Subsection 5: Provisions relating to the use of a liability management structure

I.-For the persons mentioned in 1°, 2° and 4° to 6° of Article L. 311-1 subject to a resolution procedure, the resolution college may decide to use one or more liability management structures to which all or part of the portfolios of insurance contracts and operations as well as part of its assets are transferred on one or more occasions. These structures are responsible for managing the insurance commitments transferred…

I.-When the resolution college decides to use a liability management structure mentioned in Article L. 311-41, it may: 1° Instruct the person subject to the resolution procedure to submit to it, within a period that it shall determine and which may not be less than one month, a draft trust agreement covering the commitments and assets determined by the resolution college; 2° Instruct the person in resolution, after noting the…

The trustee shall regularly report on the management of the liability management structure to the collège de résolution, in accordance with the procedures defined by the latter. By way of derogation from article 2022 of the French Civil Code, the trust agreement may stipulate that the trustee is not accountable to the settlor for the performance of its duties. In the performance of its duties, the trustee has no obligation…

Each year, the trustee shall value the assets and liabilities of the trust estate in accordance with the provisions of Title IV of Book III and Chapter I of Title V of Book III. The results of these valuations are communicated to the collège de résolution in accordance with the procedures defined by the latter.

The decision of the collège de résolution approving the trust agreement referred to in I of Article L. 311-42 shall be published in the Journal officiel. By way of derogation from article 2018-2 of the French Civil Code, this publication shall render the assignment of the debt resulting from the creation of the trust enforceable against any debtor. This decision releases, for the duration of the trust contract or until…

Unless otherwise decided by the resolution college, the liability management vehicle shall be deemed to be a continuation of the person subject to resolution proceedings in respect of the rights and obligations transferred to it. It shall continue to exercise any right previously held by that person in respect of the property, rights or obligations transferred. Without prejudice to any provision or stipulation to the contrary, contracts transferred to the…

I.-The liability management vehicle referred to in Article L. 311-41 shall be terminated by decision of the Resolution College if one of the following conditions is met: 1° The liability management vehicle has been discharged of all the commitments transferred to it or has fulfilled them; 2° The liability management vehicle no longer has any assets; 3° Safeguard, receivership or compulsory liquidation proceedings have been initiated in respect of the…

I.-When the resolution college considers that one of the beneficiary-trustees is in breach of its obligations or that its financial situation has deteriorated significantly and no longer enables it to meet its commitments in respect of the trust assets transferred to it, it may : 1° Enjoin the beneficiary-trustee concerned to submit to it, within a period which it shall determine and which may not be less than four months,…

A decree of the Conseil d’Etat shall specify the conditions of application of this sub-section.