Paragraph 2: Insurance and surety bonds.

The guarantee provided for in 3° of Article L. 321-6 may only be granted by one of the credit institutions or finance companies authorised for this purpose or one of the institutions or establishments mentioned in article L. 518-1 of the Monetary and Financial Code, an insurance company or a mutual guarantee company, authorised to give guarantees.

The guarantee is the result of a written agreement which, in addition to the general terms and conditions, specifies the amount of the guarantee granted, the terms of remuneration, the accounting control procedures and any counter-guarantees required by the guarantor.

The guarantor or insurer shall issue the operator of voluntary sales of furniture by public auction with a guarantee or insurance certificate specifying the name of the credit institution with which the account provided for in 1° of Article L. 321-6, as well as the number of this account, the amount and duration of the guarantee granted and any restrictions placed on it.

The guarantor or the insurer shall only be liable if it is proven that the claim is certain, liquid and due and that the guaranteed operator has defaulted. The guarantor may not set up the benefit of discussion against the creditor. For the guarantor, the default of the guaranteed operator results from a summons to pay or to return followed by refusal or remaining unfruitful one month after it was…

The amount of the guarantee granted to an operator may not be less than the higher of the following two sums: 1° The average monthly sales figure, including taxes and net of fees, achieved by the operator during the previous financial year; 2° Half the maximum amount of funds held by the operator on behalf of third parties at any time during the previous twelve months.

When an operator of voluntary sales of furniture by public auction has been in business for less than one year, the amount of the guarantee may not be less than the average forecast amount of monthly sales, including taxes and net of fees, for the current financial year. This forecast amount shall be declared by the operator to the insurer or surety company.

Any operator of voluntary sales of furniture by public auction shall adjust the amount of cover it has taken out each year. It also revises this amount when particular circumstances are likely to modify the extent of the risk.

Insurance contracts must not provide for an excess payable by the insured of more than 10% of the compensation due, up to a limit of €8,000 per creditor. The excess is not enforceable against the operator’s creditors.