TITLE II: Guarantees.

The operator of an establishment used as a warehouse where industrialists, traders, farmers or craftsmen deposit raw materials, goods, commodities or manufactured products, may only issue negotiable pledge notes or storage receipts and classify his establishment as a general shop if he has obtained approval from the prefect.

Reasons shall be given for the prefectoral order ruling on the application for approval.

The transfer of a general shop is subject to the approval of the prefect, given in the same forms.

Any cessation of operation not followed by a transfer is subject to six months’ notice being given by the operator to the prefect. On expiry of this period, and if the general interests of the business so require, a provisional administrator may be appointed by the president of the judicial court ruling, on application or in summary proceedings, at the request of the public prosecutor.

Operators of general shops are prohibited from engaging, either directly or indirectly, whether on their own account or on behalf of others, as commission agents or in any other capacity, in any trade or speculation involving the goods for which they are authorised to issue warehouse receipts.

Companies operating general shops, with the exception of those issuing storage receipts, are deemed to fall within the scope of article L. 522-5 if one of their members, owning more than 10% of the share capital, engages in an activity incompatible with the provisions of the said article. .

Any operating company which, as a result of a change in the distribution of capital among the members, no longer meets the conditions required by article L. 522-6 must, within one month of this change, apply to maintain the authorisation of which it is the beneficiary. The authorisation remains valid until the prefect has made a decision by order. The prefect may either decide to maintain the authorisation under the…

Where the opening of an establishment is subject to the intervention of a ministerial decree or order, approval of that establishment as a general shop is granted by that decree or order.

Operators of approved establishments are not required to apply for authorisation under texts regulating the creation, extension or transfer of establishments.

Decrees or orders approving establishments as general shops may include authorisation for the operator to open a public sales room for wholesale goods.