Rounding up: “If the sum of the reference interest rate and the margin or differential is not an exact multiple of one-eighth of a percentage point, the resulting interest rate will be rounded up to the nearest highest multiple of an eighth of a percentage point”
Early Redemption: “… If the borrower does not pay the interest rates and repayment installments plus interest or make a partial non-payment of an installment on time and exactly as agreed, early redemption will occur, despite the agreed term, with the financial institution’s right to demand, with foreclosure, the capital and related charges owed”. Law 1/2013 states that there must be a minimum of three unpaid installments.
Early Redmption: By the borrower and guarantors not fulfilling on time any one of the conditions stated in the agreement (thus losing the possibility of repaying the loan within the time limit of 25-30-35 years), such as:
- Credit reduction
- Go into bankruptcy
- Fire in the mortgaged property.
- Non-payment of any fire insurance fee
- Non-payment of urban contributions
Obligation to take out insurance and transfer possible compensation to the lender: “The debtor’s obligation is to provide insurance for damage caused by fire or catastrophic risks that may occur in the mortgaged properties and whose insured sums match the valuation, enabling the credit institution if the premiums are not met 15 days in advance of each due date to be borne by the borrower; and making a formal transfer in the bank’s favour of the compensation for the insured capital or for any other concept that has to satisfy the insurance company, which is authorized to undertake whatever measures necessary to obtain their rights. This transfer can only total the amount of the capital, interest, fees, costs and expenses, and if any, must be are payable to the financial institution at the time of their payment. ”
Waiving personal rights. “by an express waiver for any other jurisdiction that may apply, the parties submit themselves to the courts and tribunals of Madrid City to resolve any issues and disputes arising in connection with this contract”
