Repayment (money transfer)
Repayments occur on all types of monetary claims, especially credits , loans or bonds, and are one of the most important credit terms or loan terms . While they ensure an increase in liquidity for the creditor , they lead to a liquidity burden for the debtor. It is therefore necessary to base the amount of the repayment on the future development of the debtor's income and to secure it through corresponding repayment agreements in the loan agreement . Small repayments result in a higher interest burden and a longer credit period . Excessive repayment agreements can increase the debtor's credit risk due to the strain on liquidity and contribute to the debt trap, especially in the event of declining income (e.g. due to unemployment ) .
Repayment is in the legal sense a fulfillment according to ff. BGB, so that these provisions also apply to repayment. In Section 362 (1) of the German Civil Code (BGB) it is stated succinctly that an obligation expires when the performance owed to the obligee is effected. The provision leaves open by whom the owed service is to be provided. As a rule, this will be the debtor , but every third party (friends, relatives, spouses; in the case of companies, their shareholders) is entitled to pay off the debt on behalf of the debtor. Accordingly, it can be indifferent to the creditor who pays back his claim. If the debtor has several obligations with the same obligee, a repayment provision is provided in (2) BGB. If costs and interest are to be paid in addition to the repayment , (1) of the German Civil Code (BGB) requires first to be offset against the costs, then the interest and only then against the debt. The debtor has to effect the repayment at the place of performance and can request a written receipt for his repayments according to BGB .
Since money debts are regularly repaid, obligation to deliver , but rather, because the place of performance remains with the debtor, a "qualified obligation to send ". Accordingly, the debtor also bears the risks that arise in connection with his repayment. This includes, in particular, incorrect execution that can result from a bank transfer and the risk of loss, after which the debtor is only released from his obligation to pay once the repayment amount has been received by the obligee. The debtor has to pay again if a repayment amount does not reach the creditor. The transfer of risk to the obligee therefore only takes place when the repayment amount has been credited to his account . Delays in transferring a repayment, on the other hand, are not covered by Section 270 (1) BGB. If the debtor has done what was necessary for the timely repayment, the obligee bears the risk of the late receipt of payment.BGB also applies. According to this, the debtor has to make repayment at his own risk and expense to the obligee at his place of residence or business (Section 270 (1) BGB). However, this regulation on the place of payment does not make the debt an
While partial payments by the buyer are not permitted in sales contract law, loan law expressly provides for the possibility of partial payments. The law speaks of a "loan that is to be repaid in installments" ( consumer loans also apply to partial payment transactions according to (1) BGB . Unpunctual, wholly or partially missing repayments lead to debtor default . This occurs automatically according to Paragraph 2, No. 1 of the German Civil Code (BGB) because the installment payment is determined by the calendar . The lender may terminate the loan if the borrower is fully or partially in arrears with two consecutive repayment installments (Section 498 No. 1 BGB) and has not paid the outstanding amount within 14 days of the reminder (Section 498 No. 2 BGB) . The lender's right of termination only applies if the two successive installments reach at least 10% (for a loan term of up to three years) or at least 5% (for a loan term of more than three years) of the loan amount.BGB). The regulations for
A distinction is made between the following forms of repayment:
Regular repayments are the repayments made on the basis of a repayment schedule, at certain times and in a certain amount over the term of the loan on a pro rata temporis basis . These include
- Installment loan : here the repayment
- Annuity loan : here the regular and equally high annuity includes both a repayment and an interest component, the latter being reduced in favor of the repayment component;
- Bullet loan : The repayment is made in one sum on the due date.
- Types of loans with regular repayments include, in particular, consumer loans , real estate finance , mortgage loans and investment loans .
Irregular repayments are not based on a repayment schedule. These include the following types of credit:
- Current account credit : The entire credit can be repaid in full or in part at any time without consulting the bank (provisionally) and is revived in the amount of the repayment until the loan is due;
- Overdraft facility : Here too, the entire loan can be repaid in full or in part at any time without consulting the bank (provisionally) and is revived in the amount of the repayment until the loan is due;
- Lombard loan : Provisional repayments are also possible here, the credit line is available until it becomes due;
- Revolving credit and stand-by credit : These are the variants of current account credit that occur in international credit transactions, with the exception that no bank balances may arise.
- A special form is the balloon loan , which is based on a repayment plan , but does not provide for constant repayment installments. The highest repayment installment is due at the end of the loan term ("balloon"), this residual debt, like the residual value in the case of leasing, corresponds to the expected market value of the financed passenger car .
While the additional interest payments due are not taken into account in the case of installment loans, they are mathematically related to the repayment in the case of annuity repayment. Since the annuity amount, which is made up of the interest and repayment component, always remains the same for the annuity repayment, the repayment component increases as the interest component decreases.
Scheduled repayments exist if the repayments are made precisely on the basis of a repayment plan ; unscheduled repayments are not provided for in the repayment plan and are therefore not permitted. In the case of bonds, final repayment is usually provided for in the bond terms and conditions ; in the case of redemption bonds, tranches, series or series are repaid by drawing lots (as planned).
In the case of long-term loans (investment loans, real estate financing) and bonds, the repayment is also called amortization . It is typical for some types of credit, such as the overdraft facility , overdraft facility and revolving loan, that interim repayments should not lead to final repayment, but only serve as a temporary investment .
Savings payments from endowment insurance , annuity insurance or building society contracts are referred to as redemption surrogates or redemption substitutes and in some cases have to be added to the redemption in economic terms (see debt servicing ability ).
The repayment extension is not - as the term suggests - the suspension of a repayment. Rather, there is the possibility of a repayment extension in the banking system for loans that were originally paid out with retention of a discount . The repayment extension also enables the disagio to be paid out, so that the entire loan amount can be made available to the borrower. In terms of banking, the borrower is granted two loans, namely the main loan and the repayment extension loan in the amount of the discount. Later repayments are initially credited to the extension loan before the scheduled repayment of the main loan begins. As a rule, the repayment of the extension loan granted additionally results in an extension of the term of the main loan - its term is "extended".
If contractually agreed repayments are not made in whole or in part, there will be disruptions in performance due to debtor default . The total or partial non-payment of repayments is a credit event . In this case, loan agreements usually provide for termination rules ( default clause ), according to which the creditor has the right to call the loan due for immediate repayment by terminating the loan . So-called cross-default clauses prevent the debtor from unilaterally changing the repayment priority if he has borrowed from several creditors and he cannot raise all the repayments due.
Remedy for repayment problems creates the suspension of repayment through deferral . A new repayment agreement can both extend the repayment periods and reduce the repayment amounts. Both measures lead to an extension of the credit period and an increase in the interest burden. In the case of sovereign debt relief , these measures are referred to as restructuring .
If the repayment is not made from the debtor's current income, but from specific repayment products, repayment vehicles are used.
- Peter W. Heermann, Money and Money Transactions , 2003, p. 39
- Stanislav Tobias, Bankrecht , 2005, p. 60
- RGZ 78, 137 , 140
- BGH WM 1957, 635, 637