Chapter III: Appropriations

Medium-term advances granted by a credit institution and at least part of which is subject to a rediscount agreement with the issuing institution may give rise to the signature by the borrower of contracts setting out the amount of the advances and the conditions for their use and amortisation, as well as, where applicable, the signature of bills with different maturities.

When credit institutions that have granted the advances referred to in article L. 313-36 issue securities intended to be used as collateral for all or part of these advances, the holders of these securities benefit from the rights listed in article L. 313-38, provided that the contracts or bills have been made available to the rediscounting organisation, in accordance with the agreements entered into between the latter and the lending…

Holders of securities created by credit institutions benefit from the rights provided for in articles L. 511-8 to L. 511-14 of the French Commercial Code relating to endorsement. Their right relates to all claims arising in favour of the credit institution as a result of contracts entered into or bills subscribed to in order to realise the advances; it also relates to all interest and ancillary costs as well as…

The contracts provided for in article L. 313-36, which benefit from the same exchange rate advantages as the bills they replace, may not be opposed.

From the time the contracts or bills are made available to the rediscounting institution and for the duration of the rediscounting period, the credit institution holding the receivables referred to in Article L. 313-38 may not, unless otherwise stipulated in the agreements provided for in Article L. 313-37, transfer these receivables in any form whatsoever.

Contracts or bills representing advances must refer to articles L. 313-36 to L. 313-41 , as must mortgage-backed securities, failing which the bearer will be deprived of the right referred to in article L. 313-38.