French Insurance Code
In forceI.-When the resolution college considers that one of the beneficiary-trustees is in breach of its obligations or that its financial situation has deteriorated significantly and no longer enables it to meet its commitments in respect of the trust assets transferred to it, it may :
1° Enjoin the beneficiary-trustee concerned to submit to it, within a period which it shall determine and which may not be less than four months, a request for amendment of the trust agreement entailing the assumption of its rights and obligations arising from the trust agreement entered into with the person subject to a resolution procedure;
2° After ascertaining that the procedure referred to in 1° has failed, order the transfer of the rights and obligations arising from the trust agreement to one or more beneficiary-trustees which it shall designate.
The new trustee is appointed under the conditions set out in II. The decision of the collège de résolution automatically entails the divestment of the initial beneficiary-trustee and the transfer of the rights and obligations arising from the trust contract from the trustee to the replacement trustee.
II - When the resolution college decides to substitute a trustee-beneficiary, and after the procedure referred to in 1° of I has failed, it shall issue a call for tenders to designate an insurance undertaking mentioned in Article L. 310-1 likely to take over the rights and obligations arising from the trust contract of the person mentioned in the first paragraph of I.
The collège de résolution shall select the offer that it considers best protects the interests of policyholders, participating members, members and beneficiaries of benefits, employers, subscribing legal entities, subscribers of contracts transferred to the liability management vehicle, in particular with regard to the ability of the candidates to effectively manage the commitments concerned by the trust contract.
III - For the purposes of I, the resolution college may lay down criteria relating to the solvency or risk profile of the trustee-beneficiary at the time of conclusion of the contract. It may also limit some of the powers of the beneficiary-trustee(s) in relation to the fiduciary estate or make their use subject to the prior approval of the collège de résolution.
IV - The transfer of these rights and obligations shall take place under conditions that guarantee fair and prior compensation for the person mentioned in the first paragraph of I. This compensation may be accompanied by a transfer of assets, the level and composition of which are approved by the resolution college as part of the transfer decision.
V.-The decision of the collège de résolution is published in the Journal officiel. This decision may be relied on against the other trustee-beneficiaries and, notwithstanding Article 2018-2 of the Civil Code, this publication may be relied on against any debtor in respect of the assignment of its claim resulting from the transfer of the trust.
