11951K051

Treaty establishing the European Coal and Steel Community - Title III - Economic and social provisions - Chapter 2 - Financial Provisions - Article 51

1. The Commission may not use the funds obtained by borrowing except to grant loans.

The issue of loans by the Commission on the markets of Member States shall be subject to the rules and regulations in force on these markets.

If the Commission considers the guarantee of Member States necessary in order to contract certain loans, it shall approach the government or governments concerned after consulting the Council; no State shall be obliged to give its guarantee.

2. The Commission may, as provided in Article 54, guarantee loans granted direct to undertakings by third parties.

3. The Commission may so determine its conditions for loans or guarantees as to enable a reserve fund to be built up for the sole purpose of reducing whatever amounts may have to be paid out of the levies in accordance with the third subparagraph of Article 50(1); the sums thus accumulated must not however, be used for any form of lending to undertakings.

4. The Commission shall not itself engage in the banking operations which its financial tasks entail.