French Monetary and Financial Code
In forceI. - A secured claim within the meaning of article L. 313-42 may only be mobilised in accordance with the provisions of this article up to the limit of the smallest of the following amounts:
1. The outstanding principal amount of this claim ;
2. The product of the financing ratio defined in II and the value of the asset financed or provided as collateral.
II. - The proportion referred to in 2 of I is equal to :
1.60% of the value of the property provided as collateral for mortgage loans where the property provided as collateral is a commercial property;
2.80% of the value of the property financed for guaranteed loans or of the property provided as collateral for mortgage loans where the property financed or provided as collateral is a residential property. In the case of loans to finance the construction of housing or both the acquisition of building land and the construction of housing, with the exception of speculative property financing, the value of the residential property used is the sale price of the property in its state of completion;
3.100% of the value of the property provided as collateral, for the portion of loans guaranteed by the Fonds de Garantie à l'Accession Sociale à la Propriété mentioned in l'article L. 312-1 du code de la construction et de l'habitation or any person who replaces it.
For the purposes of 2, work to create or convert a habitable surface area, by extension or by refurbishment, with a view to creating a dwelling, is treated in the same way as the construction of housing.
III. - Issuers of promissory notes are required to value the assets financed or provided as collateral corresponding to the receivables used, in accordance with the procedures set out in an order issued by the Minister for the Economy.
