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Mortgage Refinancing System Creation - Instrumentation - Full Text Of The Norm


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HIPOTECARY REFINANCIATION SYSTEM Law 25,798 Creation. Trust. System Instrumentation. Effects. Mutuos Hipotecarios contracted prior to the validity of the Law of Convertibility. Complementary provisions. Watch. Sanctioned: November 5, 2003 promulgated: November 6, 2003

The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force of Law:

CHAPTER I - The Hypotective Refinancing System.

ARTICLE 1 Creation. Consider the HIPOTECARY REFINANCIATION SYSTEM which will aim at the implementation of the refinancing mechanisms provided for in this Act and its regulation.

ARTICLE 2 Eligible Mutuals. For the purposes of this law, it shall be understood as a mutually eligible mutual guarantee guaranteed with a real mortgage right that meets the following requirements:

(a) May the debtor be an undivided physical person or succession;

(b) That the fate of the mutual has been the acquisition, improvement, construction and/or expansion of housing, or the cancellation of mutual constituted originally for any of the aforementioned destinations;

(c) That such housing is unique and family.

The nature of the creditor does not constitute a requirement of eligibility, resulting in the inclusion of mutuals held with financial entities or non-financial creditors, without prejudice to article 26 of this law.

Article 3 Epoca de la Mora. The debtor of an eligible mutual shall have incurred a arrears between 1 January 2001 and 11 September 2003 and remain in that state from then until the date of entry into force of this law.

ARTICLE 4 Nature of the Mora. For the purposes of this Act, the default that empowers the creditor to attempt the executive way or, where appropriate, the procedures provided for in the special regime of extrajudicial executions authorized by Title V of Law No. 24,441 and its amendments shall be understood by default.

ARTICLE 5o A lot. The amount of the eligible mutual origin may not exceed CIEN MIL PESOS ($ 100,000), without prejudice to the provisions of the last paragraph of Article 16 of this Law.

ARTICLE 6 Optional System Character. Income to the Hypotective Refinancing System will be optional.

The power to exercise such an option shall apply only to the creditor party, where the creditor is a financial entity subject to the Act No. 21.526 and its amendments. In other cases, the option may be exercised by both the creditor and the debtor.

Regardless of the nature of the creditor, the time limit for exercising the said option shall be up to SESENTA (60) working days of the entry into force of the regulation of this law.

ARTICLE 7 Conditions of admissibility. The creditor that enters the Refinancing System established by this Act and is not subject to the Act No. 21.526 and its amendments shall submit the following documentation:

(a) A certificate of tax performance that proves that the funds given in mutual mortgage have been duly declared and the corresponding tax duly entered, as appropriate, in the terms of article 104 of Law No. 11.683 and its amendments.

In cases where the option is exercised by the debtor, it will not be necessary for this condition to be credited. The trustee is empowered to arbitrate the necessary means to determine the tax performance referred to and, where appropriate, to retain the payments to the creditor for the amounts to be determined by the tax authority.

(b) An affidavit granted by counsel and/or scribe with legal signature by the respective schools of the jurisdiction and/or certification of the secretariat of the court where the case is handled, which credits the legitimacy, subsistence and full legal effects of the mutual mortgage.

Invite the provinces to arbitrate the necessary means so that the affidavit referred to in this paragraph may be replaced by a record issued free of charge by the respective Property Registry and the means for the judge of the case to grant the waiver of the justice rate.

(c) An affidavit granted by national public accountant, signed by the respective professional councils, which credits the final amount of the credit.

The national executive branch shall arbitrate the necessary means so that the affidavit referred to in this paragraph may be supplemented by record issued free of charge by the General Assembly of the Nation (SIGEN).

(d) An affidavit granted by professional entitled to the effect by the regulation of science, art or profession, with legal signature by the respective collegiate entity, which credits the current valuation of the property.

In the event that the creditor party is subject to the law of Law No. 21.526 and its amendments shall report on subparagraphs (b), (c) and (d) preceding the Superintendence of Financial Institutions and Changes of the Central Bank of the Argentine Republic, supplementing the requirement of the professional signature by the appropriate intervention of the external auditor.

The Superintendence of Financial Institutions and Changes should report in a timely manner in the terms established by the regulation.

ARTICLE 8 Family group income. The debtor shall accompany an affidavit that credits the income of the family group.

Article 9 College of Comptroller. In all cases of articles 7 and 8 of this Act, the national executive branch, through the agencies that determine the regulation, may conduct any audits in order to verify the accuracy and consistency of the data contained in the respective declarations.

ARTICLE 10. Sanctions. The falsification or concealment of any data contained in the documentation set out in the preceding articles shall be subject to the perpetrators of criminal proceedings or other sanctions, provided for in special application regimes, which may correspond.

In addition, and with respect to the intervening professionals, the conduct shall be communicated to the respective collegiate entity.

ARTICLE 11. Instruments to subscribe. The national executive branch shall determine the instruments to be signed by the debtors, as well as the procedure for the implementation of the System established by this Act.


ARTICLE 12. Creation. Consider the FIDEICOMISO FOR HIPOTECARIAN REFINANCIATION, which shall be governed by this law and its regulation, resulting in subsidiary application of the provisions of Law No. 24,441 and its amendments.

ARTICLE 13. Object. The Trust is intended to implement the Refinancing System implemented by this law and its regulation.

ARTICLE 14. Organization. The national executive branch shall designate the trustee in a whole in accordance with the requirements of Act No. 24,441 and its amendments, and shall be entitled to determine the integration of the assets of the trustee.

ARTICLE 15. Delegation. Authorize the national executive branch to establish the participation in the present system of the FIDUCIARY FUND FOR THE RECONSTRUCTION OF COMPANIES, created by Decree No. 342 of 18 April 2000 and its amendments.

CHAPTER III - System Instrumentation

ARTICLE 16. System Instrumentation. For the purposes of the implementation of the System created by this Law, the following mechanism will be followed:

(a) The trustee will update the eligible mutuals for the purposes of which:

I. Cancel the creditor ' s outstanding contributions from the arrears to the date of such payment, and may issue financial instruments in accordance with applicable regulations;

II. In the context of the declared economic emergency, no compensatory, punitive, expenditure or fees shall be recognized;

(b) The trustee, in respect of the creditor, will henceforth observe the original conditions of the mutual, without prejudice to the applicable rules in the area of updating coefficient and interest rate;

(c) The trustee shall restructure the aggressions in accordance with the terms set forth in article 17 of this law;

(d) The payments made by the trustee to the creditor shall have all the effects of the legal subrogation, transferring all the rights, actions and guarantees of the creditor to the trustee, both against the principal debtor and its co-authors.

The provisions of the Civil Code regarding subrogation shall be supplemented;

(e) The creditor party shall maintain as a guarantee the real right of mortgage for the portion not yet replaced by the trustee in accordance with the provisions of this article; (f) The debtor shall proceed to cancel its obligation by payment to the trustee in accordance with the provisions set out in subparagraph (c) of this article, being released from such obligations.

The only releasing payments of the debtor will be those made to the trustee so that the actual mortgage right will remain to the full satisfaction of the amount owed.

In no case shall the payments made by the trustee to the creditor exceed the current market value of the property subject to the security right, as reported in accordance with article 7 (d) of this law.

ARTICLE 17. Refinancing. The national executive branch shall establish the conditions for the cancellation of mutuals eligible to the trustee, in accordance with the following general guidelines:

(a) In all cases, the debtor shall be granted a period of grace of UN (1) year, which is extended from the validity of the regulation of this law.

Without prejudice to the above, if the severity of the socio-economic situation of the debtor so determined, additional time limits may be granted as an exception.

If it is the grace period or, if any, the additional time limits, the debtor shall begin, without exception, to cancel the debt with the trustee;

(b) Monthly, equal and consecutive fixed fee;

(c) Minimum value of the quota equivalent to a percentage of the eligible mutual;

(d) Quota compatible with the income of the family group and with the updated value of the property as reported in accordance with article 7 (d) of this Act;

(e) Interest rate and updating coefficient applicable in accordance with current regulations.

CHAPTER IV - Effects

ARTICLE 18. Very personal nature of refinancing. Prior to the transmission of the real mortgage right seat, the remaining refinancing balance must be cancelled to the trustee.

ARTICLE 19. Absolute zero. An absolute nullity is any convention between creditor and debtor that extends or generates new obligations to the latter in relation to the eligible mutual subject of refinancing.

ARTICLE 20. Novation absence. The alterations in respect of the time, place or manner of compliance that are subject to the primitive obligation as a result of the application of the provisions contained in this Act shall be regarded as modifying only the obligation, but not as extinction or as novation.

ARTICLE 21. Effects of non-compliance. The only non-compliance of the debtor party of THREE (3) consecutive or CINCO quotas (5) emerging alternate quotas of this Refinancing System shall be entitled to the execution of the mortgage.

ARTICLE 22. Special privilege. The trustee shall have special privilege for up to the concurrence of the amounts he would have paid in subrogation to the original creditor.

CHAPTER V - Of the Mortuos Hipotecarios contracted prior to the validity of the Law of Convertibility.

ARTICLE 23. Restructuring unit. A REESTRUCTURATION UNIT shall be established for the purpose of the analysis of the mutuals that are eligible in the terms of this law, except in respect of the time of the Moor laid down in article 3 of this Law, and which have been concluded prior to the validity of the convertibility of the Austral provided for in Act No. 23.928, in accordance with the guidelines established by the regulation.

The unit shall operate within the Ministry of Economy and Production, and shall be composed of UN (1) representative of the precited Ministry, UN (1) representative of the Ministry of Justice, Security and Human Rights, UN (1) representative of the Honorable Chamber of Deputies of the Nation, UN (1) representative of the Honorable House of Senators of the Nation, UN (1) representative of the Hipotecario Sociedad AnĂ³nima and UN (1) representative of the Associations of Deudores of the Former Banco Hipoteb

CHAPTER VI - Complementary provisions

ARTICLE 24. The provisions of this Act do not preclude the powers granted to the creditor to agree directly with its debtor, in accordance with article 11 of Act No. 25.561.

ARTICLE 25. The national executive branch, through the Ministry of Economy and Production, shall be the Authority for the Application of this Law, having the authority to issue regulatory, complementary and clarification rules.

ARTICLE 26. Invite the Provinces and the Autonomous City of Buenos Aires to adhere to this System, dictating for its purposes the relevant regulatory bodies to similarly resolve the situations they maintain with their respective provincial housing institutes or the Municipal Housing Commission, as appropriate.

ARTICLE 27. This law will begin to govern from the day after its publication in the Official Gazette.

ARTICLE 28. Contact the Executive.



EDUARDO O. CHANGE. . JOSE L. GIOJA. . Carlos G. Freytes. . Juan Estrada.