Par conditio creditorum

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The par conditio creditorum (= equal position of the creditors ) is the most important principle in insolvency law (formerly bankruptcy law) and states that all creditors should be satisfied equally in the insolvency proceedings . In addition, this principle is implemented by creditors, especially credit institutions , in credit agreements .

Loan agreements

Creditors, especially credit institutions, have an interest in the borrower treating them on an equal footing with all other unsecured creditors in the case of unsecured loans. This applies to both the payment of interest and amortization, if, for example, the debtor could be tempted to service some creditors in full, but not others, if liquidity is scarce. In addition, the unsecured creditors are interested in the debtor not granting any of the creditors any collateral because this would mean an insolvency privilege (because of the right of separation in the case of the debtor's insolvency).

In order to be able to implement this interest in loan agreements, the pari passu clause and the negative declaration were created, through which both changes in the repayment priority and the unilateral provision of loan collateral can be excluded. A breach of these clauses is an event ( default clause ) that triggers extraordinary termination rights by the bank.

insolvency

The right of avoidance in § 129 to § 147 InsO (Germany) aims to ensure the principle of par conditio creditorum by reversing asset shifts that took place before the bankruptcy was opened in order to create the same access situation for all creditors.

See also

Legal terminology

Individual evidence

  1. Justus Kortleben: The creditor in insolvency proceedings . Peter Lang, 2018, ISBN 978-3-631-75825-0 , pp. 20th ff .