Regulatory Alerts1995-01-30
Instruction No. 95-01 of January 30, 1995 amending Instruction No. 94-06 regarding the accounting for asset transfer or securitization operations
The Banking Commission issued Instruction No. 95-01 to amend Instruction No. 94-06 by adding Article 7 bis to establish specific accounting treatments for additional cash remittances. The regulation mandates that such cash remittances be recorded under specific debtor or creditor accounts, with related interest charges or products recognized on a time-proportionate basis. It further specifies that additional remittances made in the form of bills or securities must be recorded under specific collateral value accounts.
BANKING COMMISSION Instruction No. 95-01 amending Instruction No. 94-06 regarding the accounting for asset transfer or securitization operations
The Banking Commission, Having regard to Law No. 84-46 of January 24, 1984, as amended, relating to the activity and supervision of credit institutions, particularly Article 40 thereof; Having regard to Article 12 of Law No. 93-1444 of December 31, 1993, as amended, containing various provisions relating to the Bank of France, insurance, credit, and financial markets; Having regard to Instruction No. 94-06 of March 14, 1994, regarding the accounting for asset transfer or securitization operations, Decides:
Article 1. An Article 7 bis is added to the aforementioned Instruction No. 94-06, drafted as follows:
"Article 7 bis - Additional remittances in the form of cash paid or received by an institution, pursuant to Article 12 of Law No. 93-1444 of December 31, 1993, as amended, shall be recorded by such institution in accounts 3616 'Other miscellaneous debtors' or 3656 'Other miscellaneous creditors'.
Interest charges or products relating to these additional cash remittances shall be recognized on a time-proportionate basis, depending on the counterpart, in accounts 60169 or 60289 'Miscellaneous interest charges' or in accounts 70169 or 70269 'Miscellaneous interest products'.
When additional remittances are made in the form of bills or securities, they shall be recorded in accounts 9512 'Other values pledged as collateral' or 9522 'Other values received as collateral'."
Paris, January 30, 1995 The President of the Banking Commission