Key Benefits:
President of the Republic,
On the report of the Prime Minister and the Minister of Finance and Public Accounts,
Having regard to the Constitution, including article 38;
Considering the Treaty on the Functioning of the European Union;
Considering Regulation (EC) No. 593/2008 of the European Parliament and the Council of 17 June 2008 on the law applicable to contractual obligations;
Considering Regulation (EU) No 1093/2010 of the European Parliament and Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/78/EC;
Having regard to Regulation (EU) No. 648/2012 of the European Parliament and Council of 4 July 2012 on products derived from rigging, central counterparties and central repositories;
Having regard to Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 concerning prudential requirements for credit institutions and investment companies and amending Regulation (EU) No. 648/2012;
In view of Council Regulation (EU) No. 1024/2013 of 15 October 2013 entrusting the European Central Bank with specific missions relating to prudential supervision policies of credit institutions;
Having regard to Regulation (EU) No. 806/2014 of the European Parliament and Council of 15 July 2014 establishing uniform rules and procedures for the resolution of credit institutions and certain investment companies within the framework of a single resolution mechanism and a single banking resolution fund;
In view of the Commission ' s delegated regulation (EU) 2015/63 of 21 October 2014 supplementing Directive 2014/59/EU of the European Parliament and the Council on ex ante contributions to the financing arrangements for the resolution;
Having regard to Council Implementing Regulation (EU) 2015/81 of 19 December 2014 defining uniform conditions for the application of Regulation (EU) No 806/2014 of the European Parliament and the Council with regard to ex ante contributions to the Single Resolution Fund;
Having regard to Directive 2002/47/EC of the European Parliament and the Council of 6 June 2002 on financial guarantee contracts;
Having regard to Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on financial instrument markets, amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and the Council and repealing Council Directive 93/22/EEC;
Having regard to Directive 2014/49/EU of the European Parliament and the Council of 16 April 2014 on deposit guarantee systems;
Considering Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment companies and amending Council Directive 82/891/EEC as well as the directives of the European Parliament and Council 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU and EU regulations
Vu le Civil code ;
Vu le Trade code ;
Vu le Financial courts code ;
Vu le monetary and financial code ;
Vu le Criminal code ;
Vu le Labour code ;
Vu la Act No. 68-678 of 26 July 1968 amended on the communication of economic, commercial, industrial, financial or technical documents and information to foreign natural or legal persons;
Vu la Act No. 85-695 of 11 July 1985 amended to include various economic and financial provisions, including Article 13;
Vu la Act No. 2008-1443 of 30 December 2008 amended for 2008 including article 120;
Vu la Act No. 2014-1662 of 30 December 2014 bringing various provisions for adapting legislation to the European Union's economic and financial law, including articles 1, 2, and 3;
Having regard to the seizures of the New Caledonia Congress of 19 May and 15 July 2015;
Seen the records of the Assembly of French Polynesia of 19 May and 13 July 2015;
Considering the seizures of the territorial assembly of the Wallis and Futuna Islands on 22 May and 10 July 2015;
In view of the Advisory Committee on Financial Legislation and Regulation of 13 May, 7 and 8 July 2015;
Considering the advice of the National Standards Assessment Board dated 4 June and 23 July 2015;
The State Council (Finance Section) heard;
The Council of Ministers heard,
Order:
Book III of the monetary and financial code is thus amended:
1° The title I, chapter II, section 3, is replaced by the following title:
“Section 3
Deposit and Resolution Guarantee Fund »
2° Section 3 of Chapter II of Title I, is created a sub-section 1 entitled "General Provisions" comprising section L. 312-4, a sub-section 2 entitled "Receiving Mechanism for Deposits and Financing of Resolution" including sections L. 312-4-1 (new) to L. 312-6-1 (new), a sub-section 3 entitled "Resources of the Deposit Guarantee and Resolution Fund" including sections 31-2
3° Section L. 312-4 is replaced by the following provisions:
"Art. L. 312-4.-I.-The credit institutions, the investment companies and the financing companies referred to in the II of Article L. 511-1, approved in France, as well as the holding financial companies and the joint holding financial companies with their headquarters in France, adhere to the deposit and resolution guarantee fund.
"II.-The deposit and resolution guarantee fund is responsible for managing and implementing:
« 1° The deposit guarantee mechanism and the financing mechanism of the resolution under the conditions of this section;
« 2° The bail guarantee mechanism established by Article L. 313-50;
« 3° Investor guarantee mechanisms provided for in Articles L. 322-1 and L. 322-5.
"III.-A la demande des autorités d'un autre Etat partie à l' accord sur l'Espace économique européen chargée de l'administration ou de la gestion d'un système de garantie des dépôts correspondants, le fonds de garantie des dépôts et de résolution peut compniser, pour le compte et selon les instructions de ces autorités, les déposants d'une branch situé en France d'un establishment qui sont couverts par un système de garantie des dépôts.
"IV.-For the implementation of the single resolution mechanism established by Regulation (EU) No. 806/2014 of the European Parliament and the Council of 15 July 2014, the deposit guarantee and resolution guarantee fund mentioned in II is the funds provided within the deposit guarantee system for France. » ;
4° After Article L. 312-4, an article L. 312-4-1 is inserted as follows:
"Art. L. 312-4-1.-I.- Credit institutions accredited in France adhere to the deposit and resolution guarantee fund under the deposit guarantee mechanism.
"The deposit guarantee shall cover, within the limits of a ceiling, the funds left into account with a credit institution and denominated in euros or in the currency of another State, under the following conditions:
« 1° These funds must be returned by the credit institution to their licensee under the applicable legislative, regulatory or contractual provisions;
« 2° These funds do not constitute the pledge or guarantee of an existing commitment made by their licensee to the credit institution.
"The security of deposits also covers amounts related to ongoing payment transactions or transient transactions, for the benefit of a person identified and from normal banking transactions.
"II.-The following account holders may not benefit from the deposit guarantee:
« 1° Credit institutions and investment companies for the deposits they have made on their behalf and on their own account;
« 2° Financing companies defined in Article L. 511-1 II;
« 3° Holding financial companies and parent financing companies defined in Article L. 517-1;
« 4° Electronic currency institutions;
« 5° Payment institutions;
« 6° Insurance and reinsurance companies;
« 7° Collective placement organizations;
« 8° Retirement organizations;
« 9° State, territorial authorities and their institutions or cooperative groups, as well as their foreign counterparts;
« 10° Institutions and services referred to in Article L. 518-1.
"III.-The following funds are excluded from the deposit guarantee, regardless of their licensee:
« 1° Deposits whose existence can only be proved by a financial instrument within the meaning of Article L. 211-1;
« 2° Deposits whose principal is not repayable to the au pair, or is repayable to the au pair only under a specific guarantee or agreement given by the credit institution that receives the deposits in question or by a third party;
« 3° Deposits with the nature of equity;
« 4° Deposits related to transactions for which a final criminal conviction for laundering within the meaning of articles 324-1 et seq. of the Criminal Code was pronounced;
« 5° Anonymous deposits or deposits that the licensee is not identified under articles L. 561-5 et seq.;
« 6° Tradeable debt securities and other receivables issued by the credit institution. » ;
5° Article L. 312-5:
(a) I is replaced by the following:
"I.-The deposit guarantee mechanism is implemented upon request by the prudential and resolution control authority as soon as the Authority finds that a credit institution is no longer in a position to return, immediately or in the near term, the funds referred to in Article I of L. 312-4-1. The intervention of the deposit guarantee and resolution fund under the deposit guarantee mechanism shall result in the cancellation or withdrawal of the registration of that institution and the cancellation of the certificates of associates or associations referred to in Article L. 312-7 that it held; in this case, the amounts corresponding to these certificates remain acquired from the deposit and resolution guarantee fund. The Autorité de contrôle prudentiel et de résolution requests, if any, the European Central Bank to issue the total withdrawal of approval.
"The applicability of the deposit guarantee to the funds referred to in Article L. 312-4-1 is estimated at the date of the finding under the first paragraph. » ;
(b) In II:
- in the first sentence, the words: "the guarantee fund" are replaced by the words: "the deposit guarantee mechanism";
-the words: "refundable deposits or other funds" are replaced by the words: "the funds referred to in Article L. 312-4-1";
- in the second sentence, after the words: "When the guarantee fund" are inserted the words: "depositions and resolution";
(c) II is supplemented by two paragraphs:
"The amounts paid by the deposit and resolution guarantee fund as part of this preventive intervention cannot exceed the amounts it would have paid if it had to intervene with the institution concerned under I.
"These sums, with the exception of those that correspond to capital securities or subordinate receivables, benefit from the privilege referred to in theArticle L. 611-11 of the Commercial Code.
(d) In III:
-the first paragraph shall be replaced by the following:
"The resolution board of the prudential and resolution control authority may also refer to the deposit guarantee fund and the resolution of the situation of a credit institution, an investment company referred to in 2° of section I of section L. 613-34, a holding financial company, a joint holding financial company and a financing company referred to in section II of section L. 613-34, which is the subject of a resolution » ;
- in the second paragraph, the words "Authority" are replaced by the words "The College", and the words "in application of the same article" are deleted;
-the third paragraph is deleted;
- in the fourth paragraph, after the words: "determined by" are inserted the words: "the resolution college of";
- it is supplemented by three paragraphs as follows:
"In this capacity, the Deposit and Resolution Guarantee Fund may participate in the implementation of an internal relief measure of the person referred to in the first paragraph, subject to the conditions and limits set out in sections L. 613-55-1 and L. 613-55-5. The deposit and resolution guarantee fund may not be called under the deposit guarantee mechanism for an amount greater than the losses that the fund would have suffered if the person in question had been subject to judicial liquidation under Book VI of the Commercial Code.
"If the resolution to which the deposit and resolution guarantee fund participates is a group established in several Member States of the European Union, it intervenes in accordance with the provisions of sub-section 11 of section 4 of chapter III of title I of Book VI.
"Except in the case of the application of sections L. 613-55-1 and L. 613-55-5, the amounts paid by the deposit and resolution guarantee fund, with the exception of those that correspond to capital securities or subordinate receivables, are receivables on the recipient institution of the intervention in the same rank as the deposits it guarantees. » ;
(e) The IV is thus amended:
-the 1°, 2°, 3° and 4° are replaced by the following:
« 1° Undertake an increase in capital, acquire all or part of the shares, capital securities, social shares or other property titles of the data subject;
« 2° Subscribing to the capital or to an increase in capital of the establishment-relais or the asset management structure referred to in sections L. 613-13-53 or L. 613-54, acquire all or part of the shares, capital securities, social shares or other property titles of those persons or provide any other contribution;
« 3° Guarantee all or part of the assets or liabilities of the data subject, its subsidiaries, the business establishment or the asset management structure;
« 4° Provide funding to the person concerned, its subsidiaries, the business establishment or the asset management structure, in any form, including in the form of a guarantee";
- after 4°, it is inserted a 5° as follows:
« 5° Acquire assets from the credit institution, the investment company or the financing company concerned; »
- 5° becomes 6°;
- after the sixth preambular paragraph, a subparagraph shall read:
"When, after the implementation of either of the measures taken on the basis of section 4 of chapter III of title I of book VI, the assessment referred to in II of article L. 613-57 reveals that a creditor of the person concerned subject to a resolution procedure, or the security fund for deposits and resolution under the mechanism for guaranteeing deposits, has suffered losses greater than those that it has received » ;
-the seventh preambular paragraph is deleted;
-in the eighth preambular paragraph, the words "same code" are replaced by the words: " Trade code » ;
(f) The V is supplemented by the following:
"Any action against the deposit guarantee and resolution fund in relation to its intervention under this article shall be prescribed by two years from the event that gave rise to this intervention. However, in the event of implementation of I of this article, this period runs from the day the individual was aware of the event in question if he proves that he has ignored it so far.
"The liability of the deposit and resolution guarantee fund under I shall not be incurred against the depositors of the branches of one of its members located in another country of the European Economic Area unless the guarantee fund of the country in which the branch is located acted in accordance with the instructions given by the deposit and resolution guarantee fund. » ;
(g) In VI, the words: "Section L. 613-31-18" are replaced by the words: "The second paragraph of section L. 613-58-1";
6° In the second paragraph of Article L. 312-6, after the words: "The Guarantee Fund" are inserted the words "deposit and resolution";
7° After Article L. 312-6, an article L. 312-6-1 is inserted as follows:
"Art. L. 312-6-1.-When the European Commission takes pursuant to Article 19, paragraph 3, of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 a decision on the compatibility of an appeal to the Single Resolution Fund with the rules of the domestic market, the resolution panel shall ensure that this decision is respected by persons who fall within its jurisdiction.
"When pursuant to Article 19, paragraph 5, of this Regulation, the resolution panel is seized with a request by the European Commission to recover the sums, if any increased interest, that it considers improperly used, it directs the person concerned to return the sums to the deposit and resolution guarantee fund without delay. The Security Council transfers these sums to the Single Resolution Council.
"For the purposes of this article, the Resolution College may request the Supervisory College to use its powers of injunction and administrative police. » ;
8° Section L. 312-7 is replaced by the following provisions:
"Art. L. 312-7.-I.-The members of the deposit and resolution guarantee fund shall provide the financial resources necessary for the performance of his duties referred to in Article L. 312-4, both for the mechanisms of which he is responsible and for his operation.
"These contributions are annual. If necessary, the deposit and resolution guarantee fund may also raise outstanding contributions. Contributions are payable by members to the approved fund or carrying on business as of January 1 of the year for which contributions are called.
"They may be paid by the members by subscribing certificates of partners specific to each mechanism, issued by the deposit and resolution guarantee fund.
"The certificates of associates are nominal and non-negotiable. They confer on their holder only the monetary rights provided for in this article. They are recorded in the equity of the deposit and resolution guarantee fund.
"These certificates are refundable on a nominal basis by a decision of the Fund's Supervisory Board in the event of withdrawal of the member's approval or variation of the plate referred to in section L. 312-8-1. In the event of the withdrawal of the approval of a member by the Prudential and Resolution Authority or by the European Central Bank pursuant to Articles L. 612-39 or L. 612-40, the certificates of associates held by that member may be cancelled by a decision of the sanctions commission. In this case, the amounts paid remain acquired from the deposit and resolution guarantee fund.
"These certificates may be paid at the end of each fiscal year on the deliberation of the fund's supervisory board that determines the amount to be allocated within the limit of the balance for each financial product mechanism and the cost of claims.
"II.- Contributions may also be paid by subscribing certificates of association specific to each mechanism, issued by the deposit and resolution guarantee fund.
"These certificates of association are nominal and non-negotiable.
"They are reimbursable on a nominal basis in the event of withdrawal of the member's approval or variations in the plate referred to in section L. 312-8-1. In the event of the withdrawal of the approval of a member by the Prudential Control and Resolution Authority or the European Central Bank pursuant to articles L. 612-39 or L. 612-40, the certificates of association held by that member may be cancelled by decision of the sanctions commission. In this case, the amounts paid remain acquired from the deposit and resolution guarantee fund.
"The certificates of association shall be paid under conditions established by the supervisory board of the deposit and resolution guarantee fund at the time of the order of accounts.
"III.-In the event of any losses incurred by the fund under one of the mechanisms referred to in II of Article L. 312-4, the losses are applied first on the certificates of associates and then on the certificates of association of the member being the subject of the intervention of the fund or, where applicable, on the proceeds of the certificates cancelled from that member, in the second place For the implementation of the foregoing provisions, the nominal of each of these certificates or their number is then reduced in the proportion necessary to absorb losses.
"IV.-The contributions due by the members of the deposit and resolution guarantee fund affiliated to one of the central bodies referred to in Article L. 511-30 are directly paid to the deposit and resolution guarantee fund by that central body.
"V.-The deposit and resolution guarantee fund may borrow for the purposes of its missions. At his request, his members on his behalf constituted the necessary guarantees for such borrowings.
"VI.-The mechanisms managed by the deposit and resolution guarantee fund pursuant to Article L. 312-4 II are individualized in its accounting.
"The sums recovered by the deposit and resolution guarantee fund as a result of an intervention are allocated to the reserves of the mechanism that has borne it. » ;
9° Section L. 312-8 is replaced by the following provisions:
"Art. L. 312-8.-Any member who fails to pay to the deposit and resolution guarantee fund his or her contribution called or fails to meet his or her obligations to the fund referred to in Article L. 312-15 shall be liable to penalties provided for in Articles L. 612-39 and L. 612-40 and to penalties for delays paid directly to the fund in accordance with the terms defined by the rules of procedure of the fund. » ;
10° After the article L. 312-8, it is inserted two articles as follows:
"Art. L. 312-8-1.-I.-The Autorité de contrôle prudentiel et de résolution establishes the modalities for calculating contributions to the deposit guarantee mechanism. These contributions are based on the amount of each member's guaranteed deposits. This plate takes into account the risk profile of the various members. The Autorité also sets out the conditions for the possible return of these contributions in the event of a change to the decrease of their plate defined above. The Authority also sets the minimum amount due by each member.
"II.-The amount of contributions made to the resolution's funding framework is calculated according to the provisions of the Commission's Delegated Regulation (EU) 2015/63 of 21 October 2014 and the Council's Implementing Regulation (EU) 2015/81 of 19 December 2014.
"Art. L. 312-8-2.-I.-For the purposes of the III of Article L. 312-4, the deposit and resolution guarantee fund may be charged with informing the depositors of the branches mentioned in this III on behalf of the authorities of another State Party to the agreement on the European Economic Area responsible for the administration or management of an equivalent deposit guarantee mechanism.
"It may be consigned to any requests or claims made by the depositors of these branches in order to forward them to these authorities.
"When he intervenes at the request and in accordance with the instructions of the authorities mentioned in the first paragraph to compensate the depositors of a branch located in France of a credit institution covered by the State guarantee fund mentioned in that same paragraph, the liability of the deposit and resolution guarantee fund cannot be incurred vis-à-vis the depositors of that branch. It shall intervene within the limits of the resources transferred to it by the guarantee fund of that State and subject to reimbursement of the costs associated with that intervention.
"II.-The deposit and resolution guarantee fund may indemnify the depositors of a branch of one of its members located in a State Party to the agreement on the European Economic Area through a deposit guarantee system of that State. The deposit and resolution guarantee fund may require the depositor to inform the depositors concerned on his behalf. The State party may also entrust the State party with the burden of receiving any request or claim from such applicants, on behalf of the State party, with a view to forwarding them to the State party.
"The liability of the deposit and resolution guarantee fund may not be incurred against the depositors of a branch of one of its members located in another country of the European Economic Area if the authorities of that State responsible for the administration or management of the equivalent deposit guarantee mechanism of the country in which that branch is located do not act in accordance with the instructions given to them by the guarantee fund.
"III.-In the cases provided for in I and II, the deposit and resolution guarantee fund may communicate with the applicants concerned in a language other than French.
"IV.-For the purposes of I and II, the deposit and resolution guarantee fund may, after the advice of the prudential and resolution control authority, enter into agreements with the authorities or persons responsible for administering a system of guarantee of equivalent deposits of another State Party to the agreement on the European Economic Area. These agreements aim to:
« 1° Carry out, through these authorities or individuals, compensation to the depositors of a branch of a credit institution that adheres to the deposit and resolution guarantee fund where that branch is located in that other State;
"2° Compensation for their account holders of a branch located in France of an establishment pursuant to the III of Article L. 312-4;
« 3° Exchange with them the information necessary for the performance of their respective missions, including information covered by the professional secrecy referred to in Article L. 511-33 provided that such authorities or individuals are themselves subject to confidentiality obligations and that such information may only be used for the purposes for which it has been transmitted;
« 4° Define the modalities of communication with the depositors of the branches located in a State Party to the agreement on the European Economic Area other than that of the guarantee system responsible for their compensation.
"These agreements may also relate to the conditions under which contributions from a credit institution are transferred to the deposit and resolution guarantee fund or to an equivalent system of another State Party to the agreement on the European Economic Area when the activities of that institution are themselves transferred in whole or in part to that State or France and lead that institution to have to adhere to another deposit guarantee system. These agreements may only relate to the transfer of contributions made by this credit institution in the twelve months preceding the transfer of its activity, except for the exceptional contributions referred to in the second paragraph of Article L. 312-7. The amount of contributions transferred shall be calculated on a pro rata basis from the amount of secured deposits transferred.
"The transfer pursuant to the previous subparagraph of contributions to the deposit and resolution guarantee fund shall be effected in full right to the date agreed by the fund and its partner without further formality. Where contributions to be transferred have been paid by the establishment in the form of associate certificates or association certificates, such certificates are previously cancelled or their reduced nominal amount of the amounts to be transferred.
"When the deposit and resolution guarantee fund concludes an agreement with the authorities or persons mentioned in the first paragraph, it informs the Authority of prudential control and resolution, in charge of the Authority to inform the European Banking Authority.
"In the event of a dispute over the application of such an agreement, the deposit and resolution guarantee fund may refer to the European Banking Authority in order to reach a settlement on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
"The lack of agreement does not prejudicial to the rights of the depositors of a branch of an institution adhering to the deposit and resolution guarantee fund located in another State Party to the agreement on the European Economic Area to be compensated by the deposit guarantee and resolution guarantee fund in the event of an intervention under Article I of L. 312-5 with that institution.
"V.-In accordance with Article L. 312-7, the deposit and resolution guarantee fund may borrow from the authorities or persons responsible for administering an equivalent deposit guarantee system of another State Party to the European Economic Area Agreement. He can also give them loans.
"Purpose or loan contracts can only be concluded on the basis of the prudential and resolution review authority.
"VI.-In the same conditions, the deposit and resolution guarantee fund may borrow from other financing mechanisms of the resolution of the States parties to the agreement on the European Economic Area, grant them loans or give them its guarantee. » ;
11° Article L. 312-9 is supplemented by two paragraphs as follows:
"In the course of its missions, the deposit and resolution guarantee fund is not considered to be a holding financial company or a parent company of financing companies and the prohibition set out in the first paragraph of Article L. 511-5 is not applicable to it.
"Reservations of the deposit and resolution guarantee fund are not distributed. » ;
12° Article L. 312-10:
(a) The first two paragraphs constitute an I;
(b) I, as a result of a, is supplemented by four paragraphs as follows:
"The Supervisory Board shall determine by its deliberations the rate or amount of contributions to the members of the Guarantee Fund and the distribution of contributions by their nature, including the share that may take the form of payment commitments. These deliberations are taken on the proposal of the policy and on the advice of the prudential and resolution control authority and, where appropriate, the Autorité des marchés financiers. Contributions to the resolution's funding framework are determined in accordance with Article L. 312-8-1.
"The Supervisory Board renders a notice on the terms and conditions for calculating contributions to the guarantee fund established by the Autorité de contrôle prudentiel et de résolution and the Autorité des marchés financiers.
"When the absence of deliberation referred to in the third paragraph is likely to compromise the State's compliance with its commitments to the European Union, the Autorité de contrôle prudentiel et de résolution enjoined the Supervisory Board to meet with a view to deliberating, within a time frame, on the draft deliberation it has established. In the absence of deliberation or in the event of non-compliant deliberation, the draft deliberation prepared by the Autorité de contrôle prudentiel et de résolution is deemed to be adopted.
"An order by the Minister responsible for the economy specifies the deadlines for the deliberations referred to in the third paragraph and beyond which the notice referred to in the fourth paragraph is deemed to be rendered. » ;
(c) The last three paragraphs are replaced by the following:
"II.-Without prejudice to the provisions of Article L. 322-10, the Supervisory Board shall have twelve members representing the members of the Deposit and Resolution Guarantee Fund and shall be as follows:
“1. Seven members of law representing credit institutions or sets of credit institutions individually or belonging to the same consolidated group or affiliated to the same central body, which are the largest contributors to the deposit guarantee mechanism.
“2. Two representatives elected by other credit institutions adhering to the deposit guarantee mechanism.
“3. Two representatives elected by the members to the securities guarantee mechanism provided for in Article L. 322-1.
“4. A representative elected by the members to the bond guarantee mechanism provided for in Article L. 313-50.
"A censor, appointed by the Minister responsible for the economy, participates without a deliberate vote in the work of the supervisory board. » ;
13° Article L. 312-11 is supplemented by a paragraph as follows:
"By derogation from the first paragraph, the deliberations and advice referred to in the third and fourth subparagraphs of Article I of Article L. 312-10 and the deliberations referred to in the fifth paragraph I of Article L. 312-7 shall be adopted by a simple majority of the members present or represented. » ;
14° Article L. 312-15:
(a) I:
-in the first paragraph, after the words: "detained by its adherents," the words are inserted: "by the Autorité de contrôle prudentiel et de résolution, its supervisory college or its resolution college and who are";
-it is added a paragraph as follows:
"The deposit and resolution guarantee fund cooperates and can exchange information necessary for the exercise of their respective missions with the Autorité de contrôle prudentiel et de résolution, its supervisory college or its resolution college as well as with the authorities of another State party to the agreement on the European Economic Area that are responsible for the administration of an equivalent deposit guarantee system. » ;
(b) II is replaced by the following:
"II.-Where the Supervisory or Resolution College of the Authority considers or is informed that an institution is likely to be the subject of an intervention of the Deposit and Resolution Guarantee Fund pursuant to Article L. 312-5, the competent college shall inform the fund as soon as possible. If the implementation of the II and III of Article L. 312-5 is considered, the Fund shall have access, through the Authority, to all accounting, legal, administrative and financial documents relating to the situation and to the assets and liabilities of the institution that are likely to be the subject of its intervention, including the documents covered by the professional secrecy referred to in Article L. 511-33 as well as to the auditors. » ;
(c) After II, a sub-item reads as follows:
"III.-One or more conventions regulate the relationship, the respective obligations, the modalities for cooperation and exchange of information between the deposit and resolution guarantee fund and the Authority for prudential and resolution control, as well as the conditions under which the fund receives or collects the contributions referred to in Article L. 312-8-1. » ;
(d) The III becomes IV;
15° Section L. 312-16 is replaced by the following provisions:
"Art. L. 312-16.- Orders of the Minister responsible for the economy state:
« 1° The conditions, deadlines and modalities for the implementation of the guarantee provided for in Article L. 312-4-1 and Article L. 312-5;
« 2° The compensation ceiling by the applicant and by the applicant or other beneficiary, as well as the conditions for exceeding this ceiling, on the one hand, upon request of the applicant in the event of temporary exceptional deposits resulting from special circumstances and, on the other hand, pursuant to 6° below;
« 3° The legal characteristics of associate certificates and association certificates as well as any ceilings in which the deposit and resolution guarantee fund may use these certificates;
« 4° The criteria taken into account by the Authority for prudential control and resolution to render the notice provided for in the third paragraph I of Article L. 312-10. These criteria include the minimum amount of financial resources to be disposed of by the deposit and resolution guarantee fund for the performance of the missions referred to in Article L. 312-5, the rules of any kind applicable to contributions made to the fund, as well as the integration of the economic cycle phase and the impact of contributions called on the status of members;
« 5° The conditions and limits in which a portion of the contributions may not be paid to the deposit and resolution guarantee fund subject to the subscription of a payment undertaking and the establishment of appropriate guarantees, including in the form of cash deposits made in the books of the fund;
« 6° The terms and conditions of the deposit and resolution guarantee fund and the calculation of the contribution of the members in the event of the application of the guarantee regime provided by theArticle 120 of Act No. 2008-1443 of 30 December 2008 for 2008;
« 7° The procedures for calculating the votes of the members for the election of the members of the Supervisory Board, the minimum number of votes assigned to a member, the terms and conditions for appointing the members of the Supervisory Board and the duration of their term;
« 8° The conditions under which, under the authority of the resolution college of the Autorité de contrôle prudentiel et de résolution, the deposit and resolution guarantee fund collects and transfers the portion of the contributions mentioned in the II of Article L. 312-8-1 to the Single Resolution Fund established by Regulation (EU) No 806/2014 of the European Parliament and the Council of 15 July 2014;
« 9° The conditions under which the credit establishment branches referred to in I of Article L. 511-10 that do not have protection equivalent to that provided for in this section may adhere to the deposit and resolution guarantee fund;
« 10° The terms and conditions for the application of Article L. 312-4-1, including:
“(a) The conditions under which the person entitled to all or part of the amounts on an account, which is not the nominal holder, may be guaranteed by deposits;
“(b) The terms and conditions for the disposition of the depositors' accounts as well as the imputation on their accounts of the current transactions and payments on the unavailability date;
"(c) The conditions for the exercise of the rights of a creditor, bearing an enforceable title notified to the member who is the subject of the intervention of the guarantee fund, on the amounts due by a person who is the beneficiary of the guarantee;
« 11° The terms and conditions under which the deposit and resolution guarantee fund regularly conducts tests to ensure that it is in a position to comply with the provisions of Article I L. 312-5;
« 12° The conditions under which the deposit and resolution guarantee fund is made pursuant to the III of Article L. 312-4 and concludes the conventions or agreements provided for in Article L. 312-8-2;
« 13° Information provisions, on the one hand, that the deposit and resolution guarantee fund communicates to the public and, on the other hand, that the member institutions communicate:
“(a) To the potential clients of these establishments; This information is in particular related to the deposit and resolution guarantee fund and the terms and conditions of its intervention, as well as to the terms and conditions under which customers acknowledge receipt of this information by means of an integrated type information form, if any, under the applicable general or particular conditions;
“(b) To the holders of a deposit eligible for the guarantee, by means of the account statement issued to them and the standard information form referred to in a to which they are sent at least once a year;
« 14° The conditions under which the deposit and resolution guarantee fund may borrow from deposit guarantee systems or financing mechanisms of the resolution of other States parties to the agreement on the European Economic Area, grant them loans or guarantee their loans;
« 15° The terms and conditions for determining the form, conditions and level of intervention of the deposit and resolution guarantee fund under the resolution financing mechanism for the implementation of the III of Article L. 312-5.
"These orders are taken or amended after notice by the Chairman of the Deposit and Resolution Guarantee Fund. » ;
16° Section L. 312-17 is repealed;
17° Section 4 of Chapter II of Book III title I is supplemented by an article L. 312-21 as follows:
"Art. L. 312-21.-In the event of the implementation of Article L. 312-5, amounts that may be returned to inactive account holders, as defined in Article L. 312-19, shall be deposited by the deposit and resolution guarantee fund to the Caisse des dépôts et consignations on behalf of the holder, without waiting for the expiry of the time limits referred to in Article L. 312-20.
"Before making this deposit, the deposit and resolution guarantee fund shall implement the diligence set out in the last paragraph of Article L. 312-20 on the basis of information held by the credit institution whose deposits have been declared unavailable. » ;
18° Article L. 313-50:
(a) The second sentence of II is replaced by the following sentence:
"If applicable, articles L. 312-5 to L. 312-15, 3°, 4°, 5°, 7° and 9° of Article L. 312-16 and Article L. 312-18 apply to this mechanism, particularly to its financing. » ;
(b) In the second sentence of the III, the words: "the deposit and resolution guarantee fund" are replaced by the words: "the deposit guarantee mechanism";
(c) In IV, after the words: "may also intervene, independently or jointly with", are inserted the words: "the deposit guarantee mechanism managed by";
19° After Article L. 313-50, it is inserted two articles as follows:
"Art. L. 313-50-1.-A representative of the members of the bond guarantee mechanism who are not credit institutions shall participate with a deliberative vote in the deposit and resolution guarantee fund supervisory board, except when the deposit guarantee and resolution fund is in proceedings concerning the deposit guarantee or the investor guarantee.
"He is elected by these members, each of whom has a number of votes proportional to the outstanding bonds covered by the guarantee.
"It is subject to the incapacities set out in Article L. 500-1.
"Art. L. 313-50-2.-The Prudential and Resolution Authority shall determine the terms and conditions for calculating contributions to the bond guarantee mechanism. These contributions are based on the mass of bond commitments covered by the guarantee. This attitude takes into account the risk profile of the institutions or affiliates. The Autorité also sets out the conditions for the possible return of these contributions in the event of a change to the lower plate defined above. The Authority also sets the minimum amount due by each member. » ;
20° Article L. 313-51:
(a) The first paragraph is replaced by the following:
"An order from the Minister responsible for the economy specifies the terms, deadlines and the compensation limit. » ;
(b) The second, third, fourth and fifth paragraphs are repealed;
(c) In the last paragraph, after the words: "in this capacity confer on the guarantee fund", the words "depositions and resolution" are inserted;
21° Article L. 322-1:
(a) In the second sentence, the words: "Fire and Resolution Guarantee Fund established by" are replaced by the words: "1° of II of";
(b) In the third sentence, the reference to Article L. 312-4 is replaced by the reference to Article L. 312-4-1;
22° Article L. 322-2:
(a) In the first paragraph:
-the second sentence is replaced by the following sentence:
"If applicable, articles L. 312-5 to L. 312-15, 3°, 4°, 5°, 7° and 9° of Article L. 312-16 and Article L. 312-18 apply to this mechanism, particularly to its financing. » ;
-in the penultimate sentence, after the words: "The intervention of the guarantee fund" are added the words: "depositions and resolution";
(b) In the second sentence of the second paragraph, after the words: "When the guarantee fund" are inserted the words: "depositions and resolution";
23° Article L. 322-3:
(a) The first paragraph is replaced by the following:
"An order by the Minister responsible for the economy, taken in accordance with the Autorité des marchés financiers, determines the investor compensation limit, the terms and time limits of compensation and the rules relating to customer information. » ;
(b) The second, third, fifth and sixth preambular paragraphs are repealed;
(c) The fourth preambular paragraph is replaced by the following:
"The Autorité de contrôle prudentiel et de résolution jointly agrees with the Autorité des marchés financiers the formula for the distribution of annual contributions due by the establishments referred to in Article L. 322-1 and the minimum amount due by each member. The contribution base consists of the value of deposits and financial instruments that are covered by the guarantee established by section L. 322-1; It is weighted by contributions already made and by financial indicators of the members reflecting the objective risks they face in the fund. This Order also specifies the conditions for possible return in the event of a decline in the plate or risk indicators. » ;
(d) A seventh preambular paragraph added:
"The decrees referred to in 3°, 4° and 5° of Article L. 312-16 applicable to members of the deposit and resolution guarantee fund under the securities guarantee mechanism are taken in accordance with the Autorité des marchés financiers. » ;
24° In the first paragraph of Article L. 322-4:
(a) At the end of the first sentence, the words: "with respect to the guarantee of deposits and resolution" are replaced by the words: "with regard to the mechanisms for guaranteeing deposits and guaranteeing bonds";
(b) The last two sentences are deleted;
25° In the last paragraph of Article L. 322-5, the reference to Article L. 312-4 is replaced by the reference to Article L. 312-4-1;
26° The second sentence of Article L. 322-6 is replaced by the following:
"Articles L. 312-5, L. 312-6, L. 312-8, L. 312-8-1, L. 312-9 to L. 312-15, 3°, 4°, 5°, 7° and 9° of Article L. 312-16 and Article L. 312-18 apply to this mechanism";
27° In Article L. 322-7, the second, third and fourth sentences are replaced by the following:
"Subject to the following provisions, section L. 312-7 applies to this mechanism. » ;
28° In Article L. 322-8, after the two occurrences of the words: "guarantement funds" are inserted the words "deposit and resolution";
29° In article L. 322-9:
(a) The first paragraph is replaced by the following:
"An order by the Minister responsible for the economy, taken in accordance with the Autorité des marchés financiers, determines the compensation limit, the terms and time limits and the rules relating to customer information. » ;
(b) The third paragraph is replaced by the following:
« 2° The orders referred to in 3° and 5° of Article L. 312-16 applicable to members of the deposit and resolution guarantee fund under the mechanism referred to in Article L. 322-5 shall be taken on notice in accordance with the Autorité des marchés financiers. » ;
(c) In the fourth paragraph:
-the words: "3. The overall amount of annual membership fees is replaced by the words "3. The Autorité des marchés financiers sets the minimum amount due by each member";
-it is added a sentence as follows: "The Autorité des marchés financiers also sets out the conditions for the possible return of these contributions in the event of a decline in the base or risk factors. » ;
(d) The second, fifth and sixth preambular paragraphs are repealed;
30° Article L. 322-10:
(a) At the end of the first sentence of the first paragraph, the words: "the guarantee of deposits, the guarantee of investors referred to in Article L. 322-1 or the guarantee of bonds" are replaced by the words: "the mechanisms for the guarantee of deposits, the guarantee of investors referred to in Article L. 322-1 or the guarantee of bonds";
(b) The second and third sentences of the first paragraph are deleted.
Book V of the same code is amended as follows:
1° In I of Article L. 511-12-1:
(a) In the second paragraph, before the words: "a funding corporation", the words are inserted: "a credit institution subject to one or more of the measures referred to in subsections 9 and 10 of chapter III, section 4, of Book VI title I or in";
(b) In the seventh paragraph, after the words: "in respect of financing companies", the words are inserted: "or credit institutions subject to one or more of the measures referred to in subsections 9 and 10 of chapter III, section 4, of title I, of Book VI";
2° In the I of Article L. 511-41-3, after the words: "of Article L. 612-2", the words "or I and, if applicable, in the II of Article L. 613-34" are inserted;
3° After the article L. 511-41-4, an article L. 511-41-5 is inserted as follows:
"Art. L. 511-41-5. - I. - Without prejudice to articles L. 511-41-3, L. 612-30 to L. 612-34, the Autorité de contrôle prudentiel et de résolution may enjoin a credit institution, an investment company referred to in 2° of the I of section L. 613-34 or a financing company referred to in II of section L. 613-34 to take one or more of the measures of intervention
« 1° Regulation (EU) No. 575/2013 of the European Parliament and the Council of 26 June 2013;
« 2° Articles 3 to 7, 14 to 17 and 24 to 26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014;
« 3° This title and title III of this book;
« 4° Any other legislative or regulatory provision whose lack of knowledge leads to the above-mentioned provisions.
“II. - In the cases referred to in I, a credit institution, an investment company referred to in 2° I of section L. 613-34 or a funding corporation referred to in II of section L. 613-34 may be ordered to take at least one or more of the following early intervention measures:
« 1° Apply one or more of the measures in the preventive recovery plan referred to in section L. 613-35, if any after updating it if the circumstances leading to the implementation of the measures in question differ from the initial assumptions of the plan;
« 2° Submit to the approval of the Authority for prudential control and resolution, with a view to overcoming the difficulties identified, a specific recovery strategy in the form and procedure conditions provided for in Article L. 612-32;
« 3° To terminate the functions or mandates of the persons referred to in Article L. 511-13 or 4 of Article L. 532-2, members of the board of directors, supervisory board or any other body exercising equivalent oversight functions, provided that such persons are no longer in a position to perform their duties in accordance with the requirements set out in Articles L. 511-51, L. 533-26 or L. 533-25;
« 4° Establish an action plan for the restructuring of its debt with all or part of its creditors in accordance with, where appropriate, the preventive recovery plan provided for in section L. 613-35;
« 5° Amend its business strategy;
"6° Modify its legal or operational structure.
"When the person referred to in the first paragraph is a parent company or a subsidiary within the meaning of section L. 511-20, section L. 613-20-4, sections L. 613-21-3 or L. 613-21-4, as the case may be, apply.
"The Autorité de contrôle prudentiel et de résolution defines the deadline for the implementation of the measures mentioned above.
"III. - The Prudential and Resolution Authority, for the purposes of the implementation of the measures referred to in II, may enjoin persons referred to in Article L. 511-13 or Article L. 532-2, the Board of Directors, the Supervisory Board or any other body exercising equivalent oversight functions to convene a general meeting of a person referred to in I. It shall determine the order of the day. If this assembly was not convened at the end of the time limit set by the Autorité de contrôle prudentiel et de résolution, the latter summons it itself.
"IV. - The Supervisory College shall promptly inform the Resolution College of any action taken pursuant to this article. » ;
4° In the third of Article L. 511-48, after the words: "measures" are inserted the words: "of resolution" and the words: "in Article L. 613-31-16" are replaced by the words: "in paragraph 2 of subsection 10 of Chapter III, Chapter III, Part I of Book VI";
5° In the first paragraph of Article L. 511-55:
(a) The words: "and compensation policies and practices" are replaced by the words: ", compensation policies and practices";
(b) After the words: "effective risk" are added the words: "and, if any, a preventive recovery plan referred to in section L. 613-35. »
Book VI of the same code is amended as follows:
1° Article L. 612-1:
(a) The 4th of the II is replaced by the following:
« 4° To ensure the development and implementation of measures for the prevention and resolution of banking and financial crises as set out in section 4 of chapter III of this title. » ;
(b) In the first paragraph of the IV, after the words "in Article L. 612-2", the words "and in I and, if applicable, in Article L. 613-34" are inserted;
(c) After the fourth preambular paragraph, the following subparagraphs are added:
"With respect to credit institutions, the holding financial companies, the joint holding financial companies, financial institutions and investment companies, the resolution college of the Autorité de contrôle prudentiel et de résolution exercises its powers in the field of resolution of banking crises without prejudice to the competence entrusted to the Single Resolution Council by Regulation (EU) No 806/2014 of the European Parliament and the Council of 15 July 2014.
"For the implementation of the single resolution mechanism established by the above-mentioned regulation, the resolution college of the Autorité de contrôle prudentiel et de résolution is the national resolution authority for France. As such, it assists the Single Resolution Council in the exercise of the mandates entrusted to it by these regulations.
"When, pursuant to the same regulation, the single resolution council has been instructed, the resolution college shall use the powers it holds under this code. » ;
(d) The V is supplemented by a sub-item:
"The College of Resolution or the Director of Services referred to in Article L. 612-8-1, as appropriate, shall adopt the necessary measures to transpose and implement the recommendations, warnings, guidance, instructions, decisions and any other legal action of the Single Resolution Council taken under Regulation (EU) No. 806/2014 of the European Parliament and the Council of 15 July 2014. » ;
2° Article L. 612-4:
(a) The second paragraph is replaced by the following:
"With the exception of sections 4 and 5 of Chapter III of this title and subject to contrary legislative or regulatory provisions, the powers entrusted to the Authority for prudential control and resolution shall be exercised by the Supervisory Board. The College shall be elected in plenary, restricted training, sectoral sub-collège or, where appropriate, in specialised commission. » ;
(b) The third paragraph is deleted;
3° Article L. 612-8-1:
(a) The first paragraph is preceded by a "I."
(b) The eighth preambular paragraph is deleted;
(c) In the eleventh paragraph, after the words: "of these contests", the words are inserted: "or decisions that may have significant consequences on the financial system or the real economy,"
(d) It is supplemented by the following provisions:
"II.-By derogation from the provisions of Article L. 612-12 relating to the rules of organization and operation of the Authority for prudential control and resolution, the Resolution College shall establish the principles of the organization and operation of the services responsible for preparing its work. If necessary, it shall specify in its rules of procedure the modalities of its operation which would not be defined in this Code.
"III.-The budget of the Authority for prudential control and resolution includes a section on the operation of the services responsible for preparing the work of the resolution college, which is decided after the advice of the resolution college.
"IV.-In the event of an emergency identified by its president, the resolution panel may, except in the case of sanctions, decide by way of written consultation under conditions provided by decree.
"The resolution college may, except in the case of sanctions, decide by teleconference under conditions provided for by decree.
"A decree in the Council of State sets out the conditions and limits in which the College of Resolution can delegate to the President to make individual decisions within its competence. » ;
4° At the beginning of the first sentence of the first paragraph of Article L. 612-12, the word "Le" is replaced by the words: "Without prejudice to Article L. 612-8-1, on";
5° After the article L. 612-15, it is inserted the article L. 612-15-1 as follows:
"Art. L. 612-15-1.-I.-The Director of Services referred to in section L. 612-8-1 shall be appointed by order of the Minister responsible for the economy, on the proposal of the Chair of the Resolution College.
"By derogation from the rules relating to the organization and direction of the services provided for in Article L. 612-15, the Director of Resolution organizes and directs the departments responsible for preparing the work of the Resolution College.
"He reports to the resolution college.
"II.-The Director of Resolution may, under the same conditions as in the second to fourth paragraphs of Article L. 612-24, require any person referred to in I and, where applicable, in Article L. 613-34, any information necessary for the development and implementation of measures to prevent and resolve bank crises.
"It may also ask the Secretary General of the Autorité de contrôle prudentiel et de résolution that this information be collected through on-site controls. The Director of Resolution and the Secretary General of the AMF agree on the conditions for the implementation of these on-site controls.
"III.-He may receive delegation of competence of the resolution college in conditions and limits set by decree in the Council of State. » ;
6° Article L. 612-16:
(a) In IV, after the words: "Supervisory College", are inserted the words: "or the resolution college";
(b) IV becomes III and V becomes IV;
7° Article L. 612-33:
(a) II becomes III;
(b) After the first preambular paragraph, a sub-item reads as follows:
"II.-Where the Authority of prudential control and resolution considers that the measures of early intervention taken pursuant to section L. 511-41-5 are not sufficient either to put an end to serious violations by a credit institution, an investment undertaking referred to in 2° of section L. 613-34 or a funding corporation referred to in section II of section L. 613-34 of the regulations that » ;
8° In the fourth paragraph of Article L. 612-34, the words: "of 3° of Article L. 613-31-16" are replaced by the words: "of Article L. 613-51-2";
9° After the article L. 612-34, an article L. 612-34-1 is inserted as follows:
"Art. 612-34-1.-I.-Where it considers that the measures that may be taken under the II of section L. 612-33 are not sufficient to remedy the situation of a credit institution, an investment undertaking referred to in 2 of section L. 613-34 or a funding corporation referred to in section II of section L. 613-34,
"The Prudential and Resolution Authority may designate any person as a temporary administrator, including a person listed in the items L. 811-2 or L. 812-2 Commercial code.
"The tasks involved in the exercise of the temporary administrator's mandate are the responsibility of him personally. When the proper conduct of his mission requires it and after agreement of the Supervisory College, he may be assisted by third parties acting on his behalf and under his responsibility.
"II.-When a temporary administrator is appointed to replace the persons referred to in I, the powers of administration, direction and representation of the legal person in question are transferred to him in full right during the term of office. His appointment is made public.
"When a temporary administrator is appointed to assist the persons referred to in I, his or her mandate sets out the scope of his or her powers to be up to those referred to in the first paragraph and, where appropriate, defines the cases in which the leaders are required to consult or obtain his or her prior agreement.
"The Autorité de contrôle prudentiel et de résolution defines, if any, the cases in which the temporary administrator has the obligation to consult and obtain its prior agreement.
"The convening of a general meeting by the temporary administrator and the establishment of the agenda shall be subject to the prior agreement of the prudential and resolution control authority.
"The Autorité de contrôle prudentiel et de résolution may require that the temporary administrator develop and communicate to it on a frequency that it determines reports on the financial situation of credit institutions, investment companies or financing companies referred to in I and on the measures it has taken with respect to them.
"III.-The term of office of the temporary administrator cannot exceed one year. It may exceptionally be extended if the conditions of its appointment remain fulfilled after this period. The Autorité de contrôle prudentiel et de résolution may, at any time, modify or terminate its mandate.
"IV.-The remuneration of the temporary administrator is fixed by the Autorité de contrôle prudentiel et de résolution. It is supported as well as the costs it incurred by the person to whom it is designated.
"Part II of section L. 612-34 applies to remuneration and to expenses incurred by the Temporary Administrator. When the payment of the remuneration and expenses incurred by the temporary administrator comes under the conditions of the II of Article L. 612-34, the deposit and resolution guarantee fund and the State are subrogated in the rights of the temporary administrator to the amounts they have paid.
"In the event of the commencement of a judicial safeguard, recovery or liquidation procedure pursuant to Book VI of the Commercial Code, the prohibition of paying any debt arising prior to the opening judgment does not apply to the payment of the debt corresponding to the remuneration of the temporary administrator.
"In the event of an opening or pronouncement of a judicial liquidation, the debt corresponding to the remuneration of the temporary administrator shall be paid by privilege before all other claims, with the exception of those guaranteed by the privilege established in the articles L. 3253-2, L. 3253-4 and L. 7313-8 the Labour Code and the Justice Charges referred to in II of Article L. 641-13 of the Commercial Code. It is not subject to reporting obligations.
"V.-The designation of a temporary administrator does not affect the rights of holders of capital securities referred to in chapter II of Book II title I or other titles of ownership.
"The temporary administrator may not be regarded as a de facto officer or as in fact the duties of the persons designated to the I of Article L. 312-1 of the Financial Courts Code.
"VI.-Where the credit institution, the investment undertaking or the financing corporation referred to in I is a parent company or a subsidiary within the meaning of section L. 511-20, sections L. 613-20-4, sections L. 613-21-3 or L. 613-21-4, as the case may be, apply. » ;
10° Article L. 612-38:
(a) After the second preambular paragraph, a third preambular paragraph should read:
"When the resolution panel is seized by the Single Resolution Council pursuant to the provisions of Article 38, paragraph 8, of Regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014, it may initiate a sanction procedure with respect to a person referred to in Article L. 613-34 or persons referred to in Article L. 511-13 or in Article L. 532-2 of the Board of Directors, In this case, the notification of the grievances referred to in the first paragraph includes any document, including, where appropriate, any on-site monitoring report provided by the Single Resolution Council in support of its application. The applicable penalties are those provided for in Article L. 612-40. » ;
(b) In the ninth preambular paragraph, after the words: “custodial obligations”, the words “or in the matter of resolution” are inserted;
(c) After the tenth preambular paragraph, a sub-item shall read:
"When a disciplinary sanction is imposed in the cases provided for in the third paragraph, the Authority shall inform the Single Resolution Council. » ;
11° In the thirteenth paragraph of Article L. 612-39, it is added a sentence as follows:
"When a withdrawal of approval is made under this section, the Sanctions Board may cancel the certificates entered into by the person under section L. 312-7. » ;
12° Article L. 612-40:
(a) In IV:
-in the first paragraph, the words "in I and II" are replaced by the words "in I, II and IV";
-it is added a paragraph as follows:
"When a withdrawal of approval is made under this section, the Sanctions Board may cancel the certificates entered into by the person under section L. 312-7. » ;
(b) In the VI, the words "to I and II" are replaced by the words "to I, II and IV", the words "of a joint financial company or" are replaced by the words "of a joint holding financial company" and after the words "mother company of funding corporation" are inserted the words "or any other entity mentioned in I and, if applicable, in the II of section L 613."
(c) In the VII, the words: "of a joint holding company or" are replaced by the words: "of a joint holding company," after the words: "mother company of financing corporation" are inserted the words: "or any other entity referred to in I and, if applicable, in the II of section L. 613-34" and the reference: "VI" is replaced by the reference: "VI";
(d) The IV becomes V, the V becomes VI, the VI becomes VII, the VII becomes VIII, the VIII becomes IX, the IX becomes X, the X becomes XI, the XI becomes XII, the XII becomes XIII;
(e) After the III, a sub-item reads as follows:
"IV.-If one of the persons or entities referred to in I or II of section L. 613-34 has violated a provision of regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014, a provision of section 4 of chapter III of this title or any other legislative or regulatory provision whose knowledge results in that of the provisions referred to above or if it has not made a provision in respect of » ;
13° After section L. 613-20-5, the following section is inserted:
"Art. L. 613-20-6.-I.-When, as a supervisory authority on a consolidated basis, the Autorité de contrôle prudentiel et de résolution envisages taking against the parent company of a group one or more of the measures provided for in Articles L. 511-41-5 or L. 612-34-1, it shall notify the European Banking Authority of its intentions and, where applicable, other competent authorities.
"To stop its decision, the Autorité de contrôle prudentiel et de résolution takes into account the impact of these measures on the entities of the group in the other Member States.
"It shall notify the other authorities members of the College of Supervisory Authorities established pursuant to Article L. 613-20-2 and the European Banking Authority.
"The above provisions apply where the measures envisaged relate to subsidiaries of the parent company of the group that fall within the competence of the prudential and resolution control authority.
"II.-When the Authority of prudential control and resolution is notified, by the competent authority of another Member State of the European Union or party to the agreement on the European Economic Area, of the measures equivalent to those provided for in Articles L. 511-41-5 or L. 612-34-1 envisaged against a consolidated credit institution or an investment undertaking that is part of a
"In case of disagreement with the competent authority mentioned above, the Autorité de contrôle prudentiel et de résolution may refer the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
"III.-When considered to take one or more of the measures provided for in I or measures equivalent to several credit institutions or investment companies owned by the same group and under several competent authorities, the Autorité de contrôle prudentiel et de résolution, as a consolidated monitoring authority, shall endeavour to reach a common decision with the competent authorities concerned on:
« 1° The appointment, where appropriate, of a single temporary administrator for all entities concerned;
« 2° Coordinated enforcement, where appropriate, of the measures provided for in Article L. 511-41-5 with those that may be taken by other competent authorities in order to restore the financial situation of the group of concerned entities.
"In order to reach a common decision, the Autorité de contrôle prudentiel et de résolution can refer the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010. It may also refer to the same European Banking Authority on the basis of Article 19 of the Regulations (EU) in the event of disagreement on the implementation of the measures provided for in the Preventive Recovery Plan to modify the capital and liquidity of the entity concerned, to retain or replenish its own funds, to ensure its access to sources of emergency financing, including from other entities of the group, or to facilitate its recapitalization. The Autorité de contrôle prudentiel et de résolution may also refer to the European Banking Authority in the event of disagreement on the implementation of the measures provided for in 4° or 6° of II of Article L. 511-41-5 or on equivalent measures.
"In the absence of a common decision, the Autorité de contrôle prudentiel et de résolution shall decide on the measures applicable to persons under its jurisdiction, taking into account the opinions and reservations expressed by the other competent authorities and the impact of its decision on financial stability in the other Member States of the European Union concerned or parties to the agreement on the European Economic Area.
"IV.-In the event that the Autorité de contrôle prudentiel et de résolution or one of the competent authorities concerned has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Autorité de contrôle prudentiel et de résolution differentiates its decision referred to in I or in the last paragraph of the III pending the decision of the European Commission. The Autorité de contrôle prudentiel et de résolution takes action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within three days, the decision referred to in I or the last paragraph of III applies.
"V.-The Autorité de contrôle prudentiel et de résolution notifies the motivated decisions referred to in I, III and IV to the persons under its jurisdiction.
"The decisions taken by the other competent authorities are, if applicable, applicable in France. » ;
14° Section L. 613-20-6 becomes section L. 613-20-7;
15° Section L. 613-21-3:
(a) The first paragraph is preceded by a "I";
(b) After the first preambular paragraph, a sub-item reads as follows:
"II.-When an authority of another Member State of the European Union responsible for monitoring on a consolidated basis of a group consults the Autorité de contrôle prudentiel et de résolution with a view to taking, for the group, one or more measures equivalent to those mentioned in articles L. 511-41-5 or L. 612-34-1, the Autorité shall provide all the necessary cooperation. » ;
(c) The second paragraph is preceded by a "III" and in that same paragraph, the words: "above" are replaced by the words: "as provided in I or II" and the words: "within a time limit set by" are replaced by the words: "within a time and within the limits set by";
16° Section L. 613-21-7 becomes section L. 613-21-8;
17° After section L. 613-21-6, an article L. 613-21-7 is inserted as follows:
"Art. L. 613-21-7.-I.-When the Autorité de contrôle prudentiel et de résolution is consulted by the authority of another Member State of the European Union or party to the agreement on the European Economic Area, responsible for monitoring on a consolidated basis of a group that plans to take measures against the parent company of the group equivalent to those provided for in Articles L. 511-41-5 or L.
"In the event of disagreement with the authority mentioned in the first paragraph, the Autorité de contrôle prudentiel et de résolution may, during the consultation deadlines set by the authority concerned, refer to the European Banking Authority, on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and the Council of 24 November 2010.
"II.-When the Autorité de contrôle prudentiel et de résolution, as the authority in charge of supervision on an individual basis, envisages taking against one or more subsidiaries, established in France, of a company having its seat in another Member State of the European Union or party to the agreement on the European Economic Area one or more of the measures provided for in articles L. 511-41-5 or L12 The Autorité de contrôle prudentiel et de résolution sets the deadlines for consultation.
"In order to decide, it takes into account, if any, the assessment transmitted by the consolidated monitoring authority of the impact of the measure envisaged on the group or entities of the group in the other EU Member States or parties to the agreement on the European Economic Area.
"It notifies its decision to the Consolidated Supervisory Authority, to the other competent authorities members of the College of Supervisory Authorities and to the European Banking Authority.
"III.-In the event of disagreement with another competent authority which envisages taking measures equivalent to those provided for in Articles L. 511-41-5 or L. 612-34-1 against one or more subsidiaries established in another Member State of the European Union or party to the agreement on the European Economic Area, the Autorité de contrôle prudentiel et de résolution may, during the time constraints of the EU Regulation, seize the European Union Regulation No.
"IV.-When it is envisaged to take one or more measures under articles L. 511-41-5 or L. 612-34-1, or equivalent measures, against several credit institutions or investment companies belonging to the same group, the Autorité de contrôle prudentiel et de résolution, as the supervisory authority of a subsidiary of a company having its seat in another Member State of the Agreement 613-20
"The Autorité de contrôle prudentiel et de résolution may refer to the European Banking Authority for the purpose of reaching a common decision under the conditions set out in Article L. 613-20-6.
"V.-In the absence of a common decision within five days of having been seized under I, the Autorité de contrôle prudentiel et de résolution shall, where appropriate, decide on the measures applicable to subsidiaries that fall within its jurisdiction, taking into account the opinions and reservations expressed by the authority responsible for the consolidated monitoring of the group and other competent authorities as well as the potential impact of its decision on the stability of the European members concerned.
"VI.-In the event that the Autorité de contrôle prudentiel et de résolution or one of the competent authorities concerned has seized, in accordance with the deadlines set out, the European Banking Authority pursuant to Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Autorité de contrôle prudentiel et de résolution differentiates its decision provided in II or V pending that of the European Banking Authority. The Autorité de contrôle prudentiel et de résolution takes action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within three days, the decision referred to in II or V applies.
"VI.-The Autorité de contrôle prudentiel et de résolution notifies the subsidiaries that fall within its jurisdiction:
« 1° The motivated decisions mentioned in II and V;
« 2° If applicable, the common decision referred to in IV.
"The decisions taken by the other competent authorities are, if applicable, applicable in France. » ;
18° In the first paragraph of section L. 613-27, the words "of a payment institution or", are replaced by the words "of a payment institution", and after the words "of an investment company", are inserted the words "of a holding financial company, a joint holding financial company or a joint holding company referred to in 4° to 6° of the I of section L. 613-34"
19° After section L. 613-30-2, an article L. 613-30-3 is inserted as follows:
"Art. L. 613-30-3.-In the event that a judicial liquidation proceedings are initiated against a credit institution under Book VI of the Commercial Code, the distributions shall be carried out in the proportion of their receivables admitted after the creditors having a privilege, a pledge, a pledge or a mortgage, but before the cherographary creditors, the creditors in the following order:
« 1° Firstly, creditors holding deposits for the portion of their deposits covered by the warranty established pursuant to 1° of II of Article L. 312-4, and the deposit and resolution guarantee fund for the receivables held on the institution concerned under the amounts paid under I or III of Article L. 312-5;
« 2° Secondly, natural persons and micros, small and medium-sized enterprises referred to in paragraph 1 of Article 2 of the annex to Recommendation 2003/361/EC of 6 May 2003 of the European Commission defined by their annual turnover:
“(a) For the portion of their deposits eligible for the warranty referred to in 1° that exceeds the compensation cap provided under Article L. 312-16;
“(b) For their deposits that would be eligible for this guarantee if they were not made at the branches of the institution concerned located in a non-member State of the European Union and not part of the agreement on the European Economic Area. » ;
20° The title of subsection 2 of section 2 of chapter III of title I is replaced by the following title:
"Subsection 2
"Remediation and liquidation of credit institutions and investment companies"
21° Section L. 613-31-1 is replaced by the following provisions:
"Art. L. 613-31-1.-This subsection applies to remediation measures and liquidation procedures for credit institutions, investment companies other than portfolio management companies, and their branches established in the territory of a Member State of the European Union other than that of the head office. States parties to the European Economic Area Agreement shall be considered to the Member States of the European Union.
"This subsection also applies:
« 1° To the credit establishment branches referred to in I of Article L. 511-10, provided that these credit institutions have branches established in at least two Member States;
« 2° To persons mentioned in the 3rd to 6th of the I of Article L. 613-34 against whom a resolution is taken by a competent resolution authority. » ;
22° Section L. 613-31-2:
(a) In the first paragraph, after the words: "credit institution", the words "or investment company" are inserted;
(b) After the third preambular paragraph, a subparagraph shall read:
« 2° The measures referred to in sections 4 and 5 of this chapter; » ;
23° Section L. 613-31-3:
(a) In the second paragraph, after the words: "a credit institution", the words "or an investment company" are inserted and after the words: "European Economic Area", the words "or in respect of a person referred to in 3° to 6° of Article L. 613-34 as part of section 4 of this chapter" are inserted;
(b) In the third paragraph, after the words: "credit institution", the words are inserted: "or an investment company" and after the words: "accredited in France", are inserted the words: ", from a person mentioned in the 3rd to 6th of the I of Article L. 613-34 established in France";
24° In article L. 613-31-4, after the words: "credit institution" are inserted the words: ", an investment company" and after the words: "from the list of", are inserted the words: "investment companies or";
25° In the fifth paragraph of Article L. 613-31-5, after the words: "applicable to these conventions", the words are inserted: "without prejudice to the measures taken by a competent resolution authority on the basis of section 4 of this chapter or the legislation of another Member State that pursues the same purposes";
26° In section L. 613-31-6:
(a) In the second paragraph, after the words: "credit institution", the words are inserted: ", to the investment company or to a person mentioned in the 3rd to 6th I of Article L. 613-34";
(b) In the fourth paragraph, after the words: "credit institution", the words are inserted: ", the investment company or a person mentioned in the 3rd to 6th I of Article L. 613-34";
(c) In the fifth paragraph, after the words: "with that of the credit institution", the words are inserted: ", the investment company or a person mentioned in the 3rd to 6th of the I of Article L. 613-34" and the words: "the debt of the credit institution allows it" are replaced by the words: "the debt allows it without prejudice to the measures taken by a competent authority of resolution
(d) In the sixth paragraph, after the words: "credit institution", the words are inserted: ", the investment company or a person mentioned in the 3rd to 6th of Article L. 613-34";
27° In the first paragraph of section L. 613-31-7, the words "in respect of a community credit institution" are deleted;
28° In the first paragraph of section L. 613-31-8, after the words: "credit institution", the words ", the investment company or a person referred to in 3° to 6° of Article L. 613-34" are inserted;
29° In the last paragraph of section L. 613-31-9, after the words "credit institution", the words "or investment company" are inserted;
30° Section L. 613-31-10:
(a) Before the first preambular paragraph, a subparagraph shall read:
"The foreign advertising obligations of the measures referred to in Article L. 613-31-3, the information of creditors and the notification of these measures to other interested public authorities are met pursuant to Article L. 613-59-2 when they arise from the adoption of a resolution measure. » ;
(b) After the words: "to the creditors" are inserted the words: "in other cases";
31° Sub-section 3 of section 2 and section 4 of chapter III of title I are repealed;
32° Section 5 becomes section 6;
33° Section L. 613-35 becomes section L. 613-70;
34° After section 3 of the same chapter, sections 4 and 5 are inserted as follows:
“Section 4
“ Measures to prevent and manage banking crises
"Subsection 1
“General provisions
"Art. L. 613-34.-I.-The provisions of this section apply to the following persons:
« 1° Credit institutions defined in Article L. 511-1;
« 2° Investment companies within the meaning of Article L. 531-4, except:
“(a) Portfolio management companies referred to in Article L. 532-9;
“(b) Investment companies that provide only one or more of the investment services referred to in section L.2.4 or 5, 321-1 and that are not authorized to provide the related account-conservation service of financial instruments referred to in section L. 321-2, 1;
« 3° The financial institutions referred to in 4 of Article L. 511-21, which are subsidiaries of a credit institution, an investment company or a company referred to in 4° to 6° of this section and to which monitoring applies on a consolidated basis of their parent company, on the basis of Articles 6 to 17 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 4° Holding financial companies and financial companies holding mothers in a Member State or the Union, within the meaning of Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 5° The joint holding financial companies and the joint holding financial companies in a Member State or the Union, within the meaning of Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 6° Joint holding companies, as defined in Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
"In respect of the credit establishment branches referred to in I of section L. 511-10, only the provisions of section L. 613-62 and section L. 613-62-1 apply.
"II.-Without prejudice to the rules that apply to it when it falls within 3° to 5° of the I, the Supervisory Board may submit, after the advice of the Resolution College, a financing corporation or a parent company of financing, to which it considers that it poses a specific risk in terms of financial stability, the obligation to establish a preventive recovery plan under subsection 2 of this section. In this case, the rules set out in this section, section 5 of this chapter and section 3 of chapter II of Book III title I shall apply to that parent company under the conditions, inter alia, of activity threshold and subject to the powers recognized by law at the general assemblies of such companies.
"The provisions of sections L. 613-51 and L. 613-51-1 are not applicable to them. The resolution panel may designate in place and place of a special administrator, the administrator referred to in Article L. 612-34-1.
"The resolution panel may impose on the person concerned that it issues new shares or social shares or other equity instruments, including preferential shares and additional convertible instruments.
"When the resolution panel makes use of the powers referred to in section L. 613-55, the third of this section is not applicable.
"For the application of the powers referred to in subsections 9 and 10 of this section, the resolution panel shall, if any, convene the general meeting of the person concerned.
"A decree in the Council of State sets the conditions for the application of this II and adapts, where necessary, the provisions of this section.
"III.-For the purposes of the provisions of this section, the powers entrusted to the Supervisory College shall be exercised by the European Central Bank for the persons mentioned in I whose supervision falls under its direct competence under Council Regulation (EU) No 1024/2013 of 15 October 2013.
"For the purposes of the provisions of this section, the powers entrusted to the Resolution College shall be exercised by the Single Resolution Council when they fall within its jurisdiction under Regulation (EU) No. 806/2014 of the European Parliament and the Council of 15 July 2014.
"Art. L. 613-34-1.-In this section and section 5 of this chapter:
« 1° The term "significant branch" means a branch of significant importance within the meaning of section L. 613-32-1;
« 2° The expression: “transnational group” means a group whose entities are established in more than one Member State of the European Union;
« 3° The expression: “legal regime of State aids of the Union” means all the rules set out in Articles 107,108 and 109 of the Treaty on the Functioning of the European Union and by the regulations and all acts of the Union, including the guidelines, communications and notes, rendered or adopted pursuant to paragraph 4 of Article 108 or Article 109 of that Treaty;
« 4° The term "emergency of liquidity" means the provision by a central bank of central bank currency or any other contribution likely to increase the amount of central bank currency held by a financial institution, as defined in Article L. 511-21, solvent or a group of solvent financial institutions with temporary liquidity problems without the fact that this transaction is part of the monetary policy;
« 5° The expression: “critical functions” means the activities, services or operations of a person or entity referred to in I of Article L. 613-34 whose interruption is likely, in France or within the European Union, to affect the services essential to the real economy or to disrupt financial stability because of the size or market share of the person or group, its internal and external interdependence, its internal and external interdependence,
« 6° The term “basic activities” refers to the activities and services associated with which a person or entity or group is a part of the important sources of income, profits or deductible value;
« 7° The term "eligible commitments" means the liabilities or liabilities and the capital instruments of a person referred to in I of section L. 613-34 who are not excluded from the scope of the internal swelling pursuant to section L. 613-55-1 and who are not:
“(a) Category 1 core equity instruments;
“(b) Additional Category 1 equity instruments;
"(c) Category 2 equity instruments;
« 8° The expression: “consolidated resolution authority” means the resolution authority of the Member State of the European Union where the consolidated monitoring authority is located;
« 9° The expression: “Mother company in the Union” means a parent institution in the Union within the meaning of 29 of Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, a financial company holding mother in the Union within the meaning of Article 4, paragraph 1, of the Regulations or a financial company holding joint mother in the Union within the meaning of the 33 of Article 4, paragraph 1, of the Regulations
« 10° The term “guaranteed undertaking” means a liability or liability element for which the right to the creditor’s payment or any other form of performance is guaranteed by a right, pledge, privilege or device constituting security rights, including any liability or liabilities arising from pension transactions and other security rights instruments with transfer of property relating to the property of the person concerned;
« 11° The expression: “clean funds” means the specific funds within the meaning of 118 of Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 12° The term “financial contracts” means the following contracts:
“(a) Financial securities contracts, including:
"the contracts for purchase, sale, option and firm term contracts, relating to a financial title, or to a financial securities index;
"the loans of financial securities;
"the pension or pension transactions of financial securities;
“(b) Contracts for raw materials, including:
"the contracts for purchase, sale, option and firm term contracts, relating to a raw material, a basket of raw material or a commodity index;
"the loans of raw materials;
"the pension or pension of raw materials;
"(c) Firm-term contracts and all term contracts, including voluntary contracts relating to the purchase, sale or transfer, at a later date, of a raw material or property of any other nature, of a service, right or warranty for a specified price;
"(d) Exchange contracts, including:
"contracts on rate-derived instruments, cash agreements or other foreign currency agreements, exchange contracts and option contracts relating to currency, stock indices or shares, debt indices or debts, raw material indices or raw materials, climate, greenhouse gas emissions or inflation;
"the global return exchange contracts, the credit gap exchange contracts and the term contracts used to transfer credit risk;
"any agreement or operation similar to an agreement mentioned above that is subject to recurring transactions in the financial markets;
“e) Interbank loan agreements with maturity of less than or equal to three months;
“(f) Framework agreements relating to all types of contracts and agreements referred to in a to e;
« 13° The expression: “group resolution” means one of the following:
“(a) The application of resolution measures at the level of a parent company or credit institution or an investment company that is monitored on a consolidated basis;
“(b) Coordinated implementation of resolution measures by resolution authorities with respect to entities of a group that meet the conditions for triggering a resolution procedure;
« 14° The term: “class 1 core equity instruments” means the capital instruments referred to in paragraph 1 (a) of Article 26 and paragraph 1 of Article 31 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 15° The term: “Additional Own Fund Instruments of Class 1” means the additional equity instruments defined in Article 51 (EU) Regulation No. 575/2013 of the European Parliament and the Council of 26 June 2013;
« 16° The term: “Categorie 2 equity instruments” means the subordinate capital instruments or borrowings referred to in Article 62 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
« 17° The expression: “right of termination” means the right to terminate a contract, the right to anticipate the requirement, to liquidate, to compensate or to convert into a single balance of obligations, as well as any right that would arise, on the one hand, from a similar provision or provision providing for the suspension, modification or termination of an obligation imposed on a party to the contract or, on the other hand,
« 18° The term: “financial guarantee contract with transfer of ownership” means a contract by which bonds are guaranteed by property transfers referred to in Article L. 211-8;
« 19° The term: “compensation agreement” means an agreement whereby several rights or obligations may, after termination of their term, be converted or compensated in a single balance, including any agreement conferring on one of the parties a right of termination;
« 20° The term “reciprocal compensation agreement” means an agreement whereby several rights or obligations between the person subject to the resolution and another party may be compensated;
« 21° States members of the European Union other than France are considered to be the States parties to the agreement on the European Economic Area.
"Art. Article 613-34-2.-In the completion of the missions referred to in Article L. 612-1, the supervisory college and the resolution college shall take into account the nature of the activities of the entity concerned, the composition of its shareholding, its legal form, its risk profile, its size, its legal status as well as its interconnection with other institutions or with the financial system in general,
"They also take into account the potential impact of their decisions in the Member States of the European Union where the person concerned is present and strive to minimize their negative effects on financial stability and their adverse economic and social consequences in the Member States concerned.
"The resolution panel strives to minimize the cost of resolution and the potential negative effects of its economic and social decisions and to avoid the destruction of value unless the pursuit of public interest purposes requires it.
"Art. L. 613-34-3.-For the purposes of this section, where the Supervisory College or the Resolution College makes a decision or measure likely to have an impact in one or more other Member States, the College shall take into account the interest of other Member States in which parent companies, subsidiaries or branches of significant importance are established, including the impact on financial stability, budgetary resources and the deposit guarantee system or
"Art. L. 613-34-4.-I.-By derogation from the provisions of Act No. 68-678 of 26 July 1968 relating to the communication of economic, commercial, industrial, financial or technical documents and information to foreign natural or legal persons, the resolution college and the supervisory college may, for the fulfilment of their mission of prevention and resolution of banking crises, exchange information covered by professional secrecy with the following persons or services:
« 1° Minister responsible for the economy and its counterparts in the European Union;
« 2° The European Banking Authority;
« 3° The resolution authorities of the other Member States of the European Union;
« 4° The competent authorities, within the meaning of 40 of Article 4, paragraph 1, of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, of the other Member States of the European Union;
« 5° The Bank of France and other central banks of the European Union;
« 6° The deposit and resolution guarantee fund and the financing mechanisms of the resolution that carry out equivalent missions in the other member states of the European Union;
« 7° Administrative or judicial authorities in France or in other Member States of the European Union, referred to in Article L. 613-31-2;
« 8° The High Financial Stability Council or the authorities exercising equivalent missions in the other Member States of the European Union;
« 9° Auditors or persons who ensure the legal control of accounts in other EU Member States;
« 10° Any potential buyer referred to in 1° of Article L. 613-50-7;
« 11° The authorities of third countries performing functions equivalent to the resolution authorities under the conditions provided for in II.
"People or services referred to in 1° to 11° may not, if any, oppose professional secrecy to the resolution college or supervisory college.
"II.-The provisions of Articles L. 632-1 A, L. 632-7 and L. 632-15 are applicable to the Resolution College in respect of cooperation and exchange of information with the Resolution Authorities of the non-member States of the European Union and not parties to the Agreement on the European Economic Area when the missions are carried out or taken measures to prevent and resolve the banking crises provided for in this section.
"Art. L. 613-34-5.-The Supervisory College or the Resolution College may require persons referred to in I or II of section L. 613-34 to keep detailed records of the financial contracts to which they are parties.
"The Supervisory College or the Resolution College shall set the deadlines in which the persons concerned must be able to produce these records.
"Art. L. 613-34-6.-The provisions relating to public tenders referred to in Article L. 433-3 are not applicable to the measures taken by the Resolution College under this section.
"Art. L. 613-34-7.- Notwithstanding any provision or stipulation to the contrary, contributions within the meaning ofArticle 1843-3 of the Civil Code and Book II of the Commercial Code and the capital increases or reductions decided under this section shall be carried out in full right to the date fixed by the Resolution College without any formality or any procedure, including the convening of a General Assembly.
"The same is true of transfers, mergers or scissions.
"Art. L. 613-34-8.- Notwithstanding any provision or stipulation to the contrary, the general assembly of one of the persons referred to in I and II of section L. 613-34 may, by a two-thirds majority, amend the statutes of that person in order to allow the convening of a general assembly within a period not less than ten days to authorize an increase in capital when:
« 1° The data subject is in one of the situations mentioned in L. 511-41-5, L. 612-33 or L. 612-34-1;
« 2° Such an increase is intended to prevent the finding of a resolution procedure against that person or group to which it belongs pursuant to sections L. 613-49 or L. 613-49-1.
"Art. L. 613-34-9.-Les Articles L. 632-1 to L. 632-4 of the Commercial Code shall not apply to the measures decided or authorized by the Supervisory College pursuant to Article L. 511-41-5 or by the Resolution College pursuant to this section or to the acts performed by the persons designated under Articles L. 612-34-1 and L. 613-51.
"Subsection 2
" Provisions relating to the development, evaluation and implementation of recovery preventive plans
“Paragraph 1
“Common provisions
"Art. L. 613-35.-I.-Sont subject to the obligation to develop and maintain a preventive recovery plan:
« 1° Credit institutions subject to the direct supervision of the European Central Bank pursuant to Article 6, paragraph 4, of Council Regulation (EU) No 1024/2013 of 15 October 2013 and credit institutions or investment companies that constitute an important part of the financial system within the meaning of Article 11, paragraph 8, of Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014;
« 2° Credit institutions and investment companies that are not part of a group subject to consolidated monitoring within the meaning of section L. 613-20-1;
« 3° Mother companies in the Union;
« 4° Where applicable, by decision of the Supervisory College or, where appropriate, by joint decision under sections L. 613-37 and L. 613-37-1, credit institutions and investment companies when they are subsidiaries of one of the persons mentioned in the 3rd.
"The central organs referred to in Article L. 511-30 on the one hand, the credit institutions and the investment companies that are affiliated to them and their subsidiaries on the other hand, are parent companies in the Union within the meaning of the 3° above and the subsidiaries mentioned in V.
"The persons mentioned in the 1° that are not part of a group, at 2° and 4° develop preventive recovery plans on an individual basis.
"The people mentioned in the 3rd are developing preventive group recovery plans.
"II.-The level of the obligations of the persons referred to in 1 to 4° of the I under this section is determined by the Supervisory Board taking into account the elements mentioned in the first paragraph of Article L. 613-34-2 and the possible negative impact that their failure and liquidation under Book VI of the Commercial Code would be likely to have on the financial markets, on other credit institutions or investment companies, on the terms and conditions
"The Supervisory Board may authorize persons referred to in 2° and 4° of I to develop a preventive recovery plan in a simplified manner provided that such authorization is not an obstacle to the implementation of the measures referred to in sections L. 511-41-3, L. 511-41-5, L. 612-32, L. 612-33, L. 612-34, L. 612-34-1, at 613-32 V. He may withdraw this authorization at any time.
"III.-The Supervisory College may decide to exempt members of the same institutional protection system referred to in paragraph 7 of Article 113 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 from the obligation to develop an individual preventive recovery plan and to submit the system manager to the obligations of this subsection with respect to preventive group recovery plans. This manager meets these obligations in cooperation with each exempt member.
"For the purposes of this subsection, the system manager is considered to be the parent company of the system members.
"IV.- Individual preventive recovery plans provide for a wide range of recovery measures to address a significant deterioration in the financial situation of the persons concerned.
"V.-Preventive group recovery plans cover the entire group and provide a wide range of recovery measures that parent companies in the Union or their subsidiaries are likely to take when the group or credit institutions or investment companies are involved in a significant deterioration in their financial situation.
"They provide for mechanisms to ensure coordination and coherence of the measures taken at the level of the data subject mentioned at the 3rd and 6th I of section L. 613-34, as well as measures taken at the subsidiary level and, where applicable, at the level of branches of significant importance.
"VI.-The preventive individual or group recovery plan provides measures to ensure the recovery of the affected entities in the event of a crisis. It takes into account the particular situation of credit institutions and investment companies or the group to which they belong. It aims to avoid or reduce the negative effects on the financial system, including in cases where other credit institutions, investment companies or groups would be likely to implement their own plan during the same period.
"It includes appropriate conditions and procedures to ensure the timely implementation of identified recovery measures.
"It envisages several scenarios of severe macroeconomic and financial crisis based on the particular situation of the data subject or group, including systemic events and crises specific to the data subject or group.
"The plan defines several indicators by which it is decided to implement recovery measures in IV or V.
"It includes, where appropriate, the elements set out in the group financial support agreements referred to in section L. 613-46.
"Where applicable, it specifies the conditions under which the entity may use central bank facilities and the nature of the assets that may be made, in that case, as collateral.
"It provides for measures that may be taken by the entity as long as conditions for early intervention are met within the meaning of section L. 511-41-5.
"It includes provisions, including procedural, to ensure the rapid implementation of recovery measures, as well as a range of options for measures to be implemented.
"It does not take into account any possibility of exceptional public financial support.
"The content, periodicity and updating conditions of an individual or group preventive recovery plan are specified by an order of the Minister responsible for the economy.
" VII.- Preventive recovery plans are updated at least once a year or after each change in the legal structure of the individuals and entities concerned, their organization, activity or financial situation that may have a significant impact on the plan. In addition, the Supervisory College may impose more frequent updates on these individuals and entities.
"The preventive recovery plan is subject, for its adoption and for each of its amendments, to the approval of the Board of Directors, the Supervisory Board or any other body performing equivalent monitoring functions of the person responsible for establishing it, prior to its transmission to the Supervisory College.
"This transmission comes as soon as possible. This plan is accompanied by any evidence to justify that it meets the requirements of IV, V and VI and that it is likely to maintain or restore the viability and financial situation of the persons concerned or of the group to which they belong.
"Art. L. 613-35-1.-People who are required to develop a preventive recovery plan pursuant to section I and II of section L. 613-35 establish a regular monitoring mechanism for the indicators referred to in section VI.
“Paragraph 2
" Provisions on preventive recovery plans developed on an individual basis
"Art. L. 613-36.-I.-The Supervisory College shall review individual preventive recovery plans after consultation, if any, of the competent authorities of the Member States where branches of significant importance are located.
"It ensures that they comply with the requirements of Article L. 613-35 IV and VI and the regulations made for its application. In particular, it assesses their ability to maintain or restore the viability and financial situation of the persons concerned or the group to which they belong.
"It verifies that the plans and the various measures that are planned are likely to be implemented in a timely and effective manner in financial crisis situations and avoiding, to the extent possible, any significant negative impact on the financial system, including in scenarios that would lead to other credit institutions or investment companies to implement preventive recovery plans during the same period.
"It takes into account, during this review, the adequacy of equity and the funding structure of individuals who have passed the plan to the complexity of their organizational structure and risk profile.
"II.-If the Supervisory Board considers that a plan has significant deficiencies or that there are essential obstacles to its implementation, the Supervisory Board shall notify the person who has submitted the plan or the parent company of the group and invite them to submit, within a period of two months, an amended plan to address these deficiencies and obstacles.
"III.-If the Supervisory Board considers that a plan that is submitted to it at the end of this period is still inadequate, it may direct the person concerned to make specific changes.
"IV.-If there is no change in this plan to effectively address the deficiencies and obstacles identified in the evaluation, the supervisory college requires the person concerned to submit to it for that purpose, within such time as it determines, the changes that it may make to its activities.
"V.-When no change referred to in the IV is submitted within the time limit or when these changes are considered inadequate, the supervisory board may enjoin the person concerned to take any action that it considers necessary.
"For this purpose and without prejudice to the application of articles L. 511-41-3, L. 511-41-5, L. 612-24 and L. 612-32 to L. 612-34-1, the supervisory college may, by a reasoned decision, enjoin the person concerned to:
« 1° Reduce its risk profile, including liquidity risk;
« 2° Make any provision for rapid recapitalization measures;
« 3° Review its strategy and structure;
« 4° Amend its funding strategy to increase the recovery capacity of core activities and critical functions;
"5° Modify its governance structure.
"VI.-The decisions set out in the II to V come at the end of a contradictory procedure.
“Paragraph 3
" Provisions relating to preventive group recovery plans
"Art. L. 613-37.-I.-When the Supervisory Board is responsible for the consolidated monitoring of a group, the Supervisory Board shall communicate the preventive group recovery plans for which it is seized pursuant to section L. 613-35 VII:
« 1° To the competent authorities responsible for the supervision of subsidiaries established in another Member State of the European Union;
« 2° To the competent authorities of other EU Member States where branches of significant importance are established;
« 3° Where applicable and subject to equivalent confidentiality obligations, other competent authorities referred to in Article L. 613-20-2, I;
« 4° In the College of Resolution;
« 5° To the resolution authorities of these subsidiaries.
"II.-The Supervisory College shall examine and evaluate preventive group recovery plans together with the competent authorities mentioned in 1° and 2° of I after consultation with the other competent authorities mentioned in 3° of I.
"It ensures that it meets the requirements of Article L. 613-35 V and VI and the regulations made for its application.
"In particular, it assesses its ability to maintain or restore the viability and financial situation of the persons concerned or the group to which they belong. The assessment takes into account the possible impact of recovery measures on financial stability in all EU Member States in which the group is present.
"It ensures that the plan and the various measures that are planned are likely to be implemented in a timely and effective manner in financial crisis situations and avoiding, to the extent possible, any significant negative impact on the financial system, including in scenarios that would lead to other credit institutions or investment companies to implement preventive recovery plans during the same period.
"It takes into account, during this review, the adequacy of the equity and the funding structure of the individuals or groups concerned in relation to the complexity of their organizational structures and their risk profiles.
"III.- Within four months of the communication provided for in I, the Supervisory Board shall endeavour to reach with the competent authorities mentioned in 1° I to a joint decision on:
« 1° Review and evaluation of the preventive group recovery plan;
« 2° The possible subjugation of persons referred to in 4th I of Article L. 613-35 established in a Member State of the European Union under the obligation to establish an individual preventive recovery plan;
« 3° Decisions made pursuant to the II, III, IV and V of section L. 613-36.
"The Supervisory Board may adopt with the competent authorities with which it is not in disagreement a common decision concerning the preventive group recovery plan applicable to persons who fall within their respective jurisdictions.
"IV.-In order to arrive at a common decision under the conditions set out in III, and without prejudice to the decision taken on the basis of the last paragraph of this same III, the Supervisory Board may:
« 1° Seize the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010;
« 2° Seizure of the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 in the event of disagreement on the review and assessment of the preventive recovery plan of group or on the measures that the parent company in the Union or its subsidiaries may be ordered under the 1°, 2° and 4° V of Article L. 613-36.
"V.-In the absence of a common decision within four months, the Supervisory College shall decide on its own:
« 1° On the points mentioned in 1° and 3° of the III concerning the parent company in the Union. It takes into account the opinions and reservations expressed by the other competent authorities;
« 2° On the points mentioned in 2° and 3° of III concerning subsidiaries that fall within its competence.
"VI.-In the event that the supervisory college or one of the competent authorities concerned has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the supervisory college differs its decision pending that of the European Banking Authority. The Supervisory Board shall decide in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in the V applies.
" VII.-The Supervisory College shall notify:
« 1° To the parent company in the Union and the subsidiaries that fall within its jurisdiction, each with respect to them, the joint decisions made under the III and VI or the decisions made under the V;
« 2° To the other competent authorities, the decisions taken under 1° of the V.
"The decisions taken alone by the other competent authorities applicable to subsidiaries that fall within their competence are, if applicable, applicable in France.
"Art. L. 613-37-1.-I.-When it is seized by the authority of another EU Member State responsible for monitoring on a consolidated basis of a group, for the purpose of examining and evaluating a preventive plan for group recovery, the Supervisory College shall provide all necessary cooperation.
"The Supervisory College shall, with respect to it, ensure compliance with the requirements referred to in Article L. 613-37 II.
"It strives to reach a common decision with other competent authorities under the conditions set out in Article L. 613-37 III.
"It may refer to the European Banking Authority under the conditions mentioned in the IV of Article L. 613-37, in particular in case of disagreement regarding the measures that subsidiaries established in France may be ordered under the 1°, 2° and 4° of the V of Article L. 613-36.
"II.-In the absence of a common decision within four months, the Supervisory Board shall decide on the points mentioned in the 2nd and 3rd of Article L. 613-37 concerning subsidiaries that fall within its jurisdiction alone.
"III.-In the event that the supervisory college or one of the competent authorities concerned has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the supervisory college differs its decision pending that of the European Banking Authority. The Supervisory Board shall decide in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in II applies.
"IV.-The Supervisory Board shall notify the subsidiaries within its jurisdiction of the joint decisions taken under I and III or the decisions taken under II.
"Common decisions taken with other competent authorities and decisions taken by other competent authorities alone applicable to subsidiaries that fall within their competence are, if applicable, applicable in France.
"Subsection 3
" Provisions relating to the development of preventive resolution plans
“Paragraph 1
“Common provisions
"Art. L. 613-38.-I.-The Resolution College shall establish individual preventive resolution plans for persons required to develop an individual preventive recovery plan pursuant to the provisions of subsection 2 of this section. These plans provide for the resolution measures that may be taken pursuant to subsection 9 and subsection 10 of this section when the conditions for the initiation of a resolution procedure referred to in section II of section L. 613-49 or, where appropriate, section I and II of section L. 613-49-1 are met.
"The Resolution College shall establish preventive group resolution plans for persons required to develop preventive group recovery plans pursuant to the provisions of subsection 2 of this section. These plans provide for resolution measures that may be taken pursuant to subsection 9 and subsection 10 of this section against such persons, their subsidiaries established in the Union and, subject to the provisions of section L. 632-13-1, section I and II of section L. 613-15-2 and sections L. 613-62 to L. 613-62-2, of their subsidiaries established outside
"The central bodies referred to in Article L. 511-30 on the one hand, the credit institutions and the investment companies that are affiliated to them and their subsidiaries on the other, are considered to be part of the same group.
"The resolution panel may decide that the whole set up by an institutional protection system or other cooperative systems of mutual solidarity mentioned in Article 113, Article 6 and 7 of Regulation (EU) No 575/2013 of the European Parliament and Council of 26 June 2013 established in France and the persons affiliated therein constitutes a group.
"II.-Preventive Resolution Plans describe the implementation of the resolution measures referred to in I above by a range of options and based on several scenarios, including the possibility that the failure will be circumscribed and individual or occur in a context of general financial instability or systemic event.
"They do not take into account:
« 1° Exceptional public financial support with the exception of the deposit and resolution guarantee fund competitions under the resolution financing mechanism under the conditions set out in Article L. 312-5 III and IV, or, where appropriate, one or more other equivalent arrangements under other EU member states;
« 2° An urgent cash flow from a central bank;
« 3° From a cash flow granted by a central bank to unconventional conditions, in terms of guarantee, maturity or interest rates.
"They provide for the circumstances under which, when implemented, a credit institution or an investment company may use central bank facilities and list the categories of assets that, in this case, would be likely to be made as collateral.
"The measures mentioned in the plans are indicative and do not link the resolution college or the resolution authorities of other member States.
"III.-Preventive Resolution Plans include, by quantifying, whenever necessary and possible, the following elements:
« 1° A summary of the main elements of the plan;
« 2° A summary of the significant changes that have taken place within the data subject or the group to which it belongs since the last update of the plan;
« 3° A description of how critical functions and fundamental activities could be legally and economically separated from other functions, to the extent necessary to ensure continuity in the event of a failure of the individual or group;
« 4° A timetable for the implementation of the plan;
« 5° A detailed description of the assessment referred to in I of section L. 613-41;
« 6° A description of all measures required under section L. III 613-42 to reduce or remove any obstacles identified following the assessment referred to in section L. 613-41;
« 7° A description of the methods used in order to determine the value and assess the Cessibility of the branches of activity performing critical functions, branches of fundamental activities and assets of the data subject;
« 8° A detailed description of the provisions to ensure that the information required to prepare preventive plans for resolution is up-to-date and accessible;
« 9° A description of the funding modalities for the various resolution options, excluding the following assumptions:
"-any exceptional public financial support with the exception of the deposit and resolution guarantee fund competitions under the conditions set out in the III and IV of Article L. 312-5 or, where appropriate, one or more other equivalent devices under another Member State;
"-any urgent supply of liquidity by a central bank;
"-any cash flow by a central bank under unconventional conditions, in terms of guaranteeing, maturity and interest rates;
« 10° A detailed description of the various resolution strategies that may be applied according to the different possible scenarios and the applicable timelines;
« 11° A description of the critical interdependence relationships of the person or group concerned;
« 12° A description of the various options for maintaining access to the systems referred to in Article L. 330-1, the compensation chambers referred to in Article L. 440-1 and the central repositories defined in Article 2 of Regulation No. 648/2012 of 4 July 2012, and an assessment of the portability of customer positions;
« 13° An analysis of the impact of the plan on the staff of the person concerned, including in terms of costs, and a description of the procedures envisaged for consultation with staff during the resolution process;
« 14° A communication plan with the media and the public;
« 15° The minimum requirement for equity and eligible commitments under section L. 613-44 to which the person concerned or the group is subject and, where applicable, the time limit within which this requirement must be met;
« 16° Where applicable, the minimum requirement of equity and contractual internal swelling instruments pursuant to the X of section L. 613-44 to which the data subject or group is subject and, where applicable, the time limit for meeting this requirement;
« 17° A description of the main systems and operations to maintain the ongoing operation of the business processes of the data subject or group;
« 18° Where applicable, any notice expressed by the person concerned or by the group with respect to the preventive resolution plan.
"IV.- Preventive plans for individual or group resolution are reviewed and, where appropriate, updated at least once a year and after each modification of the legal structure, organization, activity or financial situation of one of the persons referred to in I or of the group to which it belongs, to the extent that this change would be likely to have a significant impact on the effectiveness of the plan or to modify the conditions of its implementation.
"V.-The resolution panel, with respect to the criteria or the assessment made prior to the issuance of the authorization referred to in II of section L. 613-35, may decide that the preventive plan of resolution will be prepared in a simplified manner unless this may constitute an obstacle to the implementation of the measures taken pursuant to subsection 9 and subsection 10 of this section.
"VI.-The preventive group resolution plans cover the group as a whole, either through the opening of a resolution procedure against a parent company in the Union, or through the application of the resolution measures to the affiliates of the group. They determine the measures for the resolution of the parent company, the affiliates of the group, the persons mentioned in the 4th to 6th of the I of Article L. 613-34 and, subject to the provisions for cooperation with the resolution authorities of third countries, the subsidiaries established in a third country.
"These plans:
« 1° Distinguish the individual resolution measures taken with respect to each of the individuals or groups mentioned in I of those that require coordinated implementation in several Member States of the Union;
« 2° Recognizes the conditions under which resolution measures could be implemented in a coordinated manner with respect to the entities of the group established in the Union, including measures to facilitate the acquisition by a third party of the group as a whole of separate business branches carried out by several entities of the group or certain entities of the group. They identify possible obstacles to the coordination of resolutions;
« 3° describe the results of the evaluation conducted pursuant to section L. I 613-41;
« 4° Identify mechanisms for cooperation and coordination with the relevant authorities of third countries if a group includes important entities outside the Union and the implications for the resolution within the Union;
« 5° Identify the measures, including the legal and economic separation of functions or activities, that are necessary to facilitate the resolution of the group when the conditions for triggering a resolution procedure are met;
« 6° Any measures, if any, that a consolidated resolution authority is likely to adopt under its national law and would exceed those authorized to take the relevant resolution authorities;
« 7° Identifies how group resolution measures could be financed and, where appropriate, allocates the burden of financing between the deposit and resolution guarantee fund and the financing arrangements for the resolution of the member States concerned.
"They are established, re-examined and, where appropriate, updated as part of the resolution authorities' colleges established pursuant to sections L. 613-59 and L. 613-59-1 or created at the initiative of another consolidated resolution authority.
" VII.-The individuals and entities mentioned in I shall provide any necessary information and provide any useful assistance, taking into account the information already available to the Authority for the prudential and resolution control, the development and updating of these plans.
"They shall promptly inform the resolution panel of the amendments mentioned in the III.
"For the purpose of establishing preventive group resolution plans, it is satisfied with the obligations mentioned in the two preceding paragraphs by the parent companies in the Union concerned or, where applicable, by the central body within the meaning of Article L. 511-30, the system of institutional protection or another cooperative system of mutual solidarity mentioned in paragraphs 6 and 7 of Article 113 of the Regulation (EU) No 575/2013 of the European Parliament and 26 June 2013.
" VIII.-The content, periodicity, information transmitted and the conditions for the development and updating of preventive resolution plans and the modalities for the financing and allocation of the burden of group resolution measures are specified by a decree of the Minister responsible for the economy.
“Paragraph 2
“ Provisions on preventive plans for individual resolutions
"Art. L. 613-39.-I.-When the resolution college is the competent resolution authority of a person referred to in the first paragraph of Article I L. 613-38, it establishes a preventive individual resolution plan, after the advice of the Supervisory College and, where appropriate, after consultation with the resolution authorities of which the person's significant branches are located.
"II.-When the resolution college is consulted, under a branch established in France, by the resolution authority of a Member State of the European Union competent to establish a preventive resolution plan on an individual basis of a credit institution or an investment company that is not a member of a group subject to consolidated monitoring and which has its seat on its territory, it provides all the necessary cooperation. The resolution panel shall take action after the advice of the supervisory college.
“Paragraph 3
“ Provisions relating to preventive group resolution plans
"Art. L. 613-40.-I.-When the resolution panel is the consolidated resolution authority, it shall establish or update preventive group resolution plans, where appropriate in conjunction with the resolution authorities of the relevant subsidiaries and, where appropriate, after consultation with the resolution authorities of the significant branches established in a Member State. It associates, where appropriate, third-country resolution authorities where the group has established subsidiaries, holding financial companies or branches of significant importance and considers that this authority is subject to confidentiality obligations equivalent to those provided for in sections L. 612-11, L. 612-17 and L. 613-50-7 with respect to information it may receive.
"For this purpose, the College of Resolution is a College of Resolution Authorities under the conditions set out in section L. 613-59 or, where applicable, under section L. 613-59-1.
"The resolution panel ensures that the preventive plan for group resolution has no disproportionate effects in France or in the Member States concerned, in particular in terms of the distribution of the contests between the financing mechanisms of the resolution of the Member States concerned or in terms of impact on financial stability.
"The Resolution College may be communicated by the parent company in the Union concerned any element that it considers necessary. It has equal access to any information held by the supervisory college.
"II.-For the purposes of I, the Resolution College shall transmit to the following individuals, each with respect to it and subject to confidentiality obligations equivalent to those provided for in sections L. 612-11, L. 612-17 and L. 613-50-7, the information required for the establishment or updating of the Preventive Group Resolution Plan:
« 1° The European Banking Authority;
« 2° The subsidiary resolution authorities;
« 3° Resolution authorities that are responsible to relevant branches of significant importance;
« 4° The competent authorities concerned;
« 5° The resolution authorities of the Member States where the persons concerned are located in the 4th to 6th of the I of Article L. 613-34.
"The resolution panel may object to the transmission of information relating to a subsidiary established in a third country where it has not received the agreement of the supervisory authority or the resolution of that subsidiary.
"III.-The resolution panel shall endeavour to reach a joint decision with the resolution authorities of the relevant subsidiaries on the adoption or updating of the preventive group resolution plan within four months of the transmission of the information referred to in II.
"The resolution panel can adopt with the resolution authorities with which there is no disagreement a common decision on persons who fall within their respective jurisdictions.
"IV.-In order to reach a common decision under the conditions provided for in the first paragraph of the III, the resolution panel may:
« 1° Seize the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010;
« 2° Seize the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 in case of disagreement on the development or updating of the preventive plan of group resolution. The resolution panel may also refer to the European Banking Authority in the event of disagreement with another resolution authority that envisages establishing or updating only the preventive plan of resolution of a subsidiary that falls within the competence of the latter.
"The resolution panel cannot refer the matter to the European Banking Authority under the 2° if another relevant resolution authority opposes it on the ground that the issue being the subject of the disagreement may have an impact on the public finances of its State. The resolution panel may object on the same grounds to the European Banking Authority being seized by another resolution authority.
"V.-In the absence of a common decision within a period of four months, the resolution panel shall decide on its own motion:
« 1° Preventive group resolution. It takes into account the views and reservations expressed by the other relevant resolution authorities;
« 2° If necessary, on the preventive plan of resolution of subsidiaries that fall within its jurisdiction. It takes into account the views and reservations expressed by the other resolution authorities and the relevant authorities.
"In the event that the Resolution College or one of the other relevant Resolution Authorities has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Resolution College differs its decision pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in the first paragraph applies.
"VI.-The resolution panel reviews the preventive plan for group resolution, including the minimum requirement for equity and eligible commitments, as long as it has been the subject of a common decision pursuant to the III and a resolution authority considers that the issue that is the subject of the disagreement may affect public finances in its state of origin. The resolution panel strives to achieve a new common decision under the conditions set out in the III without prejudice to the provisions mentioned in the IV.
" VII.-The decisions taken by the other relevant resolution authorities alone concerning the subsidiaries that fall within their competence are, if applicable, applicable in France.
"Art. L. 613-40-1.-I.-When it is seized by the consolidated resolution authority of another Member State of the European Union as a resolution authority of a subsidiary belonging to a group for the purpose of establishing or updating a preventive group resolution plan, the Resolution College shall provide all the necessary cooperation.
"The resolution panel shall take action within four months of the transmission of information that concerns this subsidiary by the consolidated resolution authority.
"The resolution panel ensures that the preventive group resolution plan does not have disproportionate effects in France, in particular in terms of the distribution of the competitions between the financing mechanisms of the resolution of the Member States or in terms of impact on financial stability.
"It strives to reach a common decision with other relevant resolution authorities under the conditions set out in Article L. 613-40 III. For this purpose, it may seize the European Banking Authority under the conditions mentioned in the IV of the same article.
"It may oppose that the European Banking Authority be seized for the purpose of reaching a common decision on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, if it considers that the issue of disagreement may have an impact on public finances in France.
"II.-In the absence of a common decision within a period of four months, the resolution panel shall take action on its own motion under the conditions set out in article L. 613-39 on the preventive plan for the resolution of subsidiaries under its jurisdiction. It takes into account the views and reservations expressed by the other resolution authorities and the relevant authorities.
"The resolution panel shall notify the other members of the College of Resolution Authorities of its decision and set out all its reasons and the reasons for disagreement with the preventive group resolution plan submitted to it.
"III.-In the event that the Resolution College or one of the other relevant Resolution Authorities has seized, in accordance with the deadlines, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Resolution College differs its decision pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in II applies.
"IV.-The resolution panel may request the consolidated resolution authority to submit to a further review the preventive plan for group resolution that has been the subject of a joint decision pursuant to I as soon as it considers that this plan may have an impact on public finances in France.
"V.-The common decisions taken by the consolidated resolution authority are applicable in France. The same is true, if any, of the decisions taken by the other relevant resolution authorities alone concerning the subsidiaries that fall within their competence.
“Paragraph 4
« Notifications
"Art. L. 613-40-2.-The Resolution College shall communicate to the Supervisory College and, where appropriate, to the competent authorities of the Member States concerned the plans it has prepared or updated pursuant to sections L. 613-39, L. 613-40 and L. 613-40-1.
"The resolution panel shall, as the case may be, notify the person referred to in section L. 613-39 or the parent company concerned under section L. 613-40 of a summary of the main measures provided for in the plan applicable to them.
"Subsection 4
"Resolvency Analysis Provisions
“Paragraph 1
“Common provisions
"Art. L. 613-41.-I.-When the development of preventive resolution plans and each of their updates, the resolution panel assesses the extent to which the persons concerned may be winded up in accordance with the terms set out in Article L. 613-31-2, or be subject to one or more of the resolution measures referred to in subsection 10 of this section, while ensuring the continuity of the critical functions and without any significant effect of the French system.
"When the persons concerned do not belong to a group, the resolution panel shall carry out the assessment referred to in the first paragraph after the advice of the supervisory college and, where appropriate, the resolution authorities to which branches of significant importance are located.
"When the persons concerned belong to a group, the resolution panel proceeds to the assessment referred to in the first paragraph with the resolution authorities of the other Member States concerned, within a college of resolution authorities.
"The evaluation is attached to the preventive resolution plan.
"II.-For the purposes of the evaluation referred to in I, it is not taken into account:
« 1° Outstanding public financial support with the exception of the deposit and resolution guarantee fund competitions under the conditions set out in Article L. 312-5 III and IV;
« 2° An emergency cash flow from a central bank;
« 3° From a cash flow granted by a central bank to unconventional conditions, in terms of guarantee, maturity and interest rates.
"III.-The criteria that are taken into account in conducting the assessment referred to in I are specified by order of the Minister responsible for the economy.
"IV.-Where the resolution panel cannot conclude, at the end of the assessment referred to in I, that a credit institution, an investment company or a group may be liquidated or subject to resolution measures under the conditions referred to in I above, it shall inform the European Banking Authority.
"Art. L. 613-41-1.-I.- Notwithstanding any provision or stipulation to the contrary, the general assembly of one of the persons referred to in I of section L. 613-34 may delegate to the competent body its jurisdiction to issue specific Category 1 instruments in sufficient proportions to facilitate the implementation of the measures provided for in subsections 9 and 10 of this section taken in respect of them or
"This general assembly sets the duration, which cannot exceed twenty-six months, during which this delegation can be used and the overall ceiling of this program.
"This delegation deprives any previous delegation having the same purpose.
"At the limit of the delegation given by the General Assembly, the competent body has the powers to determine the conditions of issue, to see the realization of the resulting capital increases and to proceed with the consequential amendment of the statutes.
"II.-When developing or updating a preventive resolution plan, the resolution panel may impose on the above-mentioned persons the authorization referred to in I. It ensures that this authorization is sufficient to cover the sum of the amounts referred to in 2° and 3° of III of section L. 613-55-4.
"Art. 613-41-2.-Without prejudice to the rules relating to major risks set out in Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 to Articles L. 511-41 and L. 533-2, the resolution college limits the commitments eligible for an internal relief measure that credit institutions and investment companies hold, with the exception of commitments that concern entities that are part of the liquidation
“Paragraph 2
" Provisions relating to the analysis of solvency on an individual basis
"Art. 613-42.-I.-Where, at the end of the assessment provided for in Article L. 613-41, the resolution college, following the advice of the supervisory college, finds that there are significant obstacles to the disposition of a credit institution or to the disposition of an investment company or to the resolution of a branch under the conditions referred to in the same I, the College shall notify, in writing, that
"II.- Within four months of this notification, the data subject proposes to the resolution panel measures to reduce or remove the identified obstacles. The resolution panel decides on these measures after the advice of the supervisory college.
"III.-When the resolution panel finds that the proposed measures do not reduce or remove the identified obstacles, it may, after consulting the supervisory college and, when the financial system is in question, the High Financial Stability Council, take any necessary action within a time frame it sets, including:
« 1° Enjoin the person concerned to review the funding arrangements within the group, to enter into service contracts, within the group or with third parties, to ensure the exercise or supply of critical functions;
« 2° Enjoin the person concerned to limit the maximum individual and aggregate amount of his or her exhibitions;
« 3° Implement additional ad hoc or regular information obligations for resolution purposes;
« 4° Enjoin the person concerned to separate from certain assets;
« 5° Enjoin the person concerned to limit or interrupt certain ongoing or planned activities;
« 6° Restrict or prohibit the development of new or existing activities or the sale of new or existing products;
« 7° Enjoin the person concerned or an entity that it directly or indirectly controls to modify its legal or operational structures in order to reduce its complexity and to allow, in the case of implementation of resolution measures, the legal and operational separation of critical functions and other functions;
« 8° Enjoin the person concerned or a parent company, within the meaning of Article L. 511-20, to establish a parent holding company in a Member State or a parent holding financial company in the Union;
« 9° Enjoin the person concerned or a person mentioned in the 3rd to 6th I of section L. 613-34 to issue eligible commitments to meet the requirements of section L. 613-44;
« 10° Instruct the person concerned or a person referred to in the 3rd to 6th I of section L. 613-34 to take further steps to meet the minimum requirements for equity and eligible commitments under section L. 613-44;
« 11° If the person concerned is a subsidiary of a joint holding company, enjoin this joint holding company to establish a separate holding company to control that person provided that this measure is necessary to facilitate the resolution of that person and to prevent the negative effects of resolution measures on the non-financial entities of the group.
"The resolution panel takes into account the risks to financial stability identified obstacles. It also takes into account the potential impact of these measures on the European market for financial services, on financial stability in other Member States and the Union as a whole, as well as on the person concerned, in particular its activity, stability and capacity to contribute to the financing of the economy.
"In the period of one month from the notification of the measures taken pursuant to this III, the person concerned proposes a plan for compliance with the resolution panel.
"IV.-When the resolution panel made the notification in I, it differs from the adoption of the preventive plan for individual or group resolution covering the person concerned to the approval of the corrective measures proposed by that person under II or to the adoption of measures provided for in III.
"V.-When the Single Resolution Council directs it to take a decision to reduce or remove the obstacles identified pursuant to Article 10 of Regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014, the Resolution College shall adopt one or more of the measures set out in 1° to 10° of the III of this Article.
"In the thirty-day period from the date of notification of the measures taken pursuant to this V, the person concerned shall submit to the Resolution College a plan to comply with it. The resolution panel shall promptly transmit this plan to the Single Resolution Council.
“Paragraph 3
" Provisions relating to the analysis of the solvency of the group
"Art. L. 613-43.-I.-When the resolution panel is the consolidated resolution authority, it conducts the assessment referred to in I of section L. 613-41 as part of the College of Resolution Authorities established pursuant to second paragraph I of section L. 613-40.
"The assessment is based on the conditions set out in section L. 613-40, III, IV and V.
"II.-The resolution panel, having consulted the College of Supervisory Authorities and the resolution authorities of which the relevant branches of significant importance are responsible, endeavours to reach a common decision with the resolution authorities of the relevant subsidiaries on the implementation of the measures set out in Article L. 613-42 in respect of all credit institutions and all investment companies that are part of the group. This decision takes into account the assessment made under I.
"III.-The Resolution College is working in cooperation with the Supervisory Board and the European Banking Authority, after consultation with the competent authorities for each of the Group's subsidiaries, a report analyzing the important obstacles to the effective implementation of the Group's resolution measures and their impact on the Group's business model. The report recommends any proportionate measures necessary to remove these obstacles.
"The report is transmitted by the resolution panel to the parent company within the meaning of Article I L. 511-20, to the subsidiaries that fall within its jurisdiction, to the resolution authorities of the affiliates of the group and to the competent resolution authorities for branches of significant importance.
"IV.- Within four months of the communication of the report, the parent company may submit comments and propose to the resolution panel further measures to address the obstacles identified in the report.
"V.-The Resolution College communicates the measures proposed by the parent company:
« 1° To the consolidated monitoring authority or supervisory college when it is the consolidated monitoring authority;
« 2° To the European Banking Authority;
« 3° To the resolution authorities of the affiliates of the group established in another Member State;
« 4° To the competent resolution authorities for branches of significant importance, to the extent that they are concerned.
"VI.- Within a period of four months following the communication of the report to the parent company or the transmission by the parent company of proposals for alternative measures, the resolution college shall endeavour to reach with the authorities mentioned in the V to a joint decision within the College of Resolution Authorities on:
« 1° Identification of significant obstacles to the group's entities being liquidated or subject to resolution measures under the conditions referred to in Article I L. 613-41;
« 2° If applicable, the assessment of the measures proposed by the parent company to reduce or remove these barriers;
« 3° The assessment of the measures required to reduce or remove these obstacles by the resolution panel and other relevant resolution authorities.
"The resolution panel takes into account the potential impact of the measures referred to in 2° and 3° in all Member States in which the group is present.
"VI.-In order to reach a common decision under the conditions set out in VI, the resolution panel may:
« 1° Seize the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010;
« 2° Seize the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 in case of disagreement on the adoption of the measures mentioned in the 7th, 8th and 11th of the III of Article L. 613-42 against the parent company in the Union or its subsidiaries.
" VIII.-In the absence of a common decision within four months, the resolution panel shall decide on its own:
« 1° On the measures to be taken at the group level pursuant to Article L. III. 613-42 taking into account, where appropriate, the opinions and reservations expressed by the other resolution authorities of the subsidiaries concerned;
« 2° On the measures to be taken pursuant to the III of Article L. 613-42 at the level of subsidiaries under its jurisdiction, taking into account, where appropriate, the opinions and reservations expressed by the other relevant resolution authorities.
"In the event that the Resolution College or one of the other relevant Resolution Authorities has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Resolution College differs its decision pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decisions mentioned in 1° and 2° apply.
" IX.-The decisions taken by the subsidiary resolution authorities are, if applicable, applicable in France.
"The resolution panel notifies:
« 1° To the parent company decisions made under the VI or the second and fourth paragraphs of the VIII;
« 2° To subsidiaries that fall within its jurisdiction decisions taken under the third and fourth paragraphs of VIII.
"Art. L. 613-43-1.-I.-When it is seized by the consolidated resolution authority of another Member State of the European Union as the resolution authority of a subsidiary for the purpose of carrying out the assessment provided for in Article L. 613-41, the resolution college shall provide all the necessary cooperation. The evaluation is conducted under the conditions set out in section L. 613-41.
"The procedure provided for in section L. 613-40-1 is applicable to conduct this evaluation.
"II.-When it is seized by the consolidated resolution authority of another Member State of the European Union as the resolution authority of a subsidiary or branch of significant importance established in France for the purpose of implementing the measures set out in Article L. 613-42 in respect of all credit institutions and all investment companies that are part of the group, the College shall,
"He participates in the College of Resolution Authorities.
"The resolution panel shall endeavour to reach a common decision with the other relevant resolution authorities on the implementation of the measures set out in the III of Article L. 613-42 with respect to the subsidiaries under its jurisdiction.
"III.-The Resolution College participates in the preparation of the report referred to in Article L. 613-43 III. It ensures the transmission to subsidiaries that fall within its jurisdiction.
"IV.-When it is seized by the consolidated resolution authority of another Member State of the European Union as the resolution authority of a subsidiary, for the purpose of reaching a joint decision covering the 1st to 3rd of Article L. 613-43, the Resolution College shall provide all the necessary cooperation.
"It takes into account the potential impact in France of the measures referred to in 3° of VI of the same article.
"The resolution panel may refer to the European Banking Authority under the conditions mentioned in the VII of the same article.
"V.-In the absence of a common decision within a period of four months, the resolution panel shall decide on the measures to be taken pursuant to Article III L. 613-42 at the level of the subsidiaries under its jurisdiction, taking into account, where appropriate, the opinions and reservations expressed by the other resolution authorities concerned.
"VI.-In the event that the Resolution College or one of the other relevant Resolution Authorities has seized, in accordance with the deadlines, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Resolution College differs its decision pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in the V applies.
" VII.-The decisions taken pursuant to the II, IV and VI and, where appropriate, the decisions taken by the subsidiary resolution authorities are applicable in France.
"The resolution panel shall notify the subsidiaries that fall within its jurisdiction of the above-mentioned common decisions in that they relate to them and the decisions it makes under V and VI.
"Subsection 5
" Provisions relating to the minimum requirement of equity and eligible commitments
"Art. L. 613-44.-I.- Credit institutions and investment companies meet, at any time, a minimum requirement of equity and eligible commitments. The minimum requirement is expressed as a percentage of the total equity and remaining liabilities of the data subject.
"For the purposes of the first paragraph, the commitments resulting from derivatives within the meaning of Article 5 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 are in the total liabilities on the basis of full recognition of the compensation rights of counterparties.
"Credit institutions or investment companies comply with the minimum requirements set out in this section on an individual basis. The College of Resolution may, after consultation with the Supervisory College, decide to apply the minimum requirement under this section to a person referred to in the 3rd to 6th I of section L. 613-34.
"Without prejudice to the previous paragraph, parent companies in the Union comply with the minimum requirements set out in this section on a consolidated basis.
"II.-The resolution panel may exempt from the minimum requirement referred to in I:
« 1° Habitat finance companies;
« 2° Land credit companies;
« 3° Credit institutions whose exclusive purpose is to refinance promissory notes governed by sections L. 313-42 to L. 313-49-1 and representative of loans made for the financing of real estate transactions by issuing, under the conditions provided for in theArticle 13 of Act No. 85-695 of 11 July 1985, obligations that have identical characteristics to those of these promissory notes.
"III.- Eligible commitments are included in the amount of eligible funds and commitments referred to in the first paragraph of the I subject to the following conditions:
« 1° The instrument is issued and fully released;
« 2° This is not a commitment made by the credit institution or the investment company to themselves or that they guarantee;
« 3° The purchase of the instrument is not financed directly or indirectly by the credit institution or the investment company;
« 4° The commitment has a residual maturity of at least one year;
« 5° The undertaking is not a product derived within the meaning of Article 5 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012;
« 6° The undertaking does not result from a deposit referred to in 1° and 2° of section L. 613-30-3 paid by privilege before other claims in the event of the commencement of judicial liquidation proceedings.
"For the purposes of the 4th, when an undertaking gives its holder the right to an advance refund, the maturity of this undertaking is deemed to be the first date on which this right may be exercised.
"Subordinated debt instruments and subordinate borrowings that are not considered as additional Category 1 equity instruments and Category 2 equity instruments are included in the amount of eligible commitments as long as they meet the above-mentioned conditions.
"IV.-When an undertaking is governed by the legislation of a third country, the resolution panel may require that the credit or investment firm demonstrate that any decision to reduce the nominal value or to convert that commitment made by the resolution college would be effective in accordance with the legislation of that country, particularly in the light of the terms of the contract governing international engagement and agreements in the recognition of the resolution procedures. If the resolution panel finds that such a decision would not be effective under the law of that third country, the commitment is not recognized in the minimum requirement of equity and eligible commitments set out in I.
"V.-The minimum level of requirement for equity and eligible commitments of each credit or investment institution that are not part of a group is determined by the resolution college, following advice from the supervisory college, including on the basis of the following criteria:
« 1° The need for the resolution of articles L. 613-52, L. 613-53, L. 613-54 and L. 613-55 to fully meet the objectives of the resolution;
« 2° The need, if any, for the establishment of credit or investment undertaking to have an adequate amount of eligible commitments in order to be certain, in the case of a resolution measure provided for in section L. 613-55, that the losses may be absorbed and that the requirement of the basic funds of the person in resolution may be increased to the level necessary for the person to continue to fulfil the conditions of his or her activities
« 3° The need that, if the preventive resolution plan provides that certain categories of eligible commitments may not be subject to an internal swelling measure pursuant to Part II of Article L. 613-55-1 or that certain categories of eligible commitments may be fully transferred to an acquirer in the context of a partial transfer, credit establishment or investment undertaking have an adequate amount of other
« 4° The size, business model, funding model and risk profile of the credit establishment or investment company;
« 5° The possibility for the deposit and resolution guarantee fund to contribute to the financing of the resolution under the deposit guarantee mechanism;
« 6° The negative effects on the financial stability of the failure of the credit institution or the investment company involved, in particular because of the contagion effect resulting from their interconnection with others or with the rest of the financial system.
"VI.-A.-When it is the consolidated resolution authority, the resolution panel strives to reach a common decision with the resolution authorities of the other Member States concerned on:
« 1° The level of the minimum requirement applied to the group at a consolidated level;
« 2° The level of the minimum requirement applied to each subsidiary of the group on an individual basis.
"For this purpose, a College of Resolution Authorities is established pursuant to section L. 613-59 or, where applicable, section L. 613-59-1.
"The minimum requirement mentioned at 1° is met at the level of the parent company. The level of this requirement is determined, after consultation with the Supervisory College, on the basis of the criteria set out in the V taking into account whether or not the Group's preventive resolution plan provides that subsidiaries established outside the European Union are subject to a separate resolution.
"The level of the minimum requirement mentioned at 2° is determined on the basis of the criteria defined at V and the level of the minimum requirement mentioned at 1°.
"B.-In order to reach a common decision on the minimum level of requirement referred to in 1° of the A, the Resolution College may refer the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010.
"The resolution panel may also refer to the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 in case of disagreement with the relevant resolution authorities that consider taking decisions on the level of the minimum requirement referred to in 2° of the A applicable to the subsidiaries that fall within their jurisdiction. In this case, the resolution panel can only refer to the European Banking Authority if the requirements that other resolution authorities wish to establish are beyond a percentage point of the consolidated level mentioned in the 1° of the A.
"The resolution panel shall communicate its reservations and observations to the resolution authorities that consider making a decision on their own to the subsidiaries under their jurisdiction.
"C.-In the absence of a common decision within a period of four months, the resolution panel shall decide on its own motion:
« 1° On the level of requirement mentioned in 1° of the A, after having examined the evaluation of the subsidiaries carried out by the resolution authorities of the other Member States concerned;
« 2° On the level of requirement referred to in 2° of the A applicable to subsidiaries that fall within its jurisdiction.
"In the event that the Resolution College or one of the other relevant Resolution Authorities has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Resolution College differs the decision mentioned in the 1st pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in 1° applies.
"D.-The decisions taken by the resolution authorities of the other Member States concerning the subsidiaries that fall within their competence are applicable in France.
"E.-Le Collège de résolution notifies:
« 1° To the parent company the common decisions referred to in A, and the decisions referred to in C and D;
« 2° To the subsidiaries that fall within its jurisdiction the decisions mentioned in the 2nd A and the C.
"These decisions are subject to regular review.
"VI.-A-When it is seized by the consolidated resolution authority of another member State of the European Union as the resolution authority of a subsidiary, for the purpose of reaching a joint decision on the 1st and 2nd A of the VI, the resolution college shall provide all the necessary cooperation.
"He participates in the College of Resolution Authorities established for this purpose.
"It takes into account the criteria set out in V. It also takes into account the level of the minimum requirement applied to the group at a consolidated level to determine the level of the minimum requirement applied to subsidiaries within its jurisdiction.
"B.-In order to arrive at a common decision on the minimum level of requirement applied to the group at a consolidated level, the Resolution College may refer the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and the Council of 24 November 2010.
"The resolution panel ensures that the assessment of subsidiaries that fall within its jurisdiction is taken into account by the consolidated resolution authority if the resolution authority plans to make a single decision on a consolidated basis.
"C.-In the absence of a common decision within a period of four months, the Resolution College shall decide on its own on the minimum level of requirement applied to subsidiaries within its jurisdiction.
"In the event that the consolidated resolution authority has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the resolution college differs its decision pending that of the European Banking Authority. The resolution panel shall take action in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in 1° applies.
"D.-The joint decisions taken pursuant to A and B and the decisions taken by the consolidated resolution authority of another Member State are applicable in France.
"E.-The resolution college shall notify the subsidiaries that fall within its jurisdiction of the decisions referred to in A that concern them or the decisions referred to in C.
"Common decisions and decisions referred to in the C are subject to regular review.
" VIII.-The resolution panel, as a consolidated resolution authority, may exempt from the application of the minimum requirement a parent company in the Union when the following conditions are met:
« 1° The parent institution in the Union respects, on a consolidated basis, the minimum requirement in VI;
« 2° The competent authority of the parent institution in the Union has completely exempted the establishment of the individual requirements of equity pursuant to paragraph 3 of Article 7 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013.
" IX.-The resolution panel, as a resolution authority at the level of a subsidiary of a group, may fully exempt a subsidiary from the application of the third paragraph of the I.
"X.-Decisions made pursuant to this section may provide that the minimum requirement of eligible equity and commitments will be partially met at the consolidated or individual level by means of contractual instruments of internal bail.
"In this case, the resolution panel appreciates the extent to which the following conditions are met:
« 1° The instrument includes a contractual clause whereby, where a resolution authority decides to apply an internal deflation measure to a credit institution or investment company, the instrument is converted or its nominal value reduced before other eligible commitments are converted or their nominal value reduced;
« 2° The instrument is subject to a binding agreement, commitment or subordination provision under which, in the event of a collective proceeding, it ranks in the order of receivables after the other eligible commitments and can be reimbursed only after the latter.
" XI.-The Resolution College, in connection with the Supervisory College, informs the European Banking Authority of the requirements for persons under its jurisdiction under this Article.
"Art. L. 613-44-1.-The resolution panel shall ensure that the requirements set out in accordance with section L. 613-44 are met by persons within its jurisdiction in coordination with the supervisory college.
"Subsection 6
" Provisions specific to the adoption of one or more early intervention measures
"Art. L. 613-45.-When informed of the adoption, in respect of a credit institution or an investment company, of an early intervention measure provided for in section L. 511-41-5, the resolution college may direct it to seek potential buyers-4 in order to prepare for the implementation of a resolution procedure, in accordance with the requirements set out in section I 613-1150
"Art. . 613-45-1.-I.-Subject to the fact that the essential obligations of the contract continue to be ensured, including obligations for payment and delivery of financial instruments, as well as obligations related to the guarantee of financial instruments, the implementation of a crisis prevention or management measure referred to in sections L. 511-41-3, L. 511-41-5, L. 612-32, L. 612
« 1° To exercise the rights of termination, suspension, modification and compensation attached to this contract;
« 2° To become the owner of an element of the heritage of that person or any entity of the same group that has entered into a contract with it that includes stipulations in respect of cross-defects, use or dispose of it or claim a security right;
« 3° To infringe on the contractual rights of that person, or any entity belonging to the same group that has entered into a contract with it that includes provisions for cross-defects.
"II.-The provisions of I also apply when the contract referred to in the first paragraph of the same I is concluded by:
« 1° A subsidiary of the data subject whose obligations are guaranteed by an entity of the group to which that subsidiary belongs;
« 2° An entity belonging to the same group as the person concerned, provided that the contract contains provisions for cross-defects.
"III.-A measure of restriction or suspension pursuant to Part II of section L. 613-56-2, section L. 613-56-4 or section L. 613-56-5 is not the non-performance of a contractual obligation for the purposes of this section.
"IV.-The provisions of this Article are police laws within the meaning of Article 9 of Regulation (EC) No 593/2008 of the European Parliament and the Council of 17 June 2008.
"Subsection 7
" Provisions relating to the conclusion, evaluation and implementation of group financial support agreements
"Art. L. 613-46.-I.- Notwithstanding any provision or stipulation to the contrary, the entities of the same group may enter into an agreement, to which the rules of this subsection apply, having the purpose or effect of providing for the conditions under which one or more of the parties to the agreement may benefit, when it meets the conditions of an early intervention referred to in section I of Financial Article L. 511-41-5,
"This agreement can provide financial support in the form of a loan, the granting of guarantees, the provision of assets that can be used as a guarantee or any combination of these forms of financial support.
"II.-are considered as entities of the same group a parent institution in a Member State, a parent institution in the Union or one of the persons referred to in 4° to 6° I of Article L. 613-34 and their subsidiaries that are subject to consolidated monitoring under the conditions set out in section 1 of Chapter 3 of Title I of Book VI.
"The central bodies referred to in Article L. 511-30 on the one hand, the credit institutions and the investment companies affiliated to them and their subsidiaries, on the other hand, are parent companies in the Union and subsidiaries of the same group respectively.
"III.-The conclusion and modification of an agreement shall be subject to prior authorization under the conditions set out in sections L. 613-46-1 or L. 613-46-2. The authorization shall not be granted if, in the opinion of the supervisory college or the competent authority concerned, each with respect to it, one of the parties meets the conditions of an early intervention.
"IV.-An agreement authorized, concluded, published and implemented under the conditions of this subsection shall not result in any contestation, action or prosecution of any kind except that exercised by one of the Contracting Parties.
"V.-The provisions of this subsection apply without prejudice to agreements or conventions governing intragroup operations, where none of the parties meet the conditions for early intervention.
"They apply subject to the provisions of Article L. 511-47.
"The absence of an agreement does not hinder the provision of one-time financial support to an entity in the group with financial difficulties as long as such support has been approved by the parent institution and, where appropriate, in accordance with the entities that provide or receive such support, that it is consistent with the group's policies and that it does not represent a risk to the whole group.
"Art. L. 613-46-1.-I.-Where the Supervisory College is responsible for the consolidated monitoring of a group, the application for authorization under section III L. 613-46 is addressed to the Supervisory College by the parent institution in the Union Party to the Agreement. It includes the draft agreement and identifies potential parties.
"The resolution panel shall, where appropriate, communicate this request to the competent authorities of the relevant subsidiaries.
"II.- Within four months of the communication provided for in I, the supervisory college shall endeavour to reach a common decision with the relevant authorities on the application for authorization.
"It is taken into account the potential effects of the implementation of the agreement in the Member States in which the group is present in particular with regard to public finances.
"The authorization is issued if the agreement meets the conditions referred to in section L. 613-46-3 and section L. 613-46-4.
"The authorization may be denied if the agreement is considered incompatible with the terms and conditions for providing intragroup financial support set out in I of section L. 613-46-3 and I of section L. 613-46-4.
"III.-In order to reach a common decision under the conditions set out in II, the Supervisory College may:
« 1° Seize the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010;
« 2° Seize the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
"IV.-In the absence of a common decision within four months, the supervisory college shall decide on the application for authorization alone. It takes into account the opinions and reservations expressed by the other competent authorities.
"In the event that the supervisory college or one of the competent authorities concerned has seized, in accordance with the deadlines set out, the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the supervisory college differs its decision pending that of the European Banking Authority. The Supervisory Board shall decide in accordance with the decision of the European Banking Authority.
"In the absence of a decision by the European Banking Authority within one month, the decision referred to in the first paragraph applies.
"V.-The Supervisory College notifies:
« 1° To the parent company in the Union decisions taken under the II or IV;
« 2° If applicable, to the other competent authorities concerned, the decision it makes pursuant to the first paragraph of the IV.
"Art. L. 613-46-2.-I.-When it is seized by the authority of another EU Member State responsible for monitoring on a consolidated basis of a group for the purpose of reaching a joint decision on an application for authorization under Article L. 613-46, the Supervisory College shall provide all the necessary cooperation.
"In particular, it ensures that the agreement is in accordance with the conditions set out in I of section L. 613-46-3 and is consistent with the conditions set out in I of section L. 613-46-4.
"It also takes into account the potential effects of the implementation of the agreement in France in particular with regard to public finances.
"II.-The Supervisory College may refer to the European Banking Authority under the conditions referred to in Article III L. 613-46-1.
"III.-Decisions relating to applications for authorization under Article III of Article L. 613-46 referred to in I or, where applicable, made by the authority of another Member State of the European Union responsible for monitoring on a consolidated basis of a group are applicable in France.
"Art. L. 613-46-3.-I.-The agreement shall be entered into freely by each party acting in the best of its interests, taking into account, inter alia, any direct or indirect benefit that may result.
"It contains clauses to:
« 1° Define the forms that support can take;
« 2° Identify the remuneration received in return for the award of such support and set the rules for calculation;
« 3° Defining the terms and conditions under which the decision to provide support by or benefit from one of the parties is subject to the express approval of the board of directors, the supervisory board or any other body performing equivalent oversight functions;
« 4° Organize the information exchange rules in such a way that any party to the agreement likely to grant support benefits from the relevant information held by the party that receives it and is necessary to determine and determine the amount of the consideration that it may collect; the amount of the consideration is fixed at the time of the grant of the support, also taking into account the information that may be held by the party that grants it because of its membership in the same group. This amount does not necessarily take into account market conditions, such as liquidity or rates, at the time the support is provided.
"II.-The draft agreement authorized under sections L. 613-46-1 and L. 613-46-2 comes into force for each party subject to its approval by the General Assembly. It cannot be modified on this occasion.
"It is reported annually to the general assembly of each entity of the execution of the agreement and the implementation of the decisions taken on its basis.
"III.-The parties to a group financial support agreement under section L. 613-46 shall make its existence public upon adoption. They publish annually a description of the terms and conditions of the agreement and the list of entities of the participating group. The content of the agreement is not made public. By derogation from Article L. 511-39, this agreement is not subject to provisions of Articles L. 225-38 to L. 225-43 of the Commercial Code.
"IV.-The content of the agreements and the terms and conditions of support are specified by an order of the Minister responsible for the economy.
"Art. L. 613-46-4.-I.-Financial support may not be provided by a group entity under section L. 613-46 unless the following conditions are met:
« 1° Financial support is intended to preserve or restore the financial stability of the entire group or entity and best serve the interests of the person who grants it;
« 2° There is a reasonable prospect that support contributes to ensuring the sustainability of the entity of the beneficiary group;
« 3° The entity concerned shall meet the requirements of equity, liquidity and major risks to it and shall not be liable to contravene them as a result of the grant of its support unless it has been authorized to derogate from it by the competent authority;
« 4° The granting of its support does not compromise either its liquidity, solvency, or the ability to effectively implement resolution measures against it;
« 5° The granting of its support does not pose a threat to financial stability, particularly in the State where it is established;
« 6° There is a reasonable prospect, at the time that the decision to grant financial support is made, that the recipient entity will pay the match for the support received under 2° I of section L. 613-46-3 and, where applicable, the other commitments it has made on this occasion.
"II.-The decision to receive financial support shall be subject to the approval of the board of directors, supervisory board or any other body performing equivalent oversight functions of the entity concerned.
"III.-Before its implementation, the decision to provide financial support is notified:
« 1° At the Supervisory College when it is responsible for monitoring on a consolidated basis of the group to which the entity is a party to the agreement that grants its support or is the competent authority to monitor that entity;
« 2° Where applicable, to the supervisory authority on a consolidated basis of the group to which the entity party belongs to the agreement that grants its support or the competent authority to monitor that entity;
« 3° Where applicable, to the competent authority to monitor the entity party to the agreement that is supported;
« 4° To the European Banking Authority.
"Art. L. 613-46-5.-I.-Where the Supervisory College is the competent authority to monitor the entity party to the agreement that intends to grant its support, it may authorize, prohibit or restrict the scope of a supporting decision referred to in section L. 613-6-4 within five working days of receipt of that decision.
"II.-The Supervisory College shall immediately notify its decision to:
« 1° The European Banking Authority;
« 2° Where applicable, the supervisory authority on a consolidated basis of the group to which the entity party belongs to the agreement granting its support;
« 3° Where applicable, the competent authority to monitor the entity party to the agreement that is supported.
"III.-Support may be granted as soon as it is authorized, taking into account, where appropriate, any restrictions made therein.
"The entity party to the agreement that grants it shall inform the persons referred to in the III of section L. 613-46-4.
"IV.-When the Supervisory College is also responsible for monitoring on a consolidated basis of the group to which the entity party belongs to the agreement that grants its support, it shall forthwith transmit to the other members of the College of Supervisors referred to in Article L. 613-20-2 and other members of the College of Resolution Authorities the decisions it makes pursuant to I and the information it receives under V.
"Art. L. 613-46-6.-I.-When the Supervisory Board, as a consolidated monitoring authority or as a competent authority responsible for the individual supervision of an entity that can benefit from support, is seized by the competent authority of the entity that grants its support for a draft decision prohibiting or restricting financial support, it may, in the event of a disagreement, seize the EU Regulation within two days.
"The decision of the competent authority is applicable in France.
"When the Supervisory College is seized as a consolidated monitoring authority, it shall forthwith transmit to the other members of the College of Supervisors referred to in Article L. 613-20-2 and to the other members of the College of Resolution Authorities the decision taken by the competent authority that has seized it.
"Art. 613-46-7.-Where a decision resulting from sections L. 613-46-5 and L. 613-46-6 affects the preventive recovery plan for an entity or group developed pursuant to the provisions of subsection 2 of this section by prohibiting or restricting the granting of financial support to an entity, the resolution panel may, as the case may be:
« 1° Conduct a further review of the preventive recovery plan pursuant to section L. 613-36 or, where applicable, section L. 613-37;
« 2° Seize the monitoring authority on a consolidated basis to review the preventive recovery plan under the conditions set out in section L. 613-37-1;
« 3° Under section L. 613-37, apply to the entity that should have benefited from the support and which it supervises as a competent authority to revise its preventive recovery plan when the entity is required to develop such a plan pursuant to section L. 613-35.
"Subsection 8
“ Provisions relating to valuation
"Art. L. 613-47.-I.-Before implementing a measure to reduce the nominal value or conversion of equity instruments or a resolution measure, the resolution panel ensures that a fair, prudent and realistic valuation of the individual's assets and liabilities is carried out by an independent expert.
"II.-When all requirements set out in I and IV to IX are met, the valuation for the purposes of the resolution is considered final.
"III.-In the event that the valuation by an independent expert under I is not possible, the resolution college may proceed to a provisional valuation of the assets and liabilities of the person concerned under the X.
"IV.-The purpose of the valuation is to estimate the value of the assets and liabilities of a person referred to in I of section L. 613-34 who meets the conditions for the initiation of a resolution procedure referred to in II of section L. 613-49 or, where applicable, those of the I and II of section L. 613-49-1.
"V.-Value pursues the following objectives:
« 1° Provide evidence to verify whether or not the conditions for the implementation of a nominal value reduction or conversion measure of equity instruments or the initiation of a resolution procedure are met pursuant to the provisions of subsections 9 and 10 of this section;
"2° Provide, in cases where the conditions for triggering a resolution procedure are met, the elements for deciding on the resolution measures to be implemented;
« 3° Provide, where appropriate, the elements to determine the amount of the cancellation or dilution of the capital securities referred to in Chapter II of Title I of Book II or other property titles or the amount of the reduction of the nominal value or the conversion of the relevant equity instruments;
« 4° In the event that an internal swelling measure referred to in section L. 613-55 is decided, provide the elements to determine the amount of the reduction of the value or conversion of eligible commitments;
« 5° In cases where an establishment or asset management structure is in place, provide the elements to determine the transfer of property, rights, obligations or capital or other property titles and the value of the consideration to be paid to the person subject to the resolution procedure or, where appropriate, to the holders of capital or other property titles;
« 6° In cases where a transfer of activities is implemented, provide the elements to determine the transfer of property, rights, obligations or capital or other property titles and provide the elements enabling the resolution college to determine the commercial conditions of the transaction for the purposes of Article L. 613-50-6;
« 7° Ensure that any loss of value on the assets of a person subject to a resolution procedure is fully taken into account at the time of implementation of the resolution or reduction of the nominal value or conversion of equity instruments.
"VI.-Without prejudice to the legal regime of the Union's State aids, where appropriate, valuation is based on prudent assumptions, including the default rates and extent of losses. The valuation does not take into account the possibility or exceptional public financial support, or an urgent supply of liquidity or unconventional conditions by a central bank from the time when the measure of reduction of the nominal value or conversion of equity instruments occurs.
"In addition, the valuation takes into account that, if a resolution is implemented, the resolution panel may, pursuant to section L. 613-50-8, recover from the person subject to a resolution procedure the amounts corresponding to any reasonable expenses that are properly disclosed. The valuation also takes into account that the loans or guarantees of the deposit and resolution guarantee fund are granted on an expensive basis.
" VII.-The valuation shall be accompanied by the following information in the accounting documents of the person concerned:
« 1° An update and a report on the financial situation;
« 2° An analysis and estimation of the accounting value of assets;
« 3° The list of current liabilities payable in the balance sheet and out-of-balance sheet in the books and records of the data subject, with the indication of the corresponding creditors and the prioritization of claims referred to in section L. 613-55-5.
" VIII.-The information referred to in 2° of the VII may, if any, be supplemented by an analysis and estimation of the value of the assets and liabilities of the data subject on the basis of their market value.
" IX.-The valuation specifies the distribution of claims in different categories according to the order of priority of claims referred to in section L. 613-55-5. It indicates the treatment that each class of holders of capital securities referred to in chapter II of Book II title I or other property titles and each class of creditors would have been likely to receive if the person in question had been subject to judicial liquidation under the provisions of Book VI of the Commercial Code.
"X.-In the event that, due to the urgency, it is not possible to meet the requirements set out in VII and IX or where the III applies, a provisional valuation is required. It meets the requirements set out in IV and, to the extent that this is reasonably possible given the circumstances, the requirements set out in I, VII and IX. It takes into account the possibility of additional losses based on appropriate justifications.
" XI.-A valuation is considered provisional until an independent expert has made a valuation that fully meets all of the above requirements. This final valuation is carried out as soon as possible. It may be carried out independently or simultaneously at the valuation referred to in the II of Article L. 613-57 and be carried out by the same independent expert.
"Definite valuation aims to:
« 1° Ensure that any loss suffered on the assets of the person concerned is fully taken into account in the accounting of that person;
« 2° Provide the elements to determine a recovery in the value of cancelled receivables or an increase in the value of counterparty paid under the XII.
"XII.-In cases where the estimate of the value of the net assets of the data subject resulting from the final valuation is greater than the estimate resulting from the provisional valuation of the net assets of that person, the resolution panel may decide:
« 1° To note the value of Category 2 receivables or equity instruments, as well as the additional Category 1 equity instruments, whose nominal value has been reduced pursuant to an internal relief measure provided for in subsection 10 of this section;
« 2° Provide, where appropriate, an instruction to the business establishment or asset management structure in place to pay an additional consideration to the person subject to the resolution procedure whose property, rights or obligations have been transferred or to the holders of capital securities or other property titles of the person concerned.
" XIII.- Notwithstanding the provisions of I, a provisional valuation may be used as a basis for any resolution measures decided by the resolution college or for the implementation of a measure of reduction of the nominal value or conversion of equity instruments.
" XIV.-The valuation is not subject to a right of appeal distinct from the decision to take a resolution action and can only be contested on the occasion of an appeal against such a measure.
"Subsection 9
" Provisions relating to the adoption and implementation of a reduction and conversion measure of equity instruments
"Art. L. 613-48.-I.-The nominal value of the additional Category 1 equity instruments as well as the Class 2 equity instruments issued by a person referred to in I of section L. 613-34 may be reduced. These instruments may also be converted to capital securities mentioned in chapter II of Book II title I or other titles of ownership. This reduction and conversion shall occur under the conditions set out in this subsection when the following two conditions are met:
« 1° The failure of the above mentioned person or group within the meaning of Article III L. 511-20 to which it belongs is proven or predictable;
« 2° Given the time required and other circumstances, there is no reasonable prospect that another measure, including a private or prudential nature, including a measure taken pursuant to section L. 511-41-5, that the reduction of the nominal value or the conversion of the own funds instrument, taken independently or in combination with one or more resolution measures provided for in subsection 2 of subsection 10 of this section, may avoid a reasonable group failure,
"These instruments may also be converted or their nominal value reduced in the case that exceptional public financial support is required, except in the circumstances referred to in 3° of III.
"II.-The failure of a person referred to in I of section L. 613-49 is proven or predictable if the person meets or exists objective evidence that the person is likely to meet one of the following conditions in the near future:
« 1° It no longer complies with the conditions of its approval;
« 2° It is not in a position to fulfill its debts or other obligations on maturity;
« 3° Exceptional financial support is required from public authorities, with the exception of the case mentioned in III;
« 4° The value of its assets is less than that of its liabilities.
"III.-Do not fall within 3° of II the cases in which the exceptional financial support of public authorities is required to avoid or remedy a serious disruption of the economy and to preserve financial stability, when this support takes one of the following forms:
« 1° A State guarantee in support of cash facilities granted by central banks in accordance with the conditions of the central banks;
« 2° A State guarantee for newly issued liabilities;
« 3° A provision of equity or a purchase of equity instruments specific to prices and conditions that do not give a benefit to the person concerned. This intake must be necessary to fill the gaps in clean funds identified during the national resistance tests, the European Union or the single supervisory mechanism or in the course of the quality examinations of the assets or equivalent studies conducted by the European Central Bank, the European Banking Authority, the relevant national authorities or, where appropriate, by the competent authority. Such support may not be granted if the person is in any of the situations referred to in 1°, 2° and 4° of II of this section or in I of section L. 613-48-1.
"IV.-The failure of a group is proven or foreseeable if it violates the consolidated prudential requirements that are applicable to it or if objective elements allow it to conclude that it will breach them in the near term, including the fact that the group has suffered or is likely to suffer losses of a nature to absorb all or a substantial part of its own funds instruments.
"V.-The nominal value reduction or conversion of additional Class 1 equity instruments and Class 2 equity instruments provided for in I shall be effected under the conditions set out in Parts II, III and IV of section L. 613-55-5.
"For the application of 3° of I of section L. 613-48-1, the reduction of the nominal value or the conversion of a clean fund instrument issued by a subsidiary may not be implemented under conditions more unfavourable than a measure of the same nature applied to an equivalent equity instrument issued by the parent company.
"VI.-The reduction of the nominal value or the conversion of equity instruments referred to in I shall be preceded by a valuation of the assets and liabilities of the person concerned or of the group to which they belong, carried out in accordance with the provisions of section L. 613-47. This valuation is the basis for calculating the reduction of the nominal value or level of conversion to these equity instruments to meet one or more of the situations mentioned in 1° to 5° I of Article L. 613-48-1.
"Art. L. 613-48-1.-I.-The resolution panel shall take the measures referred to in I of section L. 613-48 when it considers that one or more of the following conditions are met:
« 1° It was established, prior to the implementation of a resolution measure, that the conditions for the initiation of a resolution procedure referred to in Article L. 613-49 II or, where applicable, those of Article L. 613-49-1 are met;
« 2° The viability of the person in question depends on it;
« 3° In the case of equity instruments issued by a subsidiary and where these equity instruments are recorded for the purpose of meeting the requirements of equity on an individual basis and on a consolidated basis, the viability of the group depends on the reduction of the nominal value or conversion of these instruments;
« 4° In the case of equity instruments issued at the level of the parent company within the meaning of Article L. 511-20 and where these equity instruments are recorded for the purpose of meeting the requirements of equity on an individual basis at the level of the parent company within the meaning of Article L. 511-20 or on a consolidated basis, the viability of the group depends on the reduction of the nominal value or the conversion of these instruments
« 5° Except in the circumstances mentioned in the 3rd of Article L. 613-48, the person concerned or the group needs exceptional financial support from the public authorities.
"The entity or group is deemed to no longer be viable when the two conditions referred to in section L. 613-48 are met.
"The members referred to in 1° and 2° of I of Article L. 612-8-1 of the Resolution College, the European Central Bank, another competent authority or other resolution authority may refer to the Resolution College of the Prudential Control and Resolution Authority in order to establish that a person referred to in I of Article L. 613-34 or a group is in one or more of the above situations.
"II.-When one or more of the conditions referred to in I are met, the resolution panel shall determine whether the reduction of the nominal value or the conversion of equity instruments is operated independently or in combination with the implementation of one or more resolution measures provided for in subsections 3, 4.5 or 6 of subsection 2 of subsection 10 of this section.
"In all cases, when the resolution panel decides to implement one of the resolution measures, it uses the reduction or conversion power referred to in Article L. 613-48.
"Art. L. 613-48-2.-I.-The finding that a person referred to in I of section L. 613-34 or that a group is in the situation of 3° I of section L. 613-48-1 is established by the resolution college on the advice of the supervisory college and, if applicable, in conjunction with the appropriate authorities in the form of a common decision where:
« 1° The Supervisory College is the consolidated monitoring authority of the group to which the subsidiary belongs;
« 2° The person referred to in Article L. 613-34 is established in France and is a member of a group whose consolidated monitoring is provided by the competent authority of another Member State or by the European Central Bank.
"For the purposes of the first paragraph, the appropriate authority is the authority which is responsible, either by the legislation of another Member State or pursuant to Council Regulation (EU) No 1024/2013 of 15 October 2013, to find that a person referred to in Article L. 613-34 or that a group within the meaning of Article L. 511-20 is in the situation of 3° of Article L. 613-34.
"II.-In the case of a credit institution, an investment company or a group within the meaning of Article III L. 511-20 with a transnational activity, where the resolution college acknowledges that one or more of the conditions referred to in Article 3, 4 and 5 of Article L. 613-48-1 are met, it takes into consideration the potential impact of the resolution in all Member States,
"III.-When it is about to make the observation that one or more of the conditions mentioned in 2° to 5° of the I of Article L. 613-48-1 relating to a subsidiary that issues instruments of equity referred to in I of Article L. 613-48 and recorded for the purpose of meeting the requirements of equity on an individual basis and on a consolidated basis, the college of resolution shall notify its intention,
"When it is about to make the observation that a group, which is monitored on a consolidated basis, is in the situation referred to in 3° I of Article L. 613-48-1, the resolution college also notifies its intention to the competent authority responsible for each entity that has issued the instruments of equity whose nominal value may be reduced or that could be converted if it is actually done differently to that authority.
"IV.-The notification referred to in III is motivated.
"V.-When a notification is made pursuant to the III, the resolution panel, after having collected the advice of the appropriate authorities, determines:
« 1° If there is an alternative measure that can be implemented instead of the reduction of the nominal or conversion value referred to in Article L. 613-48;
« 2° In this case, if this other measure can be applied in practice and if there is a realistic prospect that it is likely to remedy, within an appropriate time, the situations mentioned in the 2°, 3°, 4° and 5° I of Article L. 613-48-1.
"VI.-For the application of the 1° of the V, an alternative measure can be:
« 1° Any early action referred to in Article L. 511-41-5;
« 2° Any action referred to in Article L. 511-41-3 or any equivalent measure in another Member State;
« 3° Transfer of funds or capital from the parent company.
" VII.-When it considers that alternative measures referred to in the VI exist, the resolution panel, after having collected the appropriate authorities' advice, ensures that they are implemented.
" VIII.-When it considers, after consultation with the appropriate authorities referred to in the first paragraph of the III, that no substitution measures would achieve the objective mentioned in the second paragraph of the V, the resolution panel proceeds to review the finding that it was considering doing.
" IX.-When it decides to make the finding that a group meets the conditions of 3° of Article L. 613-48-1, the resolution college shall immediately notify the appropriate authorities of the Member States where the affected affiliates are established. The finding must take the form of a common decision referred to in section L. 613-60-2, II. In the absence of such a common decision, the finding is not made.
"X.-When the resolution panel is seized as a resolution authority of a person referred to in Article L. 613-34, a subsidiary of a group, it shall, where appropriate, provide all necessary cooperation to the appropriate authority responsible for determining whether an alternative measure meets the conditions set out in the VI.
"It strives to reach a common decision when it is seized by the appropriate authority of another Member State or the European Central Bank.
" XI.-A decision to reduce the nominal value or to convert its own funds pursuant to the above provisions is implemented without delay taking into account the urgency of the situation that motivated it.
"Art. L. 613-48-3.-I.-The reduction of the nominal value or the conversion of the equity instruments referred to in I of section L. 613-48 is preceded, in the event of losses found, by a reduction in the amount of these losses of the Class 1 equity instruments. It is implemented under the conditions set out in section L. 613-55-4.
"II.-The reduction of the nominal value or the conversion of other equity instruments is carried out according to the following priority:
« 1° First, the principal of the additional Category 1 equity instruments;
« 2° Secondly, the principal of category 2 equity instruments.
"Art. L. 613-48-4.-Without prejudice to the application of the III of section L. 613-55-3, the reduction referred to in I of section L. 613-48 of the nominal value of a clean fund instrument is final.
"With the exception of the obligations already expired, the obligations of the data subject attached to an instrument of equity that has been reduced remain in proportion to its new value.
"Without prejudice to their possible conversion to capital securities, no compensation is paid to a holder of equity instruments that have been subject to a reduction in their nominal value.
"The zero reduction of the principal of a clean fund instrument will result in the full cancellation of all rights attached to this instrument.
"Art. L. 613-48-5.-The resolution panel requires, where necessary to carry out a conversion measure referred to in Article I L. 613-48, that the person concerned issue basic Category 1 instruments of funds for the benefit of holders of additional Category 1 equity instruments or Category 2 equity instruments. The resolution college further ensures that the following conditions are met:
« 1° The instruments of Class 1 core equity instruments are issued by the person concerned with the agreement of the Resolution College or by its parent company within the meaning of L. 511-20 with the agreement of the Resolution College acting as a consolidated resolution authority or, where applicable, with the agreement of the Consolidated Resolution Authority on a consolidated basis of another Member State;
« 2° The issuance of Category 1 core equity instruments for the purpose of converting additional Category 1 equity instruments or Category 2 equity instruments precedes, if any, any issuance of capital securities or other titles made for the purpose of providing equity by the State or any other public person;
« 3° Newly issued Category 1 core fund instruments are allocated immediately after conversion;
« 4° The conversion rate is determined under the conditions set out in section L. 613-55-7.
"Subsection 10
“ Provisions relating to the resolution procedure
“Paragraph 1
"Terms for opening a resolution procedure
"Art. L. 613-49.-I.-Members referred to in 1° and 2° of I of Article L. 612-8-1 or the European Central Bank may refer to the Resolution College of the Autorité de contrôle prudentiel et de résolution de la situation d'une personne figurant au I de l. 613-34 en vue de la mise en œuvre d'une ou plusieurs mesures de résolution. However, in the case set out in the 3rd of Article L. 613-48, only the member of the resolution college referred to in 2nd of Article L. 612-8-1 may refer to the resolution college.
"People exercising effective direction within the meaning of section L. 511-13 or 4 of section L. 532-2, the Board of Directors, the Supervisory Board or any other body performing equivalent monitoring functions shall immediately apply to the Supervisory Board if they consider that the failure of the person referred to in the first paragraph is proven or foreseeable within the meaning of section L. 613-48. The Supervisory College shall inform the Resolution College and shall inform the College of the measures taken with respect to that person pursuant to sections L. 511-41-3, L. 511-41-5, L. 612-32, L. 612-33, L. 612-34, L. 612-34-1 and L. 613-36 and subsection 4 of this section.
"II.-In cases where it is seized pursuant to I, the College of Resolution of the Prudential and Resolution Authority may only take a resolution measure referred to in I if the following conditions are met:
« 1° The Supervisory College, after notice from the Resolution College, or the Resolution College, after advice from the Supervisory College, established that the failure of a person referred to in Article L. 613-34 is proven or predictable pursuant to Article L. 613-48 II;
« 2° There is no reasonable prospect that this failure may be avoided within a reasonable period other than by the implementation of a resolution measure;
« 3° A resolution is necessary in relation to the objectives of the resolution referred to in I of Article L. 613-50 and a judicial liquidation procedure established by Book VI of the Commercial Code would not achieve these objectives to the same extent.
"III.-When the resolution college or the supervisory college finds that the conditions mentioned in 1° and 2° of II are met, and in cases where the resolution college implements a resolution measure at the request of the Single Resolution Council, it shall promptly inform:
« 1° Minister responsible for the economy;
« 2° The European Committee for Systemic Risk;
« 3° The High Financial Stability Council;
« 4° Depending on the case, the resolution college or the supervisory college;
« 5° The competent authorities, within the meaning of articles L. 511-21 and L. 532-16, of the Member States of the European Union in which the person mentioned in the first paragraph of I established a branch, as well as the resolution authorities of those States;
« 6° When the person mentioned in the first paragraph of I is monitored on a consolidated basis pursuant to the provisions of subsection 2 of section 1 of chapter III of this title, the authority of another Member State of the European Union responsible for monitoring on a consolidated basis, and the resolution authority of that State;
« 7° The deposit and resolution guarantee fund where necessary to carry out its tasks.
"Art. L. 613-49-1.-I.-The Resolution College may not take one or more resolution measures in respect of a financial institution referred to in 3° I of section L. 613-34 unless the conditions for the initiation of a resolution procedure referred to in section II of section L. 613-49 are met both in respect of the financial institution and the parent undertaking being supervised.
"II.-The resolution panel may not take a resolution action with respect to any of the persons referred to in 4° to 6° of I of section L. 613-34 unless that person and one or more of its subsidiaries having the quality of credit establishment or investment undertaking meet the conditions for the initiation of a resolution procedure referred to in II of section L. 613-49.
"In the case of a subsidiary having the status of credit or investment establishment established outside the European Union, the condition referred to in the previous paragraph is fulfilled when the competent authority of the third country has established that this subsidiary meets the conditions for the initiation of a resolution procedure under the legislation of that country.
"III.-By derogation from II, the resolution panel may take resolution measures with respect to one of the persons referred to in 4° to 6° of I of section L. 613-34, even if the person does not meet the conditions for triggering a resolution procedure referred to in II of section L. 613-49 if the following conditions are met:
« 1° One or more of its subsidiaries having the quality of credit establishment or investment undertaking meet the conditions for triggering a resolution procedure;
« 2° Given their assets and liabilities, the failure of the subsidiaries referred to in the 1° threatens other subsidiaries with the quality of credit establishment or investment company or the group as a whole;
« 3° The adoption of resolution measures in respect of the parent company is necessary for the resolution of one or more of its subsidiaries having the quality of credit establishment or investment enterprise or the resolution of the whole group.
"IV.-When credit institutions or investment companies are subsidiaries of a joint holding company and are held directly or indirectly by an intermediate holding company, the resolution college shall take resolution measures with respect to the intermediate holding company and not with respect to the joint holding company.
"Art. L. 613-49-2.- Notwithstanding any provision to the contrary, including articles L. 640-4 and L. 640-5 of the Commercial Code, a judicial liquidation procedure established by Book VI of the Commercial Code cannot be opened in respect of a person subject to a resolution procedure only at the initiative of the Resolution College. In this case, section L. 613-27 of this code is not applicable.
"Art. L. 613-49-3.-When the implementation of resolution measures justifies it, the President of the prudential and resolution control authority, at the request of the resolution panel, may apply to any court of surfers to rule in any proceeding to which a person subject to a resolution procedure is or becomes a party during the time limit allowing the resolution panel to exercise its powers of resolution in accordance with the objectives referred to in section 613-50.
“Paragraph 2
" Provisions relating to the implementation of a resolution measure
« Sub-Paragraph 1
“General provisions
"Art. L. 613-50.-I.-When implementing a resolution, the resolution panel takes into account the objectives of the resolution. These objectives are:
« 1° Ensure continuity of critical functions;
« 2° Avoid significant negative effects on financial stability;
« 3° Protecting State resources by reducing as much as possible the use of exceptional public financial aids;
« 4° Protect the funds and assets of the customers, in particular those of the depositors covered by the guarantee established pursuant to 1° of II of Article L. 312-4 and the investors covered by the guarantee established pursuant to 3° of II of Article L. 312-4.
"II.-When taking a resolution action with respect to a person referred to in section L. 613-34, the resolution panel shall ensure that:
« 1° The resolution measures first affect the holders of capital securities mentioned in chapter II of title I of Book II or other titles of ownership to the level of the equity instruments they hold, and then creditors according to the order of priority of their claims. None of these securities holders or creditors shall be liable to losses greater than those allegedly incurred in the course of a judicial liquidation under Book VI of the Commercial Code;
« 2° The persons referred to in Article L. 511-13 or Article L. 532-2, the Board of Directors, the Supervisory Board or any other body performing equivalent monitoring functions of the person subjected to a resolution procedure shall be replaced, except in cases where their maintenance is deemed necessary by the Resolution College to achieve the objectives of the resolution;
« 3° A resolution is implemented without prejudice to the rules of common law relating to civil and criminal liability of natural or legal persons;
« 4° Unless otherwise provided in this subsection, creditors of the same rank shall be treated equally;
« 5° Deposits guaranteed under the conditions set out in 2° of Article L. 312-16 are fully protected.
"III.-When a credit institution or an investment company is part of a group, the resolution panel implements resolution measures to minimize its impact on the other entities of the group and on the group as a whole.
"IV.-When the resolution panel implements one or more of the resolution measures referred to in paragraphs 3,4 and 5 of this paragraph that affect the substitution of employers, the provisions of Article L. 1224-2 of the Labour Code are not applicable.
"V.-When the implementation of a resolution measure referred to in this paragraph could not result in the information or prior consultation of the business committee under the conditions provided for in this paragraphArticle L. 2323-2 of the Labour Code, this proceeding is brought together by the employer as soon as possible.
"Art. L. 613-50-1.-Without prejudice to the provisions of this section and the legal regime of the State aids of the European Union, the Resolution College may not be opposed to any provision or stipulation that would have the effect of preventing a resolution.
"In particular, the resolution panel is exempted from the requirement to obtain authorization or agreement from any public authority or private person that the proposed operation would have required if it had been carried out outside of a resolution procedure. The holders of capital securities referred to in chapter II of title I of Book II or other titles of ownership shall be included among private individuals, creditors of the person subject to a resolution procedure, as well as persons guaranteeing or securing his or her commitments or assets.
"The other obligations, such as declaration, consultation, registration or publication, applicable in the implementation of a resolution measure, are met as soon as they continue to impose themselves and as soon as circumstances permit.
"Art. L. 613-50-2.-Where the implementation of a resolution measure pursuant to the provisions of subparagraphs 3,4,5 or 6 of this paragraph implies the issuance of an authorization pursuant to Article I of Article L. 511-12-1 or Article L. 531-6, the Supervisory College shall take action as soon as possible in order not to compromise the implementation of this resolution measure.
"Art. L. 613-50-3.-I.-Sections L. 211-36-1 to L. 211-38 do not impede the implementation of the measures imposed pursuant to the provisions of this subsection and subsection 9 of this section.
"II.-Articles L. 211-36-1 to L. 211-38 also do not impede measures imposed on an entity referred to in IV of c or d of Article 1(2) of Directive 2002/47/EC of the European Parliament and the Council of 6 June 2002 pursuant to the legislation of another Member State that offers guarantees at least equivalent to those mentioned in Articles L. 613-57-2.
"Art. L. 613-50-4.-I.-Subject to the fact that the essential obligations of the contract continue to be ensured, including obligations for the payment and delivery of financial instruments and obligations related to the guarantee of financial instruments, a measure taken under this subsection with respect to a person referred to in I of section L. 613-34 part of that contract or the survenance of any event directly related to
« 1° To exercise the rights of termination, suspension, modification, or compensation attached to this contract;
« 2° To become the owner of an element of the heritage of that person or any entity of the same group that has entered into a contract with it that includes stipulations in respect of cross-defects, or to use and dispose of or enforce a security right;
« 3° To infringe on the contractual rights of that person or any entity belonging to the same group that has entered into a contract with it that includes provisions for cross-defects.
"II.-The provisions of I also apply when the contract referred to in the first paragraph of the same I is concluded by:
« 1° A subsidiary of the person referred to in I of this article whose obligations are guaranteed by an entity of the group to which that subsidiary belongs;
« 2° An entity belonging to the same group as the person referred to in I of this section, provided that this contract contains cross-defect provisions.
"III.-A measure of restriction or suspension pursuant to the provisions of Part II of section L. 613-56-2 and sections L. 613-56-4 and L. 613-56-5 is not the non-performance of a contractual obligation for the purposes of this section.
"IV.-The provisions of this Article are police laws within the meaning of Article 9 of Regulation (EC) No 593/2008 of the European Parliament and the Council of 17 June 2008.
"Art. L. 613-50-5.-I.-The resolution measures referred to in paragraphs 3, 4.5 or 6 of this paragraph may be implemented by the resolution panel in a separate or combined manner.
"A measure to separate assets under sub-paragraph 5 cannot be implemented independently of the implementation of another resolution under sub-paragraphs 3.4 and 6.
"II.-Where the implementation of the resolution measures referred to in paragraphs 3, 4.5 or 6 of this paragraph is likely to result in losses to the creditors or the conversion of their receivables, the resolution panel, prior to or concurrently with the implementation of these resolution measures, shall implement the measures set out in subsection 9 of this section with respect to the holders of instruments.
"Art. L. 613-50-6.-I.-A transfer of ownership of capital securities referred to in chapter II of Title I of Book II or other titles of property, property, rights or obligations of a person subject to a resolution procedure or an establishment-relais is made at the best price according to the circumstances, according to an open, transparent and non-discriminatory procedure, in accordance with the legal regime of State aids and valuation.
"These provisions are not applicable when the purchaser is the deposit and resolution guarantee fund, an asset management structure or a business-replacement.
"II.-The resolution panel may impose on a person referred to in section L. 613-34 who has been transferred under sections L. 613-52, L. 613-53 or L. 613-54 and to the purchaser that they exchange information or receive assistance.
"III.-In order that transfers made pursuant to sections L. 613-52, L. 613-53 and L. 613-54 are effective, the resolution board may impose on the person subject to a resolution procedure or any entity of the group to which it is responsible to provide the purchaser the services or infrastructure that are necessary to it, excluding any form of financial support.
"When a judicial liquidation procedure is opened or pronounced pursuant to the provisions of Book VI of the Commercial Code in respect of a person subject to a resolution procedure, the offers of resumption shall be submitted to the approval of the Resolution College, which shall ensure, where appropriate, that the services or infrastructure referred to in the first paragraph are maintained. In the event of a substantial change in the objectives and means of the asset disposal plan, the resolution panel shall decide for the same purpose, at the request of the assignee, before the court decides.
"When the resolution authority of another Member State decides on measures of the same nature as those described in the first paragraph applicable to an entity established in France of a group, the Resolution College shall take all measures to ensure the implementation of these measures.
"IV.-In order to ensure that transfers made pursuant to sections L. 613-52, L. 613-53 and L. 613-54 are effective, the resolution panel shall make any provision to ensure continuity of the rights and commitments related to the transferred activity. These provisions include:
« 1° The substitution of the purchaser to the data subject under section III L. 613-56-3;
« 2° The substitution of the purchaser to the person concerned in any legal proceedings relating to an element that he has acquired.
"Art. L. 613-50-7.-Without prejudice to sections L. 142-9, L. 312-14, L. 322-2, L. 612-17, L. 613-34-4 and L. 632-1 A, the following persons shall be held in professional secrecy under the conditions and penalties provided for in section L. 641-1 when they contribute to the exercise of the duties defined in 4° of section L. 612-1:
« 1° Any person whom the resolution college or supervisory college consults as a potential purchaser;
« 2° Any person to whom the potential purchaser uses directly or indirectly for the purposes of the consultation referred to in the previous paragraph;
« 3° Auditors, accountants, legal and professional advisors, reviewers and other experts;
« 4° Any person engaged by the business establishment referred to in section L. 613-53 and the asset management structure referred to in section L. 613-54;
« 5° Any other person providing or providing services, directly or indirectly, permanently or occasionally, to the persons mentioned above, to the special or temporary administrators, to the supervisory college, the resolution college, the Bank of France, the deposit and resolution guarantee fund and to the State;
« 6° The general management, the members of the governing body and the personnel of the organs or entities mentioned in 1 to 4°.
"The prohibition resulting from the first paragraph does not apply where the authority or person who has provided this confidential information has given its express and prior consent to this disclosure and only for the purposes for which it has agreed.
"Art. L. 613-50-8.-The resolution panel, as well as the deposit and resolution guarantee fund, may collect the amounts corresponding to the amount of any justified expenditure on the implementation of one or more resolution measures. These expenses must have been reasonable and properly exposed. The collection shall be carried out in one or more of the following ways:
« 1° By deducting the amount of money to be recovered from any consideration paid by a purchaser to the person subject to a resolution procedure or, where applicable, to the holders of capital securities referred to in Chapter II of Title I of Book II or other property titles;
« 2° Seeing at the level of the amounts in question a debt benefiting from the privilege provided to theArticle L. 611-11 of the Commercial Code in respect of either the person subject to a resolution procedure or, where appropriate, the establishment-relais or the asset management structure.
"Art. 613-50-9.-When considering taking a measure of value reduction, conversion, transfer or any other resolution relating to property located in a third country or on rights, commitments, capital titles referred to in chapter II of Book II title or other property titles governed by the laws of a third country, the resolution college may require the administrator, liquidator or any other person exercising the control of the property
"If the measure adopted cannot reasonably be implemented, the resolution panel shall waive the measure envisaged.
"At the request of the resolution panel, the administrator, the liquidator or any other person exercising control of the person subject to a resolution procedure shall retain the capital titles, other titles of property, assets or rights and shall fulfil the corresponding commitments on behalf of the purchaser until the effective implementation of the measure referred to in the first paragraph.
"The provisions of section L. 613-50-8 are applicable to reasonable expenses incurred by the purchaser when applying the first paragraph.
"Art. L. 613-50-10.-In each person referred to in section L. 613-34, the terms and conditions under which the remuneration of the responsible leaders is fixed within the meaning of sections L. 511-13 and L. 532-2 and the categories of staff whose work activities have a significant impact on the risk profile of the undertaking or group, including those who are at risk, those who have a control function and any employee who
"The resolution panel ensures that these terms and conditions are in a way that ensures effective financial participation of the persons concerned.
« Sub-Paragraph 2
" Provisions relating to the administration of a person subject to a resolution procedure
"Art. L. 613-51.-When deciding on the implementation of a person referred to in section I of section L. 613-34 of the measures referred to in this subsection, the resolution panel may decide to exercise, in respect of that person, all the rights and powers conferred on the holders of capital securities referred to in chapter II of title I of Book II or other titles of ownership, in Council-2 It may also appoint a special administrator under the conditions set out in section L. 613-51-1.
"When applying the above-mentioned provisions, the Resolution College may not be regarded as a de facto officer or as acting as the persons designated to the I of Article L. 312-1 of the Financial Courts Code.
"Art. L. 613-51-1.-I.-Where the leaders referred to in Article L. 511-13 or 4 of Article L. 532-2, the Board of Directors, the Supervisory Board or any other body exercising the equivalent oversight functions of an entity subject to a resolution procedure shall be revoked, the Resolution College may appoint a special administrator, natural person or legal person, to whom all powers of the administration of These powers are exercised under the control of the resolution college.
"The resolution panel may designate any person as a special administrator, including a person on the list referred to in the articles L. 811-2 or L. 812-2 Commercial code.
"The duties of the administrator's mandate are personally the responsibility of the special administrator. When the proper conduct of his mission requires it and after agreement of the resolution college, he may be assisted by third parties acting on his behalf and under his responsibility.
"II.- Notwithstanding any provision or provision to the contrary, the special administrator shall implement the resolution measures decided by the resolution panel. The latter defines the limits of the Special Administrator's mandate and may submit to its prior agreement some of its decisions.
"The special administrator is obliged to communicate, on a frequency determined by the resolution panel, reports on the economic situation of the entities referred to in the first paragraph of I and on the measures taken in the performance of his duties.
"III.-The mandate of the special administrator shall not exceed the term of one year, which may be exceptionally renewed if the terms of his or her appointment remain fulfilled after that period. The resolution panel may at any time decide to terminate its mandate.
"IV.-The remuneration of the special administrator is fixed by the resolution college. It is supported, as well as the costs it incurred, by the person to whom it is designated.
"Part II of section L. 612-34 applies to remuneration and expenses incurred by the special administrator. When the payment comes under the conditions of Article L. 612-34, the deposit and resolution guarantee fund and the State are subrogated in the rights of the special administrator to the amounts they have paid.
"In the event of the commencement of a judicial safeguard, recovery or liquidation procedure pursuant to Book VI of the Commercial Code, the prohibition of paying any debt arising prior to the opening judgment does not apply to the payment of the debt corresponding to the remuneration of the special administrator.
"In the event of an opening or pronouncement of a judicial liquidation, the debt corresponding to the remuneration of the special administrator shall be paid by privilege before all other claims, with the exception of those guaranteed by the privilege established in the articles L. 3253-2, L. 3253-4 and L. 7313-8 the Labour Code and Justice Expenses II of Article L. 641-13 of the Commercial Code. It is not subject to reporting obligations.
"Art. L. 613-51-2.-The resolution panel may revoke and replace the members of the board, general management or any other person who provides the effective direction of the activity within the meaning of sections L. 511-13 or L. 532-2, as well as the members of the board of directors, supervisory board or any other body performing equivalent functions, of a person referred to in section L. 613-34.
« Sub-Paragraph 3
" Provisions relating to the assignment of activities
"Art. L. 613-52.-The resolution panel may decide to transfer in one or more times to one or more purchasers other than a business establishment any or part of the capital securities referred to in chapter II of Book II title I or other property titles, as well as the property, rights or obligations of the person subject to a resolution procedure. This transfer requires the agreement of the purchaser.
"This transfer also deals with the accessories of assigned receivables and security rights or personal guarantees.
"When the transfer involves a branch of activity, it leads to the universal transmission of its heritage.
"Despite any provision or stipulation to the contrary, the contracts transferred shall continue in full law without any right of termination being exercised solely as a result of such transfer or assignment.
“Every transfer under this article shall be carried out in full right to the date fixed by the resolution college.
"Art. L. 613-52-1.-In agreement with the purchaser, the resolution panel may return to its original owner any items that have been transferred pursuant to the first paragraph of section L. 613-52 without the latter being able to oppose it.
"Art. L. 613-52-2.-I.-Without prejudice to the legal regime of State aids of the European Union, the Resolution College may waive the provisions of Article I L. 613-50-6 if their implementation is likely to compromise the achievement of the objectives of the resolution referred to in Article I L. 613-50.
"II.-Subject to IV and section L. 613-58-1, this transfer is not subject to compliance with any procedural requirements under the provisions applicable to companies or title I of Book II of this Code.
"III.-When the transfer of property, rights or obligations contemplated implies that an approval is granted to the purchaser pursuant to articles L. 511-10 or L. 532-2, the resolution college shall promptly inform the supervisory college. The Committee shall take action on a timely basis that does not compromise the implementation of the resolution.
"IV.-Where the transfer of capital titles referred to in chapter II of Book II title I or other property titles contemplated has the effect of an acquisition or increase of qualified participation requiring authorization under articles L. 511-12-1 or L. 531-6, the resolution college shall promptly inform the supervisory college. The latter conducts the assessment required by the above-mentioned articles and decides on the operation as soon as possible in order not to compromise the implementation of the resolution measure. Its decision is notified to the resolution panel and to the recipient candidate.
"If the Supervisory College has not pronounced itself on the date of transfer established by the Resolution College, the following provisions apply notwithstanding sections L. 511-12-1 or L. 531-6:
« 1° The transfer of capital securities or other property titles to the purchaser shall take place on the date fixed by the resolution college;
« 2° During the valuation period and during the divestiture period of 5°, voting rights related to capital securities or other property titles acquired by the purchaser are exercised by the resolution college. It is not required to exercise these voting rights. Its responsibility may not be incurred by that fact or on that occasion;
« 3° During the assessment period and during the 5th divestiture period, the provisions of the fourth paragraph of Article L. 511-12-1, the fifth paragraph of Article L. 531-6 and Article L. 611-2 are not applicable;
« 4° If the transfer of capital titles or other property titles is authorized, the purchaser shall have the voting rights that are related to them from the notification of the decision to the resolution panel and to the purchaser or the implicit decision of the supervisory college;
« 5° If the supervisory college opposes the transfer of capital securities or other property titles to the purchaser:
“(a) The provisions of the 2nd are applicable;
“(b) The resolution college may require the purchaser to cede these shares or other titles of property at the end of a period of divestiture, to which it sets the maturity, taking into account market conditions. If this assignment is not made at the fixed time limit, the provisions of Article L. 611-2 shall apply.
"Art. L. 613-52-3.-The holders of capital securities referred to in chapter II of Book II title I or other property titles or creditors of the person subject to a resolution procedure and any other party whose property, rights and obligations are not transferred shall not have any direct or indirect rights, to the property, rights or obligations transferred to the acquirer.
"Art. L. 613-52-4.-Where only the provisions of this subparagraph are implemented to transfer a portion of the property, rights or obligations of a person subject to a resolution procedure, the residual entity is liquidated under the provisions of Book VI of the Commercial Code.
“The liquidation shall take place within a reasonable period without prejudice to:
« 1° Any obligation for the person whose property, rights or obligations have been transferred to provide the purchaser with the services or support to carry out the activities related to the transfer;
« 2° Maintenance of the residual entity for the period necessary to achieve the objectives of the resolution referred to in section L. 613-50 I.
"Art. L. 613-52-5.-For the sole purpose of exercising the free provision of services or freedom of establishment in another Member State, the purchaser shall be deemed to constitute a continuation of the person subject to a resolution procedure and shall continue to exercise any right previously held by that person on the property, rights or obligations transferred.
"Art. L. 613-52-6.-I.-The rights of participation, accession or access to the systems referred to in Article L. 330-1, to the trading platforms referred to in Book IV, II, and to the compensation chambers referred to in Book IV, are transferred to the purchaser provided that it meets the criteria of participation, accession or access to these market infrastructures. However, it cannot be opposed to the lack of notation or insufficient notation by a credit rating agency referred to in Article L. 544-4.
"When the purchaser does not meet the criteria mentioned in the previous paragraph, the purchaser shall be entitled to the transfer of the rights of participation, accession or access to market infrastructure for a period of time fixed by the resolution college shall not exceed twenty-four months. At the request of the purchaser, the resolution panel may decide to extend this period.
"II.-The purchaser is substituted for the person subject to a resolution procedure in the rights and obligations arising from the accession of the latter to the deposit and resolution guarantee fund.
« Sub-Paragraph 4
" Provisions relating to the establishment of an establishment-relais
"Art. L. 613-53.-I.-The resolution panel may use an establishment-relais to acquire in one or more times, on a provisional basis and for an assignment under the conditions that it sets, in accordance with the rules of competition, all or part of the property, rights or obligations of a person subject to a resolution procedure, the capital titles referred to in chapter II of title I of Book II or other issued securities.
"II.-Any transfer to the property requires its prior agreement.
"III.-The establishment-relais is wholly or partially owned by one or more public persons.
"The resolution college shall exercise all rights related to the possession of capital securities or other property titles. The implementation of an internal swelling measure pursuant to section L. 613-55 is not an obstacle to the exercise of these rights.
"IV.-When resorting to an establishment-relais, the resolution panel ensures that the total value of the liabilities and liabilities transferred to that establishment-relais is not greater than the total value of the assets and rights transferred.
"V.-In the course of its missions, the establishment-relais has no obligation or liability with respect to the holders of capital securities or other property titles and creditors of the person subject to the resolution procedure.
"Art. L. 613-53-1.-I.-The resolution college approves the constitutive acts of the establishment-relais.
"He appoints or approves the appointment and renewal of office of the persons referred to in section L. 511-13 or section L. 532-2, members of the board of directors, supervisory board or any other body performing equivalent oversight functions. He approves their remuneration.
"It also approves the establishment's strategy and risk profile. It may limit the exercise of certain activities.
"II.-The establishment-relais has the necessary accreditation to carry out its activities. It is subject to supervision of the Supervisory College pursuant to Article L. 612-1.
"When the pursuit of the objectives referred to in Article L. 613-50 requires it, the Supervisory College may, at the request of the Resolution College, exempt the establishment-relais from respecting all or part of the provisions of Book V titles I or III, in particular in matters of accreditation, for a period of time fixed by the College. These provisions as well as the expiry of this period are specified in the approval decision.
"Art. L. 613-53-2.-Any item acquired by the establishment-relais pursuant to section I L. 613-53 may be returned to its original owner without being able to object to it or transferred to a third party.
"This new transfer can only be decided by the resolution panel when it has been expressly provided for in the original transfer act or when it relates to goods, rights or obligations that have been unduly transferred to the relocated facility.
"Art. L. 613-53-3.-On the decision of the resolution panel, the establishment-relais shall be deemed to constitute a continuation of the person subject to a resolution procedure and shall continue to exercise any right previously held by that person on the property, rights or obligations transferred.
"Despite any provision or stipulation to the contrary, the contracts transferred to the establishment-relais shall continue in full law without any right of termination being exercised solely as a result of such transfer or assignment.
"Art. L. 613-53-4.-I.-The provisions of this subparagraph shall cease to apply where one of the following conditions is met:
« 1° The establishment-relais merges with another person;
« 2° The hotel no longer meets the requirements set out in section L. 613-53-1;
« 3° All or most of the property, rights or obligations of the establishment-relais was transferred to a third party;
« 4° The assets of the establishment-relais are fully liquidated and discharged from all its commitments.
"II.-The resolution panel shall terminate the activity of the establishment-relais no later than the expiry of a period of two years from the last transfer under section L. 613-53. The resolution panel may decide to extend this period for a re-conductable year when none of the conditions set out in I is realized or the continuity of essential banking or financial services requires it.
"III.-When the resolution college terminated the activity of the establishment-relais pursuant to II or in the case provided for in 3° of I, the establishment-relais is liquidated in accordance with the provisions of Book VI of the Commercial Code.
"Art. L. 613-53-5.-The provisions of the second paragraph of section L. 613-52, section II of section L. 613-52-2 and sections L. 613-52-3, L. 613-52-4 and L. 613-52-6 apply when resorting to a place of residence.
« Sub-Paragraph 5
" Provisions relating to the establishment of an asset management structure
"Art. L. 613-54.-I.-The resolution panel may use one or more asset management structures to which, in one or more times, all or part of the property, rights or obligations of a person subject to a resolution procedure or a place of business. These structures are responsible for managing these assets with a view to achieving them at the best price.
"When an asset management structure is created to receive property, rights or obligations from a business, the agreement of the holders of capital securities referred to in chapter II of Book II title I or other property titles issued by that business establishment is necessary.
"II.-The resolution panel determines the counterparty in exchange for which property, rights and obligations are transferred to the asset management structure in accordance with the principles set out in Article L. 613-47 and in accordance with the legal regime of State aids of the European Union.
"The counterparty can be paid in the form of a debt instrument issued by the asset management structure.
"III.-The asset management structure is wholly or partially owned by one or more public persons.
"IV.-The resolution panel may transfer property, rights or obligations to an asset management structure where one of the following conditions is met:
« 1° The liquidation of the assets concerned in accordance with the terms and conditions set out in Book VI of the Commercial Code may have a negative impact on one or more financial markets;
« 2° This transfer is necessary to ensure the proper functioning of the person subject to a resolution procedure or the establishment-relais.
"Art. L. 613-54-1.-I.-All property, right or obligation acquired by the asset management structure may be returned to its original owner. Except where the assignee is a business-replacement, this surrender does not require the consent of the original owner.
"II.-This new transfer may only be decided by the resolution panel when expressly provided for in the original transfer act or when it relates to assets, rights or obligations that have been unduly transferred to the asset management structure.
"Art. L. 613-54-2.-The provisions of the second paragraph of section L. 613-52, section II of section L. 613-52-2, section L. 613-52-3, section V L. 613-53 and section I L. 613-53-1 apply when using an asset management structure.
« Sub-Paragraph 6
" Provisions relating to the implementation of an internal swelling measure
"Art. L. 613-55.-I.- Eligible commitments of a person subject to a resolution procedure may be subject to a reduction in their value or a conversion to Category 1 core equity instruments with a view to the continuation of either of the following objectives:
« 1° Recapitalize the person who meets the conditions for the initiation of a resolution procedure in order to restore his or her ability to comply with the conditions of his or her approval, to continue the activities for which he or she is authorized and to maintain an adequate level of confidence on the part of the markets;
« 2° Reducing the value of debts or debt instruments, or converting them to capital securities referred to in chapter II of Book II title I or to other titles of ownership, where they are transferred:
“(a) To an establishment-relais to bring it capital;
“(b) As part of an assignment of activity or the use of an asset management structure in accordance with the provisions of paragraphs 3 and 5 of paragraph 2 of this subsection, respectively.
"II.-The reduction of the value or conversion of eligible commitments for the purposes referred to in 1° of I may only be implemented if there is a reasonable prospect that this reduction or conversion, together with other useful measures, including the measures taken in accordance with the plan for reorganization of the activities provided for in section L. 613-55-8, will achieve the objectives of the resolution referred to in section I of section 613-55-8.
"When the conditions set out in the preceding paragraph are not met, the resolution measures referred to in sections L. 613-52, L. 613-53 and L. 613-54 and 2° of I of this section are applicable.
"III.-The value reduction or conversion of eligible commitments may be implemented regardless of the legal form of the person or entity concerned. If necessary, the resolution panel may decide to amend the legal form of that person or entity in advance.
"Art. L. 613-55-1.-I.-Ne may be subject to a reduction in their value or conversion, regardless of the legal regime applicable to them, the following commitments:
« 1° Covered deposits defined pursuant to 2° of Article L. 312-16 or equivalent;
« 2° Guaranteed commitments, including secured obligations, and commitments in the form of financial instruments used for cover purposes that are an integral part of the coverage basket and are guaranteed in a manner equivalent to secured obligations;
« 3° Any undertaking resulting from the detention by a person subject to a procedure for the resolution of assets or liquidity of clients, including the assets or liquidities of clients deposited by a UCITS referred to in Article L. 214-2 or an IAF referred to in Article L. 214-24 or any other equivalent agency in a Member State, provided that the client is protected by the applicable insolvency legislation;
« 4° Any undertaking arising out of a trust relationship between a trustee, subject to a resolution procedure, and the beneficiary, provided that the beneficiary is protected by the applicable insolvency or civil law;
« 5° Commitments with an initial maturity of less than seven days, to credit institutions or investment companies or any company that, if it exercised in France, would be required to have the same approval, and that are not part of the same group as the person subject to a resolution procedure;
« 6° The commitments resulting from participation in a system referred to in Article L. 330-1, with a residual maturity of less than seven days, with respect to that system, operator or participant;
« 7° Any commitment to any of the following individuals or services:
“(a) An employee, in connection with wages, pension allowances or any other fixed remuneration, except for the variable component of the remuneration that is not regulated by a collective agreement and the variable component of the remuneration of significant risk licensees defined in Article L. 511-71;
“(b) A commercial creditor, in connection with the provision to a person subject to a procedure for the resolution of goods or services essential to his or her operation;
"(c) Tax and social security administrations, provided these commitments are considered to be privileged claims;
"(d) The deposit and resolution guarantee fund under the deposit guarantee mechanism referred to in 1° of II of Article L. 312-4 or equivalent systems.
"The resolution panel ensures that, in their entirety, assets that cover the preferred resources are not allocated, remain separated and are subject to sufficient funding.
"However, the exclusions mentioned in 1° to 7° are not, if any, obstructing the reduction of value or the conversion of the portion of a secured or secured undertaking, and which exceeds the value of the assets, pledge, privilege or security given as collateral. The same applies to the portion of a deposit that exceeds the warranty limit provided for in 2° of Article L. 312-16 or any equivalent device.
"II.-In exceptional circumstances, where an internal swelling measure is implemented, certain eligible commitments may also be excluded in whole or in part of the value reduction or conversion measures, in particular:
« 1° Where it is not possible to reduce their value or conversion within a reasonable period of time;
« 2° Where this exclusion is necessary and proportioned to ensure continuity of critical functions and fundamental activities of a person subject to a resolution procedure;
« 3° When the exclusion is necessary and proportionate to avoid a large contagion movement that will profoundly disrupt the functioning of financial markets and beyond the national economy or that of another Member State of the European Union or that of the whole Union;
« 4° When the application of an internal swelling measure to these commitments would result in a loss of value such that losses incurred by other creditors would be greater than those resulting from the exclusion of these commitments from the application of the internal swelling measure.
"In the event of a total or partial exclusion of an eligible undertaking or of a class of commitments eligible for internal renaffing, the rate of reduction of value or conversion applied to other eligible commitments may be increased to reflect these exclusions, in accordance with the principle set out in section L. 613-57.
"These exclusions may be applied to exclude in whole or in part a commitment of the measures referred to in I.
"III.-Where an eligible undertaking or a class of eligible undertakings is excluded or partially excluded pursuant to II, and that the losses that would have been borne by that or those commitments have not been fully impacted on other creditors, the deposit and resolution guarantee fund, under the resolution financing device, or any other equivalent of a proceeding under another Member State may provide a contribution
« 1° Cover losses that have not been absorbed by eligible commitments and reduce the value of the net assets of the affected person to zero, pursuant to the 1st of section L. 613-55-3;
« 2° Acquire of the capital titles referred to in chapter II of Book II title, other property titles or other equity instruments of the individual in question, in order to recapitalize it under the 2nd of Article L. 613-55-3.
"IV.-The Security Fund for Deposits and Resolutions under Resolution or any equivalent device may only intervene under the III under the following conditions:
« 1° A contribution to the absorption of the losses of the person in question and its recapitalization was made by the holders of capital securities referred to in chapter II of Book II title I, other titles of ownership, additional equity instruments of Class 1, equity instruments of Class 2 equity or other commitments eligible by means of a reduction of value or a conversion or by any other means; the amount of this contribution may not be less than 8% of the total amount of the liability, including equity, of the person in question, assessed on the date of the resolution measure in accordance with the valuation provided for in section L. 613-47;
« 2° The contribution of the deposit and resolution guarantee fund under the resolution or any equivalent device shall not exceed 5% of the total amount of the liability, including equity, of the person in question, valued at the date of the resolution measure in accordance with the valuation provided for in section L. 613-47.
"V.-The contribution of the deposit and resolution guarantee fund under the resolution or any equivalent device provided for in the IV may be financed by:
« 1° The resources available to them pursuant to I and II of Article L. 312-7 or equivalent provisions of the legislation of another Member State;
« 2° The funds they may raise in three years in the form of exceptional contributions provided for in Article I of Article L. 312-7 or equivalent provisions of the legislation of another Member State;
« 3° When the funds mentioned in 1° and 2° are insufficient, the means of financing it mobilizes under Article L. 312-7 V or are mobilized under equivalent conditions by any other equivalent device of another Member State.
"VI.-In exceptional circumstances, additional funding may be sought from other sources where the following conditions are met:
« 1° The 5% threshold defined in IV is reached;
« 2° All unsecured and non-preferred obligations, other than eligible deposits defined in Article L. 312-4-1, have been fully converted or their value has been fully reduced.
"When these conditions are met, a contribution may be made by derogation from IV by the deposit guarantee fund and resolution on its available resources, under the resolution's financing mechanism, or by any other equivalent device of another Member State.
" VII.-The resolution panel shall notify the European Commission of the draft decisions it intends to take under the III. In the case that either the mobilization of the deposit and resolution guarantee fund, or the mobilization of additional funding resources under the VI, the resolution panel differs its decision pending the Commission's agreement. Its decision takes into account the possible conditions under which the Commission has made its agreement.
"Art. L. 613-55-2.-The resolution panel, when implementing an internal swelling measure, complies with the provisions of sections L. 613-55 and L. 613-55-1.
"Art. L. 613-55-3.-I.-The resolution panel assesses, on the basis of a valuation in accordance with section L. 613-47, the cumulative amount:
« 1° Where applicable, the amount to which the value of eligible commitments must be reduced so that the value of the net assets of the person subject to the resolution procedure is equal to zero;
« 2° Where applicable, the amount to which eligible commitments are to be converted into capital securities referred to in chapter II of Book II title I or other titles of ownership, in order to ensure compliance with the requirement of Category 1 core funds that are required for the person subject to the resolution procedure or, where applicable, to allow an establishment-relais to meet them.
"II.-The assessment referred to in I shall take into account any contribution to the capital of the person subject to resolution or, if any, of the establishment-relais by the deposit and resolution guarantee fund. The cumulative amount referred to in I must be sufficient to maintain an adequate level of confidence on the part of the contracts with respect to the person subject to a resolution procedure or the establishment-relais, and to allow him to continue, for at least one year, to meet the conditions of the licence and to carry out the activities for which he was approved.
"If the resolution panel uses an asset management structure pursuant to section L. 613-54, the amount to which the value of eligible commitments must be reduced reflects a prudent estimate of the equity needs of the asset management structure.
"III.-If the nominal value of the equity funds has been reduced pursuant to the provisions of subsection 9 of this section, that an internal relief measure has been implemented pursuant to the I of Article L. 613-55, and that there is a gap between the level of reduction decided on the basis of provisional valuation and the amounts of the final valuation referred to in Article L. 613-47, the provisions of
"IV.-The resolution panel shall establish and maintain procedures to ensure that evaluation and valuation are based on as recent and complete information as possible on the assets and liabilities of the person subject to a resolution procedure.
"Art. L. 613-55-4.-I.-When implementing an internal relief measure referred to in I of section L. 613-55 or a value reduction or conversion measure pursuant to the provisions of subsection 9 of this section, the resolution college shall take in respect of the holders of capital securities referred to in chapter II of title I of Book II or of any other property titles of that section:
« 1° Cancel the capital titles referred to in chapter II of title I of Book II or other titles of ownership or transfer them to the creditors concerned by the internal bailout;
« 2° Subject to the fact that, in accordance with the valuation carried out pursuant to section L. 613-47, the net value of the credit institution or of the investment enterprise subject to a resolution procedure is positive, proceed to the dilution of existing capital securities or other property titles following the conversion to capital securities or other property titles:
“(a) Additional Category 1 equity instruments and Category 2 equity instruments issued by the person subject to the resolution procedure pursuant to the authority referred to in L. 613-48;
“(b) Eligible commitments issued by the person subject to the resolution procedure pursuant to section L. 613-55.
"For the application of the 2°, the selected conversion rate allows to dilutely dilute existing capital securities or other property titles.
"II.-The measures referred to in I also apply to holders of capital securities or other property titles whose capital titles or other titles concerned have been issued or attributed to them under the following circumstances:
« 1° As a result of the conversion of debt instruments into capital securities or other property titles as a result of the application of contractual clauses attached to these debt instruments;
« 2° Following the conversion, pursuant to section L. 613-48-3, of additional Category 1 equity instruments and Category 2 equity instruments.
"III.-When examining the measures to be taken pursuant to I, the resolution panel shall take into account:
« 1° From the evaluation conducted pursuant to section L. 613-47;
« 2° The amount to which the nominal value of the Class 1 equity instruments shall be reduced;
« 3° The amount to which the nominal value of the additional Category 1 or Category 2 equity instruments shall be reduced or the amount to which these instruments shall be converted;
« 4° Cumulative amount assessed by him under section I L. 613-55-3.
"Art. L. 613-55-5.-I.- Notwithstanding any contractual clause providing for the reduction or conversion of the instruments referred to in 1°, 2° or 3° below and subject to the exclusions referred to in I and II of Article L. 613-55-1, the Resolution College shall implement a value reduction measure for internal renaffle under the following conditions:
« 1° Class 1 equity instruments are reduced under section L. 613-48-3;
« 2° If the reduction made pursuant to 1° above is less than the sum of the amounts referred to in 2° and 3° of the III of Article L. 613-55-4, the Resolution College reduces the principal amount of the additional Category 1 equity instruments;
« 3° If the reduction made pursuant to 1° and 2° above is less than the sum of the amounts referred to in 2° and 3° of III of Article L. 613-55-4, the resolution college reduces the principal amount of the class 2 equity instruments;
« 4° If the reduction made pursuant to 1°, 2° and 3° above is less than the sum of the amounts referred to in 2° and 3° of the III of Article L. 613-55-4, the resolution college reduces the principal amount of the subordinate claims other than the additional equity instruments of category 1 and the equity instruments of category 2 in respect of the hierarchy of the receivables applied in the framework of a liquidation procedure of the book VI
« 5° If the reduction made pursuant to the 1° to 4° above is less than the sum of the amounts mentioned in the 2° and 3° of the III of Article L. 613-55-4, the resolution college reduces the principal amount of the remaining eligible commitments, or the amounts due to them, with the exception of those mentioned in the 6°, in accordance with the hierarchy of the claims applied in the framework of a liquidation procedure VI
« 6° If the reduction made pursuant to 1° to 5° above is less than the sum of the amounts referred to in 2° and 3° of the III of Article L. 613-55-4, the resolution college reduces the principal amount of the sums due to the privileged or secured creditors in the following order:
"In the first place, the portion of the deposits of natural persons and micros, small and medium-sized enterprises, within the meaning of Article 2 of the annex to Recommendation 2003/361/EC of the Commission of 6 May 2003 defined according to their annual turnover, eligible for the guarantee established by Article L. 312-4 that exceeds the ceiling of this guarantee, as well as the deposits that would be eligible for the guarantee
"in the second place and according to their rank, eligible commitments to other privileged or guaranteed creditors who are not excluded under Article L. I and II. 613-55-1.
"The implementation of a conversion measure for internal swelling meets the same requirements.
"In the case that the internal swelling measure should have reached the deposits covered under 2° of Article L. 312-16 if they had not benefited from the exclusion referred to in 1° of Article L. 613-55-1, the deposit and resolution guarantee fund is called to a maximum of the amounts to which such deposits should have been reduced or converted. The deposit and resolution guarantee fund, under the deposit guarantee mechanism, shall be equal to the corresponding amount in the books of the credit institution subject to the internal rebate in accordance with the terms and conditions established by the resolution college without the amount being greater than the amount it would have paid if it had to intervene to compensate the holders of the deposits covered under section 312 of Article 31-5.
"The deposit and resolution guarantee fund may not be required to participate in the recapitalization costs of the credit institution concerned or the establishment-relais.
"The holders of the covered deposits to which the deposit and resolution guarantee fund has replaced shall retain these deposits, with the privilege conferred on them by section L. 613-30-3.
"II.-Without prejudice to the exclusions set out in accordance with I and II of Article L. 613-55-1, where the resolution college implements a value reduction or conversion measure, it distributes the losses represented by the sum of the amounts referred to in 2° and 3° of Article L. 613-55-4 between each class of equity and of commitments eligible for their rank in the hierarchy
"III.-A value reduction or conversion measure referred to in I shall apply, if any, under the same conditions to the residual value of an instrument referred to in 2° to 4° of I that has already been reduced under contract stipulations.
"IV.-Without prejudice to the I and II of Article L. 613-55-1, the Resolution College does not reduce or convert a commitment as long as other commitments are subordinate to it.
"Art. L. 613-55-6.-The Resolution College shall exercise the powers of depreciation and conversion in respect of an undertaking resulting from a derivative product within the meaning of 5 of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 only to the liquidation of the positions relating to these derivatives or after it. At the opening of the resolution procedure, the resolution panel may terminate derivative contracts or liquidate their positions.
"When an undertaking resulting from a contract referred to in 4 to 10 of section C of Schedule I to Directive 2004/39/EC of the European Parliament and the Council of 21 April 2004 was excluded from the application of an internal relief measure implemented under section II of Article L. 613-55-1, the Resolution College is not required to terminate the derivative contracts referred to above or to liquidate the related positions.
"In the context of the valuation pursuant to Article L. 613-47, the resolution panel or the independent expert shall take into account the existing compensation agreements and determine the respective obligations of the parties on a net basis in accordance with the stipulations of these agreements.
"Art. L. 613-55-7.-When implementing a conversion measure pursuant to section L. 613-48-1 or section L. I. 613-55, the resolution panel may apply different conversion rates according to the various categories of equity instruments and commitments. These conversion rates are determined taking into account the hierarchy of the categories of passive instruments.
"Art. 613-55-8.-I.- Within the month following the implementation of an internal swelling measure in respect of a person referred to in I of section L. 613-34 for the purposes indicated in 1° of section L. 613-55, persons referred to in section L. 511-13 or in section L. 5321-1, after the deliberation of their councils
"This reorganization plan defines, in accordance with the objectives and guidance adopted by the resolution panel, measures to restore within a reasonable time the long-term viability of that person or part of his or her activities.
"This plan must be compatible if necessary with the restructuring plan established within the framework of the implementation of the legal regime of the Union State aids.
"II.- Within a period of one month after the implementation of an internal swelling measure, under the conditions referred to in 1° of Article L. 613-55, in respect of two or more entities of the same group, the parent company shall prepare and submit to the approval of the resolution board, as a consolidated resolution authority, a plan for reorganization of the activities of the whole group of enterprises
"In a period of fourteen days from the submission to the resolution panel of the reorganization plan, the resolution panel shall forward an evaluation of the plan to the single resolution council. When directed by the Single Resolution Council, the Resolution College shall notify the persons referred to in Article L. 511-13 or Article L. 532-2 or the persons appointed pursuant to Article L. 613-51-1 of the elements of the plan to be amended. Within fourteen days from the date of receipt of this notification, the persons referred to in Article L. 511-13 or Article L. 532-2 or the person or persons appointed under Article L. 613-51-1 submit an amended plan for approval by the resolution panel.
"The resolution college communicates the plan of reorganization of activities to the resolution authorities of the subsidiaries of the parent company and to the European Banking Authority.
"III.-In exceptional circumstances the one-month period referred to in I and II may be extended for a maximum of two months.
"Art. L. 613-55-9.-I.- Within one month of the date of transmission of the reorganization plan for the activities referred to in section L. 613-59-8, the resolution panel assesses the ability of the plan to restore the long-term viability of the person(s) concerned. This evaluation is conducted in accordance with the Supervisory College.
"The plan is approved if this evaluation is positive.
"II.-If the resolution panel finds that the plan will not achieve the objective referred to in I, it shall notify the persons referred to in section L. 511-13 or 4 of section L. 532-2, after deliberation of their board of directors, supervisory board or any other body exercising equivalent oversight functions, or to the person or persons appointed under the supervision of section L 613-5.
"III.- Within two weeks after the date of receipt of the notification, the person(s) referred to in II submit an amended plan for approval by the resolution panel. After assessing the modified plan, the resolution panel shall notify them, within one week, whether it considers that the difficulties have been resolved or whether further amendments are necessary.
"IV.-The person(s) referred to in the II shall implement the approved reorganization plan and submit a report on the progress made in its implementation to the resolution panel at least every six months.
"V.-This plan can be revised at the request of the resolution college, in accordance with the supervisory college.
"Art. L. 613-55-10.-By derogation from sections L. 613-55-8 and L. 613-55-9, where the resolution board directly controls the person subject to a resolution procedure pursuant to the provisions of paragraph 1 of this subsection, the College of Supervisory shall prepare the plan for reorganization of the activities of that person under section L. 613-55-8.
"Art. A. 613-55-11.-I.-When the resolution college implements a measure in accordance with the provisions of subsection 9 of this section, section I of section L. 613-55, section I of section L. 613-55-4, section I of section L. 613-56 and section L. 613-56-1, notwithstanding any provision or provision to the contrary
"II.-When pursuant to section L. 613-55 the resolution college reduces to zero the principal or the amounts due under a liability element, that liability element, and any obligation or debt arising out of it that is not expired at the time the measure is implemented, is deemed to be extinguished in capital and interest and may not be enforceable in any subsequent procedure relating to the person subject to a resolution procedure
"III.-When the resolution college partially reduces the principal or amounts due under a liability element pursuant to section L. 613-55:
« 1° The liability element is extinguished to the reduced amount;
« 2° The instrument or contract resulting from the initial undertaking shall continue to apply with respect to the residual amount of the principal or the outstanding amount of the undertaking, subject to any change in the amount of interest payable to take into account the reduction made by the principal and any other changes in the conditions that the resolution authority may decide under Part II of section L. 613-56-1.
"Art. L. 613-55-12.-The conversion of eligible commitments or additional equity instruments of category 1 or category 2 to capital securities referred to in chapter II of Book II title I or to other titles of ownership shall result in its full effect without a provision governing statutes or a stipulation that would hinder or subject it to a particular procedure.
"Art. A. 613-55-13.-I.-Where an undertaking governed by the legislation of a third country is not excluded under section II of section L. 613-55-1 or does not constitute a deposit referred to in the first dash of section I of section L. 613-55-5, the persons referred to in section I of section L. 613-34 shall not be entitled to subscribe to that undertaking unless the contract includes a clause
"The resolution panel may require the persons concerned to provide the authorities with legal advice regarding the enforceability and effectiveness of such a clause.
"The above provisions do not apply in the event that the resolution panel considers that commitments or instruments may be subject to its powers of depreciation and conversion pursuant to the legislation of a third country or to a binding agreement with it.
"II.-The absence of the clause required in the first paragraph of I does not impede the exercise by the resolution college of its prerogatives.
« Sub-Paragraph 7
" Provisions relating to the implementation of other resolution measures
"Art. L. 613-56.-I.-The resolution panel may require the issuance of new capital titles referred to in chapter II of Book II title I or other property titles or other equity instruments, including preferential shares and conditional convertible instruments by the following persons:
« 1° The persons referred to in Article L. 613-34 subject to a resolution procedure;
« 2° A parent institution in a Member State, a parent institution in the Union, a financial holding company, a financial holding company, a joint holding company, a joint holding company, a parent holding company in a Member State, a financial holding company in the Union, a joint holding company mother in a Member State or a joint holding company mother in the Union, within the meaning of Article 4, paragraph 1, of the Regulation (EU) No 575/2013 of the European Parliament and of the
"The resolution panel may delete the preferential right of subscription for the entire capital increase or for one or more portions of that increase, as provided by the articles L. 225-135 and L. 225-136 to L. 225-138-1 Commercial code.
"II.-The resolution panel may limit or prohibit the distribution of a dividend to holders of capital securities referred to in chapter II of Book II title I or other property titles issued by the person subject to resolution procedure.
"III.-The resolution panel ensures that the voting rights conferred by the capital titles referred to in chapter II of Book II title I or other titles of ownership of the person subject to a resolution procedure are not exercised during the resolution period.
"Art. L. 613-56-1.-I.-Except in the cases provided for in 2° I of Article L. 613-55-1, the resolution panel may cancel the instruments of debt and other eligible commitments issued by a person referred to in Article L. 613-34 subject to a resolution procedure.
"II.-The resolution panel may amend the maturity of debt instruments and other eligible commitments issued by a person referred to in I of Article L. 613-34 subject to a resolution procedure. It may also amend the amount or the date of due interest payable under these instruments or commitments, including by suspending their payment on an interim basis.
"Art. L. 613-56-2.-I.-Subject to the provisions of the III and V of section L. 613-57-1, the resolution panel may release from any undertaking or security, when transferred, the financial instruments defined in section L. 211-1, rights, assets or commitments of the person in question.
"A right of compensation granted under the provisions of this section shall not be regarded as a commitment or security within the meaning of the preceding paragraph.
"II.-The resolution panel may restrict the rights enjoyed by creditors of a person referred to in Article L. 613-34 subject to a resolution procedure for security rights encumbering the assets of that person. It takes into account the potential impact of this decision on the orderly functioning of financial markets. The restriction shall take effect from the publication of the information provided for in the provisions of Article L. 613-58 and shall end on the working day following that of the publication at midnight.
"In cases where section L. 613-57-2 is applicable, the resolution panel ensures that the restrictions imposed under the previous paragraph are applied in a consistent manner to all entities of the group that are subject to a resolution measure.
"Restrictions under the first paragraph may not apply to existing rights under a security right held by the systems referred to in I of Article L. 330-1 or their managers or by equivalent systems, central banks, compensation chambers or central counterparties on assets that are pledged or provided as margin or collateral by the person subject to a resolution procedure.
"Art. L. 613-56-3.-I.-For the implementation of one or more resolution measures pursuant to the provisions of sub-paragraphs 3, 4.5 or 6 of paragraph 2 of this subsection, the resolution college may terminate the financial contracts and, for the implementation of Article L. 613-55-6, the derivative contracts referred to in 4 to 10 of section C of EU/39/
"II.-For the implementation of a resolution measure referred to in I, the resolution panel may amend or terminate the terms of a contract entered into by a person referred to in I of Article L. 613-34 subject to a resolution procedure.
"III.-The purchaser is a right-hand substitute for the person who has been transferred pursuant to sections L. 613-52, L. 613-53 or L. 613-54 for the application of the contracts being executed by the purchaser.
"Despite any provision or stipulation to the contrary, no termination or compensation may take place solely because of this transfer. This provision is without prejudice to the right of any employee of a person who has been transferred to break his employment contract.
"Art. L. 613-56-4.-The resolution panel may suspend any obligation to pay or deliver financial instruments resulting from a contract to which a person referred to in I of section L. 613-34 is subject to a resolution procedure. This suspension comes from the publication of the Notice of Suspension referred to in Article L. 613-58 and ends on the working day following that of the publication at midnight. The resolution panel takes into account the potential impact of this decision on the orderly functioning of the financial markets.
"When an obligation to pay or deliver financial instruments becomes payable during the suspension period, the payment or delivery is due immediately upon the expiry of the suspension period.
"The suspension of payment or delivery of financial instruments under the first paragraph shall not apply:
« 1° Deposits that are guaranteed under Article L. 312-4-1 or equivalent;
« 2° The obligations of payment and delivery of financial instruments to participants in the systems referred to in Article L. 330-1 or equivalent systems, the managers of these systems, central banks, compensation chambers or central counterparties;
« 3° Financial instruments and cash deposits that are related to the guarantee provided for in Article L. 322-1 and equivalent instruments and deposits.
"If the obligations for payment or delivery of financial instruments of a person subject to a resolution procedure resulting from a contract are suspended under the first paragraph, the obligations for payment or delivery of financial instruments of the considerations of that person resulting from that contract shall be suspended for the same period.
"Art. L. 613-56-5.-I.-Subject to the continued execution of the obligations for the guarantee or payment and delivery of financial instruments under the contract, the resolution panel may suspend the termination rights of any party to a contract with:
« 1° A person referred to in Article L. 613-34, subject to a resolution procedure;
« 2° A subsidiary of the person mentioned at 1° when the following conditions are met:
“(a) The performance of the obligations under this contract is guaranteed by that person;
“(b) The cancellation rights under this contract may be exercised only in the event of insolvency of the person or a deterioration in the financial situation of the person;
"(c) In the event that the property, rights or obligations of that person have been transferred or are likely to be transferred:
"-all assets and liabilities of the subsidiary relating to this contract have been or may be transferred to the acquirer and the obligations arising therefrom be performed by the acquirer;
"-the measures taken by the resolution panel allow for the fulfilment of these obligations.
"The suspension comes from the publication of the Notice of Suspension referred to in Article III L. 613-58 and ends on the working day following the publication, at midnight in the Member State where the resolution authority of the person subject to a resolution procedure is established. When it concerns parties to a contract entered into by a subsidiary established in another Member State of the European Union, the term of the suspension is determined on the basis of the working days in that State and the local time.
"When deciding to suspend termination rights, the resolution panel takes into account the potential impact of this decision on the orderly functioning of the financial markets.
"No suspension of termination rights is applicable to systems referred to in Article L. 330-1 or to their managers, central banks, compensation chambers or central counterparties.
"II.-Subject to the provisions of sections L. 613-45-1 and L. 613-50-4, the cancellation rights that have been suspended under I may be exercised at the end of the suspension period under the following conditions:
« 1° Where the rights and obligations resulting from the contract have been transferred to another entity, a person with the counterparty status may not exercise the right of termination in accordance with the terms of that contract until the subsequent prosecution or occurrence of a fact constituting a case of termination of that contract;
« 2° When the person referred to in 1° of the I retains the rights and obligations resulting from the contract and the resolution college has not implemented any internal relief measures pursuant to 1° of the I of section L. 613-55, a person with the quality of counterparty may exercise the right of termination in accordance with the terms of that contract.
"III.-By derogation from I and II, a person may exercise a right of termination provided for by a contract before the expiry of the suspension period referred to in I if the resolution panel advises that the rights and commitments resulting from that contract are not transferred to another entity or are not liable to be the subject of an internal relief measure pursuant to 1° of Article L 613-55.
"IV.-A decision made under section II of section L. 613-56-2 or section L. 613-56-4 does not constitute a contractual non-performance of the obligations of guarantee or payment or delivery of financial instruments referred to in I.
"Art. L. 613-56-6.-On the request of the resolution panel and under the conditions and duration determined by the resolution panel, the President of the Financial Markets Authority or its representative shall require the contracting company to suspend all or part of the negotiations of the financial instruments admitted to a regulated market, issued by a person referred to in I of section L. 613-34 who has been the subject of a resolution measure.
"Art. L. 613-56-7.-The resolution panel may take any action necessary to implement a measure taken pursuant to subsection 9 of this section, section I L. 613-55, section I of section L. 613-55, section I of section L. 613-55-4, section I of section L. 613-56 and section L. 613-56-1, including:
« 1° The modification of all relevant records;
« 2° The deletion of the negotiation of capital securities referred to in chapter II of Book II title I or other titles of ownership or instruments of debt;
« 3° Admission to the negotiation of new capital titles referred to in Chapter II of Title I of Book II or other titles of ownership;
« 4° The readmission of any debt instrument that has been subject to a reduction in its value.
"It may require the President of the Autorité des marchés financiers to take any necessary action to implement the provisions mentioned above.
"For the application of the 2°, at the request of a resolution college, the president of the Autorité des marchés financiers or its legally designated representative requires the market company to cancel the negotiations of all or part of the financial instruments admitted to a regulated market, issued by a person who has been the subject of a resolution measure.
"Despite the provisions of sections L. 412-1 and L. 421-14, the 3rd and 4th are implemented without the need to collect the agreement or consent of the issuer or to proceed with the advertising measures that these articles provide, including the prior publication of a prospectus.
“Paragraph 3
" Provisions relating to the protection of rights under a resolution procedure
"Art. The resolution panel shall ensure that no holder of any capital securities referred to in chapter II of Book I or any other property or creditor of a person referred to in section I of section L. 613-34, as well as the deposit and resolution guarantee fund under section L. 613-55-5, is exempted or otherwise disposed of,
"II.-After the implementation of a measure taken pursuant to sub-sections 10 and 11 of this section, the resolution panel shall promptly conduct independent expertise to:
« 1° To determine the treatment to which the holders of capital securities referred to in chapter II of Book II title I or other property titles or creditors of the persons referred to in I of Article L. 613-34 as well as the deposit and resolution guarantee fund if those persons had been subject to judicial liquidation proceedings;
« 2° To assess the level of losses they actually suffered as a result of the measures in question.
"The assessment conducted pursuant to 1° above shall not take into account any public financial support, including the deposit and resolution guarantee fund or any equivalent device.
"III.-When the expert has determined that the holders of capital securities referred to in chapter II of title I of Book II or other property titles, the creditors or the deposit and resolution guarantee fund under the deposit guarantee mechanism have suffered losses greater than the ones they would have supported if the persons referred to in Article I of L. 613-34 had been the subject of a resolution procedure of the college
"Art. Section 613-57-1.-I.-When making a decision on the transfer of a portion of the property, rights and obligations of a person subject to a resolution procedure for the benefit of another entity or when implementing a measure provided for in section II of section L. 613-56-3, the resolution panel shall, subject to the provisions of sections L. 613-50-4, L. 613-56-2, L. 613-5
"The same is true when the resolution panel has passed the transfer of a portion of the property, rights and obligations of a business institution or an asset management structure to another person or when it is implementing a measure under section L. 613-56-3 II.
"II.-The rights and obligations arising from a financial guarantee contract with transfer of ownership, mutual compensation agreement or compensation agreement in which a person referred to in section I of section L. 613-34 subject to a resolution procedure may not be subject to a partial transfer or be amended or terminated when the resolution college implements the provisions of section II and IV of section 613-2. The rights and obligations that may be compensated or, after termination of their term, be compensated or converted to a single balance.
"III.-When the resolution panel takes a resolution action, it shall ensure, with respect to the commitments covered by a guarantee contract, that the following provisions are met:
« 1° Debts and receivables of the grantor and the beneficiary of the guarantee, as well as secured financial obligations, cannot be transferred separately;
« 2° The modification or termination of a guarantee contract may not have the effect of putting an end to the guarantee of the financial obligation.
"IV.- Assets, rights and obligations that constitute all or part of a structured funding mechanism in which a person under the resolution procedure participates cannot be partially transferred or modified or terminated by the exercise of a resolution.
"V.-By derogation from II to IV, in order to ensure the availability of funds under one of the guarantees mentioned in II of Article L. 312-4, the Resolution College may:
« 1° Transfer funds that fall under a financial guarantee contract with transfer of ownership, mutual compensation agreement or compensation agreement, without transferring other assets, rights or obligations of the same contract;
"2° Transfer, modify or terminate rights or obligations that fall under a financial guarantee contract with transfer of ownership, mutual compensation agreement, compensation agreement, a guarantee contract or a structured financing mechanism, without transferring the funds mentioned in the first paragraph of this V.
"Art. L. 613-57-2.-The implementation of a partial transfer of property, rights and obligations of a person subject to a resolution procedure or a measure under Part II of section L. 613-56-3 does not affect the proper functioning and the rules governing the systems referred to in section L. 330-1.
“Paragraph 4
“Procedural obligations and respect for the rights of appeal
"Art. L. 613-58.-I.-When a resolution is adopted with respect to a person referred to in I of section L. 613-34, the resolution panel shall fulfil the obligations set out in II and III as soon as circumstances permit.
"II.-The resolution panel shall notify the following persons and authorities of its decision:
« 1° Minister responsible for the economy;
« 2° The European Commission;
« 3° The European Central Bank;
« 4° The European Committee for Systemic Risk;
« 5° The European Banking Authority;
« 6° The European Insurance and Pension Authority;
« 7° The European Financial Markets Authority;
« 8° The Bank of France;
« 9° The High Financial Stability Council;
« 10° Supervisory college;
« 11° The deposit and resolution guarantee fund;
« 12° The system manager referred to in Article L. 330-1 in which the company concerned participates;
« 13° The competent authorities, within the meaning of articles L. 511-21 and L. 532-16, of the Member States of the European Union in which the company referred to in the first paragraph established a branch;
« 14° When the data subject is monitored on a consolidated basis pursuant to subsection 2 of section 1 of chapter III of this title, the authority of another Member State of the European Union responsible for monitoring on a consolidated basis, and the resolution authority of that State.
"III.-The resolution panel publishes on the website of the Autorité de contrôle prudentiel et de résolution its decision or a communiqué presenting the effects of the resolution measure, especially for retail customers. Where applicable, the notice shall also be published specifying the conditions and duration of the suspension referred to in section L. 613-56-4, L. 613-56-5 or L. 613-56-6 and the restriction referred to in section II of section L. 613-56-2, as well as the conditions for the implementation of the measures taken pursuant to 2°, 3° and 4° of section L. 613-56-7.
“The resolution panel ensures that the information provided in the previous paragraph is also published on:
« 1° The website of the person concerned by the decision or, if not, on any other means ensuring sufficient advertising;
« 2° The Autorité des marchés financiers website when the financial instruments issued by that person are allowed to negotiate on a regulated French market;
« 3° The website of the European Banking Authority.
"IV.-When the financial instruments issued by the person concerned by the decision are not allowed to negotiate on a regulated market, the resolution panel shall ensure that the information provided in the first paragraph of the III is communicated to the holders of capital securities referred to in chapter II of title I of Book II or other titles of ownership and to the creditors of that undertaking of which it is aware. The person concerned shall make available to the resolution panel a list of those holders of capital securities or other titles of property and creditors.
"Art. L. 613-58-1.-The cancellation of the measures taken pursuant to subsections 9 and 10 does not affect the validity of the acts taken for their application when the questioning of these acts is likely to affect the interests of third parties, except in the event of fraud.
"In the case set out in the preceding paragraph, compensation for applicants is limited to compensation for losses incurred.
"The judge's appreciation is based on the complex economic assessments of the facts carried out by the resolution college.
"Subsection 11
“ Provisions relating to the resolution of transnational groups
“Paragraph 1
" Provisions relating to the College of Resolution Authorities and the College of European Resolution Authorities
"Art. L. 613-59.-I.-When the resolution college exercises the responsibilities set out in this section at the group level, it shall establish a College of Resolution Authorities to carry out the missions referred to in L. 613-40, L. 613-40-1, L. 613-43, L. 613-43-1, L. 613-44, L. 613-60, L. 613-60-1 and L. 613-60-2 The Resolution College or its representative chairs the College of Resolution Authorities.
"II.-The College of Resolution Authorities includes:
« 1° The resolution authorities of each Member State in which a subsidiary is established under consolidated supervision, a financial company holding mother in a Member State or in the Union referred to in 4° I of Article L. 613-34, a financial company holding joint mother in a Member State referred to in 5° I of Article L. 613-34 or a branch of significant importance;
« 2° The Supervisory College or, where applicable, the European Central Bank and the competent authorities of the Member States whose resolution authority is a member of the College of Resolution Authorities. When the competent authority is not the central bank, this authority may be accompanied by a representative of the central bank;
« 3° The competent ministers when they are not the resolution authorities members of the College of Resolution Authorities;
« 4° The deposit and resolution guarantee fund and the authorities or persons responsible for the deposit guarantee system of other Member States, when the resolution authorities of these Member States are members of the College of Resolution Authorities.
"The European Banking Authority participates in the work of the college without a deliberate vote.
"III.-The College of Resolution Authorities has a mission:
« 1° To exchange information of interest in the development of preventive group resolution plans and the application of preventive or resolution measures to the group;
« 2° Develop the group's preventive resolution plan referred to in sections L. 613-40 and L. 613-40-1;
« 3° To conduct the assessment of the group referred to in section L. 613-41 and exercise the powers referred to in sections L. 613-43 and L. 613-43-1;
« 4° Decide on the need to establish and conclude an agreement on the group resolution system pursuant to sections L. 613-60, L. 613-60-1, L. 613-60-2 L. 613-61-1 and L. 613-61-2;
« 5° Coordinating public communication of group resolution strategies and mechanisms;
« 6° Coordinate the use of funding mechanisms for resolution;
« 7° Decide on the minimum requirements imposed on groups at the consolidated and subsidiary levels pursuant to the provisions of sections L. 613-44.
"In addition, the Colleges of Resolution Authorities may be responsible for issues related to the resolution of transnational groups.
"IV.-When a parent company, credit institution or investment company established in the Union has in a third country a subsidiary or branch that would be considered to be of significant importance if located in the Union, the resolution authorities of that third country may be invited, at their request, to participate in the College of Resolution Authorities as an observer, provided that they are subject to obligations
"V.-The Resolution College sets out the procedures for the operation of the College of Resolution Authorities and coordinates its activities.
"VI.-If there are other instances that meet the above-mentioned conditions, the Resolution College is not required to establish a College of Resolution Authorities. These bodies shall assume the same functions as those mentioned in the III and shall apply all the provisions set out in this section and in sections L. 612-8-1, L. 613-59-2 and L. 632-1 A, including those relating to the quality of a member and participation in colleges of resolution authorities. In this case, all references to the Colleges of Resolution Authorities in this section also agree as references to these other instances.
"Art. L. 613-59-1.-I.-When a credit institution, an investment company or a parent company established in a non-member State of the European Union have in France and in at least one other Member State of the Union a subsidiary or branch considered to be of significant importance, the resolution college, in conjunction with the resolution authorities of the Member States concerned, establishes a college of European resolution authorities.
"II.-The College of European Resolution Authorities shall exercise the powers referred to in Article L. 613-59 in respect of subsidiaries and, where applicable, in respect of branches.
"III.-Where subsidiaries or branches of significant importance established in a Member State are held by a holding financial company established in France pursuant to the last paragraph of Article L. 511-41-1 and that the Autorité de contrôle prudentiel et de résolution is the consolidated supervisory authority of the group to which the company belongs, the College of European Resolution Authorities is chaired by the Resolution College.
"IV.-If there are other bodies including a College of Resolution Authorities established under section L. 613-59 that meet the above conditions, the Resolution College is not required to establish a College of European Resolution Authorities. The bodies in question shall assume the same functions as those mentioned in this article and shall apply all provisions, including the procedure provided for in this article and articles L. 612-8-1, L. 613-59-2 and L. 632-1 A, including those relating to the quality of a member and participation in colleges of European resolution authorities. In this case, all references to the Colleges of European Resolution Authorities in this section also agree as references to these other bodies.
"Subject to paragraphs III and IV of this article, the provisions of Article L. 613-59 apply to colleges of European resolution authorities.
"Art. L. 613-59-2.-When the resolution panel exercises the powers set out in this section at the group level, it coordinates the exchange of all relevant information between the resolution authorities. In particular, it shall, in due course, transmit to the resolution authorities of other Member States all relevant information in order to facilitate the execution of the tasks referred to in paragraphs 2° to 7° of Article L. 613-59.
“Paragraph 2
"Resolution of groups for which the resolution college is the consolidated resolution authority
"Art. L. 613-60.-When notified by another resolution authority of a decision and measures equivalent to those referred to in I of Article L. 613-61-1 relating to the subsidiary of a group of which it is the consolidated resolution authority, the resolution college shall, after consulting the other members of the relevant resolution authority, assess the likely impact of these measures on the group and other entities of the European Union. In this capacity, he appreciates, inter alia, whether the measures in question would have the effect of placing another entity of the group in another Member State of the European Union under the conditions of triggering a resolution procedure referred to in article L. 613-49, or, where applicable, those of article L. 613-49-1, article I and II.
"The resolution panel shall conduct the above assessment no later than twenty-four hours after the notification is received under the first paragraph. This period may be extended with the agreement of the resolution authority that has seized it.
"When the resolution panel finds that the measures referred to in the first paragraph would have the effect of placing an entity of the group in another Member State of the European Union under the conditions of triggering a resolution procedure, it proposes to the College of Resolution Authorities, under the terms of time provided for in the preceding paragraph, a group resolution device.
"Art. L. 613-60-1.-I.-When it decides that a parent company in the Union established in France meets the conditions for the initiation of a resolution procedure referred to in Article L. II. 613-49 or, where applicable, to the I and II of Article L. 613-49-1, the resolution college shall promptly notify the information referred to in 1° and 2° of the I supervision of section L. 613.
"II.-The measures referred to in 2° I of Article L. 613-61-1 may include the establishment of a group resolution device in the following cases:
« 1° The measures envisaged at the level of the parent company are likely to place an entity of the group in another Member State under the conditions of triggering a resolution procedure;
« 2° The measures envisaged are insufficient to stabilize the situation or are not likely to produce an optimal result;
« 3° Competent resolution authorities of one or more branches of the group found that they meet the conditions for triggering a resolution procedure;
« 4° The measures envisaged will benefit the group's subsidiaries in a way that justifies a group resolution device.
"The group resolution system is decided and implemented under the conditions set out in section L. 613-60-2.
"III.-When the measures envisaged by the resolution college pursuant to I do not include a group resolution device, the college shall make its decision after consultation with other members of the resolution authority panel.
“The decision of the resolution panel takes into account the financial stability of the Member States concerned. It is consistent with pre-established preventive resolution plans unless the other relevant resolution authorities consider that the objectives of the resolution will be better met by other means.
"Art. L. 613-60-2.-I.-The group resolution system provided for in section L. 613-60 shall meet the following conditions:
« 1° It complies with the preventive resolution plans established pursuant to paragraph 3 of subsection 3 of this section, except in cases where other relevant resolution authorities consider that the objectives of the resolution will be better met by other means;
« 2° It describes the resolution measures that the resolution panel will have to take with respect to the parent company and that the other relevant resolution authorities will have to take with respect to certain entities of the group in order to achieve the objectives of the resolution referred to in I of Article L. 613-50 and to comply with the principles referred to in 4th of Article L. 612-1, in II of Article L. 613-50, as well as at 613-2.
« 3° It specifies the conditions for the coordination of the implementation of the resolutions;
« 4° It establishes a funding plan that takes into account the preventive group resolution plan, the principles of shared responsibility established pursuant to the 7° of the V of L. 613-38, and the conditions for the intervention of the deposit and resolution guarantee fund provided for by the 15° of Article L. 312-16.
"II.-When the measures contemplated by the resolution panel include a group resolution device, the panel is the subject of a joint decision of the resolution panel and the competent resolution authorities of the relevant subsidiaries.
"For this purpose, the resolution panel may request the mediation of the European Banking Authority pursuant to Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
"A common decision on a group resolution system is applicable in France.
"III.-When the resolution panel takes resolution measures with respect to any entity of a group outside a group resolution mechanism, it provides all the necessary cooperation within the College of Resolution Authorities to achieve a coordinated resolution strategy of all entities of the group whose failure is proven or predictable.
"IV.-The Resolution College regularly transmits to the members of the College of Resolution Authorities full information on all resolution measures it takes with respect to any entity of a group and their status of advancement.
“Paragraph 3
“Resolution of groups for which the resolution college is an individual resolution authority
"Art. L. 613-61.-The resolution panel shall provide all necessary cooperation to the consolidated resolution authority and other authorities of the Colleges of Resolution Authorities defined in sections L. 613-59 and L. 613-59-1.
"When the resolution authority of another Member State reduces or converts its own instruments of funds referred to in Article L. 613-48 or implements one or more resolution measures, the Resolution College shall provide all the necessary cooperation to ensure its effectiveness.
"Art. 613-61-1.-I.-When it decides that a person referred to in Article L. 613-34 who is a subsidiary of a group within the meaning of Article L. 511-20 shall meet the conditions for the opening of a resolution procedure referred to in Article L. 613-49, or, where applicable, those referred to in Article L. 613-49
« 1° The decision that the person meets the conditions for opening a resolution procedure;
« 2° Resolutions or measures taken pursuant to Book VI of the Trade Code that the resolution panel is considering to implement.
"II.-When the consolidated resolution authority makes it known to it, after consulting the other members of the College of Resolution Authorities, that, according to its assessment, the measures provided for in 2° of I are not likely to place an entity of the group located in another Member State under the conditions of triggering a resolution procedure, the resolution panel may implement these measures.
"When the consolidated resolution authority makes known to the resolution panel that these measures could have the effect of placing another entity of the group under the conditions of triggering a resolution procedure, the resolution panel cooperates with the resolution authority panel to arrive at a group resolution device.
"In the absence of an assessment or proposal by the consolidated resolution authority of a resolution mechanism within 24 hours of the notification of the measures referred to in 2° I of this article, possibly extended under the second paragraph of Article L. 613-60, the resolution panel may implement these measures.
"Art. L. 613-61-2.-I.-When the consolidated resolution authority consults with it to reach a common decision on a group resolution device referred to in L. 613-60-2, the resolution panel shall provide all the necessary cooperation.
"II.-When the resolution panel disagrees with the group resolution system proposed by the consolidated resolution authority and considers, for reasons of financial stability, that it must take further resolution measures with respect to a person referred to in Article I L. 613-34, it shall notify its decision, the reasons for its disagreement and the resolution measures envisaged under Article L. 613-34. In this case, the resolution panel takes into account the group's preventive resolution plans, the potential impact of the measures envisaged on the financial stability of the Member States concerned and the potential impact of these measures on other entities of the group.
"Subsection 12
"Relations relating to relations with the authorities of non-EU States in a resolution procedure
"Art. L. 613-62.-I.-The provisions of this Article shall apply if there is no agreement between the European Union and a non-EU State and in cases where an existing agreement does not deal with the recognition and enforcement of the resolution procedures in force in that State.
"II.-Without prejudice to the VIII, when the Resolution College participates in a College of European Resolution Authorities referred to in Article L. 613-59-1, the Resolution College and Resolution Authorities are working together to reach a common decision on the possibility of recognizing the resolution procedures of a non-member State of the European Union relating to a credit institution or an investment company of that mother State or to a subsequent company
« 1° It has subsidiaries approved as a credit or investment establishment established in at least two Member States or branches referred to in the first paragraph of Article L. 511-10 located in at least two Member States and considered by them as of significant importance;
« 2° It has assets, rights or commitments in at least two Member States or are governed by the law of those Member States.
"III.-When a joint decision on the recognition of the resolution procedures of a non-member country of the European Union has taken place, the resolution panel is assisting in ensuring the implementation of the resolution procedures in France.
"IV.-In the absence of a joint decision or in the absence of a college of European resolution authorities and without prejudice to the VIII, the resolution college shall take a decision on the recognition and enforcement of the resolution procedures in force in a non-EU State relating to a credit institution or an investment company in a non-member State or a parent company.
"The decision takes into account the interests of each Member State in which a credit or investment company or a parent company of a non-member State of the European Union operates, including the potential impact of the recognition and enforcement of the resolution procedures of the State in question on the other entities of the group and on financial stability in the Member States concerned.
"V.-The resolution panel may decide:
« 1° To implement resolution measures in respect of:
“(a) Assets of a credit institution, an investment company or a parent company of a third country that are located in France or are governed by French law;
“(b) Rights or obligations of a credit institution in a non-member State of the Union that are registered in its accounts by one of its branches referred to in I of Article L. 511-10 or that are governed by French law or whose claims are paid in France;
« 2° To carry out the transfer of capital securities referred to in chapter II of title I of Book II or other titles of ownership for the benefit of a subsidiary of the Union authorized in a Member State, including by requiring another person to take measures to effect this transfer;
« 3° Implement the measures referred to in Article L. 613-56-2 and Articles L. 613-56-4 and L. 613-56-5 with respect to the rights of any party to a contract with an entity referred to in Article II, where such measures are necessary to implement the resolution procedures of a non-member State of the European Union;
« 4° Subject to the fact that the essential obligations of the contract, including payment and delivery obligations and the provision of a guarantee, continue to be fulfilled:
“(a) To obstruct the application of any contractual right to terminate, compensate or terminate the term of contracts;
“(b) To amend the contractual rights of entities referred to in II and other entities of a group where this right arises from a resolution taken with respect to the establishment of credit, investment or the parent enterprise of a non-member State of the European Union, whether by the resolution authority of the State in question or in accordance with the law of that State in respect of resolution.
"VI.-The resolution panel may take a resolution action with respect to a parent company located in France, where the authority of a non-member State of the European Union concerned finds that a credit or investment company meets the conditions for the opening of a resolution procedure under the national law of that State. The provisions of sections L. 613-45-1 and L. 613-50-4 are applicable.
" VII.-The recognition and enforcement of the resolution procedures of a non-EU State does not impede the application of the provisions of Book VI of the Code of Commerce.
" VIII.-After consultation with members of the College of European Resolution Authorities provided for in Article L. 613-59-1, the Resolution College may object to the recognition or enforcement of a resolution procedure of a non-member State of the European Union when it considers:
« 1° That this resolution procedure could have negative effects on financial stability in France or another Member State;
« 2° That further resolution measures should be taken pursuant to section L. 613-62-2 with respect to a credit establishment branch referred to in the first paragraph of section L. 511-10;
« 3° That creditors in Member States, including depositors, would not be treated equivalent to that applied to creditors under the resolution procedure implemented by the non-member State of the European Union;
« 4° That this procedure would have significant budgetary and fiscal implications in France;
« 5° The implementation of this procedure would be likely to produce effects contrary to applicable law in France.
"Art. L. 613-62-1.-I.-A branch of a credit institution referred to in I of section L. 511-10 may be subject to one or more of the measures referred to in subsection 2 of subsection 10 of this section when:
« 1° It is not subject to a resolution procedure of a non-member State of the European Union or the resolution college has objected to the recognition or enforcement of the resolution procedure pursuant to Article L. 613-62 VII;
« 2° The resolution panel considers that such a measure is justified in relation to the objectives of the resolution referred to in 4° of II of Article L. 612-1 and where one or more of the following conditions are met:
“(a) This branch no longer respects or is likely to no longer comply with the conditions of its approval or is no longer or will no longer be in a position to continue its activity, and there is no reasonable prospect that another measure of a private or prudential nature or decided by the authorities of the State not a member of the European Union concerned allows it to meet these conditions or prevent its failure within a reasonable period of time;
“(b) The resolution panel considers that the obligations to creditors within the Union of the credit institution to which the branch depends, including the obligations arising from the activity of that branch, will not be honoured and that this credit institution will not be subject within a reasonable time in the country where it is established to any of the measures referred to in section L. 613-31-2;
"(c) The resolution authority of the non-member State of the European Union concerned has submitted the credit institution established on its territory under which the branch is dependent on a resolution procedure or has notified the resolution college of its intention to do so.
"II.-The measures taken by the Resolution College pursuant to I are subject to the provisions of sections L. 613-45-1 and L. 613-50-4 and, where appropriate, those of sections L. 613-47 and L. 613-50.
"Art. L. 613-62-2.-I.-For the purposes of this section and by derogation from the provisions of Act No. 68-678 of 26 July 1968 relating to the communication of economic, commercial, industrial, financial or technical documents and information to foreign natural or legal persons, the supervisory college, the resolution college and the Minister responsible for the economy may exchange information covered by professional secrecy, in particular on preventive recovery plans, with the authorities of a non-member State of the European Union that exercise powers equivalent to those provided for in 4° of Article II of Article 12
"The information must, prior to their communication, benefit from professional secrecy guarantees at least equivalent to those submitted by the French authorities.
"The information shall be necessary for the fulfilment by the receiving authorities of the non-member State of the European Union of missions equivalent to those provided for in the 4th of Article L. 612-1 and to be used exclusively for this purpose.
"II.-When confidential information comes from a person or authority of another Member State of the European Union, the Supervisory College, the Resolution College and the Minister responsible for the economy cannot disclose it to the authorities of a non-member State of the European Union referred to in I without the express agreement of the person or authority that has communicated it and, if so, to the purposes for which it has given.
"Subsection 13
« Final provisions
"Art. L. 613-63.-A decree in the Council of State specifies the conditions for the application of this section.
“Section 5
“Implementation of the Deposit and Resolution Guarantee Fund
"Art. L. 613-64.-The resolution panel may, with the agreement of the deposit and resolution guarantee fund, transfer to that fund any or part of the capital securities referred to in chapter II of Book II Title I or other property titles issued by a person referred to in Article L. 613-34 subject to a resolution procedure.
"Art. L. 613-64-1.-The Authority for prudential control and resolution shall hear the Chairman of the Deposit and Resolution Guarantee Fund for any matter relating to an institution for which it intends to provoke the implementation of the Guarantee Fund or for which it intends to propose to the Deposit Guarantee Fund to intervene as a preventive measure.
"The Chairman of the Board is also heard, at his request, by the Autorité de contrôle prudentiel et de résolution.
"Art. 613-64-2.-Where a portion of the deposits eligible for the guarantee referred to in Article L. 312-4-1 of an institution subject to a resolution procedure is transferred to another entity, the depositors may not claim any compensation for that guarantee on the part of their deposits that exceeds the compensation limit established under the 2nd of Article L. 31-16 » ;
35° In the III of section L. 621-18-5, the reference: "L. 613-35" is replaced by the reference: "L. 613-70";
36° The title of sub-section 3 of chapter II, section 1, of title III is supplemented by the words "and resolution";
37° After the article L. 632-6-2, it is inserted the article L. 632-6-3 as follows:
"Art. L. 632-6-3.-By derogation from the provisions of Act No. 68-678 of 26 July 1968 relating to the communication of economic, commercial, industrial, financial or technical documents and information to foreign natural or legal persons, the Autorité de contrôle prudentiel et de résolution, its supervisory college and its resolution college may exchange, for the fulfilment of the tasks set out in 4° of II of Article L. 612-1, information covered by the professional secrecy with the European Central Bank and the Single Resolution Council, without prejudice to the rules applicable to the processing » ;
38° After the article L. 632-13, an article L. 632-13-1 is inserted as follows:
"Art. L. 632-13-1.-In the absence of an international agreement concluded by the European Union with one or more States not members of the European Union concerning the modalities of cooperation between the resolution authorities and the counterpart authorities of the non-member States of the European Union, including preventive recovery plans and preventive resolution plans, the Autorité de contrôle prudentiel et de résolution may conclude under the conditions laid down in article L. 632-7 of the agreements of cooperation with the monitoring and resolution authorities of those States.
"These agreements are in conformity, if any, with the framework agreements concluded by the European Banking Authority in this field with the concerned authorities of the non-EU States.
"The conditions for the application of this article are set by decree in the Council of State, in particular the conditions under which the conclusion of the agreements mentioned above involves the colleges of supervision and resolution according to their respective competences. »
The trade code is thus modified:
1° In the fifth paragraph of Article L. 811-10:
(a) The words: "and amicable or judicial sequester" are replaced by the words: ", amicable or judicial sequester and an administrator under the articles L. 612-34, L. 612-34-1 or L. 613-51-1 of the monetary and financial code. » ;
(b) The words: "and commissioner for the execution of the plan" are replaced by the words: ", commissioner for the execution of the plan and administrator appointed under the articles L. 612-34, L. 612-34-1 or L. 613-51-1 of the monetary and financial code";
2° In the fifth paragraph of Article L. 812-8:
(a) The words: "and judicial sequester" are replaced by the words: ", judicial sequester and administrator pursuant to the articles L. 612-34, L. 612-34-1 or L. 613-51-1 of the monetary and financial code. » ;
(b) The words: "and commissioner for the execution of the plan" are replaced by the words: ", commissioner for the execution of the plan and administrator appointed under the articles L. 612-34, L. 612-34-1 or L. 613-51-1 of the monetary and financial code".
I. - Articles L. 312-4, L. 312-4-1, L. 312-5, L. 312-6, L. 312-7, L. 312-8, L. 312-8-1, L. 312-9, L. 312-10, L. 312-11, L. 312-15, L. 312-16, L. 313-50 to L. 313-51 and L. 322-1 to L. 322-10 the monetary and financial code shall apply in New Caledonia in their version of this order.
II. - Article L. 743-2 of the same code is amended as follows:
1° In the first paragraph:
(a) After the word: "the exception" are added the words "of the III and IV of Article L. 312-4,"
(b) The words: "L. 312-17 and L. 312-18" are replaced by the words: "L. 312-6-1, L. 312-8-2, L. 312-18 and L. 312-21";
2° Before the fifth paragraph, the following paragraph shall be inserted:
"For the application of the II of Article L. 312-4-1, the 7° and 8° are not applicable";
3° The following paragraphs shall be inserted before the last paragraph:
"(c) The last paragraph of the III is not applicable.
"Part II of Article L. 312-8-1 is replaced by the following provisions:
“II. - Contributions to the resolution mechanism are calculated according to the provisions of the Minister responsible for the economy.
"For the purposes of Article L. 312-15, references to the authorities of another State Party to the agreement on the European Economic Area, responsible for the administration of an equivalent deposit guarantee mechanism, are not applicable.
"In article L. 312-16, 8° and 14° are not applicable."
III. - In article L. 743-7 of the same code, the word "and" is replaced by the word "to".
IV. - In the first paragraph of article L. 743-8 of the same code, the words: "to articles L. 312-17 and" are replaced by the words: "to article".
V. - Articles L. 511-12-1, L. 511-41-3, L. 511-41-5, L. 511-48 and L. 511-55 of the same code are applicable in New Caledonia in their version in force on the date of publication of this order.
VI. - In section L. 745-1-1 of the same code, before the paragraph beginning with the words: "For the purposes of section L. 511-48", the following paragraph shall be inserted:
"For the purposes of Article L. 511-41-5, the 2° of I is not applicable. »
VII. - The articles L. 612-1, L. 612-4, L. 612-8-1, L. 612-12, L. 612-15-1, L. 612-16, L. 612-33, L. 612-34, L. 612-34-1, L. 612-38, L. 612-39 and L. 612-40 the monetary and financial code shall apply in New Caledonia in their version of this order.
VIII. - Article L. 746-2 of the same code is amended as follows:
1° I:
(a) After the words: "of Article L. 612-29", the words are added: ", of Article L. 612-34-1";
(b) The words: "of the second and last paragraphs of Article L. 612-38" are replaced by the words: "of the second, third and last two paragraphs of Article L. 612-38",
2° II is supplemented by the following paragraphs:
« 6° For the application of I:
“(a) References to Regulation (EU) No. 806/2014 of the European Parliament and Council of 15 July 2014 are not applicable;
“(b) References to mixed holding financial companies and mixed parent companies of financing companies are not applicable;
"(c) References to the Single Resolution Mechanism and the Single Resolution Council are not applicable. » ;
3° After the 4th of the III, the following paragraphs are inserted:
« 4° bis : For the purposes of section L. 612-34-1:
“(a) In the second paragraph of I, the words: “listed from the list mentioned in the articles L. 811-2 or L. 812-2 of the trade code” are replaced by the words: “hability to perform the functions of a proxy or a jdicar administrator by applicable local legislation” ;
“(b) The reference to Book VI of the Commercial Code is replaced by references to the equivalent provisions applicable locally;
"(c) In the last paragraph of the IV, the words “by the privilege established in the articles L. 3253-2, L. 3253-4 and L. 7313-8 the Labour Code and the Justice Charges referred to in II of Article L. 641-13 of the Commercial Code“are replaced by the words: “for the payment of the sums due for the last working months of the employees of the company and the legal fees, according to the applicable law locally”. »
IX. L. 613-34-2, L. 613-34-4, L. 613-53-4, L. 613-54.
X. - Article L. 746-3 of the same code is amended as follows:
1° In the first paragraph:
(a) After the reference: "L. 613-20-4", the reference is inserted: "L. 613-20-6,"
(b) The reference: "L. 613-21-7" is replaced by the reference: "L. 613-21-8";
(c) The words "and L. 613-32 to L. 613-33" are replaced by the words ", L. 613-32 to L. 613-33, section III L. 613-34, sections L. 613-34-3, L. 613-37-1, L. 613-40-1, section IV L. 613-41, section L. 613-43-1, section 3° L.
2° After the first paragraph, the following subparagraphs shall be inserted:
"For the purposes of the articles of Chapter III of Title I of Book VI:
“(a) References to joint holding financial companies, joint parent companies of financing companies, joint holding financial companies established in a Member State or in the European Union are not applicable;
“(b) References to Trade code are replaced by references to applicable local provisions having the same object;
"(c) References to the European Commission, the European Central Bank, the European Financial Markets Authority, the Single Resolution Council, the European Insurance and Professional Pension Authority and the European Systemic Risk Committee are not applicable;
"(d) References to the resolution authorities of other EU Member States as well as to the European Union's College of Resolution Authorities are not applicable;
“e) References to regulations (EU) No 1093/2010 of the European Parliament and Council of 24 November 2010 and No. 806/2014 of the European Parliament and the Council of 15 July 2014 are not applicable. » ;
3° The second paragraph is deleted;
4° The following paragraphs shall be inserted before the last paragraph:
"For the purposes of section L. 613-34-1, the reference to section L. 511-21 is replaced by the reference to section L. 713-13.
"For the purposes of section L. 613-34-8, references to the Civil Code are replaced by references to the local applicable provisions having the same effect.
"For the purposes of sections L. 613-50 and L. 613-51-1, references to the Labour Code are replaced by applicable local provisions with the same effect.
"For the purposes of section L. 613-52-6, the reference: "L. 544-4" is replaced by the reference: "L. 745-11-3".
"For the purposes of section L. 613-55-1, the 4° is not applicable. »
I. - Articles L. 312-4, L. 312-4-1, L. 312-5, L. 312-6, L. 312-7, L. 312-8, L. 312-8-1, L. 312-9, L. 312-10, L. 312-11, L. 312-15, L. 312-16, L. 313-50 to L. 313-51 and L. 322-1 to L. 322-10 the monetary and financial code are applicable in French Polynesia in their version of this order.
II. - Article L. 753-2 of the same code is amended as follows:
1° In the first paragraph:
(a) After the word: "the exception" are added the words "of the III and IV of Article L. 312-4,"
(b) The words: "L. 312-17 and L. 312-18" are replaced by the words: "L. 312-6-1, L. 312-8-2, L. 312-18 and L. 312-21";
2° Before the fifth paragraph, the following paragraph shall be inserted:
"For the application of the II of Article L. 312-4-1, the 7° and 8° are not applicable";
3° The following paragraphs shall be inserted before the last paragraph:
"(c) The last paragraph of the III is not applicable.
"Part II of Article L. 312-8-1 is replaced by the following provisions:
“II. - Contributions to the resolution mechanism shall be calculated according to the provisions of the Minister responsible for the economy.
"For the purposes of Article L. 312-15, references to the authorities of another State Party to the Agreement on the European Economic Area, responsible for the administration of an equivalent deposit guarantee mechanism, are not applicable.
"In article L. 312-16, 8° and 14° are not applicable. »
III. - In article L. 753-7 of the same code, the word "and" is replaced by the word "to".
IV. - In the last paragraph of Article L. 753-8 of the same code, the words: "to articles L. 312-17 and" are replaced by the words: "to article".
V. - Articles L. 511-12-1, L. 511-41-3, L. 511-41-5, L. 511-48 and L. 511-55 of the same code are applicable in French Polynesia in their version in force on the date of publication of this order.
VI. - In section L. 755-1-1 of the same code, before the paragraph beginning with the words: "For the purposes of section L. 511-48", the following paragraph shall be inserted:
"For the purposes of Article L. 511-41-5, the 2° of I is not applicable. »
VII. - The articles L. 612-1, L. 612-4, L. 612-8-1, L. 612-12, L. 612-15-1, L. 612-16, L. 612-33, L. 612-34, L. 612-34-1, L. 612-38, L. 612-39 and L. 612-40 the monetary and financial code are applicable in French Polynesia in their version of this order.
VIII. - Article L. 756-2 of the same code is amended as follows:
1° I:
(a) After the reference: "L. 612-29", the words ", from the VI of Article L. 612-34-1" are added;
(b) The words: "of the second and last paragraphs of Article L. 612-38" are replaced by the words: "of the second, third and last two paragraphs of Article L. 612-38."
2° II is supplemented by the following paragraphs:
« 6° For the application of I:
“(a) References to Regulation (EU) No. 806/2014 of the European Parliament and Council of 15 July 2014 are not applicable;
“(b) References to mixed holding financial companies and mixed parent companies of financing companies are not applicable;
"(c) References to the Single Resolution Mechanism and the Single Resolution Council are not applicable. » ;
3° After the 5th of the III, the following paragraphs shall be inserted:
"5° bis For the purposes of Article L. 612-34-1:
“(a) In the second paragraph of I, the words: “listed from the list mentioned in the articles L. 811-2 or L. 812-2 of the trade code” are replaced by the words: “hability to perform the functions of a proxy or a jdicar administrator by applicable local legislation” ;
“(b) The reference to Book VI of the Commercial Code is replaced by references to the equivalent provisions applicable locally;
"(c) In the last paragraph of the IV, the words “by the privilege established in the articles L. 3253-2, L. 3253-4, L. 7313-8 the Labour Code and the Justice Charges referred to in II of Article L. 641-13 of the Commercial Code“are replaced by the words: “for the payment of the sums due under the last months of work of the employees of the company and the legal fees according to the applicable law locally””.
IX. L. 613-34-2, L. 613-34-4, L. 613-53-4.
X. - Article L. 756-3 of the same code is amended as follows:
1° In the first paragraph:
(a) After the reference: "L. 613-20-4", the reference is added: "L. 613-20-6";
(b) The reference: "L. 613-21-7" is replaced by the reference: "L. 613-21-8";
(c) The words "and L. 613-32 to L. 613-33" are replaced by the words ", L. 613-32 to L. 613-33, section III L. 613-34, sections L. 613-34-3, L. 613-37-1, L. 613-40-1, section IV L. 613-41, section 3° II, and sections VI and VII of section 613-2 » ;
2° After the first paragraph, the following subparagraphs shall be inserted:
"For the purposes of the articles of Chapter III of Title I of Book VI:
“(a) References to joint holding financial companies, joint parent companies of financing companies, joint holding financial companies established in a Member State or in the European Union are not applicable;
“(b) References to Trade code are replaced by references to applicable local provisions having the same object;
"(c) References to the European Commission, the European Central Bank, the European Financial Markets Authority, the Single Resolution Council, the European Insurance and Professional Pension Authority and the European Systemic Risk Committee are not applicable;
"(d) References to the resolution authorities of other EU Member States as well as to the European Union's College of Resolution Authorities are not applicable;
“e) References to regulations (EU) No 1093/2010 of the European Parliament and the Council of 24 November 2010 and No. 806/2014 of the European Parliament and the Council of 15 July 2014 are not applicable";
3° The second paragraph is deleted;
4° The following paragraphs shall be inserted before the last paragraph:
"For the purposes of section L. 613-34-1, the reference to section L. 511-21 is replaced by the reference to section L. 713-13.
"For the purposes of section L. 613-34-8, references to the Civil Code are replaced by references to the local applicable provisions having the same effect.
"For the purposes of sections L. 613-50 and L. 613-51-1, references to the Labour Code are replaced by applicable local provisions with the same effect.
"For the purposes of section L. 613-52-6, the reference: "L. 544-4" is replaced by the reference: "L. 755-11-3".
"For the purposes of section L. 613-55-1, the 4° is not applicable. »
I. - Articles L. 312-4, L. 312-4-1, L. 312-5, L. 312-6, L. 312-7, L. 312-8, L. 312-8-1, L. 312-9, L. 312-10, L. 312-11, L. 312-15, L. 312-16, L. 313-50 to L. 313-51 and L. 322-1 to L. 322-10 monetary and financial code are applicable in the Wallis and Futuna Islands in their version of this Order.
II. - Article L. 763-2 of the same code is amended as follows:
1° In the first paragraph:
(a) After the word: "the exception" are inserted the words "of the III and IV of Article L. 312-4",
(b) The words: "L. 312-17 and L. 312-18" are replaced by the words: "L. 312-6-1, L. 312-8-2, L. 312-18 and L. 312-21";
2° Before the fifth paragraph, the following paragraph shall be inserted:
"For the application of the II of Article L. 312-4-1, 7° and 8° are not applicable";
3° The last paragraph is supplemented by the words: "and the penultimate paragraph of the III is not applicable. » ;
4° It is supplemented by the following paragraphs:
"Part II of Article L. 312-8-1 is replaced by the following provisions: “The contributions to the resolution mechanism are calculated according to the provisions of the Minister responsible for the economy”.
"For the purposes of Article L. 312-15, references to the authorities of another State Party to the Agreement on the European Economic Area, responsible for the administration of an equivalent deposit guarantee mechanism, are not applicable.
"In article L. 312-16, 8° and 14° are not applicable. »
III. - In article L. 763-7 of the same code, the word "and" is replaced by the word "to".
IV. - In the last paragraph of Article L. 763-8 of the same code, the words: "to articles L. 312-17 and" are replaced by the words: "to article".
V. - Articles L. 511-12-1, L. 511-41-3, L. 511-41-5, L. 511-48 and L. 511-55 of the same code are applicable in the Wallis and Futuna Islands in their version in force on the date of publication of this order.
VI. - In section L. 765-1-1 of the same code, before the paragraph beginning with the words: "For the purposes of section L. 511-48", the following paragraph shall be inserted:
"For the purposes of Article L. 511-41-5, the 2° of I is not applicable. »
VII - Articles L. 612-1, L. 612-4, L. 612-8-1, L. 612-12, L. 612-15-1, L. 612-16, L. 612-33, L. 612-34, L. 612-34-1, L. 612-38, L. 612-39 and L. 612-40 monetary and financial code are applicable in the Wallis and Futuna Islands in their version of this Order.
VIII. - Article L. 766-2 of the same code is amended as follows:
1° I:
(a) After the words: "L. 612-29" are added the words: ", from the VI of Article L. 612-34-1";
(b) The words: "of the second and last paragraphs of Article L. 612-38" are replaced by the words: "of the second, third and last two paragraphs of Article L. 612-38",
2° II is supplemented by the following paragraphs:
"For the application of I:
“(a) References to Regulation (EU) No. 806/2014 of the European Parliament and Council of 15 July 2014 are not applicable;
“(b) References to mixed holding financial companies and mixed parent companies of financing companies are not applicable;
"(c) References to the Single Resolution Mechanism and the Single Resolution Council are not applicable. » ;
3° In III, before the last paragraph, the following paragraph shall be inserted:
"3° bis For the purposes of Article L. 612-34-1, in the last paragraph of the IV, the words: "by the privilege established in the articles L. 3253-2, L. 3253-4, L. 7313-8 the Labour Code and the Justice Charges referred to in II of Article L. 641-13 of the Commercial Code“are replaced by the words: “for the payment of the sums due for the last months of work of the employees of the company and the legal fees according to the applicable law locally.””
IX. L. 613-34-2, L. 613-34-4, L. 613-53-4
X. - Article L. 766-3 of the same code is amended as follows:
1° In the first paragraph:
(a) After the reference: "L. 613-20-4", the reference is inserted: "L. 613-20-6";
(b) The reference: "L. 613-21-7" is replaced by the reference: "L. 613-21-8";
(c) The words "and L. 613-32 to L. 613-33" are replaced by the words ", L. 613-32 to L. 613-33, section III L. 613-34, sections L. 613-34-3, L. 613-37-1, L. 613-40-1, section IV L. 613-41, section 3° II, and sections VI and VII of 613-61-2
2° After the first paragraph, the following subparagraphs shall be inserted:
"For the purposes of the articles of Chapter III of Title I of Book VI:
“(a) References to joint holding financial companies, joint parent companies of financing companies, joint holding financial companies established in a Member State or in the European Union are not applicable;
“(b) References to the European Commission, the European Central Bank, the European Financial Markets Authority, the Single Resolution Council, the European Insurance and Professional Pension Authority and the European Systemic Risk Committee are not applicable;
"(c) References to the resolution authorities of other EU Member States as well as to the European Union's College of Resolution Authorities are not applicable;
"(d) References to regulations (EU) No 1093/2010 of the European Parliament and the Council of 24 November 2010 and No. 806/2014 of the European Parliament and the Council of 15 July 2014 are not applicable";
3° The following paragraphs shall be inserted before the last paragraph:
"For the purposes of section L. 613-34-1, the reference to section L. 511-21 is replaced by the reference to section L. 713-13.
"For the purposes of section L. 613-34-8, references to the Civil Code are replaced by references to the local applicable provisions having the same effect.
"For the purposes of sections L. 613-50 and L. 613-51-1, references to the Labour Code are replaced by applicable local provisions with the same effect.
"For the purposes of section L. 613-52-6, the reference: "L. 544-4" is replaced by the reference: "L. 765-11-3".
"For the purposes of section L. 613-55-1, the 4° is not applicable. »
XI. - The one.Article L. 811-10 of the Commercial Code is applicable in the Wallis and Futuna Islands in its drafting from this Order.
I. - The provisions of Article L. 312-8-1 of the Monetary and Financial Code come into force as of January 1, 2016. For the calculation of contributions under the financing mechanism of the resolution for 2015, the resolution panel of the Autorité de contrôle prudentiel et de résolution may, if necessary, adapt the rules set out in the regulations mentioned in this same II. It sets the limit for payment commitments within the limits provided by these texts.
II. - The ones. II of Article L. 312-10 of the Monetary and Financial Code relating to the designation of the members of the Deposit and Resolution Guarantee Fund Supervisory Board shall remain applicable in their writing prior to the coming into force of this Order until the next full renewal of the Board members.
III. - The deposits made in branches of credit institutions established in a State Party to the Agreement on the European Economic Area which is not a member of the European Union continue to be covered by the deposit and resolution guarantee fund until the date of entry into force in that State of Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014. Until that date, the relevant branches adhere to the deposit and resolution guarantee fund under the conditions set out in the 9° of Article L. 312-16 of the monetary and financial code and Article L. 312-8-2 of the same code is not applicable to the relations between the deposit and resolution guarantee fund and the authorities of that State. Until that date, deposits of branches of credit institutions established in France carrying on business in that State are covered under the conditions laid down in the legislation of that State.
On the 21st of Article L. 613-34-1 of the monetary and financial code comes into force when Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 comes into force in the States parties to the European Economic Area Agreement which are not members of the European Union.
IV. - The provisions of Article L. 312-21 of the Monetary and Financial Code come into force on January 1, 2016.
V. - An order of the Minister responsible for the economy shall specify the terms and time limit for which certificates of association issued by the deposit and resolution guarantee fund prior to the publication of this order shall be refunded or converted to certificates of association or associates referred to in the notices to the I and II of Article L. 312-7 of the Monetary and Financial Code.
VI. - The requirements defined on the basis of sections L. 613-41-2 and L. 613-44 of the monetary and financial code are applicable as of January 1, 2016.
VII. - Sections L. 613-55 to L. 613-55-13 of the monetary and financial code come into force as of January 1, 2016 when they find to be applied in the context of the resolution measures.
The Prime Minister, the Minister of Justice, the Minister of Finance and Public Accounts and the Minister of Overseas are responsible, each with respect to the application of this Order, which will be published in the Official Journal of the French Republic.
Done on August 20, 2015.
François Hollande
By the President of the Republic:
The Prime Minister,
Manuel Valls
Minister of Finance and Public Accounts,
Michel Sapin
The Seal Guard, Minister of Justice,
Christiane Taubira
Minister of Overseas,
George Pau-Langevin
