Title I: Financial instruments

An undertaking for collective real estate investment may take out loans up to a limit of 40% of the value of the real estate assets mentioned in 1° to 3° and 5° of I of article L. 214-36. To determine this limit, account is taken of all loans and debts taken out by the undertaking for collective real estate investment, by the companies mentioned in 2° and 3° of the…

An undertaking for collective real estate investment may borrow cash up to a limit of 10% of the value of its assets other than those mentioned in article L. 214-39. The conditions for application of the limit mentioned in the previous paragraph are set by decree in the Conseil d’Etat.

Subject to the limits and conditions laid down by a decree of the Conseil d’Etat, an undertaking for collective investment in real estate may grant, over its assets, the guarantees necessary for the conclusion of contracts relating to its activity, in particular those relating to the implementation of the loans mentioned in articles L. 214-39 and L. 214-40 and those mentioned in article L. 214-38.

Subject to the limits and conditions laid down by decree of the Conseil d’Etat, a real estate investment trust may grant current account advances to the companies mentioned in 2° and 3° of I of article L. 214-36 in which it directly or indirectly holds at least 5% of the share capital.

The risk spreading and capping rules and the quotas referred to in articles L. 214-36 and L. 214-37 respectively must be complied with no later than three years after the date on which the undertaking for collective investment in transferable securities is set up, under the conditions defined by the general regulations of the Autorité des marchés financiers. A decree of the Conseil d’Etat shall determine the thresholds, cases and…

Under the conditions and in accordance with the procedures laid down by the general regulations of the Autorité des marchés financiers, any unitholder or shareholder shall inform the person mentioned in the information document provided for in III of article L. 214-35 as soon as it crosses the threshold of 10% of the units or shares of the undertaking for collective real estate investment. Article L. 214-24-46 applies to AIFs…

When a unitholder or shareholder who holds more than 20% but less than 99% of the units or shares of an undertaking for collective investment in transferable securities requests the redemption of units or shares, such redemption may be temporarily suspended under the conditions laid down in the General Regulations of the Autorité des marchés financiers if it exceeds a percentage of the number of units or shares of the…

Creditors whose title arises from any transaction relating to the assets of an undertaking for collective investment in real estate can only take action against these assets, with the exception of the assets mentioned in 2° of article L. 214-37. Creditors of the depositary may not pursue payment of their claims against the assets of an undertaking for collective investment in real estate held by it.

The minimum net asset value of an undertaking for collective real estate investment, as defined by the general regulations of the Autorité des marchés financiers, is set by decree. If this obligation is not met within three years of the date on which the real estate collective investment undertaking was set up, it will be dissolved and the unitholders or shareholders will be reimbursed for their rights in the fund…

The General Regulations of the Autorité des marchés financiers set out the conditions for the issue, subscription, transfer and redemption of units or shares issued by property investment funds.