Termination of credit granted to a company: minimum legal notice period of 60 days
mer., 04 juin 2014 12:58:00 +0200
In its ruling no. 12-29682 of 14 January 2014, the Commercial Chamber at the Court of Cassation reiterated the legal notice that a credit establishment must respect when terminating a credit conferred to a company which is fixed at the time of granting the credit but which may not be less than 60 days.
Indeed, articleL. 313-12 of the Monetary and Financial Code makes provision that "any indefinite credit, other than occasional, which a credit establishment confers to a company may only be reduced or terminated following written notice and upon expiry of a period of notice indicated at the time of granting the credit. This period may not, subject to invalidity of the termination, be less than 60 days".
The High Judges criticized a decision by the Court of Appeal which judged that "this minimum term of 60 days should be adapted to the situation of the debtor, subject to being deemed too short or abusive".