#2021-858Guarantee Bond Issuance and Public Supervision Ordinance
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This law regulates the issuance of covered bonds in France, focusing on credit quality and transparency requirements. It affects financial institutions by allowing them to issue bonds with extended maturity and mandates them to regularly report to authorities and publicize their bond-related activities online.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Financial institutions can issue covered bonds with extended maturities.
- Regular reporting and online publication of bond-related information are required.
- Increased credit quality standards for insurance enterprises.
Obligations
What this law requires
Financial institutions issuing covered bonds must ensure underlying assets meet at minimum the second credit quality tier established by an external credit assessment organization recognized by the Autorité de contrôle prudentiel et de résolution (ACPR)
Sociétés de crédit foncier must publish quarterly on their website information regarding their mortgage bond emissions and other privileged resources, enabling investors to assess loan profile and associated risks
Sociétés de crédit foncier must communicate quarterly to the ACPR information on their mortgage bond emissions and other privileged resources
Sociétés de crédit foncier may issue mortgage bonds (obligations foncières) with extendable maturity dates, subject to conditions and modalities established by decree
Sociétés de crédit foncier must ensure the volume of financial derivative instruments used is appropriate for risk reduction purposes and must be terminated when the covered risk disappears