Paragraph 3: Guarantee undertaking

Financial guarantees may only be given by mutual guarantee companies whose sole purpose is to guarantee the claims defined in article R. 7123-20.

The guarantee provided for in article L. 7123-20 may only be given by a collective guarantee body, an insurance company, a bank or a financial institution authorised to give guarantees where this body, company, bank or institution may legally carry on its business in France.

The guarantee commitment is the subject of a written contract specifying the conditions and the amount of the guarantee granted as well as the terms and conditions of the accounting control that the guarantor may exercise over the modelling agency. This contract shall mention the waiver by the guarantor, in the event of default by the modelling agency, of the benefit of discussion provided for in articles 2305 and 2305-1…

When a modelling agency’s guarantee commitment comes to an end, the agency may continue its activity only if it has obtained, under the conditions provided for in articles R. 7123-26 to R. 7123-28, another guarantee commitment, so that payment of the debts defined in article R. 7123-20 is guaranteed without interruption.