חוק הבנקאות (שירות ללקוח) (תיקון מס' 31), התשע"ט–2019Banking Law (Service to Customer) (Amendment No. 31), 2019 · automatic translation · suggest a correction

Official summary of the law (Knesset)

Amendment No. 31 to the Banking (Service to Customer) Law, 1981 provides that if a person who took out a housing loan (from a banking corporation or from another body such as an insurance company or a non-bank entity) (hereinafter – the lender) dies, the lender shall postpone the repayment dates of the housing loan for a period of up to 12 months, if requested to do so by the person liable for its repayment. If the lender becomes aware of the death of a customer who took out a housing loan from it, it shall state in any letter or notice it sends regarding the debt the debtor's right to postpone repayment of the loan under the amendment. The lender may not charge, in respect of the postponement, default interest or any other payment that would not have been payable had it not been for the postponement. In addition, the provisions of the amendment may not be stipulated against except in favor of the customer. The amendment to the law further provides that a debtor liable for repayment of the loan who requested to postpone its repayment may choose whether to pay the postponed payments at the end of the loan period, in the same number of payments, or to add them to the payments due until the end of the loan period. The arrangement shall apply to housing loan agreements concluded 6 months from the date of publication of the amendment to the law, however this amendment does not prevent lenders from applying its provisions also to housing loan agreements concluded before that date.

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Yaakov Asher, Moshe Gafni, Uri Maklev, Itzik Shmuli, Dov Khenin, Haim Jelin