French Monetary and Financial Code
In forceI. - The account specially allocated to the fund, as provided for in article L. 214-173, is a bank account held by a credit institution whose registered office is located in a State party to the Agreement on the European Economic Area or a member of the Organisation for Economic Co-operation and Development, including an existing account opened in the name of any entity responsible for collecting sums due to or benefiting directly or indirectly the fund.
The specially allocated nature of this account takes effect on signature of an account agreement between the fund's management company, the fund's custodian, an entity, including, where applicable, the management company acting in this capacity, responsible for collecting sums owed or benefiting directly or indirectly to the fund and the account-keeping institution, without the need for any other formality.
II. - The sums credited to the account are for the exclusive benefit of the organisation. The organisation's management company, acting in the name and for the benefit of the organisation, disposes of these sums under conditions defined in the account agreement.
When sums other than those due or benefiting the organisation are paid into this account, the entity responsible for collecting sums due or benefiting the organisation directly or indirectly must prove that these sums are not due to the organisation. These sums are then withdrawn from the account as soon as possible in accordance with the conditions defined in the account agreement.
III. - The institution holding the account is subject to the following obligations:
1° It must inform third parties entering the account that the account has been specially allocated, pursuant to article L. 214-172, for the benefit of the financial institution, making the account and the sums held therein unavailable;
2° It may not merge the account with another account;
3° It shall comply solely with the instructions of the organisation's management company acting in the name and for the benefit of the latter, when debiting the account, unless the account agreement authorises the entity responsible for collecting sums owed or benefiting directly or indirectly to the organisation to debit the account under the conditions defined therein.
When the management company collects sums owed or benefiting directly or indirectly to the undertaking, the regulations or articles of association of the undertaking shall specify whether such collection is made to an account opened in the name of the undertaking or to an account opened in the name of the management company and specially allocated pursuant to the second paragraph of article L. 214-173.
When the management company is also designated as the entity responsible for collecting sums due to or benefiting directly or indirectly the fund, in accordance with the second paragraph of article L. 214-173, and when it acts in this capacity, it must expressly mention this fact in its dealings with third parties. Failing this, it is deemed to be acting in its capacity as the entity responsible for managing the fund in accordance with III of article L. 214-168.
