Subsection 1: Non-profit-making associations and recognised public interest foundations authorised to make certain loans.

The authorisation referred to in 5° of Article L. 511-6 is issued by the Autorité de contrôle prudentiel et de résolution in accordance with the provisions of this sub-section.

I. – Applications for authorisation are made to the Autorité de contrôle prudentiel et de résolution. A receipt will be issued upon receipt of all the documents required to examine the application. The application for authorisation specifies the purpose of the loans, depending on whether they are for the creation and development of businesses or for the implementation of social integration projects by individuals. The Autorité de contrôle prudentiel et…

Associations and foundations applying for authorisation must meet the following conditions: 1° At least eighteen months’ experience in supporting projects financed by loans from their own resources or by bank loans; 2° Processing a minimum number of applications per year, as set by order of the Minister for the Economy; 3° The required competence assessed by the Autorité de contrôle prudentiel et de résolution in the light, in particular, of…

Authorised associations and foundations are subject to the following obligations: 1° Include in their objects lending for the creation and development of businesses and lending for the implementation of social integration projects by individuals, in accordance with the authorisation given to them pursuant to article R. 518-58; 2° Set up an internal control system for their lending activities, which must include rules for selecting and monitoring risks, separation of decision-making…

The lending operations carried out by associations and foundations under the authorisation granted pursuant to article R. 518-58 meet the following criteria: 1° Loans are made against payment ; 2° Loans may not be granted to companies with more than three employees; 3° Loans intended to help finance social integration projects are granted to individuals facing financial difficulties whose ability to repay the loans is deemed sufficient by the associations…

Provisions must be made for outstanding disputed or doubtful loans to the extent of probable losses. The fraction of outstanding loans not covered by provisions that is not covered by the guarantees mentioned in article R. 518-61 must give rise to the constitution of a reserve fund. The Autorité de contrôle prudentiel et de résolution determines the rate applicable to this fraction for each association or foundation, in accordance with…