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Law Of The Bank Of Mexico

Original Language Title: Ley del Banco de México

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Law of the Bank of Mexico

MEXICO BANK LAW

Official Journal of the Federation on December 23, 1993

Latest Reform Published in the DOF January 10, 2014

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

CARLOS SALINAS DE GORTARI, Constitutional President of the United Mexican States, to its inhabitants known:

That the H. Congress of the Union has served to address the following

DECREE

" THE CONGRESS OF THE MEXICAN UNITED STATES, D E C R E T A:

MEXICO BANK LAW

CHAPTER I

Of Nature, Finalities, and Functions

ARTICLE 1o.- The central bank shall be a person governed by public law and shall be called the Bank of Mexico. In the exercise of his duties and in his administration shall be governed by the provisions of this Law, in accordance with the sixth and seventh paragraphs of Article 28 of the Political Constitution of the United Mexican States.

ARTICLE 2o.- The Bank of Mexico will aim to provide the country's economy with a national currency. In order to achieve this aim, it will be a priority objective to ensure the stability of the purchasing power of that currency. It will also be for the Bank to promote the sound development of the financial system and to promote the smooth operation of payment systems.

ARTICLE 3o.- The Bank will perform the following functions:

I. Regular issuance and circulation of currency, changes, intermediation and financial services, as well as payment systems;

II. Operate with credit institutions as a reserve bank and ultimately credit institution;

III. Provide treasury services to the Federal Government and act as a financial agent for the Federal Government;

IV. Fungir as an adviser to the Federal Government on economic and, particularly, financial matters;

V. To participate in the International Monetary Fund and other international financial cooperation agencies or to group central banks, and

VI. Operate with the bodies referred to in the previous V fraction, with central banks and with other foreign moral persons carrying out functions of financial authority.

CHAPTER II

From Emission and Monetary Circulation

ARTICLE 4o.- Corresponding privately to the Bank of Mexico to issue banknotes and order the minting of metallic coins, as well as to put both signs in circulation through the operations that this Law authorizes you to carry out.

ARTICLE 5o.- The banknotes issued by the Bank of Mexico must contain: the denomination with number and letter; the series and number; the date of the issuance agreement; the signatures in facsimile of a member of the Board of Government and of the Principal Cajero; the legend "Bank of Mexico", and the other characteristics that the Bank itself points out.

The Bank will be able to manufacture its banknotes or to order the production of its banknotes from third parties.

ARTICLE 6o.- The Bank, directly or through its correspondents, will have to change in sight the banknotes and coins that it puts into circulation, for others of the same or of a different denomination, without limitation and at the will of the holder.

If the Bank or its correspondents do not dispute banknotes or coins of the names requested, the exchange obligation may be fulfilled by handing over banknotes or coins. metal of the denominations that they have, closest to the demands.

The metal coins referred to in Article 62 (II) are exempted from the provisions of this Article.

In the fulfilment of its obligation to exchange with credit institutions, the Bank will be able to deliver to them the banknotes and coins of the denominations whose greatest circulation it considers suitable for facilitating payments.

CHAPTER III

Of Operations

ARTICLE 7o.- The Bank of Mexico may carry out the following acts:

I.       Operate with values;

II.- Grant credit to the Federal Government, credit institutions as well as the decentralised body called the Institute for the Protection of Banking Savings;

III.    Grant credit to the persons referred to in Article 3o (VI);

IV.     Constitute deposits in credit institutions or securities depositories, in the country or abroad;

V.       Acquire securities issued by international financial institutions or moral persons domiciled abroad, provided for in section II of the article 20;

VI.     Issue monetary regulation bonds;

VII.    Receive bank deposits of money from the Federal Government, financial institutions from the country and abroad, public funds for economic promotion and those referred to in the following section XI, from institutions for the deposit of securities, as well as federal public administration entities where laws so provide;

VIII. Receive bank deposits of money from the persons referred to in section VI of Article 3o.;

IX.      Obtain credits from the persons referred to in Article 3o fraction VI. and financial institutions from outside, exclusively for purposes of exchange rate regulation; as well as constituting cash flows or securities with respect to the financial transactions that it holds with such subjects under this Law, arising from the administration of the international asset reserve;

X.       Perform operations with foreign currency, gold and silver, including reporters;

XI.     Act as a fiduciary when the law is assigned to it, or in the case of trusts whose purpose they contribute to the performance of their duties or of which the Bank itself constitutes in order to fulfill its duties, and

XII.    Receive deposits of securities or securities, in custody or in administration, of persons identified in the previous fractions VII and VIII. It may also receive deposits from other Federal Government effects.

The Bank may not perform but the acts expressly provided for in the provisions of this Law or those related thereto.

ARTICLE 8o.- The operations referred to in Article 7o. they must be contracted in terms that are consistent with market conditions at the time of their conclusion, with the exception of those that are not listed on the market by their nature.

In addition, the securities transactions performed by the Central Bank, other than those referred to in Article 7o (IV), (V) and (XII). and in section I of the article 9., shall be made exclusively by auction, the subject of which is securities by the Federal Government, by credit institutions or by the Bank itself.

ARTICLE 9o.- The Bank of Mexico shall not provide securities to or acquire securities from the Federal Government except in the case of securities acquisitions by the government itself. and one of the following two conditions is met:

I. The acquisitions are made up of cash deposits not withdrawn before maturity, which the government constitutes in the Bank with the product of the placement of the securities referred to, whose amounts, instalments and yields are equal to those of the values that are the object of the respective operation

or

II. The acquisitions correspond to positions presented by the Bank in the primary auctions of these securities. These acquisitions shall in no case be greater than the amount of the securities held by the government owned by the Bank that sell the day of placement of the securities to be auctioned.

ARTICLE 10.- The role of the Federal Government's agent for the issuance, placement, purchase and sale of securities representing the domestic debt of the Government and, in general, for the service of that debt, it shall be the private of the Central Bank.

ARTICLE 11.- The Bank of Mexico may only give credit to the Federal Government through the exercise of the current account that takes the Treasury of the Federation and subject to the which is provided for in Article 12. For the purposes of this Law, the Federal Government does not consider the securities to be charged to this property of the Central Bank.

ARTICLE 12.- The Bank will bring a current account to the Federation's Treasury that will adjust to what the parties agree to, but in any case to the following:

I. Only charges or credits may be made to this account by direct instruction from the Treasurer of the Federation to the Bank, which the latter receives at least one business day before the date on which the respective bank is to be made. charge or credit;

II. The Bank of Mexico may, without authorization from the Treasurer of the Federation, charge the account to serve the domestic debt service of the Federal Government;

III. From this account you will not be able to free checks or other documents in favor of third parties, and

IV. The balance which, if any, is covered by the Federal Government shall not exceed a limit of 1.5% of the government's own funds provided for in the Federation's Budget for the financial year in question, without considering those identified for the repayment of the government's debt; except that, due to extraordinary circumstances, the temporary differences between income and public expenditure are significantly increased.

In the event that the account's debtor balance exceeds the above limit, the Bank shall proceed to the placement of securities by the Federal Government on behalf of the Federal Government and the Federal Government. amount of the surplus. If necessary or appropriate, the Bank, also on behalf of the Federal Government, will issue securities to the Federal Government to carry out the respective placement. When determining the characteristics of the placement and, where applicable, issue, the Bank shall seek the best conditions for the Government within what the market permits.

The Bank shall carry out the placement of the securities referred to within a period of not more than 15 working days from the date on which the above limit is exceeded. the credit surplus with the product of the corresponding placement. Exceptionally, the Governing Board of the Bank may extend this time limit one or more times for a period of not more than three months, if this is appropriate to avoid disruption in the financial market.

ARTICLE 13.- When the laws establish that the Bank of Mexico should make contributions to international financial institutions, the Federal Government, except as soon as it is indicated, will provide timely to the own Bank of the respective resources. The payment of the quotas to the International Monetary Fund will be made with the resources of the Bank of Mexico.

ARTICLE 14.- The operations that the Bank of Mexico will carry out with the credit institutions shall be carried out by auction or in accordance with general provisions issued by the Bank itself.

The financing that the Central Bank will grant to credit institutions, either through the granting of credit or through the acquisition of securities, will only be able to purpose of monetary regulation.

ARTICLE 15.- As provided for in the second paragraph of Article 14 and Article 14, it shall not be applicable to the financing provided by the Central Bank to the credit institutions to avoid In the case of the Bank, the Bank will not be required to provide any of the following:

ARTICLE 16.- The financing that the Bank of Mexico will grant to credit institutions will be guaranteed by the deposits of money and securities that the Bank of Mexico institutions have in the Bank itself. By beating the aforementioned financing, the Bank shall be entitled to charge its amount to the accounts in which such deposits are recorded.

ARTICLE 17.- The monetary regulation bonds issued by the Bank of Mexico will be either nominative or bearer credit and will have the other characteristics of the Bank. fixed, and must be kept in administration at the Bank itself, if it so determines.

CHAPTER IV

From the International Reserve and the Exchange Regime

ARTICLE 18.- The Bank of Mexico will have a reserve of international assets, which will have the objective of contributing to the stability of the purchasing power of the national currency. by offsetting imbalances between the country's foreign exchange income and expenditures.

ARTICLE 19.- The reservation referred to in the preceding immediate article shall be constituted by:

I. Foreign currencies and gold, owned by the Central Bank, which are free of all charges and whose availability is not subject to any restrictions;

II. The difference between the participation of Mexico in the International Monetary Fund and the balance of the liability of the Bank for the aforementioned concept, when that balance is lower than the said participation, and

III. The foreign currency of financing obtained for purposes of currency regulation, of the persons mentioned in the VI fraction of article 3o.

To determine the amount of the reserve, the foreign currency to be received for purchase and sale operations against the national currency will not be considered, and the liabilities of the Institution in foreign currency and gold, except those that are longer than six months and those corresponding to the financing mentioned in section III of this article.

ARTICLE 20.- For the purposes of this Law, the term foreign currency comprises: foreign currency notes and coins, bank deposits, credit titles and all kinds of documents credit, abroad and denominated in foreign currency, as well as, in general, international means of payment.

Currencies likely to be part of the reserve are only:

I. Foreign metal notes and coins;

II. The deposits, securities, securities and other obligations payable outside the national territory, considered to be of first order in the international markets, denominated in foreign currency and in charge of governments of countries other than Mexico, of international financial institutions or external entities, provided that they are due to a period of not more than six months or of ample liquidity;

III. The appropriations in charge of central banks, payable in a period not longer than six months, the service of which is current, and

IV. The International Monetary Fund's special drawing rights.

ARTICLE 21.- The Bank of Mexico will have to act on currency matters in accordance with guidelines to be determined by a Change Committee, which will be composed of the Secretary and the Deputy Secretary of Finance and Public Credit, another deputy secretary of the Office of the Treasury, the Governor of the Bank and two members of the Governing Board, which the Governor himself appoints. The members of the Commission shall have no alternates.

The sessions of the Commission will be chaired by the Secretary of Finance and Public Credit, in his absence, by the Governor and, in the absence of both, by the deputy secretary who appoints the Holder of the said Secretariat. Who is in session will have a quality vote in case of a tie.

The Commission may meet at all times at the request of the Secretary of Finance and Public Credit or the Governor; its sessions shall be held with the assistance of at least three of its members, provided that both the Secretariat and the Bank of Mexico are represented. The decisions of the Commission shall be taken by a majority of votes, in any event the favourable vote of at least one of the representatives of the said Secretariat.

The Governor shall report to the Governing Board on such resolutions.

The secretary of the Governing Board and his deputy will also be the Committee on Changes.

ARTICLE 22.- The Commission will be empowered to:

I. Authorize the obtaining of the credits referred to in Article 7o. IX.;

II. Set criteria to which the Bank is to be subject in the exercise of the powers provided for in Articles 32, 34 and 35, as well as in Article 33 in respect of development banking, and

III. Point out guidelines for the management and valuation of the reserve referred to in Article 18.

ARTICLE 23.- The Bank of Mexico, in order to fulfill its priority objective, may compensate for the increase in the circulation of currency or its obligations to the view, resulting of the acquisitions of foreign currency which it carries out in accordance with the guidelines referred to in Article 21 by placing and, where appropriate, issuing securities by the Federal Government in accordance with the provisions of the second paragraph of the IV of the Article 12. This placement on behalf of the government may be effected only if the amount of the securities charged by the Federal Government with which the Bank has its assets is equal to or less than the amount of deposits referred to in the of Article 9o. and the Bank does not have other broad market values. At the time of the placement, the Bank of Mexico will pay the product of it to a deposit in its non-interest charge in favor of the government itself. The funds deposited will be handed over to the government at the time and in the equivalent amount of the net foreign currency deposits that the Bank will make and which itself will determine a decrease in the circulation of currency or in the amount of the obligations to the view of the latter.

CHAPTER V

From the Rules and Sanctions Expedition

ARTICLE 24.- The Bank of Mexico may issue provisions in terms of this Law, only when they are intended for monetary or monetary regulation. change, the sound development of the financial system, the proper functioning of the payment system, or the protection of the public's interests; this without prejudice to other provisions which the provisions of other laws empower the Bank to (i) to issue in the areas mentioned When issuing its provisions, the Bank shall express the reasons for the reasons.

The above provisions should be of general application, and may relate to one or more types of intermediaries, to certain operations or to certain areas or places.

The sanctions imposed by the Bank of Mexico in accordance with the provisions of article 36 Bis of this Law, to provide for the observance of the regulation that will lead to (a) to preserve the effectiveness of the public policy rules laid down in this Law, and in other cases which empower the Bank to regulate matters which it has identified for the purpose and, in this way, to provide, in this way, the purposes mentioned in the first paragraph of this precept.

For the imposition of the sanctions referred to in this Law, the Bank of Mexico will establish, in the rules that the issue will have, the procedure, as well as the form and terms to which your administrative units must be attached.

ARTICLE 25.- The Bank of Mexico will determine the conditions under which credit institutions will exchange and withdraw banknotes and coins in circulation.

ARTICLE 26.- The characteristics of the active, passive and service operations carried out by the credit institutions, as well as the credit, loan or report to be held by the stock intermediaries, shall be in accordance with the provisions of the Central Bank. Financial institutions shall also comply with those other provisions of a general nature that the Bank of Mexico may issue in the exercise of the powers that the laws governing the aforementioned entities confer on them to regulate matters. which point to the effect.

The Bank of Mexico will regulate interest, active and passive fees and fees, as well as any other concept of recovery of transactions held by the institutions. financial with customers. For the exercise of these powers, the Bank of Mexico may request the opinion of the National Banking and Securities Commission, the National Commission for the Protection and Defense of Financial Services Users or the Federal Commission. of Competition and shall observe for these purposes the provisions of the Law for the Transparency and Ordinance of Financial Services.

The provisions of this Article shall also apply to the trusts, mandates or commissions of the securities intermediaries and of the insurance and financial institutions Bonds.

ARTICLE 27.- The Bank of Mexico, in the imposition of the sanctions referred to in this Law, will take into account the following:

I. The profit obtained, as well as the amount of the bankruptcy or property damage caused, if applicable;

II. The risks incurred by intermediaries and entities (a) the conclusion of the operations which have resulted in the corresponding sanction;

III.          The period of time for non-compliance;

IV.           The recidivism, the causes that originated it, and the corrective actions applied by the alleged infringer, if any.

You will be deemed to be a repeat offender who has committed an offence sanctioned and committed the same infringement within two years of the date on which the relevant decision has been signed.

The recidivism may be punishable by a fine of up to twice the amount of the amount that is originally applicable;

V. The severity of the violation committed;

VI.           The economic capacity of the offender, and

VII.          The other special circumstances that the Bank of Mexico considers applicable for the individualization of the respective sanction.

Bank of Mexico shall take into account, in addition to the aspects of the sanctions referred to in points (a) and (b) of Article 36 Bis, the penalties referred to in Article 36 (3). referred to in the previous fractions, the causes of the missing resulting from the corresponding infringement and, in particular, if they are due to abnormal withdrawals of funds, to critical situations of the intermediaries or to errors or omissions of an administrative nature in which, at the discretion of the Bank itself, there is no mediated bad faith.

Taking into account the circumstances of each case, the Bank of Mexico may, in addition to imposing the appropriate fine, admonish the infringer, or only admonish, (a) considering their background, the seriousness of the conduct, the non-interest of third parties and, where appropriate, the existence of attenuants. For the purposes of this Article, it shall be deemed to be mitigating in the imposition of administrative penalties, inter alia, where the alleged infringer accredit to the Bank that the damage caused has been damaged.

The Bank of Mexico may refrain from sanctioning financial institutions or intermediaries as long as the cause of such abstention is justified and facts, acts or omissions which are not serious, there is no recidivism, no evidence to show that the interests of third parties or the financial system itself are affected and do not constitute a crime.

ARTICLE 28.- The Bank of Mexico will be empowered to determine the portion of the liabilities of the credit institutions, which shall be invested in cash deposits in the own Bank, with or without a cause of interest, in broad market values or in both types of investments.

The provisions of the preceding paragraph shall also apply to trusts, mandates or commissions, except those constituted by the Federal Government, through which institutions (i) trust in the public, or receive funds for the provision of credits or investment in securities.

The mandatory investments referred to in the first and second paragraphs of this Article may not exceed, respectively, twenty and fifty percent of the liabilities or funds corresponding.

The Bank may also determine that up to one hundred percent of the amount of resources collected by credit institutions for specific purposes or in accordance with Special provisions provided for in law are retained in certain categories of assets resulting from such purposes or schemes.

ARTICLE 29.- Repeals

ARTICLE 30.- Bank representatives on the governing boards of the financial system's supervisory committees will be empowered to suspend for up to five days. the execution of the resolutions of those committees which may affect monetary policy. Within that period, the Bank shall communicate its views to the respective governing board so that it will ultimately resolve.

The decisions of the competent authorities on the acquisition of securities by the Federal Government or the Bank of Mexico, by investment companies, must be submitted to the approval of the Central Bank, before it is implemented.

ARTICLE 31.- The Central Bank will be able to regulate the service of transfers of funds through credit institutions and other companies that provide it in a professional manner.

ARTICLE 32.- Credit institutions, stock brokers, exchange houses, as well as other intermediaries when they are part of financial groups, or subsidiaries of the institutions or intermediaries mentioned in the first term, will adjust their operations with foreign currency, gold and silver to the provisions issued by the Bank of Mexico. This, on a level playing field, shall take precedence over any other person in trading and other transactions which are customary in the respective markets.

The aforementioned intermediaries will be obliged, provided that the Bank so provides, to constitute deposits of money in the view of the latter and in charge of entities of the first order of the foreign currency, denominated in the foreign currency in which the Bank usually makes its intervention in the exchange market, in the amount in which the assets of those in foreign currency, gold and silver, exceed their obligations in those effects. The Bank shall pay the intermediaries the national currency equivalent of these deposits, calculated at the exchange rate published by the Bank itself in the Official Journal of the Federation on the date the respective agreement is made. The currencies other than that referred to, as well as gold and silver, shall be valued in the terms of the provisions issued by the Bank, which may not be able to set out the terms of the market conditions on the date cited.

The Bank, taking into account the seriousness of the case, may order financial intermediaries to breach the provisions of this Article, the suspension for up to six months of all or some of its operations with foreign exchange, gold or silver.

ARTICLE 33.- The Bank of Mexico may set limits on the amount of active and passive transactions involving exchange risks of the intermediaries mentioned in the Article 32.

Second paragraph.-Repeated

Third paragraph.-Repeated

ARTICLE 34.- The dependencies and entities of the Federal Public Administration that do not have the character of financial intermediaries, must maintain their foreign currency and carry out its operations, subject to the rules, guidelines and policies that the Bank of Mexico establishes. They shall provide the Bank with the information they request from them in respect of their operations with foreign currency and shall be obliged to dispose of their currencies to the Bank itself in the terms of the provisions which it provides, which may not be set out in terms of market conditions.

ARTICLE 35.- The Bank of Mexico shall issue the provisions in accordance with which the exchange rate is determined to be calculated as the equivalence of the national currency. to settle payment obligations in foreign currency, contracted in or out of the Republic to be fulfilled in this. It may also determine the exchange rates applicable to transactions in respect of which currency is acquired against the delivery of national currency, provided that both or some of these benefits are met on national territory.

ARTICLE 35 Bis.- The Bank of Mexico, in order to ensure compliance with the regulation it carries out, will be able to carry out the supervision of intermediaries and financial institutions subject to the regulation that is issued. This power shall include inspection and surveillance to verify compliance with the provisions of this Law and the provisions issued by the Bank of Mexico. For the exercise of these powers, the Bank shall act ex officio in accordance with the provisions of this same Law and the rules that the Board of Government may issue.

The Bank of Mexico shall carry out the inspection referred to in the preceding paragraph by means of visits, verification of operations and the review of registers and systems, in the facilities, offices, branches or automated equipment of the intermediaries, in order to verify compliance with the provisions issued by the Bank of Mexico, subject to the exceptions established by the special laws.

For the purposes of the foregoing paragraph, financial intermediaries, their representatives and their employees shall be obliged to allow the staff accredited by the Bank of Mexico, access to the place or places and systems subject to the visit, as well as to provide facilities and reports to such staff for the development of their work.

In case the person or persons with whom you understand the due diligence of the visits you practice the Bank of Mexico in terms of the rules to which the This article, refuse to receive the respective order of business or in any way prevent, impede or impede the practice of such diligence, the intermediaries and financial institutions concerned shall be sanctioned in accordance with the provided for in the first paragraph of Article 36 (b) (b) of Article 36 (2) Law, without prejudice to the Bank of Mexico continuing the visit in terms of these rules.

The surveillance will be carried out through the analysis and monitoring of the information that financial intermediaries supply to the Bank of Mexico.

ARTICLE 36.- Financial intermediaries will be required to provide the Bank of Mexico with information that it requires on its operations even in respect of any of its operations. or some of them individually, the data that allows to estimate their financial situation and, in general, the one that is useful to the Bank to provide the proper fulfillment of their functions.

Without prejudice to the supervisory powers referred to in Article 35 Bis of this Law, the Bank of Mexico will seek to coordinate with the commissions monitoring the financial system, with the intention of practicing the visits to the intermediaries scheduled annually, jointly with these authorities according to their capacities, without prejudice to the visits that the Bank of Mexico and the the authorities may practice in an extraordinary manner or in any time, in accordance with the provisions applicable to them.

ARTICLE 36 Bis.- The violations of this Law or the provisions that the Bank of Mexico may issue on the basis of this or other laws to which it is The first paragraph of Article 26 above shall be punishable by an administrative fine imposed by the Bank itself in accordance with the following:

I. Multa for an equivalent amount of 1,000 days of daily general minimum wage in the Federal District, in force on the day on which the conduct is conducted, up to five percent of the total sum of the capital paid and reserves of the capital of the intermediary or financial institution concerned which it has reported, in terms of the applicable provisions, at least in advance of the date on which the performed the conduct subject to the sanction:

(a) To intermediaries and financial entities for active, passive, or services, which they perform in contravention of this Law or the provisions that are issued in terms of this same Law, as well as for non-compliance with the other provisions of the Bank itself that other orders entitle it to issue;

(b) To financial intermediaries performing operations identified in the first Article 32 paragraph, in contravention of the provisions that the Bank shall issue to the effect, and

c) To the financial intermediaries referred to in the first paragraph of Article 32 transgredan the limits that the Bank of Mexico establishes in accordance with Article 33.

II. Multa for an equivalent amount of 3,000 to 15,000 days of general minimum wage daily in the Federal District, in force on the day the offending conduct takes place:

a) To intermediaries and financial institutions that breach the obligation of to provide, in the form, conditions, deadlines and other characteristics that the Bank of Mexico determines, the information or documentation that the Bank of Mexico requires in terms of the provisions of this Law or any other that grants it powers to do so, as well as in the provisions which, for those purposes, issue in accordance with with those laws, and

b) To intermediaries and financial entities that refuse to receive a warrant visit, or in any way prevent, hinder or hinder the exercise of the supervisory faculty of the Bank of Mexico itself.

III.          Fine for an equivalent amount of 5,000 days of daily minimum daily wage in the Federal District, in force on the day the conduct takes place, up to five percent of the total sum of the paid capital and reserves of the capital of the the intermediary in question which has been reported, in terms of the applicable provisions, at least in advance of the date on which the conduct was carried out;

a) Financial intermediaries for incurring missing investments which are to be maintained in accordance with the provisions of Article 28 of this Law, and

b) To financial intermediaries for refraining from constituting, where available the Bank of Mexico, the deposits referred to in the second paragraph of Article 32 of this Law.

As an exception to the provisions of this article, it will not be applicable to the sanctions that the latter points out in the case of non-compliance with the provisions of the Bank of Mexico provided for in other orders which, in turn, provide for specific penalties applicable to such cases.

ARTICLE 36 Bis 1.- Financial intermediaries and entities, through its Director-General or equivalent and with the opinion of the Audit Committee, may subject to the authorization of the Bank of Mexico a self-correction program when they are in the performance of their activities, or the audit committee as a result of the functions they have conferred, detect irregularities or non-compliance as provided for in this Law and other applicable provisions.

shall not be subject to a self-correction programme in the terms of this Article:

I.             The irregularities or non-compliances which are detected by the supervisory committees of the financial system in the exercise of their powers of inspection and surveillance, prior to the submission by the intermediaries and financial institutions, of the respective self-correction program.

The irregularity was deemed to have been previously detected by the commissions monitoring of the financial system, in the case of surveillance powers, where the irregularity has been notified to the intermediaries and financial institutions; in the case of the inspection powers, where it has been detected in the during the inspection visit, or corrected after the inspection has been carried out Requirement in the course of the visit;

II.            Where the violation of the standard in question corresponds to a crime, or

III.          In the case of any of the violations that the Bank of Mexico, the laws or the applicable provisions consider to be serious.

ARTICLE 36 Bis 2.- The self-correction programs referred to in the previous article shall be subject to the general provisions of the Bank of Mexico. In addition, they shall be signed by the chairman of the audit committee of the intermediaries and financial institutions, and shall be submitted to the Board of Directors or equivalent body in the immediate post-application of the authorization submitted to the Bank of Mexico. It shall also contain any irregularities or non-compliance with the provisions which have been considered to be contrary to the effect; the circumstances which gave rise to the irregularity or non-compliance with which it was committed; actions taken or intended to be taken by intermediaries and financial institutions to correct the irregularity or non-compliance that prompted the programme.

Where intermediaries and financial institutions require a period of time to remedy the irregularity or non-compliance committed, the self-correction programme must include a detailed calendar of activities to be performed for that purpose.

If the Bank of Mexico does not order the intermediaries and financial institutions concerned to make modifications or corrections to the self-correction program within the 20 working days following its submission, the programme shall be authorised in all its terms.

When the Bank of Mexico directs intermediaries and financial institutions to amend or amend them for the purpose of implementing the program in this Article and other applicable provisions, they shall have a period of five working days from the respective notification to remedy such deficiencies. This period may be extended for only five additional working days, subject to the authorisation of the Bank of Mexico.

If the deficiencies referred to in the preceding paragraph are not remedied, the self-correction programme shall be for failure to be submitted and, consequently, the Irregularities or non-compliances committed may not be the subject of another self-correction programme.

ARTICLE 36 Bis 3.- For the duration of the self-correction programs authorized by the Bank of Mexico in terms of Articles 36 Bis 1 and 36 Bis 2 of this order shall refrain from imposing on intermediaries and financial institutions the penalties provided for in this Law or on the provisions it issues, for irregularities or non-compliances whose correction provides for such penalties. programmes. In addition, the time limit for imposing the penalties shall be interrupted for such a period, resuming until it is determined that the irregularities or non-compliance of the self-correction programme have not been remedied.

The audit committee in the intermediaries and financial institutions shall be obliged to follow up the implementation of the authorised self-correction programme. inform the Board of Directors and the director-general or equivalent bodies or persons of their progress, as well as the Bank of Mexico in the form and terms that the Bank of Mexico establishes in the general provisions referred to in the Article 36 Bis 2 of this Law. The above, regardless of the Bank of Mexico's ability to monitor, at any time, the degree of progress and compliance with the self-correction program.

If, as a result of the reports of the audit committee or the inspection and surveillance of the Bank of Mexico, it determines that the irregularities or non-compliances which are the subject of the self-correction program within the prescribed period, will impose the corresponding sanction by increasing the amount of the program up to forty percent; being updatable said amount in terms of the provisions Tax applicable.

The provisions of this article shall apply to the Financial Entities and the Chambers of Compensation referred to in the Law for the Transparency and Ordering of the Financial Services.

ARTICLE 37.- The Bank of Mexico may suspend all or some of its operations with financial intermediaries that infringe this Law or the provisions emanating from it.

CHAPTER VI

From Government and Surveillance

ARTICLE 38.- The exercise of the functions and administration of the Bank of Mexico will be entrusted, in the field of their respective competencies, to a Governing Board and a Governor.

The Governing Board shall be composed of five members, appointed in accordance with the seventh paragraph of Article 28 of the Constitution. Among these, the Federal Executive will appoint the Governor of the Bank, who will preside over the Governing Board; the other members will be referred to as Subgovernors.

May be subject to impeachment in accordance with Articles 108 and 110 of the Political Constitution of the United Mexican States, the servers public that do not comply with the provisions contained in this Law.

ARTICLE 39.- The designation of a member of the Governing Board shall be in person who meets the following requirements:

I.- Being a Mexican citizen by birth who does not acquire another nationality, be in full enjoyment of his civil and political rights and not be more than sixty-five years completed on the date of commencement of the period during which he or she will serve.

II. Enjoy recognized competence in monetary matters, as well as having occupied, for at least five years, high-level positions in the Mexican financial system or in the agencies, agencies or institutions that perform functions of authority in financial matters.

For the designation of two of the five members it will not be necessary to satisfy the requirements of the previous paragraph; but in any case, it must be professional distinguished in economic, financial or legal matters. None of these two members may be appointed as Governor before they have served three years in office, and

III. Not having been sentenced for intentional crimes; disabled to exercise trade or to perform a job, job or commission, in the public service or in the Mexican financial system; nor removed prior to the position of a member of the the Governing Board, unless the latter has been the result of physical incapacity already exceeded.

ARTICLE 40.- The position of Governor will last six years and that of the Deputy Governor will be eight years. The period of the Governor shall begin on the first of January of the fourth calendar year of the period corresponding to the President of the Republic. The Subgovernors ' periods will be staggered, taking place every two years and beginning on January 1, the first, third and fifth year of the Federal Executive's period. Persons holding those positions may be appointed members of the Governing Board more than once.

ARTICLE 41.- The vacancy that occurs in a post of Subgovernor shall be covered by the new member designated to integrate the Governing Board. In the case of a vacancy in the post of Governor, the Federal Executive may appoint a Deputy Governor in office, or appoint a new member of the Governing Board and, already integrated, appoint among its five members. to the Governor. As Governor's appointment is made, the longest-serving Deputy Governor will be the Bank's Acting Governor and will chair the Governing Board. In the event that two or more Subgovernors have the same seniority, the Governing Board shall elect the Acting Governor from among them.

Members who fill vacancies that occur prior to the termination of the respective period will last in their position only for the time that they will fail to perform at the time of their replacement. If, at the end of the period corresponding to the Governor, a Deputy Governor is appointed to hold such post, the appointment referred to shall be for six years regardless of the time he has been a Deputy Governor.

ARTICLE 42.- The Governor and the Subgovernors shall refrain from participating in the representation of the Bank in partisan political acts.

ARTICLE 43.- They are causes of removal of a member of the Governing Board:

I. Mental incapacity, as well as physical incapacity to prevent the correct exercise of their functions for more than six months;

II. The performance of any employment, position or commission, other than those provided for in the seventh paragraph of Article 28 of the Constitution;

III. Stop being a Mexican citizen or gathering any of the requirements set out in Article 39 (III);

IV. Failure to comply with the Governing Board's agreements or to act deliberately in excess or defect of their privileges;

V. Use, for the benefit of yourself or third parties, the confidential information available to you on the basis of your charge, as well as disclose the above information without the authorization of the Governing Board;

VI. Submit knowingly, to the consideration of the Governing Board, false information, and

VII. To be absent from work without authorization from the Governing Board or without a cause of force majeure or justified reason. The Governing Board may not authorize absences for more than six months.

The Governor may also be removed for failing to comply with the agreements of the Committee on Changes.

ARTICLE 44.- Compete the Governing Board to rule on the existence of the causes of removal mentioned in the previous article, and must do so at the request of the President of the Republic or at least two of its members. The opinion shall be drawn up in accordance with the resolution of the majority of the members of the Governing Board, after granting the right of hearing to the affected party and without taking part in the vote.

The opinion, with the supporting documentation, including the written argument that, if any, the affected party has filed, will be sent to the Federal Executive. The latter shall send it, accompanied by the aforementioned documentation and with its reasoning of origin or improvenance of removal, to the Chamber of Senators or, if necessary, to the Permanent Commission, for final resolution.

ARTICLE 45.- The Governor or at least two of the Subgovernors may convene a meeting of the Governing Board, whose sessions shall be held with the assistance of less than three of its members. If the Governor is not present, the session shall be presided over by the person appointed by the Governor or, failing that, by the Deputy Governor, to whom the procedure provided for in the first paragraph of Article 41 applies.

The resolutions shall require the approval of the majority of the present, except for the case provided for in the first paragraph of Article 44. Who is in session will have a quality vote in case of a tie.

The Secretary and the Undersecretary of Finance and Public Credit will be able to attend the sessions of the Governing Board, without a vote, for which they will be previously called. by giving them the order of the day concerned. Such officials may convene a meeting of the Governing Board and propose matters to be dealt with therein.

The Board may agree to the assistance of officials of the Institution to their sessions to give them directly the information they request.

Those who attend the sessions shall be required to keep confidentiality in respect of the matters dealt with in them, unless expressly authorized by the Governing Board to do any communication.

ARTICLE 46.- The Governing Board will have the following powers:

I. Determine the characteristics of the banknotes, subject to the provisions of Article 5., and propose to the Secretariat of Finance and Public Credit, the metallic compositions of the coins in accordance with the provisions of the Monetary Law of the United Mexican States;

II. Authorize currency minting and banknote manufacturing orders;

III. Resolve the demonetization of banknotes and procedures for currency inuse and destruction;

IV. Resolve the Bank's lending to the Federal Government;

V. To fix the policies and criteria under which the Bank performs its operations, which may determine the characteristics of the operations and those which, due to their importance, must be submitted in each case to their prior approval;

VI. Authorize the issuance of monetary regulation bonds and fix the characteristics of these bonds;

VII. Determine the characteristics of the securities to be charged to the Federal Government which the Bank issues in accordance with the second subparagraph of Article 12 (IV) and the conditions under which those securities are placed and the other securities referred to therein. paragraph;

VIII. Establish the policies and criteria under which the rules provided for in Chapter V are issued, without prejudice to the powers of the Committee on Changes in accordance with Article 22;

IX. Approve the Bank's and members ' exposures and reports on the policies and activities of the Bank;

X. Approve the financial statements for each financial year, as well as the monthly consolidated account statements;

XI. Issue the general rules and criteria to which the drawing up and exercise of the Bank's current expenditure and physical investment budget should be subject to, as well as the adoption of such a budget and the amendments to be made to it during the the exercise. The Governing Board shall do the above, in accordance with the criterion that the evolution of the said budget shall be consistent with that of the Federation's Government Budget;

XII. Issue, subject to the general criteria laid down in Article 134 of the Constitution, the rules under which the Bank is required to contract the acquisitions and disposal of movable property, the leases of all types of property, the construction of real estate, as well as the services of any nature;

XIII. Solve on the acquisition and disposal of shares or social parts by the Bank of companies that provide services to it;

XIV. Authorize the acquisition and disposal of buildings;

XV. Resolver on the constitution of the reserves referred to in Article 53;

XVI. Approve the Bank's Rules of Procedure, which must be published in the Official Journal of the Federation;

XVII. Approve the General Conditions of Work to be observed in the relations between the Bank and its staff, as well as the salary tabulators, in the concept that the remuneration of the Bank's employees and employees shall not be exceed those collected by the members of the Governing Board, except in cases where given the conditions of the labour market of any specialty, higher remuneration is required;

XVIII. Name and remove the secretary of the Governing Board, as well as his deputy, who shall be Bank officials;

XIX. Appoint and remove officials occupying the first three hierarchical levels of the Institution's staff;

XX. Approve policies to cancel, in whole or in part, debits from third parties and in favour of the Bank, where the practical impossibility of its recovery is notorious, or this is economically inconvenient for the institution, and

XXI. Resolve other matters that the Governor submits to his consideration.

ARTICLE 47.- Corresponding to the Governor of the Bank of Mexico:

I. To be responsible for the administration of the Bank, the legal representation of the Bank and the exercise of its functions, without prejudice to the powers conferred on the Governing Board by this Law;

II. Run the agreements of the Government Board and the Committee on Changes;

III. Subject to the consideration and, where appropriate, approval by the Governing Board of the Bank's exposures and reports referred to in Article 46 (IX), as well as the documents referred to in fractions X, XI, XII, XVI and XVII of the referred to in Article 46

IV. Act with the status of proxy and fiduciary delegate;

V. Be the link between the Bank and the Federal Public Administration;

VI. To be the Bank's spokesperson, being able to delegate this faculty to the Subgovernors;

VII. Constitute regional councils;

VIII. Agree on the establishment, change and closure of branches;

IX. Designate the Subgovernors to be charged or commissions on behalf of the Bank;

X. Designate and remove proxies and trust delegates;

XI. Name and remove the Bank's staff, except that referred to in Article 46 (XIX);

XII. Set, according to the tab approved by the Governing Board, the staff salaries and approve the programs to be applied for their training and training, and

XIII. To appear before the Senate of the Republic of the Republic every year, during the second regular session, to submit a report of the compliance of the command.

ARTICLE 48.- The regional councils provided for in Section VII of Article 47 shall have only consultation functions, as well as for obtaining and disseminating information from general character in the economic field and, in particular, financial.

ARTICLE 49.- The remuneration of the Governor of the Bank, as well as that of the Subgovernors, shall be determined by a committee composed of the Chairman of the National Banking Committee and by two persons appointed by the Secretary of Finance and Public Credit, whose designation does not produce a conflict of interest and which are of recognized experience in the labor market in which the public credit institutions participate and private, as well as the regulatory authorities of these.

The committee will meet at least once a year, and will take its resolutions on the favorable vote of the majority of its members, who will have no alternates. In order to adopt its resolutions, the committee will have to consider the remuneration existing in the Bank and the evolution of the remuneration in the country's financial system, having as a guiding criterion that, given the conditions of the aforementioned market The Board of Government has suitable members and the Bank can hire and retain duly qualified staff.

ARTICLE 50. The Secretary of Finance and Public Credit will request a college or institute of accountants broadly representative of the profession, propose a list of reputable firms, including the Bank's external auditor with the approval of the Audit Committee of the Federation's Higher Audit Office, and will hire its services on behalf of the Bank. The procurement of the external auditor shall not be carried out for periods longer than five years.

The auditor will have the most extensive powers to examine and rule the Bank's financial statements, as well as to review accounting and other documentation related to the Bank's financial statements. To send to the Federal Executive and the Congress of the Union copies of the opinions it presents to the Governing Board, and a report on the exercise of the budget of current expenditure and physical investment.

CHAPTER VII

General Provisions

ARTICLE 51.- The Bank shall send to the Federal Executive and the Congress of the Union and, in the latter's recesses, to its Standing Committee, the following:

I.             In January of each year, an exhibition on monetary policy to be followed by the institution in the respective year, as well as a report on the budget of current expenditure and physical investment of the institution, corresponding to such exercise, and

II.            Not later than forty-five working days after the end of each quarter, a report on inflation, economic developments and the conduct of the country's economic indicators in that quarter, as well as the execution of the monetary policy of the quarter in question and, in general, the activities of the Bank during that period, in the context of the national and international economic situation.

Additionally, the Bank will send an annual report to the Congress of the Union on the exercise of the powers conferred on it by the Law for Transparency and Management of Financial Services.

ARTICLE 52.- Any of the Chambers of the Congress of the Union may subpoena the Governor of the Bank to report on the policies and activities of the Institution.

ARTICLE 53.- The Bank of Mexico shall, whenever possible, preserve the real value of the sum of its capital plus its reserves and increase such value as the gross domestic product in real terms. The Bank of Mexico may only constitute reserves in addition to the provisions of this Article, when they result from the revaluation of assets or so agree with the Secretariat of Finance and Public Credit.

ARTICLE 54.- The Bank's financial year will start on January 1 and end on December 30 and one of December each year, the institution will be obliged to publish the general balance sheet for the year, as well as a consolidated statement of accounts on the last day of each month.

ARTICLE 55.- The Bank shall be a non-profit institution and shall provide the Federal Government with the full amount of its remaining operating reserve after the reserve has been established. provided for in this Law, provided that this does not imply the reduction of reserves from the revaluation of assets. Such delivery shall be made no later than the month of April of the immediate following year to which the remainder corresponds.

ARTICLE 56.- The banknotes and metal coins that the Bank of Mexico puts into circulation shall be recorded as liabilities in the institution's balance sheet at its value nominal. As long as such parts are not put into circulation they shall be included in the Bank's assets at their manufacturing cost or at their acquisition value, as appropriate, the respective amounts must be adjusted as the cost of replenishment changes. Referred to. Upon being put into circulation for the first time they will be discharged into the asset with charge to results. The Bank shall record in its asset with credit results the amount obtainable from the disposal of the metal of the coins to be withdrawn from circulation.

The currencies referred to in Article 2o (c). of the Monetary Law of the United Mexican States that are not intended to serve as general means of payment, and those of Article 2o. bis of that Law, shall be counted in the terms agreed by the Governing Board.

ARTICLE 57.- The operations referred to in Article 46 (XII) shall be carried out through public tenders, except in the following cases:

I. For purchases of food or other perishable goods;

II. If there are at least three suitable providers or bidders;

III. When a contract is terminated early or terminated;

IV. When the amount of the contract does not exceed the amounts equivalent to:

a) Sixty times the current daily minimum wage in the Federal District raised per year, dealing with acquisitions, leases and related service delivery with movable property;

b) Ninety times the current daily minimum wage in the Federal District raised per year, in the case of real estate, and

c) Ten times the daily general minimum wage in force in the Federal District raised per year, as per person made legally trained to do so, in the case of the disposal of movable property;

V. Dealing with fortuitous or force majeure cases;

VI. Where there are works or services of conservation, maintenance, restoration, repair and demolition where it is not possible to specify its scope, to establish the catalogue of concepts and quantities of work, to determine the specifications (s) or the implementation of the implementation programme;

VII. Dealing with the acquisition or disposal of real estate as well as services related to the real estate work;

VIII. There are circumstances that may lead to serious disruption, loss or additional costs for the Bank;

IX. After two tenders have been issued without it being possible to award the corresponding contract, or

X. In the case of purchases of inputs that the Bank requires for the manufacture of banknotes or purchases for the metal currency.

ARTICLE 58.- The Bank of Mexico, members of its Governing Board, as well as officials and employees of the Institution, shall be applicable to the provisions relating to the banking secrecy and the trust provided in law.

ARTICLE 59.- They are trusted workers of the Bank of Mexico:

I. Staff who occupy positions of deputy or senior staff, workers of equivalent rank to that of the former and employees assigned to the Board of Government and members of the Board of Government and their members; advisers and staff secretarial services of the above mentioned officials; heads of division and office; security personnel; pilots, co-pilots and flight engineers; technical staff assigned to the areas of change, metals, investments, securities and information technology; the telecommunications operators and passwords for which they are transmitted; as well as technical personnel handling confidential information, and

II. Those mentioned in the Regulatory Law of the XIII BIS fraction of Article 123 of the Political Constitution of the United Mexican States, which are not included in the previous fraction.

The Governor and the Bank's Subgovernors will not be part of the institution's staff.

ARTICLE 60.- Staff who occupy positions of deputy manager or superior and workers of rank equivalent to that of the former, may not have employment, position or commission, in the Federal Public Administration, with the exception of those in which they act on behalf of the Bank or in teaching, scientific, cultural or charitable associations.

ARTICLE 61.- The Federal Law on Public Servants ' Responsibilities shall apply to members of the Board of Government and to the Bank's staff, subject to the next:

I. The application of the said Law and the provision of its strict observance, except as regards the Political Judgment to which the members of the Governing Board may be subject, shall be the responsibility of a Committee of Responsibilities composed of the member of the The Governing Board appointed by the Board of Directors and by the holders of the Bank's legal and financial control areas.

Dealing with violations committed by members of the Governing Board or by officials occupying posts in the three highest levels of staff, it will be the Board of Directors. Government who determines the responsibility resulting and imposes the corresponding sanction, to which effect the Commission of Responsibilities will take the respective file, and

II. The persons subject to filing a declaration of a patrimonial status shall be the members of the Governing Board and those who occupy positions of deputy manager or superior in the institution, as well as those who, by the nature of their duties, are appointed in the Rules of Procedure. This statement shall be filed with the Bank's Comptroller, who shall keep track of the evolution of the said estate situation, informing the Commission of Responsibilities or the Governing Board, as appropriate, the comments which, where appropriate, result from such monitoring.

Against the resolutions referred to in this article, no means of defense will be provided to the Federal Court of Justice and Administrative Justice.

ARTICLE 62.- The Bank of Mexico may:

I. In coordination with the other competent authorities, develop, compile and publish economic and financial statistics, as well as operate information systems based on them and collect the data necessary for such purposes;

II. Carry out, directly or through third parties, the marketing of commemorative coins, as well as of the metallic notes and coins, which have special packaging or finishing;

III. Use the resources available to them, in the manufacture of goods for third parties and in the provision of services to third parties, provided that this does not affect the proper performance of their duties; and

IV. Acquire or lease the movable property and hire the services and the real estate, necessary or suitable for its proper operation and operation, as well as to dispose of those movable assets that will cease to be useful for such effects.

ARTICLE 63.- The Bank of Mexico is prohibited:

I. Grant warranties;

II. Acquire or lease properties that it does not require for the performance of its functions. Where it is necessary for the Bank to receive, or be awarded, real estate or rights in payment of its claims, as well as when it is no longer necessary for the Bank to be the owner, it shall be obliged to do so within a maximum period of three years. years, and

III. Acquire securities representative of the capital of companies, except in the case of undertakings which provide them with services which are necessary or suitable for carrying out their duties.

The prohibitions and limitations laid down in this Law shall not apply to the Bank, when it acts in compliance with its obligations of a labor nature or those it acquires with the members of its Governing Board as consideration for the services they provide, and may in such cases carry out the operations and constitute the necessary or appropriate reserves for such compliance.

ARTICLE 64.- Against the penalties provided for in this Law, the review is to be carried out, which must be brought before the the administrative procedure laid down in the Rules of Procedure of the Bank of Mexico, within 15 working days of the date of notification of such decisions.

The resource will have the object of revoking, modifying, or confirming the claimed resolution. The statement of interposition shall state the name and address of the appellant, the contested decision and the grievances to be applied, accompanied by the evidence deemed necessary, as well as with the accredit the personality of the advocate.

The notification, processing and resolution of the appeal shall be applicable to them in a way that provides for the provisions contained in Articles 130, 132, 134, 135, 136, third paragraph, 137, 139 and 140 of the Fiscal Code of the Federation and the regulatory provisions applicable to these precepts.

ARTICLE 65.- The review facility shall be resolved within a maximum of 20 working days from the date of its filing, if not, the contested act shall be deemed to be confirmed The resource shall be made out of compulsory exhaustion before going to the avenue of protection.

When the aforementioned document does not indicate the grievances or the act claimed, it shall be discarded as inadmissible. If the tests were omitted, they will be held for not offered.

The resolution of the appeal shall contain the fixing of the contested act, the legal basis on which it is supported and the points of resolution.

Against the resolutions referred to in this article, no means of defense will be provided to the Federal Court of Justice and Administrative Justice.

ARTICLE 66.- The resolutions provided for in the first paragraph of Article 64 shall be executed:

I. Where no review appeal is lodged within the time limit referred to in Article 64;

II. If the affected person does not credit, within 20 working days of the notification of the relevant resolution, that he has filed a request for protection against that resolution;

III. If in the trial of amparo the suspension of the claimed act is denied, or

IV. Of having granted the suspension in the trial of amparo, until a firm sentence is handed down against the complaint.

ARTICLE 67.- The fines that the Bank of Mexico imposes must be paid within 15 working days of its notification. Where the fines are not paid within the period specified in this paragraph, the amount shall be updated from the month in which the payment was made and until the payment is made, in the same terms as the Tax Code of the Federation.

In case financial institutions or intermediaries pay the fines imposed by Banco de Mexico within the fifteen working days indicated in the paragraph A reduction of twenty percent of the amount shall be applied, provided that no defense has been filed against such a fine.

The administrative procedure of execution for the collection of the fines that would not have been covered in due time to the Bank of Mexico, will be applied by the Secretariat of Finance and Public Credit, or by the Bank itself through the administrative unit that points out its Rules of Procedure.

The unit referred to in the preceding paragraph shall apply the rules laid down in the Tax Code of the Federation for the administrative procedure of execution. The said Rules of Procedure shall indicate the offices to be known and to resolve the resources provided for in that Code relating to that procedure.

If the Central Bank will take the infringer into account, it will not be necessary to apply the administrative procedure of execution, and the fine can be effectively charged. amount to that account.

ARTICLE 68.- The Law of Credit Institutions, Commercial Law, Banking and Commercial Uses and the Civil Code for the Federal District, in Common Matter, and for all the Republic in Federal Matter, shall apply to the operations of the Bank, suppletingly to this Law and in the order in which they are mentioned.

TRANSIENT

FIRST.- This Law will take effect on 1o. April 1994, with the exception of the second paragraph of this article and the third and tenth third transitional articles, which shall enter into force on the day following the publication of the Law in the Official Journal of the Federation.

The designation of the first members of the Governing Board will be made in the terms provided for in this Law, prior to March 31, 1994.

SECOND.- The period of the first Governor of the Bank will expire on 31 December 1997. The periods of the first Subgovernors will expire on December 31, 1994, 1996, 1998 and 2000, respectively, with the Federal Executive having to point out which of the periods mentioned will correspond to each Subgovernor.

THIRD.- The remuneration of the Governor and the Subgovernors referred to in the preceding article, corresponding to the first financial year of the Bank, shall be determined in accordance with the provisions of Article 49 of the present Law, prior to the appointment of the first members of the Governing Board.

FOURTH.- The instructions of the Treasurer of the Federation to the Bank, in terms of section I of Article 12, shall not be made in advance as indicated in the section I itself of that Article, for a period of three years from the date of the entry into force of this Law. In the course of the same period, the Treasurer of the Federation may continue to carry out the checks and other documents referred to in Section III of that Article.

QUINTO.- The Bank of Mexico, a decentralized agency of the Federal Government, is transformed into the new person of public law that refers to this Law and retains the ownership of all the assets, rights and obligations of the Federal Government. first.

SIXTH.- The Bank of Mexico's Rules of Procedure must be issued within a period of no more than six months from the day on which the Governing Board is legally installed. Until such time as this Regulation is issued, it will continue in force on the Official Journal of the Federation on July 4, 1985, and the appeal provided for in Article 64 will be filed with the Bank of Mexico's Legal Management.

When the current Regulation or any other legal instrument refers to the Director General of the Bank, the Governor of the Bank shall be deemed to be in the the scope of the privileges conferred upon it by this Law.

SEVENTH.- The powers, mandates, designations of fiduciary delegates and in general the representations granted and the powers granted by the Bank of Mexico prior to the entry into force of this Law, shall remain in their terms in are not expressly modified or revoked.

EIGHTH.- The metal coins currently in circulation will become part of the liability on the institution's balance sheet, applying the scheme provided for in Article 56.

Federal Government funds deposited with the Bank of Mexico derived from the difference between the face value of the coins delivered by the Mint to the Bank of Mexico. the immediate day before the present Law enters into force and the costs incurred in its production will be in favor of the latter.

NINTH.- The Bank of Mexico may put into circulation at any time the banknotes with the date of issue prior to the entry into force of this Law.

DECIMAL.- The Bank may continue to serve as a trustee in the trusts that it currently manages, which are not provided for in Article 7o. fraction XI, being able to receive from such trusts bank deposits of money.

The loans that the Bank of Mexico has granted before the date of entry into force of this Law to the public trusts of economic promotion that manage, may be held to maturity and may even be renewed once or more for a period of not more than 20 years.

In case of trusts other than those referred to in the second paragraph of this Article, the Bank shall be empowered to waive the fiduciary duty when it considers it convenient. In such cases the substitute trustee shall be designated by the persons listed below, in the order in which they are mentioned: the persons empowered to do so in accordance with the legal act governing the trust; the or the trustees, individualised, or, in the absence of the above, the Bank of Mexico itself. As long as the Bank continues to be a trustee in these trusts, it will be able to grant them extraordinary funding to avoid any breaches of its obligations.

TENTH FIRST.- As long as the Bank of Mexico issues the provisions referred to in this Law, those issued prior to its validity shall continue to apply in the case of corresponding. The administrative measures laid down in provisions laid down in this Law shall remain in force until they are revoked or amended by the competent authorities.

TENTH SECOND.- To financial intermediaries who have performed operations prior to the entry into force of this Law, in contravention of the provisions that they shall be repealed, the provisions in force shall apply to them at the time when such operations have been carried out.

TENTH THIRD.- The last financial year of the Bank of Mexico, a decentralized agency of the Federal Government, will begin on 1. of January 1994 and shall end on 31 March 1994. During that financial year the institution shall not be subject to the provisions of Article 7o. of the Organic Law of the Bank of Mexico.

The first financial year of the Bank of Mexico that regulates this Law will begin on 1 July. of April 1994 and shall end on 31 December 1994.

The remainder of the Bank of Mexico's operation corresponding to the financial year referred to in the first paragraph of this Article shall be delivered to the Federal Government at the latest in the month. of April 1995.

TENTH QUARTER.- The Bank of Mexico will send to the Federal Executive and the Congress of the Union or, where appropriate, its Permanent Commission, the documents referred to in the Article 51 corresponding to the first financial year of the institution, within the immediate month following the one in which this Law enters into force, as well as a report on the evolution of the internal financing of the Bank of Mexico and the behavior of the account of the Federation Treasury that the Bank itself brings to the government Federal, during the months of January to March 1994.

With regard to the institution's first financial year, the Bank shall not be required to deliver the report referred to in Article 51 (II

.

TENTH FIFTH.- As of the entry into force of this Law and up to as long as the total real value of the capital plus the reserves of the Institution is greater than twenty per (a) the total number of banknotes and coins in circulation plus the institution's obligations in favour of financial institutions and the Federal Government, with the exception of deposits referred to in Article 9o (1); this total value shall not be increased in accordance with gross domestic product growth in the terms of the article 53. During the period referred to, the Federal Government and the Bank may agree to reductions to the said total real value, provided that they do not involve reducing the value to an amount representing a percentage lower than the said value nor do they have as a result of monetary expansion.

TENTH SIXTH.- The deposits referred to in Article 132 of the General Law of Titles and Credit Operations shall be constituted in National Financial, S.N.C. received by the Bank of Mexico prior to the commencement of this Law shall be preserved and delivered by it in accordance with applicable provisions.

TENTH SEVENTH.- When laws, regulations, decrees, agreements or other legal orders make mention of the Organic Law of the Bank of Mexico, or the latter, the reference This Law and the Institution that it regulates shall be understood as being made.

TENTH EIGHTH.- The Organic Law of the Bank of Mexico of December 21, 1984 is repealed.

Articles 31 fraction IV of the Organic Law of the Federal Public Administration, 13, first and second paragraphs of the Monetary Law of the United Mexican States, 48, are repealed. the second and tenth second transitional provisions of the Law on Credit Institutions, 24 of the Organic Law of the National Savings Board and the other provisions that oppose this Law.

It is left without effect, as regards the Bank of Mexico, as provided for in section VII of Article 31 of the Organic Law of the Federal Public Administration, in articles 1o., 8o. and 14 of the Law establishing the Fund for the Guarantee and Promotion of Agriculture, Livestock and Alawns, as well as in Articles 1o., 2o., 8o., and 21, fraction IV, of the regulation of that Law.

Mexico, D. F., as at 14 December 1993.-Dip. Cuauhtemoc López Sánchez, President.-Sen. Eduardo Robledo Rincon, President.-Dip. Sergio González Santa Cruz, Secretary.-Sen. Israel Soberanis Nogueda, Secretary.-Rubicas.

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I hereby express my request for the Decree at the residence of the Federal Executive Branch, in Mexico City, Federal District, on the fifteenth day of December of a thousand nine hundred and ninety-three.- Carlos Salinas de Gortari.-Heading.-The Secretary of the Interior, José Sponsorship González Blanco Garrido.-Heading.