French Commercial code
In forceI.-The composition of the affected assets may be relied on ipso jure against creditors whose rights arose after the declaration referred to in article L. 526-7.
By derogation from articles 2284 and 2285 of the Civil Code:
<1° Creditors to whom the declaration is enforceable and whose rights arose during the exercise of the professional activity to which the assets are assigned have the assigned assets as their sole general pledge;
2° Other creditors to whom the declaration is enforceable have the unassigned assets as their sole general pledge.
Where the assignment results from an entry in the accounts pursuant to article L. 526-8-1 of this Code, it may be relied upon as against third parties from the date of filing of the balance sheet of the individual limited liability entrepreneur or, where applicable, of the document or documents resulting from the simplified accounting obligations provided for in the second paragraph of Article L. 526-13 from the register where the entrepreneur is registered.
II.-Where the value of an asset of the affected assets, other than cash, mentioned in the descriptive statement provided for in article L. 526-8 or in the accounts, is greater than its actual value at the time of its allocation, the individual limited liability entrepreneur is liable, for a period of five years, to third parties in respect of all of his assets, whether allocated or not, for the difference between the actual value of the asset at the time of allocation and the value stated in the descriptive statement or in the accounts.
He is also liable for all of his assets and rights in the event of fraud or serious breach of the obligations set out in Article L. 526-13.
In the event of insufficient unaffected assets, the general lien of the creditors mentioned in 2° of I of this article may be exercised on the profit made by the individual limited liability entrepreneur during the last closed financial year.
