The Supreme Court for Civil Matters ruled in a recent case, that the death of a borrower doesn’t automatically entail a right of the bank to enforce security. As a general rule, the loan agreement is still valid after the death of the borrower. Good cause to terminate the loan agreement only exists if the repayment of the loan is jeopardized due to deterioration of the financial situation of the borrower. (9Ob35/16m)
Dying: Not a reason to enforce security
