Subsection 2: Operations

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L513-3L513-4L513-6L513-7L513-8L513-9L513-10

Article L513-3

French Monetary and Financial CodeIn force
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Updated 7 Nov 2023

I. - Guaranteed loans are loans with :

1. A first-ranking mortgage or a property security interest providing at least equivalent security ;

2. Or, within the limits and under the conditions determined by decree of the Conseil d'Etat, provided that the guaranteed loan is used exclusively to finance a property, a guarantee from a credit institution, finance company or insurance company, which has at least the second level of credit quality established by an external credit assessment body recognised by the Autorité de contrôle prudentiel et de résolution pursuant to the provisions of article L. 511-44 and which are not included in the scope of consolidation defined in Article L. 233-16 of the Commercial Code to which the société de crédit foncier belongs.

II. - The loans guaranteed by a property security mentioned in 1 of I and the guaranteed loans mentioned in 2 of I are eligible for financing by preferential resources within the limit of a percentage of the property financed or provided as security. This percentage is determined by decree of the Conseil d'Etat.

Specific eligibility conditions are set by decree by the Conseil d'Etat for those loans that are guaranteed by the Fonds de Garantie de l'Accession Sociale à la Propriété mentioned in article L. 312-1 of the Code de la Construction et de l'Habitation or any entity or person that replaces it, as well as for those loans that are covered, for the part exceeding the fixed quota and within the limit of the value of the property to which the guarantee relates, by a guarantee that meets the conditions mentioned in 2 of I or by the guarantee of one or more of the public bodies mentioned in article L. 513-4.

III. - The asset provided as collateral or the asset financed by a guaranteed loan must be located in France, in another Member State of the European Union or party to the Agreement on the European Economic Area or in a State with the highest credit quality rating established by an external credit assessment body recognised by the Autorité de contrôle prudentiel et de résolution in accordance with article L. 511-44. Its value is determined prudently and excludes any speculative elements. The valuation procedures are laid down by an order of the Minister for the Economy, which stipulates in particular the cases in which an expert appraisal must be carried out.

Mariela Petrova

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Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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