Organic Law For The Regulation Of Loans For Housing And Vehicles.

Original Language Title: Ley Orgánica para la Regulación de los Créditos para Vivienda y Vehículos

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



CONSIDERING: That, according to article 67 of the Constitution, the State must protect the family as the fundamental nucleus of society and ensure conditions which integrally favor the attainment of its purposes; That, according to the last paragraph of article 375 of the Constitution, the State shall exercise the rectory for the planning, regulation, control, financing and development of habitat and housing policies;

As it points out the second subparagraph of article 308 of the Constitution of the Republic, the State should promote access to financial services and credit democratization; Whereas is necessary to regulate the liability of the debtor that maintains a credit with the institutions of the financial system, so that, in case of default, is not compromised their personal assets, as well as the acquired property that is intended to house or vehicle for family or personal use; and; In exercise of the allocation granted by the number 6 of article 120 of the Constitution of the Republic, issued the following: law organic for regulation of the credits for housing and vehicles article 1-scope-this law regulates loans of housing and vehicles, contracted by natural persons, in the conditions laid down in the following articles. The rules laid down in this law are of public order. Article 2-Object.-this law aims to guarantee people the right to safe and healthy habitat and an adequate and dignified housing, as well as access to the property, through the regulation of financial activities concerned l credit for housing and vehicles. Vivian lo 3.-conditions-will benefit from prescribed in this law borrowers of mortgage loans and credits contracted for the purchase of vehicles that are subject to the following conditions: mortgages: 1. that to incur debts to acquire or build housing single family or for remodeling or re-roofing of the single family home;



2 that the initial amount of the loan does not exceed 500 (five hundred) basic salaries unified for private workers; y,



3. That will incorporate mortgage as collateral for the credit granted.

Credits for the purchase of vehicles: 1. that to incur debts to acquire a unique vehicle for family or personal use;

2 that the initial amount of the loan does not exceed 100 (one hundred) basic salaries unified for private workers; y,



3. That pledge is lodged as collateral for the credit granted or agreed retention of title on the vehicle.

Second Supplement - Registro Oficial Nº 732 - Tuesday, June 26, 2012 - 3 article 4.-contracts who subscribe to mortgage loans and vehicles which comply with the conditions laid down in this law, may not be bailing with bonding, guarantees solidarity, or with security rights in other property other than that on the subject of funding. Other documents of obligation nor can sign freelancers in back mortgage debt or financing of vehicles. The titles that are granted in contravention of this provision, be lawful cause. The guarantee constituted to warn loans regulated by this law, may be extended to cover other loans incurred exclusively for improvements, renovations, extensions or repairs of the financed asset. These new loans will also benefit from prescribed in this law as long as the original credit is pending payment. Any provision in violation of this rule shall be as unwritten. These provisions shall also apply to trusts or any other instrument or financial mechanism which constitute guarantee of loans referred to in the preceding article. The Board of the Bank or any other body of regulation in the field of its competences, shall regulate yprohibir any form of circumvention of these rules. Article 5-Obligations by l s credits indicated in this law and they are declared term expired, can be charged through the respective execution or dation in payment of guarantee given good, whereupon the debt expires. Once topped or auctioned bi n delivered to warranty or delivered in dation in payment, this obligation shall terminate by what the creditor or its successors in law, may not pursue the personal property of the debtor or its successors in law, nor of the conjugal partnership, or begin insolvency proceedings against these, not even claiming debts for legal costs fees of lawyers or other expenses, which will not be applicable articles 2327 and 2367 of the Civil Code or the 105 of the General Law of institutions of the financial system, or any other item which is opposed to the full force of this law. For loans of vehicles, where rent payments are the reservation of domain on vehicle operation and when the debtor is unable to meet the obligation, debt shall terminate at the time that the creditor make use of their rights according to the procedure established in the code of Commerce, by which the creditor may not claim outstanding debts or even procedural costs Attorney's fees and other expenses. This provision shall also apply to cases in which has been constituted a Trust Fund of guarantee or any other instrument or financial mechanism that guarantees the debt.

Advertising auctions and foreclosures, will include the technological means that allow greater transparency and competition to obtain the best price. There is a surplus after the process of auction or auction in favour of the debtor, it will deliver it is to it, as set out in the code of Civil procedure.



REFORMATORIAS PROVISIONS FIRST. -In article 2327 of the Civil Code include a paragraph with the following text: "this provision shall not apply in the cases provided for in the law." SECOND.-in article 2367 of the Civil Code to the end of the article include the following text: "and other cases foreseen by the law." THIRD.-Add to the end of the second paragraphs of articles Innumerados ninth (9) and tenth (10) of section V of title II of book II of the code of Commerce, added by article 1 of Decree Supreme No. 548-CH, published in official register no. 68 September 30, 1963, the following text: "this provision shall not apply in the cases excepted by law.".



PROVISIONS GENERAL FIRST. -Once the embargo, arrest or any other proceedings or execution of any of the goods referred to in this law, the credit recovery will no longer earn interest. SECOND.-foreign judgments originating in credit operations with mortgage guarantee of housing located outside the country, pursuing the embargo and subsequent auction of real and personal property of Ecuadorian citizens not caucionados for these credits, will be not executed in the national territory in contravention of the Ecuadorian legal system. THIRD.-for the purposes of article 26 of the organic law of the Popular solidarity, economy real estate awarded by housing cooperatives which is constituted of family heritage, can be delivered as collateral for mortgage loans for housing, and this can be executed in the manner provided in this Act and other special rules , in the case where the creditor has coercive jurisdiction. -FOURTH. -Financial institutions may not object to the transfer of their mortgage customers may wish to make to another financial institution that provides credit in best condition in accordance with the rights of users and consumers, enshrined in the Constitution of the Republic of Ecuador, being requirement the commitment that the provider of best conditions of credit financial institution assume payment of such obligation on behalf of the client that requests it. Fifth.-the body of the institutions of the national financial system regulation, shall fix annually the percentage of mandatory mortgage operations to 4 - second supplement - official registry No. 732 - Tuesday 26 June 2012


each entity remain in relation to her constituted technical patrimony, according to its nature, object ygiro of business, through which issued general rules which are necessary for the application of this provision. REPEALING PROVISION. -Be repealed expressly all legal provisions that are opposed to provisions in the law presnte. FINAL DISPOSITION. -The provisions of this law shall apply to all processes of implementation of guarantees in the field and the conditions of this law. This law shall become 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 twenty-one days of the month of June of two thousand twelve. ((f) DR. JUAN CARLOS CASSINELLI CALI Senior Vice President, in the exercise of the Presidency f) DR. ANDRES SEGOVIA S. Secretary General certificated that the National Assembly discussed and approved the law organic for the regulation of credits for housing and vehicle, in first debate on April 24, 2012, in second debate on 8 may 2012 and ruled on the objection part of the President of the Republic on June 21, 2012. Quito, June 21 of 2012 f.) DR. ANDRES SEGOVIA S., Secretary General.

No NAC-DGERCGC12-00363 CEO the considering internal revenue service: that, in accordance with article 226 of the Constitution of the Republic of Ecuador, the institutions of the State, its agencies, dependencies, the servants or public servants and persons acting n pursuant to a State authority shall only exercise competences and powers assigned to them by the Constitution and the law; That article 300 of the Constitution says that the tax system will be governed by the principles of generality, progressiveness, efficiency, administrative simplicity, non-retroactivity, equity, transparency and revenue adequacy;

In accordance with the provisions of article 8 of the law of creation of the internal revenue service, the General Director of the internal revenue service, shall issue resolutions of general yobligatorio character, aimed at the correct application of legislation and regulations; That accordingly, article 7 of the tax code establishes that the General Director of the internal revenue service will issue circulars or General, necessary for the implementation of tax laws and provisions for harmony and efficiency of its administration; That article 73 of the tax code establishes that the actions of the tax administration will develop in accordance with the principles of simplification, Celerity and efficiency; That dated 24 November 2011, it was published in the supplement of the registry official No. 583, the law of environmental promotion and optimization of revenue of the State, itself containing several reformatorias provisions to the tax law, promptly with respect to the taxation of the special consumption tax (ICE); That sets not numbered item added following article 75 of the law on tax, which in the case of the ICE, there will be three types of taxation applicable: specific, ad valorem, and mixed; corresponding to the first one, a fixed levy per unit of property transferred by manufacturer or imported, as applicable; In accordance with article 82 of law regime tax internal in accordance with article 76 of the same body of law, in the case of cigarettes, provided that the calculation of the tax base of ICE will be made by applying a specific rate of USD. 0.08 for each cigarette;

Pursuant to article 82 of the law of taxation internal, the specific rate of cigarettes adjusted semstral and cumulatively to may and November each year, depending on the variation of the last six months of the price index consumer (IPC) for the group in which the good is "tobacco" prepared by the competent public body, discounted the effect of the increase of the own tax. The new value must be published by the internal revenue service during the months of June and December of each year and shall apply from the first day of the following month calendar;

That according to information published by the Instituto Nacional de estadísticas y Censos, INEC, in its institutional website www.inec.gob.ec, CPI for the cigars of the month of November 2011 group is 211,72; and may 2012 is 254,60; resulting in its six-monthly variation is 20.25%;

That where is good to discount the effect of the own tax variation of the last six months of the index of prices to the consumer (IPC) for the Group