Obligations Foncières - OF - France

1	What type of assets may be included in the cover pool?
	Primary assets Substitution assets Public sector assets Mortgage assets Other 1* Other 2* Other 3*   Exposures to public sector entities x Exposures to credit institutions x Residential mortgage loans x Commercial mortgage loans x For further info please see the Comments box at the end of the questionnaire.
2	What is the geographical scope of assets?
	Primary assets Substitution assets Public sector assets Mortgage assets Other 1* Other 2* Other 3*   Domestic x x EU x EEA x x Other x Mortgage assets: State outside EEA/ EU benefiting from the highest level of credit assessment. Public sector entity outside EEA/ EU must comply with specific limits and level of credit assessment given by an external rating agency recognized by the ACPR (minimum credit quality step 2)
3	Is there a maximum level for substitute assets in the statutory national framework?	Yes, please specifiy 15% of the total amount of the issuer's privileged liabilities
4	Are there any reporting requirements for covered bond issuers to investors?	Yes, by law and in line with art. 14 of EU Covered Bond Directive
5	What is the frequency of reporting to investors?	Quarterly

1	What is the basis for property valuation	Market value
2	Is a regular update of the property value required?	Yes, automated / indexed valuation sufficient
3	What are the LTV limits (single asset based)? Please specify in %/n.a.	Residential Commercial Other assets Residential 80%; Commercial 60%; Other (Public assets) 100%
4	Are loans in excess of LTV limits eligible for inclusion in the cover pool?	Yes (soft limit)

IV.1 Derivative contracts in the cover pool

1	Are derivative contracts eligible for the inclusion in the cover pool?	Yes, exclusively for hedging purposes (by law)
2	Are there requirements for derivative contracts (e.g. eligibility criteria for hedging counterparties)?	Yes, specified in law
3	Will derivative contracts remain in case of insolvency of the issuer?	Yes
4	If derivatives are permitted in the cover pool, what is their ranking?	Pari passu to covered bond holders

IV.2 Exposure to market risk

1	What is the primary method for the mitigation of market risk?	Natural' matching (i.e. match funding, matching without the use of off-balance sheet instruments) and stress testing Use of derivative hedging instruments
2	Are there mitigating provisions for interest rate risk?	Yes, by legislation/regulation
3	Are there mitigating provisions for foreign exchange risk?	No
4	Are there mitigating provisions for maturity mismatch risk?	Yes, by legislation/regulation
5	What type of coverage test is applied?
6	Are there stress scenarios applied?	No

IV.3 Liquidity risk

1	Is exposure to liquidity risk mitigated?	Yes, by law
2	What liquidity risk mitigation requirements are in place (principal)?	180 days liquidity provisions Maturity extension provisions Matching requirements
3	What liquidity risk mitigation requirements are in place (interest)?	180 days liquidity provisions Maturity extension provisions Matching requirements
4	What is the consequence of not fixing a breach of liquidity risk mitigants?	No sale of assets No new covered bond issuance Event of default
5	If 180 days liquidity provisions are in place, what types of liquid assets are eligible	LCR Level 1 LCR Level 2a LCR Level 2b Short term exposures to credit institutions (Credit Quality Step (CQS) 1) Short term exposures to credit institutions (CQS 2) Short term deposits to credit institutions (CQS 1) Short term deposits to credit institutions (CQS 2) Short term deposits to credit institutions (CQS 3)
6	If 180 days liquidity provisions are in place, the calculation of principal is based on:	The expected maturity date Also: "The (extended) legal final maturity date"

IV.4. Maturity extension

1	Is maturity extension allowed by national law?	Yes, but optional and subject to conditions
2	Is it possible to issue…	Hard bullet Soft bullet
3	Which trigger plays a role for maturity extension according to law - independent or alone or in combination?	Issuer bankruptcy/resolution Lack of liquidity; breach of liquidity rules Issuer failure to pay
4	Does any competent authority need to give its okay (or non-opposition)?	Yes

IV.5 Overcollateralisation

1

Is mandatory overcollateralisation required in the law ?

Covered Bond Type - 5% - nominal

V.1 Cover pool monitor (CPM)

1	Is there a cover pool monitor in addition to national competent authorities in the statutory law?	Yes, by law and in line with Article 13 of EU Covered Bond Directive
2	Is the CPM separate from the issuing credit institution?	Yes, required by national statutory law
3	Is the appointment, dismissal, eligibility criteria and the role of the CPM regulated by the national statutory law?	Yes

V.2 Banking supervision

1	Which are the national competent authorities designated to carry out covered bonds public supervision in the law?	Autorité de Contrôle prudentiel et de résolution - Website
2	Is a special permission required for a covered bond programme according to national law?	Yes, licence for institution + competent autority
3	Is there a covered bond issuance limit in law or regulation? If yes, please specify	No
4	Does the national statutory law provide for the appointment of a dedicated cover pool administrator in case of insolvency/resolution (transfer included acc. to BRRD [Bank Recovery and Resolution Directive])?	Yes
5	Which is the typical frequency in the national statutory law of reporting from the covered bond issuers to the designated competent authorities?	Quarterly

1	Does the national statutory law meet the requirements laid down in the EU Covered Bond Directive?	Yes
2	Does the statutory law meet the requirements of Article 129 of CRR [Capital Requirement Regulation]? In this case, please specify the collateral types meeting the Art. 129 CRR.	Yes - Residential mortgages - Guaranteed home loans - Commercial loans - Public sector loans
3	Does the statutory law allow covered bonds out of the scope of Art 129 of CRR? In this case, please specify the collateral	No
4	Are listed covered bonds eligible in repo transactions with the national central bank?	Yes

Primary Legislation

• Decree 7022-766 of May 2nd, 2022.pdf (Original language)
• Section 2 Les sociétés de crédit foncier (Articles L513-2 à L513-27) - Légifrance (FR).pdf (Original language)
• Decree n° 2021-898 of 6 July 2021 (FR).pdf (Original language)

European Covered Bond Label (Premium) list

• https://acpr.banque-france.fr/en/covered-bonds (English language)

Hypostat

• France.pdf (English language)

Fact Book

• 3.15 France.pdf (English language)

Any further comments/information?

Further comments on Section II.1: "Guaranteed home loans eligible if guarantor rated at least ‘A-‘. For public sector assets, public entities must have minimum credit quality step 1 rating; Substitution assets subject to sub-limits: - Maximum 15% for credit quality step 1 exposures; - Maximum 10% for credit quality step 2 exposures; - Maximum 8% for credit quality step 3."