Ministerial Order Approving Regulation No. 10 of the Office of Insurance Control Regarding Loyalty Rewards Granted by a Mortgage Company

19896 MONITEUR BELGE — 20.07.1995 — BELGISCH STAATSBLAD

MINISTRY OF ECONOMIC AFFAIRS

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

The Minister of Economic Affairs,

Having regard to the Law of 4 August 1992 on Mortgage Credit, in particular Article 39, § 2,

Decrees:

Article 1. Regulation No. 10 of 1 March 1995 of the Office of Insurance Control Regarding Loyalty Rewards Granted by a Mortgage Company is approved.

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

Brussels, 24 April 1995.

M. WATHELET

Appendix

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

The Office of Insurance Control,

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

Decrees:

Article 1. In this Regulation, the following terms shall be understood as follows:

• the "Law": the Law of 4 August 1992 on Mortgage Credit;
• the "Office": the Office of Insurance Control established by the Law 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 due to their particular situation or the privileged relationship they maintain or have maintained with the mortgage company.

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

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

Art. 3. A loyalty reward may be revised and even abolished, provided that the revision or abolition cannot 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, a due rebate is automatically offset against the amount of the arrears.

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

Brussels, 1 March 1995

The President, J.-M. Delporte.

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MINISTRY OF ECONOMIC AFFAIRS

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

The Minister of Economic Affairs,

Having regard to the Law 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 Service Regarding Loyalty Rewards Granted by a Mortgage Company is approved.

Art. 2. This Decision shall enter into force on the day of its publication in the Belgian Official Journal.

Brussels, 24 April 1995.

M. WATHELET

Appendix

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

The Insurance Control Service,

Having regard to the Law of 4 August 1992 on Mortgage Credit, in particular Article 39, § 2 and § 3;

Having regard to the advice of the Insurance Commission;

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

Decides:

Article 1. In this Regulation, the following terms shall be understood as follows:

• the "Law": the Law of 4 August 1992 on Mortgage Credit;
• the "Control Service": the Insurance Control Service, established by the Law 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, granted within the framework of a mortgage credit agreement to a borrower due to their specific situation or the client relationship they maintain or have maintained with the mortgage company.

This advantage consists of a reduction in the interest on the credit, namely either a "reduction" if it takes the form of a reduction in the amount to be paid, i.e., the interest rate, or a "rebate" if it takes the form of a refund of a part of the amount paid.

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

Art. 3. A loyalty reward may be revised and even abolished, provided that the revision or abolition cannot originate from the non-payment of an amount due under the credit agreement or from the economic situation of the lender. The terms of the revision or abolition must be determined 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 agreement must stipulate that non-payment of an amount referred to in Article 3 results in automatic set-off between a due rebate and the amount of the arrears.

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

Brussels, 1 March 1995

The President, J.-M. Delporte.