Subsection 3: Use of funds

The capital, the reserve funds and the guarantee fund are allocated to guarantee the sureties given by the company in such a way as to serve as a provision for bills, notes and commitments, in the absence of settlement. Before beginning to give any guarantees, the directors are required to state, in a declaration filed in duplicate at the clerk’s office of the judicial court of the company’s registered office,…

The Articles of Association determine the levies and commissions charged to the company on its transactions. A reserve fund known as the “legal reserve”, equal to half the share capital, is set up in accordance with the provisions of the first paragraph of Article L. 232-10 of the French Commercial Code. Subject to the possibility of paying interest on the capital actually paid in, as determined by the Articles of…