Paragraph 3: Mobilisation of mortgage and similar claims

The provisions of this paragraph apply to promissory notes issued by credit institutions or finance companies to raise long-term receivables intended to finance a property located in France or in the other States of the European Economic Area and guaranteed: by a first-ranking mortgage or a real estate surety providing a guarantee that is at least equivalent; -or by a guarantee given by a credit institution, finance company or insurance…

The lending institution must make available to the holder of the promissory note, at the latter’s request, the contracts constituting these claims with their guarantees, any amendments to these contracts that may have been made to provide the lender with additional guarantees and the bills signed by the borrower to ensure compliance with his obligations, if such bills exist, in a principal amount equal to the principal amount of the…

I. – Unless Article L. 313-46 applies, the lender shall recover free disposal of the claims referred to in Article L. 313-43 as and when they fall due or are repaid, or on its own initiative. For as long as the promissory note remains in circulation, it is obliged to replace without interruption the contracts and bills for which it recovers free disposal by an equal principal amount of other…

The making available of receivables or bills to the bearer of the promissory note entails, without further formality, the creation of a pledge in favour of successive bearers. The pledge thus created benefits from the provisions of articles L. 211-38 to L. 211-40. The right of the bearer of the promissory note is exercised over all claims arising in favour of the lending institution as a result of contracts and…

If the holder of the promissory note fails to pay either the amount of the promissory note or the amount of the interest attached to the promissory note on the due date, and independently of any recourse he may have against the lending institution, the holder of the promissory note shall obtain, at his request and against return of the promissory note, delivery of the list of names provided for…

For the cancellation of registrations, no documentary evidence is required in support of the statements in the deed of release establishing that there has been a release or transfer of ownership if the said statements are certified as accurate in that deed. The beneficiaries of the release or transfer of ownership are not considered interested parties, within the meaning of article 2435 of the Civil Code, if the act of…

To guarantee payment on maturity of either the amount of the promissory note referred to in article L. 313-42 or the interest attached to this note, the holder of this note may ask the lending institution to make available to him contracts constituting long-term receivables, with their guarantees, in addition to those already made available under article L. 313-43, for an agreed amount, provided that these contracts can give rise…

The Autorité de contrôle prudentiel et de résolution is responsible for ensuring that credit institutions and finance companies comply with the provisions of articles L. 313-42 to L. 313-48.

A decree of the Conseil d’Etat shall determine the conditions under which this sub-section shall apply to finance companies.