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While the leaders will have to give pledges to the bankers in the day (and possibly put in guarantee the future subsidies of the State, the seat of the party already being mortgaged), voices have been raised for more radical changes. Some, like Christian Estrosi, deputy mayor of Nice interviewed by Le Parisien, plead for a name change:
“We can not help but change our name. It is not a restructuring with a congress at least that is necessary, but a real revolution! ”
Others hope even to make disappear the UMP founded in 2002. Thus, Xavier Bertrand, deputy-mayor of Saint-Quentin and secretary general of the party between 2008 and 2010, interviewed on France Info:
These declarations are primarily intended to reinvigorate politically a party undermined by its conflicts and its business. But what would become of the debt of the UMP if it disappeared?
2. Who is legally responsible for the debt of the UMP?
At the heart of the complexity of the affairs of the UMP, this question is one of the most difficult.
In the law, everything seems simple. Like all other political parties in France, the UMP is an association law 1901. It is therefore subject to the same legislation as all associations. “According to the statutes of the UMP, the president represents the party in all acts of civil life, which necessarily includes the signing of contracts, the payment of bills and also implies to bear the consequences, unless there was no delegation of powers, ” explains Jean-Christophe Ménard, a lawyer and specialist in political party law. Elected by the members, he is therefore responsible for the debt to the creditors https://www.forloveandart.org/2015/01/13/paradox-confusion-and-amazon-com/.
Responsible but not necessarily guilty. By filing a complaint on his behalf (or after a complaint has been lodged by a member or a creditor such as a bank) and during a criminal trial, the president of an association may possibly question the management of his predecessors or the person to whom he had delegated his decision-making power. This is the defense of Jean-Francois Cope when he said on May 26 on BFM-TV that he was not involved in the day-to-day management of the party’s finances. At a trial, the courts may also conclude that the party has suffered a fraud or breach of trust (by a candidate for example or by a company) that has caused the party to spend more than reasonable. The president can then be exonerated from his responsibilities. But it is up to the courts to decide after an investigation.
But who chairs the UMP and is therefore responsible for the debt? Since the political bureau of June 10 and the ouster of Jean-Francois Cope, the UMP no longer has a president and gave himself six months to elect a new one. The triumvirate of the former prime ministers, François Fillon, Alain Juppé and Jean-Pierre Raffarin, took over the presidents without having the status of the president, and Luc Chatel is only acting secretary general. At the UMP, for the moment, we are unable to say who has legal responsibility for this liability. The new president elected in the fall will, in any case, inherit the debt of his predecessors.
3. The name change? A decision of the party that does not change anything
What would become of the debt of the UMP if the party was renamed? “The change of name is a decision of the party that does not change anything to the debts owed by the UMP and any liabilities incurred,” said Jean-Christophe Ménard.
If the change of name has a meaning politically, since it allows to erase an acronym considered too heavy, it would not solve the financial problem: the debt would continue to plummet the finances of the former UMP whose former leaders would be always responsible.
4. The creation of a new party? A dissolution of the association, not creditors
And if the UMP disappeared to make room for a new entity? This eventuality would go through a dissolution of the association.
The other hypothesis is that of a judicial dissolution. A way imposed if a creditor seizes a court to recover a portion of the money http://www.beach-house-properties.co.za/blog/stunning-onrus-home-with-spectacular-views/ owed to him and the party is unable to pay. In this case, the procedure is more restrictive for the party, since the judge appoints himself a judicial liquidator responsible for inventorying assets and liabilities. But the leaders of the UMP would not be exempt. “Throughout the liquidation period, the party and its organs retain their legal personality and their responsibility can always be engaged,” continues Jean-Christophe Ménard. The debt may, therefore, continue for a long time the leaders of the UMP.
A weighted President to appease the banks. This is Nicolas Sarkozy of a new kind who presented the anti-crisis fiscal French plan. Calm, collected. In this time of major economic turbulence, the man responsible State succeeded the turbulent political beast. So much for the form. In the background, there is a number to remember, plump: 360 billion euros. The state provides a “pay” guarantee interbank loans up to 320 billion euros and spends up to 40 billion euros to recapitalize banks that are in trouble.
Noting that “nothing should be spared to prevent the crisis is aggravated” and that “money does not circulate,” the Head of State announced these exceptional measures, which are the French implementation of the plan adopted Sunday by the 15 countries of the Eurogroup.
This guarantee interbank lending “will apply to loans contracted before 31 December 2009 and for a period of up to five years, announced Nicolas Sarkozy. Secured debt will take priority over all other debts in the event of borrower default setting. ”
For this purpose, “a company will be created,” announced the President, without specifying the precise contours, and “loans issued by the company for funding will be guaranteed by the state.” But this will not happen “without compensation”, he warned. “The guarantee will be paid at a normal market price. She will return to the signing of an agreement laying down the obligations of the recipient institutions. ”
These “bonds initially will focus on ethics, including the issue of compensation,” not to reproduce “the scandalous excesses observed in recent years.” An allusion to the golden parachutes granted to executives of large companies after their departure.
The obligations also concern “funding from individuals, businesses, SMEs and local authorities.” The state guarantee should be used to “prime the credit pump and not to fuel a precautionary hoarding,” warned Nicolas Sarkozy.
This device “will be available only to credit institutions that have sufficient equity,” said the head of state. The figure of 320 billion is a “maximum”. “No doubt he will ever be reached,” said the President. And to clarify the gentleman address everyone: it “will not be a cost to the taxpayer.” In the absence of “failure” of an institution, “the taxpayer will win the number of commissions earned on risk coverage.”