French Monetary and Financial Code
In forceI. - In application of 2° of I of article L. 753-9, the variable interest rates on loans taken out by the bodies mentioned in this article with credit institutions are indexed or vary according to the following indices only:
1° A standard interbank market rate for the euro zone or for loans issued by a Member State of the European Union whose currency is the euro;
2° The general consumer price index or the rental income index drawn up by the Institut de la statistique de la Polynésie française;
3° The interest rate on passbook savings accounts as defined in article L. 221-1.
II. - The indexation formula for variable interest rates on loans taken out with credit institutions by the above-mentioned bodies guarantees that the interest rate payable complies with at least one of the characteristics set out below:
1° At each maturity date, the interest rate is defined either as a fixed rate or as the sum of an index mentioned in I and a fixed margin expressed in percentage points;
2° During the life of the loan, the interest rate may not exceed twice the lowest rate recorded in the first three years of the life of the loan.
III. - The resolution of the administrative and management body of one of the bodies referred to in article L. 753-9 relating to the subscription of a loan, mentions the essential characteristics of the contract, including the amount and maturity of the loan, the amortisation schedule, the underlying indices, the indexation formula and the contractual conditions for early repayment.
The management report or the activity report of these bodies includes specific details of the loans taken out during the previous financial year.
Article R753-14
French Monetary and Financial CodeIn force
Updated 5 Nov 2023
