BETA

2 Amendments of Othmar KARAS related to 2011/0062(COD)

Amendment 672 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Member States may provide that the exercise of the right referred to in paragraph 1 is subject to certain conditions. Such conditions may include time limitations on the exercise of the right, different treatment depending on the type of the borrowing rate, rules on the continuing availability of cover funds for mortgage bonds or other nationally regulated mortgage cover pools for investment instruments or restrictions with regard to the circumstances under which the right may be exercised. Member States may also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit. In any event, if the early repayment falls within a period for which the borrowing rate is fixed, exercise of the right may be made subject to the existence of a special interest on the part of the consumer.
2011/10/06
Committee: ECON
Amendment 691 #
Proposal for a directive
Article 18 a (new)
Article 18a Conversion of foreign currency loans 1. Member States shall ensure that where a credit agreement relates to a loan in a foreign currency, the consumer shall have the right to convert the loan into the currency of the Member State within a reasonable period. 2. Member States shall provide that i) the creditor should be entitled to obtain fair and objectively justified compensation for potential costs directly linked to the exercise of the right but shall not allow creditors to impose a penalty arising from the exercise of the right, ii) conversion is effected at the market exchange rate applicable on the day of application for conversion, and iii) the interest rate and interest reference rate applicable to the credit agreement shall be adjusted accordingly.
2011/10/06
Committee: ECON