French Monetary and Financial Code
In forceI. - Subject to the provisions of III and V of Article L. 613-57-1, the collège de résolution may release the financial instruments defined in Article L. 211-1, rights, assets or commitments of the person in question from any commitment or security when they are transferred.
A right to compensation granted under the provisions of this section may not be considered as a commitment or security within the meaning of the previous paragraph.
II. - The College of Resolution may restrict the rights of creditors of a person referred to in I of Article L. 613-34 subject to resolution proceedings in respect of security interests over the assets of that person. It shall take into account the possible impact of this decision on the orderly functioning of the financial markets. The restriction takes effect from the publication of the information provided for in IV of Article L. 613-58 and ends at midnight on the business day following the day of publication.
In cases where Article L. 613-57-2 is applicable, the resolution board shall ensure that the restrictions imposed pursuant to the previous paragraph are applied consistently to all entities of the group that are subject to a resolution measure.
The resolution board may not apply the restrictions mentioned in the first paragraph to existing rights in respect of:
1° Collateral held by the systems mentioned in I of Article L. 330-1 or their managers, or by equivalent systems;
2° Assets pledged or provided as margin or guarantee by the person subject to resolution proceedings with central banks or central counterparties within the meaning of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012.
