Article 1
Default of loans offered on a crowdfunding platform
1. Crowdfunding service providers which provide crowdfunding services consisting of the facilitation of granting of loans shall consider a default to have occurred with regard to a particular loan offered on their crowdfunding platform when either or both of the following events have taken place:
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(a) |
the crowdfunding service provider considers that the project owner is unlikely to pay in full, or otherwise fulfil its credit obligations related to the loan concerned, without recourse to actions, such as realising security; |
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(b) |
the project owner is more than 90 days past due on any material credit obligation related to the loan concerned. |
2. For the purposes of paragraph 1, point (a), the following elements shall be considered as indicators of unlikeliness to pay:
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(a) |
a distressed restructuring of the credit obligation related to the loan concerned has occurred where this is likely to result in a diminished financial obligation caused by the material forgiveness, or postponement, of principal, interest or, where relevant, fees; |
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(b) |
the project owner has applied for, or has been placed in, bankruptcy or similar protection, where this would avoid or delay repayment to investors of a credit obligation related to the loan concerned. |
For the purposes of point (a), a distressed restructuring shall be considered to have occurred where concessions have been extended towards a project owner facing or about to face difficulties in meeting its financial commitments.
3. For the purposes of paragraph 1, point (b), where the credit agreement explicitly allows the project owner to change the payment schedule, or to suspend or postpone the payments under certain conditions, and where the project owner acts within the rights granted in that credit agreement, the changed, suspended or postponed payments shall not be considered past due, but the counting of days past due shall be based on the new payment schedule once it is specified. Crowdfunding service providers shall nonetheless analyse the reasons for such changes in the payment schedule, or the suspension or postponement of the payments, and assess the possibility of unlikeliness to pay as referred to in paragraph 1, point (a).
4. Crowdfunding service providers shall disclose the materiality threshold used for the purposes of paragraph 1, point (b).
5. Crowdfunding service providers shall inform investors in case of default of a loan without delay.