Banking Savings Protection Act

Original Language Title: Ley de Protección al Ahorro Bancario

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Bank Savings Protection Act

BANKING SAVINGS PROTECTION ACT

Official Journal of the Federation on January 19, 1999

Last 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.

ERNESTO ZEDILLO PONCE DE LEÓN, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

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

LAW OF PROTECTION OF BANK SAVINGS, AND VARIOUS PROVISIONS OF THE LAWS OF THE BANK OF MEXICO, OF CREDIT INSTITUTIONS, OF THE MARKET ARE ADDED AND REPEALED OF VALUES AND TO REGULATE FINANCIAL POOLS.

ARTICLE FIRST.- The

is issued

BANKING SAVINGS PROTECTION ACT

TITLE FIRST

OF THE ACT OBJECT

ONLY CHAPTER

Article 1o.- This Law is intended to establish a system of protection for bank savings in favor of persons performing any of the guaranteed operations, in the terms and with the limitations that it determines; to regulate the financial support granted to the multiple banking institutions for the protection of the interests of the saving public, as well as to establish the bases for the organisation and operation of the public entity in charge of these functions.

This law is of public order and social interest and regulates the constitutional provisions conducive to it.

They will apply to this Law, the Credit Institutions Law, the Federal Law of the ParaState Entities, the Commercial Code and the Federal Law of Administrative Procedure.

Article 2o.- The banking savings protection system will be administered by a decentralized agency of the Federal Public Administration, with personality legal and equity, with its registered office in the Federal District, called the Institute for the Protection of Bank Savings.

Article 3o.- The constitution, operation, operation, control and evaluation of the Institute for the Protection of Bank Savings shall be governed by the provisions of This Law.

Article 4o.- When in this Law the obligation to the Institute for the Protection of the Bank Savings to publish any document or resolution is imposed, it will be understood This publication shall be made in the Official Journal of the Federation and in two newspapers of broad national circulation. Likewise, unless expressly mentioned, it is understood that the days included in the terms or terms referred to in this Law shall be natural.

Article 5o.- For the purposes of this Act:

I.     Institute for the Institute for the Protection of Banking Savings;

II.    Institution, in singular or plural, to the multiple banking institutions referred to in the Credit Institutions Act;

III.   Commission, to the National Banking and Securities Commission;

IV.    Governing Board, to the governing board of the Institute;

V.     Executive Secretary, to the head of the executive administration of the Institute, and

VI.    Goods, credits, rights, shares and other assets of any nature of which the institutions and other companies in whose capital the Institute participates, in terms of this Law, as well as any other the type of goods and rights that the Institute itself acquires for the purpose of its object and privileges, except those directly related to its administrative operation.

TITLE SECOND

OF THE BANKING SAVINGS PROTECTION SYSTEM

CHAPTER I

Of The Guaranteed Obligations

Article 6o.- For the purposes of this Act, the deposits, loans and loans referred to in fractions I and II of the Article 46 of the Credit Institutions Act.

The institutions have an obligation to inform the users of their services about the type and amount of the operations guaranteed in the terms of this Law.

Article 7o.- Repeals.

Item 8o.- Repeals

Article 9o.- Repeals

Item 10o.- The Institute will not guarantee the following operations:

I.      The obligations in favour of financial institutions, national or foreign;

II.    The obligations in favour of any company that is part of the financial group to which the institution belongs, where appropriate;

III.   The liabilities documented in negotiable securities, as well as the securities issued to the bearer. The guaranteed obligations, documented in nominative titles, shall be covered in accordance with Article 6. of this Law, as long as the titles have not been negotiated;

IV.    The obligations or deposits in favour of shareholders, members of the board of directors and officials of the first two hierarchical levels of the institution concerned, as well as general proxies with administrative powers and general managers, and

V.     Operations that have not been subject to the laws, regulations, administrative provisions, as well as sound banking practices and practices, in which the holder's bad faith exists and those related to unlawful acts or operations which In the cases of Article 400 Bis of the Criminal Code for the Federal District in the Matter of Common Fuero and for the entire Republic of Federal Fuero.

CHAPTER II

From Payment of Guaranteed Obligations

Article 11.- The Institute will pay the balance of the guaranteed obligations, considering the amount of principal and accessories, up to an amount equivalent to four hundred thousand units of investment per person, physical or moral, whatever the number and class of such obligations in his favour and in charge of the same institution.

Article 12.- Repeals

Article 13.- Repeals

Article 14.- Repeals

Article 15.- Repeals.

Article 16.- Repeals

Article 17.- For the sole payment of the guaranteed obligations, the Institute shall be subrogated to the rights of recovery, settlement, suspension of payments or bankruptcy of the institution, with the privileges corresponding to the persons to whom the payment was made, up to the amount covered, being sufficient title to the document in which the referred payment is recorded. The collection rights of the Institute above shall be given preference to those corresponding to the balance not covered by this guarantee.

Article 18.- The excess amount of the guaranteed obligations of the institution concerned, which would not have been covered by the Institute, may be claimed by the persons to whom the payment of those obligations was made to them, directly to that institution in accordance with the applicable laws, regulations and administrative provisions.

Article 19.- If any person does not agree to receive from the Institute the amount corresponding to the obligations guaranteed in his favor, calculated according to the provisions of this Title, may claim the amount relating to all the obligations guaranteed directly to the Institution, in accordance with the respective contract or title, as well as in terms of the statutory and statutory provisions applicable administrative.

CHAPTER III

Of The Quacks

Article 20.- In order to comply with the purpose of this Law, the institutions shall be obliged to pay the Institute the ordinary and extraordinary contributions which establish the Governing Board, in the terms and conditions laid down in this Chapter.

Article 21.- The Governing Board may establish different common shares for the institutions, depending on the risk to which they are exposed, on the basis of at the level of capitalisation of each of them and according to other indicators of a general nature which, in accordance with the rules of operation of the institutions, determines in an internal regulation the Institute's own Governing Board, which must be public knowledge.

Article 22.- The ordinary shares may not be less than 4 thousand, over the amount of passive operations the institutions have.

The institutions shall provide the Institute with the information of its passive operations for the calculation of the ordinary shares in accordance with the provisions to issue the Institute, after approval by its Governing Board. The Institute may carry out inspection visits to review, verify and validate the information referred to in this Article.

Article 23.- When under the conditions of the Mexican Banking System the Institute does not have sufficient resources to meet its obligations, the The Governing Board may establish extraordinary contributions which shall not exceed one year, from 3 to 1 000 in respect of the amount to which the institutions ' passive operations are concerned.

The sum of the ordinary and extraordinary shares may not exceed, in one year, from 8 to 1,000 the total amount of the passive operations of the institutions.

Article 24.- The Bank of Mexico will charge monthly to the accounts that it carries to the institutions, the amount of the quotas that it corresponds to pay, in the dates on which such payments are to be made. The amounts thus charged will be paid simultaneously to the Institute, deposited in full in a concentric account that the Bank of Mexico itself will take to the Institute.

Article 25.- The resources referred to in the previous article must be invested, as the Institute has them for the fulfillment of the object of this Law, in government securities of ample liquidity or in deposits with the Bank of Mexico. The Institute may only have the resources referred to in this Article, subject to the authorization of the Governing Board.

Without prejudice to the foregoing, the Institute may, by way of such account, keep in cash or in bank deposits the amounts necessary for its operation and administration costs.

Article 26.- The Institute shall publish quarterly the amount of the payments made by each Institution by way of the quotas referred to in this Chapter and forward to the Congress of the Union, as well as to the Federal Executive, through the Secretariat of Finance and Public Credit, the financial report of the Institute and a copy of the aforementioned publication.

Article 27.- The fees in favour of the Institute shall not be of a fiscal nature, as against their collection or any other resolution issued in accordance with this Law, no means of defence shall be provided before the Federal Court of Justice and Administrative Justice.

CHAPTER IV

From the Support and Programs for Financial Sanitation of the Institutions

Article 28.- Repeals.

Article 29.- Repeals.

Article 30.- Repeals.

Article 31.- Repeals.

Article 32.- Repeals.

Article 33.- Repeals.

Article 34.- Repeals.

Article 35.- Repeals.

Article 36.- Repeals.

Article 37.- Repeals.

Article 38.- Repeals.

Article 39.- Repeals.

Article 40.- Repeals.

Article 41.- Repeals.

Article 42.- Repeals.

Article 43.- Repeals.

Article 44.- Repeals.

Article 45.- In case the Institute is not in a position to meet its obligations, the Congress of the Union will dictate the measures it deems appropriate for the payment of the guaranteed obligations and the financing referred to in the following Article. This guarantee shall be recorded in accordance with the applicable law, in the securities or other instruments in which those obligations are documented.

Article 46.- When an emergency situation is present that affects the solvency of some Institution and the Institute does not have the necessary resources to to cover the guaranteed obligations or to carry out the capitalization or financial consolidation actions of any institution, the Governing Board shall immediately inform the Federal Executive and for that purpose it may contract financing, the amounts of which will in no case exceed 6%, every three years, of the total liabilities of the institutions published by the Commission in the preceding month.

For the purposes of the limit referred to in the preceding paragraph, the guarantees granted by the Institute shall also be taken into account.

Article 47.- Pursuant to Article 74, fraction IV of the Political Constitution of the United Mexican States, the Chamber of Deputies provide in a specific branch of the Federation's Government Budget, on a proposal from the Federal Executive, the corresponding budgetary allocation, which, if necessary, requires the Institute to meet the guaranteed obligations and the contracted financing referred to in the previous Article.

Article 48.- The funds and resources authorized in the Federation's Government Budget, received by the Institute under the terms of Title IV, in no case may be used for a purpose other than that authorised.

CHAPTER V

From The Precautionary Administration

Article 49.- Repeals.

Article 50.- Repeals

Article 51.- Repeals.

Item 52.- Repeals.

Article 53.- Repeals.

Article 54.- Repeals.

CHAPTER VI

From the Settlement, Suspension of Payments, and Bankruptcy of the Institutions

Article 55.- Repeals.

Article 56.- Repeals.

Article 57.- Repeals.

THIRD TITLE

OF THE BIENS

CHAPTER I

The Acquisition and Regime of Goods

Article 58.- Repeals

Article 59.- Goods, regardless of their nature and characteristics, will not be considered for any effect national goods, therefore they will not be the relevant legal and administrative provisions, not even those of a budgetary nature or relating to public expenditure.

Article 60.- They will not compute the investments made by the Institute in the Institutions, financial intermediaries and other types of companies and associations, for consider them as State-owned enterprises and therefore not be subject to the laws, regulations and administrative rules applicable to public entities.

CHAPTER II

From the Procedures for Administration, Disposal and Control of Goods

Article 61.- Repeals

Article 62.- Repeals

Article 63.- Repeals

Article 64.- Repeals

Article 64 Bis.- Repeated

Article 65. Once the enajenations are done, the grant of the use for free or the donations referred to in the above articles, the Institute it shall send a detailed report to the Secretaries of Finance and Public Credit and the Civil Service, as well as to the Chamber of Deputies through its Committee on Culture, within a maximum of 30 working days after its formalization.

In addition, the Institute's internal control body will monitor these operations on a timely basis, and the operational areas will formulate the circumstantial memory of each one of them.

Article 66.- The Institute shall send annually to the Federal Executive, with the details of the operations as of December 31, a copy of the memory to which This article refers to the previous article, so that together with the Federal Public Finance Account of the corresponding financial year, it will be presented to the Chamber of Deputies.

TITLE FOURTH

FROM THE INSTITUTE FOR THE PROTECTION OF BANK SAVINGS

CHAPTER I

Of The Privileges and Heritage

Article 67.- The Institute has as its object:

I.     Provide the institutions with the benefit of the interests of the persons referred to in Article 1. of this Law, a system for the protection of bank savings that guarantees payment, through the assumption by the Institute, in a subsidiary and limited form, of the obligations laid down in this Law, by those institutions, and

II.    Manage, in terms of this Law, the financial consolidation programs that you formulate and execute for the benefit of the savers and users of the Institutions and in safeguarding the national system of payments.

Article 68.- To achieve its object, the Institute will have the following attributions:

I.         Assume and, if applicable, pay in a subsidiary form, the obligations that are guaranteed by the Institutions, with the limits and conditions established in this Law;

II.         Receive and apply, where appropriate, the resources to be authorized in the respective Federation's Government Budget, in order to support in a subsidiary manner the fulfilment of the obligations that the Institute itself assumes in the terms of this Law, as well as to implement and manage programs to support savers and debtors in banking;

III.       Subscribe and acquire ordinary shares, subordinated debt securities and other debt securities issued by the institutions supporting them;

IV.        Subscribe to credit, carry out credit operations, provide guarantees, guarantees and assume obligations, in order to provide preventive support and financial consolidation programs, both for the benefit of the institutions and for the companies in whose capital the Institute is directly or indirectly involved;

V.          To participate in companies, to conclude contracts of association in participation or to constitute trusts, as well as in general to carry out the operations and contracts of a commercial or civil nature that are necessary for the fulfillment of their object;

VI.        Acquire from the Institutions to which the Institute supports as provided for in this Law, Goods other than those mentioned in the previous section III;

VII.       Grant financing to the institutions, as part of the consolidation programs, or when it contributes to increase the value of the recovery of the goods, and it is not possible to obtain financing from alternative sources conditions;

VIII.     Carry out the prudential administration of the Institutions in terms of Chapter V of Title II of this Law;

IX.        Fungir as liquidator or liquidator of the Institutions;

X.          To obtain financing under the limits and conditions set out in Article 46 of this Law and exclusively to develop with the resources obtained, actions of preventive support and financial consolidation of the Institutions;

XI.        Participate in the social capital or equity of companies related to the operations that the Institute may perform to achieve its object, including those of companies that provide it with complementary or ancillary services;

XII.       Participate in the administration of companies or companies, in whose capital or equity the Institute participates, directly or indirectly;

XIII.     Perform auctions, contests and tenders to dispose of the Goods or give them in administration;

XIV.      Hire the services of natural and moral persons, supporting and complementary to the operations carried out by the Institute;

XV.        Coordinate and participate in processes of merger, division, transformation and liquidation of institutions and companies or companies in whose capital the Institute participates;

XVI.      Defend their rights to or outside the courts and exercise the judicial actions or out-of-court procedures that they are responsible for, as well as engage in arbitration;

XVII.    Communicate to the Prosecutor's Office of the Federation the irregularities which, by reason of its competence, correspond to it, and are detected by personnel at the service of the Institute for the purpose of the development of their functions;

XVIII. Denounce or formulate a complaint to the Public Ministry of the facts know for the purpose of the development of their duties, which may be a criminal offence and shall be withdrawn or granted, subject to the authorisation of the Governing Board, where appropriate;

XIX.      Evaluate in a permanent manner the performance that the Institutions and the third parties specialized, if any, have with respect to the recovery, administration and disposal of Goods, in accordance with the provisions of this Law and the Law of Credit Institutions, and

XX.       The others who grant you this Law, as well as other applicable laws.

Article 69.- The Institute's heritage is formed by:

I.     The quotas to be covered by the institutions as referred to in Article 21 of this Law;

II.    The products, yields, and other goods derived from the operations that you perform;

III.   The interest, income, capital gains and other profits that you obtain from your investments;

IV.    The resources from financing;

V.     The movable and immovable property that it acquires for the fulfilment of its object;

VI.    Where appropriate, the resources received by the Institute under the terms of section II of Article 68 of this Law, and

VII. The other rights and obligations that the Institute receives, acquires or contracts for any legal title, as provided for in this Law.

Article 70.- The Executive Secretary will make it timely to the Federal Executive through the Secretariat of Finance and Public Credit, prior to the agreement of the Board of Government, the requirement for budgetary resources referred to in Article 47 of this Law.

Article 71.- The Institute's financial year will begin on 1. of January and will end on December 31 of each year. The Institute will publish its annual general balance sheet in the Official Journal of the Federation and in at least two daily newspapers of wide circulation, in the month of March each year.

Article 72.- The Institute will be applicable to Articles 68, 86, and 100 of the Credit Institutions Act.

Article 73.- The Institute will be able to make the necessary steps to agree to the replacement of fiduciary duties, in the case of institutions that are which are administered by the Commission or which are being intervened by the Commission.

CHAPTER II

From Government & Administration

Article 74.- The government and administration of the Institute are in charge of a Governing Board and an Executive Secretary, respectively, who will be supported by the administrative structure that the Governing Board itself determines.

Article 75.- The Governing Board will be composed of seven vowels: the Secretary of Finance and Public Credit, the Governor of the Bank of Mexico, the President of the Commission and four vowels appointed by the Federal Executive and approved by the two-thirds of the members of the Senate and in their recesses, by the same proportion of members of the Permanent Commission of the Congress of the Union.

The first three vowels indicated in the preceding paragraph shall appoint alternate members.

Article 76.- The four vowels referred to in the previous article shall be designated for four-year periods, which shall be staggered, occurring each year, and starting on the first of January of the respective year. The persons holding those posts may be appointed as members of the Governing Board for another term for one time.

Article 77.- The vacancy that occurs in a voice charge will be covered by the person designated by the Federal Executive, with the corresponding approval to Article 75 of this Law is referred to. If the vacancy occurs before the termination of the respective period, the person designated to cover it shall last on its behalf only the time which it will fail to perform to the replacement, and may be designated, at the end of that period, for a period.

Article 78.- The vowels approved by the Chamber of Senators or the Permanent Commission referred to in Article 75 of this Law shall comply with the Following requirements:

I.     Be a Mexican citizen and only have Mexican nationality;

II.   Be of recognized probity;

III.   Not having been convicted of an intentional offence, nor disabled for the purpose of employment, office or commission in the public service or in the Mexican financial system, or disabled to exercise commerce;

IV.    Have occupied at least five years, positions of high level of decision in financial matters, or, accredit a teaching and research experience in economic and financial matter of at least ten years in institutions of higher studies;

V.     Do not hold positions of popular or party leadership, and

VI.    Not to be a shareholder, adviser, official, commissioner, agent or agent of any institution or financial intermediary, nor to maintain any relationship with them, which may represent a conflict of interests for their performance as a vocal.

Article 79.- The vowels mentioned above will have the character of public servants, they will be considered as higher employees of the Treasury, and they will not be able, during the time of their assignment, to accept or to exercise any other employment, position or commission, except for non-remunerated teachers or in public or private social assistance institutions.

Article 80.- The Governing Board has the following powers:

I.           Resolve the provenance of the Institute to grant, in each case, the support provided for in this Law, as well as its terms and conditions;

II.         Declare the precautionary administration in the case provided for in Article 50 of this Law, as well as approve the liquidation or the application to request the suspension of payments or bankruptcy of the Institutions;

III.        Approve the ordinary shares to be covered by the institutions in accordance with Article 22 of this Law, as well as the criteria for establishing differentiated quotas as provided for in Article 21 thereof;

IV.         Approve, upon the opinion of the Secretariat of Finance and Public Credit, the extraordinary contributions to be covered by the institutions in accordance with the provisions of Article 23 of this Law;

V.          Establish policies and guidelines for the administration, conservation and disposal of assets that make up the Institute's heritage;

VI.         Establish the basis for the administration and disposal of the Institute's assets, observing the provisions of this Law and the Law of Credit Institutions;

VII.       Authorize the performance of the acts mentioned in section XIII of article 68 of this Law;

VIII.      Determine the operations to be subjected to their prior consideration;

IX.         Authorize the constitution of committees and other delegated bodies that assist in the performance of their duties and assign their leadership and coordination to the vowels, as referred to in Article 75 of this Law, in accordance with their experience, the terms and conditions laid down in the Institute's Organic Statute;

X.          Approve reports to be sent to the Federal Executive and the Congress of the Union;

XI.         Approve the reserves that are necessary for the proper functioning of the Institute;

XII.       Approve the Institute's Organic Statute, subject to its consideration by the Executive Secretary;

XIII.      approve the basic administrative structure of the Institute, and any amendments thereto;

XIV.       Approve and implement the internal regulations, services and internal control regulations of the Institute;

XV.        Approve the Institute's own revenue and expenditure program for each year, as well as the operations by which the Institute itself obtains funding;

XVI.       Approve the procedures and mechanisms of internal control of the Institute's operations and administration;

XVII.    Periodically evaluate the activities of the Institute;

XVIII. Require the necessary information from the Executive Secretary to bring to Its assessment activities are carried out;

XIX.       Analyze and approve, if applicable, the Executive Secretary's reports;

XX.        Approve each year, after a report by the commissioners and the opinion of the external auditors, the financial statements of the Institute, and authorize the publication of the same;

XXI.       Appoint, on a proposal from at least two of their vowels, to the Executive Secretary of the Institute, and remove it on a reasoned proposal from any of its members;

XXII.    Appoint and remove the Secretary and Prosesecretary from the Governing Board, from among the public servants of the Institute;

XXIII. Name and Remove on a proposal from the Executive Secretary, to the servers public at the immediate level below the Executive Secretary;

XXIV. Approve, on a proposal of the Executive Secretary, the designation of persons who will act as proxies in the performance of precautionary administrations in charge of the Institute, to whom they will serve as liquidators or union representatives of the Institute, in the terms of this Law;

XXV.     Approve the fixing of the salaries and benefits of other public servants of the Institute, taking into account the conditions of the labour market prevailing in the financial system;

XXVI. Resolve other issues than the Executive Secretary or any member of the Governing Board itself, consider that they must be approved by it, and

XXVII. In general, perform all acts and operations that were necessary for the best administration of the Institute.

Article 81.- The sessions of the Governing Board shall be held bimonthly, and in an extraordinary manner, when, for the circumstances presented, considers necessary, upon convocation, at the request of any of its members or of the Executive Secretary, to make the secretary of the Governing Board.

The sessions will be carried out with the assistance of at least four of its members, provided that the Secretary of Finance and Public Credit is present. alternate.

Article 82.- The Governing Board shall be chaired by the Secretary of Finance and Public Credit and in his absence by his alternate. Resolutions shall require the approval of the majority of those present.

CHAPTER III

From The Executive Secretary

Article 83.- To be Executive Secretary you must meet the requirements of 78, except in the case of experience which must be greater than five years in decision-making responsibility related to financial matters.

Article 84.- The Executive Secretary will have the following attributions:

I.     Manage the Institute, for which it will have the most extensive powers to carry out the acts of dominion, administration, litigation and collection, to carry out any kind of judicial, extrajudicial and administrative management and any other that requires a special clause or authorisation in accordance with applicable laws or regulations, without prejudice to the powers expressly delegated to it by the Governing Board;

II.    Exercise the legal representation of the Institute, for which it will have the powers to which the previous fraction refers, being able to grant, replace and revoke general and special powers with the faculties that compete, including the requiring special clause or authorization;

III.   Comply and enforce resolutions taken by the Governing Board;

IV.    Put to the consideration and, where appropriate, approval of the Governing Board the financial statements of the Institute;

V.     Formulate the Institute's revenue and expenditure budgets projects, as well as their funding requirements, to be submitted to the Governing Board's authorization;

VI.    Report to the Governing Board on the implementation of programmes and budgets, as well as submit to their consideration the issues and reports to be approved or known to the Governing Board;

VII. Formulate the complaints and complaints referred to in Article 68 (XVIII) of this Law, as well as grant the corresponding pardon, subject to the authorization of the Governing Board, and engage in arbitration;

VIII.            Propose to the Governing Board the appointment and, where appropriate, the removal of the Institute's public servants from the lower immediate level, as well as appoint, hire and remove the other employees;

IX.    Designate the persons who will serve as proxies in the performance of the precautionary administrations in charge of the Institute, as well as those who will serve as liquidators or union representatives of the Institute;

X.    To prepare and submit to the approval of the Governing Board the basic structure and the Organic Statute of the Institute, as well as the projects of internal regulations, services and internal control of the Institute, and

XI.    The others expressly assigned to you by the Governing Board as well as informing you of the exercise of your powers.

CHAPTER IV

From the Institute's Public Servers

Article 85.- The Executive Secretary will be assisted by the public servants who, in fact, point out the Institute's Organic Statute.

Article 86.- The working relations between the Institute and its public servants will be regulated by the Federal Law of Workers to the State Service, Regulation of the (b) of Article 123 of the Constitutional Treaty, and general working conditions to be determined. The workers of the Institute are incorporated into the regime of the Institute of Safety and Social Services of the State Workers.

Article 87.- The Executive Secretary, the members approved by the Senate, and the public servants of the following immediate level, will only be required to acquit positions or declaration in judgment, on behalf of the Institute or by virtue of its functions, when positions and questions are formulated by means of trade issued by competent authority, which shall be answered in writing within the the term established by that authority.

CHAPTER V

From Reports and Surveillance

Article 88.- Any of the Chambers may summon the Executive Secretary to appear when a business concerning the activities of the Institute, as well as when commissions are integrated to investigate its operation.

Article 89.- The Federal Executive, through the competent authority, will appoint a commissioner and an external auditor of the Institute. Both will have the widest powers to review, examine and determine the financial statements of the Institute, as well as to review the accounting and other documentation related to the Institute. The Commissioner will have to attend the meetings of the Governing Board.

The above, without prejudice to the oversight of the Higher Audit of the Federation and the Internal Controller.

TITLE FIFTH

OF THE SANTIONS

Single Chapter

Article 90.- These are violations of the Institutions to this Law:

I.        Do not provide the Institute with the information and documentation that in the terms of this Law and the provisions it emanates from them;

II.       Do not submit to the Institute the reports in the terms and deadlines that this Law points out;

III.     Do not cover, in time and form the fees to your charge in the terms of this Act;

Payment shall be deemed to be made in time and form when the time limits have elapsed and the conditions laid down in the provisions referred to in Article 22 of this Law have been met by the Institute having received the amount of the fees charged by the institution concerned, without prejudice to the allocation of the Institute of make inspection visits to verify and evaluate, as well as review and validate at any time the information provided by the Institutions. Where the Institute makes observations or corrections to the information provided by the institutions, the institutions shall clarify or correct the relevant information and pay, where appropriate, the differences in their position. In any event, prior hearing shall be granted to the institutions for the attention of those observations or corrections.

IV.      Do not present the financial consolidation program to the Institute, when required, in the terms of this Law;

V.        Failure to comply, in its terms, with the financial consolidation program that has been approved by the Institute;

VI.      Rehuse, prevent or hinder the exercise of the powers conferred upon the Institute by this Law, and

VII.     Failure to comply with any other provision set out in this Law.

Article 91.- The Institute shall impose the following penalties for the administrative violations referred to in the previous article:

I.        For violation of fractions I and II of the previous article, fine of 200 to 2,000 thousand days of general minimum wage in force in the Federal District;

II. For violation of section III of the previous article, fine for the equivalent of a 30% and up to 100% of the quota omitted irrespective of the recovery of the updated amount of the omitted quotas;

III.     For violation of fractions IV, V, VI and VII of the previous article, a fine of up to three percent of the capital paid or up to twenty thousand times the daily minimum daily wage in the Federal District, whichever is greater.

Article 92.- For the imposition of the penalties provided for in this Law, the procedure which for such purposes provides for the Law of Institutions of Credit, except as provided for in this Chapter.

The Institute in the imposition of sanctions shall take into account, where appropriate, the following:

I.        The recidivism, the causes that originated it and, where appropriate, the corrective actions applied by the alleged infringer. The offender shall be deemed to have been a repeat offender and, in addition to that offence, committed the same offence within two years of the date on which the decision was signed. corresponding.

The recidivism may be punishable by a fine of equal to double the amount of the originally intended;

II.       The amount of the operation;

III.     The economic condition of the infringer to the effect that the sanction is not excessive;

IV.      The inexcusable negligence or intent with which it acted, and

V.        The other circumstances that the Institute considers applicable for such purposes.

The fines imposed by the Institute, the institutions will be made effective by charges of the respective amount that are made in the account that the Bank of Mexico to those institutions.

The Bank of Mexico will carry out the respective charges within three working days of the Institute's request for it, as they are fines against which no longer appropriate means of legal defence or the institution expresses in writing to the Institute, as appropriate, its conformity for the purpose of the said charge. In any event, the application for the corresponding charge shall be made by the Institute within ten working days following the update of the assumption provided for in this paragraph.

The penalties shall be imposed by the public servants of the Institute empowered for such purposes in accordance with their Organic Statute and in terms of the Regulation which to the effect of the Federal Executive.

Article 93.- Those affected by the imposition of administrative sanctions by the Institute may come to the defense of their interests through the review appeal provided for in Title V "Of Bans, Administrative Sanctions and Offences", Chapter II "Of Administrative Sanctions" of the Credit Institutions Act.

Article 94.- To protect the exercise of the right of access to government public information, the Institute is adjusting to the guidelines approved by the government. Governing Board, you must make the general public's knowledge, through your Internet portal, the penalties that the effect imposes for violations of this Law or the provisions that emanate from it, for which you must point out:

I. The name or naming of the offender;

II.       The precept infringed, the type of penalty imposed, amount or time, as appropriate and the offending conduct, and

III.     The state that holds the resolution, indicating whether it is firm or whether it is liable to be challenged and in the latter case if any means of defence and its type have been brought, when such circumstances are known to have been duly notified by competent authority.

In any event, if the sanction imposed is left without effects by any competent authority, then such a circumstance should be published.

The above information will not be considered as reserved or confidential.

TRANSIENT

FIRST.- This Law shall enter into force on the day following that of its publication in the Official Journal of the Federation, with the exceptions below are established.

SECOND.- Repeals.

THIRD.- The Federal Executive, through the Secretariat of Finance and Public Credit, will provide what is necessary in terms of this Law and the Budget of the of the Federation, which the Chamber of Deputies may approve, in order for the Institute to begin operations no later than 15 days after the one in which the Governing Board has been installed. In addition, within three months of the fact that the Governing Board is duly integrated, the Governing Board must approve the Institute's Organic Statute.

FOURTH.- The provisions relating to the quotas to be covered by the Institutions to the Institute under Title II of this Decree must be issued to at the latest in the month of May 1999. Until such provisions are issued, the institutions shall cover the Institute itself, in accordance with the provisions of Article 21 of this Law, the ordinary shares by calculating their amount in accordance with the rules applicable to the determination of the monthly ordinary contributions that would have had to cover the Trust referred to in Article 122 of the Law on Credit Institutions in force until before the entry into force of this Decree.

QUINTO.- The Trust referred to in Article 122 of the Credit Institutions Act until prior to the entry into force of this Decree remain in operation, with the sole purpose of administering the operations of the program known as "capitalization and portfolio purchase" and to comply with the provisions of the Seventh Transitional Article of this Decree, in order to conclude the audits ordered by the Chamber of Deputies.

The Federal Executive and the Chamber of Deputies will take appropriate measures to ensure that the audits are completed within a maximum of 6 months from the entry into force. of this Law.

To the extent that the Fund's operations are audited, it shall proceed as follows:

I.     In case the audit reports irregularities, the responsibilities to which the audit takes place and the offenders will take full legal and economic responsibility.

II.    Once the audits have been completed, the institutions concerned may choose to terminate the contracts and cancel the operations they held with the Fund, for which they will have to return to the same the titles of credit that the Fund The Fund shall, in return, give the Fund the payment entitlements of the portfolio that is the subject of the Portfolio and Purchase of Portfolio Program.

At the same time, the Institute will grant the aforementioned persons a guarantee or payment instrument that covers the aforementioned collection rights, in the terms and the conditions specified in the General Rules which the Board of Government of the Institute may issue for its purpose. To this guarantee or instrument, the provisions of Articles 45 and 47 of this Law shall apply.

The Institute shall formulate and make the knowledge of the persons concerned, the General Rules, no later than thirty calendar days after it has started their operations.

If illegal credits are detected during the audits, the Institute may choose to reject and return the same illegal credits. the institutions themselves, which must designate other assets in the amount of the amount of the appropriations returned to the Institute's satisfaction. Otherwise, it will reduce the respective amount of the guarantee or payment instrument concerned.

When the unlawfulness of the credit is attributable to the administration of the institution concerned, the institution must absorb the cost of the credit, to the effect the Institute reduce the amount of the guarantee or payment instrument.

The General Rules should be strictly subject to the following:

A) The mechanism will be established so that stakeholders can affect the collection rights that the Trust refers to in trust Article 122 of the Law on Credit Institutions in force until before the entry into force of this Decree, and in this way be able to issue credit titles through the trust, with the purpose of placing obtain liquidity;

B) The Institute and the Institutions participating in the new programme will agree on a formula that will oblige the institutions to obtain the best results in the processes of administration and collection of the credits designated under the said programme. The respective convention shall provide for penalties applicable to the institutions, which do not prove that they have adopted the measures and providences for the diligent administration and collection of such claims;

C) The Institute and the Institutions will agree on a mechanism conducive to the cost arising from the credits referred to in the previous paragraph, which does not be fully covered, preferably taken over by the institutions and by the financial system;

D) Incentives will be put in place for debtors to make an early payment, as well as mechanisms that will, preferably, lead to the payment of large debtors who have assets to deal with their commitments arising from the receivables that have been guaranteed by the Institute.

To participate in the new programme, the institution concerned must comply with the capitalisation levels established by the applicable provisions. The Institute shall ensure that, during the validity of the guarantees or payment instruments, the institutions have an appropriate level of capitalization for the promotion of the country's credit activity.

SIXTH.- For the purposes of these transitional provisions, the following definitions shall

:

a) The actions of multiple banking institutions, exchange houses and other companies, of which the Trusts referred to by the Articles 122 of the Law on Credit Institutions and 89 of the Securities Market Act in force until before the entry into force of this Decree;

b) The rights of the trustees of the Trust referred to in Article 122 of the Credit Institutions Act in force until earlier of the entry into force of this Decree, in order to receive the proceeds of the recovery of the credits that were designated in the agreements concluded with the institutions of multiple banking, within the programs of capitalization and sanitation of institutions established by the financial authorities, as well as the rights conferred on that fund by those conventions;

c) Other assets and rights to which the Trusts referred to in Articles 122 of the Credit Institutions Act and 89 of the Securities Market Act in force until prior to the entry into force of this Decree;

d) The claims, rights and other assets of which the multiple banking institutions and other companies referred to in the (a) of this Article; and

e) Other assets and rights of any nature related to the administration and conclusion of the programs referred to in this article.

SEVENTH.- The Institute, subject to the condition referred to in the following paragraph, in protection of the rights of third parties in good faith, and to provide the most The Bank of the Bank of the European Investment Bank (BITL) is entitled to recover from the BIREs, it assumes ownership of the operations of the sanitation programs, different from those of portfolio purchase capitalization, carried out by the trusts referred to in Articles 122 of the Law of Credit institutions and 89 of the Securities Market Act up to before the entry into force of this Decree, as well as those relating to the institutions involved in the Commission, with the exception of operations which were exempted by agreement from the Technical Committees of those institutions. To the operations whose ownership is assumed by the Institute in accordance with the provisions of this Article, the provisions of Articles 45 and 47 of this Law shall apply to them.

The provisions of the preceding paragraph shall be subject to the condition that the corresponding audits be carried out for the purpose of the legal and economic responsibilities which, where appropriate, are responsible for the transmission to third parties of such BIES.

If the audits are carried out by mutual or loan granted by the audited institutions whose resources have been donated or contributed by the (a) accredited, directly or by person, to entities of public interest that receive public financing and that for this reason have generated financial breaks for the credit institutions, those entities will return the amount of the credit operations involved in charge of the financing public that, according to the laws that govern them, they receive ordinarily.

EIGHTH.- The Federal Government through the Secretariat of Finance and Public Credit and the Bank of Mexico will carry out the necessary acts for the extinction of the Trusts referred to in Articles 122 of the Law on Credit Institutions and 89 of the Law on the Market of Securities in force until before the entry into force of this Decree, in the case of the trust first cited, subject to to the provisions of the Fifth Transitional of this Decree.

As a result of the above paragraph:

I.     The Institute will assume the loans granted by the Bank of Mexico to the Trusts referred to in Articles 122 of the Law on Credit Institutions and 89 of the Law on the Securities Market Act in force before the entry into force of the This Decree is to be agreed with the terms and conditions for such financing to be extinguished without charge to the Institute, in so far as the results of the Bank so permit, without affecting the capital and reserves of the Bank itself. Bank, in accordance with the Law that governs it;

II.    The Federal Government will break the credit granted by National Finance, as a financial agent of the Federal Government, to the Trust referred to in Article 122 of the Law on Credit Institutions in force until before the Entry into force of this Decree, and

III.   The request for the consolidation of the public debt is not approved for the obligations contracted by the Funds indicated, nor the guarantees or solidarity obligations granted to the Federal Government, presented in the article Fourth Transitional of the Article 2 of the Decree-Law Initiative issuing the Federal Law of the Deposit Insurance Fund and the Law of the Commission for the Recovery of Goods, and reforming, adding and repealing various provisions of the Bank's laws of Mexico, of Credit Institutions, of the Securities Market, to Regular the Pools Financial and General Public Debt.

NINTH.- Pursuant to the provisions of Section 4 of the Executive Summary of Operations made by the Trust referred to in Article 122 of the Law of Credit Institutions in force until before the entry into force of this Decree, delivered by the Federal Executive to the Chamber of Deputies, in which the necessary amounts are provided for the operations of financial consolidation corresponding to Banco del Atlántico, S.A., Banca Promex, S.A. and BanCrecer, S.A. and that to date have not been finalized, the Institute shall evaluate, audit and, where appropriate, conclude such operations.

For this purpose, the Institute may grant the guarantees or payment instruments that are required in the judgment of the Governing Board, which shall be subject to the provisions of the Article 45 of this Law. Upon completion of the operations, the Institute shall report a detailed report to the Congress of the Union and to the Federal Executive detailing the terms and conditions of such operations.

To conclude the operations referred to in this article, the Institute shall observe the following:

I.     The capital of the aforementioned institutions shall be fully applied to cover their losses, and

II.    The sum of the guarantees or payment instruments provided for in Section 4 of the document referred to in the first paragraph of this Article shall not exceed the total amount updated in accordance with the Balance of Balance Interest Rate;

III.   If of the audits that are carried out as a result of illegal operations, the Institute shall proceed to establish the corresponding claims and complaints in order to disallow the economic responsibilities to occur.

DECIMAL.- In order to conclude the financial consolidation programs and the settlement of the operations of the Trusts referred to in Articles 122 of the Law of Credit Institutions and 89 of the Law of the Market of Securities, in force until before the entry into force of this Decree, the Institute will have three quarters of the quotas that for the provision of the system of protection to the savings will be paid by the institutions; those arising from the recovery of their assets and those arising from the costs that have been agreed upon by the institutions supported.

The Federal Executive and the Chamber of Deputies will take appropriate measures to ensure that the audits are completed within a maximum of 6 months from the entry into force of the This Law.

TENTH FIRST.- The system of the guaranteed obligations laid down in Chapter I of Title II of this Law shall enter into force at the latest 31 of December 2005.

Prior to the expiry of the period referred to in the preceding paragraph, the Institute shall determine the arrangements for the guaranteed obligations. The type of obligations guaranteed and the guaranteed amount may only be amended by a resolution published by the Governing Board itself in December of each year in the Official Journal of the Federation and in two newspapers of wide circulation in the country, which may not be valid for less than one year.

For the only time, no later than May 1999, the Governing Board shall publish in the Official Journal of the Federation and in two broad-based newspapers. a programme in which the obligations which will be guaranteed in the transitional period referred to in the second paragraph of this Article shall be disclosed. The programme must be approved by the Governing Board. The resolutions of the Governing Board concerning the proposals referred to in this paragraph and in the foregoing paragraph shall be adopted with the favourable vote of the Secretary of Finance and Public Credit, and in the absence of his alternate.

By approving the program referred to in the preceding paragraph, the Governing Board shall seek the transition period for the entry into force of the guaranteed obligations set out in Chapter I of Title II of the Law, as short as possible. In addition, the Governing Board will have to resolve what is necessary to ensure that the transition is gradually and orderly, in order to ensure that in the last year of the regime's validity, the limit of coverage established in Chapter I of the Title is reached. Second of this Law.

As the resolution referred to in the third paragraph of this article is published, the obligations guaranteed by the Institute will be those published in the Journal Official of the Federation in accordance with the provisions of article 122 of the Law of Credit Institutions, in force until before the entry into force of this Decree.

TENTH SECOND.- To express the consent referred to in Article 42 of this Decree, the institutions shall modify their social statutes, thus how to incorporate the corresponding express mention in the titles representative of its social capital, within a period not exceeding 180 days from the entry into force of this Law.

TENTH THIRD.- The Institute shall administer and dispose of the Goods in order to obtain the maximum possible recovery value. The Institute shall seek the best conditions of sale of the BIENS, following the procedures referred to in Chapter II of Title III of this Law.

The Institute shall conclude recovery processes within a maximum of five years from the entry into force of this Decree, with the exception of the sale or delegation of the management of the assets of the institutions involved by the Commission, which are the subject of winding-up proceedings, which shall be completed within a period of not more than three years.

To this effect, the Executive Secretary will have to draft a program to dispose of BIENES for the approval of the Governing Board, which must contain at least the The following elements:

a) General diagnosis of the condition of the BIENES for disposal;

b) Strategy lineups for the disposal or delegation of the administration of the same;

c) Program goals and goals;

d) Criteria and guidelines for the participation of specialized third parties that contribute to the implementation of the Institute's object, as well as the incentives that they shall contain the contracts to ensure adequate recovery and, the monitoring and surveillance mechanisms for their due supervision;

e) Criteria and guidelines for ensuring adequate competition between bidders in a tender or auction;

f) Requirements to be filled by potential bidders and acquirers of BIENTS;

g) Procedures and methodologies for the establishment, if any, of the reference value of the BIREs. Likewise, when it is determined that the value of any of the goods in specific, has no recovery, determine the uses of public character that could be given to it, and

h) Procedure for block enajenations of BIENES.

TENTH QUARTER.- In the performance of its acts and operations, the Executive Secretary shall be subject to the provisions of the program referred to in this Article. in the previous article.

TENTH FIFTH.- The Institute shall keep a separate account of the resources, revenues and expenditures that are directly or indirectly related to the settlement of the financial consolidation programmes, and should therefore be disclosed in their financial statements.

TENTH SIXTH.- The Executive Secretary shall draw up a report to be presented to the Governing Board and to the Secretariat of Finance and Public Credit a detailed six-monthly period for its operations, revenue and expenditure, presenting in a special chapter the status of the financial situation as a result of the fulfilment of its obligations in the following half-yearly period.

TENTH SEVENTH.- The General Accounting Office of the Chamber of Deputies and the Secretariat of Comptroller and Administrative Development will exercise directly, in respect of of the activities referred to in the preceding articles, the privileges conferred upon them by the laws, with respect to the corresponding audit and control.

TENTH EIGHTH.- Article 122 of the Credit Institutions Act and Article 89 of the Securities Market Act are repealed, in the terms of the present transitional articles.

TENTH NINTH.- References made to the trusts referred to in the SEVENTH Transitional article, in laws, regulations, resolutions, trades, Registration and agreements concerning the administration and operation of these trusts will be understood as references to the Institute for the Protection of Bank Savings, including those related to debt support programs. In the case of acts or conventions of the operations referred to in Articles 5, 7 and 8, the reference shall be understood to be made to the Institute, adhering to the terms and conditions of the audits indicated in those articles. In no case shall the Institute be deemed to be a universal cause of such a trust.

TWENTIETH.- The institutions participating in the financial consolidation programs established by the Federal Government, which have originated trusts for the administration of resources from the administration, recovery and collection of appropriations in which the Fund referred to in Article 122 of the Law on Credit Institutions has been designated as a trustee shall be required to provide the information required by the Institute for the fulfilment of its object.

TWENTIETH first.- The other provisions that are opposed to this Act are repealed.

ARTICLE SECOND.-..........

TRANSIENT

FIRST.- The second article of this Decree shall enter into force the day after its publication in the Official Journal of the Federation.

SECOND.- The points (a), (b), (c) and (d) of Article 7o (III) are repealed. of the Foreign Investment Law.

THIRD.- The actions of the series "A" and "B", representative of the social capital of the controlling societies of financial groups, banking institutions multiple, exchange houses and stock exchange specialists, become shares in the "O" series with the characteristics contained in Articles 18 of the Law to Regulate Financial Pools, 13 of the Credit Institutions Act, and 17-bis of the Securities Market Act, without the need for an assembly agreement shareholders and as of the validity of this Decree. As a result, the financial institutions mentioned above shall carry out the respective exchange in accordance with the following Article.

FOURTH.- The exchange of shares to be carried out by the controlling companies of financial groups, credit institutions, exchange houses and specialists stock, will adjust to the following:

I.- To be formalized at the request of the aforementioned financial institutions, to the institution for the deposit of securities in which the actions to be exchanged.

The chairman and secretary of the board of directors of the financial institutions referred to in the first paragraph of this article shall have a period of five years, from the entry into force of this Decree, in order to present the request to which this fraction refers, in order to cancel the shares of the series "A" and "B", to issue the shares of the new series "O", and to deposit the latter in an institution for the deposit of securities, in accordance with the provisions of the Articles 18-a, first paragraph of the Law to Regulate Financial Pools, 12, first paragraph of the Credit Institutions Act, 17-bis, penultimate paragraph, 67 and 74 of the Securities Market Act;

II.- The actions resulting from the exchange must represent the same share of the paid capital as the shares exchanged;

III.- There shall be no consideration of the disposal of shares for the purposes of the Income Tax Act, provided that the exchange referred to in this Article Article does not imply a change of the holder of the shares, and

IV.- For the purposes of the preceding fraction, the average cost of the shares resulting from the exchange shall be that corresponding to the shares exchanged.

QUINTO.- After the period referred to in the first paragraph of the first article, without any compliance with the provisions laid down in that provision, the holders of the shares shall not be able to exercise the corresponding corporate and property rights, nor the controlling company, multiple banking institution, stock house or stock market specialist concerned, may register the transmissions in respect of the shares in the "O" series, they are intended to be recorded in the book of shareholders, but until the exchange and deposit mentioned in the aforementioned section I of the previous article.

SIXTH.- Financial corporations of financial groups, credit institutions, stock exchange houses and stock specialists, as well as financial corporations of the type of These financial institutions, whose shares, if any, were registered in the National Registry of Securities and Intermediaries prior to the entry into force of this Decree, shall give notice to the National Registry of Securities exchange made under the terms and conditions stated in the Third and Fourth Transitional Articles, for the purposes of maintenance and other legal consequences.

SEVENTH.- The controlling societies of financial groups, multiple banking institutions, exchange houses, stock exchange specialists and subsidiaries prior financial institutions, shall have a period of three years from the date of entry into force of this Decree, in order for their board of directors and supervisory board to comply with the provisions of Articles 24 and 27-L of the Law for Regulate the Financial Pools, 22, 26 and 45-K of the Law of Institutions of Credit, and 17a 1 and 28a 11 of the Securities Market Act, as applicable.

The directors and stewards of the "A", "B" and "F" series of the financial institutions mentioned will continue to perform their duties as long as the designations that correspond in terms of the provisions referred to in the preceding paragraph, and the appointees take possession of their positions.

Mexico, D.F., at December 13, 1998.-Dip. Luis Patino Pozas, President.-Sen. José Ramírez Gamero, President.-Dip. Horacio Speediz Muñoz, Secretary.-Sen. Gabriel Covarrubias Ibarra, Secretary.-Rubicas."

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for their due publication and observance, I ask for the present Decree at the residence of the Federal Executive Branch, in Mexico City, Federal District, at thirty-one day of December of a thousand nine hundred and ninety-eight.- Ernesto Zedillo Ponce de León.-Rubrica.-El Secretary of Government, Francisco Labastida Ochoa.-Heading.