French Monetary and Financial Code
In forceThe articles of association of a société de placement à prépondérance immobilière à capital variable (open-ended real estate investment company) or the regulations of the fonds de placement immobilier (real estate investment fund) may provide for the amount of units or shares subscribed to be paid up in instalments. These units are registered shares.
If the units or shares have not been fully paid up, the subscriber and successive transferees are jointly and severally liable for the unpaid amount. If the unit-holder or shareholder fails to pay up the outstanding amounts of the units or shares held at the times set by the fund management company or the open-ended real estate investment company, a formal notice will be sent.
One month after a formal notice has been sent without effect, the fund management company or the open-ended real estate investment company may, ipso jure, sell the units or shares or, under the conditions laid down in the fund's articles of association or by-laws, suspend the right to payment of the distributable sums referred to in article L. 214-69.
After payment of the sums due in principal and interest, the shareholder or unit-holder may request payment of distributable sums that have not lapsed. However, a subscriber or transferee who has sold his units or shares ceases to be liable for payments not yet called up by the fund management company or the open-ended preponderantly real estate investment company, two years after the transfer from account to account of the units or shares sold.
The regulations of the real estate investment fund or the articles of association of the société de placement à prépondérance immobilière à capital variable may authorise the redemption of the units or shares of the undertaking for collective real estate investment only at the end of a period which may not exceed ten years after the establishment of the undertaking.
The units or shares of an undertaking for collective real estate investment may give rise to different rights to the net assets or income of the undertaking. The procedures for issuing, transferring or redeeming units or shares in undertakings for collective investment in real estate are defined in the articles of association of the open-ended real estate investment company or the regulations of the real estate investment fund.
