Chapter VI: Universal guarantee fund for rental risks

Articles in this section · 11

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Article R426-5

French Insurance CodeIn force
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Updated 7 Nov 2023

The provisions mentioned in article R. 426-3 must, at all times, be represented by equivalent assets located within the territory of a Member State of the European Community or another State party to the Agreement on the European Economic Area.

The assets accepted to represent the commitments of the fonds de garantie universelle des risques locatifs are as follows:

1° Bonds and other securities issued or guaranteed by a Member State of the European Community or by another State party to the Agreement on the European Economic Area;

2° Securities issued by the Caisse d'amortissement de la dette sociale (social debt redemption fund) established byarticle 1 of order no. 96-50 of 24 January 1996 relating to the redemption of social debt;

3° Units or shares in undertakings for collective investment in transferable securities or collective investment schemes covered by paragraphs 1, 2 and 6 of sub-section 2, paragraph 2 or sub-paragraph 1 of paragraph 1 of sub-section 3 of section 2 of Chapter IV of Title I of Book II of the Monetary and Financial Code which are invested in and exposed to more than 90% of their assets in :

a) The securities mentioned in 1° and 2° ;

b) Money market instruments mentioned in 2° of I of article L. 214-20 of the Monetary and Financial Code, the remuneration of which does not depend, directly or indirectly, on the value of one or more financial futures instruments;

c) The deposits or cash referred to in 4° and 6° of I of article L. 214-20 of the Monetary and Financial Code;

4° Future payments by the State, as referred to in the last sentence of the third paragraph of IV of article L. 313-20 of the French Construction and Housing Code, corresponding to the assumption of the State's share of unpaid rent claims pursuant toarticle 85 of law no. 2007-1824 of 25 December 2007 on amended finance for 2007;

5° Deposits with a credit institution authorised in a Member State of the European Community or in another State party to the Agreement on the European Economic Area;

6° Irrevocable commitments to make payments on first request made by the collecting members of the Union des entreprises et des salariés pour le logement, these commitments being guaranteed by a pledge of receivables up to 150% of their total amount.

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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