French General Code of Local Authorities
In forceInformation relating to factoring
A. - Mention concerning factoring in the context of subrogation (1)
Accounting officers are authorised to pay money orders issued in the name of the creditor into the factor's hands, when memoranda, invoices, statements of work and other documents include the following statements:
"Payment to the order of (name of factoring company or its agent) to be sent directly to the factor (address, telephone number, bank or post office current account number).
It will receive it by subrogation under the factoring contract.
It must be notified of any enquiries or claims. "
B. - Statement concerning factoring in connection with an assignment or pledge (1)
Accounting officers are authorised to settle money orders issued in the name of the creditor in the hands of the factor when the memoranda, invoices, work progress reports and other documents include the following statements:
"The claim relating to this invoice has been assigned to (name of assignee) under articles L. 313-23 to L. 313-29-2 of the French Monetary and Financial Code.
Payment must be made by cheque, bill of exchange, notes, etc., made payable to (name of the factoring company or its agent) and sent to or by transfer to account no. at "
(1) These details must be indicated both in the case of so-called traditional factoring, where the creditor holding the contract takes the initiative for factoring, and in the case of so-called reverse or collaborative factoring, where the initiative for factoring comes from the debtor contracting authority.
