French Monetary and Financial Code
In forceThe regulations or articles of association of the financial institution define :
1° The nature of the risks to which the undertaking proposes to expose itself and :
a) Where the undertaking proposes to acquire assets, the characteristics of those assets ;
b) Where the undertaking proposes to enter into contracts constituting financial futures instruments for the purpose of exposure, the conditions under which such contracts are entered into and settled, the characteristics of the underlyings of such contracts and, where these instruments meet the characteristics of credit derivatives, the nature and characteristics of the persons on whom the credit risk is based;
c) Where the undertaking proposes to grant loans, guarantees or sureties or to enter into contracts transferring insurance risks or risk or cash sub-participation contracts, the characteristics of such loans, guarantees, sureties or contracts;
2° The strategy for financing or hedging these risks, in particular :
a) The terms of issues of units, shares or debt securities ;
b) The terms of recourse to borrowing ;
c) The conditions for entering into and settling contracts constituting forward financial instruments or transferring insurance risks for hedging purposes;
3° The guarantees which the undertaking proposes to receive, granted for its benefit or for that of the holders of units, shares or debt securities which it has issued;
4° The guarantees that the undertaking proposes to grant;
5° The investment strategy for the undertaking's assets, in particular :
a) The cash investment strategy ;
b) The conditions governing the use of transactions for the temporary purchase or sale of financial instruments;
c) The terms and conditions for the sale of receivables that are not due or not forfeited.
