Financing, Banking and Collateral in France

We provide expert guidance on all aspects of financing and the provision of collateral in France. We can offer consulting services in German, French or English.

Legal Services concerning Finance, Banking and Collateral in France

In addition with legal consulting, our German-French team will also offer you practical support in the following areas in France:

  • Assessment of credit agreements and the collateral value of loans where collateral is provided in France
  • Pledging of the fonds de commerce (goodwill) of a French company
  • Pledge of the shares of a French company (nantissement des actions ou des parts sociales)
  • Sale and lease back: Agreements for real estate located in France (Crédit bail immobilier)
  • Consulting on leasing (moveable property) under French law
  • Consulting on factoring agreements under French law
  • Coordination of our activities with French notaries and French banks with whom we generally maintain long-term business contacts

Did you know that in France…

  • all collateral is ancillary? Consequently, in France the two related German concepts of Grundschuld (real property lien) and Hypothek (mortgage) are subsumed under the single concept of mortgage.
  • sale and lease-back of real estate or real estate leases are a very common form of financing for construction projects in France? French banks usually have a company which takes over the leasing of real estate under French law. The French bank shares the risk with the French company which arranges the property leases. This gives rise to interesting tax aspects, particularly for German companies.
  • the law does not allow the global assignment of claims? In France, claims can only be assigned individually as security. This is effected within the framework of the so-called Dailly assignment (Cession Dailly) in compliance with strict formal requirements.
  • warehouses cannot be assigned for collateral in France? A warehouse in France can be garnished. However, it must be ensured that the bank, as the garnisher, is actually in possession of the warehouse, which is not easy to achieve in practice.
  • the accessoriness principle also applies to the pledging of shares under French law? This means that when shares are pledged in France, the claim for which the shares are pledged as security must be precisely defined. Consequently, under French law, it is generally not possible to maintain the agreed pledge of shares for a different claim of the bank.
  • under French insolvency law, priority is given in principle to maintaining a company based in France as a going concern and securing the jobs of employees employed in France over creditor protection? This has enormous implications for the collateral provided by banks in insolvency proceedings in France.

Our German-French Team for Finance, Banking and Collateral in France: