Revolving Debt AgreementRevolving debt is also called “Cash Reserve”, “appropriation”, “revolving credit”, “credit restorable”, “permanent credit” or “authorized credit.”


It is for the lender to provide the borrower a certain sum of money on an independent account of its other accounts. The lender did not in fact intended to be a bank.


As the consumer repays the loan, it is renewed and the reserve is replenished regularly to help finance other purchases within the originally authorized amount.


Revolving credit allows the borrower to permanently use an amount at its discretion and payable in monthly installments of money, credit in reconstituting as repayments.


This credit is not binding on the consumer as the allocation of the amount determined, since it is not assigned to a specific transaction.


Interest is based on the capital actually used


Credit is subject to these protective provisions when it meets the following conditions:


– It is granted by a professional (banking, shopping, credit institution, etc…) Without passing in front of a notary


– It is granted for a period exceeding three months


– It involves a sum of money exceeding $ 21,000


– It is intended to finance the needs of the borrower unrelated to his business


The revolving debt corresponds to these criteria, it is therefore a consumer loan strictly regulated and supervised. It is then subject to the provisions of this fact, which apply both to the subscriber of credit to bail.