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Individual borrowers will be able to prepay loans without the lender's consent
Practical Law UK Legal Update 1-501-0569 (Approx. 2 pages)
Individual borrowers will be able to prepay loans without the lender's consent
by White & Case LLP
| Published on 15 Dec 2009 • Russian Federation |
This article is part of the PLC Global Finance November e-mail update for the Russian Federation.
Speedread
The State Duma has adopted, in the first reading, a draft law amending the Civil Code on prepayment of loans so as to allow individual borrowers to prepay loans without the need to obtain the lender's consent.
On 6 November 2009 the State Duma adopted, in the first reading, Draft Law No. 162078-5 amending the Civil Code on prepayment of loans.
Under the Civil Code, an interest bearing loan may be prepaid only with the lender's consent. The proposed amendments would allow individual borrowers to prepay loans without the need to obtain the lender's consent.
The provisions of the Draft Law will apply if adopted by the State Duma in three readings, approved by the Federation Council, signed by the President, and officially published.