Subsection 7: Provisions relating to the conclusion, assessment and implementation of group financial support agreements

Articles in this section · 8

L613-46L613-46-1L613-46-2L613-46-3L613-46-4L613-46-5L613-46-6L613-46-7

Article L613-46-4

French Monetary and Financial CodeIn force
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Updated 7 Nov 2023

I. - Financial support may be provided by an entity of a group pursuant to Article L. 613-46 only if the following conditions are met:

1° The financial support is intended to preserve or restore the financial stability of the group as a whole or of one of its entities and is in the best interests of the person providing it;

2° There is a reasonable prospect that the support will help to ensure the continued operation of the beneficiary group entity;

3° The entity concerned complies with the capital, liquidity and large exposures requirements applicable to it and is not likely to breach them as a result of granting its support, unless it has been authorised to derogate from them by the competent authority;

4° The granting of its support does not compromise its liquidity, solvency or ability to effectively implement resolution measures against it;

5° The granting of its support does not pose a threat to financial stability, in particular in the State in which it is established;

6° There is a reasonable prospect, at the time the decision to grant the financial support is taken, that the beneficiary entity will pay the consideration for the support received provided for in 2° of I of Article L. 613-46-3 and, where applicable, fulfil the other commitments it has made in this connection.

II. - The decision to receive financial support is subject to the approval of the Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions of the entity concerned.

III. - Prior to its implementation, the decision to provide financial support is notified:

1° To the college of supervisors when it is responsible for the supervision on a consolidated basis of the group to which the entity party to the agreement granting its support belongs or when it is the competent authority to supervise this entity ;

2° Where applicable, the authority responsible for supervision on a consolidated basis of the group to which the entity party to the agreement granting its support belongs or the authority competent to supervise that entity;

3° Where applicable, the authority competent to supervise the entity party to the agreement which is receiving support;

4° the European Banking Authority.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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