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Section 4: Common rules applicable to transactions in financial instruments

Article L211-36 of the French Monetary and Financial Code

I. – The provisions of this paragraph apply to 1° To financial obligations arising from transactions in financial instruments or in units mentioned in article L. 229-7 of the Environment Code, spot foreign exchange transactions or transactions for the sale, purchase or delivery of gold, silver, platinum, palladium or other precious metals or to goods represented by a storage receipt mentioned in article L. 522-37-1 of the French Commercial Code,…

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Article L211-36-1 of the French Monetary and Financial Code

I. – The agreements relating to the financial obligations mentioned in article L. 211-36 may be terminated, and the debts and receivables relating thereto may be set off between all the parties. The parties may provide for the establishment of a single balance, whether these financial obligations are governed by one or more agreements or framework agreements. II. – The procedures for terminating, assessing and offsetting the transactions and obligations…

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Article L211-37 of the French Monetary and Financial Code

The assignment of receivables relating to the financial obligations referred to in article L. 211-36 may be relied on as against third parties upon notification of the assignment to the debtor. The assignment of contracts relating to the financial obligations referred to in article L. 211-36 may be relied on as against third parties by virtue of the written agreement of the parties.

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Article L211-38 of the French Monetary and Financial Code

I. – As security for the present or future financial obligations referred to in article L. 211-36, the parties may provide for the delivery in full ownership, enforceable against third parties without formalities, of financial instruments, goods represented by a warehouse receipt, bills, debts, contracts or sums of money, or the creation of securities on such goods or rights, can be realised, even when one of the parties is the…

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Article L211-38-1 of the French Monetary and Financial Code

No creditor of the beneficiary other than the provider of the financial collateral referred to in Article L. 211-38 and provided as initial margin pursuant to Article 11 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on over-the-counter derivatives, central counterparties and trade repositories may claim any right whatsoever over the assets or rights to which such collateral relates, even on…

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Article L211-39 of the French Monetary and Financial Code

The rights or obligations of the collateral provider, the beneficiary or any third party in respect of the collateral referred to in I of article L. 211-38 relating to financial securities are determined by the law of the State in which the account in which the securities are delivered or provided as collateral is located.

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Article L211-40 of the French Monetary and Financial Code

The provisions of Book VI of the Commercial Code, or those governing any equivalent judicial or amicable proceedings initiated on the basis of foreign law, shall not prevent the application of the provisions of this section. Article 1343-2 of the Civil Code shall not prevent the capitalisation of interest due pursuant to an agreement or framework agreement referred to in Article L. 211-36-1 of this Code.

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