French Consumer Code
In forceI.-When the tenant has resumed payment of the rent and service charges and, during the period of time allowed for payment of the rental debt granted by a decision of the judge seised pursuant to Article 24 of Law No. 89-462 of 6 July 1989 aimed at improving rental relations and amending the loi n° 86-1290 du 23 décembre 1986, the commission imposes new deadlines and payment terms for this debt, of which the lessor is notified, these deadlines and payment terms replace those previously granted under the same article 24. Where these new terms are the result of a measure provided for in 4° of article L. 733-1 of this code, they are also extended by three months to allow the tenant to refer the matter to the commission again pursuant to article L. 733-2. Where, within these time limits, the commission has again been approached with a request to deal with the tenant's over-indebtedness, payment of the rental debt remains suspended until, depending on the case, approval of a conventional recovery plan as provided for in article L. 732-1, the decision imposing the measures provided for in articles L. 733-1, L. 733-4, L. 733-7 and L. 741-1, the judgement pronouncing a personal recovery without judicial liquidation, the judgement opening a personal recovery procedure with judicial liquidation or any decision closing the overindebtedness treatment procedure. Failing this, or if the new procedure for dealing with over-indebtedness is closed without new payment terms for the rental debt having been granted, the automatic termination clause will resume its full effect.
However, when, pursuant to article L. 733-10 a dispute has been lodged by one of the parties against the deadlines and terms of payment for the rental debt imposed by the commission, these deadlines do not replace those previously granted. The payment periods and terms granted subsequently by the judge ruling on this dispute, as well as those granted by the judge ruling in application of article L. 742-24, replace, where applicable, those previously granted. Where these new time limits are the result of a measure provided for in 4° of article L. 733-1, they are also extended by three months to allow the tenant to refer the matter to the commission again pursuant to article L. 733-2. Where, within these time limits, the Commission has again been approached with a request to deal with the situation of overindebtedness, payment of the rental debt remains suspended until, depending on the case, approval of a conventional recovery plan provided for in article L. 732-1, the decision imposing the measures provided for in articles L. 733-1, L. 733-4, L. 733-7 and L. 741-1, the judgement pronouncing a personal recovery without judicial liquidation, the judgement opening a personal recovery procedure with judicial liquidation or any decision closing the over-indebtedness treatment procedure. Failing this, or if the new procedure for dealing with over-indebtedness is closed without new payment terms for the rental debt having been granted, the automatic termination clause will resume its full effect.
During the periods mentioned in the first two paragraphs of this I, the effects of the automatic termination clause are suspended. These deadlines and payment terms may not affect the performance of the rental contract and in particular suspend the payment of rent and service charges. If the tenant discharges his rental debt within the time limits and according to the terms set, the automatic termination clause is deemed not to have come into effect. Otherwise, it will resume its full effect.
II.-When the tenant has resumed payment of the rent and service charges and, during the period of time allowed for payment of the rental debt granted by a decision of the judge seised pursuant to article 24 of the aforementioned law no. 89-462 of 6 July 1989, a personal recovery without judicial liquidation has been imposed by the commission or pronounced by the judge, or when a judgment closing a personal recovery procedure with judicial liquidation has been handed down, the effects of the automatic termination clause of the rental contract are suspended for a period of two years from the date of the decision imposing the measures to cancel the rental debt or of the closing judgment.
By way of derogation from the first paragraph of this II, when pursuant to article L. 741-4, a challenge has been lodged by one of the parties against the commission's decision imposing personal recovery without judicial liquidation, the commission's decision has no effect on the suspension of the effects of the automatic termination clause in the lease contract.
The suspension of the effects of the automatic termination clause of the tenancy agreement may not affect the performance of the tenancy agreement and in particular suspend the payment of rent and charges.
If the tenant has paid the rent and service charges in accordance with the rental agreement during the two-year period referred to in the first paragraph of this II, the automatic termination clause is deemed not to have come into effect. If this is not the case, it will resume its full effect.
III.-When it occurs after the implementation of the arrangements for dealing with the rental debt provided for by the commission or by the judge ruling in application of article L. 713-1, forfeiture of the benefit of the procedure for dealing with overindebtedness provided for in article L. 761-1 restores the deadlines and terms for payment of the rental debt granted, where applicable, previously by the court decision pursuant to article 24 of the aforementioned law no. 89-462 of 6 July 1989.
IV.-The lessor is expressly informed of the consequences of not contesting the decisions of the committee or the judge referred to in this article, under conditions set by decree in the Conseil d'Etat.
In the absence of a challenge by the lessor, the commission's decisions and their effects are binding on him, unless he has not been informed in accordance with the conditions set out in the first paragraph of this IV.
