The Civil Code of the RA provides important provisions on Credit Contract, which are binding for both parties.
Thus, under a credit contract, the bank or other credit organization (the creditor) shall be obliged to provide money funds (credit) to the borrower in the amount and on the conditions provided by the contract, and the borrower shall be obliged to return the monetary amount received and to pay interests on it. Credit contract shall be concluded in writing. Failure to maintain the written form shall entail invalidity of the credit contract. Such contract shall be null and void.
The creditor shall have the right to fully or partly refuse from providing the borrower with the credit provided for by the credit contract in case of presence of circumstances that obviously evidence that the amount submitted to the borrower shall not be returned in time.
In case of breach by the borrower of a duty provided for by the credit contract for use of the credit for a purpose (Article 884), the creditor also shall have a right to refuse from further granting of credit to the borrower under the contract.
The borrower shall have a right to refuse receiving a credit in whole or in part where the creditor is notified thereabout before the time provided for by the contract for its granting unless otherwise provided for by law, other legal acts, or a credit contract.
