Chapter II: Crisis prevention and management measures

I.-The resolution college may, after having determined that the transfer procedure referred to in 3° of Article L. 311-30 has failed, decide to set up a bridge institution. The latter is responsible for receiving, on a temporary basis, in one or more instalments, with a view to transferring all or part of the commitments and assets of a person subject to a resolution procedure, in compliance with competition rules, under…

The decision of the college of resolution ordering the transfer of the portfolio of insurance contracts, operations or subscription forms for contracts or regulations to a bridge institution is published in the Journal officiel. This decision releases the person subject to the resolution procedure from all commitments to policyholders, subscribers, participating members, members, employers and subscribing legal entities in respect of the contracts and regulations transferred.

For the duration of the resolution procedure, any asset or liability acquired by the bridge institution may be returned to its original owner, without the latter being able to object, or transferred to a third party. This new transfer may only be decided by the college of resolution if it was expressly provided for in the initial transfer deed. Article L. 311-24 applies to decisions relating to the retrocessions and…

Upon decision of the College of Resolution, the bridge institution is deemed to constitute a continuation of the person subject to a resolution procedure. This institution shall continue to exercise any right previously held by this person over the property, rights or obligations transferred, without prejudice to the provisions of Article L. 311-22. Notwithstanding any provision or stipulation to the contrary, contracts transferred to the bridge institution shall continue ipso…

The collège de résolution shall withdraw the authorisation of the bridge institution no later than two years after the last transfer made pursuant to II of Article L. 311-35. The collège de résolution may decide to extend this period by a renewable period of one year if circumstances so justify. When the collège de résolution withdraws the authorisation of the bridge institution, the latter is wound up in accordance with…

A decree of the Conseil d’Etat shall specify the conditions of application of this sub-section.