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Restrictive views by case law for loan agreements

25/10/2018

  1. When the disbursement is “contrived” the loan does not qualify as title for enforcement

 The transfer of the funds to the borrower is an essential element of the loan contract: nevertheless, case law has always considered that the material transfer is not necessary, being sufficient to the intended scope of the contract that the borrower is granted the legal availability of the sum.

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CMS Newsletter Italia | 25 ottobre 2018
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Authors

Portrait ofPaolo Bonolis
Paolo Bonolis
Partner
Rome
Portrait ofGianfabio Florio
Gianfabio Florio
Counsel
Rome