10.5 If the Client fails to fulfil any of his obligations, the Bank shall be authorised not to fulfil its
undertakings and to retain the pledged assets. The Bank may consider any failure of any kind by the
Client to fulfil his obligations to pay as an act of default, for which the Bank shall, by way of guarantee,
have the right to declare that all the amounts payable by the Client have reached their due date and
as such are payable immediately. The Bank may proceed with the liquidation, in whole or in part, of
the Client’s open commitments and positions, at the Client’s expense and risk. In addition, the Bank
may, without formal notice and to the extent permitted by the law, either realise, or appropriate, all the
assets registered in one or more separate accounts that are subject of the pledge, notwithstanding
any insolvency or seizure procedure or any other situation of judicial reorganisation between creditors
11
of the Client or third parties constituting the pledge. In these cases, the expenses and risks are also
borne by the Client. The product of settlement/realisation shall be allocated to the refunding of the
guaranteed debt, in principal, interests, charges and accessories, by charging it to interest, the
charges and then on the capital to the extent permitted by law. The Bank shall have the right to claim
any possible losses from the Client that could result from the realisation of the pledge. In the event of
the appropriation of assets by the Bank, the assets shall be evaluated at the value at which they were
booked into the account and the assets shall remain with the Bank by way of payment and shall be
applied to the Bank’s claim on interests and charges, and then on capital to the extent permitted by
the law. Any balance shall return to the Client. The Bank shall also have the right to use the financial
instruments given in pledge, to the limits and conditions established by the applicable law.
10.6 The Client can use the pledged assets registered in a special account (including with a view to a
security for the benefit of a third party) in the amount in excess of the amount of the Bank’s claim at
any time. It is explicitly agreed that it shall be possible for the pledged assets to be substituted by other
assets equivalent to those originally pledged, in accordance with the legal provisions applicable to this
faculty of substitution, by the simple registration on an account of those other assets which shall follow
the same regime as the initially pledged assets, with no possibility of their being considered as
constituting a new security.
10.7 Provided the legal provisions and restrictions have been respected, the Client shall assign to the
Bank, by way of guarantee, all the debts owed or to be owed by him in relation to any person and all
the sums to become payable to him for whatever reason. The Client undertakes to supply the Bank, at
its request, with all information and documents relating to these assigned claims. He agrees that the
Bank itself shall obtain the information or documents that it wishes to obtain from the holders of the
assigned claims. If a Client fails to honour or fulfil any of his obligations towards the Bank, the Bank
shall, at the expense of the defaulting Client, send notification of the transfer mentioned above to the
holders of the assigned claims without prior formal notice or any other communication. The assignees
may not, from that moment on, validly discharge their debts other than to the Bank. In addition, and
without limitation to the rights mentioned above, the Client authorises and instructs the Bank,
irrevocably until all sums payable to the Bank have been paid to it in full, to collect or receive,
according to the methods laid down by the Bank, the payment, proceeds or income from the claims
mentioned above, in the Client’s name and on his behalf, if and to the extent at which the Client has
defaulted on payment, of any sum due to the Bank.
10.8 Without prejudice to any guarantee received, and subject to specific agreements to the contrary,
the Bank may at any moment demand the constitution of new guarantees or the strengthening of
guarantees already in its possession, in order to safeguard in any way that it deems reasonable
against any risks that it may incur following any transaction carried out with its Client. Any failure to
provide a new guarantee or to strengthen existing guarantees shall constitute a “failure of execution”
giving the right to realise the pledge in accordance with the Law of 15 December 2004.
10.9 This provision does not limit in any way any other rights and securities from which the Bank
benefits under the law, in particular the Bank’s privilege under article 31 of the Law of 2 August 2002,
on funds, Financial Instruments and currencies (i) that were handed over to it by Clients in order to
constitute the cover to guarantee the execution of Orders on Financial Instruments or fixed-term
operations on currencies or (ii) that it holds following the execution or settlement of Orders on
Financial Instruments or fixed-term currency operations. This privilege guarantees any claim from the
Bank following the execution or settlement of the above-mentioned Operations, including claims
originating from loans or advances. In the event of default on the payment of guaranteed claims, the
Bank may proceed by operation of law, without notification and without a legal decision, to the
realisation of Financial Instruments and fixed-term currency operations and to the compensation of
any claim against the Client with the cash or currencies in the account being subject to the privilege,
according to the applicable legal formalities.
