Section 1: Operations.

The municipal credit banks may grant any natural person loans against pledges of tangible movable property, likely to be of appreciable value and in a good state of preservation. These assets are deposited in their shops and appraised beforehand by appraisers. Each cashier’s office will first check the identity and address of the applicant, who will be required to produce an official document bearing a photograph. The characteristics and references…

The valuation of items pledged by borrowers is carried out by judicial auctioneers, who are appointed for a renewable term of three years by the director of each municipal credit union. Before making this appointment, or terminating the duties of a judicial auctioneer or a person authorised to carry out valuations, the Director shall seek the opinion of the Caisse’s Guidance and Supervisory Board. He shall also seek the opinion…

Appraisers are liable to the Caisse for the consequences of their appraisals. Consequently, if an item is not released or the pledge is not renewed, it is sold and the proceeds of the sale are not sufficient to reimburse the Caisse for the sums it has lent on the basis of these valuations and for what is owed to it, both in respect of the interest for the duration of…

Within the limits set out in Article D. 514-8, the institution may grant a loan for an amount greater than that guaranteed by the judicial auctioneers. If the pledged property is sold at a price lower than the amount of the loan granted but higher than the amount guaranteed by the judicial auctioneers, the resulting financial loss shall be borne by the institution.

The remuneration of appraisers is set by the Guidance and Supervisory Board. It may not exceed 0.50% of the amount of loans granted or renewed on the basis of the appraisal of pledged assets.

Appraisers must write the amount of their estimate and the amount of the loan to be granted by the institution in full on the appraisal form and sign it.

The Guidance and Supervisory Board determines the duration of the loans. This may not exceed two years, including the extension of loans. However, borrowers have the option of releasing their property before the end of the loan term, or requesting renewal of their commitment at the end of the loan term. Agreement to this renewal is subject to the payment of accrued interest and duties and the repayment of the…

The amount of the loans, where they are secured by platinum, gold or silver goods, may not exceed four-fifths of their estimated value by weight. For other goods, this amount may not exceed two thirds of their estimated value.

I. – Pursuant to article L. 312-3 of the French Consumer Code, municipal credit banks that grant a loan against tangible collateral must provide the borrower with information concerning : 1° The identity and geographical address of the lender ; 2° The type of loan 3° The type of goods that may be pledged; 4° How the appraisers will assess the appreciable value of the asset; 5° The total amount…

I. – Any person pledging items must sign the deed recording the pledge of these items. This deed shall be drawn up in writing or on another durable medium. II. – The deed formalising the agreement of the borrower and the cashier to the loan shall be drawn up in type no smaller than eight-point type. It must state the following information clearly and legibly: 1° The identity and geographical…