A party can petition the court to terminate the agreement if there has been a "material breach".
: Common grounds for banks include systematic missed payments or a significant drop in the value of collateral.
: A borrower might seek termination if the bank fails to provide the funds or unilaterally changes interest rates without legal authority.
: Termination usually triggers an obligation for the borrower to repay the remaining principal and accrued interest immediately.
: A bank may refuse to provide further credit if there are clear signs that the borrower will not be able to repay the loan on time. 4. Legal Consequences