Section 4: Guarantee for sureties

I. – A surety guarantee mechanism is hereby set up to honour, in the event of default by a credit institution or finance company, the surety undertakings required by law or regulation and given by that institution or company to natural or legal persons governed by private law. Credit institutions or finance companies authorised in France to issue such guarantees adhere to this mechanism. II. – The Deposit Guarantee and…

A representative of the members of the surety guarantee mechanism who are not credit institutions participates with voting rights in the Supervisory Board of the Deposit Guarantee and Resolution Fund, except when the latter takes decisions concerning the deposit guarantee or the investor guarantee. It is elected by these members, each of whom has a number of votes proportional to the outstanding guarantee commitments covered by the guarantee. It is…

The Autorité de contrôle prudentiel et de résolution shall determine the method for calculating contributions to the surety guarantee mechanism. These contributions are based on the total guarantee commitments covered by the guarantee. This base takes into account the risk profile of member institutions or companies. The AMF also sets the conditions under which these contributions may be refunded in the event of a downward variation in the base defined…

An order of the Minister for the Economy specifies the terms, deadlines and maximum amount of compensation. In accordance with the terms and conditions laid down in Article L. 313-50 and this Article, the guarantee mechanism shall retroactively assume the guarantee commitments required by a legislative or regulatory text granted by any credit institution or finance company that has been the subject of safeguard or receivership proceedings initiated after 1…