Chapter II: Mutual and cooperative banks.

A discount committee is set up at the local mutual banks and regional mutual banks. This committee, made up of at least two members, including a director specially delegated for this purpose, is responsible for examining loan applications. The committee’s decisions are recorded in a special register.

Directors receive a fixed salary approved by the central body of Crédit Agricole, excluding any percentage of profits or operations. Exceptional bonuses may be granted each year by the Board of Directors, subject to approval by Crédit Agricole’s central body.

Each year, after deducting charges and general expenses, paying interest on loans and deposits, setting aside reserves for the depreciation of fixed assets, setting aside sufficient provisions to meet the risks of losses that the caisses de crédit agricole mutuel may have to bear, and paying interest on shares in the share capital, at least three-quarters of the surplus income is allocated to setting up a reserve fund. The balance…

Deposits of funds with a maximum maturity of two years received by the regional or local mutual agricultural credit banks benefiting from advances from the central body of Crédit Agricole must be used exclusively for short-term credit transactions. Caisses de crédit agricole mutuel that fail to comply with this requirement may not receive new advances from the central body of Crédit Agricole for medium-term loans or individual and group long-term…

Bonds issued by the Caisses de Crédit Agricole Mutuel with a maximum maturity of two years must be used in short-term credit transactions in accordance with the provisions of the first and second paragraphs of article R. 512-12. Bonds maturing in more than two years may be used in accordance with the provisions of the third paragraph of article R. 512-12.