Investor Presentaiton
No. 46 of 2012
Consumer Protection
[Rev. 2016]
61. Default charges
(1) A lender is not entitled to impose on a borrower under a credit agreement
default charges other than―
(a) reasonable charges in respect of legal costs that the lender incurs in
collecting or attempting to collect a required payment by the borrower
under the agreement;
(b) reasonable charges in respect of costs, including legal costs, that the
lender incurs in realizing a security interest or protecting the subject-
matter of a security interest after default under the agreement; or
(c) reasonable charges reflecting the costs that the lender incurs because
a cheque or other instrument of payment given by the borrower under
the agreement has been dishonored.
62. Prepayment
(1) A borrower is entitled to pay the full outstanding balance under a credit
agreement at any time without any prepayment charge or penalty.
(2) If a borrower prepays the full outstanding balance under a credit agreement
for fixed credit, the lender shall refund to the borrower or credit the borrower with
the portion, determined in the prescribed manner, of the amounts that were paid by
the borrower under the agreement or added to the balance under the agreement
and that form part of the cost of borrowing, other than amounts paid on account
of interest.
(3) A borrower is entitled to prepay a portion of the outstanding balance under a
credit agreement for fixed credit on any scheduled date of the borrower's required
payments under the agreement or once in any month without any prepayment
charge or penalty.
(4) A borrower who makes a payment under subsection (3) is not entitled to
the refund or credit described in subsection (2).
(5) The provisions of this section shall not apply to a credit agreement where
the National or the County Government is the principal borrower or guarantor or
where the borrower is a public entity or where the lender is either a bilateral or
multilateral foreign financial institution.
[Act No. 14 of 2015, s. 58, Act No. 38 of 2016, s. 86.]
63. Disclosure representation
No lender shall make representations or cause representations to be made with
respect to a credit agreement, whether orally, in writing or in any other form, unless
the representations comply with the prescribed requirements.
64. Disclosure of brokerage fee
(1) If the borrower pays or is liable to pay a brokerage fee to a loan broker, either
directly or through a deduction from an advance, the initial disclosure statement for
the credit agreement must disclose the amount of brokerage fee.
(2) If a loan broker has delivered an initial disclosure statement to the borrower,
the lender may adopt it as his, her or its own initial disclosure statement or may
elect to deliver a separate initial disclosure statement to the borrower.
65. Initial disclosure statement
(1) Every lender shall deliver an initial disclosure statement for a credit
agreement to the borrower at or before the time that the borrower enters into the
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