(1) The borrower may terminate a credit agreement with a pegged borrowing rate, as a whole or in part,
1. if the pegging of the borrowing rate ends prior to the time determined for repayment and no new agreement is reached on the borrowing rate, observing a notice period of one month that is to end at the earliest at midnight of the day on which the pegging of the borrowing rate ends; if an adjustment of the borrowing rate is agreed at certain intervals of up to one year, then the borrower may give notice of termination only as per midnight of the day on which the pegging of the borrowing rate ends;
2. in any case following the expiry of 10 years after complete receipt, observing a notice period of six months; if, after the loan is received, a new agreement is reached on the repayment period or the borrowing rate, the date of this agreement takes the place of the date of receipt.
(2) The borrower may terminate a credit agreement with a variable rate of interest at any time, giving three months’ notice of termination.
(3) Termination by the borrower is deemed not to have been given if the borrower does not repay the sum owed within two weeks after the notice of termination takes effect.
(4) The borrower’s right of termination under subsections (1) and (2) may not be excluded or made more difficult by contract. This does not apply to loans to the Federal Government, to a special fund of the Federal Government, a Land, a municipality, an association of municipalities, the European Communities or foreign regional or local authorities.
(5) The borrowing rate is the pegged or variable periodic percentage that is applied per year to the loan that has been taken out. The borrowing rate is pegged if a borrowing rate or several borrowing rates is/are agreed for the entire term of the contract, which is/are expressed as a fixed percentage. If no borrowing rate is agreed for the entire term of the contract, the borrowing rate is deemed to be pegged only for those periods for which it is determined by a fixed percentage.