LAW No 2019/021 OF2 4 DEC 2019
TO LAY DOWN SOME RULES GOVERNING CREDIT ACTIVITIES IN THE BANKING AND MICRO-FINANCE SECTORS IN CAMEROON
# PART I GENERAL PROVISIONS
# CHAPTER I PURPOSE AND SCOPE
Section 1: This law lays down some rules governing the granting of loans by banking and micro-finance institutions in Cameroon. In this regard, it sets out:
conditions for the conclusion of a loan transaction: obligations of the parties concerned; -liabilities in the event of non-repayment.
Section 2:This law shall apply o:
credit institutions and microfinance institutions operating within the territory of the Republic of Cameroon; borrowers and customers/members of credit institutions and microfinance institutions operating within the territory of the Republic of Cameroon; loan transactions concluded between one or more customers/members and credit providers operating within the territory of the Republic of Cameroon.
# CHAPTER II DEFINITIONS
Section 3: For the purpose of this law, the following definitions shall apply:
(1) Client/Member: natural or legal person holding an account in the books of a credit provider operating within the Republic of Cameroon. (2) Co-obligor: debtor who, under a contract or the law, is liable to pay a debt jointly or severally with others. (3) Rescheduled loan: change in respect of the initial conditions of a loan, to reduce the monthly instalment amount by extending the loan duration. (4) Restructured loan: loan for which there is an addendum to the original contractual clauses or a deed of novation following a negotiation of all the original conditions based on the financial standing of the borrower. (5) Borrower: natural or legal person that is the beneficiary of a loan transaction. () Credit institution: approved institution that habitually engages in banking transactions.
(7) Microfinance institution (MFI): approved entity engaged in microfinance activities within the national territory.
(8) Credit providers: banks, financial institutions, microfinance institutions and any other body duly authorized to engage in credit and microfinance activities.
(9) Personal bankruptey: sanction pronounced within the context of property adjustment or liquidation procedure, against a natural person or legal person managers, traders or any person entered on the Trade and Real Property Register.
(10)Ban on credit: sanction pronounced against a borrower in the event of intentional loan default.
(11) Moratorium: deadline granted a borrower whose loan repayment becomes difficult or impossible due to circumstances beyond his/her control.
(12)Bad faith: behaviour of borrowers that intentionally fake their own insolvency.
(13)Loan default: failure to pay all or part of a debt arising from a credit transaction entered into with a credit institution.
(14) Signature commitment operation: deed whereby a person acting for a consideration makes or undertakes to make funds available to another or, in the interest of the latter, makes an undertaking such as a surety, a bond, a guarantee or any other security.
(15)Credit transaction: deed whereby a credit institution, acting for a consideration, makes or undertakes to make advanced payments to a natural or legal person, or makes a signature commitment in the interest of the latter.