Subsection 4: Loans, profit participation certificates and mutualist certificates.

Mutual insurance companies may only borrow to finance the development of insurance activities or to strengthen their solvency margin, in the case of undertakings referred to in Article L. 310-3-2, or their eligible own funds, in the case of undertakings referred to in Article L. 310-3-1, and in accordance with the terms and conditions defined by Articles R. 322-78 to R. 322-80-1, subject to the provisions of Article R. 322-105.

All prospectuses, posters, circulars, notices, advertisements or any other documents relating to company loans must explicitly state that a lien has been established for the benefit of policyholders under article L. 327-2 and indicate that the lender, even if insured, does not benefit from any lien for the interest and repayment of the loan. This information must also be clearly shown on the loan documents. Each year, the company’s expenses…

I. – Any issue of bonds, participating securities or subordinated securities under the conditions and within the limits provided for in article L. 322-2-1 and any issue of mutualist certificates under the conditions provided for in article L. 322-26-8 must be authorised by the general meeting deliberating as described in article R. 322-63 and be the subject of a special resolution, the content of which is submitted in advance for…

Any loan intended to supply the establishment fund provided for in article R. 322-44 or, except in the case provided for in article R. 322-79, to finance the development of insurance operations and new production must be authorised in advance by the general meeting deliberating as provided for in article R. 322-65.

Except in the case provided for in article R. 322-79, any loan intended for the constitution and, where applicable, the replenishment of the supplementary social fund must be authorised by the general meeting deliberating as provided for in article R. 322-63 and be the subject of a special resolution, the content of which must first be submitted for the approval of the Autorité de contrôle prudentiel et de résolution, which…

The maximum proportion of the profits of the last financial year and previous financial years that may be allocated annually to the remuneration of mutualist certificates is equal to 10% of the sum of the profits of the last three financial years. However, if by application of the rule set out above, mutualist certificates cannot be remunerated even though the profit for the last financial year is positive, the maximum…