THE LAW OF CREDIT
Credit law covers part of the banking law : it is the rules applicable to credit institutions in the operations of credit . These credit operations are only part of the operations of credit institutions, which for example manage the means of payment.
Credit law is the framework for financing businesses as well as loans to individuals.
Credit law covers activities that are not reserved for credit institutions, such as inter-company credit.
Credit law is based on the insertion of the future into the bond of the obligation.
The formation of the contractual bond is separated in time from the performance of the pecuniary obligation by the borrower. The money is loaned on the basis of a commitment to repay the entrusted capital and generally a remuneration, it is then a loan at interest.
The granting of credit is based on the lender’s confidence in the borrower’s ability to repay. The loan involves an economic and legal risk for the lender.
The Civil Code, in article 1244-1 , provides for the possibility of deferral or staggering of payments. With regard to consumer loans, the lender is exposed to the risks of dealing with over-indebtedness. The lender is exposed to the risks resulting from the difficulties of the company which can lead to the receivership or the compulsory liquidation of the company to which he has granted loans.
Financial law is made up of various techniques for financing businesses.