French Monetary and Financial Code
In forceBefore concluding the loan agreement, the intermediary in participative financing :
1° Tells each co-contractor:
a) The amount of money made available under the contract between the lender and the project promoter ;
b) The duration of the credit or free loan;
c) The contractual interest rate applicable to the lender;
d) The amount payable to the lender (capital and interest);
e) The frequency of repayments and the loan repayment schedule;
f) If the lender has a right of withdrawal, the terms and conditions for exercising this right, in particular the starting point, duration and conditions for exercising it and, if there is no such right, the irrevocable nature of the credit or free loan;
2° Informs the project owner and the lender of the method of calculation and the amount, in euros and as a percentage of the capital borrowed, of the remuneration and other charges required;
3° Informs the project owner and the lender of the conditions for releasing the funds and making them available;
4° Draws the lender's attention to the specific operating mode of participative financing in the form of free credit or loans and, in particular, to the risks of non-repayment by the project owner and, where applicable, to the absence of a guarantee covering these risks as well as to the unavailability of the sums lent;
5° Draws the project owner's attention to the risks of excessive indebtedness and the consequences of default on payment;
6° Presents, in a clear and easily accessible manner, the respective roles and responsibilities of the lender, the project owner, the equity intermediary and any other partners in the event of default by the project owner.
