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13 MARCH 1998. An Act to amend the Mortgage Credit Act of August 4, 1992 and to amend the Act of April 13, 1995 to amend the Mortgage Credit Act of August 4, 1992 (1)

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 78 of the Constitution.
Art. 2. In section 4 of the Act of 4 August 1992 on mortgage credit, the 4th is replaced by the following provision:
"4° "interest rate": the rate, expressed as a percentage per period, to which the interest is calculated for the same period: any decrease or increase in the cost of the credit, for any reason and not referred to in chapter III of this title, must be taken up in the interest rate. »
Art. 3. Section 9 of the Act is replaced by the following provision:
“Art. 9. § 1^er. If the variability of the interest rate has been agreed, there can be only one interest rate per credit contract. The following rules apply to this interest rate:
1° The interest rate must fluctuate both upwards and downwards.
2° The interest rate may only vary upon expiry of specified periods, which may not be less than one year.
3° The change in the interest rate must be related to fluctuations in a benchmark index taken from a series of benchmark indices based on the duration of periods of change in the interest rate.
The list and method of calculating the benchmarks are determined by the King, by order deliberately in the Council of Ministers, taken on the advice of the National Bank of Belgium, the Banking and Financial Commission and the Office for the Control of Insurance after consultation with the Commission of Insurance.
4° The initial interest rate is the basis for calculating interest due by the borrower in the first interest payment.
5° The initial value of the reference index is that of the calendar month prior to the date of the offer referred to in section 14. However, by derogation from this rule, mortgages subject to Part II of this Act must use the value of the reference index set out in their interest rate tariff for the type of credit considered. In this case, this value is that of the calendar month prior to the date of this tariff.
6° At the expiry of the periods determined in the constitutive act, the interest rate for the new period is equal to the initial interest rate increased by the difference between the value of the benchmark index published in the calendar month prior to the date of the change, and the initial value of that index.
If the initial interest rate is the result of a conditional reduction, the lender may, for fixing the new interest rate, rely on a higher interest rate if the borrower does not meet the expected interest rate(s). The increase cannot exceed the reduction granted at the beginning of the credit, expressed as a percentage per period.
7° Without prejudice to what is set out in 8° below, the constitutive act must stipulate that the change in the interest rate is limited, both upwards and downwards, to a deviation determined from the initial interest rate, without the fact that the difference in the interest rate may be higher than the difference in the case of a decline.
If the initial interest rate results from a conditional reduction, the constitutive instrument may provide that the variation referred to in paragraph 1^er operates on the basis of a higher interest rate if the conditions or conditions set for the award of the reduction are no longer met. The applied increase cannot exceed the reduction at the time of taking credit, expressed as a percentage per period.
The constitutive act may also provide that the interest rate varies only if the change to the increase or decrease results from the interest rate of the previous period, a specified minimum difference.
8° If the first period has a duration of less than three years, an increase in the interest rate may not have the effect of increasing the interest rate applicable to the second year more than the equivalent of one point per cent per year compared to the initial interest rate, or increasing the interest rate applicable to the third year more than the equivalent of two points per cent per year compared to that initial interest rate.
§ 2. (a) In the event of a change in the interest rate and when capital is depreciated, the amounts of the periodic expense are calculated at the new interest rate and according to the provisions of the constitutive instrument.
In the absence of such provisions, the periodic loads shall be calculated on the basis of the remaining balance and the remaining period to be incurred, depending on the technical method used initially.
(b) In the event of a change in interest rate and where there is no capital amortization, interest is calculated at the new rate according to the technical method used initially.
§ 3. Periods, conditions and conditions of change in the interest rate and the initial value of the reference index must be included in the constitutive document.
§ 4. Where there is a change in interest rate, the change must be communicated to the borrower no later than the date of interest taking at the new interest rate. It shall, if any, be accompanied, without charge, by a new damping table containing the data referred to in Article 21, § 1^er, for the remaining period to run.
§ 5. The King shall determine the terms and conditions of application of this article by order deliberately in the Council of Ministers. »
Art. 4. Section 14 of the Act is supplemented by the following paragraph:
"At the latest at the time of the offer, the lender shall give the borrower a depreciation chart relating to the credit under this offer. "
Art. 5. Article 21, § 1^erthe same law shall be replaced by the following:
« § 1^er. If capital is to be depreciated, the constitutive act must determine the periodic expenses of the amortizing payment and interest, as well as the times and conditions to which these amounts are to be paid.
In addition, it must include a depreciation table that must contain the decomposition of each periodic charge, as well as the indication of the remaining balance due after each payment.
When a reduction in interest rates is granted, the damping table shows the amounts to be paid and the remaining balances due to this reduction. If the reduction is subject to change, a new damping table is provided, taking into account the changes. »
Art. 6. The following amendments are made to section 47 of the Act:
1° Paragraph 2 is supplemented by the following:
"With respect to the credits offered by the mortgage company, this prospectus must contain the interest rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate reductions and all conditions for granting.
The parties may agree on reductions or increases derogating from the prospectus, if they are more advantageous to the borrower or if they have been negotiated on its initiative. »
2° Paragraph 4 is replaced by the following:
"The King sets out the rules for advertising, flyers and application forms. In particular, it may impose an actuarial rate on mortgages and intermediaries to facilitate the comparison of mortgages. »
Art. 7. Article 1^er of the Act of 13 April 1995 amending the Act of 4 August 1992 on mortgage credit is repealed.
Art. 8. This Act comes into force on 1^er September 1998, with the exception of Article 7, which comes into force on the day of its publication at the Belgian Monitor. It does not apply to contracts entered into before it comes into force.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 13 March 1998.
ALBERT
By the King:
Deputy Prime Minister and Minister of Economy,
E. DI RUPO
Deputy Prime Minister and Minister of Finance,
Ph. MAYSTADT
Seal of the state seal:
Minister of Justice,
S. DE CLERCK

(1) Regular session 1996-1997:
House of Representatives:
Parliamentary documents. - Bill No. 946/1. Amendments, No. 946/2 to 6. Report, no. 946/7. Text adopted by the Commission, No. 946/8. Amendments, No. 946/9. Text adopted in plenary and transmitted to the Senate, No. 946/10. Draft amended by the Senate, No. 946/11. Amendments, No. 946/12. Report, No. 946/13. Text adopted by the Commission, No. 946/14. Text adopted in plenary meeting, No. 946/15.
Annales parliamentarians. - Discussion. Meeting of 25 June 1997. - Adoption. Session of June 26, 1997. - Discussion. Session of 11 February 1998. - Adoption. Meeting of 12 February 1998.
Regular session 1996-1997:
Senate:
Parliamentary documents. - Project transmitted by the House of Representatives, No. 1-693/1.
Regular session 1997-1998:
Amendments, no. 1-693/2 and 3. - Report, no. 1693/4. Text adopted by the Commission, No. 1-693/5. - Amendments, no. 1-693/6. Text amended by the Senate and referred to the House of Representatives, No. 1-693/7.
Annales parliamentarians. - Discussion and adoption. Session of 18 December 1997.