Posted on 9 September, 2022 - 14:46 | Category : .
The société de credit foncier ensures that at all times its cash needs are covered over a period of 180 days by monitoring forecast flows of principal and interest on its assets as well as the net flows related to derivatives as mentioned in article L.513-10.
The cash requirement is covered by :
1° Tier 1, 2A or 2B liquid assets as defined in Articles 10, 11 and 12 of the Delegated Regulation (EU) 2015/61 of 10 October 2014, which are valued in accordance with that Regulation and which are issued neither by the building society nor by its parent undertaking, unless it is a public sector entity within the meaning of Article 116 of Regulation (EU) No 575/2013 of 26 June 2013 which is not a credit institution, nor a subsidiary of its parent undertaking, nor a securitisation undertaking or similar entity subject to the law of a Member State of the European Union with which it has close links ;
2° Short-term exposures to credit institutions, if they benefit from the best or second best credit quality step established by an external credit assessment body recognised by the Autorité de contrôle prudentiel et de résolution in accordance with Article L. 511-44, or short-term deposits with credit institutions benefiting from the best, second best or third best credit quality step established by an external credit assessment body recognised by the Autorité de contrôle prudentiel et de résolution in accordance with Article L. 511-44.
Unsecured claims deemed to be in default, in accordance with Article 178 of Regulation (EU) No 575/2013 of 26 June 2013, may not participate in the coverage of liquidity needs.
When the SCF’s assets, excluding replacement assets, include assets guaranteed in application of articles L.211-36 to L.211-40, L.313-23 to L.313-35 and L.313-42 to L.313-49, it is not the projected flows of receivables in the assets of the SCF that are used to evaluate liquidity needs, but the projected flows resulting from assets received as a guarantee, as a pledge or through transfer of ownership.