Paragraph 2: Securities lending

The provisions of article L. 211-24 are applicable to loans of financial securities that meet the following conditions: 1. The loan relates to financial securities; 2. The loan relates to financial securities which are not likely to be the subject, during the term of the loan, of the detachment of a right to a dividend or the payment of interest subject to the withholding tax provided for in 1° ofarticle…

The rules governing remuneration paid for loans of financial securities are set out in article 38 bis, section 2 of the General Tax Code.

When financial securities are loaned by a company, they are deducted in priority from securities of the same type acquired or subscribed to on the most recent date.

When the borrower disposes of financial securities, priority is given to withdrawing them from the securities of the same type borrowed on the earliest date. Subsequent purchases of securities of the same type are allocated on a priority basis to replace the securities borrowed.