Section 1: Missions

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L514-1

Article L514-1

French Monetary and Financial CodeIn force
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Updated 7 Nov 2023

I. - Municipal credit unions are public municipal credit and welfare institutions. In particular, their mission is to combat usury by granting loans against tangible collateral, for which they have a monopoly. They may carry out all transactions with credit institutions and finance companies, receive funds from natural persons and legal entities, provide these persons with means of payment and carry out related transactions with them within the meaning of article L. 311-2.

II. - They carry out their activities after obtaining authorisation from the European Central Bank. This authorisation may stipulate, depending on the technical and financial capabilities of the credit union, that it is also authorised to carry out one or more of the following activities:

1. Granting loans to natural persons ;

2. The granting of loans to local public establishments and to associations governed by the law of 1st July 1901 relating to the contract of association whose activity is carried out in the usual area of activity of the caisse and whose object is of social or cultural interest.

The caisses may, alone or jointly with other caisses, hold shares or participate in the capital of companies as well as create associations contributing to the development of the activities they are authorised to carry out.

The municipal credit unions may freely transfer the assets, rights and obligations corresponding to activities other than pawnbroking.

III. - The municipal credit funds may also transfer these assets, rights and obligations to limited companies governed by Book II of the Commercial Code, created for this purpose, whose purpose is limited to the activities, other than pawnbroking, that the municipal credit funds may carry out. They participate in the capital of these companies up to the amount of their contributions. These companies are authorised by the European Central Bank, if their activity falls under the status of a credit institution, or by the Autorité de contrôle prudentiel et de résolution, in other cases. Their authorisation is subject to the limitations set out in I and the first three paragraphs of II.

The shareholdings held by the caisses de crédit municipal are transferable. With a view to their universal transfer, the contributions mentioned in the previous paragraph are deemed to be placed under the legal regime for demergers.

Mariela Petrova

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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.

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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.

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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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