French Monetary and Financial Code
In forceI. - For the application of III of Article L. 312-4, the Deposit Guarantee and Resolution Fund may be responsible for informing depositors of the branches mentioned in this III on behalf of the authorities of another State party to the Agreement on the European Economic Area responsible for the administration or management of an equivalent deposit guarantee mechanism.
On this occasion, it may receive any requests or complaints made by depositors of these branches with a view to forwarding them to these authorities.
When it intervenes at the request and in accordance with the instructions of the authorities mentioned in the first paragraph to compensate the depositors of a branch located in France of a credit institution covered by the State guarantee fund mentioned in the same paragraph, the liability of the deposit guarantee and resolution fund may not be incurred with regard to the depositors of this branch. It intervenes within the limits of the resources transferred to it by the guarantee fund of that State and subject to reimbursement of the costs relating to this intervention.
II. - The Deposit Guarantee and Resolution Fund may compensate the depositors of a branch of one of its members located in a State party to the Agreement on the European Economic Area through the intermediary of a deposit guarantee scheme in that State. The Deposit Guarantee and Resolution Fund may entrust the latter with the task of informing the depositors concerned on its behalf. It may also entrust it with the task of receiving any request or claim from these depositors, on its behalf, with a view to forwarding them to it.
The Deposit Guarantee and Resolution Fund shall not be liable to depositors of a branch of one of its members located in another country of the European Economic Area if the authorities of that State responsible for the administration or management of the equivalent deposit guarantee mechanism of the country in which the branch is located have not acted in accordance with the instructions given to them by the Deposit Guarantee and Resolution Fund.
III. - In the cases provided for in I and II, the fonds de garantie des dépôts et de résolution may communicate with the depositors concerned in a language other than French.
IV. - For the application of I and II, the fonds de garantie des dépôts et de résolution may, after receiving the opinion of the Autorité de contrôle prudentiel et de résolution, enter into agreements with the authorities or persons responsible for administering an equivalent deposit guarantee scheme of another State party to the agreement on the European Economic Area. The purpose of these agreements is to:
1° Proceed, through the intermediary of these authorities or persons, to compensate depositors of a branch of a credit institution belonging to the deposit guarantee and resolution fund when this branch is located in this other State;
2° To compensate, on their behalf, depositors of a branch located in France of an institution pursuant to III of article L. 312-4 ;
3° To exchange with them the information necessary for the performance of their respective duties, including information covered by the professional secrecy referred to in Article L. 511-33 , provided that these authorities or persons are themselves subject to confidentiality obligations and that this information may only be used for the purposes for which it was transmitted;
4° Define the procedures for communicating with depositors of branches located in a State party to the Agreement on the European Economic Area other than that of the guarantee system responsible for compensating them.
These agreements may also relate to the conditions under which the contributions of a credit institution belonging to the deposit guarantee and resolution fund or to an equivalent system of another State party to the agreement on the European Economic Area are transferred when the activities of this institution are themselves transferred in whole or in part to this State or to France and result in this institution having to belong to another deposit guarantee system. These agreements may only relate to the transfer of contributions paid by this credit institution during the twelve months preceding the transfer of its activity, with the exception of the exceptional contributions mentioned in the second paragraph of I of article L. 312-7. The amount of contributions transferred is calculated in proportion to the amount of guaranteed deposits transferred.
The transfer in application of the previous paragraph of contributions paid to the deposit guarantee and resolution fund is carried out automatically on the date agreed by the fund and its co-contractor without further formality. Where the contributions to be transferred have been paid by the institution in the form of members' certificates or association certificates, these certificates shall first be cancelled or their nominal amount reduced by the amount of the sums to be transferred.
When the Fonds de Garantie des Dépôts et de Résolution reaches an agreement with the authorities or persons mentioned in the first paragraph, it shall inform the Autorité de Contrôle Prudentiel et de Résolution, which shall inform the European Banking Authority.
In the event of a dispute over the application of such an agreement, the Deposit Guarantee and Resolution Fund may refer the matter to the European Banking Authority with a view to reaching a settlement on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
The absence of an agreement is without prejudice to the rights of depositors of a branch of a member institution of the Deposit Guarantee and Resolution Fund located in another State party to the Agreement on the European Economic Area to be compensated by the Deposit Guarantee and Resolution Fund in the event of intervention under I of Article L. 312-5 at this institution.
V. - In accordance with V of Article L. 312-7, the Deposit Guarantee and Resolution Fund may borrow from the authorities or persons responsible for administering an equivalent deposit guarantee scheme in another State party to the Agreement on the European Economic Area. It may also grant them loans.
Borrowing or lending agreements may only be entered into with the assent of the Autorité de contrôle prudentiel et de résolution.
VI. - Under the same conditions, the Fonds de Garantie des Dépôts et de Résolution may borrow from, grant loans to or give its guarantee to other resolution financing schemes in States party to the Agreement on the European Economic Area.
