French Monetary and Financial Code
In forceI. - The members of the Deposit Guarantee and Resolution Fund shall provide it with the financial resources necessary to carry out its duties as set out in Article L. 312-4, both for the mechanisms for which it is responsible and for its operation.
These contributions are annual. If necessary, the Deposit Guarantee and Resolution Fund may also raise exceptional contributions. Contributions are payable by members of the fund who are approved or carrying on business on 1 January of the year in respect of which the contributions are levied.
They may be paid by members by subscribing to associate certificates specific to each mechanism, issued by the Deposit Guarantee and Resolution Fund.
Membership certificates are registered and non-negotiable. They confer on their holder only the pecuniary rights set out in this article. They are included in the equity capital of the Deposit Guarantee and Resolution Fund.
These certificates are redeemable at par value upon decision of the fund's Supervisory Board in the event of withdrawal of the member's authorisation or a change in the basis of assessment referred to in Article L. 312-8-1. If the authorisation of a member is withdrawn by the Autorité de contrôle prudentiel et de résolution or by the European Central Bank pursuant to Articles L. 612-39 or L. 612-40, the member certificates held by that member may be cancelled by decision of the Enforcement Committee. In this case, the sums paid remain the property of the Deposit Guarantee and Resolution Fund.
These certificates may be remunerated at the end of each financial year by decision of the fund's Supervisory Board, which decides on the amount to be allocated within the limit of the balance relating to each financial income mechanism and the cost of claims.
II. - Contributions may also be paid by subscribing to association certificates specific to each mechanism, issued by the Deposit Guarantee and Resolution Fund.
These association certificates are registered and non-negotiable.
They are redeemable at face value in the event of the member's authorisation being withdrawn or in the event of changes in the base mentioned in article L. 312-8-1. If the authorisation of a member is withdrawn by the Autorité de contrôle prudentiel et de résolution or the European Central Bank pursuant to Articles L. 612-39 or L. 612-40, the association certificates held by this member may be cancelled by decision of the Enforcement Committee. In this case, the sums paid remain the property of the Deposit Guarantee and Resolution Fund.
The association certificates are remunerated in accordance with the conditions set by the Supervisory Board of the Fonds de garantie des dépôts et de résolution when the accounts are closed.
III. - In the event of losses incurred by the fund under one of the mechanisms mentioned in II of Article L. 312-4, the losses are charged firstly to the members' certificates and then to the association certificates of the member for which the fund is intervening or, where applicable, to the proceeds of the cancelled certificates of this member, secondly to the members' certificates and then to the association certificates of the other members, and lastly to the reserves. For the implementation of the above provisions, the nominal value of each of these certificates or their number is then reduced in the proportion necessary to absorb the losses.
IV. - Contributions due by members of the Deposit Guarantee and Resolution Fund affiliated to one of the central bodies mentioned in Article L. 511-30 are paid directly to the Deposit Guarantee and Resolution Fund by this central body.
V. - The fonds de garantie des dépôts et de résolution may borrow for the purposes of its missions. At its request, its members shall provide the required guarantees relating to such loans on its behalf.
VI. - The mechanisms managed by the fonds de garantie des dépôts et de résolution pursuant to II of article L. 312-4 are identified individually in its accounts.
The sums recovered by the fonds de garantie des dépôts et de résolution following an intervention are allocated to the reserves of the mechanism which bore the cost.
