French Insurance Code
In forceThe granting of the guarantee is subject to compliance by the purchasing French company with all of the following criteria:
1° It has, for at least one of the two financial years preceding the issue of the State guarantee, a minimum ratio of equity capital to financial commitments set at 13.33% or a minimum interest cover ratio, calculated on the basis of gross operating surplus, set at 1. It also has equity capital, as recorded in its accounts, greater than or equal to half of the share capital.
The company's equity, interest charges and gross operating surplus are determined in accordance with the definition in the general chart of accounts. Where equity is not limited to share capital, the inclusion of other equity must be validated by an auditor.
The company's financial commitments are defined as the sum, net of cash, cash equivalents and marketable securities, of the financial debts shown on the balance sheet and the financial guarantees shown off the balance sheet granted by a credit institution, an insurance or reinsurance company or another guarantor institution on behalf of the company;
2° It is not subject to safeguard, recovery or liquidation proceedings under Titles II to IV of Book VI of the French Commercial Code and does not meet the conditions for such proceedings if one of its creditors so requests.
