute in pre-trial order. A written claim with a bank note on receipt is suitable as evidence.

The success of the case in court depends largely on the quality of the documents provided. A credit lawyer will help you to draw up a statement and collect the necessary package of documents. The costs of his services will pay off by competent conduct of the trial.

Before filing a lawsuit, you must attempt to resolve the dispute peacefully. To do this, you must submit to the bank an application for termination of the contract. A special form can be taken from an employee of the financial institution or found on the Internet and printed. When submitting a document to the bank, consider the following points:

1. You should indicate in detail the reasons for the termination of cooperation with a credit institution.
2. When sending a document by mail, order a notification letter. The receipt of its receipt by the bank will serve as evidence in court.
3. When submitting a personal application to the bank’s administration, make sure that it is registered. Make a photocopy of the document and ask the employee to put a note on it.

If the bank refuses you or does not answer you at all, contact. In accordance with paragraph 2 of Art. 452 of the Civil Code of the Russian Federation, you have the right to do so after 30 days from the date of application.

You need:

1. Draw up a claim and sue.
2. Within 5 days, get a decision on the adoption of the case for legal proceedings.
3. Attend the preliminary meeting and the main proceedings.
4. Get a court decision.

Please note that this does not exempt you from paying the remaining part of the debt and other expenses related to servicing the loan. With a positive court decision, debt growth will be completely stopped, since the bank will not be able to charge fines and late fees.

The court decides in favor of the bank or the borrower, depending on the reasons for the termination of the contract and the evidence provided:

1. The lawsuit was filed in connection with the unlawful accrual of commissions by the bank and the claim is justified by you. Most likely, the court will oblige the bank to pay illegally taken commissions and fees.
2. Some time after the loan was issued, your circumstances changed - you lost your job, fell ill, lost your bail, etc. If you prove that the situation is hopeless, the court will change the payment schedule, monthly installment and other conditions.

In the event that the contract provided for sanctions for early termination, a fine may be imposed on the borrower.

Practice shows that such disputes are more often resolved in favor of banks. Contact the court if you are confident in your innocence and have powerful arguments.

Within a month from the day the court makes the final decision, you can file an appeal.

There are two ways to terminate a loan agreement: the parties sometimes agree, and more often this happens through a court of law. Wherein termination of a loan agreement  notes possible if art. 450 of the Civil Code of the Russian Federation.

When a loan agreement is terminated by agreement of the parties

Two points are taken into account:

1. Has the borrower repaid the debt under the contract?
2. Has the contract expired?

If the loan debt is fully repaid, the contract is automatically terminated (Article 408 of the Civil Code of the Russian Federation). In this case, additional documents do not need to be issued. But even if the borrower fulfilled his initial obligations, the validity of other clauses of the contract that were concluded to service the created debt remains.

Here is a common example: there is a bank account agreement concluded to provide a cashless loan to a current account. And since such agreements do not automatically terminate, debts on servicing and the initial introduction of a bank card continue to accumulate. Therefore, it is required to correctly draw up your desire to terminate the related agreements, and then get a certificate from the bank confirming that at the moment you have no debt to the credit institution.

How court practice considers termination of a loan agreement with outstanding debt

After the expiration of the contract, it does not terminate if credit debt remains. Then the borrower who wants to terminate the loan agreement needs to go to court. If the contract has expired, you must pay off the debt. But first, in case of serious difficulty, it is necessary to contact the bank in order to restructure the debt, that is, draw up more acceptable conditions:

1. change repayment schedule;
2. extend terms;
3. lower interest rate.

Early termination of such an agreement

1. With a one-time provision of funds, if you have fulfilled the terms of the contract ahead of schedule, you need to draw up a statement. If this phrase was not indicated in the contract, after repayment of the loan, it terminates automatically (Article 408 of the Civil Code of the Russian Federation).
2. You can sign an additional agreement to this agreement regarding its termination if the agreement concerns the opening of a credit line. The supplement is suitable for the case when you have repaid the debt, and you are not going to take new credit tranches (paragraph 1 of article 450 of the Civil Code of the Russian Federation). Such a case is rarely considered in judicial practice, since there is a consent of the parties.

Used arguments for terminating a loan agreement

When the issue cannot be resolved peacefully, the borrower goes to court using various arguments.

1. The other party could significantly violate the terms of the contract. Such a violation is considered significant if it led to damage to the interests of the borrower, and he lost the benefit that he could count on when he concluded the contract (Clause 2, Article 450 of the Civil Code of the Russian Federation). The following may serve as a reason for going to court:
2. illegal appointment and collection of penalties, various commissions;
3. violation of the order of cancellation of debts, there may also be other reasons.
4. The parties entered into an agreement under specific circumstances that have now changed (Article 451 of the Civil Code of the Russian Federation):
5. the borrower could lose his job;
6. he lost previously guaranteed other income.

What should be done to terminate the contract through the court?

Offer to a credit institution to terminate a loan agreement

First of all, send a letter to the bank with a proposal to terminate the contract. Moreover, a registered letter with delivery confirmation. But you can make a photocopy and personally deliver the original to the appropriate department of the bank. Let them make a note in the journal about the incoming documentation. The same confirmation should be on your photocopy. When you receive a refusal or do not receive any answer at all within the prescribed period (30 days), send your request to the court regarding the termination of the contract (clause 2 of article 452 of the Civil Code of the Russian Federation).

Preparation of a statement of claim for submission to court

Such an application must be submitted in writing. The following shall be indicated:

1. name of court;
2. your (plaintiff's) address and bank;
3. how the bank violated your rights;
4. circumstances to which the plaintiff draws attention;
5. claimant's claim;
6. evidence of a violation of your rights, for example, certain consumer rights (Article 28, paragraph 7 of Article 29 of the Code of Civil Procedure of the Russian Federation);
7. list of additional documents (Article 131 of the Code of Civil Procedure of the Russian Federation).

Such a statement must be signed by the following persons:

1. claimant;
2. his representative, if any.

Then why was it necessary to consider the possibility of resolving controversial issues regarding the termination of the contract, peacefully, if it was possible to resolve this issue immediately in court? The answer is simple: this will mean that you previously made every effort to resolve the conflict, did not hide from your creditors or the problem itself. The court must stand on your side.

P.S. If you need a credit debt lawyer - click on the link.

How to terminate the contract before its execution

(The conditions under which the contract may be terminated until the parties fulfill their obligations)

It is good when the contractual relationship ends with the proper performance of obligations by both of its parties. But this does not always happen. In practice, there is often a need to terminate the contract: when the circumstances have changed significantly, on the basis of which the parties entered into a contract, or when one of the parties does not fulfill its obligations.

The law provides for several ways to terminate contracts:

• by mutual agreement;
• through the court;
• by refusing to fulfill the contract.

Mutual agreement termination

Terminating an irrelevant agreement is easier by mutual agreement. As a general rule, the agreement is terminated in the same form in which it was concluded (Article 452 of the Civil Code of the Russian Federation). Most often, this is a written form. The parties enter into a termination agreement in which it is advisable to spell out the consequences of this action. For example, the parties may stipulate that even in the case of non-equivalent fulfillment of obligations to each other, the rule on obligations due to unjust enrichment does not apply. Or vice versa, an obligation may be established on the parties returning to each other everything fulfilled. This allows the provisions of Article 453 of the Civil Code.

If one of the parties to the agreement came to the conclusion that the continuation of the contractual relationship was not practical and suggested terminating it, the other party has the right to refuse termination, citing the fact that it did not commit any violations (Resolution of the Arbitration Court of the North-Western District in the case of 2015 of the year).

Termination of contractual obligations through court

The law contains a list of situations in which any party can appeal to the court for termination of the agreements (Articles 450, 451 of the Civil Code of the Russian Federation):

• a significant change in the circumstances that the parties took into account when concluding the contract;
• substantial breach of contract by one of the parties;
• other cases stipulated by law or contract.

But before filing a lawsuit, the party must send a letter to the counterparty with a proposal to terminate the contract, otherwise the court will leave the application without consideration (Articles 148 of the Arbitration Procedure Code of the Russian Federation, 222 Code of Civil Procedure of the Russian Federation).

Denunciation of agreements due to a material change in circumstances

A change in circumstances is deemed material if, in the new circumstances, the parties would not have entered into an agreement or concluded on completely different conditions.

It is important that the consequence of such changes is not the impossibility of fulfilling contractual obligations, but a significant violation of the balance of interests of the parties in case of execution of the contract. In this case, the parties themselves may provide those conditions that will allow terminating the contract. For example, a change in the exchange rate.

To determine the materiality of the changes, the circumstances accompanying the specific legal relations of the parties matter. The claim will be satisfied if there are a combination of the following conditions:

• if the parties did not anticipate such changes when signing the contract;
• if the plaintiff could not overcome the reasons for the changes with all his will;
• if the performance of the contract in the current version threatens a serious violation of property interests;
• if it does not follow from the customs or substance of the contract that the risk of a change in circumstances is borne by the plaintiff.

For example, with a significant increase in the cost of materials and equipment provided by the contractor, and if the customer refuses to increase the set price, the former has the right to demand termination of the contract due to changed circumstances (Article 709 of the Civil Code of the Russian Federation).

By satisfying the termination requirement, the court may also determine the consequences of this action.

In this case, the court will take into account and fairly distribute all the costs that the parties incurred in connection with the execution of the terminated contract. To do this, either party must present a request to the judge.

Termination of the contract in connection with its material violation of one of the parties

First of all, the concept of the materiality of the violation must be defined. Violation of the contract by one of its parties is significant when it brings damage to the other side. But not just the damage, but with which the injured party is largely deprived of what it had reason to rely on when concluding the contract.

Judicial practice: the plaintiff appealed to the court with a request to terminate the contract of sale of a share in the authorized capital of the LLC. The requirements are justified by the fact that the defendant did not make payment under the contract on time. In the recall, the defendant acknowledged the lawsuit. The court found that the plaintiff did not receive what he had the right to count on when concluding the contract, namely: payment of the share he sold in the amount of about 4 million rubles. In addition, non-payment by the buyer of the acquired property for a long period of time (more than 2 years) is a significant violation of the contract and the reason for its termination. Therefore, the court decided to terminate the contract (Decision of the Arbitration Court of the Amur Region in the case of 2016).

Other cases allowing termination of the contract through the court

Various cases where a party to a contract may apply to the court for its termination, established by the provisions on various types of contracts. The main condition is violation of the contract by the counterparty.

Thus, article 619 of the Civil Code of the Russian Federation gives the lessor the right to terminate the contract ahead of time through the court (for example, if the tenant repeatedly misses the due date). The tenant is also entitled to terminate the contract in case of violation of the contract by the lessor.

The parties themselves may establish in the contract circumstances allowing termination of the contract through the court.

Unilateral refusal to fulfill the contract

According to the general rule, unilateral refusal to fulfill obligations is not allowed (article 310 of the Civil Code). Exceptions to it are established by law or contract. For example, if the seller has not fulfilled the buyer's requirements for the completion of the goods within a reasonable time, the buyer has the right to refuse to fulfill the contract of sale and demand a refund of the amount paid (article 480 of the Civil Code of the Russian Federation).

In addition, in all situations where the law allows you to apply to the court for termination of the contract, any party can refuse to fulfill the agreement by sending a notice to the counterparty. Such a refusal will be legal if the relevant basis is provided in the contract itself (article 450.1 of the Civil Code of the Russian Federation). Moreover, it is important that it is indicated specifically on the extrajudicial order. Otherwise, the other party may simply ignore the rejection notice.

The parties may also agree on an unmotivated refusal to perform the contract by either of the parties. In entrepreneurial activity, it is permissible to agree on compensation for withdrawal from the contract (determination of the Supreme Court of the Russian Federation in the case of 2015). If the contract does not contain a condition on payment of compensation by a party that refuses to fulfill the contract, its counterparty will not receive monetary compensation.

Refusal to fulfill the agreements always entails termination of the agreement. Moreover, the parties may agree that it is considered terminated after a certain period after sending a notification or if the counterparty does not eliminate the violation within the prescribed period.

If the refusal occurred through the fault of the counterparty, the cancellation of the contract unilaterally is a way of self-defense of the right allowed by law (the decision of the Arbitration Court of Appeal in the case of 2016).

Consequences of termination of the contract

When early termination is permitted by law or contract, such actions are not a civil law violation. The main consequence of the termination of the contract is the termination of the obligations of the parties to it (article 453 of the Civil Code of the Russian Federation). Other things may be provided for by law, contract or flow from the essence of obligations. For example, upon termination of the lease, the tenant must return the property in the condition in which he received it, taking into account normal depreciation or in the condition stipulated by the contract (article 622 of the Civil Code of the Russian Federation).

Usually the parties do not have the right to demand the return of the obligation performed by them before the termination of the contract. If the obligations are discharged unequally, the rules on unjust enrichment apply to the relations of the parties. Other consequences of terminating the agreement may be enshrined in law or agreement.

Another consequence is the ability to recover losses if the termination occurred through the fault of one of the parties. Penalty as a general rule is charged only until the moment of termination.

At the end of the publication, it should be noted that it is far from always obvious that a party has the right to annul the agreement.

Termination of a loan agreement: judicial practice

Especially when the party to the contract considers that the changed circumstances impede the fulfillment of obligations. In addition, it is often necessary to return what was executed under the contract through the court. Questions arise about how much and for what period sanctions should be exacted (interest on borrowed money, forfeit). It’s not easy enough to recover damages in full. Therefore, in all difficult situations in which the correct answer is not obvious, it is better to contact an experienced lawyer.

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Termination (amendment) of a loan agreement

A loan agreement may be terminated by its parties (one of the parties) by terminating it in the manner, on the grounds and in the manner provided for by the general provisions of contract law in relation to any civil law contract, but subject to special rules (Chapter 42 of the Civil Code) governing the features termination of a loan agreement.

It is depending on the method of termination (amendment) of the contract used by the parties in accordance with the Civil Code of the Russian Federation (Ch. 29) that the grounds and procedure for termination (amendment) of the contract are determined<*>.

The main way to terminate the contract is to terminate it by agreement of the parties (paragraph 1 of article 450 of the Civil Code). If the parties use this method of termination of the loan agreement, the circumstances that served as the basis for the conclusion of the relevant agreement do not have legal significance for assessing the legality of the agreement on termination of the agreement (this is the free discretion of the parties), but under certain conditions (say, if the basis for termination of the agreement by agreement of the parties there was a significant violation of the contract by one of the counterparties) the grounds for termination of the contract may predetermine the consequences the termination of the contract (for example, the obligation to indemnify the bona fide party).

The regulation of the termination of an agreement by agreement of the parties is limited to the rule that the relevant agreement of the parties must be completed in the same form as the agreement, unless otherwise provided by law, other legal acts, the agreement or the customs of business. In this regard, with regard to the loan agreement, we can conclude that the agreement on its termination must be clothed in a simple written form (Article 820 of the Civil Code).

Thus, the loan agreement can be terminated by agreement of the parties at any time at their discretion without any restrictions. About this M.I. Braginsky writes: “Empowering the parties with such a wide opportunity to determine the fate of a contract is one of the direct expressions of contractual freedom: those who have the right of their own free will to conclude a contract should, in principle, be equally free in matters of terminating it or changing individual contractual terms”<*>.

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<*>  Braginsky M.I., Vitryansky V.V. Decree. Op. S. 348.

Another way to terminate the loan agreement (as well as any other agreement) is that it can be terminated at the request of one of the parties (paragraph 2 of article 450 of the Civil Code) (in our case, the lender or the borrower).

Features of the termination of the loan agreement in 2018

When applying this method of termination of the contract, the assessment of the circumstances that served as the basis for making a request to terminate the contract becomes crucial. The common ground for the use by the good faith party of this method of termination of the contract is the violation of the terms of the contract committed by the counterparty, which can be qualified as significant violations, i.e. violations that entail such damage to the counterparty that it is largely deprived of what it was entitled to rely on when concluding the contract.

In addition, the contract can also be terminated at the request of one of the parties in cases provided for by the Civil Code of the Russian Federation, other laws or the contract (Clause 2, Article 450 of the Civil Code). In this regard, the special rules on the loan agreement, as well as on the loan agreement (applicable to the loan agreement) provide three special grounds for its termination at the request of the lender, which combines the fact that they are all connected with violation by the borrower of certain additional conditions of the loan agreement.

Firstly, the basis for termination at the request of the creditor of the loan agreement stipulating the obligation of the borrower to provide security for the fulfillment of his obligation to repay the loan amount received and to pay interest on the use of funds, may serve as the borrower’s failure to fulfill this obligation, and in case of its fulfillment - also loss the security provided or deterioration of its conditions due to circumstances for which the creditor is not responsible (Article 813 of the Civil Code).

Secondly, the basis for termination at the request of the creditor of the loan agreement concluded with the condition that the borrower uses the funds received for certain purposes (target loan) is a violation by the borrower of the obligation to provide the lender with the ability to control the intended use of the loan amount, as well as the borrower’s failure to fulfill the conditions loan agreement on the intended use of the loan amount (Article 814, paragraph 3 of Article 821 of the Civil Code).

Thirdly, the basis for termination at the request of the creditor of the loan agreement containing a condition on the borrower's obligation to repay the loan amount in installments may be a violation by the borrower of the deadline set for repayment of the next part of the loan (clause 2 of article 811 of the Civil Code).

The loan agreement may also provide other grounds for terminating it both at the request of the lender and at the request of the borrower.

When applying such a method as termination of the contract at the request of one of the parties, the contract is terminated in court, a prerequisite for which is the compliance of the interested party, who filed a lawsuit with the court, with a special pre-trial procedure for the settlement of the dispute directly between the parties to the contract. The essence of this procedure is that the interested party must send its offer to the other party or terminate the contract before applying to the court. A lawsuit to terminate the contract can be brought to court only if one of the following conditions is met: either the other party refuses to offer to terminate the contract, or fails to receive a response to the relevant proposal within 30 days, unless otherwise specified by law, contract or contained in the proposal to amend or terminate the contract (paragraph 2 of article 452 of the Civil Code). In violation of the established procedure for pre-trial settlement of the dispute, the court must return the statement of claim to terminate the contract without consideration.

The third way to terminate the contract is that one of the parties exercises its right, stipulated by law or contract, to unilaterally withdraw from the contract (to execute the contract). Unilateral cancellation of the contract is possible only in cases where this is expressly permitted by law or by agreement of the parties (paragraph 3 of article 450 of the Civil Code). The requirement for the termination of the contract with the above-mentioned method of termination consists in the fact that upon termination of the contract by unilateral refusal of one of the parties to the contract, a mandatory written notification of the counterparty to the contract is required. The specified requirement must be recognized as complied with if the corresponding notification is communicated to the other party to the contract by post, telegraph, teletype, telephone, electronic or other communication, which allows to establish that the document comes from the party that has refused the contract (to fulfill the contract). As for the grounds for terminating the contract with such a method of termination as a unilateral cancellation of the contract, the exercise by the authorized counterparty of their right to unilaterally withdraw from the contract in accordance with the requirements of the law or with the terms of the contract can be made dependent on the occurrence of the relevant circumstances (grounds for refusal from the contract) or not at all dependent on any circumstances.

In the loan agreement, both parties (both the lender and the borrower) are granted the right to unilaterally withdraw from the agreement, however, if the lender's right is stipulated by the need for certain circumstances in which it can only be realized, then the borrower's right to refuse the loan agreement is not determined by what or circumstances that could serve as the basis for unilateral termination of the contract.

In accordance with paragraph 1 of Art. 821 of the Civil Code of the Russian Federation, the lender has the right to refuse to provide the borrower with the loan stipulated by the loan agreement in whole or in part if there are circumstances that clearly indicate that the amount provided to the borrower will not be repaid on time.

Commenting on this statute, Russian authors under the circumstances that serve as the basis for the refusal of the lender to grant a loan (i.e., unilateral termination of the loan agreement) usually understand the insolvency of the borrower or a sudden deterioration in his financial condition. For example, E.A. Sukhanov writes: “Such a circumstance may, in particular, be the revealed insolvency of the borrower or its substantial decrease, for example, when the business company - the borrower reduces the size of its authorized capital. Obviously, this rule serves to protect the interests of the creditor ”<*>. According to N.I. Solovyanenko, among the circumstances that clearly indicate that the amount provided to the borrower will not be repaid on time, “primarily include economic and legal factors that raise doubts about the borrower's creditworthiness (insolvency of the debtor, holding him liable, etc.) "<**>.

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<*>  Sukhanov E.A. Decree. Op. S. 226.

<**>  Solovyanenko N.I. Decree. Op. S. 515.

L.G. Efimova, analyzing the grounds for the bank's refusal of the loan agreement, provided for in paragraph 1 of Art. 821 of the Civil Code of the Russian Federation, concludes that it is necessary for the borrower to impose an additional obligation to ensure control by the bank of its financial condition. “These circumstances,” writes L.G. Efimova, - can occur in case of serious deterioration in the financial and economic condition of the borrower, when he cannot fulfill his contractual duty.

In order to exercise its right to refuse to grant a loan, the bank must be able to control the financial and economic activities of the borrower. Consequently, the loan agreement should provide for the obligation of the borrower not to evade banking control. ” Such control by the lender, in her opinion, “concerns not only the intended use and security of the funds received by the borrower, but also the general condition of his business enterprise”<*>.

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<*>  Efimova L.G. Banking transactions: law and practice. S. 552.

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Rloan agreement occurs in the same manner as termination of any other contract, taking into account those features that are established by law for this type of contract.

Regarding the termination of the loan agreement by agreement of the parties, there is only one requirement, which is general in nature: termination of the contract must be denounced in the same form as the contract itself, i.e. You can terminate the loan agreement by signing a written agreement. The parties are entitled to terminate the loan agreement at any time at their discretion without any restrictions.

Termination of the contract at the initiative of one of the parties is possible only by the court on the grounds provided for in paragraph 2. Art. 450 of the Civil Code of the Russian Federation: in the event of a material breach of contract by the other party; in other cases provided for by the Civil Code of the Russian Federation, other laws or an agreement.

An indispensable condition for termination of the contract in court is compulsory compliance with the claims, which consists in the fact that the interested party, before going to court, must send the other party its proposal to terminate the contract.

The grounds for termination of the loan agreement will also be a violation by the counterparty of the terms of the agreement, but not any, and such, in which the bona fide party loses to a large extent what it had expected to conclude the agreement. Single sided failure  from the contract in cases where it is provided by law or contract, also entails termination of the contract.

Do not confuse the unilateral cancellation of the contract and the termination of the contract at the initiative of one of the parties (which, as indicated above, is possible only in court).

The law provides the lenderAt least three options for terminating the contract on his initiative:

1. Unless otherwise provided by the contract itself, the failure by the borrower to fulfill the obligations stipulated by the loan agreement to ensure repayment of the loan amount or the loss of security by the borrower, deterioration of its conditions due to circumstances for which the lender is not responsible - all this gives the lender the right to demand early fulfillment of the borrower's obligations - repayment of the entire loan amounts and interest payments (Article 813 of the Civil Code of the Russian Federation).
2. The grounds for termination at the request of the creditor of the agreement concluded with the condition that the borrower uses the funds received for certain purposes (target loan) are recognized as a violation by the borrower of the obligation to provide the lender with the opportunity to control the intended use of the loan amount, as well as the borrower’s failure to fulfill the terms of the loan agreement for the intended use loan amount (Article 814 of the Civil Code of the Russian Federation).
3. Violation by the borrower of the terms of the loan repayment agreement in installments (delay in making the next loan payment) also gives the lender the right to demand early fulfillment of the borrower's obligations - repayment of the entire loan amount and payment of interest (Article 811 of the Civil Code of the Russian Federation).

The borrower can terminate the loan agreement only on the grounds provided for in Article 450 of the Civil Code of the Russian Federation, discussed above.

The borrower is also given by law the right to unilateral cancellation of a loan agreement (Clause 2, Article 821 of the Civil Code of the Russian Federation), however, such a cancellation is caused by a number of conditions under which it is possible:

• you can only refuse to get a loan,
• a refusal is possible only before the loan term established by the contract,
• the borrower must notify the lender about the refusal of the loan, and this notification must be received by the lender before the appropriate loan term.

Given that this norm is valid only if it is not otherwise provided by law, other legal acts or a loan agreement, knowing our “bankers”, it is not difficult to guess that the loan agreement usually provides “other” and the borrower's right to refuse the loan is more declarative in nature, while the right of the creditor (clause 1 of article 821 of the Civil Code of the Russian Federation) to refuse to grant a loan in the event that there are circumstances indicating that the loan amount will not be repaid on time, it is not burdened with specific conditions and is of such a vague nature that the refusal of the creditor to issue a loan even after the conclusion of the contract cannot actually be challenged in court, since compulsion to issue a loan is prohibited. The only thing you can do is recover damages in court  - in practice, they consist of the difference between the amount of interest under the contract that the creditor has refused, and the amount of interest under the contract that the borrower was forced to conclude with another creditor. Given the amount of loans and the amount of interest, this type of protection of one’s interests is practically inaccessible to individuals due to the disproportionate cost of litigation and the amount of the claim.

Unilateral termination of the loan agreement (Sevastyanova Yu.V.)

Legal entities and entrepreneurs applying for large loan amounts take this opportunity and often win these disputes.

The introduction of a smaller amount of money as an early repayment of the loan than was indicated by the citizen borrower in the application for early repayment of the loan does not in itself constitute grounds for refusing to credit these amounts as a repayment of the debt. ( Determination of the RF IC in civil matters of the Armed Forces of the Russian Federation dated 05.30.2017 No. 4-KG17-20).

Of course, the termination of the contract does not mean that the legal relations of the parties ceased without any consequences. In any case: the loan agreement is terminated at the initiative of one of the parties (the court decides) or by agreement of the parties (the lender and the borrower agree together) the condition on bringing the parties to a state in which they interests will not be infringed  - credited funds must be repaid in full, losses compensated, etc. It is precisely this situation that causes the most controversy. Loan agreements are difficult for the consumer, and understanding the borrower with their conditions, correlating these conditions with the requirements of the law, changes in this area of \u200b\u200blaw, as well as judicial practice without professional help is simply not realistic. Current legislative trends are aimed at bringing consumer credit legislation in line with international practice and the requirements of consumer protection legislation.

  How to terminate a loan agreement with a bank

To stop the bank from accruing interest and penalties on a loan, the borrower is often recommended to terminate the loan agreement. Such advice is usually given by not very knowledgeable users of online forums, but professional lawyers rarely talk about this opportunity. The fact is that the termination of the loan agreement at the initiative of the borrower is a very difficult task, which reaches its goal extremely rarely. Nevertheless, so that you can evaluate the prospects of your specific situation, we will describe in detail the possible options.

If you have not paid all the money that the bank requires, then there are only two mechanisms for terminating the loan agreement - by agreement of the parties and through the court. Naturally, the option is possible when you simply pay all the debt (including interest and penalties), then the obligations under the contract are considered fulfilled, and it is not required to terminate it. One more scenario should be mentioned: within 14 days after receiving a loan, you can repay it by paying symbolic interest for several days. This norm is based on the law on consumer protection, and does not require agreement with the bank and termination of the loan agreement.

Termination by agreement of the parties

So, there are two termination mechanisms - by agreement of the parties and through the court. Regardless of which option you choose, the steps in the first step will be the same - you need to send a statement to the bank to terminate the loan agreement.

How to terminate a loan agreement with a bank correctly?

In this document you need to not only officially declare your intention, but also indicate its reasons (for example, you were fired from your job, you fell ill, etc.) Practice shows that regardless of the seriousness of your reasons, the bank will either leave your application without an official response , or immediately refuse to terminate, or offer unacceptable conditions.

For example, a bank may respond that it is ready to terminate the contract after the borrower has paid the full amount, including interest and penalties (although after this the contract is no longer necessary to terminate, it will expire automatically). Another answer from the bank is a proposal not to terminate the contract, but to restructure the loan. Accepting such offers or not depends on the specific situation. If you have run up a lot of interest and fines, then it may be more profitable to refuse and wait for the trial. In any case, we recommend that you consult with a credit attorney before signing any agreement with the bank.

In short, if your goal is precisely the termination of the contract, then you won’t be able to agree on this with the bank (on acceptable terms). Just as the termination of a loan agreement is beneficial for the borrower, it is disadvantageous for the bank. In fact, this option for the bank means only one thing - it will no longer be able to charge interest and penalties, i.e. ultimately get less money. Why would a bank delve into your problems and voluntarily agree to reduce profits? His task is to accrue interest, and then collectors or bailiffs will then knock out debts.

If you nevertheless decided to try and write a notice of termination to the bank, then you need to remember that such a statement interrupts the statute of limitations on the loan. This is especially important in cases where a lot of time has passed since the last loan payment (one and a half to two years or more). There is clearly no need to write a statement after three years, since the statute of limitations will begin to be re-counted, even if it has already expired once. In general, an appeal to the bank regarding the termination of the contract may not only be useless, but even harm in your particular case.

Termination of a loan agreement through a court

The only situation in which it makes sense to write a notice of termination to the bank is when you are ready to go to the end and go to court. In this case, a statement is necessary in order to confirm attempts to agree with the bank “in a good way”, otherwise the court will have an additional reason for refusal. Naturally, the presence of a statement is a necessary, but not sufficient condition for the court to decide on the termination of your contract. The most important and the most difficult thing is that you need to prove to the court that, after the conclusion of the contract, the conditions have changed significantly, and it was impossible to foresee or overcome it.

Many borrowers call termination of employment, long-term illnesses, all kinds of family or financial problems, etc., as significantly changed conditions. However, even if these arguments are supported by the necessary documents, the court rarely takes the side of the debtor. Roughly speaking, the court usually takes such a position that the borrower should have analyzed all these risks when signing a loan agreement. For example, there is nothing unexpected in dismissal, sooner or later everyone has to change jobs, and if the borrower has not provided such an option, this is his problem.

The chances of terminating the contract increase if there are any very force majeure circumstances - fire, natural disasters, military operations, etc. However, even in this case there is no guarantee that the court will take the side of the borrower. The court’s position may be based on the fact that the borrower could use the services of insurance companies and insure against any surprises. As a matter of fact, the court does not need to substantiate its decision in “everyday” language, it is enough to refer to the abstract wording of the law, which will say little to the common person (not the lawyer).

Nevertheless, there are still exceptions, and sometimes the court treats the arguments of the borrower with understanding. If you want to try, you just need to prepare and take to the court a statement of claim to terminate the loan agreement. It is not possible to predict the outcome of a lawsuit with a 100% guarantee, but an experienced credit lawyer can assess the chances depending on the specifics of your particular situation. If you still intend to go to court, we recommend that you first consult with a specialist - at least by phone, but better at a personal appointment.

A large role in law enforcement and judicial practice is given to the regulation of legal relations in the field of lending. An important role is played by, inter alia, the consideration by the courts of cases on the termination of credit agreements. An analysis of the judicial practice of the Russian Armed Forces allows us to talk about the increased dynamics of the consideration by the courts of this category of cases in recent years.

Termination of a loan agreement - one of the ways to protect the right

As a rule, the purpose of terminating the contract is to maintain a balance of interests of the parties to the legal relationship - the bank and the borrower, and this action is an exceptional way to protect the right. For termination of the contract, violation of the obligations of one of the parties, which may be carried out as a result of circumstances independent of the parties, or as a result of refusal to fulfill them, is of legal importance.

Termination of loan obligations, by virtue of Part 3 of Art. 453 of the Civil Code of the Russian Federation, is deemed to have come from the moment the court decision to terminate the contract came into force.

Change in circumstances (material conditions) that existed at the time of the conclusion of the contract with the bank, and from which the parties proceeded, in accordance with the provisions of Art. 451 of the Civil Code of the Russian Federation may be grounds for termination of the loan agreement. Significant in this case are circumstances that objectively impede the fulfillment of obligations by the parties to the agreement.

Since the bank, as a credit organization at the time of issuing credit funds, fulfills its initial obligations, after which a counter obligation to repay the loan by the borrower must be fulfilled, violations of the terms of the contract most often occur from the side of the borrowers. That is, the unfair performance of obligations or the refusal to fulfill them (to return money - the body of the loan and interest) are the basis for the possible termination of the contract.

Judicial practice in cases related to the termination of credit agreements does not speak in favor of consumers (borrowers). For the entire long-term period of consideration of litigation between borrowers and credit organizations related to termination of loan agreements due to changes in material conditions, only the only event was recognized as such - it was a default in August 1998. To date, a review of judicial practice shows that all litigation regarding the termination of loan agreements in which the plaintiffs acted as the plaintiffs, including where the circumstances of the 1998 default were the basis for the legal position, were not made in their favor.

The Court of Appeal in case No. 33-6973 / 2012 issued a ruling on the termination of the loan agreement. During the trial, it was found that the plaintiff, who was the borrower under the loan agreement, filed a claim with VTB 24 CJSC to terminate the loan agreement and assign the bank responsibility for terminating the payment of the agreement. The basis for the above requirements was that, according to the plaintiff, the material difficulties that had arisen for him for the present period of time prove a change in the material conditions that existed at the time the loan agreement was concluded. In this regard, the plaintiff points to the impossibility of fulfilling his obligations under the contract and asks to satisfy the claim.

The court, as follows from the case materials, found that this event (a change in the material situation of the plaintiff) is not an event that can be considered in the context of Article 454 of the Civil Code of Russia, and is not evidence of a change in the conditions that existed at the time of the conclusion of the contract.

Procedure for termination by a borrower of a loan agreement with a bank

Based on the results of the judicial review of this case, a determination was made to leave the plaintiff's claims unsatisfied.

Method of protection against unfair performance of obligations

Often, borrowers, having not assessed their strength and ability to pay, received credit funds, are not able to pay obligations under the loan agreement. The consequence of non-fulfillment of contractual obligations is the legal ability of banks to resort to termination of the loan agreement using the sanctions provided for in the contract for civil violation (collection of fines or penalties). The courts in this case often do not consider the circumstances that were the reason for the violation of the terms of the contract, and take into account only the fact of the debtor's failure to fulfill his obligations to pay cash. Accordingly, the decision in such cases, as shown by the judicial practice on loans, is not made in favor of the borrower. Banks almost always receive claims.

Here is one of the typical court decisions in a dispute regarding the collection of credit debt and termination of a loan agreement, in which the court established that ZAO AKB Express-Volga applied to the defendant (borrower) for termination of the loan agreement and debt collection. In substantiating the claim, the plaintiff pointed out that the borrower, having received credit funds that were transferred to his account at the branch of JSCB Express-Volga CJSC, for a long time evaded fulfillment of contractual obligations, and therefore, according to the plaintiff, the latter arose the right to demand early repayment of the loan and termination of the contract. In support of his legal position at the hearing, the defendant stated that he had ceased to pay the loan in connection with the loss of work.

As a result, the court, having examined the materials of the case, made a decision in accordance with which the following were recovered from the defendant (borrower):

• the amount of the primary obligation under the contract;
• reimbursement of bank expenses;
• penalties for breach of contractual obligations;
• overdue interest

And the loan agreement concluded between the bank and the borrower was terminated.

Termination of obligations unilaterally

Termination of the contract does not mean that the obligation between the bank and the borrower is terminated. The borrower retains the obligation to repay the loan amount, interest on it, as well as the penalty for violation of contractual relations. In the event of a court decision on this, the borrower bears obligations until the full execution of this decision. As described in the clarifications of the Presidium of the Supreme Arbitration Court of the Russian Federation on this issue, if, in accordance with Art. Art. 310, paragraph 3 of article 450 of the Civil Code of the Russian Federation, the bank has every reason to believe that the borrower will not repay the amount of the credit line, then the bank has the right to terminate its obligations unilaterally with all legal grounds for the receipt of counter obligations. Moreover, the penalty and interest on the loan to the bank must be paid for the entire period until the repayment of the entire loan amount. And from paragraph 8 of Information letter N 147 of the Presidium of the Supreme Arbitration Court of the Russian Federation, it is clear that when the contract is terminated in a judicial proceeding, the obligation relationship ceases only for the future period. (By the Presidium of the Supreme Arbitration Court of the Russian Federation in paragraph 1 of the Information letter dated December 21, 2005 N 104 “Review of the practice of application by the arbitration courts of the norms of the Civil Code of the Russian Federation ....... Article 453 of the Civil Code of the Russian Federation) Such a legal position is set forth in (Decision of the FAS of the East Siberian District of April 6, 2011 in the case of N A33-5284 / 2010, as well as the Decision of the FAS of the North Caucasus District of 02.10.2009 in the case of N A53-16893 / 2008).

This example of applying the method of protecting a bank by its rights is a consequence of the borrower's default on its obligations.

Important to remember:  based on the practice in criminal cases, malicious (intentional) evasion of repayment of accounts payable may entail the prosecution of the guilty person.

As the experience of judicial practice shows, a powerful financial and legal system, of which credit organizations and banks are a part, will be your ally in achieving the goals that you pursue by concluding loan agreements only if the parties maintain a balance of contractual legal relations. But often reality and circumstances dictate their own conditions for the development of situations in which you have to defend interests in court. In this case, your allies and assistants will be legal experts and lawyers.

When it comes to banks, the borrower should carefully read the documents that he signs. Often, debtors want to free themselves from accruing all kinds of interest and penalties on the loan and terminate the contract. But is it so easy to do in practice?

How to terminate a loan agreement with a bank

Termination of the contract with the bank may occur:

• by agreement of the parties;
• by court verdict.

There is also the opportunity to make payments on all debts, then the agreement will be considered fulfilled.

It is important to know: after issuing a loan, the consumer has the right to return it within 14 days, paying a small percentage.

At the initial stage, the borrower sends a request to the lenders to terminate the contract. It should notify the credit institution of its desire and indicate in detail the reasons (dismissal, illness). Practice shows that usually a bank very rarely makes concessions. He may not give an official answer at all, refuse to cancel or offer impossible conditions.

In any case, the decision is best made not on their own, but with the support of an experienced lawyer.

It is important to know: the application may start on a new loan statute of limitations, especially if a lot of time has passed.

Can a bank unilaterally terminate a loan agreement

If the borrower does not pay regularly on the loan, the bank may prematurely terminate the agreement unilaterally.

He is able to present a demand for repayment of the debt and as a result of termination of the contract. The complexity of the situation is that after the bank sends a written request to return all the debt, the borrower is given only 15 days to sell. Repayment of debt implies the availability of finance, and if the borrower had faithfully paid the loan, the bank would not have sought to terminate the agreement ahead of schedule.

Therefore, further communication of the creditor with the debtor occurs through higher authorities.

An institution may need 2 months or more to apply to higher authorities. All this time, the debt will grow, consisting of penalties and interest, and by the time of the long-awaited appeal to the court, the bank will present a huge amount of debt.

Often they deliberately delay the appeal to the court so that the debt of the borrower grows even more. The solution is to appeal to the credit institution with the borrower, so this will speed up the involvement of the court in the proceedings of the problem.

Termination of a loan agreement with a bank at the initiative of a borrower

In the history of judicial practice, termination may also occur at the initiative of the debtor. However, termination can not relieve the borrower from liability and payment of debt, but can reduce its size, and in case of a good situation, its cancellation altogether.

The contract can be recognized as not relevant only after the recognition of the borrower as legally incapable.

In other cases, such as: loss of job or due to illness, the court unfortunately does not remove debt obligations from the debtor. The court in this case takes the side of the bank.

How to terminate a loan agreement with a bank

Article 450 of the Civil Code of the Russian Federation says that a contract can be canceled both with the consent of only one party, and by mutual agreement. But this is not always possible and easy to do. If the debtor cannot pay the debt due to lack of finance, the bank begins to intimidate with bailiffs and collectors.

It is possible to refuse to communicate with collectors, but only if the amount of debt is more than 50,000 rubles and the delay period is more than 4 months. If this does not stop, the borrower may apply to the FSSP with an administrative penalty. The size of the fine will be from 20,000 to 200,000 rubles.

Statement of claim on termination of a loan agreement with a bank - sample

Often, the lender and the borrower go to court, as it is not possible to solve the problem on their own. The statement of claim is mandatory when applying to the court.

Termination of a loan agreement with a bank - court practice

The court is the last resort where you can turn in an attempt to solve your problems. The submission of the statement of claim is necessary to convince the courts of the termination of the agreement by mutual agreement.

The court should be convinced that the payment of debt is not possible for very good reasons, and therefore apply for a revision of the contract. For good reason, the debtor attaches to the application documents confirming the fact of dismissal, serious illness, addition to the family, and others. But according to the court, all these nuances, the borrower had to foresee at the very beginning, when he was making a deal with the creditor.

The chances of the court considering the situation in favor of the debtor may increase if natural disasters, military operations, fire are involved here.

But usually the court remains to protect the interests of the creditor, although there are exceptions.

A loan agreement is concluded with the bank upon receipt of borrowed funds for intended or inappropriate use. This document contains the full conditions for granting a loan, its repayment, as well as the rules for early termination of the contract. By no means always does it provide for a termination clause by the borrower or by agreement of the parties. In this case, the matter is decided in court.

The procedure for amendment and termination of contracts is considered in Art. 450 of the Civil Code of the Russian Federation. After studying the article, it becomes clear that a deal can only be terminated if its terms are violated by one of the parties or when unforeseen circumstances hinder the fulfillment of obligations undertaken.

Termination of the loan agreement

A loan under such an agreement is taken directly to purchase a product or pay for specific services. If a situation arises in which the goods are to be returned to the seller or the need for the service is lost, then a reasonable desire arises to prematurely terminate the loan agreement.

You can refuse to receive a loan at any time before signing the agreement, even if the application has already been approved by the bank and the necessary documents have been printed. It is also possible to cancel a transaction unilaterally until the goods, services or funds have been received by the borrower.

Before applying to a financial institution, you need to study the terms of the contract, especially the clause on its amendment and termination. From this item you can get answers to some questions:

• reasons for the possible termination of the contract;
• responsibility of the parties;
• possible fines or forfeits.

If the possibility of termination by agreement of the parties is provided for by the contract, you should apply to the bank, indicate the reason for such a client’s desire, attach evidence (for example, an act of return of goods) and wait for an official response. In this case, the credit institution usually makes concessions to the client and terminates the contract ahead of schedule. The store returns the funds directly to the bank account, excluding accrued interest. In some cases (if several loan payments have already been made), the money for the returned goods is paid to the buyer, and he, in turn, repays the rest of his debt.

If the possibility of terminating the transaction by agreement of the parties is not provided, or the bank does not accept the borrower's arguments as material, the contract can only be canceled in a judicial proceeding.

How to prematurely terminate a loan agreement

The main difference in the termination of the contract for the provision of inappropriate loans is more difficult to prove the need for its termination. If the document does not provide for terms of early repayment, this can only be done if the bank is loyal to the borrower or the credit institution does not comply with the terms of the contract.

For example, if a bank:

• increases the interest rate on an existing loan;
• postpones the timing of payments without the consent of the debtor;
• charges penalties and fines, which are not specified in the contract;
• holds illegal commissions.

In these cases, the borrower has the right to sever relations with his lender. For this, a statement is written indicating the reasons. If the bank does not satisfy the client’s request, the court will decide the disagreement.

To refuse a loan because there is nothing to pay

Such cases are common. A citizen takes a loan, after a while understands that he can’t cope with the payments and decides to repay it ahead of schedule, saving on interest on the remaining period.

If such an opportunity is provided by the contract, for its implementation it is necessary to go to the bank, notify the employee of his intentions, find out the exact amount for early repayment and deposit money into the account. In some cases, the agreement terminates automatically, sometimes an additional statement from the client will be required.

Termination of a loan agreement does not mean cancellation of other agreements related to it.

So, at the same time, a contract can be concluded for servicing an account or a card, according to which the commission will continue to be charged, even if the loan has already been repaid. It is necessary to clarify these points in the bank.

If the possibility of early repayment is not provided for by the terms of the loan, most likely the bank will refuse such a request to the borrower. Then the parties, through negotiations, come to a new agreement, according to which the monthly payment of the loan will be increased in order to shorten its validity or, conversely, the loan duration will be increased in order to reduce the monthly payment.

Termination of a loan agreement with prolongation

An urgent loan will end on its own if during the indicated period the obligations of both parties are met. In the case of a prolonged contract, for example, the use of a credit card with a renewable tranche, closure will not occur, even if the client is not going to use the funds again. The charge for servicing the card will continue, which will grow into debt to the bank.

In this situation, the client must independently apply to the credit organization with a statement on termination of the contract.

Going to court

Banks turn to the courts if the client violates the terms of the contract. The borrower also has the right to demand compliance with the agreement through the executive branch. He can also go to court if the bank rejects his reasonable arguments and does not agree to terminate the contract.

Loss of work or credit property is not a reason for termination of the agreement if, when applying for a loan, the client refused to conclude an insurance contract against these risks, proposed by the bank.

Significant reasons include factors that neither the bank nor the borrower could foresee when concluding the contract. For example, the birth of triplets at the client, or the destruction of valuable property that is not related to the terms of the transaction, but is a means of generating income.

To appeal to the court, it is necessary to present this evidence, a written refusal of the bank to satisfy the requirements and confirm the readiness to pay off the remaining debt to the credit institution. Indeed, the termination of the contract does not exempt from the payment of debt, the balance of which will have to be fully repaid after the court decision.

Termination of the contract after prolonged non-repayment of the loan

Another case experienced by inexperienced borrowers is the offer of a bank or illiterate financial adviser to terminate the contract after prolonged non-payment of installments.

The client was not able to make monthly payments, now to him. He decides to break the agreement with the bank, citing the good reasons for the delay. This behavior is beneficial for the credit institution, but only exacerbates the situation of the client. The bank will gladly agree to close the loan after the debtor has paid all the fines accrued for this period. This amount may exceed the principal debt.

The decision of the court will save the situation, which, as a rule, awards for payment only the amount of the principal debt and interest. But banks are not in a hurry to go to court, patiently waiting for the limitation period and pushing the client in the hope that he will pay all the debt voluntarily. And any appeal of the borrower to a credit institution, including writing an application for termination of the contract, only delay this period for another 3 years.

From the foregoing, it can be concluded that it is beneficial for the client to break off relations with the bank if:

• the contract has lost relevance (rejection of goods);
• there were no delays in payments;
• there is an opportunity to pay off debt.

In other cases, they usually resort to debt restructuring or await a court decision on the appeal of the bank.

Has your financial situation worsened? Can't make loan payments? We’ll talk about legal ways to help solve your problem.

It happens that a job loss, a serious illness, an increase in monthly expenses make repayment of a loan impossible. What if there are loan obligations, but there is nothing to pay for them?

A loan is a great way out when you need something here and now, but sometimes circumstances change dramatically. To get rid of loan obligations, that is, to terminate a loan agreement with a bank, in this situation is the best option. It happens that a financial institution itself initiates a breakdown in relations with the borrower - the bank terminates the loan agreement unilaterally. In any case, it is worth knowing how to behave properly so as not to get into trouble.

What is a loan agreement?

A loan agreement is a legally relevant paper that governs the relationship between the borrower and the borrower. The document as accurately as possible describes all aspects of the transaction, therefore it contains enough mandatory points:

• loan amount;
• purpose of borrowed money;
• time frames for fulfilling loan obligations;
• guarantees of financial welfare of the debtor;
• annual interest on the use of credit funds;
• procedure and amount of loan repayments;
• other conditions.

The document takes into account all the probabilities and possibilities, therefore it also indicates how to terminate the loan agreement with the bank, or on what basis the bank terminates the loan agreement unilaterally.

As for the form, the Civil Code of the Russian Federation requires only one thing - a simple written version. The transaction is executed in compliance with business communication standards in two or more copies, the document is signed by both parties to the agreement. At the same time, certification or registration with specially authorized state institutions or notaries is not required. A verbal loan agreement is not considered valid.

How to terminate a loan agreement with a bank?

The peremptory procedure for granting a loan suggests that the risk of non-compliance with the terms and obligations of the contract is slightly higher precisely with the debtor. In addition, each financial company has its own legal service, so it is much more important to consider the situation of termination of the loan agreement by the borrower.

It is also possible to terminate a mortgage or other loan agreement with a bank on its own initiative, personal decision or agreement of both counterparties if several conditions coincide at the same time:

• an adverse change in circumstances at the time of signing the papers was impossible to assume;
• the prerequisites for a change in circumstances did not depend on the party involved in them, and even honest fulfillment of obligations under the agreement would not affect the result in any way;
• further fulfillment of obligations violates the balance of financial interests of counterparties, and the interested party to the transaction will incur losses in the form of loss of a greater degree of expected benefits under the contract.

The terms of a business relationship suggest that any risk of a change in conditions relates to the interested party, so it is important to learn how to terminate the loan agreement with the bank or what to do when the bank terminates the loan agreement on its part.

What threatens the termination of the loan agreement with the bank?

Grounds for termination of the contract

Already at the time of preparation of the transaction, counterparties can stipulate among themselves the possibility of early termination of financial relations. Such a right is provided for by the legislation of the Russian Federation as a basis for common law (Article 450 of the Civil Code). Moreover, if the peaceful solution to the dispute for some reason did not produce a result, the second paragraph of this article provides options for how to terminate the loan agreement with the bank, or, conversely, how the organization can cancel the transaction in court.

Significant reasons are needed for such serious measures:

• significant or systematic violation of obligations by agreement of one of the counterparties;
• other situations provided for by law.

Significance implies the degree of violation of the loan conditions in which one of the parties loses all benefits from the transaction. In addition, the bank lawfully terminates the loan agreement ahead of schedule, or the borrower does it if the circumstances have radically changed (Article 451 of the Civil Code of the Russian Federation). Circumstances should not only be unfavorable, but such that if they could have been assumed at the time of signing the contract, it would not have been signed.

Instruction manual

In any case, you are not the first client who wants to terminate the loan agreement. The Bank, as a rule, has for such cases a form of its own agreement to terminate the transaction. The debtor should fill it out and transfer it to the employee for further progress.

However, if the bank is not interested in breaking the deal, then its representatives will probably try to slow down the process in every way, even refuse to provide an agreement form. In this case, you can terminate the loan agreement with the bank if you write the appeal in free form in compliance with the ethics of business correspondence, be sure to indicate good reasons for terminating further cooperation in accordance with the agreement. It will be even easier to download the finished form and simply fill in the columns.

It is best to send such a document by registered mail with a notification - this will guarantee that it will be received by the addressee. The bank may not respond or send a refusal, but if the intention to terminate the loan agreement with the bank is thorough, then you should go to court.

Required documents

The preparation of a competent statement of claim is the most important stage on which the success of a case largely depends. On the Internet there are many samples of such papers, but in this particular case it is better to contact a professional. Only he can take into account all the individual legal subtleties, so that things go smoothly.

The application to the court is not one; it should be strengthened with additional papers:

• copies for each of the participants in the case;
• a check on making a fee (300 r according to the Tax Code of the Russian Federation);
• a power of attorney to conduct business in the name of the representative (if any);
• papers proving what was written in the lawsuit, in the number of persons involved in the case (loan agreement, letter of termination of the transaction, letters from the bank (if any), account statements and other documents proving your correctness).

It is important to understand that the abundance of weighty documentary arguments will help to incline justice towards the debtor better than non-documentary evidence.

According to Art. 56 Code of Civil Procedure of the Russian Federation, each of the counterparties is obliged before the court to confirm the fidelity and strength of the conditions to which it refers in its petition.

What to do if the bank terminates the contract ahead of schedule?

The borrower learns of such an intention of a financial institution, as a rule, from a letter with a copy of the statement of claim. This is a signal to not postpone the solution to the problem of non-payment under the loan agreement. And the first thing you should try to do is contact the bank for a peaceful, pre-trial, settlement of the issue (debt restructuring, deferred payment, etc.). In case of refusal, prepare your response to the lawsuit, through which the bank terminates the loan agreement unilaterally. In the recall, you must indicate that a counterclaim is being put forward, and provide your own option for calculating the debt, confirmed by documentary arguments. So it will be possible to reduce the amount of debt, as well as agree with the creditor on the installment plan of payments without fines.

What if there is no way to pay on a mortgage? Can a bank unilaterally terminate a mortgage agreement? Does he have the right to demand to pay the full amount at once?

Conclusion

The practice of such proceedings shows that in most cases, a judge decides in favor of a financial institution to terminate a loan agreement with a bank. Therefore, before doubting whether the bank has the right to terminate the loan agreement, and even more so to initiate litigation, it is worth several times to weigh the circumstances that force the termination of the agreement.