Section 3: Assumption of commissions payable by beneficiaries of loan guarantees (R)

The assumption of responsibility, pursuant to Article L. 1511-3, by one or more local authorities or their groupings, of the fees payable by the beneficiaries of loan guarantees granted by one or more credit institutions or by one or more finance companies takes place under agreements entered into by local authorities or their groupings with lenders, credit institutions or finance companies acting as guarantors. These agreements define: 1° The nature…

The maximum rate at which local authorities or their groupings may bear the commission or commissions relating to a single loan is set by order of the Minister for the Economy and Finance.

The deliberative assemblies of the local authorities or their groupings determine each year the maximum amount of expenditure that may be incurred under the third paragraph of article L. 1511-3.

For a single loan, payments corresponding to the commission or commissions assumed by a local authority or grouping must be made in a single instalment to the lenders, credit institutions or finance companies acting as guarantors. .

In all cases, the lender must inform the borrower, before the loan agreement is signed, of the terms and conditions of the involvement of the local authorities or their groupings and in particular those provided for in the agreements referred to in Article R. 1511-24.

The provisions of articles R. 1511-24, R. 1511-25 and R. 1511-28 are not applicable to the assumption of fees payable by beneficiaries of loan guarantees contracted to carry out the operations provided for in article L. 2252-2, in article L. 3231-4-1 and article L. 4253-2.