The Ordinance’s extension to grantors of French law security interests in rem is likely to have a practical impact on lenders.
Key Points:
..The obligation of lenders to provide grantors of cautionnements (guarantees) of bank loans, etc., with certain information regarding the guaranteed obligations by 31 March each year has been maintained as part of the reform of security interests that came into effect on 1 January 2022.
..The uncertainty as to whether this obligation applies to guarantees granted under a law other than French law but where there is a nexus to France has not been resolved.
..The right to such information has been extended to grantors of French law security in rem.
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