In a decision of 9 February, 1994, the French Supreme Court (Cour de Cassation) has ruled that any clause which allows a lender, in its sole discretion, to change the interest rate of a loan is not valid under the provisions of article 1129 of French Civil Code.
The invalidity of such a clause does not invalidate the loan contract.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances. For additional information contact Claire Acard on +33 (1) 55 61 10 10. The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar.