Article 1642. Requirement of notification by creditor

(1) The creditor is required to notify the surety without undue delay in case of a non-performance by, or inability to pay of, the debtor of the secured obligation, as well as of an extension of maturity. This notification must include information regarding the secured amounts of the principal obligation, interest, and other ancillary obligations owed by the debtor on the date of notification. An additional notification of a new event of non-performance need not be given before three months have expired since the previous notification. No notification is required if an event of non-performance merely relates to ancillary obligations of the debtor, unless the total amount of all non-performed secured obligations has reached 5% of the outstanding amount of the secured obligation.
(2) In addition, in the case of a global suretyship, the creditor is required to notify the surety of any agreed increase:
a) whenever such increase, starting from the creation of the suretyship, reaches 20% of the amount at that was so secured at that time; and
b) whenever the secured amount is further increased by 20% compared to the secured amount at the date when the last information according to this paragraph was or should have been given.
(3) The provisions of paragraphs (1) and (2) do not apply insofar as the surety knows or could reasonably be expected to known that required information.
(4) If the creditor omits or delays any notification required under this Article, the creditor’s rights against the surety are reduced by the extent necessary to prevent the surety from suffering any loss as a result of the omission or delay.