Colombian Commercial Code - Decree 410 of 1971 - Book IV - Of Contracts and Corporate Obligations - Title XVII - Of the Bank Agreements - Chapter V - Opening credits and discounts - From: Section 1400 to: 1407 Art
CHAPTER V
Opening credits and discounts
Section 1400 .- Means opening a credit agreement under which a banking institution
agrees to make available to a person of money within the agreed limit
and for a fixed or indeterminate. If you do not express the duration of
the contract, it shall be held for an indefinite term.
Section 1401 .- The availability of the preceding article may be
simple or rotating. In the first case, uses the bank's obligation
extinguished until concurrence of the amount thereof. In the second,
refunds verified by the customer will again be used by it during the
contract period.
Section 1402 .- The credit facility agreement be made in writing which shall state the amount of credit open.
Omitting the nature of availability, means that it is simple. If not
otherwise stipulated, the amounts used for bank earn interest at less
than one year term, during the time of use.
Section 1403 .- The credit of the previous articles that can be handled through the customer's checking account.
Section 1404 .- The temporary overdrafts to the bank authorize, shall be governed by Article 1388 and about them not be required in writing.
Section 1405 .- When the person has opened a credit account be
declared (bankruptcy) *, the bank shall not make deliveries because of
the credit. But if this were handled through the bank account, the bank
will debit the account to the extent of the unused amounts in order to
establish the true balance.
* Open compulsory liquidation proceedings.
Section 1406 .- Unless otherwise agreed, the credit institution can not terminate the contract before the expiry of the stipulated term.
If the opening of credit is for an indefinite period each party may
terminate the contract by the agreed notice or, failing that, a
fortnight.
Section 1407 .- When credit is granted by discounting securities
and they are not paid when due, the bank may, at its option, to pursue
the payment of such instruments or demand restitution of the sums given
by them. If you have given in the form of overdraft, the bank shall not pay for
new checks and balances to determine the customer's expense.
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