MINISTRY OF ECONOMIC AFFAIRS

24 APRIL 1995. – Ministerial Order Approving Regulation No. 10 of 1 March 1995 of the Insurance Control Office Regarding Loyalty Rewards Granted by a Mortgage Company

The Minister of Economic Affairs,

Having regard to the Act of 4 August 1992 on mortgage credit, in particular Article 39, § 2,

Decides:

Article 1. Regulation No. 10 of 1 March 1995 of the Insurance Control Office regarding loyalty rewards granted by a mortgage company is approved.

Art. 2. This Order enters into force on the day of its publication in the Belgian Official Journal.

Brussels, 24 April 1995.

M. WATHELET

---

Annex

1 MARCH 1995. – Regulation No. 10 of the Insurance Control Office Regarding Loyalty Rewards Granted by a Mortgage Company

The Insurance Control Office,

Having regard to the Act of 4 August 1992 on mortgage credit, in particular Article 39, § 2 and 3;

Having regard to the opinion of the Insurance Commission;

Having regard to the internal regulations of the Council of the Insurance Control Office, approved by Royal Decree of 13 November 1975, in particular Article 11,

Decides:

Article 1. In this Regulation, the following shall be understood by:

• the "Act": the Act of 4 August 1992 on mortgage credit;
• the "Office": the Insurance Control Office established by the Act of 9 July 1975;
• the "loyalty reward": any advantage, temporary or permanent, expressed as a fixed or variable sum or as a percentage of such a sum, regardless of the name given to it, granted within the framework of a mortgage credit contract to a borrower on account of their particular situation or the privileged relationships they maintain or have maintained with the mortgage company.

This advantage constitutes a reduction in the interest burden of the credit, either a "reduction," if it consists of a decrease in the amount to be paid, and thus the rate, or a "rebate," if it consists of the return of part of the amount paid.

Art. 2. This Regulation applies to mortgage companies referred to in Article 37 of the Act, for their mortgage credit contracts subject to Title I of the Act.

Art. 3. A loyalty reward may be revised and even abolished, provided that the revision or abolition does not originate from the non-payment of an amount due under the credit contract or from the economic situation of the creditor. The terms of the revision or abolition must be established contractually.

Art. 4. The non-payment of an amount referred to in Article 3 cannot suspend the due date of a rebate.

Art. 5. The credit contract must stipulate that in the event of non-payment of an amount referred to in Article 3, an due rebate is automatically offset against the amount of the arrears.

Art. 6. This Regulation enters into force on the day of its publication in the Belgian Official Journal.

Brussels, 1 March 1995

The President,
J.-M. Delporte.