Article 12
Information on defaults on credit agreements by the project owner
1. In order to comply with Article 6(4), point (f), of Regulation (EU) 2020/1503, crowdfunding service providers shall require project owners to provide information on defaults that have occurred under credit agreements in the past five years.
2. When ‘credit agreement’ refers to an agreement whereby an investor grants to a project owner credit in the form of a loan for a specific crowdfunding project, the following definitions shall apply:
|
(a) |
‘default’ means ‘default’ as defined in Article 1(1) of Delegated Regulation (EU) 2022/2115; |
|
(b) |
a ‘credit agreement’ means an agreement whereby an investor grants to a project owner credit in the form of a loan for a specific crowdfunding project. |
3. The information on defaults referred to in paragraph 1 shall be provided by the project owner to the crowdfunding service provider at all of the instances:
|
(a) |
at the point of loan origination; |
|
(b) |
immediately after the occurrence of a default event; |
|
(c) |
until the maturity date of the credit agreement included in the portfolio. |
4. Crowdfunding service providers shall take appropriate steps to ensure that the information provided by project owners in accordance with paragraphs 2 and 3 is accurate, reliable and up to date.
5. When ‘credit agreement’ means any financial instrument as defined in Article 4(1), point (50), of Regulation (EU) No 575/2013 of the European Parliament and of the Council (5) and information on past defaults are not available, crowdfunding service providers shall require project owners to provide all of the following information over the past five years:
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(a) |
past due days; |
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(b) |
amount of arrears. |
6. Crowdfunding service providers shall disclose to investors whether the source of information referred to in paragraphs 2 and 5 is included in one or more of the following and specify which:
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(a) |
a sworn statement by the project owner; |
|
(b) |
information available in credit registers; |
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(c) |
publicly available information, including from debt collection companies or credit rating agencies; |
|
(d) |
other type of information. |
7. Crowdfunding service providers shall take appropriate steps to ensure all of the following:
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(a) |
that the information provided by project owners in accordance with paragraph 5 is accurate, reliable and up to date; |
|
(b) |
that the disclosure to investors of the information referred to in paragraph 5 is in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council (6). |
(5) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
(6) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).