French Monetary and Financial Code
In forceI. - Notwithstanding any provision or stipulation to the contrary, entities in the same group may enter into an agreement, to which the rules of this sub-section apply, the purpose or effect of which is to provide for the conditions under which one or more of the parties to the agreement may benefit, where it meets the conditions for early intervention referred to in I of Article L. 511-41-5, from financial support from one or more of the other parties to the agreement.
This agreement may provide for financial support in the form of a loan, the granting of guarantees, the provision of assets that can be used as collateral or any combination of these forms of financial support.
II. - A parent institution in a Member State, a parent institution in the European Union or one of the persons mentioned in 4° to 6° of I of Article L. 613-34 and their subsidiaries which are subject to supervision on a consolidated basis under the conditions set out in Section 1 of this chapter are considered to be entities in the same group.
The central bodies mentioned in Article L. 511-30 , on the one hand, and the credit institutions and investment firms affiliated to them and their subsidiaries, on the other hand, are respectively parent undertakings within the Union and subsidiaries of the same group.
III. - The conclusion and amendment of an agreement are subject to prior authorisation under the conditions laid down in Articles L. 613-46-1 or L. 613-46-2. Authorisation shall not be granted if, in the opinion of the supervisory board or the competent authority concerned, one of the parties fulfils the conditions for early intervention.
IV. - An agreement which has been authorised, concluded, published and implemented under the conditions of this sub-section may not give rise to any dispute, action or proceedings of any nature whatsoever other than those brought by one of the contracting parties.
V. - The provisions of this sub-section apply without prejudice to agreements or conventions governing intra-group transactions, where neither of the parties fulfils the conditions for early intervention.
They shall apply subject to the provisions of Article L. 511-47.
The absence of an agreement shall not prevent one-off financial support from being provided to a group entity experiencing financial difficulties provided that such support has been approved by the parent institution and, where applicable, in agreement with the entities providing or receiving such support, that it complies with group policies and that it does not represent a risk for the group as a whole.
