Subsection 2: Mobilisation of loans by the assignee or the pledgee

A credit institution or finance company that assigns or pledges business receivables under the conditions set out in article L. 313-23 may, at any time, issue securities intended for the use of all or part of the loans granted. Successive holders of these securities benefit from the rights listed in articles L. 313-31 to L. 313-33 on condition that the forms have been made available to the organisation providing the…

Short-term credit transactions that have not resulted in the assignment or pledging of business receivables to the lending credit institution or finance company may give rise to the issue by the latter of securities intended to mobilise all or part of the credit granted. Successive holders of these securities benefit from the rights listed in articles L. 313-32 and L. 313-33 on condition that the forms recording these loans have…

Successive holders of securities created by a credit institution or finance company pursuant to Articles L. 313-30 and L. 313-31 benefit from the rights provided for in respect of endorsement by Articles L. 511-8 to L. 511-14 of the French Commercial Code.

The rights attached to the mortgage notes relate to all the receivables designated on the notes; they also relate to all interest and ancillary costs, as well as to the collateral securing these receivables.

As from the date on which the deposit slips are made available to the financing institution and for the duration of that period, the credit institution or finance company may not, unless otherwise stipulated, transfer the receivables represented by the deposit slips in any form whatsoever.

A Conseil d’Etat decree sets out the terms and conditions for the application of articles L. 313-23 to L. 313-34.