Penal Code · English · 2015
Article 366
Fraudulent Borrowing and Lending
A person who borrows money from another without providing a collateral or pledge of sufficient value to cover the loan by promising or undertaking to pay back the loan on the due date together with interest higher than that payable then by financial institutions when that person knows or should have known that it would be impossible to carry on any lawful business that would yield sufficient profit for such payment at such rate,
#is guilty of fraudulent borrowing, a Class 1 petty offence, punishable with a definite term of imprisonment of not less than 6 months and not more than 12 months, or a fine of 20,001 – 50,000 Nakfas, to be set in intervals of 2,500 Nakfas.
#is guilty of fraudulent lending, a Class 1 petty offence, punishable with a definite term of imprisonment of not less than 6 months and not more than 12 months, or a fine of 20,001 – 50,000 Nakfas, to be set in intervals of 2,500 Nakfas.
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