Financial And Monetary Code

Original Language Title: Código Orgánico Monetario y Financiero

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Read the untranslated law here: http://www.asambleanacional.gob.ec/es/system/files/ro_codigo_organico_monetario_y_financiero.pdf



CONSIDERING: That, in accordance with article 261 article 5 of the Constitution of the Republic, the central State will have exclusive powers over economic and monetary policies among others. That, article 283 of the Supreme State Charter establishes that the economic system is social and solidarity; It recognizes the human being as subject and purpose; It tends to a dynamic and balanced relationship between society, State and market, in harmony with nature; It aims to ensure the production and reproduction of material and immaterial conditions enabling good living; and it prescribes that the economic system is comprised of forms of economic organization, public, private, mixed, popular and solidarity, and the others determined by the Constitution; That article 284 of the Constitution of the Republic provides that economic policy will have the following objectives: 1) ensure an adequate distribution of income and national wealth; (2) encourage national production, productivity and systemic competitiveness, the accumulation of scientific and technological knowledge, the strategic insertion in the world economy and productive activities complementary in regional integration; (3) to make the sovereignty of food and energy; (4) promoting the incorporation of value added with maximum efficiency, within the biophysical limits of nature and respect for the life and cultures; (5) to achieve a balanced development of the national territory, the integration between regions, in the field, between the field and the city, in the economic, social and cultural; (6) promote the full employment and rating all the forms of work with respect to the rights labour; (7) maintaining economic stability, understood as the highest level of production and employment sustainable over time; (8) promote the fair and complementary exchange of goods and services in a transparent and efficient markets; (9) promote socially and environmentally responsible consumption; That, in accordance with paragraphs 2 and 3 of the Constitution of the Republic, article 302 monetary, credit, foreign exchange and financial policy will have as objectives: establish global liquidity levels that ensure adequate financial safety margins and direct excess liquidity for the investment required for the development of the country, respectively; Article 303 of the political Charter of the State prescribes that the formulation of policies, credit, monetary, financial and exchange rate is exclusive Faculty of the Executive function that is implemented through the Central Bank and the execution of credit and financial policy shall also be exercised through public banks;

4 second supplement - official record No. 332 - Friday 12 September of 2014 that article 308 of the Constitution orders that financial activities are a public order service and may exercise a prior authorization of the State, in accordance with the law; That, article 309 of the Constitution of the Republic provides that the national financial system is composed of the sectors public, private and people and solidarity, that mediate the public resources and prescribes that each of these sectors will have rules and specific and differentiated, control entities that are responsible for preserving its security, stability, transparency and solidity; That article 312 of the Constitution of the Republic establishes that the institutions of the private financial system, its directors and major shareholders may not be holders, directly or indirectly, of shares and participations in companies outside the financial sector; That, according to article 338 of the Constitution of the Republic, the State will promote and protect domestic savings as a source of productive investment in the country; That, it is necessary to systematize a legal body within all provisions of laws relating to policies monetary, financial, credit and currency exchange, as part of the new Ecuadorian financial architecture; That, it is necessary to determine the institutions responsible for the formulation of policies in the fields of monetary, financial, credit and foreign exchange, as well as the regulation of financial services enforcement and control; and, in exercise of the powers laid down in article 120 paragraph 6 of the Constitution of the Republic, issued the following: code organic monetary and financial title preliminary provisions common chapter 1 principles General article 1.-purpose. The monetary and financial code aims to regulate the monetary and financial systems, as well as the regimes of securities and insurance of the Ecuador. Article 2-Scope. This code sets out the framework of policies, regulations, supervision, control and accountability governing the monetary and financial systems, as well as the regimes of securities and insurance, the exercise of their activities and the relationship with their users. Article 3-Objectives. The objectives of this code are: 1. enhance the generation of work, the production of wealth, its distribution and redistribution;

2 ensure that the exercise of the activities of monetary, financial, securities and insurance is consistent and integrated;

3. ensure liquidity of the economy to contribute to the implementation of the economic program; 4 to ensure the sustainability of the national financial system and schemes of insurance and securities and guarantee the fulfillment of the obligations of each of the sectors and entities that make up them;

5. mitigate systemic risks and reduce economic fluctuations; 6. protect the rights of users of financial services, securities, and insurance; 7. deepen the process of Constitution of a social and solidarity economic system, in which humans are the end of public policy;

8. strengthen the inclusion of strategic regional and international; 9 promote, promote, and create incentives in favor of Popular and solidary economy entities; and, 10. Promote access to the credit of human mobility, disabled people, young, single mothers and other persons belonging to the groups of priority attention.

Article 4.-Principles. The principles underlying the provisions of the organic code of monetary and financial are: 1. the prevalence of the human being above the capital; 2. the subordination of the scope monetary, financial, securities and insurance as an instrument at the service of the real economy;

3. the exercise of monetary and financial sovereignty and international strategic insertion; 4. the inclusion and equity; 5. the confidence-building; and, 6. The protection of citizenship rights. Article 5.-Policy. The formulation of policies and regulations in monetary, credit, foreign exchange, financial matters, as well as insurance and securities, is private Faculty of the Executive function and aims to those determined in the articles 284 and 302 of the Constitution of the Republic and those set forth in the National Development Plan.

Chapter 2 article 6.-integration institutions. Integrate national financial and monetary systems entities in charge of the second supplement - official record No. 332 - Friday, September 12, 2014 - 5


formulation of policies, regulation, implementation, supervision, control and financial security and solidarity and popular, private and public entities that exercise financial and monetary activities. Securities and insurance schemes integrated entities responsible for the formulation of policies, regulation, implementation, supervision and control, as well as public and private entities that hold securities trading and carry out insurance activities. Article 7.-Conflict of interest. They may not be civil servants or members of institutions of regulation or control of the domestic financial system or systems of insurance and securities who have interests of patrimonial character in the areas to be regulated, supervised or controlled, or represent or advise third parties that have, within the scope of this code. The public servants of the regulation or control entities shall refrain from acting in cases where their interests come into conflict with those of the agency or entity in which provide their services or are evident or befalls a fact that cause conflict of interest. The members of the Board of policy and monetary regulatory and financial, and the superintendents in charge of control of the domestic financial system and schemes of insurance and values outlined in this code, before assuming office, shall declare in public, under oath instrument, that neither him or her, your spouse or partner are in conflict of interest nor have family relationship within the second degree of consanguinity and second affinity with people with heritage property with influence and with managers of private and popular and solidary financial institutions, insurance and private equity, in the field of their respective competence. For entities whose participation is greater than 3% of the total assets of the national financial system, people who have relationship within the fourth degree of consanguinity and second of affinity with people with heritage property with influence and with managers of financial institutions private and popular and solidary are falling on conflict of interest insurance and private equity, in the field of their respective competence. Before the start of a session which will discuss regulatory or control, the members of the Board of policy and financial and monetary regulation and superintendents mentioned in this article, shall report the existence of conflict of interest superviniente, a fact that should be incorporated into the corresponding Act, and excuse to act. No member of the Board of political and regulation monetary and financial may intervene or vote in those Affairs in which he, his spouse or partner, their relatives until the third grade of consanguinity or second of affinity, or your partner or partners indeed or of right have interests of character heritage. In these cases, Member must be removed from the session while the matter about which you have conflict of interest question.

Superintendents indicated in this code may not solve or intervene in matters in which, your spouse or cohabiting partner or their relatives up to the third degree of consanguinity or second of affinity, or your partner or partners in law or in fact have interests of patrimonial character. The conflict of interest of a patrimonial nature referred to in this article will be set by the ownership of 1% or more of the capital subscribed and paid in regulated or controlled entity or equivalent to thousand basic salaries unified, which is greater. In this case Member, official or servant of the regulatory and control bodies must get rid of securities that caused the conflict of interests of patrimonial character. If a member, official or servant of the regulatory and control bodies is owner of shares in one of the entities regulated or controlled by an amount less than that determined in the preceding paragraph, it is obliged to make known the fact in writing to the appointing authority. Similarly, inform you if I have a spouse or relative within the third degree of consanguinity or second of affinity, or father or adoptive son, who are working in these institutions. Failure to comply with this provision will be causal removal. There is no conflict of interest when they decide and vote with effects of General Affairs. It will be causal suspension from duties incurred in conflict of interest. The provisions of this article are not applicable in the regulation and control of the companies referred to in the companies act. Article. 8. officials of bodies of regulation and control. No Member, official or servant of the bodies of regulation and control over matters monetary, financial, insurance and securities, while in the performance of their duties, may be director, officer or employee of any of the financial entities private or popular and solidary economy or of private securities and insurance entities. Servers and officials of the indicated agencies, with the exception of those who are subject to the labour code, may not grant a security or hiring credits with the entities of the national financial system, except that they have the express permission of their highest authority. The members of the regulatory bodies and the holders of control agencies will make public on the website of your institution the balance of appropriations which remain in force, with quarterly periodicity. Members, servers and staff members who are part of the organizations that carry out activities of regulation, supervision and control, will be prevented from providing their services in regulated entities or in which they are 6 - second supplement - official record No. 332 - Friday 12 September 2014 under its control, as appropriate, in any contractual form, scope and to intervene or negotiate directly or indirectly with these organs for the benefit of such entities regulated and controlled until after two (2) years completed their duties, without prejudice to the limitations of article 153 of the Constitution determines. Violation of this impediment shall constitute a serious infringement by the regulated or controlled entity, which shall be punished in accordance with the section 11 of Chapter 3 of this code, article 208 of the securities market law or article 40 of the General Law of insurance, as appropriate according to the nature of the infringing entity. This prohibition applies only to the case of the entities regulated, controlled or supervised in accordance with the scope of this code. Workers subject to the labour code of regulation, supervision or control bodies are not subject to this prohibition. Article 9.-Coordination. The bodies of regulation and control and the deposit insurance corporation, liquidity Fund and Fund of private insurance, will have the duty to coordinate actions for the fulfilment of its purposes and make effective the enjoyment and exercise of the rights recognized in the Constitution, for which purpose shall exchange data or reports related to entities subject to its regulation and control. Under stealth and reservation information will be treated in accordance with the provisions of this code. Article 10.-Coercive jurisdiction. Grant is to them superintendencies, to the Corporation of secure of deposits, Fund of liquidity and Fund of safe private, to the Bank Central of the Ecuador, to them entities of the sector financial public, the jurisdiction coercive for the collection of them credits and any type of obligations to its please or of third, that will be exerted by the representative legal of such entities. The exercise of coercive jurisdiction may be delegated to any server of the entity through the corresponding Act. The coercive exercise rigging any degree credit from those determined by law. The procedure of coercive to be followed will be determined by law. Article 11.-Support of the public force. The Superintendents who referred to in this code, as part of their actions of control financial activities, insurance and securities, in order to safeguard the value of the assets of these institutions and to preserve the integrity of the information, request direct and accordingly enforcement support so that executive officials from entering an entity remain in it and keeps it, being obligatory for the public force to provide immediate assistance which prompted. Article 12.-Supervision and social control. The superintendencies, the Central Bank of Ecuador, the deposit insurance corporation, liquidity Fund and Fund of private insurance, public finance and securities and insurance public entities will be subject to citizen oversight and social control, via the control mechanisms provided for in the legislation in force.

Section 1 of the policy and monetary regulation Board and


Financial article 13.-conformation. Create the policy and monetary regulation and Board financial, part of the Executive function, which is responsible for the formulation of public policies and regulation and monetary, credit, foreign exchange, financial, insurance and securities supervision. The Board will be formed with full rights by them holders of them ministries of State responsible of it political economic, of the production, of them finance public, the holder of the planning of the State and a delegate of the President of the Republic. They will participate in the deliberations of the Board, with voice but without vote, Superintendent of banks, the Superintendent of companies, securities and insurance, the Superintendent of Popular and solidary economy, the General Manager of the Central Bank of Ecuador and the President of the directory of the Corporation of insurance deposit, liquidity Fund and Fund of private insurance. The Board's policy and financial and monetary regulation may invite to participate in its sessions to any other public authority, private or popular and solidary entity deemed necessary for its deliberations. Article 14.-Functions. The Board has the following functions: 1. formulate and direct policies monetary, credit, foreign exchange and financial, including the policy of insurance and securities;

2 regulate the implementation of monetary, credit, foreign exchange and financial policies, including the policy of insurance and securities rules, and monitor their implementation;

3 regular rules financial activities carrying entities of the national financial system and institutions of insurance and securities activities;

4. regulate the creation, Constitution, organization, operation and liquidation of banks, insurance and securities;

5 learn about the results of the check carried out by the concerned superintendents in this code, the monitoring and surveillance carried out by the Central Bank of Ecuador and about reports that present the deposits insurance corporation, liquidity Fund and Fund of private insurance, within the scope of its powers;

6. apply the provisions of this code, the standard-setting regulatory and solve the cases not provided;

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 7 7. Approve the monetary, credit, foreign exchange and financial programming will be aligned to the Government's economic programme;

8. authorize the investment of surplus liquidity and reserves policy; 9 know and solve challenges arising to the acts of the Board, pursuant to the Statute of the regime legal administrative and the function Executive;

10 submit to the President of the Republic proposals for modification of the monetary, credit, foreign exchange, financial, insurance and securities legislation;

11 establish, within the framework of its powers, any measure that contributes a: to) prevent and discourage fraudulent practices, including money laundering and the financing of crimes such as terrorism;

b) protect the privacy of individuals in relation to the dissemination of your personal information, as well as national security information;

(c) to protect the integrity and stability of the national financial system and the sustainability of the monetary regime and regimes of securities and insurance;

d) safeguard economic performance in emergency situations; (e) encourage regional integration processes; (f) ensuring the sustainability of the balance of payments, economic planning for the good life and the defense of the nascent industry;

(g) create incentives to the institutions of the financial system by the creation of products oriented to promote and facilitate the economic inclusion of groups of priority attention such as in human mobility, disabled people, young and single mothers.

12 determine the national economy the level of global liquidity consistent with the strategic objectives set for the exercise of policy;

13 plan, regulate and monitor the levels of liquidity in the economy; 14. define the criteria to follow for the management of the liquidity surplus, in order to stimulate domestic investment, their sustainability, their consistency with the objectives of economic growth, job generation, sustainability of the balance of payments, reduction of inequality and the distribution and redistribution of income;

15 issue the regulatory framework management, solvency and prudence that financial institutions must hold, securities and insurance, in line with the macroeconomic objectives;

16 set the levels of liquidity reserves, domestic liquidity, heritage, technical patrimony and the weightings for risk assets, its composition, shape of calculation and modifications, that financial, securities and insurance; entities should be

17 determining quotas of the sector entities private and popular and solidary financial that may contract with the Central Bank of Ecuador for operations of one-stop discount or domestic investment, subject to this code, on the basis of creditworthiness, economic relations and economic policy to be determined for this purpose;

18 set for non-financial legal entities performing credit transactions above the limits determined by the Board, requirements of minimum reserves, capital and liquidity requirements and others that ensure its proper management and solvency, as well as its form of calculation, in the framework of economic policy.

19 establish means of payment; 20 regulate the national system of payments; 21 regular management of electronic currency and available to the Central Bank of Ecuador its implementation, monitoring and evaluation, as well as the metal currency, in accordance with the provisions of this code;

22 determine the requirements applicable to financial entities, securities and insurance, consistent with the objectives of economic policy;

23 establish levels of credit, interest rates, liquidity, lace and provisions applicable to the credit, financial and commercial operations reserves and others, which may be defined by segments, economic activities, and other criteria;

24. regulate the growth of financial institutions, securities and insurance, to reduce the vulnerability of the economy;

25 rules for the functioning of the payments and transfers and from Ecuador; 26 establish moratoriums for the establishment of new financial institutions, securities and insurance; 27 comply with the functions as the securities market law gives, as well as regulate the Constitution, operation and liquidation of funds and trust business;

28 set charges for services that provide financial institutions, securities and insurance as well as non-financial entities that grant credit and costs with third parties arising from the active operations incurred by the users of these entities;

8 - Second supplement - official record No. 332 - Friday 12 September 2014 29. Set the maximum limit of costs and fees that may be agreed by the use of the service of payment with credit card, debit and other means of similar nature to commercial establishments.

These costs and fees may not exceed the maximum limits provided for the Board, whereas in addition to other operating factors, the maximum effective rate issued by the Central Bank of Ecuador;

30 adjust the maximum levels of compensation and other economic, social benefits and compensation of managers of financial institutions, securities and insurance, whereas the profitability, risk, assets and the capital of the entity in comparison with the rest of the system;

31 set policy guidelines for credit and investment and, in general, assets, liabilities and contingent operations of entities of the national financial system, in accordance with this code;

32. determine the type of entities that may have checking accounts and securities on the Central Bank of Ecuador;

33 dictate the rules governing insurance and reinsurance; 34 regulate the fiduciary management of public financial sector entities; 35 set the segmentation of the popular and solidary financial sector entities; 36 determining the banking nature of the Central Bank of Ecuador operations subject to the control of the Superintendence of banks and the operations of the trusts of the deposits insurance corporation, liquidity Fund and private insurance fund subject to the control of the respective superintendents;

37 authorize the Central Bank of Ecuador and financial entities, securities and insurance, new activities that, without being banned, may be necessary for the fulfilment of the objectives of the policy of monetary, financial, credit, foreign exchange, securities and insurance, according to regulations that handed down for effect;

38 require the suspension of the application of the regulations issued by the control bodies; 39 set units of account; 40 learn about reports that, in the field of


its powers, the Central Bank of Ecuador, the organisms of control and the deposit insurance corporation, liquidity Fund and Fund of private insurance, financial and monetary systems status and on financial institutions, insurance and securities;

41. regulate the Constitution, organization, operation, settlement and registration of complementary pension funds and investments, as well as the minimum requirements to occupy the post of administrators;

42 appoint the Administrative Secretary of the Board; 43 appoint the Manager General of the Banco Central of the Ecuador; 44 approve the Statute of the Central Bank of Ecuador and its reforms, prior compliance with the requirements specified in the organic law of the public service;

45 approve annually the budget of the Central Bank of Ecuador and the entities of the public financial sector, insurance and public values, its reforms, as well as regulating its implementation;

46. annually approve the financial statements of the Central Bank of Ecuador and the deposit insurance corporation, liquidity Fund and private insurance fund;

47 regular participation as shareholders in entities of the national financial system, natural or legal persons domiciled in tax havens;

48 present to the President a report of accountability during the first quarter of each year compared to the previous financial year, when required by the President or the Board deemed relevant;

49 issued the rules of a general nature for the payment of the Fund of private insurance coverage; 50 determining the percentages and destination which will be divided the contribution on net direct insurance premiums established in the law when hiring private insurance policies;

51 dictate standards of transparency and disclosure of information to all entities of the national financial system and securities and insurance schemes;

52 require auditors and rating agencies the necessary information; 53. determine the value of the coverage that is paid with charge to the Fund of private insurance; 54 regular instrumentation of the alternation of administrators of the popular and solidary financial sector entities; and, 55. Exercise other functions assigned to the law. For the fulfilment of these functions, the Board issued rules in matters within its competence, unless they can alter the legal provisions. The Board may issue regulations by segments, economic activities, and other criteria.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 9 the Board may directly request information that it deems necessary, without any restriction, to the Central Bank of Ecuador, to the superintendencies described in this code, in the service of internal revenue, to the national customs service, to the portfolio of State in charge of public finance, the deposit insurance corporation , Fund liquidity and Fund of private insurance and the financial analysis unit. The Board may, through the respective supervisory bodies, require information of the entities of the national financial system, securities and insurance and any non-financial entity granting credit above the limits established by the Board, being these entities obliged to provide it within the time limits established for the effect. The Board can have the Advisory and consulting as it deems necessary for the effective performance of its functions. Article 15.-Macroeconomic abilities. The Board of policy and financial and monetary regulation may establish conditions and limits to the position in external assets that financial institutions, securities and insurance, as well as non-financial entities that grant credit above the limits established by the Board, remain outside. The Board's policy and financial and monetary regulation may establish conditions and limits on the external debt to financial institutions, of securities and insurance and non-financial entities that grant credit above the limits established by the Board, the country contracted abroad. In addition, you can set conditions and limits on the amounts of deposits, guarantees, warranties, or any other contingent that grant the entities of the national financial system to any natural or legal person. The Board of policy and financial and monetary regulation may provide that the currencies from the operations which it shall determine, compulsory to enter the country and establish fines up to the amount of currencies not entered, in the event of a breach of such obligation. These fines shall be imposed by the Central Bank of Ecuador. It should not be able to collect these obligations through bank debits, be recovery through the coercive way. Article 16.-Proposals to the Board. Bodies of control, the Central Bank of Ecuador and the deposit insurance corporation, liquidity Fund and Fund of private insurance, within the scope of their respective competences, may prepare and propose to the Board or at the request of this, plans, studies, analyses, reports and proposals of policies and regulations. Article 17.-Confidential information. With the aim of ensuring the sustainability of monetary, financial, insurance and securities, the Board will accordingly qualify as reserved information related to the areas of management, in accordance with the procedure established for the effect.

The Administrative Secretary of the Board will take an ordered listing of all files and confidential information, which will comprise the date of qualification and reservation period and the reasons that underlie it. A person who disseminate confidential information will be punished according to the law. Article 18.-Advisory Council. It is the instance of consultative status for public policy feedback. This instance will have representation of civil society; of the productive sectors; of the popular and solidarity and private sectors of the national financial system, whose election, participation and requirements of individuals and organizations will be determined in the regulations issued by the Board. Article 19.-Operation. The Board will meet in regular way each month and dramatically when its President, will call it ex officio or at the request of at least two of its members, to para tratar try to themes specific. The quorum required for the installation of the Board is three members voting. The decisions of the Board shall be taken by a simple majority, unless the law may provide, for certain materials, different treatments. In the event of a tie, the Chairman of the Board will have the casting vote. The votes of the members of the Board shall be expressed as positive or negative and abstention is not permitted. The votes will represent the institutional point of view. The Board shall issue the rules governing its operation, on the basis of the provisions of this code. Article 20.-Jurisdiction. The members of the Board shall have jurisdiction of the national court of justice by acts and administrative decisions made in the exercise of their functions. Article 21.-Acts of the Board. The acts of the Board enjoy the presumption of legality and are expressed through resolutions that will have binding force and begin to run from the date of its publication in the Official Gazette, except those for which the Board, due to the matter, provided that they governed from the date of issue, without prejudice to subsequent publication in the Official Gazette. In these cases, those resolutions will be published on the website of the Board of policy and financial and monetary regulation, within a maximum of 24 hours from the date issued, except for those classified as reserved. The Board, to the formation and expression of its political and administrative will, does not require the competition of a different entity or the approval of their actions by other bodies or institutions of the State. Article 22.-Claims and remedies. Administrative or regulatory acts of the Board may be 10 - second supplement - official record No. 332 - Friday, September 12, 2014, challenge, amendment, revocation or repeal, in accordance with the rules and procedure determined in the Statute of the regime legal administrative and the function Executive, according to the nature of the Act. Article 23.-Chairman of the Board. It will act as Chairman of the Board policy and monetary regulation and financial the holder of the Ministry of State in charge of economic policy, strategic body responsible for the processes required for the Organization and management of economic policy and macroeconomic programming and its consistency. In case of absence of the Chairman of the Board, will assume the chairmanship the delegate of the President of the Republic. Article 24.-Functions of the President of the Board. The Chairman of the Board shall have the following functions: 1. exercise the representation of the Board; 2. run and to comply with the decisions of the Board; 3 convene, preside over and direct the sessions of the Board; 4 report to the Board on the implementation and application of


policies and regulations; and, 5. Any other entrusted by the Board. Article 25.-Administrative Secretary of the Board. He Secretary administrative will be appointed by the Board and will have as functions the following: 1. perform them calls to them sessions of it together; 2. bring the minutes of meetings; 3 attest to the resolutions of the Board; 4. keep the files of the Board; and, 5. Others assigned by the Board and this code. To become Secretary of the Board will be required to have at least third level professional qualification in matters related to the functions of the Board.

Section 2 of the Bank Central of the Ecuador article 26.-nature. The Central Bank of Ecuador is an entity of public law, part of the Executive function, indefinite, with administrative and budgetary autonomy, whose organization and functions are determined in the Constitution of the Republic, this code, its regulations, the regulations issued by the Board of monetary regulation and policy and financial and internal regulations. Article 27.-Purpose. The Central Bank of Ecuador aims to the monetary, credit, foreign exchange and financial instrumentation of policies of the State, through the use of the instruments specified in this code and the law.

Article 28.-Heritage. The Central Bank of Ecuador will have own heritage, which shall consist of the capital, the general reserve fund, special reserves, reserve by revaluation of the heritage, the operating reserve, the surplus by evaluations and the results of the management of the Bank. The Board's policy and financial and monetary regulation may establish, in coordination with the governing body of the public finances, the inclusion of other heritage items. Article 29.-Capital. The Central Bank of the Ecuador capital is exclusive, untransferable and unattachable property of the Republic of Ecuador and is constituted by the contributions in money or in kind which made the governing body of the public finances. Article 30.-Utilities. The utility or loss of the Central Bank of the Ecuador is the result NET in the management of the institution during a fiscal year, which shall correspond to the duration of a calendar year. At the close of each financial year the net profits, shall be credited to the general reserve fund until the amount of the account is equal to 500% of the paid-in capital of the Central Bank of Ecuador. When this percentage is met, you may transfer up to 100% of the profits to the General budget of the State. If not 100% have been transferred, the balance, may transfer to the general reserve fund, prior approval from the Board of policy and financial and monetary regulation. Produce losses at the close of a year, they will be compensated with the general reserve fund or if this is insufficient, we will charge to the capital. The Board's policy and financial and monetary regulation will have the capitalization of the Central Bank of Ecuador when necessary. For this purpose, will require favourable report from the governing body of the public finances. Article 31.-Financial statements. To the term of each exercise the Banco Central of the Ecuador shall draw up the balance of situation and the State of losses and gains of the institution. The elaboration of the mentioned financial statements shall be made according to principles of general acceptance in the matter, in accordance with regulations which the Board of policy and financial and monetary regulation issued for effect. Article 32.-Quarterly report. The Central Bank of Ecuador shall submit to the Board of policy and financial and monetary regulation a quarterly report on their financial situation, reserves and external asset position, accompanied by the respective financial statements, documents to be delivered in the course of the next month, signed by the General Manager and the General accountant of the Bank. Article 33.-Balance of the Central Bank. The Board's policy and financial and monetary regulation shall establish policies to ensure quality and second supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 11 liquidity of the assets of the balance sheet of the Central Bank of Ecuador, to properly support their liabilities, and issue necessary regulations for the catalog of accounts, the accounting records and the preparation of the financial statements of the Central Bank of Ecuador. Operations with financial derivatives that made the Central Bank of Ecuador must adhere to the rules on accounting, financial and operational aspects issued by Board policy and monetary and financial regulation. Article 34.-Budget. The budget of the Central Bank of Ecuador will be financed with the income obtained by its own management and shall be drawn up based on the guidelines issued by the Board on policy and monetary and financial regulation and other laws related to the matter. The budget of the Central Bank of Ecuador will be approved by the Board of policy and financial and monetary regulation. In the case that the income from the management of the Central Bank of Ecuador are not sufficient for the operation, the governing Ministry of public finances will be assigned corresponding budget headings, in accordance with the procedures provided for in the organic code of planning and public finance. Article 35.-Privileged credits. Preference, under the terms of this code shall apply to loans and obligations owed to the Central Bank of Ecuador. Article 36.-Functions. The Central Bank of Ecuador has the following functions: 1. implement and execute policies and regulations issued by the Board of policy and monetary regulation and financial for the monetary and financial systems, monitor and supervise its implementation, sanction non-compliance, in the scope of their powers, and report their results;

2 manage the national payments system; 3 monitor and supervise auxiliary payment systems; 4 ensure the supply and distribution of monetary stocks and money in the country; 5 acquire titles and obligations issued by the governing body of the public finances, in accordance with the regulations of the Board;

6 issue securities; 7 make discount window with the entities of the national financial system that meet the requirements that determine this code and Board policy and monetary regulation and financial;

8 manage the liquidity of the economy to boost the country's development goals, using direct and indirect instruments, such as operations of open market, Exchange, among others.

9 promote financial inclusion, increasing access to quality financial services, in the field of its competence;

10 go and promote regional monetary and financial integration; 11 manage financial assets of the Central Bank of Ecuador in the country and abroad; 12. in coordination with the supervisory bodies, to assess and manage monetary and financial systemic risk, for the purposes of macro-prudential supervision;

13 exercise the sanctioning power, in accordance with this code; 14 meet and resolve claims and administrative acts of the institution resources; 15 develop, in coordination with the Ministry in charge of economic policy, forecasts and financial estimates;

16 develop, in coordination with the Ministry in charge of economic policy, financial sustainability report to the Board on policy and monetary regulation and financial;

17 project, in coordination with the governing body of the public finances and the Ministry in charge of economic policy, global liquidity of the economy and carry out its monitoring;

18 provide the necessary means of payment so that the economic system to operate effectively, in accordance with the regulations issued by the Board;

19. determine the characteristics and manage the provision, coinage, circulation, redemption, retirement and demonetization of currencies;

20 provide exclusive national coins, as well as electronic currency, in the framework of the policy issued by the Board on policy and monetary regulation and financial;

21 authorized correspondents; 22 operating the central payment system; 23. monitor compliance with the operating rules issued by the Board for the national system of payments;

24 exercise surveillance and supervision of auxiliary payment systems, ensuring compliance with the regulations to which they are subject;

25 monitoring compliance with interest rates approved by the Board;

12 - Second supplement - official record No. 332 - Friday 12 September 2014 26. Manage bookings, optimizing the national economic utility of domestic and external investments subject to the principles of safety, liquidity and profitability;

27 implementing the domestic investment, subject to the provisions of the policies approved by the Board; 28 act as the depositary of the resources of third parties, in cases in which the law order that there is a deposit; 29 act as fiscal, financial agent and depositary of public resources; 30 servicing external public debt and


internal, legal and legitimate, and retain the necessary resources for its service, in accordance with the provisions of the respective contracts;

31 act as a centralized repository of clearing and settlement of securities; 32 act as trustee; 33 market from gold of small-scale and artisanal mining, directly or through public and private economic agents which must be previously approved by the own Central Bank of the Ecuador;

34 perform operations and implement instruments that have a monetary or financial nature and are necessary for the fulfilment of the objectives of monetary policy;

35. introduce them reports that require the Board; 36 offer services between public sector entities and decentralized autonomous governments debt with private entities collection;

37 bid financial services and investment the international community of central banks; 38 accountable for its management to the Board and to the public; 39 establish procedures and mechanisms for exchange rate risk on operations in foreign currency; and, 40. Others assigned by law and Board policy and financial and monetary regulation. The Central Bank of Ecuador, for the fulfillment of its purpose, can perform all acts, contracts, and operations at home or abroad that are necessary and request background, States or special or general information to the public, private, institutions organizations of popular and solidary economy and bodies of State control, in accordance with the functions that give the Constitution This code, its Statute and other functions compatible with the nature of central bank that are assigned by law.

Article 37.-Hiring of the Central Bank of Ecuador. The contracting of services requiring the Ecuador Central Bank, that contribute to the investment of the reserve, the management of its assets and foreign liabilities, monetary gold and non-monetary and monetary system sustainability, will be subject to the special regime determined in article 2 paragraph 10 of the organic law of the national system of public contracting. Article 38.-External credits. The Central Bank of Ecuador, on behalf of the Ecuadorian State, may contract foreign loans for the financing of the balance of payments and to meet needs of liquidity, with the approval of the Committee's debt and financing. Article 39.-Representation of the State. The Central Bank of Ecuador, on behalf of the Ecuadorian State in its relations with international monetary organizations, conclude the contributions and values of these institutions to acquire the shares and securities. Article 40.-Deposits of the public sector. The public resources of the institutions, agencies and companies in the non-financial public sector will be maintained on deposit at the Central Bank of Ecuador, in accordance with the regulations issued by the Board. Entities of the national financial system will participate in the collection of public resources, through collecting accounts on behalf of the non-financial public entities, in accordance with the regulations issued by the Board. The balance of these accounts will be transferred automatically to the accounts corresponding to the respective public institutions at the Central Bank of Ecuador, in accordance with the regulation that is issued for the purpose. Entities of the national financial system not can open, on behalf of the public institutions, other types of accounts, except that they have the authorization granted by the Board. This prohibition shall apply especially to accounts with ability to turn. Entities of the national financial system shall identify clearly in its records the ownership of the accounts of the preceding subsection, and shall send to the Central Bank of Ecuador balances and movements that occur with charge to those, with the frequency determined by this. Failure to comply with this article shall be punished in accordance with the law. Article 41.-The non-financial public sector financial operations. Institutions, agencies and companies in the non-financial public sector must be carried out by means of the Central Bank of Ecuador, or accounts of this, all payments which they have to do, as well as all financial operations that require, in accordance with the regulations and exceptions issued by Board policy and monetary regulation and financial. The non-financial public sector entities may not make financial investments, with the exception of the second body supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 13 rector of public finance, social security institutions, the decentralized autonomous governments, and the deposits insurance corporation and liquidity fund, except authorization express of Board. Operations issued by public institutions or public enterprises, through the Central Bank of Ecuador, as financial agent of the State, whether in the country or abroad, are of a public nature. Failure to comply with the provisions of this article shall be punished according to the law. Article 42.-Correspondent agreements. The Central Bank of Ecuador can conclude correspondent agreements with entities of the national financial system or outside, to the levy, collection and payment of public funds and other financial transactions. Article 43.-Information about trading in currencies other than the dollar. Entities of the national financial system authorized to negotiate in currencies other than dollars shall inform the Central Bank of Ecuador, in the manner and on the basis that the Board determines, the amounts and types of change of operations carried out and provide information required by the Bank in its accounts in foreign currency. Breach of this provision shall be punished as serious offences in accordance with this code. Article 44.-Deposits in guarantee in favor of the State. Deposits in guarantee, guarantees or surety in money in favor of the State or of any other institutions, agencies and public sector enterprises and all other deposits in money should be a warranty by legal or judicial mandate will be made at the Central Bank of Ecuador or correspondents authorized for this. Article 45.-Special accounts. The Board's policy and financial and monetary regulation may authorize entities that integrates the General State budget the creation of special accounts within the single current account of the national treasure. The special accounts of all domestic public companies are part of the single national treasury account. Article 46.-Imprescriptible. Deposits of public entities and resources of the deposit insurance corporation, liquidity Fund and Fund of private insurance in the Central Bank of Ecuador or their accounts, both within the country and abroad, are unattachable, enjoy sovereign immunity and they may not be subject to any enforcement or preventative or precautionary. The Ecuadorian State shall grant equal treatment to the assets deposited or entrusted in the country by central banks or monetary authorities of other countries, under the principle of reciprocity. Article 47.-Administrative structure. The administrative structure of the Central Bank of Ecuador will be established in the Statute and in the respective functional organic. The organic functional will be processed in accordance with the provisions of the organic law of the public service. Article 48.-General Manager. The General Manager of the Central Bank of Ecuador will be appointed by the Board of policy and financial and monetary regulation. Article 49.-Functions of the General Manager. The General Manager of the Central Bank of Ecuador will have the following functions: 1. to exercise the legal, judicial and extra-judicial representation of the Central Bank of Ecuador; 2 direct, coordinate and supervise the technical, operational and administrative management of the Central Bank of Ecuador, which will issue the corresponding internal regulations;

3. Select and recruit the external auditor previously qualified by the Superintendence of banks; 4. Act as the appointing authority; 5. monitor compliance with the regulations issued by the Board on policy and monetary regulation and financial, in the field of its competence;

6. authorize the operations of the Central Bank of Ecuador which are not expressly reserved to the Board of policy and regulation of monetary and financial;

7 act within its powers, in the relations or negotiations with foreign banks, with other central banks and international financial institutions; and, 8. Others that are appropriate in accordance with this code. Article 50.-Requirements for General Manager. To be appointed General Manager of the Central Bank of Ecuador must meet the following requirements: 1. Ecuadorian citizen; 2. professional title of third level in economics, finance, management, law or related areas; 3. professional experience in related areas of at least five years; 4. not be in conflict of interest; and, 5. Meet the requirements to be an officer or


public server. Article 51.-Labor regime. The Central Bank of Ecuador, servers and the civil servants shall be subject to the provisions of the organic law of public service and labour code, as the case may be. Article 52.-Jurisdiction. General Manager, deputy general manager, directors and designated officials to participate in the processes of monitoring monetary and 14 - Second Supplement - official record No. 332 - Friday, September 12, 2014 national payment system, shall enjoy immunity from national court of Justice, by the acts and administrative decisions taken in the exercise of their specific functions. Article 53.-prohibitions. The General Manager and the Central Bank of Ecuador servers may not integrate directories or organizations that make their times in private financial institutions, in private stock market entities, private insurance and reinsurance companies or entities of the financial sector people and solidarity. The General Manager may not play other public functions, with the exception of delegations conferred him the President of the Republic and university teaching. General Manager and servers of the Central Bank of Ecuador, subject to the limitations set out in article 8. Article 54.-Claims and remedies. Administrative or regulatory acts issued by the Central Bank of Ecuador are subject to the rules and procedures determined by the Statute of the regime legal administrative and the function Executive, with regard to its challenge, amendment, revocation or annulment, in his case. Article 55-Publications. The Central Bank of Ecuador shall draw up and publish on its website or by any other means, with the frequency determined by the General management, the following information: 1. figures for monetary, financial, credit and Exchange indicators; 2. the statistics of macroeconomic synthesis of the country; 3. interest rates; 4. the authorized payment systems and institutions authorized to operate; and, 5. The additional information required by the Board. For compliance with this provision, the Bank may require the information deemed necessary to natural and legal persons of public and private law. The publication of the balance sheet of the Central Bank of Ecuador will be be at least monthly. Article 56-Prohibitions. It is forbidden to the Central Bank of Ecuador the following: 1. acquire or allow shares of companies of any kind in warranty and participate, directly or indirectly, in companies or partnerships, with exception of the shares or participations that purchase in international monetary or financial institutions;

2 assume with the Bank direct or indirect obligations, subsidies, grants or transfers corresponding to the national Government and other institutions and companies in the public sector, in any form, except for the implementation of a number of public enterprises;

3 grant funded by the Central Bank of Ecuador grants, donations or contributions in favour of any person, natural or legal, public or private, except own goods, whose transfer to other entities of the public sector free of charge can be made as provided in law; and, 4. Guarantee and contragarantizar operations of the private sector. This prohibition does not apply to counter guarantees in operations that affect the balance of trade, provided that they have a monetary deposit by 100% of its value in the Central Bank of Ecuador, in accordance with the regulations issued by the Board.

Article 57.-External Control. The Central Bank of Ecuador is subjected to the following external controls: 1. of the Comptroller General of the State for the use of public resources, in the part corresponding to the administrative management of the Bank;

2 of the Comptroller General of the State for the verification of compliance with the regulations and resolutions issued by the Board of policy and financial and monetary regulation and the own Central Bank of the Ecuador, of the implementation of the monetary policy instruments referred to in this code, the management of financial assets, of the functioning of the central system of payments and the evaluation of the system of management of risks of the Central Bank of Ecuador.

The Board may determine in addition another type of reports and its periodicity.

External audit reports will be reserved; and, 3. The Superintendency of banks in the area of its competence. Article 58.-Internal control systems. The Central Bank of Ecuador should have internal control systems to ensure the effectiveness and efficiency of operations, reliability of information and compliance with laws and regulations. Also will feature an internal auditor appointed by the Comptroller General of the State, who shall be exclusively the internal control of public resources in the part corresponding to the administration of the Bank, according to the norms established by the inspection body, and an internal auditor, qualified by the Superintendency of banks, appointed by the Bank, which will be responsible for the internal control of the operations Bank determined by the Board , in accordance with article 14 paragraph 36.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 15 section 3 of the Superintendence of banks article 59.-nature. The Superintendency of banks is a technical body under public law, with legal personality, part of the function of transparency and Social Control, with administrative, financial, budgetary and organizational autonomy, whose organization and functions are determined in the Constitution and the law. Article 60.-Purpose. The Superintendency of banks will be monitoring, audit, intervention, control and monitoring of financial activities carrying the national financial system, private and public entities in order that these activities are subject to the legal system and serve the general interest. Article 61.-Budget. The budget of the Superintendency of banks will be part of the General budget of the State and shall be subject to rules and procedures set out in the organic code of planning and public finance and its secondary legislation. Article 62.-Functions. The Superintendency of banks has the following functions: 1. exercise monitoring, audit, control, and supervision of compliance with the provisions of this code and the regulations issued by the Board's policy and monetary regulation and financial, which corresponds to the financial activities exercised by the entities that make up the financial sectors, public and private;

2 authorize the Organization, termination and liquidation of entities that make up the financial Public Sector;

3 authorize the Constitution, denomination, organization, and liquidation of entities that make up the private financial Sector;

4 authorize the activities of the entities that make up the financial sectors, public and private; 5. inspect and punish the natural or legal persons that are not part of the popular and solidary economy and that exercise, against the provisions of this code, financial activities reserved to entities of the national financial system, especially the acquisition of third-party resources. For the effect, it will act on its own initiative or by complaint;

6 exercise the punitive power on the entities under its control and natural or legal persons who fail to comply with the provisions of this code, in the field of its competence;

7 ensure the stability, solidity and proper functioning of entities subject to its control and, in general, to monitor that they comply with the rules governing its operation, the financial activities that provide, through permanent monitoring preventive inspections in situ and extra situ without any restriction, according to best practices, determining the economic and financial situation of the entities the operation of its business, evaluate the quality and the management of risk control and verify the veracity of the information they generate;

8 establish programs of intensive monitoring to controlled entities, without any restrictions; 9 demand that the controlled entities present and take corresponding measures corrective and sanitation;

10 have controlled entities increases of capital subscribed and paid in cash, as a measure of preventive and prudent;

11 taking care that the information of the entities under its control, which should be public knowledge, is clear and truthful for their thorough understanding;

12 answer queries on matters within its competence; 13 channel and verify delivery of information subject to secrecy and reserve, required by Board policy and financial and monetary regulation. Same function be fulfilled with respect to the information required to public and private financial institutions, for use by other institutions of the State;

14 establish the amounts and procedures allowing to investigate the origin and provenance of resources of exchange of currency or any mechanism of acquisition currency;

15 allow the total transfer of assets, liabilities and the


rights contained in contracts of financial institutions subject to its control;

16. protect the rights of customers and financial users and resolve disputes at the administrative level that are generated with the entities under its control, which you can request or practice of office, depending on the case, control actions necessary for your clarification;

17 establish the mandatory provisions and prohibitions of contracts whose object is the provision of financial services;

18 to approve the bylaws of the entities of public and private financial sectors and the modifications that they occur;

19 conduct the necessary investigations to authorize registration in the book of shares and shareholders of private financial institutions, in listed cases in this code;

20 remove administrators and other officials of the entities under its control and start, where the 16 - second supplement - official record No. 332 - Friday, September 12, 2014 case, legal action against her, for breaches of this code and the regulations for duly substantiated reasons;

21 control of the financial system, public and private entities to comply with the decisions taken by the Board on policy and monetary regulation and financial;

22 propose policies and regulations to the Board on policy and monetary regulation and financial, in the scope of its powers;

23 report to the Board on policy and monetary regulation and financial control results; 24 qualify for natural and legal persons who carry out support to the monitoring work, as internal auditors, external auditors, valuation experts and rating agencies, among others.

25 appoint liquidators and temporary managers of the entities under its control; 26 provide reports or certifications of any entity subject to its control, in order to obtain loans from international agencies for the development of economic programmes, at the request of those bodies or during his term, in accordance with the rules established by the Board;

27 the sanctions provided for in this code; and, 28. Others assigned by law. The Superintendent, for the performance of these functions, can issue all acts and contracts that may be necessary. It may also issue standards in matters within its competence, unless they can alter or innovate the legal provisions or regulations issued by the Board of policy and financial and monetary regulation. Article 63.-Faculty to request information. The Superintendent is entitled to request at any time, to any entity subject to its control, information deemed relevant, without limit, in the area of its competence. Similarly, the Superintendence of banks may require information of shareholders, Board members and legal representatives of the institutions subject to its control. Article 64.-Management and structure. The Superintendence of banks may establish regional municipalities within the national territory. The administrative structure of the SVS will have instances, intendencias specialized in the financial, public and private sectors, units, technical divisions and advisory bodies established in the respective Organic Statute by processes, which must be approved in accordance with that the organic law of the public service.

Article 65.-Labor regime. The Superintendency of banks, servers and the civil servants shall be subject to the provisions of the organic law of the public service or of the labour code, as the case may be. Article 66.-Jurisdiction. The mayors, directors, auditors, liquidators, temporary administrators and officials designated by the Superintendency of banks to participate in the processes of monitoring, exclusion and transfer of assets and liabilities and the liquidation, shall enjoy immunity from national court of Justice, by the acts and administrative decisions taken in the exercise of their specific functions. Article 67.-Superintendent. The Superintendency of banks will be directed and represented by the Superintendent. Article 68.-Description and requirements. The designation of the Superintendent of banks and the time of duration in its charge are them established in the Constitution of the Republic, the law and them regulations respective. The requirements to be Superintendent of banks are as follows: 1. Ecuadorian citizen; 2. professional title of third level in economics, finance, management, law or related areas; 3. professional experience of at least ten years in related areas; 4. not be in conflict of interest; and, 5. Meet the requirements to be official or public servant. Article 69.-Functions of the Superintendent. The Superintendent has the following functions: 1. to exercise the legal, judicial and extra-judicial representation of the Superintendent; 2 direct actions of surveillance, audit, supervision and control of competence of Superintendence;

3 direct, coordinate and supervise the administrative management of the Superintendent, which shall issue the corresponding internal regulations;

4 Remember, celebrate, and run, on behalf of the Superintendent acts, contracts, agreements and legal business that requires institutional management and the obligations of contract;

5 act as appointing authority; 6 develop, approve, prior to its submission to the governing body of the public finances, and implement the annual budget of the Superintendency;

7 exercise and delegate the coercive jurisdiction; and, second supplement - official record No. 332 - Friday, September 12, 2014 - 17 8. Exercise other functions assigned to the law. Article 70.-Accountability. Accountability mechanisms shall be established by the Superintendency of banks on their activities. Article 71.-Acts of control. The Superintendence of banks, in the performance of their duties, may be used in any mode, mechanism, methodology and instruments of control, in situ and extra situ, internal or external, whereas best practices, and may require that they filed it, for its consideration, all values, books, receipts for accounting, correspondence and any other document relating to the business or with controlled activities unless you can argue any nature reserve or have the practice of any other action or diligence. The Superintendency of banks, within control acts, can have any measure referred to in this code that leads to rectify the comments evidenced by the control body and apply sanctions in case of non-compliance. Acts of control of the Superintendency of banks enjoy the presumption of legality, will have binding force and begin to run from the date of its notification. The Superintendency of banks, to the formation and expression of its political and administrative will, does not require the competition of a different entity or the approval of their actions by other bodies or institutions of the State. Article 72.-Reports. They will be posted and reserved auditing, inspection, analysis reports and documents that the Superintendent qualifies as such, for the purpose of ensuring the stability of financial institutions, public and private, and that broadcast servers and officials of the Superintendence in the exercise of its control functions. The Superintendent, believe it necessary and have observations, reports moved to the corresponding authorities of the entity examined. These reports will not be disclosed to third parties, partly by the Superintendency, the inspected entity or by any person acting by them, except where the Board of policy and financial and monetary regulation requires it or in the case of evidence of criminal liability, which shall be put to the attention of the Office of the Attorney-General is determined. These reports will forfeit their reserved status after one hundred and eighty days from the date of the resolution which has the liquidation of an entity. When it has started a process of research at an institution of the financial system, audit reports will not have the character of reserved or enjoy banking secrecy before the National Assembly, Attorney General and Comptroller General of the State. Article 73.-Claims and remedies. The acts issued by the Superintendency of banks enjoy the presumption


legality, and its execution is not suspended by interposition, admission to proceedings or conduct of claims or resources. Normative acts can be reformed or repealed at any time by the authority that issued it, or at the request of a party, by the filing of an administrative complaint. The administrative acts that produce individual legal effects directly, issued by any organ of the SVS, may be revoked or reformed only by the Superintendent of banks, upon filing of appeal within ten days of the resolution that is disputed. The ruling in this case will cause State. Not applicable appeal to as determined by the Superintendent of banks, or even in case that the Act which is intended to challenge has been met and resolved by the first administrative instance. Remarkably, through review, the Superintendent of banks may revoke or reform any administrative act, either ex officio or on the occasion of the presentation of the respective resource, within a period of one year, to be counted from the notification of the Act. The review only will have place if the Act administrative contested has been dictated with evident error in fact or of right that appears of them documents that appear in the record or of provisions legal express or when, with later, aparecieren documents of value transcendental ignored to the issue is the Act or resolution that is try. The Superintendence shall regulate the content and procedure that should observe is in matter of challenge, repealing, recall and reform of these acts.

Section 4 of the Superintendence of Economics Popular and solidarity article 74.-scope. The Superintendence of economy Popular and solidarity, in their organization, operation and functions of control and supervision of the sector financial popular and solidarity, is governed by them provisions of this code and the law organic of the economy Popular and solidarity. The Superintendence of economy Popular and solidarity, in addition to the powers that you gives it law organic of economy Popular and solidarity, will have them functions certain in the article 62, except them numerals 18 and 19. Number 10 of the aforementioned article applies to recognizing that popular and solidary economy entities have unlimited capital. The acts issued by the Superintendency of Popular and solidary economy shall enjoy the presumption of legality and are subject to the provisions of article 73 concerning your challenge, reform or extinction. Article 75.-Labor regime. Officials, servers, and workers of the Superintendency's 18 - Second Supplement - official record No. 332 - Friday, September 12, 2014 Popular and solidary economy will be subject to the provisions of the organic law of public service and labour code, as the case may be. Article 76.-Jurisdiction. The mayors, directors, auditors, liquidators, temporary administrators and officials appointed by the Superintendent of Popular and solidary economy to participate in the processes of monitoring, exclusion and transfer of assets and liabilities and the liquidation, shall enjoy immunity from national court of Justice, by the acts and administrative decisions taken in the exercise of their specific functions. Article 77.-Reports. The reports of auditing, inspection, analysis, and which issued servers and officials of the Superintendent, in the exercise of the functions of control and surveillance, will be written and reserved, as well as documents that the Superintendent qualifies as such by virtue of ensuring the stability of its controlled. The Superintendent, believe this case and have comments, move reports to the corresponding authorities of the entity examined. These reports not will be disclosed to third parties, in whole or in part, by the Superintendent, by the inspected entity or by any person acting for them, except when required by the Board's policy and financial and monetary regulation or when found evidence of criminal liability, which shall be reported to the Office of the Attorney-General. These reports will forfeit their reserved status after one hundred and eighty days from the date of the resolution which provides for the liquidation of the entity. When it has started a process of research at an institution of the financial system, audit reports will not have the character of reserved or enjoy banking secrecy before the National Assembly, Attorney General and Comptroller General of the State.

Section 5 of the Superintendency of companies, securities and insurance article 78.-scope. The Superintendency of companies, securities and insurance, among other powers in corporate matters, will exercise monitoring, audit, intervention, control and supervision of the securities market, insurance and legal entities of private law non-financial regime, to which will be governed by the provisions of the companies Act, securities market law, General Law of the insurance This code and the regulations issued by the Board of policy and financial and monetary regulation. The acts issued by the Superintendency of companies, securities and insurance, within all areas of its competence, shall enjoy the presumption of legality and are subject to the provisions of article 73 concerning your challenge, reform or extinction, except when the law regulate another procedure in specific subjects.

Legal persons that do not form part of the national financial system, and are not under the control of the Superintendence of Popular and solidary economy, that as part of the specific line of its business carried out credit operations above the limits established by the Board of policy and regulation, monetary and financial, will be controlled by the Superintendency of companies Securities and insurance, in accordance with this code.

Section 6 of the of the insurance deposit Corporation, liquidity Fund and insurance private article 79-nature Fund. The deposit insurance corporation, liquidity Fund and private insurance fund is a legal person of public law, not financial, administrative and operational autonomy. Article 80.-Functions. The deposit insurance corporation, liquidity Fund and Fund of private insurance has the following functions: 1. manage the deposit insurance of the sectors financial private and of the solidarity and resources which constitute it;

2 manage the Fund's liquidity sectors financial private and of the solidarity and contributions that constitute it;

3 manage the Fund of private insurance and resources which constitute it; 4 pay deposit insurance; 5 pay the insurance of private insurance; 6 establish, at the request of the Agency of control and in a period not exceeding ten days, the least cost rule, to which you can apply for information deemed pertinent to the body control and/or the entity, and they deliver the information on a mandatory basis;

7. within the process of exclusion and transfer of assets and liabilities, acquire assets or rights of their nominal value or run any other procedure that allows the application of the rule of the lowest cost with respect to the payment of deposit insurance. If there are differences between the nominal value and the market value, the deposit insurance corporation will be in won of shareholders and the financial institution managers and administrators of the popular and solidary economy entities.

The Corporation may exercise against them all the legal actions that correspond;

8 dispose of assets and rights acquired by the application of the provisions of the preceding paragraph. The Board shall issue the rules governing such alienation;

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 19 9. Proposals to the Board on policy and monetary regulation and financial regulation in relation to the insurance of deposits;

10 cover the risks of private insurance companies legally established in the country entering into compulsory liquidation; and,


11. the other functions assigned to the law. The Corporation will pay the deposits insured in the event of compulsory liquidation of a financial institution and will manage the recovery of the resources of the insurance of deposits used in that process. The Corporation of insurance of deposits and liquidity fund, for the performance of its functions, may perform all acts, contracts, and operations that are necessary. The acts issued by the Corporation are subject to the rules and procedure determined by the Statute of the regime legal administrative and the function Executive, with regard to its challenge, amendment, revocation or annulment, in his case. Article 81.-Budget. The budget of the deposits insurance corporation, liquidity Fund and private insurance fund will form part of the General budget of the State. Resources of the deposit insurance which manages may not be intended to finance the budget of the Corporation. Article 82.-Management and structure. The administrative structure of the deposits insurance corporation, liquidity Fund and private insurance fund will be established in their social status and the Organic Statute by processes, which will be adopted in accordance with the organic law of the public service. Article 83-directory. The deposits insurance corporation, liquidity Fund and Fund of private insurance will have a Board consisting of three full members: the head of the Secretariat of State in charge of economic policy or his delegate and the head of the Secretariat of State in charge of public finance or his delegate, a delegate of the President of the Republic, who will preside over it. The Superintendent of banks, the Superintendent of Popular and solidary economy, Superintendent of companies, securities and insurance and the General Manager of the Central Bank of Ecuador or its delegates will participate in sessions of the Board within the scope of their competencies with voice and no vote. Shall act as Secretary of the Board the General Manager of the Corporation, who will participate in discussions with voice, without the right to vote. When the directory concerned issues related to liquidity fund, will join the collegiate body two additional delegates who will represent the private financial sector and the financial sector people and solidarity, respectively, with voice, which shall be appointed in accordance with the rules issued by the Board.

Article 84.-Description and requirements. The delegates of public members of the Board shall be appointed by the administrative act and shall comply with the following requirements: 1. Ecuadorian citizen; 2. professional title of third level in economics, finance, management, law or related areas; 3. professional experience in areas related to at least five years; 4. not be in conflict of interest; and, 5. Meet the requirements to be official or public servant. Article 85.-Functions of the Board. He directory of the Corporation of the safe of deposits, Fund of liquidity and Fund of safe private will have them following functions: 1. run them political defined by the Board of political and regulation monetary and financial for the safe of deposits, Fund of liquidity and Fund of secure private;

2. to approve the extraordinary liquidity credits; 3 approve the refund of contributions to the Fund's liquidity, in accordance with this code, and in accordance with the procedure established by the Board;

4 report every six months or at the request of the Board of policy and financial and monetary regulation on its activities;

5 Select the external audit firm; 6 approve the annual budget of the Corporation, prior to its submission to the governing body of public finances; 7 appoint the General Manager; 8 qualify as reserved information that could endanger the normal development of the national financial system;

9. enact administrative rules and issue operating manuals that will govern its operation; 10 fix annually the aliquot amount for the premium fixed and periodically the premium adjusted by risk, the Fund of private insurance;

11. propose to the policy and monetary regulation, and financial insurance private insurance coverage amount; and, 12. The others which are necessary for the performance of their duties.

20 - Second supplement - official record No. 332 - Friday, September 12, 2014 article 86.-operation. The Board will meet in ordinary way every two months and dramatically when convened it the President or at the request of any of the members to discuss specific issues. The quorum required for the installation of the directory is with all its members. The decisions of the Board shall be taken by a simple majority. The votes of the members of the Board shall be expressed as positive or negative and abstention is not permitted. The performance of the directory will be regulated by the directory itself. Article 87-General Manager. The deposit insurance corporation, liquidity Fund and private insurance fund will be directed and represented by the General Manager. Article 88-Designation and requirements. The Manager General of the of the insurance deposit Corporation, liquidity Fund and private insurance fund shall be appointed by the Board of Directors and it shall comply with the following requirements: 1. Ecuadorian citizen; 2. professional title of fourth level in economics, finance, management, law or related areas; 3. professional experience in related areas of at least five years; 4. not be in conflict of interest; and, 5. Meet the requirements to be official or public servant. The Manager General of the of the insurance deposit Corporation, liquidity Fund and Fund of private insurance may not exercise any other public or private remunerated activity, except University teaching. Article 89.-Obligations. The members of the Board, General Manager and other officials of the deposit insurance corporation, liquidity Fund and Fund of private insurance must, at all times, to observe the principles of prudence and reserve and professional secrecy with respect to the information that operate in compliance with their specific functions. Reports related to the Fund's liquidity loans will have the character of reserved. Article 90-Ban. The General Manager of the Corporation of the deposit insurance, liquidity Fund and Fund of private insurance and Bank servers are subject to the limitations set out in article 8. Article 91.-Functions of the General Manager. The General Manager shall have the following functions: 1. to exercise the legal, judicial and extra-judicial representation of the Corporation;

2 arrange the payment of the security deposit and the Fund of private insurance; 3. run policies arranged by Board policy, financial and monetary regulation and its directory; 4. authorize the purchase of assets in the process of exclusion and transfer of assets and liabilities, respecting the rule of the lowest cost;

5. direct, coordinate and supervise the management administrative of the Corporation; 6. celebrate to name of the Corporation them acts, contracts, agreements and business legal that require the management institutional and the obligations that contract;

7. Act as authority nominating; 8. develop and execute the budget yearly of the Corporation; 9. exercise and delegate the jurisdiction coercive; and, 10. Exercise the other functions that you assign the law. Article 92.-jurisdiction. Them members of the directory of it Corporation of insurance of deposits, Fund of liquidity and Fund of safe private or their delegates and the Manager General shall enjoy of jurisdiction of court national of justice by them acts and decisions administrative taken in the exercise of their functions specific. Article 93.-information to the public. The directory shall draw up and execute a program of public communication in order to disseminate information about the mechanisms, benefits and limitations of deposit insurance to the depositors and the public in general. The directory will be issued standards on information that must lend financial institutions about the coverage, exclusions and payments on deposit insurance. Reports related to financial institutions will lose their reserved status after one hundred and eighty days from the date of the resolution which has the liquidation of an entity.

Title I system monetary Chapter 1 of the currency and the money article 94-currency in the Republic of Ecuador. All transactions, monetary, financial transactions and its accounting records, made in the Republic of Ecuador, will be expressed in dollars of the United States of America, in accordance with this code.

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The circulation, Exchange, removal and demonetization of dollars of them United States of America, currency in the Republic of the Ecuador, correspond exclusively to the Bank Central of the Ecuador, in accordance with them provisions of this code and with the regulation that issue the Board of political and regulation monetary and financial. The Central Bank of Ecuador is the only entity authorized to provide and manage metal convertible, equivalent or in the Republic of Ecuador, and local currency to dollars of the United States of America, in accordance with the provisions of this code and with the regulation and authorization of the Board of policy and financial and monetary regulation. The currency determined in this article is half payment. The currency has to be able to discharge and legal tender in the Republic of Ecuador within the framework of the regulations issued by the Board of policy and financial and monetary regulation. In any case the State may oblige a natural or legal person of private law to receive currency other than the dollar of the United States of America. Article 95.-Obligation to provide liquidity. The Central Bank of Ecuador is obliged to satisfy the demand for liquidity in the Republic of Ecuador in order to ensure the development of economic transactions. For this purpose, it is entitled to carry out remittances that are necessary, which are not considered as import or export operations. These operations that the Central Bank of Ecuador shall not be subject to any tax in the country. Article 96-Physical money remittances to secure the circulating. The remittances physical to ensure the circulating in the national economy, and from the Ecuador, may only be carried out by the Central Bank of Ecuador and, exceptionally, by the entities of the national financial system, in accordance with the rules as to the effect dictate the Board's policy and financial and monetary regulation. These operations must comply with the provisions of the law on the prevention, detection and eradication of the crime of money laundering and financing of crimes. Article 97-Currency swap. The currency swap, which referred to article 94, of any kind or designation will be made by the Central Bank of Ecuador, the carrier and the view, without charge of any kind, by currency of higher or lower denomination that prompted. If the Central Bank of Ecuador stated not temporarily currency in denominations required, you can deliver currency values approaching more to the requested. Entities of the national financial system shall be obliged to provide the services of an exchange of currency in accordance with the terms requiring the Board's policy and monetary regulation, and financial, with exceptions to be determined.

Article 98-Prohibitions. Is prohibited in general: 1. broadcast, reproduction, imitation, falsification or total or partial simulation of currency and money, as well as its circulation by any means, support or form of representation;

2. the alteration or transformation of the coins in circulation, through its cast or any other procedure that aims to take advantage of their metal content. This prohibition does not apply to the Central Bank of Ecuador; and, 3. The circulation and reception of currency and money not approved by the Board of policy and financial and monetary regulation.

Violation of these prohibitions shall be punished as provided for in the comprehensive code of criminal and with the confiscation of such currency and money and products purchased with this coin or money.

Chapter 2 Article 99.-other payment methods payment methods. Means of payment are currencies other than the dollar of the United States of America, cheques, transfers by electronic media or digital, credit and debit cards, and others of a similar nature, in the terms that determine and regulate policy and monetary regulation Board and financial. Article 100.-Obligations in other means of payment. They may agree on obligations in means of payment other than the one in article 94, in accordance with the regulations issued by the Board of policy and financial and monetary regulation. If by the Act by which has been is an obligation which has been agreed to pay in currencies other than the dollar of the United States of America, the obligation to deliver the agreed-upon currency or the currency determined in article 94, the current change in the place and date of the maturity of the obligation shall be fulfilled. Article 101.-Electronic currency. Electronic money will be put into circulation referred by the Central Bank of Ecuador, backed with their liquid assets, on the basis of policies and regulations that the Board policy and monetary regulation issued and financial. Article 102.-Obligations of monetary deposits. Only authorized entities of the national financial system and the Central Bank of Ecuador can incur obligations that have the character of monetary deposits with third parties.

Chapter 3 payments and payments article 103.-national system of payments systems. The national payment system includes the set of policies, standards, instruments, procedures and services by 22 - second supplement - official record No. 332 - Friday 12 September of 2014 half of which are carried out, directly or indirectly, transfer of resources managed by means of payment and liquidation of values between different participants. The national payments system consists of the central payment system and auxiliary systems of payment. The Central Bank of Ecuador established requirements of operation, authorisation, registration and dissemination of information and services. The corresponding tariff regime shall be governed by the Board of policy and financial and monetary regulation. The Central Bank of Ecuador will promote the participation of the entities making up the national financial system in the national payment system, and will have the duty to promote financial inclusion by expanding access to and use of formal financial services to segments of the population excluded or limited access to them. The reporting servers and officials of the Central Bank of Ecuador, in the exercise of the functions of supervision of the national payment system, will be written and reserved, as well as documents that the General Manager qualifies as such by virtue of ensuring the stability of the system. These reports do not will be disclosed to third parties, in whole or in part, by the Bank, by the supervised entity or by any person acting for them, except when required by the Board's policy and financial and monetary regulation or when found evidence of criminal liability, which shall be reported to the Office of the Attorney-General. Article 104-Central payment system. The central payment system is the set of policies, standards, instruments, procedures and services articulated and coordinated, in charge of the Central Bank of Ecuador, through which made transfers of resources from its participants, as well as its clearing and settlement. Board policy and financial and monetary regulation will establish the requirements and the conditions for access to the central payment system. Article 105-Auxiliary systems of payment. Auxiliary payment systems are the set of policies, standards, instruments, procedures and services articulated and coordinated, public or private, authorized by the Central Bank of Ecuador, interconnected with the central payment system, established to carry out transfers of resources and compensation among the various participants. Entities of auxiliary services of the national financial system performing transactional activities and enterprises carrying out remittances of money and money order for your operation will require the prior authorization of the Central Bank of Ecuador. Article 106-Payments and their irrevocability. Payments ordered and accepted through the national system of payments are irrevocable, binding and enforceable quality to third parties, may not be suspended or left without


effect, are legally enforceable, and will have equal legal value as written documents. No judicial Providence, decision, administrative action, as injunction or seizure may suspend, revoke or annul a payment previously ordered by the participant and accepted by the system administrator. These measures will only apply to future and will take effect starting from the notification of the competent authority to the respective entity of the national financial system and the stock market, the participant or to the system administrator, as appropriate. Electronic signatures and the use of official keys for transactions channelled through the national system of payments will have equal validity and shall be recognized the legal effects that olografas signatures. Article 107.-responsibility. Participants of the national system of payment all supporting documents must be kept properly archived and will be responsible for administrative, civil and criminal sanctions for requests based on information inaccurate, incomplete or false. Article 108-Clearing and settlement. The Central Bank of Ecuador is the compensator and liquidator of resources in the central payments system and liquidator of the auxiliary systems of payment. These auxiliary systems, as well as the entities of the national financial system, shall on the basis and in the form determined by the Central Bank of Ecuador detail and results of compensation processes to be liquidated. Deficiencies in the Chambers of clearing and settlement of the central payment system of institutions that contribute to the liquidity fund of the national financial system shall be filled with the resources of the Fund. Article 109.-Supervision of auxiliary payment systems. The Central Bank of Ecuador shall carry out surveillance and supervision of auxiliary systems of payments and their managers as well as any infrastructure of payments or transfers of monetary resources which act in the market, duly authorized by the competent authority, to ensure the correct operation of the channels, instruments and means of payment that are processed through. Auxiliary payment systems administrators including any payment or transfer of monetary resources, infrastructure will be required to be submitted to the Central Bank of Ecuador the information required and the deadlines determined. Article 110-Corrective measures. The Central Bank of Ecuador will be the implementation of corrective measures systems auxiliary payments which have failed to comply with applicable regulations. Article 111-Infractions. The Central Bank of Ecuador sanctioned entities in charge of auxiliary payment systems and their managers, as appropriate, for the following reasons: Second Supplement - official record No. 332 - Friday, September 12, 2014 - 1-23. Do not adjust the domestic regulation to rules issued by the Board on policy and monetary regulation and financial;

2. do not make modifications to Regulation internal required by the Central Bank of Ecuador within a period to be determined;

3. modify internal regulations without the prior authorization of the Central Bank of Ecuador; 4. do not submit the information required by the Central Bank of Ecuador or present it in a way inaccurate, incomplete or untimely;

5. provide information to the Central Bank of Ecuador false concerning the respective payment system;

6 breaking the corrective measures; and, 7. Comply with any other obligation provided in this code or in the rules governing payment systems.

The offences contained in the paragraphs 1, 2 and 3 will be considered serious. Breaches of paragraphs 4, 5, 6 and 7 will be considered very serious. Article 112-Sanctions. By the Commission of the offences referred to in the preceding article, the following penalties shall be imposed by the Central Bank of Ecuador: 1. for serious offences classified in the numerals 1, 2 and 3 shall apply a penalty of up to three hundred unified basic salaries; and, 2. For very serious offences classified in the numerals 4, 5, 6 and 7 shall apply one fine not less than three hundred basic salaries unified, nor more than a thousand unified basic salaries.

These sanctions shall apply without prejudice to the obligation that has the entity to remedy the non-compliance that gave rise to such sanctions. If you do not remedy such breach, the Central Bank of Ecuador will ask the respective Superintendence of removal of the corresponding representative legal or, if applicable, will suspend the entity in the payment system. The application of these sanctions does not relieve the direct responsibility of administrators. Article 113-Penalty for operations without authorization. The Central Bank of Ecuador is punishable by a fine of up to $ 800.000,00 (eight hundred thousand dollars of the United States of America), amount that will be updated by the Board in accordance with the index of prices to the consumer, or to the level of income of the last financial year of the entity, and the order of immediate suspension of operations to entities that carry out clearing or settlement without the respective authorization. Article 114-Implementation and sanctioning procedure. Sanctions will be determined by this law, in view of the seriousness of the violation, damages caused to third parties, neglect, intentionality, recidivism or any other aggravating or mitigating circumstances. If a fact is establishing two or more administrative offences, the most serious is taken into account. If the two offences are equally serious, be taken into account that carries a sanction of pecuniary value. The fines firm will cause the corresponding interests. The Central Bank of Ecuador will apply penalties administrative procedure laid out in article 277. Article 115-Civil and criminal liability. The sanctions provided for in this title shall be imposed without prejudice to the civil and penal responsibilities that correspond and the obligation of the entity to rectify the breach. Article 116-Centralized securities depository. Function deposit centralized clearing and settlement of securities, with securities and intermediaries registered in the register of the securities shall be made by the Central Bank of Ecuador. Also perform the function of single deposit centralized clearing and settlement of securities for securities that have been issued by the Central Bank of Ecuador, the governing body of public finances and other entities of the public sector. Article 117-Systems of clearing and settlement of trade obligations. The Board's policy and financial and monetary regulation will define policies and rules which will govern the operation of instruments that allow non-financial sectors of the economy of the country access to mechanisms of immediate liquidity, through the clearing and settlement of trade obligations generated by the activities of the line of business, by means of transfer or extinction of a commercial obligation between members of the system. The Board may consider the establishment of a Fund, financed by the budget of the Central Bank of Ecuador, to cover mismatches them that arise in the operation of the system. The Fund will comply with public order resources.

Chapter 4 instruments of monetary policy section 1 the economy article 118.-liquidity liquidity management. Board policy and financial and monetary regulation will define policies of liquidity to ensure the effectiveness of the monetary policy focused on the achievement of the objectives set out in this code. Likewise, to establish and regulate monetary policy instruments to be used, such as: reservation of liquidity, ratio of domestic liquidity and the composition of the total liquidity, interest rates, 24 - second supplement - official record No. 332 - Friday, September 12, 2014


open market and discount window, including window operations. The implementation of these instruments will make it through the Central Bank of Ecuador. Article 119-Reports on liquidity. The Central Bank of Ecuador, in coordination with the governing body of the public finances and the Ministry in charge of economic policy, must report at least every six months the Board of policy and financial and monetary regulation of liquidity of the economy of the country, which will serve as a basis for the adoption of policies that apply in the matter. Article 120-Proportion of domestic liquidity. Entities of the national financial system, to maintain an adequate level of liquidity that promote growth, are required to maintain the proportion of the total liquidity policy and monetary regulation and financial Board determined in the country. Article 121-reserves of liquidity. Entities of the national financial system and not financial institutions that provide credit above limits the Board's policy and financial and monetary regulation issued are required to maintain liquidity reserves in the Central Bank of Ecuador with regard to assets or liabilities, according to the regulations that are issued for the purpose, which may be established by credit segment , type of entity, sector and activity, among others. Article 122-Remuneration for excess of liquidity reserves. The Central Bank of Ecuador will not recognize any compensation on the portion of the pool of liquidity deposited in the accounts that the entities of the national financial system remain in the Bank. The excesses of liquidity reserves deposited in checking accounts may, temporarily, be paid as established by the Board. This remuneration may not exceed the equivalent of the yearly variation in the price index the consumer from the immediate previous year, for the period of excess reserves. Article 123-Sanction by deficiencies of liquidity. If the proportion of domestic liquidity in a financial institution accused deficiency, the Central Bank of Ecuador will apply a fine equivalent to the legal maximum rate of interest existing at the date of breach, calculated on the amount of the deficiency, without prejudice to the obligation that has the financial institution to overcome the deficiency immediately. If a lender reneges on liquidity buffers and the requirements established by the Board to receive a special credit of the liquidity fund to cover this deficiency, it will apply a fine equivalent to the maximum legal interest rate current at the time of default, calculated on the amount of the deficiency, without prejudice to the obligation that has the financial institution to overcome the deficiency immediately.

Recidivism in breach of the provisions referred to in the preceding subparagraphs, in a calendar year, shall be punished as a serious penalty according to article 264 article 2. Financial institutions that fail to comply with the liquidity reserves but comply with the regulations issued by the Board for access to the discount window loans can receive a credit for the amount equal to the deficiency with the interest rate and conditions determined by the Board.

Section 2 operations of the Banco Central the Ecuador article 124-investment of excess liquidity. The Central Bank of Ecuador may invest the excess liquidity of the economy in the entities of the public financial sector, through repayable financial instruments of domestic investment. The Central Bank of Ecuador may invest the excess liquidity of the economy in the private financial sector entities or entities of segment 1 of the financial sector people and solidarity, through repayable financial instruments of domestic investment, advance accountability guarantees with securities issued by the governing body of public finances, the Central Bank of Ecuador or portfolio of credits with a grade of at least A. The resources that the financial institution holds in the liquidity fund constitute guarantee of last resort on the operations of domestic investment. Investment detailed in the preceding paragraphs is directed primarily to promote the change of the pattern of specialization of the national economy, innovation and entrepreneurship to increase the intensity of technology and knowledge of national production, selective import substitution and export promotion. The Central Bank of Ecuador, in coordination with the governing body of the public finances and the Ministry in charge of economic policy, must quantify the surplus of liquidity that corresponds to devote to domestic investment, in order to route it to the areas of interest of the State. The Board will determine the financial conditions of the domestic investment instruments, preserving domestic liquidity and the sustainability of this mechanism in time. For the quantification of liquidity surplus, public and private entities will provide compulsory information required by the Central Bank of Ecuador for the effect. Article 125-Domestic investment Plan. Policy and financial and monetary regulation Board will approve the plan of domestic investment, which is the instrument that facilitates the investment of excess liquidity. From the implementation of the plan of domestic investment resources may not be used on purposes other than those approved. Control of the use of these resources will be carried out by the inspection bodies.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 25 article 126.-issuance of securities from the Central Bank of Ecuador. Board policy and monetary regulation and financial, with the unanimous vote of its members, shall be allowed to the Central Bank of Ecuador, within the limits of sustainability of the balance of payments, issuance of securities denominated securities of the Bank Central (TBC), which will be auto-renewal and supported in its entirety with the assets of the Central Bank of Ecuador. The titles of the Central Bank (TBC) will be issued for types or series that may have different characteristics. These values will be negotiated in the primary market only with the governing body of the public finances, except Express and unanimous except for the Board, they will be used for the payment of taxes and any other obligation to the State, at face value, and are not considered as public debt. They excepted the registration in the register of securities market where trading takes place in the private market. Article 127-Open market operations. The Central Bank of Ecuador can carry out operations of open market with the entities of the national financial system, through the operations of repurchase agreements with securities securities issued by the governing body of public finances and with securities issued by the Central Bank of Ecuador, in accordance with resolutions issued by the Board. Article 128-Discount window. The Central Bank of Ecuador can carry out rediscount operations which may have the character of revolving's portfolio of loans and long-term securities issued by the rector of public financial entity or securities of the Bank Central (TBC), entities of the national financial system contributors of the liquidity fund previously qualified in terms of their risk profile and minimum requirements of solvency. The credit quality of the loan portfolio to be accrued shall have a rating of not less than A. The Central Bank of Ecuador, in accordance with the regulations issued by the Board, may be additionally granted loans through the discount window to cover the liquidity reserve deficiencies. When this mechanism is implemented, entities, within the period determined by the Board, which shall be not more than thirty days, be handed the portfolio of credits and/or titles to rediscount. The resources that the institution holds in the liquidity fund constitute guarantee of last resort on discount window operations. In case of discount window operations receiving financial institutions fail to meet established payments, the Central Bank of Ecuador declared expired term all in the redescontada operation and will require the liquidity fund to transfer him immediately pending due values, financed by contributions from the financial institution which correspond, without that mediate any additional authorization. The failure of the financial institution in the restitution of the values at the bottom of liquidity will be causal of compulsory liquidation.


In case of discount window operations receiving financial institutions enter into liquidation, values of the portfolio or securities redescontados have priority of payment, in accordance with the priority of payment given in the article 315, either through contributions to the liquidity fund of the financial entity that corresponds, with assets of conversion immediately to cash held by the entity or direct money payments. The appointed liquidator shall be obliged to comply with this provision. Article 129-Limit to the granting of loans at the discount window and the investment of excess liquidity. Quotas that will establish the Board for which sectors entities private and popular and solidary financial engaged one-stop discount or domestic investment with the Central Bank of Ecuador, will be determined on the basis of the index of solvency and economic relations determined by the Board based on the objectives of economic policy. The added capacity for these two instruments shall not exceed the accumulated sum of: to) 100% position in securities issued by the governing body of public finance and the Central Bank of Ecuador; (b) 70% of the individual contributions not compromised by the financial institution on the back of liquidity; and, c) loan portfolio with a grade of at least A not to exceed 30% of the constituted technical patrimony of each entity altogether. Payment will be done with funds provided by financial institutions to the liquidity fund, up to the amount given to the Fund.

Section 3 of interest rates and rates of the Bank Central of the Ecuador article 130.-interest rates. The Board's policy and financial and monetary regulation may set maximum interest rates for active and passive transactions of the national financial system and other interest rates required by law, in accordance with article 14 paragraph 23 of this code. The anatocism is prohibited. Article 131.-Rates of interest of the Central Bank of Ecuador, the Board's policy and monetary regulation and financial will determine the rates of interest applicable to active and passive operations of the Central Bank of Ecuador and the rates the Bank will charge for their services.

Chapter 5 of the active and passive external section 1 assets and foreign liabilities article 132-assets outside of the Central Bank of Ecuador. The foreign assets of the Central Bank of Ecuador are comprised of the following: 1. badges;

26 - Second supplement - official record No. 332 - Friday 12 September 2014 2. Net assets in financial institutions from abroad; 3 units of account issued by international monetary organizations; 4 Gold monetary and non-monetary; 5. position of booking with international organizations; 6. balances in favor of the Central Bank of Ecuador in bilateral and multilateral agreements; and, 7. Other foreign assets in foreign currency. Article 133.-External liabilities of the Central Bank of Ecuador. The external liabilities of the Central Bank of Ecuador are comprised of the following: 1. foreign obligations payable in foreign currency; 2. credits granted by international organizations; 3 balances to be paid by the Central Bank of Ecuador in agreements bilateral and multilateral; and, 4. Other foreign liabilities in foreign currency. Article 134-Accounting for assets and foreign liabilities. Assets and foreign liabilities shall be accounted for according to generally accepted accounting practices, in accordance with the regulations issued by the Board. Article 135-Negotiation of gold. The Central Bank of Ecuador be able to intervene in the purchase, sale or trading in gold and may make operations in foreign currency or gold to future or other derivatives, on such terms and conditions authorizing the Board of policy and financial and monetary regulation. Article 136-Imprescriptible. Assets and resources that make up the foreign assets of the Central Bank of Ecuador are unattachable, enjoy sovereign immunity, cannot be object of any kind of constraint, as preventive or precautionary or enforcement, and can only be applied for the purposes provided for in this code.

Section 2 of article 137-reserves international reserves international. International reserves to total external assets means that it has the Central Bank of Ecuador in financial instruments, denominated in foreign currency and issued by non-residents that are considered liquid and low-risk. The Central Bank of Ecuador will maintain international reserves in currencies that are most commonly used by the country on payments abroad, notably in diversified currency and easy acceptance. In order keep the solvency financial external of the country, the Board of political and regulation monetary and financial issue the regulation so the Bank Central of the Ecuador save a book International adequate to them needs of them payments international.

Article 138-Accounting for reserves. The reserves shall be accounted for according to accounting practices generally accepted the Board's policy and financial and monetary regulation adopted. Article 139-Investment of the reserves. The Central Bank of Ecuador will invest international reserves so that it guarantees, in its order, the safety, liquidity and profitability of such investments. The return on investment will be income of the Central Bank of Ecuador and will be recorded in the income statement. The returns on the investments which carries out the Central Bank of Ecuador with the Ecuadorian Institute of Social security funds will be transferred monthly to the institution and will not form part of the current income or profits of the Central Bank of Ecuador. Yields generated investments of the single national treasury account will be returned to that account in its entirety, unless the relevant commissions authorized by the Board within the financial operations. These yields will not form part of the income of the Central Bank of Ecuador. Same provision will apply for resources coming from the Fund's liquidity when it is the case.

Chapter 6 of the exchange rate regime article 140.-debt service. It corresponds to the Central Bank of Ecuador purchase currencies for debt service and payments of entities of the public sector. The Board's policy and financial and monetary regulation authorized the opening and maintenance of accounts abroad, for use by public sector entities, prior favorable reports of the governing body of public finance and the Central Bank of Ecuador. Article 141.-Purchase and sale of foreign exchange. The Board's policy and financial and monetary regulation shall regulate the buying and selling of foreign currency and shall determine the cases in which the sale of badges is compulsory to the Central Bank of Ecuador. Other currency exchange transactions may be made on the open market. The governing body of public finances delivered to the Central Bank of Ecuador programming transfers abroad of the General State budget. Article 142-Foreign trade policies. The Board's policy and financial and monetary regulation will agree with the body responsible for regulation in the field of foreign trade, by joint resolution, the goals of enforcement of net income from non-oil currency of balance of goods and services; This last organism is responsible for the second supplement - registration officer Nº 332 - Friday, September 12, 2014 - 27 compliance with such goals. The Board shall submit a report of compliance with this obligation to the Presidency of the Republic.

Title II system financial national chapter 1 activities financial section 1 of financial activities and their authorization


Article 143-activity financial. For purposes of this code, financial activity is the set of operations and services that are performed between tenderers, applicants and users, to facilitate the circulation of money and perform financial intermediation; they have among their purposes preserve deposits and meet the requirements of financing to the achievement of the objectives of development of the country. Financial activities are a public order service, regulated and controlled by the State, which can be provided by the entities that make up the national financial system, prior authorisation of the supervisory bodies, in the framework of the regulations that the Board's policy and regulation of monetary and financial issues. Article 144-Authorization. The Superintendence of banks and the Superintendency of Popular solidarity, economy in the field of their respective competencies, authorised financial activities to entities of the national financial system. In the indicated authorization, active, passive, contingent and operations of financial services that may have entities, by segment, in accordance with its corporate purpose, line of business, specialties, capacities and other requirements and conditions established by the Board of policy and financial and monetary regulation to the effect must be determined. Certain authorisations in this article will appear in the administrative act motivated and will be issued before the fulfillment of requirements determined in this code and the regulations issued for the effect. The authorization may be revoked by the causes outlined in this code. Entities of the national financial system, in addition to this authorization and prior to the start of operations, must obtain the respective operating permit, in accordance with the procedure established for the purpose of the inspection body. Only legal entities authorized by the respective control bodies may use the names: "Bank", "Financial Corporation", "general warehouse of deposit", "casa de cambio", "ancillary services of the financial system", "Credit Union", "mutualist savings and housing loans associations" and "central boxes" and other specific used this code and the rules issued by the Board of policy and financial and monetary regulation.

They may not use expressions that lead to confusion with the earlier by a phonetic or semantic, similarity. The relevant Superintendency qualify resemblance. Article 145-Revocation of the authorization. The control bodies may revoke the authorization for the exercise of financial activities for the following reasons: 1. do not make the minimum of operations determined by the inspection body for a period of at least six consecutive months;

2 have provided false information or fraudulent or omitted relevant information to obtain authorization; and, 3. In the other cases provided for in this code. The revocation may be determined, wholly or partly, with respect to one or more authorizations. The revocation of one or more authorizations, that put at risk the economic viability - the entity financial, at the discretion of the inspection body shall be causal compulsory liquidation. Article 146.-Procedure for revocation. Watchdog by standard will establish the revocation of the authorisation procedure, noting the constitutional guarantees of due process. Recall resolution is not suspended by the filing of claims or administrative appeals or lawsuits in the courts of Justice or arbitration.

Section 2 State responsibility article 147.-responsibility. It is the responsibility of the State to facilitate access to financial activities, fostering their democratization through the formulation of policies and regulations. Article 148-Prohibition of freezing. The State and its institutions may not, in any way, have any way of freezing or widespread and arbitrary withholding of funds or deposits in the entities of the national financial system. The non-observance of this prohibition will entail responsibilities criminal, civil and administrative. Article 149-Credit guarantee scheme. Creating the system of credit guarantee as a mechanism which aims to strengthen credit obligations of persons who are not able to realize projects with the national financial system due to lack of guarantees, such as first, single mothers, people in human mobility, disability, youth and other persons belonging to groups of priority attention. The credit guarantee scheme may also strengthen investments in securities issued under the Act of stock market, companies that support the change of the productive matrix.

28 - Second supplement - registration officer Nº 332 - Friday, September 12, 2014 the credit guarantee can be granted by legal persons of public and private law. Will regulate the credit guarantee system and joint policy and financial and monetary regulation will determine the public institution in charge of its management. The credit guarantee scheme will be under the control of the Superintendence of banks.

Section 3 of the regulation article 150.-subject to the regulation. Entities of the national financial system shall be subject to the regulation issued by the Board of policy and financial and monetary regulation. Article 151-Differential regulation. The regulation should recognize the nature and characteristics of each one of the sectors of the national financial system. The regulation may be differentiated by sector, by segment, by activity, among others.

Section 4 of article 152.-rights of persons financial users. Natural and legal persons have the right to provide financial services of adequate quality, as well as accurate and not misleading information about its content and features. It is right to financial users that information and credit reports that they consist in data bases of financial institutions are accurate and updated with the frequency established by the standard. Entities of the national financial system and those comprising the regimes of securities and insurance, are required to disclose to its customers and users the existence of conflicts of interest in the activities, operations and services that are offered to them. For this purpose, the Board will establish the corresponding regulation. Article 153.-Quality of services. Board policy and financial and monetary regulation governs the quality standards of financial services, of systems of measurement of satisfaction of customers and users and systems of care and repair. Article 154-Express acceptance. It is right for the users that charges imposed by financial and non-financial services are carried out once they have been expressly and previously accepted. Article 155-Protection. In the terms set forth by the Constitution of the Republic, this code and law, financial users are entitled to your personal information is protected and will keep confidentiality.

Article 156-Control. Respect for the rights of customers and financial users will be guarded and protected by the control bodies referred to in this code. Article 157-Interference with rights. Financial users can file complaints or claims with the entity itself, body control or the customer Ombudsman or raise any constitutional, judicial, or administrative action recognized in law to demand the restoration of their violated rights and compensated for the damages caused. Article 158-Customer Ombudsman. Each Member of the national financial system entity will be an advocate for the client, which shall be independent of the institution and appointed in accordance with the regulation issued by the Board. The customer Ombudsman can does not have any linkage with shareholders or managers of the financial institution. Its function is to protect the rights and interests of financial users and will be regulated by the Board of policy and financial and monetary regulation.

Section 5 public registry public article 159-cadastre. The Superintendency of banks, the Superintendency of Popular and solidary economy and the Superintendency of companies, securities and insurance will be organized and will maintain a public registry containing at least the following data: 1. list of entities created or formed; 2 list of entities authorized to exercise financial, securities and insurance activities; 3 list of non-financial legal entities that have received authorization for credit operations;

4. list of liquidated entities; 5. list of shareholders. If you have as


shareholders legal persons representing more than 2% of the share capital, the registry will include the detail of the shareholders up to natural persons who represent, directly or indirectly, more than 2% of the share capital of such legal persons. Board policy and financial and monetary regulation may reduce this percentage and establish exceptions for entities that are listed on stock exchange below this percentage. For the popular and solidary financial sector entities, the registry will be the list of representatives to the general Assembly, in cases which it administers;

6. list of administrators which includes members of the directory or body that makes their times and the legal representatives.

The cadastre must be permanently updated, will be public and accessible. The cadastre information must be available on the web.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 29 Chapter 2 integration of the domestic financial system article 160.-national financial system. The national financial system consists of the public financial sector, the private financial sector and the financial sector people and solidarity. Article 161-Public financial Sector. The public financial sector is composed by: 1. banks; and, 2. Corporations. Article 162.-Private financial Sector. The private financial sector consists of the following entities: 1. multiple banks and specialized banks: to) multiple bank is the financial institution that has operations in two or more segments of credit; and, b) specialized Bank is the financial institution that has authorized in a segment of credit operations and that its operations do not exceed the thresholds determined by the Board of policy and financial and monetary regulation in other segments.

2. of financial services: stores General deposit, Exchange and development of secondary mortgage market corporations; and, 3. Auxiliary services of the financial system, such as: banking, transactional, monetary species transport and securities, payments, collections, networks and ATMs, accounting and software computing and others qualified as such by the Superintendency of banks in the area of its competence.

Article 163-Popular and Solidary Financial Sector. The popular and solidary financial sector is composed by: 1. cooperatives of savings and credit; 2. boxes Central; 3. solidarity or associative entities, boxes and community banks and savings banks; and, 4. Auxiliary services of the financial system, such as: banking, transactional, monetary species transport and securities, payments, collections, networks and ATMs, accounting and software computing and others qualified as such by the Superintendency of Popular and solidary economy in the field of their competence.

Mutualistic associations of savings and housing loans are also part of the popular and solidary financial sector.

Solidarity or associative entities, boxes and community banks and savings banks shall be governed by the provisions of the organic law of the Popular and solidary economy and regulations issued by the Board of policy and financial and monetary regulation. Article 164-Subsidiaries or affiliates. Also part of the national financial system the subsidiaries or affiliated financial institutions domiciled in the Ecuador. Subsidiary is the company with own legal entity in which a Bank, Corporation, box central, cooperative credit union or mutual savings association and credit for housing has a share stake, direct or indirect, more than 50% of the capital subscribed and paid the company. Affiliate is that society with own legal entity in which a Bank, Corporation, box central, cooperative credit union or mutual savings association and credit for housing has a participation interest, direct or indirect, less than 50% and not less than 20% of the capital subscribed and paid in the company or in which exerts an influence on its management by the presence of shareholders Directors, administrators or common employees.

Chapter 3 common provisions for the national financial system section 1 of capital, reserves and profits article 165.-Capital. The entities of public and private financial sectors will have an authorised capital and subscribed and paid capital. The authorized capital is the amount to which the entities of public and private financial sectors can accept subscriptions or issue shares, as the case may be. The capital subscribed and paid shall be at least 50% of the amount of the authorized capital. The capital of the popular and solidary financial sector entities will be variable and may accrue unlimited. Article 166.-Capital increases. The entities of public and private financial sectors may increase its authorized capital at any time, through reform to its creation or Constitution documents. Authorized capital increases will be resolved by the Board of Directors for entities in the public financial sector, and by the general meeting of shareholders for entities in the private financial sector; After fulfilled the corresponding formalities, shall be entered in the register and will be reported to the Superintendency of banks. The payment of the subscribed and paid capital gains will be in the manner provided for in this code.

30 - Second supplement - official record No. 332 - Friday, September 12, 2014 without prejudice to that entity of the private financial sector accounted for the increase in capital subscribed and paid, the inspection body may carry out the investigations it deems the case to verify the legality of the payment of the increases in capital and the source of funds. If the verification of the legality of an institution's capital increase financial and the source of funds used for their payment stipulates that there were breaches of this code, watchdog, prior testing Disclaimer and motivated Act requirement, it will leave no total or partially the increase. Article 167.-Publicity of the capital. The entities of public and private financial sectors only announced its capital subscribed and paid. Similarly, branches of foreign financial institutions will announce only the amount of capital and reserves allocated by the parent financial institution. Article 168.-Legal reserve fund. The entities of public and private financial sectors should constitute a reserve fund legal that will rise at least to 50% of its capital subscribed and paid. To form this legal reserve, financial institutions will be, at least 10% of their annual profits. In addition, in accordance with their statutes and by decision of the directories or the general meeting of shareholders, where appropriate, may act other reserves that will have the character of special or optional, formed by the transfer of profits to heritage. The popular and solidary financial sector entities will have an Irrepartible Legal Reserve Fund, according to the provisions of the organic law of the Popular and solidary economy. Article 169-Persons with patrimonial property with influence. For institutions of the national financial system, are considered persons with patrimonial property with influence to natural or legal persons that have, directly or indirectly, the lowest value from among the following paragraphs: 1. 6% or more of the capital subscribed and paid share capital; or, 2. Shares or shares by an amount greater or equal to 600 fractions basic exempt of the tax to the income.

Section 2 of the mergers, conversions and associations article 170.-Fusion. The fusion is the union of two or more entities of the system financial national of the same sector, by which is undertake to together their heritages and form a new society, which acquires to title universal them rights and obligations of the societies involved. The fusion is produced also when an or more entities are absorbed by another that continues subsisting.


Article 171.-Fusion classes. Mergers can be ordinary and extraordinary. Regular fusion is the agreed and carried out by financial institutions that are not in a situation of deficiency of technical heritage. The extraordinary merger occurs between an entity that is in a situation of deficiency of technical heritage with another entity that is not found in such a situation; in this case, will always be necessary acceptance of the legal representative of the entity that does not find in situation of deficiency, who is entitled to take this decision to the effect. For this case, the general meeting of shareholders or the body which make their times of the entity that can be found in deficiency of the technical heritage, shall be convened to resolve the extraordinary fusion. If the general meeting of shareholders or the body which make their times does not attend this call, the inspection body shall the compulsory meeting of these collegiate bodies that resolve as appropriate, with members who are present. Article 172.-process of fusion. The ordinary process of fusion will be regulated by the control bodies. Extraordinary fusion process is excepted from the ordinary procedures of fusion and will be regulated by the Board of policy and financial and monetary regulation. This merger shall be exempt from the payment of taxes. Same exemption will have savings and credit cooperatives when they merge with others. Article 173-Transfer of assets. In the event of a merger, the transfers of assets are subject to standards issued by the inspection bodies and the applicable accounting standards. The process of transfer of liabilities and warranties will not require acceptance expresses for the clients, who will be notified later in the absorbing entity. Article 174.-Responsibility for the liabilities. In the case of merger by absorption, the absorbent financial institution be responsible for liabilities of the absorbed. Article 175-Conversion. The conversion is the modification or change the corporate purpose or activity of a financial institution to adopt the object and the form of another entity provided for in this code within the same sector; This figure does not alter the existence as a person legal and only gives you the powers and imposes demands and legal limitations of the adopted species. Article 176-Approval. The merger and conversion will be previously approved by respective agencies, in accordance with the existing regulation. In the case of ordinary merger, policies and regulations that in the control of market power, issued by the competent regulatory authority will be considered and will require a preliminary report of the Superintendency of Control of market power when it exceeds the limits by sector and/or financial segment determined by the second board supplement - official record No. 332 - Friday, September 12, 2014 - 31 policy and monetary regulation and financial , in coordination with the Board of Control of market power. In case of extraordinary fusion, these requirements are not necessary. Article 177-Association. The Association is the union of two or more entities of the national financial system, which is found in current operation, for the extension or provision of specific services, unless each of the partners lose their identity and legal status. The Association shall be effected by Association Convention, prior authorisation of the supervisory bodies. The Association Agreement shall establish the term of duration, within the maximum terms determined by the Board on policy and monetary regulation and financial, the rules which govern it and the responsibility of each one of them against the risks that assume.

Section 3 of article 178-investment foreign investment foreign. Natural persons or legal foreign and foreign financial institutions may constitute financial institutions or set up branches or representative offices in Ecuador that will become part of the financial institutions in the terms recognized by the legislation in force. The foreign financial institution jointly and severally liable for the obligations assumed by the branch or office established in the Ecuador. Article 179: Branches and representative offices. Foreign financial institutions that intend to establish branch offices in Ecuador, to carry out financial activities or set up representative offices, must obtain prior authorization from the national control bodies. Branches must be previously direct debit in the Ecuador. Branches of foreign financial institutions and representative offices shall be subject to the regulations issued by the Board of policy and financial and monetary regulation. The creditors of a foreign financial institution that has established a branch in the Ecuador may not exercise rights on the assets that the branch has in the country. Representative offices will only serve to act as information centres to its customers and to carry out the operations indicated in article 194, paragraph 1, literal to) paragraphs 1 and 3 of this code. Article 180-Prohibition of denominations. Foreign financial institutions may not take names belonging to Ecuadorian financial institutions or which induce to think that they are subsidiaries or affiliates of such institutions when in reality are not. They must indicate unequivocally as a foreign financial institution.

Article 181-Requirements. To set up branches or representative offices in the Ecuador, the foreign financial institution concerned should: 1. demonstrate that it is legally established in accordance with the laws of the country where it is made; 2 demonstrate that you pursuant to such laws and their own statutes can remember and has no impediment to create branches or representative offices in the Ecuador;

3 demonstrate that their main domicile is not established in tax havens or jurisdictions of lower taxation to the Ecuador, according to the definitions established by the internal revenue service;

4 comply with the requirements specified in this code, the willing by Board policy and financial and monetary regulation and control, according to the nature of the entity agencies;

5 comply with requirements that Ecuadorian legislation designates and demonstrate that the provision of operating in the Ecuador has been duly authorized by the Government authority responsible for the control of the institution in their country of origin, if it is enforceable under the law of that country;

6. keep permanently in the country a proxy or representative, whose power will be previously described by the respective control body and must register in the register. This agent or representative shall have broad powers to perform all acts and contracts that have been held and take effect in the Ecuador and, especially, so that you can answer demands and obligations. Power must give clear and precise, fulfilling the requirements both of the Ecuadorian legislation as per the legislation of the country of origin of the foreign financial institution;

7. to recognize expressly: a. submission to the jurisdiction, laws, courts and authorities of Ecuador, in relation to the events that celebrate and contracts that subscribes or which have in effect in Ecuadorian territory;

b. renounce the claim through diplomatic channels; c. rights in any trade agreement or protection of investments not limited in any way the exercise of the powers of regulatory of the State, the imposition of sanctions and the establishment of responsibilities which referenced by this code, by what it accepts at any time receive equal national treatment in similar circumstances; and, d. The Ecuador legislation and the jurisdiction and competence of the courts in Ecuador to meet and resolve any dispute about the 32 - second supplement - official record No. 332 - Friday 12 September 2014 interpretation, application and enforcement of any measure taken by the bodies of regulation and control, or the compliance of the rights and obligations arising from the application of this code;

8. all the requirements laid down in the preceding paragraphs shall be mandatory. The non-submission of any void process. The branch may only be authorised if the country in which its headquarters is established has legislation which regulate the risk of its operations, to the satisfaction of the national control bodies, and feasible the reciprocal exchange of information about these financial institutions among the agencies of both countries.


Once the inspection body extend the authorization referred to in article 185, the foreign financial institution shall proceed as provided for in title II chapter 5. Article 182-Representation abroad. Financial sectors public and private entities may establish offices abroad, prior authorisation of the Ecuador watchdog and keep proxies representing the interests of the entity. Article 183.-National financial institutions abroad. Entities in the financial sectors public, private and financial sector people and solidarity, prior authorisation of the respective control body, may participate as shareholders in the capital of foreign financial entities of the same nature, constituted or Constitution, subject to conditions to be determined by this code and the corresponding regulation issued by the Board. Financial institutions mentioned above and the shareholders of these entities with patrimonial property with influence, may not participate as shareholders in constituted banks or become tax havens or jurisdictions of lower taxation to the Ecuador, according to the definitions established by the internal revenue service, and either where the standards of supervision are less than nationals. Investment in the capital in foreign banks that exceed 50% of the capital subscribed and paid, become you the subsidiary of the owner of the investment. Between 20% and 50% investment will make you in affiliate. Article 184-Involvement as shareholder or opening offices abroad. To obtain authorization to participate as a shareholder in financial institutions foreign, constituted or by becoming, or establish offices abroad, the national public or private financial institution shall comply with the following conditions: 1. present the consent of the supervisory authority of the country where will participate;

2 submit the affidavit of their repre - legal tante which indicate that participation will not be used for the purpose of facilitating tax evasion or capital flight;

3 present regulations of the country where partition-for shareholder related to capital requirements, qualification of asset risk, regime of provisions, credit concentration, consolidation of financial statements, risk management, as well as any information allowing to assess the capacity for monitoring and control of the country in which will participate; and, 4. Expressly accept that the Superintendent can perform the inspections that it deems suitable and request information that it deems necessary, without any limits.

In the case of participation in the capital of foreign banks already constituted, the control body, more than the requirements laid down in the nume - former General, may require the information allowing to assess the financial risks of the receiving entity. In the event that participation as shareholders abroad required the authorization of the Ecuadorian control body, the Superintendent may provide a provisional authorization. Article 185.-Authorization. Fulfilled the conditions laid down in this section, the inspection body may issue the corresponding resolution which authorizes both the national participation abroad and foreign participation in the Ecuador. The public or private financial institution must immediately notify the inspection body with respect to any changes related to the authorized participation. Article 186.-Reports. The authorized public or private financial institution shall submit to the inspection body certified copy of the authorization granted by the foreign supervisory authority for participation as a shareholder. Them subsidiaries directly or through the head of group, presented annually within them ninety days of completed the exercise economic or when it request the Superintendence, a copy certified updated of the authorization for the operation and them balances audited. In case of failure to do so or when the report contains comments that suggest the existence of a serious financial problem, the Superintendent may revoke the authorization. The head of the group or its subsidiary, at the request of the Superintendent, shall deliver information with respect to potential depositors of money who are accused by illicit activities, including money laundering and financing of crimes such as terrorism.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 33 for control, the Superintendent may request at any time the information required to perform their duties. Article 187-Revocation of the authorization. The authorization so that public or private financial institution participates in the capital of a financial institution from abroad, may be revoked by the inspection body, by resolution motivated, in the following cases: 1. when the entity authorized, at the discretion of the inspection body, has unilaterally changed the conditions under which the authorization was extended to invest;

2. when not present the reports or information mentioned in the preceding article; 3. when the process of consolidated and cross-border oversight by the Agency of Ecuadorian control or the submitted information is determined the existence of serious financial problems in the foreign financial institution, or lines of business of the entity are not consistent with those authorized by the national or foreign control bodies; and, 4. Very serious infringement, in accordance with this code. As a result of the revocation, watchdog will order the appropriate divestment.

Section 4 of the solvency and financial prudence article 188-requirements financial operation. At all times, the entities of the national financial system shall comply with requirements financial and operation that sets this code and that the Board's policy and monetary regulation, and financial, available in accordance with the activities carried out. Article 189-Liquidity. Entities of the national financial system shall maintain sufficient levels of high quality liquid assets free of liens or restrictions, which may be transformed into cash in certain period of time without significant loss of value, in relation to their obligations and contingent, weighted as determined by the Board. Levels and liquidity management will be determined by the Board of policy and financial and monetary regulation and will be measured using, at least, the following prudential parameters: 1. immediate liquidity; 2. structural liquidity; 3. liquidity reserves; 4. domestic liquidity; and, 5. Liquidity gaps. Article 190-Solvency and technical heritage. Entities of the national financial system shall maintain the capital adequacy to support the present and future of the Organization, operations to cover losses not protected by the provisions of risky assets and to shore up the right macroeconomic performance. Institutions of financial sectors public and private national, individual, and financial groups, on the basis of the consolidated or combined financial statements, are required to maintain at all times a relationship between their technical heritage and the sum not less than 9% of their assets and contingent risk-weighted. Entities of the financial sector people and solidarity of segment 1, individually, and the popular and solidarity groups, on the basis of the consolidated or combined financial statements shall maintain at all times the relationship between its technical heritage and the sum not less than 9% of their assets and contingent risk-weighted. The Board will regulate the percentages of technical heritage applicable to other segments of the financial sector people and solidarity. The total technical patrimony of financial institutions shall cover at least the sum of the capital requirements by credit risk, risk of market, operational risk and other incurred in the execution of financial activities in accordance with the regulations issued by the Board. The relationship between the technical patrimony and total and contingent assets of the entities in the public, private and popular and solidary financial sectors in segment 1, may not be less than 4%. The Board will regulate the percentages applicable to other segments of the financial sector people and solidarity. The Board may fix percentages of solvency by on the minimum provided in this article. Article 191.-Composition of the technical heritage. The technical patrimony shall consist, among others, by: 1. the amount of the capital subscribed and paid; 2. reservations; 3. the total profits or surpluses for the current period once fulfilled the obligations of labour and tax;

4. the irrepartible legal reserve fund; 5. accumulated profits of previous years; 6. contributions to future capitalizations; and, 7. Convertible bonds without specific guarantee, in accordance with the regulations issued by the Board.


34 - Second Supplement - official record No. 332 - Friday, September 12, 2014 of the constituted technical patrimony will be deducted the following: 1. deficiency of provisions, amortisation and depreciation required; and, 2. Desmedros of other items that the financial institution has not recognised as losses. The technical heritage is subdivided into primary technical patrimony and secondary technical patrimony. The primary technical patrimony is constituted by liquid, permanent equity accounts with value true. The secondary technical patrimony is constituted by the rest of the equity accounts. The total of the secondary technical patrimony will be limited in amount to a maximum of 100% of the total of the primary technical patrimony. The Board's policy and monetary regulation and financial rules, will determine the classification of accounts that make up the primary and secondary technical patrimony and shall establish the conditions for inclusion, exclusion and deduction of one or several heritage items, defining the set of relations that must be kept between them in order to safeguard the soundness, sustainability and protection of the resources of the public. Article 192-Asset deficiency. The shortcomings of technical heritage presenting entities of the national financial system, without prejudice to the penalties that apply, can be resolved within the intensive supervision program to which refers this code, with increases of subscribed and paid capital or subordinated loans, which must be run within a period not exceeding ninety days. These deficiencies may also be covered with bonds convertible into shares, provided that maintain general warranty, your deadline is more than five years and be acquired exclusively in currency. In the case of increases in capital subscribed and paid by new shareholders, these must be qualified previously by the control body concerned. If the financial institution does not cover asset deficiency within the time limit, the Superintendents will benefit the shareholders or partners of the financial institution to constitute a guarantee unconditional, irrevocable and immediate payment, in favor of the deposit insurance corporation, liquidity Fund and Fund of private insurance, of at least the equivalent of 140% of the deficiency. This warranty shall be valid as long as the asset deficiency and will run in the event of breach of the intensive supervision program. Not constitute warranty or not keep it current while there is asset deficiency will be causal of compulsory liquidation. Will be causal of liquidation forced for an entity financial maintain a relationship of the heritage technical constituted facing them active and contingent weighted by risk, lower to the 9% by more than two hundred seventy days additional to them ninety days designated in the first paragraph of this article. Property values lower than 50% of the levels established as capital requirements will be causal in compulsory liquidation of the financial institution. Article 193-Solvency in entities abroad. The solvency of foreign financial institutions where there is shareholder of an Ecuadorian financial institution by more than 20% of the capital shall be determined by the countries where they are, but in no case may be less than 9% of the relationship between the technical heritage and risk-weighted assets, calculated with the calculation methodology applied to financial groups in the Ecuador , or less than the minimum determined by the Board, the greater of the two.

Section 5 of article 194.-operations operations. Financial institutions may perform the following operations in accordance with the authorization granted by the respective control body: 1. public and private financial Sector: a. active operations: 1. lending mortgage and pledge, with or without issuance of titles, as well as unsecured loans and any other kind of loans authorized by the Board;

2 grant credit in current account, contracted or not; 3 constitute deposits in financial institutions in the country and abroad; 4 negotiate letters of change, loans, notes, invoices and other documents that represent payment obligations created by sales on credit, as well as the advance of funds with support of the concerned documents;

5 negotiate resulting documents of foreign trade operations; 6 negotiate securities values and deduct documentary letters on the outside or make advances on them;

7 acquire, retain, and dispose of, on their own or third-party titles issued by the ente rector of public finance and the Central Bank of Ecuador;

8 acquire, maintain or sell, by their own account, fixed income, according to the provisions of the securities market law, and other evidence of credit provided for in the commercial code and other laws, as well as securities rights

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 35 9. Acquire, maintain or sell forward, buying or selling and futures options contracts; You can also perform other operations of the money market, in accordance with the provisions of the relevant regulations;

10 make the capital investments of a financial services entity or an entity of auxiliary services of the financial system to become its subsidiaries or affiliates;

11 make investments in the capital of foreign banks, under the terms of this code; and, 12. Buy or sell precious metals.

b. passive operations: 1. receive demand deposits; 2 receiving term deposits; 3 receive loans and accept credits from financial institutions in the country and abroad; 4. Act as originator of processes of securities backed by mortgage, collateral or quirografaria, own or acquired credit portfolio; and, 5. Issue long-term obligations and convertible bonds on shares guaranteed with assets and heritage; These obligations shall be governed by the provisions of the securities market law.

c. operations contingent: 1. assume obligations by counts of third through acceptances, endorsements or guarantees of titles of credit, the granting of guarantees, bonds and letters of credit internal and external, or any other document; and, 2. Trading derivatives financial by has own.

d. Services: 1. carry out services of box and Treasury; 2. Act as issuer or operator of cards of credit, of debit or cards of payment; 3. perform collections, payments and transfers of funds, as well as issue turns against their own offices or those of entities financial national or foreign;

4. receive and preserve objects, furniture, values and documents on deposit for its custody and lease lockers or boxes of security for deposits of values; and, 5. Make by has own or of third, operations with currency, hire repos by and issue or negotiate cheques of traveller.

2. popular and solidary financial sector: a. active, passive, contingent and service operations in the number literal 1 paragraphs 4, 7 and 10; literal b numerals 1, 2, 3 and 4; literal paragraph c 1; and d paragraphs 1, 3 and 4 of this article;

b. granting loans to its members. The mutual may make loans to its customers; c. constitute deposits in entities of the national financial system; d. to act as issuer or operator of debit cards or payment cards. Segment 1 of the popular and solidary financial sector entities may issue or operate credit cards;

e issuing long-term obligations backed in its assets, heritage, portfolio of credit mortgage or collateral, own or acquired, provided that in the latter case they originate in active operations of credit from financial institutions;

f carry out investments in the share capital of central boxes; and, g. carry out operations with foreign currency.


Popular and solidary financial sector entities can perform the operations detailed in this article, according to the segment to which they belong, under the terms of their authorization. The definition and the actions that comprise the operations specified in this article shall be governed by the Board of policy and financial and monetary regulation. Financial institutions, for the operations carried out, must have the credit technology and adequate services. Article 195. Extraordinary cancellation of obligations. Entities of the national financial system may, extraordinarily, receive as payment of credits or constituted obligations in its favor goods chattels, real estate, stocks or shares, among others, in dation in payment or judicial adjudication. Chattels, real estate assets and the shares or participations can be stored up to one year to the value of reception; This expired, must be disposed of at public auction, in accordance with the rules issued by the Board of policy and financial and monetary regulation. If they could not be alienated, the financial institution must constitute provisions at the rate of a monthly twelfth of the value in books, beginning in the month immediately after the expiry of the period. In any case, may not hold such chattels, real estate property and shares or participations for a period to 36 - second supplement - official record No. 332 - Friday, September 12, 2014 exceed an additional year to within a year originally granted. The real and personal property not sold will be sold by the Superintendent in a public auction. Rights on the shares or participations that are not disposed of in due time will be suspended and the Superintendent will have their sale at public auction. Who acquires such shares or shares entitled to receive the benefits that had been suspended. Article 196-Other operations. Entities of the national financial system may carry out other operations which are necessary for its operation, such as buy, build, preserve and dispose of movable and immovable property necessary for its functioning, within the quotas established by the Board. Entities of the national financial system may not be of insurance activities and values beyond those authorized by this code. Article 197-Operations in other means of payment. Entities of the national financial system may carry out operations in other means of payment, in accordance with rules issued by the Board of policy and financial and monetary regulation. Article 198.-Operations by non-financial corporations. Non-financial legal entities which, as part of the rotation of your business, make sales term or carry out credit operations above the limits established by the Board of policy and regulation, monetary and financial, will be controlled by the Superintendency of companies, securities and insurance or by the Superintendence of the Popular and solidary economy as appropriate and shall be subject to the rules that dictate the Board's policy and financial and monetary regulation on this matter. To this effect, sales term shall be considered as credit operations. Article 199.-Suspension of operations. Them agencies of control of them entities of the system financial national may have the suspension of them operations of them entities under its control in them cases referred in the law. Article 200-Offices. Entities of the national financial system may establish offices for the attention to the public including the criterion of territoriality, according to the regulations of the Board. These offices, prior to the start of operations, must obtain the control body of the respective operating permit, in accordance with the procedure provided for this. Entities will exhibit in public and visible place in each of their offices, both its parent permission for performance granted by the Superintendence. Article 201-Customer service. Entities of the national financial system will attend the public from the date of the operating permit, within the schedules established by the inspection bodies. You may not suspend or put an end to the attention to the public without prior notification to the respective superintendence and the public in general with at least five days in advance. Control of entities of the national financial system bodies may provide or authorize the temporary suspension of work on one or several of the offices of the entities under its control, at the justified request of these. Article 202.-Warning in the event of a strike. In the case of Declaration of strike of a financial institution, before the suspension of work, authority that is knowing the labour dispute will take care during the strike remain open all offices and continue working in duties in a number of essential workers, in order to not affect the rights of the users of the financial.

Section 6 of the assets, provisions financial article 203.-management of the assets and credit limits. Entities of the national financial system are required to meet the standards of composition in the structure of financial assets from their balance sheets and the requirements for the acquisition of financial investment instruments, in accordance with the set Board. Article 204.-Quality of assets, contingent and provisioning. The entities of the national financial system, in order to reflect the true quality of the assets and contingent to qualify them permanently and constitute the provisions established by this code and regulations the Board of policy and financial and monetary regulation issued to cover the risk of possible losses, the loss of the value of the assets and to shore up the right macroeconomic performance. Article 205-Provision. Entities of the national financial system must constitute an account of valuation of assets and contingent, including financial derivatives, to cover any losses by debts or impairment and to shore up the right macroeconomic performance. Expected losses from risky assets will be covered with provisions, while the unexpected losses will be covered with capital. Article 206.-Obligation to provide. Public and private financial institutions should establish the following provisions: 1. specific provisions for impairment of assets and contingent; 2. generic provisions; 3. provisions for the economic cycle; and, 4. Any other provision that the Board of policy and financial and monetary regulation determines.

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Financial institutions, for the determination of the provisions referred to above, are subject to the rules established by the Board. Board policy and financial and monetary regulation establish, by segment, provisions for the popular and solidary financial sector entities, being mandatory for segment 1 referred to in the paragraphs of this article. Article 207.-Punishment of obligations. Entities of the national financial system will punish accounted for all loan, discount or any other obligation unrecoverable; This punishment does not release it to continue with the collection of the sums committed, nor nor relieves the person in charge of the credit of their delinquent status. He time in mora that must elapse so an entity financial punish these obligations will be determined by the Board of political and regulation monetary and financial, with base in the evaluation of the breach of payment of them operations with risk of credit of counterpart, which not can overcome them three years. Prior to the punishment of the obligations, these must be provisioned at 100% of their value in books. Article 208-Relationships in active, passive and contingent operations. Board policy and financial and monetary regulation will dictate the rules on the relations that must keep financial institutions in their operations active, passive and contingent, whereas the risks arising from the differences of deadlines, rates, currencies and others. The Board also dictate the rules relating to the development of policies, technologies and procedures for risk management. Article 209-Orientation of lending operations. Board policy and financial and monetary regulation can be regulated by rules guidance and direction of the operations of credit institutions of the national financial system and not financial institutions granting credits to the limits established by the Board. For this purpose, it will consider, among others, segments, interest rates, guarantees and credit limits. In any case the Board may intervene in the definition of the natural person or legal recipient of credit operations. For this purpose, the Board will consider the fit of deadlines between the assets and liabilities of the regulated entities. The Board may establish incentives for the implementation of this provision. Article 210.-Limits for active and contingent operations. Public, private financial institutions and those of segment 1 of the popular and solidary financial sector not may be active operations and contingent with the same natural or legal person for a sum which, altogether, exceed 10% of the technical heritage of the entity. This limit can be increased to 20% if exceeding 10% corresponds to caucionadas obligations with guarantee of national or foreign banks of recognized solvency or by adequate safeguards in terms handed down by the Board of policy and financial and monetary regulation. Established credit limits are determined at the date of the original approval of the operations or every carried out reform. In any case appropriate warranty may have a value less than the total value of the excess. All the operations of the preceding paragraph, may not exceed any of the two hundred percent (200%) of the heritage of the subject of credit, except that there were adequate safeguards that cover, in which exceed at least the hundred and twenty per cent (120%), in accordance with the regulations issued by the Board. The limits specified in the preceding paragraph shall not apply with respect to active and contingent operations with securities issued by the Ecuadorian State and the Central Bank of Ecuador. The Board's policy and financial and monetary regulation will establish percentages lower than those determined in this article for the financial institutions that have a risk profile in excess of the safer system level. Board policy and financial and monetary regulation shall establish the applicable limits for other segments of the financial sector people and solidarity. Article 211.-Exceptions to the limits for active and contingent operations. Excepted from the limits in the previous article of this code the following operations: 1. the appropriations intended to finance exports after made the shipment, that the guarantee of irrevocable credit opened by banks rated by watchdog as of recognized solvency from the outside;

2. the confirmed letters of credit for import and guarantees issued against backrests with sufficient guarantees, in accordance with the regulation issued by the Board on policy and monetary regulation and financial;

3. warranties granted by account and risk of private external financial entities, rated by the control body of recognized solvency, which always have the sufficient documentary support and security to the satisfaction of the entity, in accordance with the regulation issued by the Board's policy and monetary regulation and financial; and, 4. Active operations and contingent among financial institutions, with the restrictions determined by the Board of policy and financial and monetary regulation.

38 - Second Supplement - official record No. 332 - Friday, September 12, 2014 article 212.-limits for financial group. In the case of a financial group, the percentages provided for in article 210, will be calculated on consolidated technical heritage of the financial group. Article 213.-Presumption of a single subject of credit. For purposes of the limits in article 210, it shall be presumed that the individual natural or legal persons constitute a single subject when: 1. are shareholders directly or indirectly 20% or more of the capital of a legal person; 2 there are business, capital or management relationships that allow one or more of them to significant and permanent influence on the decisions of others;

3 there are data or information established that various people maintain relations of such a nature that in fact make up a unit of economic interest; and, 4. Any other that defines the control using standard body. Article 214.-Guarantees of credit operations. All credit operations must be guaranteed. Board policy and monetary regulation and financial, in a reasoned way, will establish the cases in which credit operations must have minimum guarantee, in terms of its quality and minimum coverage. Article 215.-Prohibition of operations with linked. He is prohibited to public and private financial institutions and its subsidiaries or affiliates, active, passive, and contingents of services transactions with natural or legal persons directly or indirectly related to its administration. Except ban certain operations in article 194, paragraph 1, literal to paragraph 7; literal (b) paragraphs 1 and 2; and, d, paragraphs 1 and 4. The above mentioned entities may issue debit cards and payment on behalf of these people. Private financial institutions are also forbidden to carry out operations with natural and legal persons that are linked directly or indirectly with the property of such entities, with the exception of operations excluding in the preceding paragraph. Same prohibition apply to financial institutions, popular and solidarity, whereas the provisions of article 450. About the capital of a financial institution there bonding property in public and popular and solidary financial entities. Public and private financial institutions may make credit operations on behalf of their employees who do not belong to the management of the entity, only under conditions of market and within the limits determined by the Board on policy and monetary regulation and financial, which may not exceed the equivalent of twenty-five basic fractions exempt from income tax , by each person. Credit quotas set out in this code shall be respected for the financial institutions of the popular and solidary economy. Administrators of public and private financial institutions and its relatives within the fourth degree of consanguinity and second of affinity, have access to education lending in the same State in which they work, under market conditions, in accordance with the limits determined by the Board of policy and financial and monetary regulation. Article 216.-Linked people. People associated with the ownership or management of the financial institution, public or private, the following will be considered: 1. natural or legal persons that have, directly or indirectly, the lowest value from among the following literals: a. 1% or more of the capital subscribed and paid in the financial institution; or, b. Capital subscribed and paid in the financial institution for an amount greater than or equal to one hundred basic fractions exempt from income tax.

2. persons with patrimonial property with influence of a belonging to a financial group subsidiary or affiliated entity;

3. legal persons in which the


Administrators or officials who approve operations of credit from a financial institution holding directly or indirectly more than 3% of the capital of such companies;

4. them spouses, them cohabitants or them relatives within the second degree of consanguinity and them relatives until the first degree of affinity of them shareholders that are people with property heritage with influence and of them administrators of an entity financial;

5. the relatives in third and fourth degree of consanguinity and relatives of the second degree of affinity of the shareholders with more than 12% of shareholder package with a financial institution managers;

6. the spouses, the cohabitants and relatives within the second degree of consanguinity or first of affinity of a financial institution officials who approve operations of credit; and, 7. Legal persons in which the spouses, the cohabitants and relatives within the second degree of consanguinity or first affinity of administrators or officials who approve operations of credit from a financial institution, holding shares by 3% or more of the capital of these companies.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 39 for entities of the financial sector people and solidarity, there will be only bonding in paragraphs 3 to 7 of this article, and in the operations exceeding credit quotas set out in this code and the regulations issued by the Board on policy and monetary regulation and financial. Article 217.-People linked by presumption. They are individuals connected by assumption, in the entities of the national financial system, the following: 1. those who have received credits on preferential terms by deadlines, rates of interest, lack of bond or disproportionate respect to the heritage of the debtor or their ability to pay;

2 which have received loans not guaranteed properly, no history or domiciled abroad and no information is available about them;

3 which have received credits for reciprocity with another financial entity; 4. those that have preferential treatments in passive operations; and, 5. Bacterial, which declared in accordance with the General rules issued by the inspection bodies.

Section 7 of the financial and accounting regime article 218-standards accounting. Entities of the national financial system shall be referred to policies and regulations on accounting and financial statements issued by the Board of financial and monetary regulation and policy, as well as control rules that dictate, so extra and not contradictory, the respective control bodies on these matters. Article 219.-Financial statements. The financial statements of the entities of the national financial system, cut to December 31 of each year, must be signed by the legal representative and the general Accountant of the entity and will have the opinion of the internal and External Auditors qualified by the Superintendence, as the case may be. The General meeting of shareholders or the body which make their times, until March 31 of each year approve the audited financial statements of financial institutions, cut to December 31 of the previous year, which will be presented to the respective control agency. Article 220.-Presentation of financial statements to the inspection body. Entities of the national financial system shall submit to the respective control bodies the financial statements, including their combined and consolidated balance sheets, signed by the legal representative and the general Accountant of the entity, and the additional information that is required, in format and with the frequency to determine the superintendencies.

Entities of the national financial system shall be obliged to give access to the inspection bodies and the service of internal revenue accounting, books, correspondence, files or documentary evidence of its operations, physical, and electronic real-time manner without limitation. Article 221.-Publication of the financial statements. Entities of the national financial system be published States situation, losses and gains, position of technical heritage and indicators of liquidity, solvency, efficiency and profitability, which shall additionally contain the opinion of the external auditor by the respective superintendence and all explanatory notes that complement the information contained in its opinion, at least once a year at the end of each financial year to December 31 , or when control agencies so it have, in accordance with the rules laid down for the purpose. In the case of financial groups and popular and solidary groups, each one of the member entities shall submit to the Superintendent and will publish, jointly with the internal auditor and the external auditor reports qualified for the respective Superintendence, its separate financial statements as well as consolidated and audited the group financial statements. The publication will take place in a journal of the territorial constituency where the entity has coverage and on the website of each financial institution. Article 222.-Publication of the superintendencies. The control bodies will disclose and publish financial and statistical information of the national financial sector financial system and of each entity in particular. Article 223-Information on financial statements. If the financial statements contain allegedly false information, the Superintendents must denounce this particular to the Office of the Attorney-General. Article 224.-Information on the situation of financial institutions. Control agencies shall inform periodically the public in general with regard to the financial situation of the entities subject to its control. Be informed, at least on the financial structure, asset quality, including the overall results of the last qualification of their assets risk, position of technical heritage and indicators of solvency, liquidity, efficiency and profitability. Article 225-Information file. Entities of the national financial system will keep your accounting records physical, including the respective backs, for the term of ten years counted from the conclusion of the corresponding operation and for fifteen years in the digital form authorized by the Superintendence. The information provided by financial institutions and copies and certified reproductions issued by an authorized official of the financial institution will have similar probative value as the original documents.

40 - Second supplement - official record No. 332 - Friday, September 12, 2014 section 8


Control and audits article 226.-monitoring of financial activities. The superintendencies, in accordance with its competences, shall monitor the financial activities of the national financial system. Article 227.-Internal control systems. All entities of the national financial system must have internal control systems to ensure the effectiveness and efficiency of operations, reliability of information and compliance with laws and regulations. Article 228-Audits. Entities of the national financial system will have an internal auditor and external auditor, registered and qualified in terms of their suitability and experience by the corresponding superintendencies. The Auditors internal and external will be responsible for administrative, civil and criminally by the reports and opinions that emit. Article 229-Internal Auditor. The internal auditor is a natural person appointed by the General meeting of shareholders or the body that makes its times, and may be removed at any time by the body that appointed him, for the reasons determined by the Superintendents. In the event of definitive absence, the General meeting of shareholders or the Agency to do their times proceeded to appoint his replacement. Article 230.-Liability of the internal auditor. The internal auditor shall verify that the activities and procedures of the Organization are in accordance with the provisions of this code, the regulations issued by the Board on policy and monetary and financial regulation, the by-laws and accounting principles dictated by the Superintendents and the general acceptance. In addition, the internal auditor will monitor the operation of internal control systems and compliance with the resolutions of the supervisory bodies, of the General meeting of shareholders, of the directory or the organisms that make their times and will emit opinion about the proper functioning of the Government corporate or cooperative, among others. The internal auditor will submit to directory or agency to do their times and agencies of control, any information that is requested and those deemed necessary by the Auditors. Article 231.-External Auditor. The external auditor of a financial institution may be a natural or legal person, it will be selected by the General meeting of shareholders or the body to do its times and may be hired by financial institutions for consecutive annual periods of up to three years, observing the criteria of alternation and referential prices control agencies established for the purpose. The Superintendents may, at its sole discretion and so motivated, have the termination of the contract with the external auditor; in this case, the financial institution shall immediately replace it. The financial institution may not terminate the contract with the external auditor without the authorization of the inspection body. Article 232.-Responsibility of the external auditor. The external auditor will be responsible for external audits in each of the financial institutions. The external audit comprises, among others, the following actions: 1. issue independent opinion about the truth or accuracy of the financial statements, accounting systems and their receipts and stands and say if the examined financial statements present reasonably the patrimonial situation of the entity to December 31 and the results of its operations for the year ended on that date in accordance with the accounting rules and accounting principles generally accepted in that these not be contradict previous ones, as well as on its uniform application;

2 decide on the adequacy and effectiveness of the systems of internal control, structure and administrative procedures, and to evaluate them;

3. opinar if financial activities and its procedures conform to applicable legislation, and that instructions to the effect given the Superintendency;

4 review of information related to investments that the financial institution maintains subsidiaries or affiliates, both within the country and abroad. In this case you should comment on the nature and amount of transactions between the investor and the recipient of the investment, existing relationships and the effects that exercise building on the heritage of the audited entity;

5 review the implementation of controls to prevent illicit activities, including money laundering and the financing of crimes such as terrorism and other crimes;

6 review the compliance of the corrective measures that had been recommended in the previous report on the aspects referred to in the paragraphs above; and, 7. Inform the other requirements for the respective control body available, assuming full responsibility for the reports issued, in accordance with standards issued by the Superintendence.

The external auditor will do as a Commissioner of the financial institution, in the terms established by the law of companies; you will have the functions determined in this code and tax laws, as well as the provisions issued by the control agency.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 41 article 233.-limitation. The only external auditor can provide audit services for which he was hired and may not provide any services or collaboration to the audited entity through natural or legal persons directly and indirectly related. In addition, the external auditor may not, within the year following the termination of his contract, to provide any other services to the audited entity. The natural or legal person who had rendered services, other than the of external auditors, to the financial institution in the immediately preceding year can not be external auditor. In the case of financial groups and popular and solidarity groups, entities that comprise them will necessarily have the same external auditor or signatures correspondents or associated with this. Article 234.-Review of audits. The control bodies shall have full audit powers of the audit process applied and the quality and consistency of the results achieved by internal and external audits. Article 235-Audit reports. Audit reports are reserved to the public for a period of ten years. Audit reports will be no reserved or enjoy stealth and reserve in the processes of research carried out by the Office of the Attorney-General or the General Comptroller of the State. Neither will be reserved audit reports when they are requested by the Board on policy and monetary regulation and financial, which will observe secrecy and reserve standards established in this code. Article 236-Control of the domestic financial system. The control of public and private financial institutions is held in accordance with the specific provisions for each financial sector steady in this code. Article 237-Rating. The solvency and the ability of the entities of the national financial system to manage risks with third parties and comply with their obligations with the public will be rated on the basis of minimum parameters that include a uniform scale of risk rating by financial sectors, in accordance with the rules regarding Board policy and financial and monetary regulation issued. The risk rating may be carried out by companies rating risks national or foreign, or associated between them, with experience and of recognized prestige, qualified as suitable by the inspection bodies. The hiring of these signatures will be made through selection procedures, ensuring the alternation. The qualification will be carried out on 31 December of each year, will be reviewed at least quarterly for entities of the financial sectors public, private and popular and solidary segment 1, and will be published by agencies in a national newspaper. The frequency and relevance to the rest of the financial sector people and solidarity will be determined by the Board of policy and financial and monetary regulation. Entities of the national financial system will be required to exhibit in a visible place, at all units to the public and on their website, the latest risk rating given. Risk ratings carried out by companies authorised by the supervisory bodies can only be published. The members of the risk rating Committee and technical staff involved in the processes of qualification, will respond jointly and severally with the rating agency for damages arising from its action, without prejudice to the criminal liability to any.

Section 9 of the obligations


Article 238.-Responsibility for solvency. Shareholders and partners of the sector entities private and popular and solidary financial will be responsible for the solvency of the company up to the amount of their shares or participations. In the event of compulsory liquidation of a private financial institution, the shareholders who, directly or indirectly, are persons with patrimonial property with influence, respond even with their personal assets where they have engaged in fraud, gross negligence or slight negligence. Equal responsibility will have created trusts to manage actions, their constituents and the administrators of the entities of the national financial system. Also they will respond with their heritage linked and officials in the acts specified in article 305. Article 239.-Financial indicators, liquidity, capital and heritage. Entities of the national financial system shall comply at all times with the rules relating to financial indicators, liquidity, capital and heritage determined in this code and the regulations that the Board policy and monetary regulation issued financial in accordance with the type of entity, the systems of internal control and risk management appropriate to the size and complexity of the entity and financial. Article 240.-Lace. Entities of the financial public and private sectors, without prejudice to the other reserves provided by this code, are required to keep lace over reservoirs and catchments which they have in charge. The lace will be unpaid and will remain at the Central Bank of Ecuador. Where public and private financial institutions do not meet levels of lace willing, the Superintendency of banks will order the immediate contribution of resources to cover the release the entity.

42 - Second supplement - official record No. 332 - Friday, September 12, 2014 for entities of the financial sector people and solidarity, the Board's policy and financial and monetary regulation will establish the conditions of lace differentiated segments for this sector. Article 241.-Regulation of the lace. The Board's policy and financial and monetary regulation will regulate differently reserve requirement ratios, which may be by structure of collection, type of entity, among others. Article 242.-Delivery of information. Entities of the national financial system are required to provide the information requested them by organisms of control and service of internal revenue, direct way, without restriction, pending or any brokerage, conditions and form that these entities have it, exclusively for purposes of their management. Legal, financial, accounting and information of any other type that is required to the entities subject to this code by the respective control bodies may be dematerialized and signed by electronic signature duly certified by one of the approved entities, in the terms provided for in the law of electronic commerce, signatures and data messages. Each control body be established, for its implementation, inherent to each type of information provisions. Entities of the national financial system, in accordance with the provisions of this code, have the obligation to provide any information required by Board policy and monetary regulation and financial, in the time established for the effect through the inspection bodies. The requirements of information to formulate the Central Bank of the Ecuador, the Insurance Corporation of deposits and liquidity fund, the National Council of Control of narcotic drugs and substances Psicotrópicas CONSEP and UAF financial analysis unit, that will be processed in accordance with the provisions of this code and the law. If by express legal provision, other State institutions need to require information to financial institutions, this requirement must be channeled through agencies, which previous determination about their cause and purposes, collect it and deliver. Article 243.-Money laundering and financing of crimes such as terrorism. Them infringements on washing of active and financing of crimes as the terrorism, is will sanctioned of conformity with them provisions of the code organic comprehensive criminal and the law of prevention, detection and eradication of the crime of washing of active and financing of crimes. Article 244-Control and prevention of money laundering. Entities of the national financial system have an obligation to establish internal control systems for the prevention of offences, including money laundering and the financing of crimes as terrorism, all financial operations.

Article 245.-Information to shareholders and partners. Entities of the national financial system will present to its shareholders and partners, as applicable, at least the following information: 1. the management report; 2. comparative balance sheets from the last two years; 3. statement of changes in financial position for the last year; 4. status of losses and gains of the past two years; 5 report of the internal and External Auditors qualified by the respective Superintendence; 6. report of the rating of risks, when applicable; 7 position of the technical heritage; 8. indicators of liquidity, solvency, efficiency and profitability; 9 rating from last fiscal risk assets; and, 10. Remuneration, compensation and other benefits of its administrators. In the case of financial groups, the information must be on a consolidated basis and on an individual basis for each of the Group entities. The information in this article must be available to the public in general through its website and in its annual report, in such form as the supervisory bodies to determine. Article 246.-Information to the business user. Entities of the national financial system are required to inform the financial users in formats that define the body of control, at least the following: 1. its main financial indicators; 2. the rates of annual effective active and passive interest; 3. the charges for financial services; 4. the General conditions of financial activities provided; 5. the rating, where applicable; 6. the status of operations that a user keep with the entity; 7. the benefits and limitations of the services that you are offering;

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 43 8. For the attention of the complaints procedure before the financial institution; 9. a copy of the physical document, when the financial institution requires the signature of the user; and, 10. If you agree that certain services such as statements from users are sent electronically, the physical Bank certification required won't cost.

Article 247-Charges by financial services. Entities of the national financial system shall not apply or be charged fees for services that have not been provided by the entity, or they may set charges for financial services that are not authorized by the Board of policy and financial and monetary regulation. Any charges made against this provision shall be restored to the financial user, without prejudice to the penalties to which any. Article 248-Non-financial service charges. Entities of the national financial system may not be charge for the provision of services other than financial, on behalf of third parties, if they do not comply with the regulation that the Board issued for the purpose or without the previous and express acceptance of the user. The acceptance must be verifiable by any manner recognized by law. The charges collected that does not have the express acceptance of the user must be restored, without prejudice to the penalties to which any. Article 249.-Suspension of payments for loss or charges. In the event of loss, theft, robbery or theft of debit cards, credit, ATM, checks or any other instrument that has a similar objective, the entities of the national financial system shall suspend any charge or payment on behalf of its customers, from the time that these events must be notified either in writing, by telephone or by any other means which would constitute proof , in accordance with the law. Charges or payments made by the financial institution on behalf of their clients, not taken into account the notification of loss, theft, robbery or theft, will be borne by the entity. The entity will assume also the responsibilities arising from computer fraud caused by weakness or flaws in their systems. Charges or payments made by financial institutions on behalf of their clients attributable to these will be your own responsibility. Article 250.-Compulsory insurance. Prior to the disbursement of credit operations, entities of the national financial system shall require the insurance determined by the Board of policy and financial and monetary regulation.


Article 251.-Customer care. Entities of the national financial system will have care systems to the client with respect to the operations and services that provide, facilitate the resolution of disputes arising with its financial users. Disputes or claims unresolved before the financial institution may be lodged with the body of control, without prejudice to legal actions that may arise. Article 252.-Contracts of adhesion. Financial services may only be provided upon subscription of a contract of adhesion whose mandatory provisions and prohibitions must be approved by the inspection bodies. Contracts shall not include those clauses prohibited by legislation. Any contrary provision or those clauses which imply a waiver or diminution of a financial right recognized by law, will be void void. Article 253-Fraudulent advertising. Entities of the national financial system will be responsible for their financial activities and the poor provision of services, when their conditions are not according to the carried out advertising or description that incorporate.

Section 10 of article 254-ban general prohibitions. He is forbidden to natural or legal persons not forming part of the national financial system capture third-party resources or perform, in the usual way, financial activities defined in article 143 reserved for entities that make up the system. They may do either advertising or use of notices, letterheads, posters, receipts, titles or any other means to suggest that the business of the above-mentioned persons is of a financial nature. Violations of provisions of this article shall be punished according to what has this code. Article 255-Bans to entities of the national financial system. Is forbidden to the entities of the national financial system: 1. carry out financial activities which are not authorized by the inspection bodies, or which do not have the authorization of the Board of policy and monetary and financial regulation referred to in article 14 paragraph 37;

2 operations involving pyramiding of capital, especially to grant direct, indirect and contingent credits with the object that your product is aimed, directly or indirectly, to the subscription and payment of shares of the entity or of any other company of the financial group or group people and solidarity;

44 - Second supplement - official record No. 332 - Friday 12 September 2014 3. Operations of credit direct, indirect and contingent, receiving in guarantee its own shares or participations, or belonging to the same financial group or popular and solidary Group subsidiaries or affiliated companies;

4 freeze or arbitrarily withhold funds or deposits; 5 be active and contingent transactions with related persons or above quotas set out in this code as appropriate;

6 acquire titles of income securities sets issued, endorsed or guaranteed by the company or companies that integrate your financial or popular and solidary group in conditions other than those of the market, in accordance with the regulations issued by the Board on policy and monetary regulation and financial;

7 negotiating within the same financial or popular and solidary group shares of ownership of any of its members;

8 purchase debt for amounts higher than those determined by the Board of financial and monetary regulation and policy;

9 operations of credit for on the limits authorized in the regulation; 10 issue obligations of short-term commercial paper, with the exception of the financial services and ancillary services of the financial system entities;

11 charge interest for on the maxima established; 12 charge interests of mora or fines on capital not expired; 13 violate the secrecy or the reserve; 14 alter or distort financial statements; 15 grant warranties other than those determined by the Board of financial and monetary policy, or request guarantees lower in quality and quantity as those established by the Board;

16 make any form of advertising deceptive, abusive or misleading error in the choice of services, which may affect the interests and rights of financial users;

17 establish encumbrances without authorization on property of the entity; 18 marketing databases for clients; 19 dispose of or lease, for any reason, the entity property or which are mortgaged or charmed her, on behalf of the directors, officers or employees, or to those who acted in its name and on its behalf;

20 buy property owned by administrators, officials or employees of the entity, or to those who acted in its name and on its behalf; and, 21. Refuse to open any type of account, without any valid justification. Non-financial entities that grant credit for on the limits established by the Board are subject to certain prohibitions in paragraphs 9, 11, 12, 14, 15, 16 and 18 of this article. Article 256.-Prohibition of participation as a shareholder. Private financial institutions and the shareholders of a private financial institution that are persons with patrimonial property with influence, may not be owners, directly or indirectly, of shares or participations in companies, companies or corporations non-financial activity. This prohibition also applies to holders of a financial entity that, even when individually considered non-persons with patrimonial property with influence, at the discretion of the inspection body to maintain links between economic, corporate, business or family and altogether exceed the percentage or values of article 169, or which form a unit of economic interest, in accordance with this code. Nor the managers of financial institutions may participate as shareholders in companies outside the financial sector. Means that the shareholders are indirect holders when they exercise their right of ownership over the 6% or more of securities representing the capital of commercial companies, non-financial activity through trusts, economic and organisational links, other mechanisms or through their spouses or cohabitants. Notwithstanding the above, the inspection bodies may establish other types of indirect property which may arise from investigations. The breach of the prohibition set out in this article by financial entities, their shareholders or managers, shall be punished as very serious offences and the suspension of their rights as partners or shareholders of the respective non-financial entity with the removal from their posts in the case of administrators. The inspection body, will also have the seizure of the shares or participations of the respective non-financial entity and its subsequent sale at public auction. The values obtained by the sale, once deducted expenses incurred status and the amount of the corresponding sanctions, shall be delivered to each of the shareholders or managers of private financial institutions, their spouses or cohabitants, in the prohibition. Article 257-Impediments to shareholders and managers. Shareholders, administrators and officials of private financial institutions and the second supplement - official record No. 332 - Friday, September 12, 2014 - 45 managers and officials of popular and solidary financial entities, on which has been established responsibility for an entity declared in liquidation forced, through conviction, not may be nominated to posts of popular election or act as servants, or form part of an entity of the national financial system. This prohibition shall remain in force for five years counted from the date on which have fulfilled their conviction. In case of incurring in this prohibition, nominations, designations or contracts for these people will remain without effect. This prohibition shall apply without prejudice to the provisions of article 113 paragraph 2 of the Constitution of the Republic. Article 258.-Impairments to Board members and boards of management and surveillance. May not be members of the boards of directors or an entity of the national financial system surveillance tips: 1. managers, proxy General, internal and external auditors, and individuals and legal to carry out works to support supervision and more officials and employees of the entity, regardless of its name and its business subsidiaries or affiliates;

2. the directors, members of the boards of management and monitoring, legal representatives, attorneys general, internal auditors and external of other entities of the same species. This prohibition does not apply between the entities of the public finance Sector;

3. who were in default of their obligations by more than 60 days with any of the entities of the national financial system subject to this code;


4. who in the course of the past five years had been removed by the control body; 5. who in the course of the last sixty days have obligations firm with the internal revenue service or the Ecuadorian Institute of Social Security;

6. who in the course of the last five years had incurred in punishment of their obligations on the part of any entity financial;

7. those who were litigating against the entity; 8. those who have been convicted of crime, while penda penalty and up to five years after accomplished; 9. the spouse or cohabitant or relative within the fourth degree of consanguinity or second of affinity of a main or alternate, vocal director and managers of the entity of private or popular and solidary financial sector concerned; and 10. Those who for any reason are legally incapacitated.

The prohibitions contained in the paragraphs 2 to 9 of this article are applicable to the legal representatives, Vice-Presidents, managers, Assistant managers and internal auditors of entities of the national financial system, or who make their times, in cases where appropriate. Not more than 40% of the directors or members of the Board of Directors of an entity that controls an financial or popular and solidary group may also integrate the directory of subsidiaries. Prohibitions and disabilities referred to in this article shall apply with the exception of paragraph 7 also in cases in which concerned facts supervenientes to the exercise of the functions. The appointment of the members of the directory or the body that make their times of an entity of the national financial system, shall be communicated to the respective control body for the qualification of the suitability of these persons; in the qualification process watchdog will verify, among others, that the designated are not in the above prohibitions. The Member Directory or the organism which do their times, will take up his appointment once you have with the assessment made by the supervisory bodies. In the event that the Member Directory or the Board of Directors is not qualified, the financial institution must replace it. Article 259-Bans on the servers. Public servants of the Board policy and monetary and financial, regulation of the supervisory bodies, the Central Bank of Ecuador and the deposit insurance corporation, liquidity Fund and Fund of private insurance are subject to the general prohibitions specified in the organic law of the public service. It is forbidden for these servers to disclosing any information subject to secrecy and reserve which is found under his knowledge in the performance of their office.

Section 11 of the infractions and sanctions article 260.-offences. Infringements are qualified as very serious, major and minor. Article 261. Very serious offences. They are very serious breaches the following: 1. failure to observe the prohibitions in Article 255 numerals 1, 2, 3, 4, 5, 6, 7, 8 and 9; 2. failure to follow Board policy and monetary regulation, and financial regulations and rules and provisions issued the Superintendents;

3 perform operations that are not within the purpose of the entity; 4 simulate capital increases;

46 - Second supplement - official record No. 332 - Friday 12 September 2014 5. Hold shares in companies outside the financial activity above the limits determined in article 256;

6. failure to observe the provisions of internal control on prevention of offences, including money-laundering and financing of crimes such as terrorism, determined in article 244;

7. failure to observe the provisions on capital, reserves and solvency in this code; 8. failure to observe the provisions on assets, limits on credit, supplies and guidance of credit; 9. execute mergers, conversion or exclusion and transfer of assets and liabilities, without the authorization of the control bodies;

10 participating as a shareholder of formed foreign financial institutions or by Constitution, without the authorization of the respective Superintendence;

11 deny, prevent, impede or hinder the control and monitoring by the supervisory bodies of the State, in the scope of their powers;

12 fake documents and information or hide partially or fully, by any act or method, the actual situation of the financial institution;

13. failure to observe the provisions related to the delivery of information required by the institutions of the State determined in this code, in the field of its competences;

14 carry out acts of disposition of assets and values of an entity subject to suspension of operations, according to the provisions in article 292, or causal of compulsory liquidation, prepared once;

15 grant credit to public entities operations without observing the procedure laid down in the organic code of planning and public finance;

16 breaching the prohibitions specified in articles 40 and 41; 17 operating offices without the authorisation established in article 36 paragraph 21; 18. do not pay the fine imposed for serious infringement; 19. the Commission of two or more serious violations within the period of one year; 20 distribute unauthorized anticipated dividends or profits when the inspection body specified otherwise; and, 21. Others provided in this code. Article 262.-Serious violations. They are the following serious violations: 1. violate the prohibitions specified in Article 255, paragraphs 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21;

2. failure to observe the provisions related to the rights of financial users; 3. failure to observe the provisions regarding financial and accounting regime; 4. failure to observe the provisions on internal control; 5. failure to observe the provisions on charges for services financial and nonfinancial; 6. make agreements of association without the authorization of the Superintendents; 7 modify the articles of Association of the financial institution without permission of the control body; 8. do not pay contributions and contributions in the code; 9. use adhesion contracts without respecting the minimum requirements and prohibitions determined by the Superintendents;

10 open offices without the respective operating permit; 11. do not pay the fine imposed by slight infringement; 12. the Commission of two or more minor offences in the period of one year; and, 13. Others provided in this code. Article 263-Minor offences. They are minor offences, as follows: 1. the modification without authorization from opening hours to the public; 2. do not provide to shareholders or partners the information provided in this code; 3. the presentation with errors and inconsistencies of the reports that it is obliged to the financial institution; and, 4. Others provided in this code. Article 264-Administrative sanctions. The following sanctions: 1. for very serious offences, a fine of up to 0.01% of the assets of the offending entity, the removal of administrators and/or revocation of the authorizations;

2. for infractions graves, fines up to 0.005% of the assets of the offending entity, the suspension of administrators up to ninety days or reprimand; and, second supplement - official record No. 332 - Friday, September 12, 2014 - 3-47. For minor violations, fines up to 0.001% of the


assets of the offending entity. In any case a pecuniary punishment for violating financial institution public, private or popular and solidary, belonging to segment 1, shall be less than thirty unified basic salaries. With respect to other entities financial solidarity and popular, the pecuniary penalty may not be less than a unified basic salary. The amount of the fines will be included in account only the treasure national, in accordance with the provisions in article 267 of this code article 265-grading and criteria. The sanctions will graduate in view of the seriousness of failure, damages caused to third parties, neglect, intentionality, recidivism or any other aggravating or mitigating circumstances. In the case of serious and very serious infringements, the superintendencies, depending on the criteria set out in the preceding paragraph, in addition to the pecuniary sanction, may impose any other sanctions determined for each type of infringement. If a same made is establishing of two or more offences administrative, is will take in consideration the more serious. If the two offences are equally serious, be taken into account that carries a sanction of pecuniary value. The fines firm will cause the corresponding interests. Article 266-Concurrent sanctions. The imposition of the sanctions set out in this code is independent of any other sanctions that could be applied for acts in violation of other provisions of the code and does not limit the application of the civil or criminal penalties that apply, in accordance with the law. In any case a person may be sanctioned administratively twice by the same body, the same cause. Article 267.-Form of implementation of the sanctions. The fines imposed on financial institutions, once firm, must be paid by debit of accounts having financial institutions at the Central Bank of Ecuador. In case of not carrying out the debit pointed out in the preceding paragraph, the inspection body will issue the title of corresponding credit, which can be charged administratively by coercive means or through the courts. Fines imposed on administrators, officials or employees of a financial institution will be made effective through titles that can be charged through the coercive jurisdiction or by any other means.

The fines imposed shall be deposited in the National Treasury single account. Article 268.-Responsible for the infringement subjects. Responsible for infringements subjects are the financial institution, its shareholders, administrators, officers or employees and other persons concerned in article 276, by action or omission, guilty of violations typified in this code. Natural persons and non-financial legal entities who commit certain offences in this code, as appropriate are also responsible. The imposition of sanctions, in no case, will relieve the offender's compliance with the obligation whose breach caused the sanction. Article 269-Prescription of infringements. Very serious offences prescribed in eight years, in five serious offences and minor offences prescribed in three years, as from the date of the offence. The prescription is interrupted with the onset of the sanctioning procedure. Article 270.-Termination of the sanctions. Sanctions may become extinct in the following cases: 1. the fulfillment of the sanction; 2. by the acceptance of claims or administrative appeal;

and, 3. Court of law. Article 271-Punishment to officials and servants of the inspection bodies. Failure to comply with the prohibition provided for in article 259 shall be punished by the nominadoras authorities, in accordance with the provisions of the organic law of public service and labour code, as the case may be. Article 272.-Penalties for disclosure of information. Natural or legal persons who disclose, in whole or in part, information submitted to stealth or reserve, shall be punished with a fine of twenty-five basic salaries unified, without prejudice to the criminal liability that corresponds. Article 273.-Civil liability. Without prejudice to the administrative sanctions refers to which this section and remedial provisions ordered by the control bodies, financial institutions will respond civilly liable for actions or omissions that cause harm to financial users or State agencies, in accordance with the law. Article 274-Crimes. Anytime, when the control bodies of the national financial system, in the exercise of their functions of control, aware of the perpetration of an offence related to financial activities, including washing of 48 - second supplement - official record No. 332 - Friday, September 12, 2014 assets and financing of crimes such as terrorism, will be required to denounce these facts to the Attorney General of , and in the latter case will be notified Additionally UAF financial analysis unit, for subsequent weekends. The exercise of criminal action will be independent of civil and administrative penalties. Article 275.-Penalties for unauthorized activities. The Superintendency of Popular and solidary economy, with respect to the popular and solidary economy entities that are alleged infringers of the general prohibition in article 254, shall have the same powers of inspection conferred on the popular and solidary financial sector entities by this code. With respect to persons who do not form part of the popular and solidary economy and alleged infringers of the given general prohibition in article 254, the Superintendency of banks will have the same powers of inspection conferred on financial institutions by this code. In these cases, the control bodies will benefit the immediate suspension of activities, the closure of offices, shall notify the Office of the Attorney-General and will have any other measure precautelatoria to protect the interests of the people. These transgressions will be administratively penalized by a fine of between five hundred and two thousand and five hundred basic salaries unified, without prejudice to the civil and criminal liability. Article 276.-Jurisdiction of the Superintendence. The jurisdiction to punish breaches of financial institutions in the public and private sectors, its shareholders, administrators, officials or employees, auditors internal and external signatures rating risk, expert appraisers and others who carried out support to the monitoring services, corresponds to the Superintendency of banks. The jurisdiction to punish breaches of the popular and solidary financial sector entities, its administrators, officials or employees, auditors internal and external signatures rating risk, expert appraisers and others who carried out support services for the supervision, corresponds to the Superintendence of the Popular economy and solidarity. Competition to punish infringements of non-financial entities that grant credit, its administrators, officials or employees and others who carried out support to the monitoring services, corresponds to the Superintendency of companies, securities and insurance and the Superintendency of Popular solidarity, economy according to the case. The superintendencies, in the scope of their functions, shall have jurisdiction to deal with any natural or legal person who, without having the qualities listed in the paragraphs above, committing breaches of this code, the regulations issued by the Board or the rules issued by the inspection bodies.

The sanctions consist in motivated administrative act. The Superintendents may take the cautionary measures deemed necessary in order to safeguard the interests of the people. The Superintendents have an obligation to initiate investigation procedures that apply, within a period of thirty days from the receipt of any complaint put in your knowledge by Board policy and monetary and financial regulation. Failure to comply with this obligation will result in administrative, civil or penal responsibilities that correspond. Article 277-Sanctioning administrative procedure. The Superintendents will sanctioned observing the following procedure: 1. identification of the offence; 2 notification of the breach in the term of up to ten days since its identification, which gives home to the administrative penalties procedure;

3. once notified, the alleged infringer in ten days, may submit all legal tests which creates assisted. This term may be extended only once and at the request of party by five additional days;

4. the evidence submitted will be processed by the control body, who will assess them according to the rules of healthy criticism within twenty days, and may require within this term reports it technical and legal that you consider necessary. This term may be extended only once, by the term of fifteen additional days;

5 over the term indicated in the paragraph


previous, the body of control, in form motivated will dictate the resolution that corresponds;

6. the decision shall be notified by watchdog at the end of three days from the date of issue; and, 7. During the conduct of the administrative penalties procedure, parties have access to the file without any restriction.

Failure to comply with the terms set forth in this article shall be causal dismissal of the responsible public servant. Article 278-Challenge. Penalizing acts may be challenged at the administrative or court before the boards of the contentious administrative, without prejudice to any other actions specified in the Act. The single filing of a claim, appeal or court action does not suspend the effects of the sanctions Act.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 49 for the presentation of a claim or appeal by the imposition of fines, the appellant must be previously given the value of the fine imposed. Article 279-Penalty for other entities. The transgression to the prohibitions laid down in Article 255 will be sanctioned by the respective organs of control, in the scope of their powers.

Section 12 of article 280.-Supervision supervision. Control agencies provided for in this code, in the scope of their powers, are required to undertake a process of ongoing supervision, in-situ and extra situ, financial institutions, that allows to determine economic and financial institutions, the operation of its business, to evaluate the quality and the management of risk, internal control system the appropriate framework of corporate or Government cooperative, verify the veracity of the information generated and other aspects that ensure the proper functioning of institutions and the system. The determination of the types of supervision referred to in this section and their implementation shall be reserved and exclusive authority of the inspection bodies and it will not be subject to challenge by the controlled entities. Article 281-Preventive Supervision. Consists in the supervision that applies to financial institutions as determined by the relevant inspection body as very low or low-risk profile, understanding as such to those entities whose economic - financial, quality corporate or co-operative governance and risk management, among other conditions determined by the inspection body, are considered to be sufficient for the size and complexity of their operations or have minor recommendations that do not generate a significant concern for the supervisor. Article 282-Corrective Supervision. Consists in the supervision that applies to financial institutions determined by the corresponding risk profile inspection body means, understanding as such to those entities whose economic - financial, quality of Government corporate or cooperative, or risk management, among other conditions determined by the inspection body, evident weaknesses of moderate to significant size and complexity of their operations and which deserve a strict follow-up of the recommendations of the supervisor. Article 283-Intensive monitoring. Consists in the supervision that applies to financial institutions determined by the organism of control as of critical and high risk profile, understanding as such to those entities whose economic - financial, quality of Government corporate or cooperative, or risk management, among other conditions determined by the inspection body, are considered inadequate to deficient for the size and complexity of your operations requiring significant improvements or that they present perspectives clear violating minimum capital-adequacy requirements or have breached them. Intensive monitoring will be also held at banks registered losses in the last two quarters or when their business projection indicates that within the two following quarters could fall below the minimum level of required technical patrimony. Article 284-Intensive supervision program. The Superintendency of banks or the Superintendence of Popular and solidary economy shall require for adoption a program of intensive supervision institutions with critical and high risk profile, which must include the set of actions arranged by the control body aimed to solve the problems incurred by an entity of the national financial system. The intensive supervision program will be imposed on the entity by control agencies at any time; the program must be prepared by the respective financial institution and submitted to the relevant inspection body for approval, within the time limit that is set for this purpose. If the financial institution has failed the program within the prescribed time limit, the inspection body will prepare it and will impose its implementation. In the case of a subsidiary, the intensive supervision program must be presented by the entity that makes the financial group head. The intensive supervision program will contain commitments and obligations and deadlines to carry out the planned activities in the, in no case may have a longer term than two years and must detail in a schedule actions and measures that will take the Organization to solve their situation. The program must be viable, sustainable assumptions and must be approved by the directory or the body that makes their times. Intensive supervision by asset deficiency program shall not exceed under any circumstances, the three hundred and sixty days, in accordance with the time limits set out in article 192. Met this term, and if capital deficiency, this fact shall constitute causal of compulsory liquidation of the entity. Article 285.-Control of the intensive supervision program. Intensive supervision programs compliance will be verified by control of form on-site or extra bodies. During the execution of the intensive supervision program, the superintendencies may inspect and adjust it and having all preventive and corrective measures that are necessary and impose relevant sanctions, without prejudice to the civil and criminal actions to any place. Article 286.-Completion of the intensive supervision program. The intensive supervision program will end up meeting their goals 50 - second supplement - official record No. 332 - Friday 12 September 2014 deadline determined, in which case the lender will recover its normal functioning. The intensive supervision program may terminate in advance, by disposition of the control body, when the financial institution fails to comply with the program. Article 287-Breach of the intensive supervision program. Substantial breach of the intensive supervision program will be causal to implement an extraordinary fusion, have the exclusion of assets and liabilities or the compulsory liquidation of the financial institution. Article 288-Derestriction of intensive supervision programs. Intensive supervision programs and information support will be reserved for a period of twenty-five years. The regulators and financial institutions will be required to save the corresponding reservation. The processes of preventive and corrective monitoring information will be subject to the reservation for a period of fifteen years. Article 289-Preventive and corrective measures. While adopting the programme intensive supervision and during its execution, the control bodies may provide the following measures: 1. that the increases in deposits, collection or investment are invested in domestic securities of high liquidity, solvency and profitability, in the way that the Superintendents have;

2 prohibit new loans are granted and/or necessitating new investments, except the ordinates in the preceding paragraph;

3. avoid the concentration of credit; 4 prohibit that profits, dividend or surplus; distributed 5 deny the opening of new offices, at home or abroad, or have the existing close; 6 prohibit investment in the capital of institutions formed or constituted in the country or abroad;

7 prohibit any type of investment abroad; 8 have the divestment of assets abroad; 9 have the liquidation of trusts and the immediate restitution of the assets contributed to the autonomous patrimony;

10 immediately available to the entity registered accounted for losses corresponding to the total or partial provisioning of assets whose state of uncollectibility, realization or liquidity as well required, single view of the superintendencies, and reducing its capital or affectation of reserves against them;

11 grant deadlines, in accordance with article 192, that entity resolve the increase of capital and reserves, which must be subscribed and paid within such time-limits;

12. the immediate removal of administrators and others


officers or employees as it deems appropriate. In the financial sector people and solidarity, removal may apply, in addition, with respect to members who act as representatives in the general Assembly; and, 13. All those other measures it deems appropriate and that does not contravene the regulations issued by the Board of policy and financial and monetary regulation.

Article 290.-Consolidated and cross-border oversight. The control bodies shall carry out cross-border consolidated supervision to the group financial or popular and group solidarity, through appropriate follow-up and enforcement of prudential rules to all the activities that made groups locally and internationally, the transparency of their operations, treatment of conflicts of interest, service and security of customers and the identification of risks in solvency and liquidity position individually and nationally strengthened, so as to avoid regulatory arbitration. The local inspection bodies shall be supervised - consolidated sion of the entity that makes head of group and its members, and will require the information that is necessary, without limit, directly or through it, all the members of the financial or popular and solidary group and determine the requirement of consolidated technical heritage of such groups. Consolidated and cross-border monitoring may be carried out in cooperation with agencies control foreign, on the basis of conventions which have been agreed for this purpose, which, under the criteria of reciprocity, shall facilitate the exchange of information between them.

Section 13 of exclusion and transfer of assets and liabilities article 291-entity financial unviable. It is the entity of the national financial system which incurs one or more grounds for compulsory liquidation. Article 292.-Resolution of suspension of operations and exclusion and transfer of assets and liabilities. In order to adequately protect deposits from the public and prior to declaring the compulsory liquidation of a non-viable financial institution, the body of control, by resolution, shall have the suspension of operations, exclusion, and transfer of assets and liabilities and shall appoint a temporary administrator. This resolution shall enter into force from the date of issue. Article 293-Exempt operations of the suspension. The inspection body will determine the operations that should exempt the suspension and second supplement - official record No. 332 - Friday, September 12, 2014 - 51 are indispensable for the conservation of the assets of the entity, the recovery of credits and payments of salaries of workers. Article 294.-Loss of rights of shareholders and partners and cessation of administrators. The date of the resolution for suspension of operations and exclusion and transfer of assets and liabilities of the non-viable financial institution, the rights of its shareholders or partners are lost and cease automatically in their office administrators, without a claim to compensation, even if they have a dependent relationship with the entity; In addition, prohibits the alienation of the property of the shareholders with patrimonial property with influence, third linked and administrators, for which the control body shall carry out all relevant actions. Article 295.-Temporary administrator. He administrator temporary will assume the functions of them administrators and will exercise the representation legal of the entity financial unviable, preserving their goods. Article 296: Exclusion process and transfer of assets and liabilities. Within the process of exclusion and transfer of assets and liabilities, the temporary administrator, in coordination with the Agency's control, run the following steps: 1. organize the information of the entity; 2. the total or partial exclusion of assets and/or liabilities of the non-viable financial institution; and, 3. The transfer of the assets excluded other viable financial institution, together with liabilities of equal value. If the transfer of the excluded assets is not feasible, may be the article 80 paragraph 7.

The process of exclusion and transfer, including the transfer of assets, liabilities guarantees, will not require acceptance of customers and be implemented through the creation of a trust. The temporary administrator may punish the price of assets charged to the patrimony of the entity in liquidation, while the value obtained by the transfer covers at least all the priorities included in the article 315, paragraphs 2 to 11 inclusive, and the percentage defined by the deposit insurance corporation, liquidity Fund and Fund of private insurance with respect to deposits referred to in paragraph 1 of the above-mentioned article. The application of this criterion will not cause civil liability to the temporary administrator. The inspection body may be granted to the receiving entities assets and liabilities excluded, temporary exceptions to the application of the General rules issued by the Board on policy and monetary regulation and financial, prior authorization. Exceptions shall maintain relationship with the amount of assets and liabilities assumed and avoid jeopardizing the liquidity or solvency of the institution.

The measures provided by the temporary administrator in the process of exclusion and transfer of assets and liabilities, in any form, are exempt from taxes. The process of exclusion and transfer of assets and liabilities will be implemented by the temporary administrator within the period of fifteen days from the date of the decision of suspension of operations. If within the indicated term has has not specified the process of exclusion and transfer of assets and liabilities agreements, watchdog will have the compulsory liquidation of unviable financial institution and ask the Insurance Corporation of deposits and liquidity Fund for the payment of insured deposits. In any case, the temporary administrator shall reserve sufficient resources for the cancellation of appropriations for domestic investment of excess liquidity and rediscount window. Article 297.-Administrative and judicial actions. They may fail to launch or pursue administrative or judicial actions on the assets of the financial institution whose operations have been suspended in accordance with article 292, as either they may provide or register measures precautionary on those. Where measures have been arranged prudential, the relevant judge shall order its immediate lifting. Arranged by the temporary administrator acts involving the transfer of assets and liabilities of the non-viable financial institution are not subject to judicial authorization any or can be considered ineffective respect to the creditors of the financial entity that was the proprietor of the excluded assets. The creditors of the non-viable financial institution will not have action or any right against the purchasers of the alienated assets. Article 298.-Completion of the process of exclusion and transfer of assets and liabilities. In the event that the process of exclusion and transfer of assets and liabilities of a viable financial institution has completed successfully will be the compulsory liquidation of the financial institution, as well as their assets and liabilities not transferred. In addition, in the event that the process of exclusion and transfer of assets and liabilities has not satisfactorily completed, be the compulsory liquidation of the financial institution, as well as all their assets and liabilities.

Section 14 of article 299.-winding-up-liquidation. Entities of the national financial system are settled voluntarily or forcibly, in accordance with the provisions of this code. Article 300.-Transfer of assets. When an entity of the national financial system that is in compulsory liquidation or whose general meeting of shareholders or 52 - second supplement - official record No. 332 - Friday, September 12, 2014 organism which their times has agreed its voluntary dissolution, enajenase all of its assets or a substantial part of them to another financial entity, such transfer shall be carried out by means of public deed which indicated its amount and for departure, the assets that are transferred according to the respective balance sheet. In the cases referred to in the paragraph that precedes, as well as in any other case of transfer, the tradition of the property and its corresponding guarantees and rights accessories will operate fully right, without endorsements, notification or registration, except in the case of property estate. The only merit of the public instrument of assignment allows sign guarantees, where applicable, or exercise in judgment creditor's. Registrars of property and business will be required to undertake in an expeditious manner registrations and corresponding inscriptions. Article 301-Grounds for voluntary liquidation. Entities of the national financial system are settled on a voluntary basis, when not falling on grounds of compulsory liquidation, for the following reasons: 1. by expiration of the fixed term in the


social status; 2. by fusion; 3. at the conclusion of the activities for which it is formed; and 4. By transfer from the main domicile abroad. Financial solidarity and popular and private sectors entities also cleared by agreement of the shareholders or members, as the case may be. The entities of the sector financial public is cleared also for reasons of interest public arranged by the President of the Republic. Article 302.-Resolution of voluntary liquidation. Decision of liquidating an entity of the national financial system on a voluntary basis, by any of the specific causes in this code, will be brought to the knowledge of the inspection body for approval. The control body, upon verification that the financial institution is not involved in any of the grounds for compulsory liquidation, having the resources needed to meet all of its financial and non-financial obligations and its liquidation will not lead to negative effects on the functionality of the national financial system or the macroeconomic management of the country, you can approve or deny the voluntary liquidation , through the issuance of the corresponding administrative act. If the financial institution is in causal compulsory liquidation or not account with sufficient resources to meet all of its financial and non-financial obligations, voluntary liquidation will be denied and have appropriate administrative action.

Article 303.-Grounds for compulsory liquidation. Entities of the national financial system are settled in a forced way, for the following reasons: 1. by the revocation of one or more authorizations of financial activities, when at the discretion of the inspection body, these affect the economic viability - financial entity;

2. for substantial breach of the intensive supervision program; 3. by not to cover the shortcomings of technical heritage in accordance with the provisions of article 192;

4. by not raising the share capital or the capital subscribed and paid to the minimum established in this code; 5. for losses of 50% or more of the share capital or the capital subscribed and paid, which could not be covered with the reserves of the entity;

6. for not paying any of their obligations, especially with the depositors, in the clearing house or the breach in the restoration of domestic investment or discount window operations, when the Fund's liquidity does not reach to cover such operations. For entities in the Financial Sector Popular and solidary, except the 1 segment, which geographically is located in areas of difficult access, this ground for compulsory liquidation is set if within seventy-two hours of required payment obligations, they were unsatisfied;

7. when any of the indicators of solvency is less than fifty percent (50%) of the required minimum level;

8. by accumulating two months of default in the payment of contributions and contributions to the deposit insurance fund liquidity;

9. by termination of the process of exclusion and transfer of assets and liabilities referred to in Article 296; and, 10. For any other reason determined in this code. The entities that make up the financial sectors private and popular and solidary cleared forcibly, in addition, for the following reasons: 11. By inability to manifest fulfill the purpose; 12. when the entity managers abandon their charges and it is not possible to appoint their replacements in one period not greater than thirty days;

13. by reducing the legal minimum number of shareholders and by a decrease in the number of members below the legal minimum; and, second supplement - official record No. 332 - Friday, September 12, 2014 - 14 53. By not modifying its procedures, by the failure of the directory or the non-adoption of the agreements determined in the last paragraph of article 412.

Suspension of operations provided for in article 292 resolution will cause the loss of ownership of the actions of all stakeholders and partners shares. Article 304.-Resolution of compulsory liquidation. When the inspection body should determine that the financial institution is involved in one or more grounds for compulsory liquidation, and was not possible or feasible to implement a process of exclusion and transfer of assets and liabilities, shall issue the decision of compulsory liquidation of the entity. Article 305.-Presumption of fraudulent bankruptcy. When a financial institution be placed under compulsory liquidation, it shall be presumed that it is result of malicious acts committed by administrators, officials or employees who have participated in any of the acts identified by the comprehensive code of criminal. Article 306-Complaint. It should be resolved the suspension of operations or forced liquidation of a financial institution, the inspection body is obliged to immediately submit the corresponding complaint to the General State Prosecutor's Office, in accordance with the comprehensive organic code criminal, so criminal responsibilities to any place established. Article 307.-Content of the resolution of liquidation. In the resolution of voluntary or compulsory liquidation the following will be available, at least: 1. the liquidation of the financial institution; 2. the revocation of authorizations to perform financial activities; 3. the withdrawal of the operating permits; 4. the term for liquidation, which in no case may exceed the two years; 5. appointment of the liquidator; and, 6. The cessation of temporary administrator functions. In the case of compulsory liquidation, the resolution asked the deposit insurance corporation, liquidity Fund and Fund of private insurance to pay depositors insurance. Resolution of liquidation of a financial institution will be motivated, signed by the holder of the corresponding inspection body, shall enjoy the presumption of legitimacy and must be met from the date of issue. Resolution of liquidation must register in the corresponding registers.

The inspection body will oversee the management of the liquidator. Article 308-Validity. Winding-up resolution shall remain in force from the date of issue, without prejudice to its publication in the Official Gazette. Article 309.-Advertising. Resolution of liquidation of a financial institution shall be published once in a newspaper of the place of domicile of the institution and official registration, without prejudice to its advertising in other media. Article 310-Challenge. The Act of settlement of a financial institution may be challenged in administrative or judicial office. Administrative challenge will be in accordance with standards issued by the inspection body. Court challenge was made to the respective Chamber for contentious administrative. The interposition of a resource or action does not suspend the effects of the Act of settlement of a financial institution. If the challenge is accepted, either administrative or judicial office of last resort, and the Act of settlement of a financial institution is left without effect, shall be in accordance with the terms of the resolution or decision, as the case may be. All the events held by the liquidator in the exercise of their functions shall be valid, except that is judicially proves fraud, in which case the corresponding rules shall apply. Article 311-Resources for the payment of the settlement. When an entity is in liquidation, shall be collected all resources on which is entitled, in order to pay the obligations of the entity, except for those whose availability is restricted by a judicial measure issued prior to the suspension of operations. Article 312.-Functions of the liquidator. The liquidator must be all activities leading to liquidation, the assets of the financial institution in order to cancel the existing liabilities. For this purpose, the liquidator shall exercise coercive jurisdiction. The main functions of the liquidator are: 1. represent the State, judicial and extrajudicial; 2. start the judicial actions that correspond against anyone who could be held responsible for liquidation;

3 take in charge the administration of the assets that comprise the assets of the entity; 4 comply with provisions of article 306; 5 hiring credits, for which purpose may deliver collateral assets of the entity in liquidation. These appropriations shall be privileged above any other credit;

54 - Second supplement - official record No. 332 - Friday 12 September 2014 6. Dispose of social assets; 7 collect and receive the amount of appropriations from the entity and balances due by the shareholders, giving the corresponding receipts or settlements;

8 to pay creditors; 9 present States of liquidation; 10 inform the control bodies; 11 reporting to control agencies relating to the recovery of debts, with the established periodicity for such purposes;

12 receive, carry and store books and correspondence


of the Organization and to ensure the integrity of its heritage, formulate monthly and annual balance sheets, and a report on the development of the settlement, detailed account of his administration and draw up the final balance of payment or sign the Act of lack of heritage;

13 negotiating or lowering of bad or doubtful debts and settle claims against the entity; and, 14. Distribute to shareholders the remnants of the social credit, if you have it; otherwise, shall issue credit notes for differences.

The inspection body will determine additional features required to be met by the liquidator, as the case may be. Assets, liabilities, heritage and other obligations that could not be settled in accordance with the provisions of this article, may be transferred to a trust whose constituent will be the liquidator of the company, in order to dispose of the remnants. The liquidator not can make new financial activities related to the purpose of the entity, as well as nor acquire, directly or indirectly, assets of the financial institution in liquidation. This prohibition is extended to the spouse, cohabitant and relatives within the fourth degree of consanguinity or second of affinity. Section 313-Judicial actions. Resolved it suspension of operations willing in the article 292 or it liquidation forced of the entity financial, not may start is processes judicial or administrative against such entity, or decreeing is embargoes or levies, or dictate is others measures on their goods, or follow is procedures of execution of sentences because of failures judicial or administrative, because of them obligations collapsed with previously to the date in that is met it suspension of operations to that entity financial and while such situation to continue in force, except mortgages constituted by the financial institution in favour of third parties, as collateral for operations up to the amount, by a natural or legal person, equivalent to two hundred unified basic wages, which shall be governed by article 2381 of the Civil Code.

The sums owed, for any reason, or owned enterprises of those shareholders or managers of financial institutions in dealing with this article, including those that are not payable to the date of suspension of operations, for these purposes, be construed as time expired, and therefore constitute, in favor of the suspended entity that takes them into administration , credit privileged first class even in preference to mortgage loans, the structured in trusts or any other different nature which are not assets owed to workers or to the institutions of the State, including the Ecuadorian Institute of Social Security. For the recovery of such assets, the entity of the national financial system suspended will begin the enforcement on the basis of the determination that is strongly practiced, and have measures precautionary and constraints that fit, even of real character on goods that are subject to assessment of any kind or contributed to trusts, which will be cancelled by the temporary administrator or the liquidator of the entity in order to collect what is owed, so that with its product, respecting the priority determined in the present subparagraph, cover the claims in accordance with article 315. Organisms of control, at the justified request of the liquidator, can order the cancellation of the property registry for the registration of purchases, payment in kind, or any other title traslaticio or limited domain, including contributions to autonomous patrimony, with respect to those goods of the companies involved persons with patrimonial property with influence or administrators, concluded subsequent to the suspension of operations of the financial institution , so that these goods will serve to collect what is owed according to the provisions and the procedure given in the paragraph preceding. Third parties of good faith that may be affected by the cancellation of the transfer, will have action for damages only against those who have transferred property after ordered the suspension of operations of the financial institution. Article 314.-Interests and terms of loans granted. All deposits, debts and other obligations of a financial institution on behalf of third parties, from the date of its forced liquidation, will not bear interest against the mass of creditors, except as provided in the following article. Credit granted by a financial institution in the process of compulsory liquidation will keep the terms and conditions agreed originally. However, appropriations which have the quality of related shall be deemed expired term. Article 315.-Priority of payments under the compulsory liquidation. Payments arising from the compulsory liquidation of a financial institution shall be made in the following order: 1. deposits up to the amount legally secured through deposit insurance;

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 55 2. That is due to workers for wages, indemnities, utilities, reserve funds and pension Jubilee expense to the employer, up to the amount of settlements that practice under the terms of the legislation covering them, and obligations to the Ecuadorian Institute of Social security arising from labour relations;

3. the loans out of window of Rediscount and domestic investment of excess liquidity; 4. deposits for amounts exceeding value insured priority groups, up to a value equal to the 50% additional () to the value insured;

5. the other deposits for amounts that exceed the value of the insured, in accordance with the rules issued by the Board on policy and monetary regulation and financial, in the following order: a. at least 90% of the natural persons depositors with minor deposits; and, b. At least 90% of legal persons depositors with smaller deposits. 6 other deposits for amounts that exceed the value of the insured, in accordance with the regulations issued by the Board on policy and monetary regulation and financial, in the following order: a. the remaining people natural depositors with minor deposits; and, b. The remaining persons legal depositors with smaller deposits. 7. the rest of the liabilities by funds collected by the financial institution under arrangements not covered by the numerals above, with the exception of deposits of those with loans or other assets linked to the entity in liquidation;

8. the values paid by the Corporation for insurance of deposits and liquidity fund; 9 that is due for taxes, fees and contributions; 10. legal costs caused in the common interest of the creditors; 11. the providers of the financial institution, up to an amount equal to the deposit insurance; and, 12. Other liabilities, according to the order and form determined in the Civil Code, and the unclaimed values numerals above, within three months of being notified of the call charge.

The remnants of financial institutions and private entities from the financial sector people and solidarity, in case if any, after granted the administrative expenses incurred by the State, interest generated on the liabilities referred to in the preceding article of this code and the corresponding sanctions, from the date of the resolution of compulsory liquidation they will be delivered to the shareholders or members, administrators, people natural and legal related, both for their actions and any other type of credit. The order of priority of payments provided in this article may not be modified in any way, under penalty of embezzlement in the terms of article 278 of the Integral Penal organic code. Article 316-Unclaimed during the liquidation values. The values that have not been claimed within the period specified in the liquidation of a financial institution, may be used for the payment of the debts in the order established in the preceding article. Article 317.-Values not claimed after the liquidation. Monetary values have been unclaimed concluded the liquidation shall be deposited by the liquidator in the single national treasury account. Assets will be transferred to the entity that is responsible for the real estate management of the State, for disposal. Article 318.-Completion of the liquidation. Concluded the process of liquidation, the liquidator shall be the reconciliation of accounts and accounting of liquidation balance sheet, as well as the final report of the settlement, which will be submitted to the inspection body and announced to the shareholders or partners outstanding, in accordance with the rules it issued by the inspection body. At the close of the liquidation watchdog will have the extinction of the entity and shall exclude the financial institution of the public land registry.

Section 15 of the deposit insurance, liquidity Fund and Fund of


Private insurance article 319.-Administration. The deposit insurance of financial solidarity and popular, and private sectors, will be managed by the deposit insurance corporation, liquidity Fund and Fund of private insurance. Article 320.-Obligation. Financial solidarity and popular and private sectors entities are obliged to participate with contributions and contributions to the deposit insurance and liquidity Fund and guarantee mechanisms. Article 321.-Management of resources. The deposit insurance resources will be managed through independent trusts administered by the Central Bank of Ecuador, whose constituent will be the deposit insurance corporation, liquidity Fund and Fund of private insurance.

56 - Second supplement - official record No. 332 - Friday, September 12, 2014 article 322-deposit insurance. The deposit insurance will protect limited deposits the solidary and popular and private financial sectors entities authorized by the respective control bodies, in the form of current accounts, savings, term deposits or other legally accepted forms, in accordance with the conditions referred to in this code for the insurance. Article 323.-Exclusion of insurance. Will not be protected by the deposit insurance: 1. the deposits made by individuals linked directly or indirectly to the financial institution, as established by this code;

2. deposits in the same body of shareholders, administrators and members of the Board of Trustees of a popular or solidarity-based financial entity;

3. the protected amount excess; 4. deposits in offices abroad; 5. obligations issued by financial institutions on the basis of provisions of the securities market law; and, 6. Deposits that do not comply with the conditions laid down in this code. Article 324-the deposit insurance trusts: the deposit insurance corporation, liquidity Fund and private insurance fund shall constitute the following trusts independent, the Central Bank of Ecuador, with the resources that each sector entities to contribute: 1. trust of the deposit insurance of the financial Private Sector entities; and, 2. Trust of the Popular and Solidary Financial Sector entities deposits insurance. Article 325.-Resources of the deposit insurance. The deposit insurance nutria with the following resources, in that each financial sector: 1. contributions that entities in solidarity, and popular, and private financial sectors in accordance with the provisions of this code;

2. the performance of the investments and liquid profits of each fiscal year of the insurance of deposits;

3. donations received; 4. those coming from loans or contingent lines obtained for the financing of their activities; 5. those coming from loans between deposit insurance trusts; and, 6. The remnants referred to them in article 315.

The deposit insurance resources are public in nature, do not form part of the General budget of the State, are unattachable and may not be affected by the obligations of taxpayers. Its trust operation shall be exempt from all taxes. Creditors for loans or contingent lines may not make effective their claims against taxpayers whose liability is limited to their contributions. Article 326.-Contributions. Contributions to the deposit insurance and the frequency of your payment by the entities of private and popular and solidary financial sectors, shall be determined by the Board of policy and financial and monetary regulation. Contributions may be differentiated by each financial sector and institution, and shall consist of a fixed premium and a variable premium, differentiated by the risk of the entity. Article 327.-Investments. The deposit insurance resources will need to invest is observing the principles of safety, liquidity, diversification and profitability, subject to investment policies approved by the Board of policy and financial and monetary regulation. Article 328.-The amount protected. The amount protected by the deposit insurance for each natural or legal person shall be differentiated by each insured financial sectors. The insured amount of deposits in financial institutions private and popular and solidary, segment 1, shall be equal to twice the current exempt basic fraction of the tax income, but in no event less than USD 32.000,00 (thirty-two thousand dollars of the United States of America). The amount insured deposits to other segments of the Financial Sector people and solidarity shall be once the existing exempt basic fraction of the tax income, but in no event less than USD 11.000,00 (eleven thousand dollars of the United States of America). The total amount to pay for the insurance of deposits in each sector shall not exceed the total of the respective trust estate. Article 329-Execution. The right to the payment of the deposit insurance will be effective from the date of notification of the decision with the Declaration of compulsory liquidation of entities of popular and solidary, and private financial sectors by the inspection body to the deposit insurance corporation, liquidity Fund and Fund of private insurance. Article 330. Requirements and procedure for payment. The requirements and the procedure for payment of the deposit insurance will be determined, in each case, by the deposit insurance corporation, liquidity Fund and Fund of private insurance, in accordance with the standard issued for this purpose by the Corporation itself.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 57 by the payment of deposit insurance effected the deposit insurance corporation, liquidity Fund and private insurance fund acquires, instead of the creditor, the right of recovery of the credit for the amount paid. Article 331.-Subrogation of rights. The deposit insurance corporation, liquidity Fund and private insurance fund is subrogated in the rights of payment with respect to the values covered by deposit insurance. Article 332-Control. The trust of the insurance of deposits of the private financial sector will be subject to the control of the Superintendence of banks. The popular and solidary financial sector deposits insurance trust shall be subject to the control of the Superintendence of Popular and solidary economy. The General Comptroller of the State shall exercise control of the use of the public resources of the heritages of the respective trusts. Article 333.-Liquidity fund. The shortcomings of liquidity of financial solidarity and popular and private sectors entities will be covered by the Fund's liquidity, which will act as a lender of last resort and will grant loans of liquidity to financial institutions that meet the following conditions: 1. to maintain its technical heritage within the minimum levels required by article 190; and, 2. That you have managed its liquidity in accordance with the regulations laid down to the effect. Article 334-Liquidity fund trusts. It will constitute the following independent trusts: 1. trust of the liquidity fund of the private financial Sector entities; and, 2. Trust of the liquidity fund of Popular and Solidary Financial Sector entities. Article 335.-Resources of the Fund's liquidity. The liquidity fund nutria with the following resources, corresponding to each trust: 1. contributions that entities, in accordance with the provisions of this code; 2. the performance of the investments and liquid profits of each fiscal year of the Fund's liquidity; 3. donations received; 4. those coming from loans or contingent lines obtained for the financing of their activities; and, 5. Those coming from loans between the liquidity fund trusts.


The resources of the Fund's liquidity are of a private nature, are unattachable and may not be affected by the obligations of contributors, except for payment of credit operations through the one-stop discount window and the domestic investment of excess liquidity. The operation of the trust shall be exempt from all sorts of taxes. The creditors of the liquidity Fund for loans or contingent lines may not make effective their claims against contributors, whose liability is limited to their contributions. Article 336.-Contributions. Contributions to the Fund's liquidity and periodicity of its payment by the financial sector entities private and popular and solidary shall be determined by the Board of policy and financial and monetary regulation. The contributions will be differentiated by each financial sector. Article 337.-Investments. The resources of the Fund's liquidity should invest observing the principles of safety, liquidity, diversification and profitability within the framework of the objectives of economic policy and the preservation of the deposits. These resources may not be invest in bonds issued by the Ministry of finance. The members of the Board of of the insurance deposit Corporation, liquidity Fund and Fund of private insurance, will be responsible for failure to comply with the parameters described in the foregoing paragraph. Article 338.-Operations. The liquidity fund may perform the following operations active and passive: 1. active, consistent operations in: a. ordinary credits, which will be renewable business day, which will be awarded within a line of credit to cover deficiencies in the clearing houses of the Central payment system managed by the Central Bank of Ecuador;

b. extraordinary credits, which may not exceed the period of three hundred sixty-five days from its concession; and, c. The operations referred to in article 335.

2. passive operations: may consist in loans and securitizations; and, 3. Contingent lines with international financial institutions. The Fund's liquidity will be used, in addition, to cancel the obligations arising from the window of Rediscount and domestic investment of excess liquidity, in accordance with this code. Article 339.-Conditions. In active operations the following conditions shall be respected: 58 - second supplement - official record No. 332 - Friday 12 September 2014 1. Ordinary loans may be granted up to an amount equivalent to the contribution that each financial institution has made to fund liquidity, which will guarantee the respective operation. Access to these credits will be automatic and your interest rate will be established by the Board of policy and financial and monetary regulation. The Central Bank of Ecuador, in his capacity as trustee, inform the Agency of control of the execution of these operations; and, 2. Extraordinary loans may be granted to contributors financial institutions, provided that they maintain minimum solvency level determined by the Board of policy and financial and monetary regulation. The interest rate on these loans will be established by the Board.

The rules of eligibility, which will establish conditions which must comply with the financial institutions to access this type of credit must be issued by Board policy and financial and monetary regulation. Article 340.-Guarantee trust. Each of the entities of private and popular and solidary financial sectors must be a commercial guarantee trust with a portfolio of investments and portfolio that will have as a creditor beneficiary to the trust of the liquidity fund that corresponds. The minimum initial contribution to this trust will be at least fifty thousand dollars of the United States of America $ 50,000.00 (fifty thousand dollars of the United States of America) for the entities of the financial sector private, and on every occasion that requires an extraordinary credit of liquidity, the entity must provide adequate guarantees for an amount not less than 140% of the amount of the extraordinary credit , in accordance with rules issued by the Board of policy and financial and monetary regulation. The minimum initial contribution to this trust for popular and solidary financial entities, shall be determined by the Board of policy and financial and monetary regulation. Article 341-Exhibition. The total exposure of the resources contributed to the Fund's liquidity by concept of all active operations granted to a financial institution that are maintained in force may not exceed 30% of its assets, or the equivalent to 100% of the technical heritage of that financial institution. Article 342.-Control. The financial sector liquidity fund private accounts will be subject to annual verification of an external audit previously qualified by the Superintendency of banks, without prejudice to the powers of the institution to control them. Popular and solidary financial sector liquidity fund accounts shall be subject to annual verification of an external audit previously qualified by the Superintendency of Popular solidarity, economy without prejudice to the powers of the institution to control them.

Article 343.-Return of resources. The resources provided by financial institutions to the liquidity fund will be returned in the following cases: 1. Exclusion and transfer of assets and liabilities; 2. voluntary or compulsory liquidation of the entity; and, 3. The excess of the contribution in the case of mergers. Article 344.-Object of the Fund of private insurance. They will be protected by the coverage which is determined in this body of law, members of the public and private sectors that have existing policies, with all of the cancelled premium, in the system of private insurance companies. Private deposit insurance cover within the amount established by the Board, the value of the outstanding claims of payment to the date of the compulsory liquidation. Article 345.-Exclusion of insurance. Will not be protected by the guarantee of private insurance coverage: a. persons who have been sentenced for crimes of drug trafficking or money laundering; and, b. People who have policies with insurance companies that are not legally constituted in the Ecuador.

Article 346-Protected amount. To determine the amount protected by the coverage and return to the insured or beneficiary, be counted all of the policies that register each person natural or legal, public or private, in the company of the system of private insurance, the date of the beginning of the compulsory liquidation by the inspection body. Article 347.-Coverage. The Fund of private insurance will activate the notification that makes the body to the Corporation, with the Declaration of compulsory liquidation of a company of the private insurance system. Receipt by policyholders or beneficiaries, of the values paid by the Corporation, will produce the subrogation of the right in favour of it, of the rights of the creditor against the insurance company subjected to the forced liquidation process. Resources that are recovered by virtue of this subrogation, will join the Fund of private insurance. Article 348.-Private insurance fund trust. For the implementation of the insurance guarantee corporation shall constitute a Fund through a commercial trust that will be controlled exclusively by the Court of audit, for the exclusive purpose of meet the purposes provided for in this law. The Fund's assets shall be unattachable and may not be affected by the obligations of contributors. The Constitution and operation of the Fund shall be exempt from all sorts of taxes. The creditors of the Fund by second supplement - official record No. 332 - Friday, September 12, 2014 - 59 loans or contingent lines may not make effective their claims against contributors, whose liability is limited to their contributions. Article 349.-Resources of the Fund of private insurance. The Fund of private insurance, shall constitute the following resources to be considered public: a. the contribution of 1.5% on the value of net premiums of direct insurance, which the system of private insurance companies, and the proportion of the contribution given in the article 67 of the General Law of insurance;

b. the performance of investments and liquid profits of each fiscal year of the Fund of private insurance;

c. donations received; and, d. Those coming from loans or contingent lines


obtained for the financing of their activities. The resources of the Fund shall invest observing the principles of security, liquidity diversification and profitability and framed in investment policies approved by the Board of Directors. The resources of the Fund may not be used to cover administrative expenses or for payment of investment in fixed assets of the Corporation. Article 350-Imprescriptible. Contributions and interests shall be unattachable and may not be subjects of any precautionary measures to restrict its availability. The contributions that should be private insurance companies may be debited accounts that remain in the financial system entities, prior request of the legal representative of the Corporation. Article 351-Audit and verification. The Fund of private insurance will be subject to annual verification of an external audit by control body, controlling body may at any time check the audit reports which are presented.

Section 16 of the stealth and reserve Article 352. protection of information. The personal data of the users of the national financial system lie in the entities of the system and their access are protected, and can only be delivered to the holder who authorizes this or by provision of this code. Article 353-Stealth and reserve. Deposits and other catchments of any nature that receive entities of the national financial system subject to stealth, so it cannot be provided any information relating to such operations, but its holder or who has been expressly authorized by him or represent you who legally.

Other operations are subject to booking and entities of the national financial system only they can make them known to who proves a legitimate interest and always is not foreseeable that the knowledge of this information may cause prejudice to the client. Entities of the national financial system, in order to facilitate processes of conciliation, will give access to detailed knowledge of previous operations and its antecedents to the firm of external auditors contracted by the entity, which will also be subject to the secrecy and reserve. Entities of the national financial system will be able to present previous operations in global terms, not personalized or biased, only for statistical purposes or information, when there is a public interest. They can also provide general information regarding the behavior of customers in particular, prior authorization, for credit assessment purposes, to I required - lie of another financial institution or commercial establishments approved by customers, without this implied - that faculty disclose individualized transactions. There will be no reservation on the total or partial termination of active operations, so the kind of payment and terms, compensation, cancellations, and prescriptions may be made public. Stealth or reservation shall not apply to entities of the public sector resources. Article 354-Exceptions. Do not apply the provisions of the preceding article for the delivery of the following information requested to the inspection bodies or entities of the national financial system: 1. background relating to operations carried out by those who are party or be investigated in cases which are under the knowledge of a judge or the General Prosecutor of the State;

2. the data of the holder of current accounts closed by twist of checks without funding, required by the legitimate holder of the checks;

3. any information required by the inspection bodies and the service of internal revenue, within the scope of its competence;

4. the information required by the Board on policy and monetary regulation and financial, which will be channeled through the inspection body;

5. the information that the control bodies must be delivered to publicize to the public the financial and patrimonial situation of financial institutions;

6. the required reports to organisms of control, within the scope of their competence, by Governments or competent authorities of countries with which the Ecuador hold reciprocal agreements and legitimate - celebrated mind to fight crime, under the terms of these agreements;

60 - Second supplement - official record No. 332 - Friday 12 September of 2014 7. The financial information that constitute Exchange with banking, financial and tax from other countries supervisory authorities, provided that there is reciprocal, existing and legitimately concluded; agreements and, 8. The other laying down the law. The information is delivered only will be used for the purposes justified by the requesting institution. The delivery of this information shall be carried out with equal protection of secrecy and reserve; Therefore, the requesting this information assume the responsibility inherent in the stealth and the reserve. The transfer of this responsibility does not apply in the case of paragraphs 6 and 7. The violation of the secrecy and reserve shall be punished as provided for in this code, without prejudice to the criminal proceedings to which any place. Article 355.-Non-disclosure of information. Any natural or legal person who becomes aware of information submitted to stealth or reservation may disclose it in whole or in part. Failure to comply with these provisions shall be punished by this code, without prejudice to the respective criminal responsibility. Article 356.-Obligation of denunciation. When the control bodies, shareholders, administrators or officials of institutions of the national financial system are aware of evidence of the Commission of a crime related to the activities of financial institutions, shall be required, then, to report them to the Office of the Attorney-General.

Section 17 of the credit article 357.-credit data records data record. The credit data register is in charge of the National Directorate of registration of data public. The National Directorate of registration of data public is obliged to administer the credit database and can generate reports of credit references form accurate and updated, in accordance with the law. Article 358.-Information for registration. Credit information held by financial institutions will be delivered to the credit data register through the respective control bodies, which establish policies, form and its periodicity. Entities of the national financial system shall only provide credit data logging data records of the information concerning the credit history. It is forbidden to give this information to any other entity that other than those determined in this code. The control agencies and the internal revenue service will have access at all times, automatically, in the formats and structures requested to credit data contained in the register of credit data, to fulfil the duties and obligations set forth in the Constitution and the law.

Article 359.-Delivery of information. Entities of the national financial system, are required to supply the credit data register, through control bodies, the information required to keep it updated. This information will be previously validated by the superintendencies, in the scope of their powers, before its delivery to the National Directorate of registration of data public. In order to comply with this obligation, the entities must observe the following: 1. provide the information within the time limit determined by the control bodies; 2 deliver special reports to put right mistakes that have been committed, in order to achieve this record debugging;

3. the information submitted must contain, at least, the following identification data, where who has hired the credit is a natural person: name and full surname, number of identity card of identity and citizenship or passport and in case of a legal person shall be recorded social reason and the single registration of taxpayer (RUC) number. With respect to the information concerning the credit operation, the following data will be required for both natural persons and legal persons: date which originated in obligation, the date from which it is payable, payment dates, the amount of the capital at the date of the report, the amount of interest accrued to the date of the report the amount of interest from mora to the date of the report, and the State credit, stating in a way it is expressed if with regard to such credit has been raised administrative claim or has started legal proceedings; and, 4. Not to give the detail of values corresponding to concepts that have not originated in direct credit business and that not have been requested expressly by the customer.


Non-financial entities that grant credit above the limits determined by the Board, are required to comply with the provisions of this article and to provide the information directly to the National Directorate of registration of data public. Article 360.-responsibility. The National Directorate of registration of data public is responsible for the implementation of jointly authorized by the Superintendence of banking and insurance, Popular and solidary economy, and companies, models used to generate credit reports.

Chapter 4 industry financial public section 1 establishment, denomination, organization and liquidation article 361-creation. Public financial sector entities will be created by Executive Decree, which, at least, will it be expressed: Second Supplement - official record No. 332 - Friday, September 12, 2014 - 1-61. Denomination; 2. object; 3 capital authorized, subscribed and paid; 4 heritage; 5 Administration; 6. duration; and, 7. Domicile. Article 362-Denomination. The denomination of the public financial sector entities will be differentiated from other financial institutions, and make visible their public nature. Article 363.-Organization. The public financial sector entities will be organized in accordance with the definitions and requirements determined by the Board of policy and financial and monetary regulation. Article 364.-Liquidation. The President of the Republic by Executive Decree, for reasons of public interest, may order the closure of the public financial sector entities. As a result of the closure provisions will proceed to its voluntary liquidation in accordance with the provisions of this code.

Section 2 nature, purpose, duration, status and address article 365-nature. The public financial sector entities constitute as legal persons of public law, with administrative, financial and budgetary autonomy. In the exercise of their activities and financial services will be governed by the provisions of this code, emitting the Board, control agencies, their respective directories, those applicable to financial institutions and otherwise, apply the legislation governing public institutions. Article 366-Object. The object of the public financial sector entities will be determined in the Executive order for its creation, which is set to its status of public financial institution, the type of entity and segments and financial activities which are going to devote. Article 367-Heritage. The heritage of the public financial sector entities is self-contained and will be made up of the goods to be determined by the corresponding Executive Decree. Article 368.-Duration, social status and place of residence. The public financial sector entities will have the duration and address established in the respective social status.

The social statute will contain the overall institutional structure of the entity and shall be known and approved internally by its Board and subsequently by the Superintendency of banks. The content of the social status shall be regulated by the Superintendency of banks.

Section 3 of the purposes and objectives article 369.-purpose and objectives. Public financial institutions will exert financial activities of sustainable, efficient and equitable manner. The financing granted will seek to meet among others, the following objectives: to) the change in the pattern of specialization of the national economy; (b) innovation and entrepreneurship to increase intensity technology and knowledge; (c) the increase of domestic production and food sovereignty; (d) the selective replacement of imports; (e) export with emphasis on those of added value; (f) projects of the autonomous governments; (g) the mostly low-income housing; (h) the economic inclusion first, single mothers, people in human mobility, disability, youth and other persons belonging to groups of priority attention.

Article 370-Trusteeship. The public financial sector entities will have the faculty to act as administrators Trustees.

Section 4 of the Government and administration article 371.-structure. The Government of the entities that make up the public financial sector will be integrated by: 1. directory; and 2. General management. The organizational structure of the entity shall be recorded in the respective normative act, which will be adopted in accordance with the organic law of the public service. The members of the Board and the general manager will be considered the entity administrators.

62 - Second supplement - official record No. 332 - Friday, September 12, 2014 article 372.-policies public. Public policies governing the exercise of the activities of the public financial sector entities will be dictated by the Board's policy and financial and monetary regulation. Article 373-Directory. Each public financial institutions will have a Board constituted in the following manner: 1. A permanent delegate of the President of the Republic, who shall chair it and shall have a casting vote; 2. holders of three Secretaries of State whose scope of activity is directly related to the purposes and objectives of the respective financial institution, or their permanent delegates; and, 3. The head of the Secretariat of State in charge of economic policy or its permanent delegate. The President of the Republic in each Executive Decree of creation will establish what Ministers or Secretaries of State will participate in each directory, in accordance with this article. The public financial institution shall notify the respective Superintendence of the designation of Directors, legal representatives and internal auditors and external, within within eight days of their appointment. Article 374.-Designation of delegates. Permanent delegates will be designated by the relevant administrative act; prior to start their functions, must have the qualification of suitability issued by the Superintendency of banks, crediting the following requirements: 1. Ecuadorian citizen; 2 professional third-level in economics, finance, banking, law, administration, development or related; 3. professional experience in related areas of at least five years; 4. not be in conflict of interest; and, 5. Meet the requirements to be official or public servant. It shall act as Secretary of the Board, the person designated for this purpose. Article 375.-Functions of the Board. Directory of public financial institutions will have functions as follows: 1. dictate the entity management policies and monitor their implementation; 2. know and authorize the contracting of loans or operations on the national or international market, by the limits authorized general manager;

3. know and solve on the content and implementation of communications of the Superintendency of banks relating to provisions, observations, recommendations and initiatives on the implementation of the entity;

4. establish the levels of approval of active and contingent operations; 5 pass the active operations and contingent that individually exceed 2% of the technical heritage, and their warranties, and learn about passive operations exceeding that percentage;

6 analyze and approve the integrated risk management policy and to monitor its implementation; 7 approve and give opinion, under its responsibility, on the financial statements and the internal and External Auditors reports qualified by the Superintendency. The opinion of the Board should be sent to the inspection body according to the instructions this determined;

8 meet and resolve ultimately administrative appeals against acts of the directory itself and the General Manager;

9 approve the social status and its amendments; 10 approve the Organic Statute for the entity processes; 11 approve internally the budget, prior to its submission to the Board; 12 approve internal regulations; 13 designate to the General Manager of the entity; 14 appoint auditors internal and external valuation experts and the firm rating of risks subject to prior evaluation by the Superintendency;

15 to appoint a Secretary of the Board; 16 reporting you required by the Board and the control bodies; and, 17. Others assigned by law. In the case of the public financial institution in charge of the financing of the autonomous governments, the functions of the numeral 14 will be resolved by the General meeting of shareholders. Article 376.-Functions of the President. The Chairman of the Board shall have the following functions: 1. convene and preside over the sessions of the Board and sign with the Secretary the corresponding minutes; 2 inform the Board on the implementation and application of the decisions taken; and, second supplement - official record No. 332 - Friday, September 12, 2014 - 3-63. Exercise other functions that correspond, in accordance with this code and the Statute of the entity.


Article 377-General Manager. The General Manager of the authority shall be appointed by the Board of Directors and will be free appointment and removal. You must meet the following requirements: 1. Ecuadorian citizen; 2. professional title of fourth level in economics, finance, management, law or related areas; 3. professional experience in related areas of at least five years; 4. not be in conflict of interest; and, 5. Meet the requirements to be official or public servant. General Manager must meet suitability rating required for delegates to the directory. Article 378.-Functions of the General Manager. The General Manager shall exercise the following functions: 1. represent legal, judicial and out-of-court to the entity; 2 remember, run and celebrate any act, fact, agreement, contract or legal business that will lead to the fulfilment of the purposes and objectives of the entity;

3 comply with and enforce the resolutions of the Board; 4 direct operational and administrative management of the entity; 5 prepare the budget, plans, and regulations of the Organization and put them to the Board for consideration; 6 submit the reports required by the Board; 7 exercise coercive jurisdiction on behalf of the entity; and, 8. Others assigned by the law and the Statute. Article 379.-Administrative management. The administrative management of the public financial sector entities will be decentralized. Article 380.-Staff. Officials and servants of the public financial sector entities will be subject to the provisions of the organic law of public service and labour code, as the case may be.

Section 5 of the capital and reserves article 381.-Capital and reserves. Capital and reserves of the entities that make up the public financial sector are indicated in the corresponding social status, and may not be lower than those determined in the regulations that dictate the Board for the purpose. Article 382.-Capital increase. Capital subscribed and paid public financial institutions will increase by directory layout or standard of general policy and financial and monetary regulation Board issued. When resources of the General budget of the State to commit to subscribed and paid capital gains, will require prior opinion of the governing body of the public finances. The capital increases will be notified to the Superintendency of banks for the purpose of verification and control.

Section 6 of the public financial sector article 383.-operations operations. Public financial institutions may be active, passive, contingent and service operations determined in article 194, prior authorization from the relevant inspection body. The identification of operations shall include in the authorisation that issued by the inspection body, according to the provisions of article 144. To perform those operations that are not determined in this code must obtain the authorization of the Board of policy and financial and monetary regulation. Public financial institutions, before the beginning of operations, must obtain the respective operating permit, in accordance with the procedure established for the purpose of the inspection body. Article 384-Investment in the capital of financial institutions private, insurance and securities. Public financial institutions having investments in the capital of financial institutions in private law, of insurance and securities by a percentage greater than 50% of the capital, to the date of entry into force of this code may maintain such investments in accordance with the regulations issued by the Board of policy and monetary regulation and finance in which case should consolidate their financial statements.

Section 7 of the prohibitions and exemptions article 385-prohibitions. It is forbidden to public financial institutions: 1. carrying out credit which is not framed in public policy prepared for the entity or in regulations issued by the Board on policy and monetary regulation and financial;

64 - Second supplement - official record No. 332 - Friday 12 September 2014 2. Request security for operations whose amount is lower than that determined for the purpose by the Board;

3 forgive debts; 4. donate resources to persons of private law. Except this ban the use of resources of the General budget of the State within the framework of the provisions of article 104 of the organic code of planning and public finance; and, 5. The others who set this code. Failure to comply with the prohibitions laid down in paragraphs 1, 2 and 3 will be sanctioned as serious violations and failure to comply with paragraph 4 shall be punished as a serious offense. Article 386-Privileges and prerogatives. Public financial institutions and the Central Bank of Ecuador, in which appropriate, shall enjoy the following exemptions: 1. l. Payment in their acts and contracts of all kinds of tax, municipal and special taxes with the exception of the tax value added services;

2. for payment of taxes by the issuance of securities and financial obligations; 3. of the tax of alcabala, register and their respective additional by the domain of real estate transfers which involved; and, 4. The others which the law grants to the institutions of public law. Public financial sector entities shall enjoy the benefits and privileges of civil, commercial, procedural and of any other nature that apply to financial institutions that operate in the country. The prescription of actions for the recovery of debts, operate in double the time set for the prescription of actions in general.

Section 8 control and internal audit article 387-Control. The Superintendency of banks will be responsible for the control of the financial activities of the entities of the public financial sector, with the exception of the public financial institution referred to in the law of Economics Popular and solidarity, that will be in charge of the control of the Superintendence of the Popular and solidary economy. The Superintendent of the Popular and solidary economy, will be responsible for the control of the financial activities of entities of the Financial Sector people and solidarity. Where the inspection body presumed the Commission of a crime of public criminal action, it will report the background to the Attorney General, district attorneys or fiscal agent, as appropriate. If the inspection body presumes the Commission of the crimes of embezzlement and illicit enrichment, it shall inform the General Comptroller of the State to perform the audit that were the case. Article 388-Areas of control. The fields of the Superintendents and the General Comptroller of the State control will be expressly differentiated, in accordance with the provisions of this code, avoiding conflicts of competence. Acts of control, control, monitoring and auditing, as well as inspections, tests, assessments, recommendations and results obtained outside the scope and competence of each control body, shall be null and void, lacking legal validity. The General Comptroller of the State will exert external control in accordance with its law exclusively in the use of public resources in the administration of the public financial sector entities. This control has no scope or covers the financial activities that runs the public financial sector. Internal control shall be carried out by the internal auditor, appointed by the Comptroller General of the State. Conflicts of competence in the field of control of public financial institutions shall be resolved by the Constitutional Court.

Chapter 5 private financial Sector section 1 Constitution, denomination, organization and liquidation article 389.-Constitution. The private financial sector entities constitute by the Superintendence of banks as joint-stock companies, in accordance with the present Code, with a minimum of two promoters. It may constitute a financial institution by initiative of the promoters concerned, founding or promoting public-private. Article 390.-Company name and trade name. The creation of a new private financial institution, will require first having the social reason, which will have to be reserved and authorized by the Superintendency of banks. The company selected by the promoters shall ensure its nature and individuality, in order to avoid confusion. The corporate name shall contain the kind of entity that is intended. Without prejudice to the social reason authorised, the entities may use trade names authorized by the Superintendency of banks. The trade names may only be used by entities authorized by the Superintendency of banks.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 65 article 391.-requirements for the Constitution. Developers intending to set up a private financial institution must, in the formats determined by the Agency's control, the following: 1. request signed by the promoters, his legal representative or


representative; 2 certified copy documents proving identity, suitability, responsibility and solvency of the promoters;

3 document that demonstrates the reservation of the name or business name; 4. the technical study, signed by a professional in the field that contains at least the following: economic and financial feasibility of the private constitute entity and market analysis that demonstrates the feasibility of its Constitution and inclusion, in accordance with the capacity and chosen specialization and its impact in other entities of the system;

5. the draft contract of Constitution, which should include the social status of the entity, whose corporate purpose must be specific, in accordance with the models of contract of Constitution and social status regulated by the Superintendency of banks; and, 6. Credited on the account of integration of capital, through proof of deposit in any Bank, at least 50% of the minimum capital required for the Constitution. This deposit will be under a modality that interest-bearing.

Legal persons, natural persons, acting as a promoters, as well as its partners or shareholders will be qualified when their contribution to the lender as it is 6% or more of the capital. Article 392.-Minimum Capital for the Constitution. The private financial institution's capital is divided into shares. Capital subscribed and paid minimum for the establishment of an entity of the private financial sector, is: 1. banks: USD 11' 000.000.00 (eleven million dollars of the United States of America); and, 2. The minimum capital and its composition of financial services entities will be determined by the Board of policy and financial and monetary regulation.

Bank capital contributions must be paid completely in cash, unless the Superintendency of banks obligations to be capitalize by offsetting of credits. The Board will annually update values established in paragraphs 1 and 2 of this article, using for effect variation of the index of prices to the consumer of the immediately preceding year. Article 393.-Procedures for the Constitution. Once submitted the requirements determined in article 391, the Superintendency of banks will proceed to do the verification, analysis, validation, evaluation and qualification requirements and procedure of opposition by third parties, within the period of 180 days, and require non-objection of the Board's policy and financial and monetary regulation on the impact of the new entity in the system. The Superintendent may require clarification, additional documentation or other information supplementing the requirements for the Constitution. Article 394.-Reasons for denying the Constitution. The Superintendence of banks may deny the Constitution of a private by the following causes financial entity, if they had not been remedied: 1. breaching the requirements of article 391 for the Constitution; 2. for moratorium declared in accordance with the provisions of article 14 paragraph 26; 3. the objection of Board policy and financial and monetary regulation on the establishment of the new entity; and, 4. Have arisen opposition by a third party, accepted by the Superintendency of banks. Article 395.-Approval of the Constitution. Fulfilled the formality of Constitution, the control body will approve the Constitution of the new private financial institution and have the marginalization and corresponding records. The new private financial institution will have the period of six months, counted from the date of approval of the Constitution, to implement all the actions that are necessary to complete the process of Constitution and initiation of activities. For such purposes, you must obtain the necessary physical infrastructure, get the qualification of its directors and their legal representative, having minimal organizational structure, including the technological factors, processes and human resources necessary for its operation, operation plans, internal controls, according to activities and markets in which project to participate and the risks that intends to take , in accordance with standards issued by the Superintendency of banks. If the entity does not implement all the actions that are necessary to complete the process of Constitution and initiation of activities within the period indicated, the approval of Constitution will be no full-fledged value, except that, for duly justified reasons, the Superintendency of banks, before the expiration of the time limit, extend it once for six months. Article 396.-Authorization of financial activities. The private financial institution shall inform the Superintendence of banks the fulfillment of the actions required for its Constitution and initiation of activities and request authorization. The inspection body shall verify the observance of such actions, the payment of 100% of the capital subscribed and paid, and on the basis of their fulfilment, extend authorisation as laid down in this code.

66-second supplement - official record No. 332 - Friday, September 12, 2014 the authorization shall be recorded in administrative act motivated, which will determine are the activities and financial operations that may be exercised by the private financial institution, in accordance with their capacity and expertise. The period of validity of this authorization shall be equal to the length of the entity and can be renewed to the extent that the period of duration of the entity is expanded. The authorization may not be transferred under any title and may be revoked by the Superintendency of banks by the causes that sets this code. The authorization will take effect from the date of its notification to the private financial institution. For the effect must, moreover, be registered in the public registry. Article 397.-Operating permit. Notified the authorisation of financial activities, the private financial institution shall inform the Superintendency of banks operations start date, so that the inspection body issuing the operating permit. The operating permit shall be issued for each of the operational offices that keep the entity and must be exhibited to the public in each of them.

Section 2 nature, purpose, duration, status and address article 398-nature. The private financial sector entities constitute as legal persons of private law. In the exercise of their operations and financial services they are governed by the provisions applicable to financial institutions and own. Article 399.-Shareholders. Private financial entities must have at all times at least two shareholders. May not be owners, directly or indirectly, from actions of the entities of the financial sector private, as follows: 1. the entities of the private financial sector, with the exception of investments in subsidiaries or affiliates that they conform a financial group;

2. the private legal persons whose social object is communication with national coverage, as well as its directors and major shareholders;

3. the entities of the financial sector people and solidarity, with the exception of the provisions of article 443; 4. the natural or legal persons who are people with heritage property with a bank only private influence may be another private bank shareholders while not become persons with patrimonial property with influence in the other entity;

5. natural persons who have been convicted in a judgment rendered on charges of embezzlement, money laundering and financing of crimes such as terrorism;

6. natural and legal persons, managers and people with heritage property with a private financial institution declared in compulsory liquidation influence; and,


7. the others that point to the law. Natural or legal persons that hold shares in companies outside the financial sector only may be shareholders directly or indirectly from a financial institution to below the defined criteria to be persons with patrimonial property with influence. Watchdog will qualify the suitability, responsibility and solvency of persons with patrimonial property with influence, as well as legal persons partners or shareholders individuals, when his participation in the capital of the financial institution is 6% or more. Article 400.-Social object. The purpose of the private financial sector entities will be determined in their social status, which is set to the type of entity and the activities to which it will devote. The social object will be specific to the type of entity recognized in this code and may not contain any activities other than banking business. Article 401-Duration, status and address. The private financial sector entities will have the duration and address established in the social statute. The social statute will contain the overall institutional structure of the entity and shall be known and approved internally by the General meeting of shareholders and, subsequently, by the Superintendency of banks. The statute provide that the capital is divided into several classes of shares, with special for each class rights, without that you can exclude any shareholder participation in the profits, the nominal value of the shares which may be a hundred or multiple of one hundred is also determined. The reform of the social statute shall be approved by the General meeting of shareholders and, subsequently, by the Superintendency of banks.

Section 3 of the purposes and objectives article 402.-purposes and objectives. The entities that make up the private financial sector, shall have as aim and objective financial activities, which may exercise them, prior authorization from the State, in accordance with this code, preserving the deposits and serving the requirements of financial intermediation of citizenship.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 67 section 4 in capital, reserves and profits article 403.-Capital. Private financial institutions will increase its authorized capital, in accordance with the provisions of this code. Capital subscribed and paid private financial institutions will increase in accordance with the regulations issued by the Board of policy and financial and monetary regulation. Resources for the payment of the capital subscribed and paid only can come from: 1. contributions in cash or by offsetting of credits; 2. by capitalization of debts by beat, previous assessment made by at least two rating companies;

3. of the surplus of the legal reserve; 4. of undistributed profits; and, 5. Of special reserves, provided that they were intended for this purpose. The capitalization by compensation of credits and loans to expire, subject to the prior approval of the General meeting of shareholders, require the authorization of the Superintendency of banks. Shareholders who are registered as such in the book of shares and shareholders of the entity, the date of the publication by the press the call to the capital increase, may exercise the preferential right to subscription of shares, as well as to receive the certificate of preference. Article 404.-Legal reserve fund. Private financial institutions, should maintain the legal reserve fund under the terms of article 168. Article 405.-Profit sharing. The profits generated by private financial institutions will be distributed pursuant to the General meeting of shareholders, attending by the Superintendence of banks, and in accordance with the regulations of the Board of policy and financial and monetary regulation, provided that the following conditions are met: 1. all provisions, adjustments and required reserves are constituted , including those relating to the payment of taxes and profits for workers;

2. the compliance with the limits laid down in the provisions relating to solvency, liquidity, technical heritage, bonding, assets, contingent and credit limits.

Entitled to utilities shareholders appearing as such in the book of shares and shareholders, to date have been declared.

Article 406. Anticipated dividends. The directory of a private financial institution can solve the payment of advance dividends, which consist of the profits generated by the entity before the end of the fiscal year. For anticipated dividends the entity must previously comply with the conditions required for the distribution of profits and authorization of the Superintendency of banks. The amount of the advance to be distributed dividends may not exceed 40% of accumulated earnings for the year in progress, or be greater than 80% of the amount of undistributed profits from previous years. The maximum value for the deal will be the lowest value of the two options. A private financial institution managers authorizing the payment of dividends anticipated in contravention of the provisions of this article, shall be jointly and severally responsible for such payment and reimbursed to the authority, of its own expense, the amount of distributed dividends. The Superintendency of banks will be effective this obligation through the exercise of coercive jurisdiction.

Section 5 of the Government and administration article 407.-structure. The Government of private financial institutions will be integrated by: 1. General meeting of shareholders; 2. directory; and 3. Legal representative the Board members and legal representatives will be considered the entity administrators. Administrators shall not be considered to judicial prosecutors acting on behalf of the entity. Article 408.-General meeting of shareholders. The general Board, formed by legally convened and gathered, shareholders is the supreme body of administration, with powers to resolve all matters relating to the social business and to make the decisions that it deems suitable in defense of the entity and its depositors and creditors. Its functions shall include: 1. approve the reports of the Board on the progress of the business; 2. to approve the financial statements and review these, under his responsibility; 3 approve the distribution of profits; 4 send to the control body reports indicated in the preceding, in accordance with standards issued by;

5 approve authorized capital increases;

68 - Second supplement - official record No. 332 - Friday 12 September 2014 6. Appoint the Auditors, internal and external; 7 approve the annual reports of the internal and external auditors; and, 8. The other features that set this code. The general meeting of shareholders shall meet in the form and for the purposes determined in this article and the regulations issued for the purpose, within the ninety days following the close of each fiscal year. The Board also, if it is the case, you will know the report of the external auditor on the financial group. Any choice made by the general meeting of shareholders shall be by written ballot, whose ballot shall be recorded in the corresponding Act. Article 409-Directory. Each of the private financial institutions will have a directory, consisting of an odd number of members, with a minimum of five and a maximum of fifteen major directors, elected for a term of up to two years by the general meeting of shareholders, and may be re-elected indefinitely. The Board shall appoint in addition many alternate directors have few major, for the same period. For the designation of main and alternate directors of the Board of a private financial institution, ensure the right of the minority, in accordance with standards issued by the Superintendency of banks. The private financial institution will notify the inspection body the appointment of Directors, legal representatives and internal auditors and external, within within eight days of their designation. Article 410.-Functions of the Board. Directory of private financial institutions will have functions as follows: 1. meet and resolve on the content and implementation of communications of the Superintendency of banks relating to provisions, observations, recommendations and initiatives on the implementation of the entity;

2. analyze and approve the policies of the entity, control their execution, and the reports of risk; 3 approve the active operations and contributing individually to exceed 2% of the technical heritage, and its guarantees, and learn about passive operations exceeding that percentage;

4 approve the increases of capital subscribed and paid; 5 comply with and enforce the provisions of this code, the regulations of the Board of policy and monetary regulation, and financial, the regulations of the Superintendency of banks, the resolutions of the general meeting of shareholders and of the Board;

6 approve internal regulations;

7 appoint the legal representative; 8 designate valuation experts and the firm rating of


risks subject to prior evaluation by the Superintendence of banks;

9 opinion, under its responsibility, on the financial statements and the report of internal audit, which shall include the opinion of the auditor, concerning compliance with controls to prevent illicit activities, including money laundering and the financing of crimes such as terrorism. The opinion of the Board should be sent to the inspection body observing the instructions provided for this purpose;

10. present the reports that you are required by the agencies of control; and, 11. Others assigned by the respective social status. The members of the Board will be civil and criminally responsible for their acts and omissions in the performance of their respective functions and duties. Article 411-Failure of the directory. The failure of the directory shall be presumed when the quorum in two successive calls to Board meetings had not been completed and that had been reported in the statutory form to all members. In this case, will be its renewal; for this purpose, the legal representative, at the request of the inspection body, shall convene immediately to general meeting of shareholders to elect all the members, according to the respective Statute. Article 412-Removal of the directory. The members of the Board of a private financial institution may be removed at any time, by the inspection body by any of the following causes: 1. be in the impediments identified in article 258; 2 reluctance to abide by the provisions given by the inspection body; 3 alter or distort the financial statements; 4 obstructing the actions of control; 5. perform operations that promote or conduct illegal acts; 6. run serious acts that make you fear for the stability of the entity; and, 7. For any other reason determined in this code. The general meeting of shareholders within the period of three days, will convene session for the appointment of new directors; in case of failure to do so, the inspection body shall proceed to convene it.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 69 if once the period of thirty days from the date that watchdog ordered concerned removals, the financial institution not had modified its procedures or if the competent authority would not meet or did not take the relevant agreements, the compulsory liquidation of the entity will be available without further formality. Article 413.-Legal representative. The legal representation of the entity shall be exercised by the person or persons designated by the competent authority, in accordance with the provisions of the social Charter. The provisions of articles 258 and 412, will be applicable as appropriate. Article 414.-Functions of the legal representative. Without prejudice to the functions assigned to the social status and other legal obligations, the legal representative of a private financial institution will be required to: 1. inform the directory, at least monthly, and operations of credit, investments, passive operations, contingent on its assurances made by the same person or people linked together, which are greater than 2% of the technical entity patrimony. A copy of such report will be filed with the minutes of the respective session of the Board;

2 inform the directory, at the next meeting this famous, all communication from the Superintendent that contains comments, and when so required by, leaving evidence of this in the minutes of the meeting, which will consist, in addition, the resolution adopted by the Board of Directors. Certified copy shall be sent to the Superintendency of banks within the term of one day following the date on which it concluded the session.; and, 3. Inform the directory, at the next meeting this famous, all communication from the Board's policy and monetary and financial regulation, deposit insurance corporation and fund liquidity and Central Bank of Ecuador related to the activities of the entity.



Section 6 of the operations of the Financial Sector private article 415.-operations. Private financial institutions may carry out certain operations in the article 194 shall be previously authorized by the Superintendency of banks. To perform those operations that are not defined in this code, they must obtain the authorization of the Board of policy and financial and monetary regulation. Article 416.-Auxiliary services. Financial institutions in their operations may require auxiliary services provided by other non-financial corporations, in accordance with the provisions of this code.

Section 7 of article 417.-Grupo financiero financial groups. Means financial group to forming a private national bank owned subsidiaries or affiliates, provided for in this code. A financial group may not be composed of more than one national or by more than one auxiliary services of the banking and financial services company National Bank, engaged in the same activity. Financial institutions from abroad, subsidiaries or affiliates of National Bank, will also form part of the financial groups established in this article. A financial group shall be formed from the moment in which the Bank owns one or more of the designated entities in paragraphs that precede. Article 418-Prohibition to acquire shares. Subsidiaries and affiliated companies of the private financial system entities are not eligible to purchase or own shares of the Bank that makes head of financial group or of any entity of the financial group; They may not be shareholders or participate in the capital of legal persons who are shareholders of them, or they may invest in the capital's commercial legal persons operating in an area other than the financial. Article 419.-Presumption of financial group. It is presumed the existence of a financial group for all purposes set forth in this code, when the inspection body determined that between a Bank and financial services or ancillary services, societies determined in article 162, or with foreign entities carry out the activities provided for in article 194, there are relations of business, address or indirect property , or otherwise, with the national financial institution or its major shareholders. The configuration of these assumptions will make these companies or entities abroad, members of the financial group of the National Bank. Watchdog by standard will determine the criteria to brag about the formation of financial group. Article 420.-The financial group's activities. Entities that are part of a financial group may: 1. act jointly to the public; and, 2. Use equal or similar names that identify them to the public as members of the same group either retain the name they had before forming part of this group, in any case, should be added the words: "Financial group" and its denomination.

70 second supplement - official record No. 332 - Friday, September 12, 2014 financial group entities may not be commercial, financial or operations services together, in time conditions, prices, rates, amounts, guarantees and commissions different from that used in similar transactions with third parties. Article 421.-Responsibility of the head of group. The financial institution that makes group head be liable for economic losses of the members of the financial group up to the percentage value of its participation, which will sign a liability Convention with each of them, which undertakes to: 1. carry out capital increases that may be necessary at member institutions or if this is not possible all the facilities to give third investors subscribe to and pay for such capital increases; and, 2. Dispose of shares of other member institutions at the request of the Superintendent, or remember the sale or disposal assets of its subsidiaries, in order to make the capital contributions in the State that requires it.


Related responsibilities will be provided for expressly or shall be incorporated in the statutes of the parent entity of the investment. Article 422-Solvency, prudence and control of the financial group. Entities that integrate a financial group, as provided for in this section, individual and consolidated, will be subject to all the rules of solvency, prudence financial and control certain in this code and to the control of the Superintendence of banks. Article 423-Solvency of financial groups. For the determination of the solvency of financial groups, shall be deducted from the total technical patrimony of the head of group capital invested in its subsidiaries and affiliates. The Board will establish provisions that apply for consolidation or combination of financial statements of financial groups, effects of the direct participation of the parent company or its significant influence in institutions that are members, as well as establish other deductions from the total of matrix technical patrimony, from split accounting related to its subsidiaries or affiliates or the risks identified and not covered by them.

Section 8 of article 424-prohibitions prohibitions. It is forbidden to private financial institutions: 1. be a member of an entity in the financial sector people and solidarity; 2 grant credit operations in favor of its officers or employees, or their respective spouses, except as provided in article 215;

3. as determined in Article 255;

4 constitute taxes on their real estate, including those received in dation in payment, except that they have the prior authorization of the Superintendency; and, 5. The other laying down the law. The prohibitions referred to in the paragraphs 1, 2 and 3 shall be punished as very serious offences and determined in paragraph 4 shall be punished as a grave breach, without prejudice to the sanctions and remedies available and the nullity of the acts prohibited by this code.

Section 9 control and audit article 425-Control of the Superintendency of banks. The Superintendency of banks, will be responsible for the control of the private financial institutions. Article 426.-the internal and external auditor. Private financial institutions will have an internal auditor and external, in accordance with the provisions of title II, Chapter 3, section 8.

Section 10 of article 427-financial services entities financial services entities. Financial services institutions are the General warehouse, bureaux de change and development of the secondary mortgage market corporations. Article 428.-General. Financial services institutions must be constituted in the form of joint-stock companies, subject to the procedure indicated in this code for the Constitution of a private financial institution, and its legal life are subject to the provisions governing such entities. The purpose of these corporations will be specific to the type of entity. The provisions of this title relating to exclusion are not applicable to these entities and transfer of assets and liabilities, deposit insurance, and liquidity fund, but you shall apply for the entities of the national financial system in accordance with the regulations issued by the Board of policy and financial and monetary regulation. Article 429-Operations. Financial services institutions will exclusively be those specific operations authorized by the Superintendence of banks, in accordance with its corporate purpose. The definition and the actions that comprise the operations carried out by certain financial services entities in this article, shall be governed by the Board of policy and financial and monetary regulation.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 71 article 430.-certificates of deposit. The General warehouse may be issued titles values under the name of certificates of deposit, in the amount of up to fifty times its heritage. The General warehouse of deposit issued in dematerialized form or in physical form and in duplicate and with successive numbers, certificates of deposit. In the case of certificates in physical, the original title will be delivered to the depositor and retain copy, non-negotiable, store your annotation, registration and accounting. The General warehouse of deposit may not issue certificates of deposit in his own favor or its administrators, officials or employees. Any certificate of deposit may be transferred for the store that issued it neither of its administrators, officials or employees. Content and other features of the certificate of deposit will be defined by the Board of policy and financial and monetary regulation. Things that are deposited in the General warehouse of deposit, as well as the proceeds of sale or the value of compensation, in case of loss, may not be subject to embargo, abduction, retention or prohibition of disposal. But the certificate of deposit may be subject to such judicial orders. The actions derived from the certificate of deposit for the removal of the goods prescribed in the period of five years from the date of issue of the certificate. Article 431.-Responsibility of the General deposit stores. The General warehouse of deposit will be responsible for the preservation, custody and timely restitution of goods which have been deposited them. They will not be responsible for losses, losses or from failure of force majeure or unforeseen circumstances. The costs and risks of internal mobilization of goods and products are responsible for the General warehouse of deposit. The goods and products subject to the deposit shall be insured against the risks that the Board determines. If the goods or products have decomposed, the General warehouse of deposit, with intervention by the health authorities, may proceed to direct sale or destruction of those. Prior written notice to the depositor or to the last endorsee in property, in your case, fifteen days in advance, at least, the General warehouse of deposit may request the competent judge, the hammer of the goods selling when it has passed one year from the date of the deposit, and the cost of storage has not been satisfied, or where the goods are threatened perish or be destroyed for any reason. Goods or goods deposited, the proceeds of its sale, the value of the indemnity in case of loss, funds that have the General warehouse of deposit at the disposal of the holder of the certificate may only be retained by court order. Article 432-Ban. Financial services institutions can not grasp monetary resources of the public, except when issuing obligations, under the terms of the securities market law. Failure to comply with this prohibition shall be punished as a very serious offense.

Section 11 of article 433-services auxiliary services auxiliary. They are auxiliary financial activities, the following services: 1. banking software; 2 transactional; 3. for transportation of monetary species and values; 4. of payments; 5. for collection; 6. of networks and ATMs; 7. accounting; 8. of computing; 9. in possession of buildings intended solely for the use of offices by a financial institution; and, 10. Others which are determined by the Superintendence of banks, in the orbit of its competition. Article 434-Nature. Ancillary services will be provided by non-financial legal entities constituted as corporations, whose legal life shall be governed by the provisions of the companies act. The purpose of these companies will be clearly determined. Article 435.-Participation in the capital. Private financial institutions will participate in the capital of these companies, in accordance with the provisions of this code, converting them for this participation to subsidiaries or affiliates. Article 436-Rating. Companies, to provide ancillary services to entities of the national financial system, must be previously described by the Superintendence of banks, which as part of the qualification will have the reform of the social status and the increase of capital, in order to ensure their solvency. The capital of these companies must be stored in direct proportion to the volume or operations amount. Article 437.-Operations. The definition and the actions that include operations in charge of auxiliary services of the financial system entities, will be 72 - second supplement - official record No. 332 - Friday, September 12, 2014


governed by Board policy and financial and monetary regulation. These entities shall provide services exclusively to the national financial system, according to its corporate purpose. Exceptionally, they may provide services to third parties with the express authorization of the Superintendency of banks. Article 438.-Prohibition of investment. The auxiliary services of the financial system companies, whose shareholders are private financial entities, may not invest in the capital of another legal person, belong or not to the national financial system. The failure of this prohibition will be sanctioned by the Superintendency of companies, values and safe as violation very serious, without prejudice of its divestment. Article 439.-Control. Corporate control of these companies is in charge of the Superintendency of companies, securities and insurance. Auxiliary services related to financial activities that provide these companies will be controlled by the Superintendency of banks, according to rules issued for the effect.

Chapter 6 Popular Financial Sector and solidarity section 1 provisions common article 440.-management of the entities of the financial sector people and solidarity. For the purposes of this code, the members of the Board of Directors of credit unions and cooperatives of mutual savings and credit for housing associations, the members of the Board of Directors of central boxes, and their legal representatives shall be considered administrators. The boards of surveillance will be jointly responsible for the performance of the cooperatives of savings and credit, mutual savings and credit for housing associations and central boxes and will be subject to the responsibilities and penalties established by this code for boards of Directors. Legal representatives of the entities that make up the popular and solidary financial sector who are spouses or cohabitants in union of fact or relatives within the fourth may not be degree of consanguinity or second of affinity of members of the boards of directors or surveillance. Article 441-Removal of the boards of management and monitoring. The members of the boards of Directors and supervision may be removed at any time, by the inspection body for any of the following causes: 1. be in the prohibitions specified in article 412;

2 reluctance to abide by the provisions given by the inspection body;

3 alter or distort the financial statements; 4 obstructing the actions of control; 5 perform or promote illicit operations; 6. run serious acts that make you fear for the stability of the entity; and, 7. For any other reason determined in this code. Or the President of the entity or bylaws do their times, within the period of three days after the removal, convened general Assembly which will take place within a maximum period of thirty days to inform and if so, nominate the new members of the boards of management and surveillance. Case not to make the call to the general Assembly, the inspection body shall proceed to convene it. If once the period of ninety days from the date that watchdog ordered concerned removals, the financial institution not had modified its procedures or if the competent authority would not meet or did not take the relevant agreements, the compulsory liquidation of the entity will be available without further formality. Article 442-Extra regulations. Entities in the financial sector people and solidarity, in all matters not provided for specifically for this sector in this code, shall be governed by the provisions of the organic law of the Popular and solidary economy. Article 443.-Investment in financial services and ancillary services of the financial system entities. Popular and solidary financial entities may participate as shareholders or partners of the entities of financial services, with the exception of bureaux de change, and auxiliary services of the financial system entities. In this case, all entities must combine and/or consolidate their balance sheets to be submitted to the inspection body under the figure of popular and solidary group. Article 444.-Regulation and control. Popular and solidary financial institutions are subject to the regulation of the Board of policy and financial and monetary regulation and the control of the Superintendence of Popular solidarity, economy who policies issued will present the nature and characteristics of financial solidarity.

Section 2 of the cooperatives of savings and credit article 445.-nature and objectives. Savings and credit cooperatives are organizations formed by natural or legal persons that voluntarily unite under the principles established in the organic law of the Popular solidarity, economy with the aim of carrying out activities of financial intermediation and second supplement - official record No. 332 - Friday, September 12, 2014 - 73 social responsibility with its partners and , authorization of the Superintendency of Popular economy and solidarity, with customers or third parties, subject to the regulations issued by the Board of policy and financial and monetary regulation. The Board's policy and financial and monetary regulation will regulate taking into account the principles of territoriality, social balance, alternating in Government and democratic and social control of the financial sector people and solidarity. Article 446.-Constitution and legal life. The Constitution, Government and administration of a savings and credit cooperative is governed by the provisions of the organic law of the Popular and solidary economy. A cooperative credit unions, with the exception of those belonging to the segment 1, may have multiple non-financial activities provided they are linked to territorial development, keep accounts separate for each non-financial activity and running with funds other than partners the liquidation of a cooperative of savings deposits and credit will be governed by the provisions of this code and Additionally, by the organic law of the Popular and solidary economy. Article 447. Social Capital and segmentation. The social capital of savings and credit cooperatives will be determined through regulation by the Board's policy and financial and monetary regulation. Cooperatives will be located in the segments that the Board determines. The segment with greater popular and solidary financial sector assets is defined as 1 segment and include institutions with a level of assets exceeding USD 80' 000.000, 00 (eighty million dollars of the United States of America.) This amount will be updated annually by the Board applying the variation of the index of prices to the consumer. Article 448.-Capitalization. Capitalisation shall be perfected with the contribution of a new partner or the resolution of the general Assembly that has the capitalization of the inputs for future capitalizations. However, if capital involves the transfer of savings or deposits, it will require the written authorization of the partner. Article 449-Solvency and financial prudence. Savings and credit cooperatives should keep rates for solvency and financial prudence that will fulfill its obligations and keep its activities in accordance with the regulations issued for the purpose, considering the peculiarities of the segments of savings and credit cooperatives. The regulations must establish standards, at least in the following aspects: 1. capital solvency; 2 financial prudence;


3. minimum of liquidity; 4. Social balance; and, 5. Transparency. Article 450.-Credit quota. Savings and credit cooperatives established a quota of credit and guarantees of group, which will be accessible to the members of the Councils, management, employees who have decision or participation in operations of credit and investments, their spouses or cohabitants and relatives within the fourth degree of consanguinity and second of affinity. The quota of credit unions and credit of segment 1 for groups may not exceed 10% of the technical heritage; in the individual case shall not exceed 1% calculated at the end of the annual period immediately preceding the approval of appropriations. The quotas for the rest of the segments will be determined by the Board of policy and financial and monetary regulation. Core boxes, not apply the points of attachment for Administration of credit quotas. The quota of credit unions and credit for the other segments, will be regulated by the Board of policy and financial and monetary regulation. Financial and monetary regulation Board will regulate rates and quotas of credits provided by the cooperatives of savings and credit for economic activities related to the Popular and solidary economy sector. Them requests of credit of the people mentioned in this article will be determined by the Council of administration and reported to the Council of surveillance. Article 451-Payment orders. Savings and credit cooperatives can issue payment orders on behalf of its partners, against their deposits, which may be effective in other cooperatives of like nature, in accordance with the rules issued by the Board on policy and financial and monetary regulation and conventions which have been agreed for the effect. Article 452.-Investments. Savings and credit cooperatives should preferably, invest in this order: 1. in the financial sector; and, 2. In the secondary market of securities or in private financial institutions. Article 453-Redemption of certificates. No segment 1 credit cooperative may redeem equity, in the event of withdrawal of partners, for sums exceeding 5% of the share capital of the cooperative, calculated at the end of the previous financial year as a whole. In the event of death of the partner, the redemption of the capital will be total and not be counted within 5% laid down in the preceding subparagraph; the return will take place in accordance with the provisions of the Civil Code.

74 - Second supplement - official record No. 332 - Friday, September 12, 2014 compensation certificates of contribution with debts to the cooperative will be permitted only in the event of withdrawal of the partner, always within the limits of 5%. You can not redeem equity if this breach of regulations concerning solvency ratio and technical heritage, or if the cooperative finds subject to programs of intensive supervision, in the terms established by the Superintendency. The percentages of redemption of the share capital of the cooperatives of savings and credit from the rest of the segments will be regulated by the Board of policy and financial and monetary regulation. Article 454.-Control. The activities of savings and credit cooperatives control shall be carried out according to the segments in which they are located. Article 455-Audits. Savings and credit cooperatives will have internal and external auditors when assets exceed USD 5' 000.000, 00 (five million dollars of the United States of America). This value is set annually according to the price index to the consumer. The cooperatives of savings and loan whose assets are less than the amount referred to in the preceding subsection, be counted with the audits to be determined by the Board of Directors, in accordance with the rules issued by the Board of policy and financial and monetary regulation. Article 456.-Auxiliary Supervision. Integration agencies and other specialized entities can collaborate with the Superintendency in the realization of one or more specific monitoring activities, fulfilling the conditions and provisions issued by the Superintendence to the effect. Auxiliary supervisors will be responsible for administrative, civil and criminal proceedings by monitoring carried out. Article 457-Prohibitions. The cooperatives of savings and credit, in addition to the prohibitions set out in this code that they were applicable, are prohibited from the following: 1. acquire shares of entities in the private financial sector, except as provided in article 443; 2 grant, under any form, preferences or privileges to members, directors, officers or employees;

3 demand to the new members of the Organization to enter into a greater number of contributions, dues or contributions of which the founders have acquired since they joined the Organization, or who contract with the entity any extraordinary economic obligation, they have not contracted it such members;

4. the managers of the organizations are prohibited to use their status and resources of the entity to establish relationships, contractual, professional, labour or personal services, directly or indirectly, with other persons or organizations;

5. establish arrangements, agreements or contracts with natural or legal persons outside the Organization, enabling them to participate directly or indirectly from the benefits of development, promotion and incentive measures which granted the organic law of the Popular and solidary economy;

6 profit or benefit fraudulently the operations and activities of the Organization and the benefits that the organic law of the Popular and solidary economy grants. Same provision apply to the managers of financial institutions in this chapter.

7 hide, fraudulently alter or delete any report of operation, data or facts on which the Superintendency and the public have the right to be informed; and, 8. Others established in this code, the organic law of the Popular and solidary economy and its rules of procedure.

The prohibitions referred to in the paragraphs 1, 5, 6 and 7 shall be punished as very serious offences and those determined in the numerals 2, 3 and 4 shall be punished as serious offences, without prejudice to the sanctions and remedies available and the nullity of the acts prohibited by this article.

Section 3 of the solidarity or associative entities, boxes and community banks and savings associations or solidarity article 458-entities, boxes and community banks and savings banks. Solidarity or associative entities, boxes and community banks and savings banks are organizations that may choose to legal personality, formed by the will of its partners within the limits and in the form determined by the Board of policy and monetary regulation and financial, will have their own structure of Government, administration, representation, auto social control and accountability and will be required to send the information that is requested of them by the Superintendency. Solidarity or associative entities, boxes and community banks and savings banks are formed with financial partners, as savings, contributions unless they can attract funds from third parties, for the granting of credits to its members under the regulations issued by the Board, and shall be entered in the corresponding register. Those who opt for legal status, observed for operation requirements determined by the Board of policy and financial and monetary regulation receive funding for their development and strengthening granted by public bodies, organizations of the popular solidarity, economy support, national and international cooperation agencies and could generally be favored with donations and grants.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 75 article 459.-applicable legislation. Solidarity or associative entities, boxes and community banks and savings banks are governed by this code, by the organic law of the Popular and solidary economy and rules issued by the Board of policy and financial and monetary regulation. The entities mentioned in this article are subject of accompaniment, not of control, unless made operations out of its field, in whose case will be sanctioned by the Superintendence of economy Popular and solidarity.

Section 4 of the associations mutual benefit of saving and credit


for housing article 460.-nature and objectives. Mutual savings and credit for housing associations are entities that form part of the financial sector people and solidarity, whose objectives are the uptake of public resources destined to the financing of housing, construction and family well-being of its clients and partners, and are governed by the provisions of this code. Article 461.-Constitution and legal life: mutualistic associations of savings and credit for housing, in its Constitution, shall be governed by the provisions applicable to cooperatives of savings and credit laid down in the organic law of the Popular and solidary economy and its status. The activities, operations, settlement and all other aspects inherent to her legal life, mutual savings and credit for housing associations are governed by the provisions of this code relating to such entities, and not regulated specifically for them, those applicable to savings and credit cooperatives prescribed in this Act, the regulations issued by the Board and in its Statute. Article 462-Government and administration. The Government of mutualistic associations of savings and housing loans will consist of a general meeting of members, a Board of Directors and a Council of surveillance, legal representative, auditors, internal and external. Their internal organization shall consist in the social statute, to be approved by the Superintendency of Popular and solidary economy. Article 463-Partners. People who maintain certificates of contribution are partners of mutual savings and credit for housing associations. Contribution certificates represent the equity of partners in the entity, confer a right to a voice and a vote, regardless of the number of certificates of contribution paid by each. Any person natural or legal may possess in certificates of contribution, direct or indirectly, more than the 6% of the capital of the entity. In no event will restrict the entry of new partners to mutual savings and credit for housing associations; once reached the minimum amount of capital of Constitution, due to its characteristic variable and unlimited, new members must pay to your income the value of the contribution certificate provided for in the Statute of each entity. Article 464.-Minimum share Capital, heritage and segmentation. The minimum share capital of a mutualistic Association of savings and housing loans will be variable and unlimited and represented by non-redeemable certificates of contribution paid by its partners. The minimum share capital will be regulated by the Board of policy and financial and monetary regulation. The mutual will be located in the segments that the Board determines. The value of certificates of contribution will be established in the Constitution of a mutual Association of savings and credit for housing and must include in its Statute. Certificates of contribution will be the quality of title value. The heritage of the mutualistic associations of savings and housing loans will be integrated by the social capital, the irrepartible legal reserve and other statutory reserves and may not be less than USD 1' 800.00, 000 one million eight hundred thousand dollars of the United States of America. The mutual members will be responsible for the heritage of the organization up to the percentage of their contributions. To form its legal reserve irrepartible, the mutual will go, at least 10% of their annual profits, up to an amount equal to 100% of the share capital. Surpluses and annual profits that have been in the associations mutual savings and housing loans currently in existence, after legal deductions, shall be distributed proportionately among members and the irrepartible legal reserve accumulated in proportion to their participation in the heritage. For the purposes of the provisions of the Tax Act, will be as reinvestment this legal reserve with surpluses and profits increased. The existing mutual will increase the irrepartible legal reserve with 10% of annual earnings, in the part corresponding to its partners, only when it is less than 100% of its share capital, and to reach that level. Article 465-Operations. Mutualistic associations of savings and credit for housing, within the scope of their objectives, may perform the operations specified in article 194, prior authorization of the Superintendency of Popular and solidary economy. These entities may directly invest in specific projects aimed at the development of housing and construction, and auxiliary services of the banking of turn real estate entities or other entities of auxiliary services rated by the Superintendent, whose sole purpose is related to the line of business activities.

76 - Second supplement - official record No. 332 - Friday, September 12, 2014 own investments in the development of housing and construction-oriented specific projects may not exceed 100% of its technical heritage. In any case, a single investment project may have 100% of the quota assigned. The total of the quota must be distributed in several investments. The public financial institution in charge of social housing programmes, mutual savings and credit for housing associations and housing cooperatives are exempted from tax and municipal taxes by the acts and contracts that celebraren in connection with projects of social housing in the country. Same exemption shall apply to the entities referred to in the preceding subparagraph, in all acts and contracts through which apply loans received for the purpose of purchasing land or housing, construction, improvement, expansion, rehabilitation or completion of social housing providers. This exemption extends to the natural or legal persons who contrataren with the public financial institution in charge of housing of social interest, the mutual benefit associations and cooperatives above-mentioned programs or the borrowers of these entities, on the weekends before puntualizados; and it covers the loan contracts and the value of the savings of the borrower which is earmarked for the payment of the entrance fee for the purchase of land or housing, construction, improvement, expansion, rehabilitation or completion of social interest housing. Real estate purchased for the houses that are built, to extend or terminate with mortgage loans granted by the financial public entity in charge of housing programs of social interest, associations mutual of savings and housing loans, and housing cooperatives, and housing purposes constitute heritage family, by operation of law and shall be subject to the General rules laying down the title XI on heritage family of book 2 of the Civil Code , and the special contained in this article, which shall prevail over those. Article 466-Solvency and financial prudence. Mutual savings and credit for housing associations should keep rates for solvency and financial prudence that will fulfill its obligations and keep its activities in accordance with the regulations issued by the Board of policy and financial and monetary regulation considering the aspects identified in article 449. Article 467-Safe deposit, liquidity Fund and private insurance fund. Mutualistic associations of savings and housing loans will go through to insurance deposits and liquidity Fund and Fund of private insurance in accordance with the provisions of title II, Chapter 3, section 15.

Section 5 of article 468-boxes central core boxes. The central boxes are entities which constitute the financial sector people and solidarity, which are constituted with at least twenty cooperative credit union or mutual savings and housing loans. Central boxes duly authorized by the SVS may be financial operations of second floor, with savings and credit cooperatives and credit unions mutual benefit. Article 469.-Constitution and legal life. Core boxes, with regard to its Constitution and internal structure shall be governed by the provisions laid down in the organic law of the Popular and solidary economy and its rules of procedure. Item 470-Activities. Prior authorization of the Superintendency of Popular and solidary economy central boxes may carry out with savings and credit cooperatives and the mutual benefit of credit unions, the activities described in article 194 and, in addition, the following: 1. develop networks of financial services among its affiliates, such as windows shared, transfers of funds, remittances, payments for services , among others.

2 function as Clearinghouse between affiliates, prior authorization from the Central Bank of Ecuador, according to the provisions of this code;

3 channel and intermediate resources for the development of the Financial Sector people and solidarity; 4. management of the investment portfolio, when in the case of securities securities issued by the governing body of public finance and the Central Bank of Ecuador; and,


5. structuring of financial risk management products. Article 471.-contributions compulsory. Entities members of central boxes shall maintain at all times an amount of certificates of contribution in accordance with the regulation to effect the Board issued. Article 472.-Regulation differential for contributions of central boxes. The central boxes will provide the liquidity fund in accordance with the specific rules which dictate the Board. No credit quotas set out in article 450, or the points of attachment are applicable to these institutions.

Section 6 of article 473-services auxiliary services auxiliary. The popular and solidary financial sector entities may invest in entities of auxiliary services of the financial system, second supplement - official record No. 332 - Friday, September 12, 2014 - 77 national. These entities are governed by the provisions contained in title 2, Chapter 5, section 11. Also, the popular and solidary financial sector entities may constitute organizations of the popular and solidary economy whose object is the provision of ancillary services that are governed by the provisions of the organic law of the Popular and solidary economy. Article 474-Rating. Auxiliary services entities constituted in accordance with the article above, to operate, must qualify previously before the Superintendency of Popular and solidary economy, which as part of the qualification will have the reform of the social status and the increase of capital, in order to ensure their solvency. The capital of these companies must be stored in direct proportion to the volume or operations amount. Article 475-Prohibition of investment. The auxiliary services of the financial system companies, whose shareholders are popular and solidary financial entities, and organizations of the popular and solidary economy whose object is the provision of ancillary services, may not invest in the capital of another legal person, belong or not to the national financial system. Failure to comply with this prohibition shall be punished by the respective control bodies as very serious offences, without prejudice to its divestment. Article 476.-Control. Corporate control of ancillary services of the financial system entities referred to in this section shall be in charge of the Superintendency of companies, securities and insurance and the Superintendency of Popular solidarity, economy according to the case. Auxiliary financial activities of the financial sector people and supportive services will be controlled by the Superintendency of Popular solidarity, economy standards issued for the effect.

Chapter 7 rules of general Artículo 477-the Board of monetary regulation and policy character and financial and organisms of control, in the fields of their functions, shall issue the necessary rules to implement the provisions of this title.

Title III provisions related chapter 1 of the Cheques section 1 emission and article 478.-check form. It is a means of written payment whereby a person named spinner, with cargo tanks to keep in an account which is incumbent on a financial institution, instructs that entity, called rotated, which pays a certain amount of money to another person named beneficiary. RID check, in accordance with the provisions of this code, has probative value. Article 479.-Content and validity of the check. The check must contain: 1. the name of check, inserted in the text of the document and expressed in the language used for its drafting;

2. the term pure and simple to pay a certain sum of money; 3. the name of who must pay or turned; 4. the indication of the date of payment; 5. the indication of the place of issuance of the check; and, 6. The signature of who issued the check or spinner. Check that are missing any of the listed requirements will not apply as a check. Article 480.-Interests. The amount of the cheque does not generate interest, therefore any provision on interest it is said to be non-existent. Article 481-Signatures on checks. When a check signatures of incapables, signature false, imaginary people or firms that otherwise may not compel persons for whom is signed the check, or with whose name appears signed, the obligations of any other signatories will not fail, therefore become invalid. Article 482.-Responsibility. Who sign a cheque as a representative of a person that does not have the authority to act, undertakes by itself under check, and, if you have paid, has equal rights that would be the course represented. The same rule applies to the representative that has exceeded its powers. Article 483.-Responsibility of the gyrator. The gyrator is responsible for payment. Any clause by which the gyrator is exempt from this responsibility has no value. Article 484-Ban on duplicate checks. Ban issue checks for duplicate.

Section 2 of article 485-transmissibility transmission and endorsement. The cheque is transferable by endorsement. Endorsement is the transmission of a check to the order by a formula written on the reverse of the document.

78 - Second supplement - official record No. 332 - Friday, September 12, 2014 endorsement must be pure and simple. Any condition which is subordinated the check transmission, shall be deemed unwritten. Partial endorsement is null. Only checks will endorse only once and in the amounts established by the Board of policy and financial and monetary regulation. The signature stamp of the payee on the check for the purposes of presentation and collection, to the rotated, shall not be considered as a proper endorsement, so it will not be included within the limitation of movement provided for in the preceding paragraph. Article 486-Signature of endorsement. The endorsement must be written on the check and must be signed by the transferor. Article 487.-Transmission of rights. The endorsement transmits all the rights resulting from the check. Prohibit endorsements blank or to bearer. Article 488.-Guarantee of payment. Endorser, except clauses to the contrary, guarantees payment. The Board will regulate endorsement mechanisms. Article 489-Legitimate holder. The payee of a cheque, endorsable or not in accordance with article 485, is considered as the legitimate holder. Article 490-Enforceable exceptions to the carrier. Persons sued pursuant to the check may not object to carrier or fork exceptions based on their relationships with the drawee or the previous holders, unless the carrier or fork, to acquire the check, has acted knowingly to the detriment of the debtor. Article 491-Endorsement after the protest. Back to the protest or staged endorsement after the completion of the submission deadline, does not produce other effects than an ordinary assignment. Undated endorsement is presumed, unless proven otherwise, before the protest or the termination of the period referred to in the preceding paragraph.

Section 3 presentation and payment article 492.-payment of the cheque. The cheque is payable to the view. The presentation of the cheque, the rotated is obliged to pay it or to protest it. Otherwise, it will respond by damages cause to the carrier or fork, regardless of any other sanctions to any place. Prohibit financial institutions put in place of the protest any legend, with or without date, stating that the cheque was presented for payment and not


paid. The entity that violated this prohibition shall be punished with a fine by the value of the corresponding check by the inspection bodies. This provision except checks rejected for defects of form and the presented after the deadline for payment of the check referred to in article 517, as well as scanned images of the entered checks to clearing house. Article 493-Deadline for submission. Rotated and payable checks in the Ecuador shall be submitted for payment within the time limit of twenty days from the date of their issuance. Rotated on the outside and payable in the Ecuador checks shall be submitted for payment within the period of ninety days from the date of their issuance. Cheques payable abroad and rotated in the Ecuador are subject, for presentation to the payment, terms or time limits determined by the law of the State where he has his domicile turned Bank. Article 494-Presentation for payment. The presentation of the check to a Chamber of compensation from the lender, is equivalent to the presentation for payment. Article 495.-Revocation check. The spinner may revoke a check by communicating in writing to the turned not to pay it, with an indication of the reason for such revocation, without this the responsibility of the gyrator disappears. At the request of the carrier or fork that has lost the check, the gyrator is required as temporary protection measure, to suspend, in writing, the payment order. It will not work the revocation check when there is sufficient provision of funds and, in this case, the Bank is obliged to protest the check. The rotated shall retain the amount of check revoked until a judge resolved what is convenient, or until the drawer stops without effect the revocation, or until the expiration of the limitation period of six months, counted from the expiry of the deadline for submission, or even when is declared void the check for removal, deterioration, loss or destruction, in accordance with the general norms established by Board policy and monetary regulation and financial. Article 496-Validity of the check. Neither death nor superviniente the gyrator inability to affect the validity of the check. The rotated that has knowledge of the bankruptcy of the drawee, must deny payment. Article 497.-Cancellation of the cheque. The girado, to pay the check, its cancellation required to carrier or fork.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 79 carrier or fork it may admit or refuse, to will, a partial payment, but the rotated is obliged to pay the amount of the check up to the total of the funds you have available to seat. In the case of partial payment, the rotated may require that mention such payment on the check and would give receipt, and shall be required for its part, to grant to the carrier or fork a voucher containing all the specifications of the check and the unpaid balance. This proof shall have the same effects as check protested in terms of the balance not covered. Article 498.-Verification of signature. The rotated that pays a cheque is obliged to check the regularity of the endorsement and the identity of the person who pays it, but not the signature of the endorser. Article 499.-fine by check protested. Sets the fine of 10% of the value of each check protested by insufficient funds, which must be paid by the gyrator, fine which will be charged by the financial institution of the rotator accounts, up to the amount that is kept in deposit and transferred monthly to the single national treasury account.

Section 4 of the crossed cheque and non-negotiable check article 500.-checks crossed. The drawee or the carrier or holder of a check can cross it, in accordance with the regulations issued by the Board. Article 501-Non-negotiable Cheque. Check that contains the expression "not to order" or similar as "non-negotiable", "non-transferable", "non endorsable" is not transferable but in the manner and with the effects of an ordinary assignment. Turned Bank received a check with any of the above expressions, can only prove their value in an account belonging to the beneficiary, or pay in currency to the beneficiary or the successor in title. Article 502.-Damages. The rotated which does not observe the provisions of this section, be liable for damages up to an amount equal to the amount of the check.

Section 5 of the certified check article 503-certified check. Check containing the word "certified", written, dated and signed by the rotated, requires this to pay the check presentation and frees the gyrator of responsibility for payment.

Section 6 of the actions by non-payment checks article 504-protest. Carrier or holder can exercise their actions against the drawer, endorser and others forced, when presenting the check in time is not paid, provided that the non-payment is credited by protest, in any of the following ways: 1. by declaration of the rotated, dated and written on the check; 2 when the girado refuses to extend the Declaration referred to in the preceding paragraph, a notary public of the address of the financial institution, upon oral or written request of carrier or fork, will require payment of the cheque to the entity, and, in case of refusal, it will extend the protest stating the requirement, the refusal to pay and the reason and, 3. By a clearing house dated statement, evidencing that the cheque has been sent on time and has not been paid.

Article 505.-Loss of the action. Carrier or fork that does not submit statement check for payment within the legal deadline, will lose its action against the endorser, and winder, when, having funds, it may lose, after expiry of the time limit, have been declared in liquidation to the financial institution. Article 506-Solidarity. All persons bound by virtue of the check, are jointly and severally liable with respect to the carrier or fork. Carrier or holder is entitled to proceed against all these people, individually or collectively, unless it can be compelled to observe the order in which those have been forced. Equal right corresponds to all signatory of a check that paid. The action attempted against one of the obligors, not prevents to proceed against others, even subsequent to that which was in principle against. Article 507-Values to claim. Carrier or fork can claim than the one against whom exercises its action: 1. the amount of the unpaid check; 2. their interest at the maximum rate, the date of the protest; and, 3. The protest charges, for notifications and the costs. Section 508-Claim to jointly and severally obliged. Which has paid the cheque can claim from the solidarity required: 1. the full sum paid by him/her; 2. the interests of such amount, calculated at the maximum rate, starting from the day of payment; and, 3. The procedural costs.

80 - Second supplement - official record No. 332 - Friday, September 12, 2014 article 509.-delivery of the cheque protested. Any required against which exercise an action or be exposed to it, may be required against payment delivery protested check and a receipt. Article 510.-Force majeure or unforeseen circumstances. Where the presentation of the check or the lifting of the protest could not be done within the prescribed deadlines, by force majeure or unforeseen circumstances, these time limits shall be extended until such time as these events have ceased. The facts of purely personal carrier or fork or one who has been responsible presentation check or of the lifting of the protest will not be considered as cases of force majeure. Article 511-Alteration of the check. In case of alteration of the text of a check, after the alteration signers will be bound in accordance with the terms of the text; but the previous signatories will be only pursuant to the original text.

Section 7 of the prescription Article 512-prescription. The actions corresponding to the carrier or fork against the drawee, the endorsers and other forced, prescribed six months, counted from the expiry of the deadline for submission. Actions that apply together to the different forced payment of a cheque, prescribed six months, counting from the day that a liable has paid the check or from the day that it has brought an action against it. Article 513-Interruption of the limitation period. The prescription is interrupted in accordance with the provisions contained in the law.

Section 8 conflicts of laws article 514-conflict of laws. In regard to conflict of laws, the law of the State in which the check is payable, determines: 1. the term of presentation; 2. If it can be accepted, cross, certified or confirmed, and the effects of those operations; 3. the rights of the holder on the provision of funds and their nature; 4. seat rights to revoke the check or oppose the payment; 5. the need for the protest or other Act equivalent to preserve rights against the endorsers, the drawee or other required; and, 6. Other situations concerning the modalities for the check.

Section 9 common standards


Article 515.-Deadline for presentation and protest of a check. The presentation and the protest of a check must be made within the time limits laid down in article 493 and a day for the respective proceedings. When the last day of the term not be day working, will be extended until the first day business next. Intermediate holidays will be included in the computation of the period. Section 516-Executive title. Check not paid for lack or insufficiency of funds and protested within the deadline, is enforcement. Also the proof referred to in the third subparagraph of Article 497 is enforcement. In all other cases, unless legal otherwise, payment of a cheque may claim in summary verbal judgment. Civil action tried for a check payment, does not affect the corresponding criminal action. Article 517-Deadline for payment of the rotated check can pay a check even after expired deadlines set out in article 493 and within thirteen months after the date of their issuance. Article 518-Loss caused by payment check falsified. The loss caused by the payment of a counterfeit check not included in the numbering of the gyrator, corresponds to the rotated. The loss caused by the payment of cheques forged, included in the numbering of the gyrator, corresponds to this or rotated, as you have one or another fault in the loss. If neither of them is guilt, loss corresponds to the rotated. If the drawee not reclamare within six months posed by the State's current account turned, indicating the payment of forged cheques, the loss caused by the payment of such checks will correspond to the gyrator. Prohibit any provision contrary to the provisions of this article. Article 519.-Regulation. The Board's policy and monetary regulation, and financial, will give general rules needed for the purposes of the provisions relating to the checks referred to in this code. The Central Bank of Ecuador will regulate the processing of checks scanned in checks Clearing House's. The scanned images of checks processed in the checks clearing house, will have same probative value as the original.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 81 financial institutions are authorized to destroy the physical cheques received in deposit, once the expired determined to keep them in physical form. Article 520-Sanctioning authority. Control agencies have authority to sanction breaches of this chapter, by the imposition of fines that will be included between one and thirty unified basic salaries.

General provisions first.-limits of liability. The State is not responsible for the solvency of the financial sector entities private; popular and solidarity; or of the entities that make up the regimes values and private insurance and in any case you can assume its debts. Regulation and control of financial sectors private and popular and solidary, securities and insurance, not be transferred to the State responsible for the soundness of institutions that comprise them. Second.-functions of the Board. All functions in the area of policy and regulation as applicable law from the date of promulgation of this code, give to the Bank Board, directory of the Banco Central de Ecuador, Board of regulation of the Sector financial people and solidarity, Board of regulation of securities, directory of the Corporation of insurance of deposits and directory of the liquidity fund they will be assumed by the Board on policy and monetary regulation and financial, except for the cases expressly delegated to the supervisory bodies in this code. Third.-Conversion to dollars of the United States of America. In all the legislation in force and the outstanding obligations that are available that payments be made in sucres, means that they must be carried out in dollars of the United States of America to a conversion rate of twenty-five thousand (25.000,00) sucres per dollar of the United States of America. In all the legislation in force and the outstanding obligations that are available that payments be made in units of constant value (UVC) or in General vital minimum wages, means that each unit of constant value and each general vital minimum wage have a fixed and unchanging value equal to, respectively, two two six coma coma six two eight nine (2,6289) and $ 4.00 (four dollars of the United States of America) respectively. Values pending payment by ongoing tax obligations of credits or direct recovery orders, as well as those in previous periods and that are determined by the taxpayer himself or by the Administration, cleared by adding the interests of mora who were force until January 10, 2000, to the rate in effect for each quarterly period. The value thus obtained and the fines, they will be converted into dollars of the United States of America, to a price of twenty-five thousand (25.000,00) sucres to the dollar, and issued new titles of credit or direct recovery orders which shall accrue an interest rate equivalent to 16.82% per annum, from 11 January 2000. The liquidation shall be notified to the taxpayer and will continue with the actions provided for in the tax code. Fourth: monetary and financial transactions through tax havens. The Board's policy and financial and monetary regulation will regulate monetary and financial transactions with the outside, especially those made with tax havens or jurisdictions of lower taxation to the Ecuador, according to the definitions established by the internal revenue service. The Central Bank may request from the entities of the national financial system information about the complete chain of payments to international monetary and financial transactions. Also available is information support corresponding to natural and legal persons payer of such transactions, which represent the most important accumulated amounts in accordance with the regulations issued by the Board of policy and monetary and financial regulation. Fifth.-temporary retention of deposits and investments. Superintendents, of the State Attorney General, the Comptroller General of the State and the Attorney General of the State, in an exceptional way, by presumption of illegal acts and motivated and individually, may order the temporary retention of deposits and investments in entities of the national financial system. Ranked retention will expire within the period of fifteen days from notification to the respective financial institution, unless it is confirmed by a competent judge. In this case, the retention shall be subject to the provisions of the code of Civil procedure. Sixth: Liabilities and immobilized balances. Liabilities that have remained immobilized in any entity of the national financial system for more than five years with a balance of up to the equivalent of 25% of a unified basic salary, or by more than ten (10) years with one greater balance, by not having been claimed by its beneficiary from the date that they were enforceable, will be transferred to the National Treasury single account with the exception of liabilities fixed by law or judicial duly notified to the financial institution. Fixed assets liabilities cleared to January 31 of each year. Financial institutions may not be transferred to utilities, directly through transfer to suspense accounts or otherwise, values or balances immobilized, belonging to other people, either that is the quality of these. All entity financial must submit in January of each year a report to the body of control with regard to the existence of any value, dividend or balance not 82-second supplement-record official No. 332-Friday 12 of September of 2014


claimed belonging to third parties that any remained immobilized as passive dependents for five or ten years. Seventh.-payment of depository of larger loans. In the processes of forced liquidation of entities of the national financial system, without prejudice to the priority of payments established in this code, the liquidator in a motivated way may ask the natural or legal persons who have debts above the value determined by the Board, additional justifications about the origin of these resources. Eighth.-competition. When the object or subject of a claim or administrative appeal under the knowledge of the ordinary courts, public bodies regulated by this code shall refrain from further knowing them as soon as they are made aware of such circumstances, and where the claimant or recurrent who intervene as a plaintiff in the lawsuit. Provisions is not applicable when the facts relating to the claim or administrative appeal are also subject to investigation or prosecution in criminal matters. Ninth.-legal proceedings. Any legal action initiated against holders or delegates of the Board policy and monetary regulation and financial personally, by acts, resolutions or decisions taken in the bosom of this collegiate body, will be ineffective and judges who know it must dispose of, except those actions that start the General State Prosecutor's Office for crimes against the public administration and the judicial action of repetition. Superintendents referred to in this code shall not be exempt from responsibility for acts performed in the exercise of their functions or their omissions and will be responsible for administrative, civil and criminal sanctions for their decisions. Responsibilities shall be determined by the control of the State, the General Prosecutor's Office of the State agencies and competent judges. The judicial actions promoted against acts of the Superintendents will be filed against those entities. Any legal proceedings against holders of such bodies in their personal capacity will be ineffective and will be not admitted to any process, except the interposed by the supervisory bodies of the State, the Comptroller General of State and the Attorney General of the State, without prejudice to the repetition action provided for by article 11 article 9 of the Constitution of the Republic. Tenth.-contributions. Contributions which, at the date of entry into force of this code, are funding the budgets of agencies will be consigned directly to the single national treasury account. The payment of these contributions will be made with direct transfers to the single account of the national treasure with the exception of the private insurance fund envisaged in article 67 of the General Law of the insurance or through direct debit of accounts that the entities obliged to contribute to maintain at the Central Bank of Ecuador. Tenth first.-contribution Ecuadorian Institute for educational credit and scholarships IECE and Ecuadorian service for training professional SECAP. The contribution of 1% of the monthly payment to the Ecuadorian Institute of Social Security, which are being transferred to the Ecuadorian Institute for educational credit and scholarships, IECE (0.5%) and the Ecuadorian service of training professional SECAP (0.5%), on the basis of the Decree Supreme # 623 - to, of August 3, 1976, referred to in article 13 literal to) the replacement law to the law of the Ecuadorian Institute of educational credit and scholarships (, and literal Art 14 a) and article 14-A of the law of creation and functioning of the SECAP, shall be deposited in the National Treasury's single account as part of the General budget of the State from January 1, 2015. Tenth second.-jurisdiction to sanction. The competition to punish infringements of the entities in the market of securities and insurance, its administrators, officials or employees, auditors internal and external signatures rating risk, expert appraisers and others who carried out support to the monitoring services, corresponds to the Superintendency of companies, securities and insurance. 10th third-transferability. The Ecuadorian State shall ensure free transferability abroad in currencies of regular earnings or profits and income from direct foreign investment, once fulfilled, labor, tax obligations and those set out in the legislation. Tenth fourth: people receiving credit operations including credit deferred with credit card, financing, purchase of portfolio, discount of bills of Exchange and operations of reporting with the private financial sector entities, controlled by the Superintendency of banks, will pay a contribution of 0.5% of the transaction amount. This rate may be reduced in duly justified cases for economic or social reasons by Executive Decree, to 0.01%, in a general manner or by segments, at the substantiated request of monetary regulation and financial policy Board. This contribution also apply to funding made to overdue loans. The institutions of the State as defined in article 225 of the Constitution of the Republic is not subject to the payment of this tax. The entities of the sector financial private will act as agents of retention of this contribution. The amounts collected shall be deposited daily, with a lag of up to 48 hours, by agents of the single national treasury account retention. The resources of this contribution will be allocated to the financing of comprehensive cancer care. The financing for the different nuclei of society's fight against Cancer - SOLCA-, will be second supplement - official record No. 332 - Friday, September 12, 2014 - 83 transferred by the Ministry of public health of quarterly and advance form. The transfer in favour of the different nuclei of SOLCA is subject to compliance with policies that dictate the Ministry of public health in relation to comprehensive cancer care, co-payments by the users and the accountability of the proper use of those resources on the basis of regulations issued by the national health authority for the purpose. The use of resources will be subject to audit and control by the Ministry of public health and by agencies, within the scope of their competencies. The society's fight against Cancer - SOLCA-, will continue to receive resources at least equivalent to that they had perceived by effects of the repealed law of creation of the network of financial security, subject to the compliance with this provision. This provision will begin to govern 30 days after the entry into force of this code. 10th fifth: the State may transfer resources equivalent to those who had perceived by effects of the repealed law of creation of the network of financial security to private organizations that perform social work. Transfers are subject to the accountability for the use of these resources, on the basis of regulations issued for this purpose by the governing body of the public finances. Tenth sixth: Board policy and financial and monetary regulation will use the instruments set out in this code to promote and facilitate access to credit person in human mobility, considering their circumstances and specificities. Seventeenth: Exchange of information: the institutions of the State, its agencies, dependencies, and persons acting by virtue of a State authority, may exchange without any restrictions that have, and information that is necessary for the fulfilment of its objectives. Personal information is reserved and will not lose such a condition for Exchange with other institutions of the State, who moved the reservation. 10th octave: Structure of the code. The provisions of the monetary and financial system contained in titles I, II and III of this instrument are book 1, the securities market law with its reforms incorporated as book 2 and incorporated as book III of the monetary and financial code the General Law of insurance with its reforms. In all cases which are available that a term has to pass to perform certain action or for which specific legal effect only occurs skillful or useful days are counted.

PROVISIONS REFORMATORIAS and REPEALING Chapter 1 reforms first.-legislation carried out the following reforms: 1. replace "Superintendency of banks and insurance" and "Superintendent of banks and insurance" by "Banking" and "Superintendent of banks", respectively;

2. replace "Superintendency of companies and values" and "Superintendent of companies and values" by "Superintendency of companies, securities and insurance" and "Superintendent of companies, securities and insurance", respectively; and, 3. Replace "Law organic of Economics Popular and solidarity and of the Sector financial Popular and solidary" by "Law organic of Popular and solidarity economy".


Second.-in the Civil Code, replace the text in the article 1611: "The directory of the Banco Central of el Ecuador" by "The regulatory body of the monetary and financial systems". Third.-in the organic code of public finance and planning, carried out the following reforms: 1. in article 74 replace paragraph 22 with the following: "22. Use instruments and operations of national and/or international financial markets, in order to streamline the financial management of the State; ";

2. in article 75, add the following final paragraph: "For the fulfilment of their duties and powers, the governing body of the SINFIP will have coercive jurisdiction, which shall be exercised in accordance with the law";

3. in the article 129, subsection first, delete is the following text: "the banking public can do it only in favor of companies public in which the State has the participation majority.";

4. to below of article 130, incorporated the following innumerado article: "article...-pledge of revenues." Repayment of all debt contract with entities of the public financial Sector, which held public entities, including enterprises in the public sector, will be backed by the pledge of income of all income of the entity responsible at the Central Bank of Ecuador, in accordance with the respective rules of procedure";

5. in article 137 modified the title of the article with the following: "contracts that contribute to realize operations of internal public debt, external 84 - second supplement - Registro Oficial Nº 332 - Friday, September 12, 2014 or coverage", and after the phrase "buy-back of securities issued by the State," added the word "coverage";

6. in article 144 second subsection, below of the text: "stock exchanges" added "or trading platforms";

7. in article 157 first subsection, replace the text: "financial entity of the non-financial Public Sector" by "Public Sector body";

8. in article 158 delete the text "non-financial"; 9. in article 168, incorporate the following as second subparagraph: "the investment and operation of investment of the Central Bank of the Ecuador international assets, including the international reserve of free availability, will be made without prior authorization.";

10. "incorporate the following general provisions: twenty first: any contribution that State if pending settlement of 40% of the pension contribution payments Jubilee since the promulgation of the Constitution of the Republic, with the Institute of Ecuadorian Social Security, which has not been transferred in the period will be assessed by applying to the principal sum interest rate equivalent to the weighted average yield of each year of the bank credit portfolio of the" Ecuadorian Institute of Social Security. Values that differ from the previous calculation methodology will be reviewed and will take the process of consolidation and settlement. Proceedings of final consolidation will be made to this effect. TWENTY-second: The national service of customs of Ecuador (NES), will raise and be deposited in the National Treasury single account product of the sale of the prohibited import goods, which may be definitively confiscated. TWENTY third.-the resources that charge in respect of fines imposed by the courts and tribunals of the Republic, will be charged according to the technical standard that the governing body of the public finances for the effect and will be transferred to the National Treasury single account, as part of the fiscal resources that are part of the General budget of the State. TWENTY fourth.-due to the reform to article 30 of the organic law of the General Comptroller of the State, which eliminates allocations in favour of the General Comptroller of the State, and in order to finance the institution, be they transferred compulsorily to the General budget of the State, five per thousand budgeted revenue of the decentralized autonomous governments , Public enterprises, Social Security, public financial institutions, and in the proportion of legal persons of private law whose share capital, property, Fund or tax participation this integrated, with public resources. Exceptions made the payment of this contribution only revenues from internal and external loans, grants, beginning balances of box. The Central Bank of Ecuador will automatically debited on a monthly basis these resources of the accounts of the entities named in the preceding paragraph, according to the liquidation to be issued by the governing body of the public finances. TWENTY fifth: The unit of management and execution of law public of the trust AGD-CFN No more impunity will own coercive jurisdiction for recovery and collection of obligations on their behalf. The legal representative of the entity or its delegate shall be the judge of coercive, and shall exercise the coercive jurisdiction subject to the provisions of the code of Civil procedure. Administrators, shareholders, and the legal representatives of the financial institutions, which have been declared Unreal technical heritage, altered the figures of their balance sheets or charged interest on interest rates, with their personal assets guarantee deposits of the financial institution, and the unit of management and execution of law public of the trust AGD-CFN No more impunity can seize those assets which are of public knowledge of these administrators property shareholders and legal representatives. The seizure can be challenged based on regulations that effect has been issued or issued the unit of management and execution of law public of the trust AGD-CFN No more impunity, after which, if the seizure resolution had not been revoked or extinguished by the entity, the ownership of the seized goods shall be transferred from full right to the Ecuadorian State , through that body. In this case, the registrars of property, commercial loggers, and any other body or official that hold responsible the registration of transfer of goods, must register the domain transfer of goods requested the unit's management and execution of law public of the trust AGD-CFN No more impunity, being exempt from paying taxes, fees contributions, fines, and expense. The value for the seized items records, will be the registry in the case of real estate, the value set in registration in cases of registered vehicles, or the one who determines a contracted expert for the effect on other cases, with the exception of the companies. The value of these goods shall be determined according to the date of seizure. The value of the seized companies is that heritage declared to the internal revenue service regarding the economic period immediately preceding the date of seizure. Not having made this statement, the value of the company will be the nominal value of its shares or participations. In the case of the seized shares, which do not correspond to the totality of the capital of the company, its value is that corresponding to the percentage seized on the basis of the referral declared patrimony."

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 85 fourth-in the tax code perform the following reforms: 1. in article 35, insert the following as paragraph 5: "5. the measures provided in the process of exclusion and transfer of assets and liabilities of an entity of the national financial system, according to the monetary and financial code" ", in any form;" and, as paragraph 6 the following: "6. the extraordinary fusion process entities of the national financial system, according to the organic code of monetary and financial", and renumber the following paragraphs. Same exemption will have savings and credit cooperatives when they merge with others;

2. in article 43, after the phrase: "tax credit", add the following ", titles of the Ecuador Central Bank" after the phrase: "active subject" add "and the Central Bank of the Ecuador"; and, 3. In article 220 shall be incorporated as the following final subparagraph: "the Court district of the contentious tax shall have no jurisdiction for challenges against credits whose content, i.e. the tax obligation, already it was known and resolved in court."

Fifth.-the code of the production, trade and investment, carry out the following reforms: "1. Article 12 be replaced by the following: ' article 12.-Capital risk.-the State will constitute capital funds of risk with the contribution of public resources to finance the different stages of the process of innovation, from the fields of research and knowledge, and productive." " These funds can, in turn, constitute funds collective investment and trust funds that can invest in and out of the stock market or contribute to existing funds, pursuant to provisions of the securities market law and regulations issued by the Board's policy and monetary regulation and financial.


Allocations of funds of venture capital and investment will be carried out in research projects, incubation and productive specific, preferably innovative character, which must be temporary and previously agreed. The allocation of resources through the Mecca - agencies provided for in this article and in the regulations, will require the issuance of a feasibility analysis of the project, carried out by natural or legal persons specialized. Resources will be made in accordance with the provisions of article 104 of the organic code of planning and public finance. Collective funds fees can be purchased by the public sector and private sector alike. Control of the management of the venture capital fund will be in charge of the control bodies of the State, in the field of their respective competencies, which in its supervision and control actions must consider the nature of venture capital. By Executive Decree the institutions and mechanisms of operation necessary for the management of venture capital funds is determined. ";

2. delete articles 62 and 65; 3. in article 67 replace the following text: "the body with competence development and regulation of micro finance popular" by the following "the Board of and regulating monetary and financial policy"; and delete the second paragraph; and, 4. In article 94, replace the text: "The financial organization of the public sector" by "The entity public, or public property determined by the Board of policy and financial and monetary regulation".

Sixth.-in the labour code, in article 36, be incorporated as the last paragraph, as follows: "exempting designated solidarity in the preceding paragraph to the entities that make up the public sector and public enterprises. As a result, it may not order is measure precautionary or execute any judgment against the legal representatives or administrators of the concerned entities or companies." Seventh.-the commercial code as the final paragraph of article 201, include the following text: "trade companies may devoted exclusively to the professional and common realization of factoring operations and related operations, in accordance with the regulations that for this purpose the Board of policy and financial and monetary regulation issued." Eighth.-in the organic law of the General Comptroller of the State, article 30, be replaced by the following: "(Art. 30.-Presupuesto.-El presupuesto de la Contraloría General deel Estado se financiará con: a) with the assignment that is delivered through the budget of the State General;" (y b) the resources of self-management. " Ninth.-law of Popular and solidary economy and Popular and Solidary Financial Sector, carried out the following reforms: 1. replace the first subparagraph of article 45 with the following: "the Manager is the legal, judicial and extrajudicial representative of the cooperative, being of free appointment and removal by the Board of Directors and will be responsible for the management and its comprehensive administration , in accordance with the Act, its regulations and the social status of the cooperative. ";

2. in the article 61 replace is the last paragraph by the following: "the liquidator may or not be server of it superintendence;" If not, will have no relationship of 86 - second supplement - official record No. 332 - Friday, September 12, 2014 labor dependency whatsoever with the cooperative or the Superintendent, and will be free removal, without the right to any compensation.

The liquidator under no circumstances shall be liable for solidarity of the obligations of the entity in liquidation. "; 3. in article 79, replace "the Central Bank of the Ecuador" by "the policy and financial and monetary regulation Board";

4. replace article 95 with the following: "article 95.-stealth and reserve." Stealth and reserve deposits and the capture of the Popular and Solidary Financial Sector organizations, will be governed by the provisions of the monetary and financial code. ";

5. in article 140, replace the text: "gives the Ecuadorian Housing Bank and" by "grant the"; 6. in article 142 subsection first eliminated two references that say: "and the Popular and Solidary Financial Sector";

7. to below from the second subparagraph of article 144 added: "For these purposes the concerned Ministry, there will be a technical secretariat, which shall also exercise the powers granted in the Popular and solidary economy Act and its General Regulation."; also replace the third and fourth subparagraphs of article 144, with the following: "regulation of the Financial Sector people and solidarity will be in charge of the Board's policy and monetary regulation, and financial, created in the monetary and financial code;"

8. in article 158, first subsection, replace the text: "as a gifted, public law body" with the following: "as a financial institution under public law, provided"; following the first subsection, to add another read as follows: "The Corporation will have the power to act as fiduciary.";

9. in article 159, second subparagraph, replace the text that says: "that dictate the Superintendency", by the following: "arranged in the organic code of monetary and financial affairs, and in the regulations issued by the Board of policy and financial and monetary regulation";

10. in article 168 replace the literal d) with the following; "Buy assets owned by administrators, officials or employees of the entity or persons who act on its behalf and in its representation and establish agreements, conventions or contracts with natural or legal persons outside the Organization, enabling them to participate directly or indirectly from the benefits of the measures of promotion, promotion and incentives granted by this law;"; and, 11. Delete articles 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119 and 120.

Tenth.-law of regulation and Control of market power, carried out the following reforms: 1. Article 53 incorporated the following final paragraph: "In the case of entities of the national financial system, since the beginning of the investigation procedure must have is the Superintendence of banks and the Superintendency of Popular solidarity, economy in their fields."; and, 2. Merge in article 56 the following final subparagraph: "Where the investigation relates to entities of the national financial system, necessarily must have is the Superintendence of banks and the Superintendency of Popular solidarity, economy in their fields.".

Tenth first.-in the organic law of the national system of public contracting, article 2 then the numeral 9, insert another paragraph read as follows: "10. Of contracts requiring the Central Bank of Ecuador provided for in article 37 of the monetary and financial code." Tenth second.-repeal law to the law of credit information bureaus, deleted articles 4, 5, 6 and 7, and the first transitional provision be replaced by the following: "first.-the Board of policy and financial and monetary regulation shall fix the date from which will be full operational credit data to the National Manager of public data." Credit information bureaus will continue to provide its services in accordance with the regulations established by the National Directorate of registration of data public and the Superintendency of banks up to 90 days after the entry into force of the registration of credit data." Tenth third.-the organic law of public companies, carried out the following reforms: 1. in article 38, add the following final paragraph: "operations issued by public institutions or public enterprises, whether in the country or abroad, through the Central Bank of Ecuador, as financial agent of the State, are not commercial but public nature."; and, 2. In article 42, included the following as second subparagraph: "public companies engaged in the exploration, exploitation or commercialization of non-renewable natural resources, or the transport and refining of hydrocarbons, may issue certificates of credit content, whose emission amount will depend on the projection of future income derived from the activity of the public company. Your registration in the land registry of securities market shall be subject to the provisions of article 21 of the securities market law. "."

Tenth fourth.-the law of consumer protection, article 47 shall be incorporated as the following final paragraph: "tariffs that charge institutions second supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 87"


financial or any other natural or legal person for all the activities and services inherent in the judicial or extrajudicial collection of overdue credit, must be previously agreed with the borrower at the time of granting credit. The fees for the judicial or extrajudicial collection shall not exceed annually the percentage determined by the Board on policy and monetary regulation and financial, that will be calculated on the value remaining from the original capital of the credit, taking into account market, segments, amounts, rates, deadlines, among others." 10th fifth-disposed of the following preasignaciones in the special law on telecommunications and the law on Civil Aviation: 1. in the Special Telecommunications Act, replaced article 37 with the following: "article 37.-the resources from the application of rates and charges for the use of radio-frequency as well as the resources of the funds that have been created under laws and regulations" They shall be deposited in the National Treasury single account".

2. in the Civil aviation law, replace article 31 with the following: "article 31.-five percent (5%) of the value of each gallon of fuel and lubricants for aviation that sell in the country for the use of any aircraft in international commercial service shall be deposited in the National Treasury single account".

Tenth sixth.-in the General Law of insurance, carry out the following reforms: 1. in the text of the law replacing "Superintendency of banks and insurance" for "Superintendency of companies, securities and insurance" and "Superintendent of banks and insurance" "Superintendent of companies, securities and insurance"; "

2. in articles 52 to replace "Bank Board" for "Board of and regulating monetary and financial policy";

3. replace article 67 by the following: "the funds to meet the expenses of the Court of audit in the area of private insurance and the contributions to the insurance fund private will be obtained from the contribution of 3.5% on the value of net of direct insurance premiums, which may be increased up to 5%, by resolution of the Board of policy and financial and monetary regulation and at the request of the holder of this control body" , in accordance with the powers in law for the adoption of the budget of the inspection body. The insurance companies will act as agents for retention of this contribution.

4. replace article 14 with the following: "(Art. 14.-El capital pagado mínimo legal para la constitución de las compañías que conforman el sistema de seguros será el siguiente: a), insurance will be $ 8' 000.000 (eight million dollars of the United States of America)." (b) reinsurance will be 13 million dollars of the United States of America (USD $13 ' 000.000, 00). In the case of companies operating in insurance and reinsurance, the capital will be 13 million dollars of the United States of America (USD $13 ' 000.000,00); Paid-in capital should be provided in money. The Board's policy and monetary regulation, and financial, at any time, to increase the minimum capital requirements. ";

5. merge then article 14 other innumerado read as follows: "Art...." -Paid-in capital will not be reduced to an amount less than the legal minimum and will be increased by a decision of the general meeting of shareholders or by order of the Superintendent of companies, securities and insurance. The increase in paid-in capital resources will come exclusively from: to) cash contributions that may not come from loans or other direct or indirect financing that have been granted by the company;

(b) of the surplus of the legal reserve; (c) of the accumulated profits; and, (d) the capitalization reserve accounts, which are always intended for this purpose. "The Superintendency of companies, values and safe will verify the legality of the payment of said capital, its origin and application of them funds and of set it contrary will leave earlier said increase of capital." 6 replace article 22 with the following: technical reserves regime; " (b) risk management system; (c) technical patrimony; and, (d) mandatory investments. Capital-adequacy requirements will be reviewed by the Board of policy and financial and monetary regulation.

88 - Second supplement - official record No. 332 - Friday, September 12, 2014 Board policy and financial and monetary regulation issued regulations that may be necessary to apply the solvency regime laid down in this article; being able to determine the terms, conditions, measures and actions that are necessary for its implementation; in order to avoid or mitigate the risk exposure of insurance companies and companies of reinsurance for the benefit of policyholders. Insurance companies and reinsurance companies, shall constitute technical reserves for risks in course, mathematical reserves, catastrophic reserves, reserves for outstanding liabilities and reserves by deviation of claims; defined by regulations issued by the Board, who will determine its methodology. The technical reserves should cover all of the risks assumed by insurance companies and reinsurance companies. The Board may create another type of technical reserves or modify existing ones and its calculation formula according to the dynamics of the development of the insurance business. The regime of technical heritage includes the determination of required, minimum technical heritage which is set based on a level of adequate capital intended to protect insurance companies and companies of reinsurance from the effects generated by deviation in frequency and severity of risk subscription, as well as any other risk and in particular the risk of credit arising from reinsurance operations. The demands of the regime of technical heritage set forth in this chapter, must be met in addition provisions relating to minimum capital established by law and other regulations issued by the Board of policy and financial and monetary regulation in this regard. All insurance company and reinsurance company shall establish efficient and effective schemes of management and control of technical risk, market, liquidity, credit and operating"; 7 replace article 23 with the following: "article 23.-insurance companies and reinsurance companies should invest its technical reserves, at least sixty per cent (60%) of the paid-in capital and legal reserve, in titles in the market of securities, investment funds, financial instruments and real estate, in the segments and percentages defined by Board policy and financial and monetary regulation" through general norms, ensuring an appropriate combination of risk, liquidity, security and return. It is forbidden to insurance companies and reinsurance companies trade shares or convertible bonds with institutions of the financial system. In any case, investments in financial instruments issued by institutions of the financial system may exceed 10% of the total of investment instruments; the Board will define the maximum percentages of other investments. "; 8. delete article 24; 9 replace article 25 with the following: "article 25.-the Superintendency of companies, securities and insurance will determine the clauses that obligatorily contain policies, as well as the forbidden clauses, which will be free of effects and shall be taken in case of non-written." The rates of premiums and TechNotes will require prior authorization of the Superintendency. Copies of policies, rates and notes will be remitted to the Superintendent, at least thirty days prior to use, for purposes of verification, control and sanction. Policies, minimum must conform to the following conditions: to) standards of equality and equity between the Contracting Parties; (b) wrap its contents to the legislation on insurance contract in the commercial code, the Supreme Decree No. 1147, published in official register no. 123 of December 7, 1963 to the present law and other provisions that may be applicable;

(c) be drafted in a clear manner, so that is easy to understand for the insured; (d) typographical characters must be easily legible; (e) include the basic coverages and exclusions with the characters featured in the policy; f) include the list of basic documents needed for the claim of an accident; (g) include a clause indicating the choice of the parties to submit to mediation or arbitration decision the differences arising in the contract or insurance policy; and, h) indicate the currency in which premiums are payable and claims. The quote to the sale of the foreign currency value will be the current at the effective date of payment of bonuses and allowances.


When General conditions of policies or their special clauses differ from the rules laid down in the legislation on the contract of insurance, shall prevail on those of the latter. The premium rates are subject to the following principles: 1. result from the use of statistical information that meets requirements of uniformity and representativeness; or, second supplement - official record No. 332 - Friday, September 12, 2014 - 2 89. The result from reinsurance companies of recognized technical and financial support. Every contract of insurance law of consumer protection standards are understood to be incorporated. Shall be not written any clause that opposes the laws, to the detriment of the insured, or the prohibitions which first determine the Superintendent in accordance with subsection of this article. "10 merge then article 27 the following innumerado article:" Art.... "" -The Board of policy and financial and monetary regulation will issue corresponding regulations for the hiring of reinsurance, and must define the conditions and maximum percentages of assignment of insurance and reinsurance by industry, according to the characteristics of the risks covered, profile of the portfolios, accidents of the same and other necessary technical factors. Can also define cases in which reinsurance contract is not necessary. "; 11. merge then Article 31 other innumerado read as follows: "Art...." -Companies of insurance, reinsurance, advisors producing safe, inspectors of risks, ajustadoras claims and reinsurance intermediaries will have internal control conducted by an auditor qualified by the Superintendency of companies, securities and insurance. The internal auditor shall submit their control reports to the company and to the Superintendency of companies, securities and insurance, according to the standards of control issued by the Agency. "Them people natural that provide their services as advisors producers of safe, inspectors of risk, adjustment of claims e intermediary of safe must exercise its activity low criteria of seriousness, accuracy, efficiency and effectiveness"; 12 replace the first subparagraph of article 32 with the following: "insurance companies, reinsurance, are required to hire external auditors rating that must be legal persons which are subject to the standards of qualification and issuance of reports issued by the Superintendency of companies, securities and insurance, as well as signatures.", · " 13. merge then article 33 other innumerado read as follows: "article.-insurance and reinsurance companies must rely on actuarial services, which may be provided by natural or legal persons, qualified by the Superintendency of companies, securities and insurance, in order to generate the TechNotes of the offered products and comment on the adequacy and sufficiency of the amounts contained in financial reporting , methodology, or on the hypotheses assumed for these. The Superintendency of companies, securities and insurance, will have full checking powers with respect to the actuarial studies carried out and required requirements minimum technical reports must meet. "; 14 replace article 40 with the following: "article 40.-the fines that it imposes the Superintendency of companies, securities and insurance, in any case, will be less than thirty (30) basic salaries unified, nor greater than 5% of sales reported the entity infringing, with the exception of which impose on employees or officials, which may not be less than three times wage basic unified worker in general." The sanctions will graduate in view of the seriousness of failure, damages caused to third parties, neglect, intentionality, recidivism or any other aggravating or mitigating circumstances. The imposition of the sanctions set out in this law, is independent of any other sanctions that could be applied for acts in violation of other provisions and does not limit the application of civil or criminal sanctions which apply in accordance with the law. In any case a person can be sanctioned administratively twice (2) the same entity, for the same cause, without prejudice to the criminal actions that were relevant. The fines imposed on the company, its legal representative, administrators, directors, employees or officers, must be paid by titles that can be charged through the coercive jurisdiction or by any other means. "; and, 15. Article 42 be replaced by the following: ' article 42.-insurance and reinsurance companies have the obligation to pay the contracted insurance or the share of loss properly ascertained, as the case may be, within the period of thirty (30) days of the claim by the insured or beneficiary, accompanying documents determined in the policy. " Insurance and reinsurance companies may object in writing and accordingly, within the above mentioned term total or partial payment of the loss, however if the insured or the beneficiary is paving to the objections of the insurance company, this will pay immediately agreed compensation. If the insured or beneficiary is not paves the objections you can file a complaint with the Superintendency of companies, securities and insurance, so that this requires the insurer justifying its refusal to pay. Within a period of 30 days of filed the claim, and completed documents to 90 - second supplement - official record No. 332 - Friday, September 12, 2014 support it, watchdog will administratively settle the controversy, accepting totally or partially the claim and ordering the payment of the claim within the period of 10 days of resolution, or denying it. The resolution may be contested at Headquarters administers - tiva pursuant to article 70 of this law. The non-ordered payment will be causal of compulsory liquidation of the insurance company. Interposition of actions or remedies will not suspend the effects of the decision ordering the payment. Court, the insured whose claim has been denied may sue the insurer before the courts or resorting to alternative dispute resolution procedures stipulated in the insurance contract. The insurer, in turn, can sue the revocation or cancellation of the decision that forced him to the payment of compensation, jurisdiction in contentious administrative, only when you have honored the payment obligation. If you have been revoked or annulled the resolution to obtain the refund of the paid compensation, the insurer must necessarily also sue the insured or beneficiary has built it, who will intervene as a party to the trial. The presentation of the claim that this article regulates suspends the prescription of the action that the insured or the insured against the insurer, to the notification of the decision to the insurer. All claims of policyholders against insurers are subject to the preceding rules. Does les not apply, therefore the procedure regulated by the organic law on defence to the consumer. Additionally, trying to be faithful compliance with the contract and good insurance policies using the advance contracted on behalf of the entities referred to in article 1 of the organic law of the national system of public contracting, insurance companies must issue them fulfilling the requirement that it be unconditional, irrevocable and immediate payment, so they have the obligation to pay the value of the contracted insurance , within a period of (ten 10) days to request in writing that the insured or the beneficiary require execution. It is prohibited to insurance companies in the case of policies mentioned tapped for the benefit of institutions provided for in article 1 of the organic law of the national system of public contracting, require the insured to pay warranty, additional documentation or the fulfillment of any administrative procedure, which is not provided for in this law and its regulation. Any clause to the contrary, be understood as unwritten. Failure to comply with these provisions will result in, also the compulsory liquidation of the insurance company ";

16 be replaced with the title of chapter XI the following." The regularization and intervention";

17 Add the following article innumerado below article 53: "Art...." "-The Superintendent may require the intervention of companies related and subject to its control and supervision according to this law, in accordance with the rules of section XI of the law of companies." 18. as the last subsection of article 60, included the


Next: "from the liquidation, are considered expired term and active operations with persons linked to the institution, without requirement are required. In the event of non-payment, the liquidator will charge coercive by obligation, and can conform to the principles and procedures of the labour rights of Defence Act. In relation to passive operations related, it will not be enforceable but then paid all other creditors specified in article 62. Will be ineffective any administrative or judicial decision that violates this principle." 19 added as the last subparagraph in article 64 the following: "in order to conclude the process of liquidation, the Superintendent in accordance with standards issued by the Board may authorize or provide that the assets and liabilities of entities that are in liquidation, be provided temporarily or irrevocably to a trust so that can be jointly administered assets and liabilities from such institutions , with the purpose of fulfilling obligations to the extent carried out assets. The Superintendency continue jurisdiction enforced by the escrow account, to which raised is given his to fulfill those obligations. "; 20. Add is as article innumerado below of the 65, the following: "Art...-them representatives legal or conventional, vocal of the directory, administrators, and shareholders with 12% or over participation in the capital, or that exercise influence significant in it administration, will be responsible for personal and payment by the deficit that is determine to cover them passive of the entity in liquidation." For the payment of this obligation, the Superintendent can be done through coercive, prior duly reasoned ruling whose challenge shall not suspend the charging order. "21 Article 70 replaced by the following:" article 70.-resolutions issued by the competent body of the Superintendency of companies, securities and insurance, in the field covered by this law, may be brought appeal to the Superintendent, within the period of ten (10) days second supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 91 from the date of notification of the decision. "" The decision taken by the Superintendent will cause State, without prejudice to the contentious administrative, and provisions of article 42 this law. Not applicable recourse with respect as determined by the Superintendent of companies, securities and insurance, or in case that his pronouncement has been issued in the first administrative instance. Remarkably, through review, the Superinten - sign companies, securities and insurance may revoke or reform any administrative act, either ex officio or on the occasion of the presentation of the respective resource, within a period of one year, to be counted from the notification of the Act. The only review will take place if the contested administrative act has been given with obvious error in fact or law which appears the documents appearing on the record or express legal provisions; or, when, subsequently, documents of transcendental value ignored aparecieren to issue the Act or resolution which concerned. "." 22 replace article 62 with the following: "article 62.-in all settlement payments are subject to the following order of preference: 1. debt maturities, claims and values of rescue in the field of life, in accordance with the respective policies and litigation costs;"

2. the obligations for claims in General, will be considered privileged on all credits and common obligations. This priority does not affect the rights of secured creditors on pawned goods. The Superintendent of companies, insurance and securities apply provisions containing in this respect the code of Civil procedure;

3. the values that are due to workers for wages, salaries, compensation, reserve funds and pension Jubilee expense to the employer, up to the amount of settlements that practice in terms of the labour code, and the obligations to the Ecuadorian Institute of Social security arising from labour relations;

4. the values paid by the deposit insurance corporation, liquidity Fund and Fund of the private insurance; and, 5. Taxes and contributions. The other credits in accordance with the order and form determined in the Civil Code, insofar as they are relevant will be then handled. The Superintendent of companies, securities and insurance may require partial payments, in accordance with the funds available to the liquidation. "Seventeenth-under the securities market law made the following reforms: 1. replace in the text"Registration of the securities"law by"Cadastre public of el Mercado de Valores";"

2. replace in the text of the Act "Board of regulation of the stock market" by "Board of and regulating monetary and financial policy";

3. replace in the text of the law "Superintendency of companies and values" by "Superintendency of companies, securities and insurance";

4. replace in the text of "Superintendent of companies and securities" law "Superintendent of companies, securities and insurance";

5. in article 2 replace the last paragraph by the following: "any limitation to free negotiation and movement of values not established by law, shall have no legal effect and shall be unwritten. For negotiation and movement of securities issued by entities and public-sector institutions should observe in whatever applicable provisions in the organic code of planning and public finance. ";

6. in article 4 delete the third paragraph; 7 delete articles 5, 6, 7 and 8; 8. in article 9 make is the following reforms: 1. in the numeral 12 replace is the text "the regulation" by "standards"; and, 2. Delete paragraph 9.

9. in article 11, replace the fourth subparagraph by the following: "the securities that are issued to undergo a process of tender must be dematerialized. Securities issued by public sector entities may be physical if they have the authorization of the Board of monetary and financial regulation. ";

10. in article 21, joining the following sub-paragraph: "Except the inscription detailed in the preceding article titles of the Central Bank of Ecuador TBC.";

11. in article 57 removed as follows; "and, over the counter to the rules of a general nature issued the N.V.C."

12. in article 58, paragraph 1 replace: "in the stock and over-the-counter markets" by "in the stock market";

13. in article 59, paragraph 3 deleted the following: "except in the cases provided for in paragraph 5 of article 58 of the legal body or when is made through the mechanisms established in this law" 92 - second supplement - official record No. 332 - Friday 12 September 2014 14. In the third innumerado article "Constitution of warranty" chapter II "of clearing and settlement" fourth paragraph added after article 73 of the securities market law, be removed.

15 in article 76, carry out the following reforms: 1. the literal b) be removed in the following: "exclusively for such funds, the administrator may act as issuer of securitization."

16 in article 79, literal to) then "collective Fund" included ", quoted"; and, in the literal b) then "collective funds" include "or exchange-traded funds";

17. in article 115 replace last paragraph with the following: "For the fulfillment of its purpose, the autonomous patrimony get financing from institutions of the financial system, through the issuance of securities set out in this law, and through other mechanisms governing board."; and, 18. Removed the last paragraph in article 197. 10th eighth-in the Social Security Act, carried out the following reforms: 1. replace article 82 by the following: "article 82.-credits of IESS and BIESS retention-appropriations in favour of the Ecuadorian Institute of Social Security and of the Bank of the Ecuadorian Social Security Institute, including the interests of mora and fines, is collected through deductions from the salaries and wages of the members. At the request of the respective institutions, employers and official payers are obliged to deduct the corresponding dues under his personal responsibility. ";

"2 the last subparagraph of article 306, replace with the following: the Superintendency of banks, according to article 213 of the Constitution, will control economic activities and services that provide public and private social security institutions including the supplementary funds social security public or private, serve the general interest and are subject to current legal standards."

Tenth ninth.-on the law of the Bank of the Ecuadorian Institute of Social Security, carry out the following reforms: 1. replace 'Bank Board' in the law by "Board of"


Policy and monetary regulation and financial"; 2. in articles 5, 19, 20 and fourth general provision replace "Superintendency of banks and insurance" by "Superintendency of banks".

3. replace the penultimate paragraph of the article 4 by the following: "Board policy and monetary regulation and financial, the Superintendence of banks and the Superintendency of companies, securities and insurance, in the areas of certain in the organic code of monetary and financial competence, may authorize the Bank activities additional stipulated in this article."

4. replace article 8, by the following: "article 8-Directory-directory of the Bank of the Ecuadorian Social Security Institute, will be formed by four (4) members: as delegate of the President of the Republic shall be the Chairman of the Board of Directors of the Instituto Ecuatoriano de Social Security who will preside over it and will have a casting vote, the head of the Secretariat of State in charge of economic policy or its delegate" one (1) delegate from affiliated asset and one (1) delegate from retirees or their substitutes; These last two chosen by public contest of merits with the direction and supervision of the Council of citizen participation and Social Control, who will last 4 years from the date of their possession and opposition.

Principal, delegates and alternate members shall be qualified prior to his possession by the Superintendency of banks." 5. in article 10 paragraph 2, replace "Superintendency of banks and insurance" by "Superintendency of banks"; and, in paragraph 4, replace "Superintendency of banks and insurance" for "Board of and regulating monetary and financial policy";

6. in article 12, replaced the numerals 1, 4 and 7 by the following: "1. the established in the organic code of monetary and financial affairs and the securities market law", "4. request to the Board on policy and monetary regulation and financial, Superintendence of banks and the Superintendency of companies, securities and insurance, the corresponding authorization to implement new operations" , “7. Appoint and dismiss General Manager and internal auditor. "; in paragraphs 8 and 19 replace "Superintendency of banks and insurance" by "Superintendency of banks"; and, in paragraph 18 deleted: 'or when it requires it;';

7. in article 14, shall be incorporated as second subparagraph as follows: "the Board members will act only in the meetings which are convened and will participate in the committees that are required by legislation."

8 replace article 15 with the following: "article 15-General Manager, Bank-the Bank's General Manager shall be appointed by the directory, the period, powers, duties and functions shall be established in the Statute of the Bank." The General Manager shall act with voice without vote in the directory. Before getting into features, you must be qualified by the Superintendency of banks."

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 93 9. Article 18 be replaced by the following: "article 18.-Control-the Bank will be subject to the control and supervision of the Superintendence of banks and the Superintendency of companies, securities and insurance, according to the nature of the activities detailed in article 4 of this law."

10 replace the second general provision with the following: "second.-resources of the funds public pension of the Ecuadorian Social Security Institute will be transferred to the Bank, in the form and with the frequency established by the Board on policy and monetary regulation and financial, in the rules that will be issued for the purpose."

Twenty-in the coding of the law of regime tax internal, make is them following reforms: 1. in the numeral 3 of the article 10 after the phrase "credit tax" add is ", or them sanctions established by law";

2. in paragraph 9 of article 10 Add the following final paragraph: "For the case of the managers of the entities of the national financial system, will only be deductible remuneration and social benefits established by law."

3. in paragraph 11 of article 10, replace the following text: "the provisions will be deductible up to the amount that the Bank Board, for the Financial Sector or the Board of regulation of the Financial Sector people and solidarity, for the Popular and Solidary Financial Sector, established it. If the Bank Board or the Board of regulation of the Financial Sector people and solidarity, in their respective sectors, established that the provisions have been excessive, it may require the reversal of the surplus; This surplus will not be deductible", by the following:"provisions will be deductible up to the amount established by the Board of policy and financial and monetary regulation.";

4 in article 41, paragraph 2 carried the following reforms: a) in subparagraph b) replace fifth paragraph with the following: "societies, the undivided forced to take accounting and natural persons obliged to take accounting which obtain income from agricultural activities or development of real estate projects for the social housing, not considered in the calculation of the advance , exclusively in the field of assets, the value of the land upon which to develop such activities. "; (and b) replaced the literal j) with the following: "societies, as well as the undivided and natural persons, forced to take accounting, income is obtained in the form of commissions or similar, marketing or distribution of goods and services, solely for the purposes of the calculation of the advance in this activity, be regarded as taxable income exclusively the value of commissions or similar perceived directly" , or through discounts and margins established by third parties; and as costs and deductible expenses, those other than the cost of the goods or services offered. Yes all taxable income and costs and expenses deductible, from these other operations shall be considered for the remaining operations of these contributors. In the exercise of its powers, the tax administration shall verify the effective implementation of this provision."

5. in article 55 replace paragraph 16 with the following: "The gold acquired by the Central Bank of Ecuador directly or through public and private economic agents duly authorized by the Bank itself."

6 replace the last paragraph of article 44 of the law of tax with the following: "case of interests of any type of financial returns generated by operations of mutual and, in general, all kinds of loans of money, made by people who are not banks or other intermediaries under the control of the Superintendence of banks, financial" the paying entity shall be the retention on the value paid or credited into account. Interest and financial income paid to banks and other entities subject to the supervision of the Superintendence of banks and the Popular and solidary economy, will be subject to withholdings at source, in the percentages and through mechanisms that establish the internal revenue service through resolution. "."

Twenty first-in the Act of creation from the internal revenue service, delete article 19. Twenty second.-in the companies law, carried out the following reforms: to) in article 371, delete the first subparagraph; and, b) deleted the article 454. Twenty third.-in the hydrocarbons law, article 54, delete the following sentence: "intended to promote the research, development and scientific and technological services in the field of hydrocarbons and in general of mining, by the Ministry of industry." Twenty fourth.-mining law be the following reforms: to) article 49 be replaced by the following: 'article 49.-right of free-market holders of mining concessions can be marketed freely their production inside or outside the country. However, in the case of gold from small-scale and artisanal mining, the Central Bank of Ecuador 94 - Second Supplement - official record No. 332 - Friday, September 12, 2014 will be marketing directly or through public and private economic agents previously authorized by the Bank.

The Board on policy and monetary regulation and finance through regulation will establish the preferential right of purchase of gold by the Central Bank of Ecuador public and private economic operators authorised by the Bank. '; and, b) article 149 be replaced by the following: ' article 149.-purchases of gold.-purchases of gold by the Central Bank of Ecuador in either directly or indirectly, as well as purchases made by public and private economic agents duly authorized by the Bank itself, will be taxed with value added tax rate zero. "


Twenty fifth-in the law of the national system of registration of data public, article 34, delete the literal c) and add the following General layout: "Fourth: tariffs that generate and raise the commercial registers at the national level, shall be deposited in the National Treasury single account". Twenty sixth.-the law of modernization of the State, privatization, and provision of public services by the private sector, be removed in article 39. Twenty seventh.-in the economic transformation of Ecuador (Trole I) Act repealed the following chapters: I, II, III, IV, X, XI, XIII and XIV, article 99 literals b), c), d), e), f) and j). Twenty-eighth-in the law for the promotion of investment and citizen participation (Trole II) repealed the following titles: 2, 4, 14, 15, 16, 17, 18, 19, 20, 21, 25, 26, 27, 28, 29 and 31. Twenty ninth.-in the tourism law, replace literal e of article 40 with the following: "e) a fee for the issuance of each ticket to travel from Ecuador to anywhere overseas. "The value of this rate its regulation and its segmentation will be set by the national authority of tourism." Thirty-in the forestry law of conservation of natural Areas and wildlife, carried out the following reforms: 1. delete the second paragraph of article 1; 2. replace article 76 by the following: "(Artículo 76.-Para el financiamiento de los programas forestales a cargo deel Ministerio deel Ambiente, se contará con los siguientes recursos: a) the allocation of resources which will consist in the General budget of the State;" (b) the resources raised by concept of allocation of lands, forests, forestry and fauna and flora, industrialization, marketing and others, in accordance with the provisions of this law. Exceeding the financing of forest programmes will go into the National Treasury single account;

(c) revenue from fines, forfeitures, or compensation for breaches of this Act; (d) the proceeds from the sale of plants and vegetative material from nurseries, as well as of other forest products, exploited or industrialized by the Ministry of the environment;

(e) the national or international loans for forestry development; (f) voluntary contributions coming from any source, the legacies and donations; (g) the resources obtained by the granting of patents for tourist operation in national parks and other similar permits;

(h) the proceeds from the sale of licenses for hunting, collection and marketing of wildlife; (i) the rights of visitors to protected natural areas; (j) the resources from internal and external loans; (k) them legacies, donations and contributions voluntary in favor of the Institute, as well as the funds generated by the negotiation of the debt external in favour of the conservation of them resources natural; and l) other resources generated by the implementation of this Act. "; 3. delete article 77; and, 4. Article 97 be replaced by the following: "article 97.-seized forest products will be sold by the authority sanctioning immediately dictated the decision of first instance, under his personal responsibility." The value of the sale of the confiscation shall be deposited in the National Treasury single account. The means of transport used for these purposes, will be retained until the completion of the administrative or judicial procedure on the forestry product."

Thirty first.-in the narcotic and Psychotropic Substances Act, carried out the following reforms: 1. delete paragraph 3 of article 9; and, 2. Replace article 10 by the following: ' article 10.-destination of the fines-resources that are recaudaren by the fines imposed for infringements to second supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 95 this law shall be deposited on a monthly basis to the National Treasury single account. "

Thirty second-law of prevention, detection and eradication of the crime of laundering of assets and the financing of offences, be the following reforms: 1. delete the literal f) of article 6; and, 2. Incorporated as general provision eighth as follows: "Eighth-resources that are recaudaren by the fines imposed for infringements of this law, shall be deposited in the National Treasury single account.".

Thirty third.-in the Act of creation and operation of the Ecuadorian service of training professional SECAP, article 14, removed the literal a) and b). Thirty fourth.-in the special law of the Sector coffee, in article 8, delete the literal to). Thirty-fifth.-replace article 4 of the law on free maternity care and attention to children by the following article: "Art-4 the resources needed for the implementation of this law, they must be delivered by the State charged to the General budget of the State and shall not be less than those allocated in the year immediately prior to the entry into force of this Act" , more an increase estimated on the basis of the increase in the projected service coverage. The competent Ministry, in accordance with the law will present the corresponding budget planning". Thirty-sixth.-the organic law for the closure of the Banking Crisis of 1999 following reforms carried out: 1) add the following provision after the fifth paragraph of article 14 of the basic law for the closure of the Bank Crisis of 1999: "in the case of the debtors of the Central Bank of Ecuador, which are submitted within the time limit established by law documentation substantiating payments that have not been registered they may submit bills for legal studies, unionization companies responsible for collection actions or lawyers who exerted collection activities, statements, payment receipts, deposits or checks turned and charged in favour of the extinct financial institutions. The debtor must submit an affidavit that will detail the documents attached and shall indicate the payments correspond to which operation, and will be responsible for his statements and the effects that these have on the process of recovery and liquidation, under penalty of perjury. The documentation may be submitted up to 30 days after the publication of this code. The Central Bank of Ecuador will respond in 60 days of its submission."

(2) add the following provision after the sixth paragraph of article 14 of the basic law for the closure of the Bank Crisis of 1999: "for debtors that have played host to the recalculation and having two or more operations, at the request of the debtor, may apply the remnants of a debt, understood as the value of fertilizers made less initial capital of a same debt , as a principal payment of other debts to keep the debtor with any financial institution that is extinct. Not be considered as fertilizers made from extinct financial institutions that granted to cancel dividends of other debts and credits which were not redeemed by the debtors. This provision also apply to portfolio accrued with the national Finance Corporation. The ECB and the CFN will compensation that apply and shall notify the Court of audit for the purposes established by the law. As provided for in the previous paragraph shall apply only to those debtors for which the total amount of the initial capital of their operations is maximum one hundred fifty thousand dollars. "3) add the following paragraph at the end of article 14 of the basic law for the closure of the Bank Crisis of 1999:"(Las operaciones de arrendamiento mercantil celebradas con las instituciones financieras extintas recibirán los beneficios establecidos a continuación: a) if the failure to pay good was restored to the liquidated financial institution or the national financial Corporation "" the obligation will be extinct.

b) if the good is located within the property transferred to the Central Bank of Ecuador and the debtor has paid all of the obligation, and opted to purchase will proceed to transfer of the property to the debtor.

(c) if the property is in usufruct of the debtor, at the request of the commercial lease contract will be terminated and will be the same in a portfolio operation by the amount of the outstanding obligation. Once payment of the obligation shall be to the transfer of the asset to the debtor. In case of failure to comply with the Convention of recalculation, the furniture will be topped and real estate will be transferred to the entity that corresponds, as established by this law. "(4) add the following provision after the second paragraph of article 15 of the basic law for the closure of the Bank Crisis of 1999:"contracts for the recalculation can sign up to ninety days after the publication of this code. " Leaves without effect the deadline of 120 days in the second paragraph of the 96 - second supplement - official record No. 332 - Friday, September 12, 2014 present article. In no event will received requests for claims that have not been submitted within the prescribed original-mind in law."

(5) add the following provision to the end of the


Article 19 of the basic law for the closure of the Bank Crisis of 1999: "Will be handled requests for articles 18 and 19, presented only until 30 days after the publication of this code".

Thirty-seventh.-in the comprehensive code of criminal carried out the following reforms: 1. in article 278 of the code criminal Integral replace the fourth subparagraph by the following: "are responsible for embezzlement the or the officials or servants, the or the officials, managers, executives and employees of institutions of the national financial system that carry out financial intermediation activities (as well as members or members directories and boards of Directors of these entities, with abuse of office functions: to) have fraudulently, to be appropriated or distract the funds, goods, money or private effects representing them; (b) they had intentionally executed operations which reduce assets or increase in liabilities of the entity; or, c) have any way to freeze or arbitrary or generalized retention of funds or deposits in the institutions of the national financial system, directly causing a financial loss to its partners, depositories, sharers or owners of the property, funds or money. In all these cases will be sanctioned with penalty sentence of freedom from ten to thirteen years.

If the subjects described in the preceding paragraph cause the fraudulent bankruptcy of entities of the national financial system, they will be punished with imprisonment from ten to thirteen years."

2. in Article 557 of the organic comprehensive criminal code, paragraph 3, after "for the effect." added: "Fraudulent financial bankruptcy of person legal financial with negative equity, the proceeds of the auction will be for the payment of the debts of the entity rights."

Chapter 2 Derogatorias without prejudice to the orderly in the transitional provisions, the date of entry into force of this code, all rules are hereby repealed insofar as they oppose the provisions of this code. In addition, expressly repealing the following laws with all its reforms and regulations: 1. codification of the law on the Ecuadorian Housing Bank and the mutual benefit associations of savings and housing loans;

2. law of General warehouse; 3. law of checks; 4. articles 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 13A, 14, 15, 19 and 20, General provisions and transitional provisions of the law of creation of the network of financial security;

5. law of creation of the credit guarantee scheme; 6. law of water development in Manabí; 7. law on restructuring of debts outstanding of payment with the Banco Nacional de Fomento and capitalization of the institution;

8 Rehabilitation Act of producers who are in arrears with the Banco Nacional de Fomento and capitalization of the institution;

9 Act of reordering in economic terms, in the Tributario-Financiera Area; 10. emerging law of support to the productive sectors of the border lace; 11. special law of rehabilitation of the Bank's loans S.A. In liquidation; 12 special law for capitalization and sale of Banco Continental S.A.; 13. General Law on institutions of the financial system; 14. interpretative law to the special law of rehabilitation of the Bank of loans SA, in liquidation; 15. organic law of the national financial Corporation; 16. organic law of monetary regime and the State Bank; 17. organic law of the National Bank of development; 18. law for the protection of the Social Capital that can provide for the rehabilitation, clients harmed with the liquidation of a financial institution;

19 Act regulating the issuance of mortgage; 20. law reform to the codification of the law of monetary regime and the State Bank; 21. law alternative to the law of the Institute Ecuadorian of credit education and scholarships; 22. Article 5 of the free maternity and child care Act; 23. law of development of agricultural roads and hand-building of work; 24 law reform the law of development of agricultural roads and hand-building work and second supplement - official record No. 332 - Friday 12 September 2014 - 97-creation of the National Fund of environmental sanitation, National Fund afforestation and reforestation;

25 article 6 literal d) and f) of the law of afforestation and reforestation of the province of El Oro; 26. law of creation of the Commission for the development of the area north of Manabí CEDEM; 27. Law No. 70-06, published in official register no..

413 of 17 April 1970; 28 law 76 published in official register no. 457 of 13 June 1990; 29 law of waiver of interest Foncultura debtors; 30. Decree Supreme No. 623 - A published in official register no. 155 of August 23, 1976.

TRANSITIONAL provisions first.-validity of resolutions and regulations. The resolutions contained in the codification of resolutions of the Superintendency of banking and insurance and the banking Board, the regulations contained in the code of regulations of the directory of the Bank Central of the Ecuador, regulations issued by the Board of regulation of the Financial Sector people and solidarity, and the regulations issued by the inspection bodies, shall remain in force throughout what not oppose provisions in the organic code of monetary and financial , until the Board of policy and financial and monetary regulation resolved that apply, depending on the case. Second.-servers. Public servants who at the date of issue of this code, in any form or for any reason to work or provide services to the Bank Board, directory of Central Bank, Board of regulation of the Sector financial people and solidarity, evaluation, qualification and selection, according to the institutional requirements and this code, they can advance to form part of the Ministry of State in charge of the Presidency of the Board's policy and monetary regulation and financial. In the term of 180 days from the enactment of the present Code, servers public or workers, who provide their services to the executing unit of the free maternity and childcare act under any modality, can spend, following evaluation of the Ministry of public health, this entity. The skills, assets, rights and obligations which remain in force to the present date will be assumed by the Ministry of public health. Resources that for effect of free maternity and childcare were handled by the unit before mentioned, are transferred inventory prior to the Ministry of public health.


Third.-applications, claims and remedies. All claims and resources and other paperwork filed before the entry into force of this code, with the Board of the Central Bank of Ecuador and Board of regulation of the Financial Sector people and solidarity shall be resolved by the Board of policy and financial and monetary regulation, within the period of one hundred and eighty (180) days from the entry into force of the code. to this effect, these collegiate bodies be transferred within the period of thirty (30) days, the administrative records of the claims and remedies. The Board may extend the deadline to meet for up to one (1) year. The Bank Board will continue acting to resolve all claims, resources, and other administrative procedures which are knowing the date of entry into force of this code, within the period of one hundred and eighty (180) days, renewable at the discretion of the Board of policy and financial and monetary regulation. The Bank Board since the entry into force of this code will no longer meet the challenges against regulatory acts. Actions against regulations issued by the Bank Board, the Board of the Central Bank of Ecuador and the Board of regulation of the Financial Sector people and solidarity, will be brought to the Board's policy and monetary and financial regulation. Fourth: networks of payment and clearing systems. Private payments networks and private compensation systems that are operating in the national financial system must be labeled auxiliary system of payments and authorization of the Central Bank of the Ecuador that supports its operations, within a period of one (1) year from the entry into force of this code. Fifth.-auxiliary systems of payment authorization. Within a period of ninety (90) days from the entry into force of this code, entities that are operating as auxiliary systems of payment, must request to the Central Bank of Ecuador the authorization to continue to operate, in accordance with the provisions of this code. Sixth.-advertising auxiliary systems of payment. The Central Bank of Ecuador, within a maximum of one hundred and eighty (180) days from the entry into force of this code, shall publish in a newspaper of national circulation and in the institutional website, authorized to operate as auxiliary systems of payment institutions, as well as those found in the authorization process. Seventh.-clearing and settlement entities of the Financial Sector people and solidarity. Within a maximum of one hundred and eighty (180) days from the entry into force of this code, the Central Bank of Ecuador established the mechanism of clearing and settlement to be applied by the entities that act as auxiliary systems of payment, for operations carried out the popular and solidary financial sector entities. Eighth.-credit guarantee scheme. The credit guarantee system referred to in the law of creation of system of credit guarantee, will continue to operate in accordance with the provisions applicable at the date of 98 - Second Supplement - official record No. 332 - Friday, September 12, 2014 entry into force of this code, until its transformation into credit guarantee system referred to in article 149, according to regulations issued by the Board of policy and financial and monetary regulation. Within the period of ninety (90) days of entry into force of this code, the national guarantee fund trust constituted by the national financial Corporation on the basis of article 65 of the organic code of production, trade and investment, must be reformed in order to integrate it to the credit guarantee scheme referred to in article 149. Ninth.-duration of authorization certificates. Them certified of authorization issued by the Superintendency of banks and insurance, that protect the operation of them entities financial public and private, with exception of them entities of services auxiliary of the system financial, that currently are operating, are valid and will be current until are replaced by them authorizations for the exercise of activities financial and them corresponding permissions of operation to which is refers the article 144 agreement with entity types, the fulfillment of heritage, liquidity, solvency and capital levels and other requirements determined in this code, and in the regulation issued by the Board of policy and financial and monetary regulation. The replacement of certificates by the authorizations must be made within the period of eighteen months from the entry into force of this code. The Superintendence of banks, in accordance with Board policy and financial and monetary regulation, may extend the term up to eighteen months, only once, for duly justified reasons. Within these time limits, private financial institutions must reform their social status and perform other necessary actions to comply with the provisions of this code. To comply with this transitional provision institutions public and private financial will merge, become, or will cease to operate and will initiate a process of liquidation in accordance with standards issued by the Superintendency of banks." Tenth.-public register of financial institutions. Within the period of ninety (90) days from the entry into force of this code, the Superintendents must convert database of entities under its control in the public registry provisions of this legal body. Tenth first.-publication of the superintendencies. The publication of statistical and financial information provided for in articles 221, 222, and 224, the Popular and Solidary Financial Sector entities will be posted and reported by the Superintendency of Popular solidarity, economy of progressive form, as well as the supervision entities from the financial sector people and solidarity, within the period of three (3) years from the entry into force of this code.

Tenth second.-deposits and liquidity Fund Insurance Corporation: the Corporation for deposit insurance and liquidity fund created by the Act of the financial security network will be transformed in the Corporation for the insurance of deposits and fund liquidity sectors financial private and popular and solidarity, within the period of sixty (60) days from the entry into force of this code. Until you perfect this transformation, the deposit insurance corporation and the Fund's liquidity will continue to operate in accordance with its law of creation. 10th third.-deposit insurance, liquidity Fund and Fund of private insurance: until new deposits and liquidity fund insurance trusts arranged in this code constitute, will continue to operate the trust business of the funds of deposit insurance and the mercantile trust of investment fund's liquidity. Once constituted new deposits insurance trusts, liquidity Fund and Fund of private insurance in this code, the trust business of the funds of deposit insurance and the mercantile trust of investment fund of liquidity, will transfer its resources to the new trusts and will be subsequently liquidated. The deadline for transfer to which this article refers may not exceed 60 days from the new trusts are operational. Private insurance fund will begin operating from 1 January 2016. All public servants who are directly and indirectly related to compliance with this provision, primarily service the necessary procedures for the improvement of provisions. The governing body of the public finances will provide, for this time, charged to the General budget of the State, the sum of 40 million (40' 000.000, 00) dollars of the United States of America, to the Popular and solidary financial deposit insurance trust. "Tenth fourth: coverage of the deposit insurance for savings and credit cooperatives and mutual associations of savings and credit for the Financial Sector people and supportive housing: savings and credit cooperatives and mutual associations of credit for Popular and Solidary Financial Sector housing which are not part of the segment 1" , that are registered in the public registry in charge of the Superintendency of Popular and solidary economy, will keep the deposit insurance coverage per thousand dollars of the United States of America (USD $1,000.00); This value will be increased up to the value set in article 328, on the basis of the submission of the information required by directory of insurance of deposits and liquidity fund, within the period that this set.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 99


From the promulgation of this code, Financial Sector Popular and solidary credit cooperatives referred to in the preceding paragraph, have an obligation to contribute to the deposit insurance, in accordance with the regulations issued by the Board of policy and financial and monetary regulation. Deposit insurance coverage per thousand dollars of the United States of America (USD $1,000.00), established in this provision, it applies to the Popular Financial Sector entities and United who at the time of issuance of this code are in liquidation according to provisions of the organic law of Popular and solidary economy and the Financial Sector people and solidarity. In this case does not apply the provision of article 330, second paragraph. Instead, the deposits and liquidity Fund Insurance Corporation will be creditor the amounts covered according to the order established for the effect." 10th fifth.-tax compliance for foreign accounts: during the term of four (4) years from the entry into force of this code, the control bodies may authorize the delivery of information to which refers article 354, paragraph 7, without reciprocity, until the intergovernmental agreements of reciprocal information delivery sign-up. Sixth tenth.-Financial Public Sector: of the State Bank, the National Bank of development, the national financial Corporation and the national solidarity and popular Finance Corporation will continue to operate in accordance with its laws of creation, until the President of the Republic issued the corresponding executive which decrees, reorganize or liquide entities of the public finance Sector and are granted the approvals and operating permits in accordance with the provisions of this code. Tenth seventh.-workers and the public financial Sector servers: effects of the reorganization of the public financial Sector, workers and servants who at the date of issue of this code, in any form or for any reason, to work or provide services in such entities, following evaluation, qualification and selection, according to the institutional requirements and this code they may become a part of the new public financial institutions. In the case of civil servants, any unnecessary charges, will apply the process of abolition of posts willing in the organic law of the public service and/or the process of compensation provisions of Executive Decree No. 813 published in the registry official No. 489 of 12 July 2011. The Secretariat of State in charge of industrial relations, within the period of one hundred and eighty (180) days of entry into force of this code, be carried out analysis and relevant studies, for the purpose of establishing a differentiated and specific salary scale for Public Sector financial institutions and public entities of insurance and securities servers.

10th eighth-wrong side of accounting records: the accounting records on interest owed on behalf of the Central Bank of Ecuador by the Ministry of finance bonds issued on the basis of law No. 98-17, which were owned by the Bank until December 31, 2008, within the period of thirty (30) days from the issuance of this Code concerning they will be reversed. Ninth tenth.-entry into force of the international assets of the Central Bank of Ecuador investment rules: the provisions relating to the management of assets and foreign liabilities of the Central Bank of Ecuador established in this code shall apply starting from the fiscal year 2014. Twenty-restructuring of the Bank Central of the Ecuador: in order to implement the new management structure of the Central Bank of Ecuador, within the period of one year from the date of entry into force of the code is empowers General Manager to run and provide all necessary action, in accordance with the law, to improve the management of the talent of the Central Bank of Ecuador According the rules of this code and other regulatory provisions in force. The new functional organizational structure of the Central Bank of Ecuador will be integrated as far as possible with the existing servers and workers who are skilled in the assessment and selection process, which will take you along the administration of the Central Bank of Ecuador. This process of evaluation may be carried out by a firm specialized in the matter and shall be deemed, among other aspects, skills, academic training, specialization, courses of training, experience and those determined by the organic law of the public service and the governing body of matter. The effect, the management of the Central Bank of Ecuador will issue the corresponding resolution, which will describe the terms of the evaluation and selection process which shall be subject servers and employees of the institution and the evaluation mechanisms will apply. Staff selectively defined the additional which is incorporated, must obligatorily meet the requirements indicated for the office and comply with the provisions of the internal rules that dictate the management General of the Banco Central of the Ecuador, which must obtain a favourable opinion from the Ministry of labor relations for the effect. The servers and the Ecuador Central Bank workers who are not selected in this process, will receive the compensation provided for in the organic law of the public service or of the labour code, as the case may be. For all not contemplated in the present transitional provision shall apply the provisions of the organic law of the public service and other regulations related to the matter. Pensions that by retirement, montepio, widowhood, disability and others established by the governing body of social security shall be adjusted in accordance with the amounts 100 - second supplement - official record No. 332 - Friday, September 12, 2014 permitted by law of the matter as soon as the beneficiaries have fulfilled the requirements laid down in the law. Benefits whose origin is contrary to those provided for in the law of Social Security will not be recognized and will not be eligible to receive pensions or any other the former servers of the Ecuador Central Bank, offset in time or paid contributions advance as requirement of retirement as either former members of the Monetary Board or Board approved resolutions or regulations contrary to the requirements of retirement and of which were direct beneficiaries. The administrative and judicial processes with respect to retirement pensions, which are in process or proceedings in different courts will continue to progress according to the procedural rules of the matter to its conclusion. Officials and employees of the Central Bank of the Ecuador who committed or committed serious misconduct in the performance of its functions or those who show significant increases in its heritage not justified and incompatible with their returns of income for tax purposes, will be dismissed in their functions according to law and the internal rules which give the directors of the Bank ensuring due process, without prejudice to any other actions that any place. The Central Bank of Ecuador will necessarily denounce before the competent judges, when you have knowledge that officials and former officials who had worked up to five (5) years ago or whose spouses or relatives within the fourth degree of consanguinity and second of affinity, have obtained patrimonial increases not justified and incompatible with their returns of income for tax purposes. Twenty first.-Bank of the Ecuadorian Social Security Institute: members appointed on behalf of affiliates assets and retired to the directory of the Bank of the Ecuadorian Institute of Social Security, which were possessed by the National Assembly on 25 November 2009, will remain in their positions to be legally replaced by the winners of the contest of merits and opposition organized by the Council of citizen participation and Social Control on April 20, 2014 who in the performance of their duties shall be subject to the provisions of this code. Other members of the Board and the Manager General of the Bank of the Ecuadorian Institute of Social Security, will cease their duties within the period of thirty (30) days from the enactment of the present code. In the term of 180 days (180) from the promulgation of this code in the official registry, the Superintendence of banks and the Superintendency of companies, securities and insurance together with the Bank of the Ecuadorian Institute of Social Security, implement all the activities necessary for the implementation of the reforms to the law of the Bank of the Ecuadorian Institute of Social security provided in this policy. As long as the Bank will continue under the supervision of the Superintendency of banks. Twenty second.-Ecuadorian Housing Bank: the Ecuadorian Housing Bank will be assessed within the maximum period of 90 days, from the date in which the Superintendency of banks issued rules for the effect. Until the Bank shall act as its constitutive act. In the process of liquidation will be observed the following: 1. the immovable property of this


entity, will be transferred to the book value in the service of real estate management of the Public Sector, estate or to the Secretariat of State in charge of housing.

Real estate management of the Public Sector, estate service is empowered to clean up, regulate and take all actions necessary to resolve the effects of the real estate that you will be transferred, and dispose of them in accordance with the law;

2. deposits to the view and assets equivalent to such deposits recorded in the balance sheet of the Ecuadorian Housing Bank will be transferred to the Banco Nacional de Fomento or his successor rights, which will take them without any restrictions;

3. the insurance of deposits and mortgage fund will be liquidated and resources which are not ensuring existing housing credit operations, will be transferred to the National Treasury single account;

4. the discount mortgage portfolio and equivalent term deposits will be transferred to the value on the books at the State Bank.

5 shares and participations that has the Ecuadorian Housing Bank will be transferred to the value on the books at the State Bank. and, 6. All other assets, liabilities, heritage and other obligations of the Ecuadorian Housing Bank, will be arranged in the process of liquidation of the entity; for this purpose, the liquidator may constitute a trust whose beneficiary is the Ministry of finance, which will be responsible for the disposal of the remnants.

The liquidation process shall not exceed two (2) years. Workers and civil servants that the date of issuance of this code, in any form or for any reason, to work or provide services in the Ecuadorian Housing Bank, following evaluation, qualification and selection, in accordance with this code, and the institutional requirements can spend part of other public financial institutions.

"Second supplement - registration officer Nº 332 - Friday, September 12, 2014 - 101 public servants who may not relocate to other entities, will undergo the process of abolition of posts willing in the organic law of the public service." Twenty third.-replacement of debtor's operations of the Banco Nacional de Fomento: credit operations granted by the Banco Nacional de Fomento whose financial resources, have been delivered directly to third parties other than the client or customer and that such amounts delivered have not fulfilled with the goal by which loans were granted, will proceed to replace the original debtor of the transaction by the person who actually received such resources or by the public servant to It authorized the disbursement on behalf of such party, in accordance with the regulations established by the Board of the Bank. This provision shall apply even to loans delivered prior to the entry into force of this code. Twenty fourth: Ecuadorian Institute for educational credit and scholarships: the Ecuadorian Institute for educational credit and scholarships, IECE, created with the replacement law to the law of the Ecuadorian Institute of educational credit and scholarships, from the entry into force of this code will cease to operate and in place through Executive Decree, will create the new public institution responsible for the administration of scholarships , follow-up and academic counseling, belonging to the Executive function, as long as the Ecuadorian Institute for educational credit and scholarships, IECE will continue to operate under its constitutive act. The new public institution will be the successor in law of the Ecuadorian Institute of educational credit and scholarships IECE, assuming the heritage, rights and obligations, contracts, agreements and other legal instruments. Granted coactive jurisdiction, under the terms of article 10 of this code, the public institution responsible for the administration of scholarships, follow-up, and academic counseling. The portfolio expired that is has generated in the framework of the placement of credits educational granted until the 19 of December of 2013 by the Institute Ecuadorian of credit educational and scholarships IECE, as well as the portfolio expired that is generate of the placement of credit educational in them quintiles certain in them conventions specific subscribed by that Institute with them entities financial for such effect , will be owned and managed by the new public institution responsible for the administration of scholarships, follow-up, and academic counseling. The control of the management of this portfolio coactivada and punished will be headed by the Comptroller General of the State Agency who shall control considering the financial nature of the operations. Financial institutions that have the power to grant the education credit, must observe the public policy on the subject, which for the purpose issued by the governing body for higher education, science, technology and innovation.

Twenty fifth.-association agreements: within a period of one (1) year from the entry into force of this code, private financial institutions and its national subsidiaries and foreign must dispose of shares having in other private financial institutions, as a result of the association agreements signed under the protection of the General Law of institutions of the financial system. Twenty sixth-divestment: the private financial sector entities and shareholders of such institutions with patrimonial property with influence, within the period of one (1) year from the entry into force of this code shall divest its shareholdings in financial institutions from abroad who are domiciled in tax havens or jurisdictions of lower taxation in accordance with the criteria of the internal revenue service. In the event that an Ecuadorian private financial institution or the shareholders of such entities with patrimonial property with influence, maintain shareholding in a country that is qualified by the internal revenue service as a tax haven or jurisdiction of lower taxation, after the date of entry into force of this code, such persons must divest such participation within the period of one (1) year. Twenty seventh.-secondary mortgage market development Corporation: the entity constituted under the aegis of the Act General of institutions of the financial system as a secondary mortgage market development corporation, within the period of one (1) year of the entry into force of this code, shall transfer the quality of trust in the process of securitization that currently manages, to administering society funds and trusts keeping the other faculties required to develop securitisation processes, own and third-party. If such a transfer does not operate within the period indicated, the entity must be settled. The participation of the State in this Corporation will be assumed by the State Bank, entity that may keep it, increase it or dispose of it. Twenty eighth-conveyors of values and safety: entities of auxiliary services of the financial system whose purpose is monetary species and transportation of values and security, which are constituted as companies of limited liability, within the period of one year must become anonymous companies. Twenty ninth.-associations mutual savings and credit for housing: partnerships of mutual savings and credit for housing that are operating within eighteen months of the date of entry into force of this code will solve their permanence in the Popular and Solidary Financial Sector or its conversion to finance private Sector financial institution. If you pass to the control of the Financial Sector people and solidarity, the Superintendency of banks and insurance will transfer all documentation and files the inspection body of the mutualistic associations of savings and housing loans. This period may be extended by the Board on policy and monetary regulation and financial, 102 - second supplement - official record No. 332 - Friday, September 12, 2014


only once for 18 additional months. The accumulated heritage of mutualistic associations of savings and housing loans registered as irrepartible legal reserve, will be recorded as assets of the entity. When the entity becomes the financial Private Sector entity, accumulated heritage, constituted by the irrepartible legal reserve, will be brought to the deposit insurance. Thirty-insurance companies, reinsurance, insurance-producing advisers, inspectors ajustadoras claims and reinsurance intermediary and risk: companies of insurance, reinsurance, advisors producing safe, inspectors of risks and ajustadoras claims and intermediary for reinsurance that the date of entry into force of this code are established, within eighteen months shall comply with reforms to the General Law of insurance set out in this code. The Board of political and regulation monetary and financial, may extend the term until for eighteen months, by a single time. Companies that could not meet this transitional provision will operate and will initiate a process of liquidation in accordance with standards issued by the Superintendency of companies, securities and insurance. The Superintendent of banks will know and will resolve appeals that have not been resolved by the Bank Board in accordance with the third transitional provision, for claims arising until the competition in this field is assumed by the Superintendency of companies, securities and insurance, according to the following transitional provision. In the claims, the terms or terms that have begun to elapse from the date of enactment of the reforms to the General Law of the insurance will be respected by this code. Law of consumer protection standards are understood to be incorporated into insurance contracts in force at the date of enactment of this Act. "Reforms to the General Law of the insurance introduced by this code, with respect to the compulsory liquidation of companies regulated by that Act, shall apply to payments on the date of enactment of the reforms process." Thirty first.-supervision of the procedure of insurance: the Superintendency of companies, securities and insurance will assume the powers which this code and the reforms he introduced other laws assigned, within the period of one year following its publication in the Official Gazette. During that time, transfer records, documentation and systems that are currently in the Superintendency of banking and insurance, and shall be determined, and will the human, technological and financial resources, and materials in general, needed to assume such responsibilities.

Workers and public servants of the Superintendency of banks that are providing services in the area in charge of the insurance system, previous evaluation, to the date of issue of this code, qualifies - tion and selection, in accordance with this code and the institutional requirements, you can become a part of the Superintendency of companies, securities and insurance. Unnecessary charges apply will apply the process of abolition of posts willing in the organic law of the public service." Thirty second.-public accounts non-financial Public Sector: within a period of two (2) months from the date of entry into force of this code, the entities of the national financial system be converted into accounts exclusively resources collection, all bank accounts with ability to turn that the non-financial public sector institutions remain. Failure to comply with this provision will entail administrative, civil and penal responsibilities that any place. Thirty third.-investment public non financial Sector: financial investments public non financial Sector institutions remain in force in the sectors financial solidarity, and popular, and private and in securities securities issued by private national or foreign entities, on maturity, will not be renewed. If the maturity of the investment exceeds one (1) year from the entry into force of this code, such investments must be disposed. The resulting resources will be credited in the respective accounts that institutions maintain at the Central Bank of Ecuador, in accordance with standards issued by the governing body of the public finances. There are constituents of commercial trusts the public not Financial Sector entities Bank of the migrant, PROMUJERES, FICA, and any other trust established in order to perform operations of credit in favour of the priority groups, give terminated contracts of trust and the restitution of their assets to constituents so that they in turn transfer the resources resulting from the liquidation to the solidarity and popular Finance Corporation , within the period of one hundred and eighty (180) days from the entry into force of this code. Solidarity and popular Finance Corporation will provide these resources, exclusively, for programmes and projects aimed at the same priority groups for whom trusts were formed. Within the same period, are also available to terminated commercial trusts FONDEPYME and CREECUADOR. Money from these trusts assets will be transferred to the Fund of risk capital provided in the organic code of production and assets to the respective constituents.

Second Supplement - Registro Oficial Nº 332 - Friday 12 September 2014 - 103 failure to comply with this provision will entail administrative, civil and penal responsibilities that any place. Thirty fourth.-resources of the National Fund of environmental sanitation (FONASA) and the National Fund afforestation and reforestation (FONAFOR): under the repealing of the law reform the law of development of agricultural roads and hand-building work and creation of the National Sanitation Fund, National Fund afforestation and reforestation, the resources of the National Fund of environmental sanitation (FONASA) and the National Fund afforestation and reforestation (FONAFOR) , prior clearance, will be transferred to the National Treasury single account. Thirty fifth.-resources of the Commission for the development of the area north of Manabí CEDEM: under the repeal of the law of creation of the Committee for the development of the area north of Manabí CEDEM, resources allocated to the Commission, prior clearance, will be transferred to the National Treasury single account. Thirty sixth-coercive jurisdiction: the banks and insurance which the State hold the majority-owned, will be coactive jurisdiction for the collection of funds and any type of obligations on their behalf or third parties, while the State save such participation. The jurisdiction enforced will be exerted as it establishes the article 10 of this code. The Superintendency of banks continue to coercive jurisdiction for recovery of economic losses of financial institutions whose liquidatorios processes culminated until December 2010. Coercive processes will start against shareholders representing six percent (6%) or more of the share capital at the time of submitting the financial institution to the process of restructuring, sanitation or compulsory liquidation, as well as the main administrator and legal representative. The Superintendency of banks will determine the qualities referred to in the preceding paragraph, and may issue injunctions real, inside the coercive, assets that public knowledge are the property of those shareholders, administrators or legal representative, where appropriate. The above, without prejudice to civil, administrative and criminal responsibility to that necessary to those who administered the financial institutions during the stage of sanitation or restructuring by the Agency of guarantee of deposits and subsequent liquidation. In the case that the control entities determinaren responsibilities of liquidators and temporary managers, granted the same coercive jurisdiction to the Superintendency of banks so exercised against such officials".


Thirty-seventh: the twenty fourth general provision of the organic code of planning and public finance introduced by the reformative arrangement and repealing third of this code, shall remain in force from the 2015 budget year. Thirty-eighth: in the case of the Bank of the State, instead of the holders referred to in paragraph 2 of article 373, will participate in the directory: a representative of the regional Governments, a representative of the provincial governments, a representative of the cantonal governments, a representative of the parish Governments and two holders of Secretaries of State whose scope of activity is directly related to the aims and objectives of the respective financial institution , or their permanent delegates. This entity will have its capital subscribed and paid divided into shares and will have a General meeting of shareholders thirty ninth: the sale of the shares or assets of the companies acquired by the deposit guarantee agency or unit management and execution of the trust AGD-CFN No more impunity for provision of article 29 of the Act of reordering in economic matters in the Tributario-Financiera Area implemented with financing or credit operations carried out by the national financial Corporation and paid, wholly or partly, with certificates of guaranteed liabilities (CPG) in favour of workers or employees of these companies, will be reliquidadas according to the following criteria: a. the price of traded goods reliquidará: (i) to its value on the books at the date of the sale; (ii) to the lowest value that were sold publicly similar goods from the same company, or (iii) to the current book value, the youngest of the three.

These criteria will be applied in future sales that make the trust commercial AGD-CFN No more impunity for workers or employees of the companies identified in the first paragraph.

b. credit or financing operations are reliquidarán in the following way: (i) the trust commercial AGD-CFN No more impunity must pay the difference of the existing capital between the credit granted and the credit that corresponds according to the valuation determined in the literal precedent; the national Finance Corporation (ii) financial reliquidadas operations conditions will be at least one period of fifteen (15) years, at a rate of not more than five percent (5%), the national Finance Corporation, the trust commercial AGD - CFN No more impunity must pay the difference by reassessment of these interests; and, (iii) the interest paid on excess by effect of the indicated reassessment they will be credited to the capital.

c.. in those cases in which the trust commercial AGD-CFN No more impunity does not possess sufficient resources to make the payments provided for in the preceding paragraph, difference, total or partial, will be assumed by 104 - second supplement - official record No. 332 - Friday, September 12, 2014 the unit of management and execution of the trust AGD-CFN No more impunity, for which the Ministry of finance will allocate resources that correspond.

Forty: Following the publication of this code, the Superintendency of banks will have, within a maximum period of 180 days, the realization of audits to the closed supplementary pension funds. Forty-first: until they are issued the respective decrees that enable the operation of the public bank, monetary policy and financial regulation Board will determine, through regulation, whereas economic activities, segments, all cases in which payments are charged first capital, current or overdue credit operations of public financial sector entities and other criteria that they have been granted before or after the issuance of this code.

Forty second: the transmissibility and endorsement of checks, and the issuance of crossed cheques, continue is in accordance with the law of checks, until the Board of policy and financial and monetary regulation issued regulations determined in this code. AVAILABLE end-the present Code shall be effective from the date of its publication in the Official Gazette. Given and signed, at the headquarters of the National Assembly located in the Metropolitan District of Quito, Pichincha province, the two days of the month of September of two thousand fourteen. f.) GABRIELA RIVADENEIRA BURBANO, President. f.) Dr. Libya RIVAS ORDÓÑEZ, Secretary General.







The official record is not responsible for spelling, grammar, errors in the background or in such a way that they contain published documents, these documents provided by different institutions for its enactment, are faithfully transcribed from their originals, which are archived and are our support.