Sub-paragraph 1: General scheme.

Equity loans are recorded on a specific line of the balance sheet of the organisation granting them and of the company receiving them, which also mentions them in the notes provided for in article L. 123-12 of the French Commercial Code. For the purposes of assessing the financial position of the companies receiving them, they are treated as equity capital.

In the event of amicable liquidation, compulsory liquidation or receivership by sale of the debtor company, the equity loans are repaid only after all other preferential or unsecured creditors have been paid in full. In the absence of contractual stipulations to the contrary requiring the overall agreement of all the holders of the participating loans, the latter are placed on the same rank for the purposes of the distributions to…

In the event of the debtor company being wound up by the court as a going concern, repayment of the equity loans and payment of the remuneration provided for are suspended for the duration of the execution of the safeguard or receivership plans.

Without prejudice to articles L. 314-1 to L. 314-9 and L. 341-48 to L. 341-51 of the French Consumer Code, the fixed interest on an equity loan may be increased under the conditions set out in the contract, in particular by means of a clause providing for a share in the borrower’s net profit or in the profit made by the borrower from the use of the assets whose acquisition…