L IV - The markets
Receivership or liquidation proceedings
In the event of receivership or liquidation proceedings in respect of an account-holding institution, the bankruptcy trustee or the liquidator, in conjunction with the temporary administrator or the liquidator, appointed, if applicable, by the commission bancaire (French supervisory body for credit institutions), shall verify each individual financial instrument to ensure that all the securities held in an account with a national depositary or with another intermediary in the name of the defaulting intermediary, regardless of the type of account involved, are sufficient to enable the intermediary to meet its obligations to the holders of financial instruments recorded in its books. If the number of securities held is not sufficient for this purpose, the financial instruments shall be individually distributed, proportionally to the holders of the securities; holders may transfer the securities made available to them to an account held by another intermediary or by the issuing entity.
Debts represented by financial instruments, which could not be made available to their holders due to insufficient funds of the national depositary, shall be exempt from the declaration required by article L. 621-43 of the code de commerce (French commercial code).
The official receiver shall be notified of the result of the verification performed by the bankruptcy trustee or the liquidator and, if applicable, of the proportionate allocation of the securities as well as of the account transfers made at the request of the holders.