Section 4: Guarantee for sureties

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L313-50L313-50-1L313-50-2L313-51

Article L313-50

French Monetary and Financial CodeIn force
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Updated 8 Nov 2023

I. - A surety guarantee mechanism is hereby set up to honour, in the event of default by a credit institution or finance company, the surety undertakings required by law or regulation and given by that institution or company to natural or legal persons governed by private law. Credit institutions or finance companies authorised in France to issue such guarantees adhere to this mechanism.

II. - The Deposit Guarantee and Resolution Fund manages the surety guarantee mechanism. Where applicable, articles L. 312-5 to L. 312-15, 3°, 4°, 5°, 7° and 9° of article L. 312-16 and article L. 312-18 apply to this mechanism, in particular to its financing. In addition, the fonds de garantie des dépôts et de résolution is subrogated to the rights and obligations resulting from the commitments made by the credit institution or finance company and honoured by the fund up to the amount paid in this respect.

III. - The surety guarantee mechanism shall be implemented at the request of the Autorité de contrôle prudentiel et de résolution, as soon as the latter ascertains that a credit institution or finance company is no longer able to honour, immediately or in the near future, the surety commitments referred to in I that it has granted. Where applicable, the surety guarantee mechanism intervenes jointly with the deposit guarantee mechanism, when the latter is called upon under the first paragraph of article L. 312-5.

If the Fonds de Garantie des Dépôts et de Résolution intervenes under the guarantee mechanism, the member's authorisation is struck off or withdrawn.

IV. - As a preventive measure and on a proposal from the Autorité de contrôle prudentiel et de résolution, the surety guarantee mechanism may also intervene, independently or jointly with the deposit guarantee mechanism managed by the fonds de garantie des dépôts et de résolution, under the conditions set out in article L. 312-5.

A decree sets the list of compulsory sureties covered by the surety guarantee mechanism and defines the procedures for informing the public about the guarantee granted.

Mariela Petrova

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A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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