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Company Law (en cours)

Unlike money, grains, or liquors , transferable securities are goods that are not consumed by their first use. Therefore, the provisions of Article 587 of the Civil Code, which state that the usufructuary has the right to use consumable goods, provided that they return, at the end of the usufruct, either things of the same quantity and quality or their estimated value at the date of restitution, d …

Goods not consumed on first use

Unlike money, grains, or liquors , transferable securities are goods that are not consumed by their first use. Therefore, the provisions of Article 587 of the Civil Code, which state that the usufructuary has the right to use consumable goods, provided that they return, at the end of the usufruct, either things of the same quantity and quality or their estimated value at the date of restitution, do not apply to them . However, since portfolios of marketable securities constitute a universality, the usufructuary of a portfolio of transferable securities, authorized to manage this universality, may sell securities if they replace them, as they are responsible for preserving the substance and returning it, even if they have been exempted from providing security .

The bare owner heir may request the usufructuary, from the opening of the succession until the day of partition, to provide information on the evolution of the portfolio of securities, in order to assess its value and substance by reference to its substance and value on the day of the opening of the succession . He may enjoin the usufructuary to communicate all necessary elements to determine whether the only remaining securities on the day of partition truly represent the entirety of the universality he was responsible for preserving .

Civil Code, Art. 587, concerning quasi-usufruct.

Cass. 1re civ., 9 July 2003, LawLex202300005850JBJ; 4 April 1991, LawLex202200009352JBJ, specifying that a usufructuary does not have complete freedom to manage a portfolio of bearer securities included in an estate when these securities are not consumable upon first use.

Cass. 1re civ., 12 November 1998, LawLex202200009187JBJ; Cass. com., 27 November 2007, LawLex202200009188JBJ, considering that one who, in a donation with partition, transfers only the bare ownership of their portfolio of securities and retains the usufruct, is authorized to manage the whole, notably by transferring securities, provided they preserve the substance and return it; Cass. 1re civ., 17 March 2010, LawLex202200009189JBJ, holding that the usufructuary of a portfolio of securities, consisting of non-transferred bonds, who receives the repayment of matured securities, and who benefits from a quasi-usufruct on the received capital, may dispose of it provided they return it at the end of their usufruct; 16 June 2011, LawLex202200009275JBJ; CA Rennes, 15 November 2022, LawLex202300005462JBJ; A contrario, Cass. com., 12 July 1993, LawLex202200009697JBJ, affirming that a usufructuary cannot demand possession of bearer securities, transfer them to their account, subsequently transfer them to another institution, and cash in the amount, as long as they are not consumable by first use, and the usufructuary's rights must be exercised in ways that safeguard those of the bare owner.

Cass. 1re civ., 3 December 2002, LawLex202200009190JBJ.

Company Law (en cours)

64. Goods not consumed on first use

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64. Goods not consumed on first use

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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