According to law No. 2019/021 of 24 December 2019 to lay down some rules governing credit activities in the banking and Micro-Finance sectors in Cameroon,

Any natural or legal person applying for a loan shall be responsible for the accuracy of the documents and information provided to the credit provider.

In case of a positive response by the credit provider, the loan shall be binding on the borrower and co-obligors. The loan shall be repaid according to the terms and conditions set out in the loan agreement.

The borrower may repay the full loan amount at any time, subject to the terms of the loan agreement.

The loan agreement shall lay down the terms and conditions for early repayment and the order in which advanced payments shall be made. In any case, early repayment may not give rise to an increase in the financial charges borne by the borrower.

The credit provider must conduct due diligence to ascertain the origin of the funds used for the early repayment of the loan.

In case of non-compliance with a repayment term, the credit provider shall send a reminder letter to the borrower, requesting regularization of his/her situation within 30 (thirty) days of receipt of the reminder.

Where the borrower fails to regularize the situation after the 30-day period, the credit provider shall serve the borrower a formal notice through a bailiff or by registered mail with acknowledgment of receipt, requesting the borrower to honour his/her commitment within a second period of 8 (eight) days from the date of receipt.

Where the borrower still fails to honour his/her commitment, the credit provider shall proceed with the legal closure of accounts and institute legal action for enforced collection of the debt due.

The lending credit provider shall be exempted from the prerequisites under Sections (1), (2) and (3) above in the event of payment default of a restructured or rescheduled loan.

Where such default concerns a collateralized loan, the lending credit provider may redeem the collateral under the terms of the Revised OHADA Uniform Act on the Organization of Collateral.

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