French Monetary and Financial Code
In forceI.-A security, claim, instrument or right is deemed to be unstructured within the meaning of 4° of I of Article L. 613-30-3 a security, claim, instrument or right that has the following characteristics:
1° The principal issued or borrowed, its repayment and the payment of interest or coupons are denominated in euros or in a single currency;
2° The minimum initial maturity of the security, debt claim, instrument or right is more than one year;
3° The principal is redeemable at par or at least at par where no coupon or interest payment is provided for;
4° Subject to 6°, the amount of redemption and remuneration at each maturity is provided for in the contract for the issue of the security or the contract governing the debt, instrument or right. This amount and the maturity date are not contractually dependent on the occurrence or non-occurrence of uncertain future events;
5° A.-Where the contract provides for the payment of interest, this remuneration is as follows:
a) At a fixed rate;
b) At a variable rate equal to an interest rate reference index which, on the date of the issue or borrowing, meets the definition in 22) of paragraph 1 of Article 3 of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks for financial instruments and contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 ; this rate may include a fixed margin, where applicable.
B.-The contract may provide for changes in remuneration leading to the application of a different remuneration after one or more predetermined dates, provided that the new remuneration meets the conditions described in a or b of A. Where the new remuneration is at a fixed rate, this rate may be equal either to a predetermined fixed rate or to a standard rate on the interbank market, the money market, the bond market or the rate on bonds issued by a government, plus a fixed margin where applicable.
C.-The provisions of B are also applicable in the event that the issuer or borrower has waived the right to exercise an option it holds pursuant to b of 6° below;
6° The security, claim, instrument or right may be redeemed early if the contract provides for this possibility:
a) At the initiative of the issuer or borrower, in the event of a change in circumstances having the effect of modifying the accounting, tax or regulatory treatment initially provided for at the time of issue or borrowing;
b) At the initiative of the issuer or borrower, on one or more predetermined dates;
7° Where applicable, the contract provides for the possibility for the borrower or issuer to unilaterally amend certain of its clauses in order to maintain the accounting, tax or regulatory treatment initially provided for at the time of the issue or borrowing.
II - A security, claim, instrument or right that meets the conditions set out in I but has an indefinite term is also considered to be unstructured.
