Introduction

• The assets held by a société de crédit foncier (SCF) are allocated by priority to the payment of any debt benefiting from the privilege. See article L.515-19
  
  
• In the event of bankruptcy proceedings (redressement or liquidation judiciaire), any debt benefiting from the privilege, including derivative instruments, is paid at the contractual due date, in priority to all other debt, until fully reimbursed. See article L.515-19-3
  
  
• Bankruptcy proceedings of a company which holds shares of an SCF cannot be extended to the SCF.
  See article L.515-27

Relevant legislation

Legislative texts

• Article L.515-19: Privileged debt
• Article L.515-27: Liquidation proceedings of the parent company cannot be extended to the SCF
• Article L.515-28: Termination of the management and recovery agreements

Regulatory texts

• Article R.515-8: Definition of the privilege in financing agreements