Chapter VI: Universal guarantee fund for rental risks

Transactions relating, on the one hand, to compensation paid to insurance companies pursuant to the first paragraph of IV of article L. 313-20 of the Code de la construction et de l’habitation and, on the other hand, to rent and service charge guarantees for the benefit of lessors, mentioned in the second paragraph of the same IV, who do not take out insurance contracts against the risk of unpaid rent,…

The Fonds de Garantie Universelle des Risques Locatifs must at all times be in a position to settle its commitments in full to, on the one hand, insurance companies offering insurance policies against the risk of unpaid rent that comply with the specifications mentioned in g of article L. 313-3 of the Code de la construction et de l’habitation and, on the other hand, the lessors mentioned in the second…

I.-The technical provisions mentioned in 2°, 2° bis and 4° of article R. 331-6 are constituted within the universal guarantee fund for rental risks. These provisions must be sufficient to ensure full settlement of the commitments mentioned in article R. 426-2. II – With regard to the section of the guarantee fund relating to compensation, the provisions take particular account of : 1° The number of dwellings and the amount…

The Union des entreprises et des salariés pour le logement must at all times be able to justify the valuation of the provisions referred to in article R. 426-3. These provisions are valued each year on behalf of the Union by an actuary who is a member of an association of actuaries recognised by the Autorité de Contrôle Prudentiel et de Résolution, who verifies that the provisions have been established…

The provisions mentioned in article R. 426-3 must, at all times, be represented by equivalent assets located within the territory of a Member State of the European Community or another State party to the Agreement on the European Economic Area. The assets accepted to represent the commitments of the fonds de garantie universelle des risques locatifs are as follows: 1° Bonds and other securities issued or guaranteed by a Member…

When it finds that the value of the assets mentioned in article R. 426-5 of the universal guarantee fund for rental risks is less than the provisions, the Union des entreprises et des salariés pour le logement will make exceptional payments to this fund within a maximum period of three months.

The assets of the fonds de garantie universelle des risques locatifs, with the exception of those mentioned in 4° of article R. 426-5, are either held in an account with an approved credit institution in a Member State of the European Community or in another State party to the Agreement on the European Economic Area, or registered by name in the accounts of the issuing body. Income or proceeds from…

In the event of liquidation of the first section of the guarantee fund relating to compensation, and after deduction of the residual commitments of the Union des entreprises et des salariés pour le logement, the amount of the balance, including the financial income on the sums contributed to the fund, of the accounts of the Union des entreprises et des salariés pour le logement, the State, the insurance companies participating…

The Autorité de contrôle prudentiel et de résolution shall carry out documentary and on-site inspections of the operations carried out by the Fonds de garantie universelle des risques locatifs. The Union des entreprises et des salariés pour le logement shall provide it, at its request, with any financial, accounting or statistical information relating to the operations mentioned in article R. 426-1. The supervisory authority sends its reports to the Union…

When the Autorité de contrôle prudentiel et de résolution considers that the rights of insurance undertakings are threatened by the insufficient quality of the assets mobilised pursuant to Article R. 426-5 or their insufficient adequacy to the liquidity needs of the fund, it may, after having given the Union des entreprises et des salariés pour le logement the opportunity to make its observations, limit the commitments authorised under 6° of…