In case a borrower is not able to repay the loan, and no solution would be found directly between the borrower and Crowdpear (for example, refinancing of the loan), Crowdpear would terminate the contract with the project owner and would initiate a legal recovery process following the normative acts valid in the Republic of Lithuania and in the EU (such project would be displayed as ‘In recovery’ status).

Note that for each day of overdue interest payment, an additional 5% yearly interest would be applied for each investment (accumulated overdue interest amount would be processed with the last payment). In case of the project owner’s insolvency, interest will no longer accumulate starting from the day the court determines the insolvency (as per criteria established in Section 28, Clause 1, Point 4 of the Law on insolvency of legal entities of the Republic of Lithuania).

For more information, please refer to the document Procedure for management of defaults