Organic Law Of National Financial

Original Language Title: Ley Orgánica de Nacional Financiera

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Organic Law of National Financial

ORGANIC LAW OF FINANCIAL NATIONAL

Official Journal of the Federation on December 26, 1986

Last reform published in the DOF 10 January 2014

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

MIGUEL DE LA MADRID H., Constitutional President of the United Mexican States, to its inhabitants, known:

That the H. Congress of the Union has been used to address the following

DECREE

" The Congress of the United Mexican States, Decreta:

FINANCIAL NATIONAL LAW

FIRST CHAPTER

Object and Address Name

Article 1o.- This Law governs National Financial, National Credit Society, institution of development banking, with legal personality and own patrimony.

Article 2o.- National Financial, National Credit Society, Institution of Development Banking, will aim to promote savings and investment, as well as channel support financial and technical to industrial development and in general, to the national and regional economic development of the country.

The operation and operation of the institution will be carried out in accordance with the applicable legal framework and sound banking practices and practices to achieve the objectives of the general character referred to in Article 4 (o). of the Credit Institutions Act.

Article 3o.- The Company's domicile will be the one that, within the national territory, determines its Organic Regulation. It may establish or close branches or agencies or any other kind of office and appoint correspondents, in the country or abroad, after authorization from the Secretariat of Finance and Public Credit.

Article 4o.- The duration of the Company will be indefinite.

CHAPTER SECOND

Objectives and Operations

Article 5o.- The Society, in order to promote the integral development of the industrial sector and to promote its efficiency and competitiveness, in the exercise of its object channel supports and resources and shall be empowered to:

I.- Promote, manage and implement projects that meet the needs of the sector in the different areas of the country or that make the best use of the resources of each region;

I Bis.- Establish financing programs to support economic activities that encourage the creation of jobs, in companies or indigenous organizations; that will allow the incorporation of technologies that will help them to increase their productive capacity, as well as to ensure equitable access to the systems of supply and marketing;

II.- Promote, channel and coordinate capital investment;

III.- Promote technological development, training, technical assistance and increased productivity;

IV.- Be a financial agent of the Federal Government regarding the negotiation, hiring and handling of foreign credits, whose objective is to promote economic development, which are granted by foreign institutions private, governmental or intergovernmental, as well as by any other international financial cooperation body.

Money credits are not included in this provision;

V.- Manage and, where appropriate, obtain concessions, permits and authorizations for the provision of public services related to the achievement of its object or for the use of natural resources, which will contribute to to promote. On an equal basis, it shall enjoy the right of preference vis-à-vis individuals or other institutions to obtain such permits, authorisations or concessions, with the exception of what is stated in the applicable legal provisions;

VI.- Carry out the economic and financial studies to determine the priority investment projects, in order to promote their realization among potential investors;

VII.- To promote the industrial exploitation of the natural resources that are exploited or insufficiently exploited;

VIII.- Promote industrial conversion, production of exportable goods and efficient substitution of imports;

IX.- Promote the comprehensive development of the stock market;

X.      Encourage joint financing and assistance actions with other credit institutions, development funds, trusts, auxiliary credit organizations, and with the social and private sectors. In the case of credit agreements concluded with the financing, assistance and support of the company, the following text must be inserted in the statement of the accredited: " The accredited state declares to know that the credit is granted with the support of National Financial, exclusively for national development purposes ", and

XI.- Be an administrator and trustee of the trusts, mandates and commissions constituted by the Federal Government for the promotion of industry or the stock market.

The Society must have the necessary infrastructure for the proper provision of services and operations, in the different regions of the country.

Article 6o.- For the purpose of the object and the achievement of the objectives referred to in Articles 2o. and 5o. The Company may:

I.           Perform the operations and provide the services referred to in Article 46 of the Credit Institutions Act.

The operations referred to in Article 46, fractions I and II shall be carried out in the terms of Article 47 of that order;

II.- Issue development bank bonds. Emissions will seek to foster the development of the capital market and institutional investment and corresponding securities will be able to be placed among the large investor public;

III.       To issue or guarantee securities, as well as to guarantee third-party obligations, either through particular operations or through massive guarantees, without the limitations provided for in Article 46 (VIII) of the Credit Institutions Act;

IV.        Participate in the social capital of companies, in terms of Article 30 of this Law, as well as in investment companies and companies operating them;

V.- Administer for own or foreign account any kind of company or company;

VI.- Hire credits for the performance of their promotion functions, in accordance with applicable legal provisions;

VII.- Acquire technology, promote its development and transfer it in accordance with applicable laws;

VIII.- Issue certificates of participation based on trust made to the effect;

IX.- Issue Nominative Participation Certificates, in which the participation held by their holders in securities or securities, or in groups of them, which are held by the institution, or which are to be acquired for that purpose, as an exception to the provisions of Article 228 (a) of the General Law on Credit Titles and Operations.

The Company shall retain the securities of the co-participants in the sole custody or administration and in that case may hold, on the same securities, the transactions it deems and will only be responsible for the due performance of his or her position.

When the certificates of participation include the right of the co-owner to individually determined values, the Company shall be deemed to guarantee the holders of the delivery of these securities. Where the certificates show only the participation of the co-owner in an aliquot part of a set of securities and their products, or of the value resulting from its sale, the Company shall only be responsible for the existence of the securities and the delivery of their products or their price, if any.

The issuance of such certificates shall be made by unilateral declaration of the will of the issuing Company, expressed in notarial act, in which the nature, conditions, withdrawal periods and the profits, interest or dividends that National Financial guarantees to the holders of the certificates;

X. Receive from third parties, in garment, securities or issue securities that directly perform, those that the Company does on behalf of them, or those of the issues it directly makes;

XI. Perform analogous and related activities to your goals that the effect points to the Secretariat of Finance and Public Credit; and

XII. Make the investments provided for in Articles 75, 88 and 89 of the Law of Credit Institutions.

Article 7o.- The Company may be a depositary of securities, securities or cash that have to be made by or before the administrative authorities, or of the Federal District, as well as of the sums in cash, securities or securities, which are hijacked by the judicial or administrative authorities of the Federation and those who kidnap the administrative authorities of the Federal District.

The above authorities will be required to provide the company with such goods, in its indicated character as a depository.

They will also be able to perform at the Company, the deposits for the granting of the suspension of the act claimed in the trial of amparo and, in general, the deposits of guarantee that they must be constituted in accordance with the provisions of the federal laws, and in their case, of the Federal District or by orders or contracts of authorities of the Federation, and in their case, of the Federal District.

Article 8o.- Companies, companies or bodies that provide public services shall retain in the Company, the deposits they receive from their consumers, customers or subscribers, except as provided in other laws.

The lack of compliance with this provision will be sanctioned by the authority responsible for granting the concession or monitoring the provision of the corresponding public service, according to the seriousness of the of the case, with a fine of up to nine times the daily general minimum wage in force in the Federal District, to the date of the default, which will be doubled in case of recidivism, regardless of the fact that the concession may also be cancelled or respective permission.

Article 9o.- The Secretariat of Finance and Public Credit, as an exception to the provisions of Articles 48 of the Law on Credit Institutions and 26 of the Law of the Bank of Mexico shall determine by general provisions the characteristics of the active, passive operations that do not involve the collection of resources from the public and services, except for trusts, mandates and commissions, To perform the Society to fulfill the objective and to exercise the faculties that they have been entrusted with their character of development banking in this Law.

It is for the Bank of Mexico, in the terms of its Law, to regulate by means of general provisions, the characteristics of passive operations involving Collection of public resources, trusts, mandates and commissions, money market operations, as well as financial operations known as derivatives held by the Company.

Article 10.- The Federal Government will respond at all times:

I. Of the operations that the Company holds with national natural or moral persons;

II.- Of the Company's concerted operations with private, governmental or intergovernmental foreign institutions; and

III.- Of the deposits referred to in Articles 7o. and 8o. of this Law.

Article 11.- In the trust contracts held by the Company, the Company may act in the same business as a trustee and as a trustee and perform operations with the Company itself in the fulfilment of trusts.

THIRD CHAPTER

Social Capital

Article 12.- The Company's share capital shall be represented by certificates of equity in 66% of the "A" series and 34% of the "B" series. The nominal value of these securities shall be determined in their Organic Regulation.

The "A" series will only be signed by the Federal Government, will be issued in a title that will not carry coupons, which will be untransmittable and at no time will be able to change its nature or the rights conferred on it by the Federal Government itself.

The series "B" may be subscribed by the Federal Government and by Mexican natural or moral persons, attached to the provisions of Article 15 of the Regulatory Law of the Public Service Banking and Credit.

The Secretariat of Finance and Public Credit may authorize entities of the Federal Public Administration and the governments of the federal entities and municipalities to acquire 'B' series of certificates in a higher proportion than that laid down in Article 15 of the Regulatory Law of the Public Service of Banking and Credit.

Article 13.- The net capital referred to in Article 34 of the Regulatory Law of the Public Service of Banking and Credit shall be the one set by the Secretariat of Finance and Credit He published the opinion of the Bank of Mexico and the National Banking and Insurance Commission.

Article 14.- At no time may any foreign natural or moral person, or Mexican company, be involved in any form in the capital of the Company. Foreign direct and indirect exclusion clause is included.

The persons who contravene the provisions of this Article shall lose the participation of the Federal Government in favour of the Federal Government.

Article 15.- The Secretariat of Finance and Public Credit will establish the form, proportions and other conditions applicable to the subscription, tenure and circulation of the "B" string certificates.

CHAPTER FOURTH

Administration and Surveillance

Article 16.- The management of the Company, will be entrusted to a Board of Directors and a Director General, in their respective spheres of competence.

Article 17.- The Board of Directors will be composed of eleven members, appointed as follows:

I.- Six members will represent the "A" series of heritage certificates that will be:

a) The Secretary of Finance and Public Credit, who will chair the Board of Directors.

b) The headlines of the Economy Secretariat; Energy; the Finance and Public Credit Secretariat; a representative appointed by the Governor of the Bank of Mexico within the top 3 levels of the central institute, as well as the head of the Federal Public Administration entity, linked to the industrial sector, designated by the Federal Executive, through the Secretary of Finance and Public Credit.

They will be alternates of the mentioned counsellors, preferably the public servants of the level next immediate bottom.

In the absence of the Secretary of Finance and Public Credit, the Undersecretary of Finance and Public Credit will have the character of the president of the Board of Directors, in the absence of the latter, shall be the chairman of the Deputy Secretary of Finance and Public Credit and in the absence of all the former, who appoint the members present from among the members of the "A" series.

II.- Three directors of the "B" series appointed by the Federal Executive, through the Secretary of Finance and Public Credit, with their respective alternates, appointments that will have to be placed on persons of recognized prestige and extensive knowledge and experience in economic, financial, industrial or regional development.

III.       Two directors of the "B" series appointed by the Federal Executive, through the Secretariat of Finance and Public Credit, which will have the character of independent directors. Appointments of independent directors should be made to persons of Mexican nationality who, for their knowledge, good repute, professional prestige and experience, are widely recognized.

The Board of Directors may invite persons whose activities are related to the object of the Society to their sessions.

On the agenda of the Board of Directors sessions, the issues to be discussed should be listed and general issues should not be included.

Article 18.- The Board of Directors shall meet at least quarterly and shall validly meet with the assistance of six or more counsellors, provided that They include a minimum of four of those named by the "A" series.

The resolutions will be taken by a majority of the votes of the members present, with the President having a vote of quality, in case of a tie.

Independent members will have no alternates and must attend at least seventy per cent of the sessions that have been convened in an exercise and in case Otherwise, others may be designated with the same characteristics in their place, provided that the absences are not justified in the judgment of the Board of Directors.

Article 19.- Cannot be counsellors people who:

I. Be found in the cases referred to in the penultimate paragraph of Article 41 of the Credit Institutions Act;

II.- Occupy a popular choice post, as long as they are in the exercise of it; and

III.- Tengan, with another designated counselor, parentage up to the third degree by consanguinity or by affinity.

If any of the appointed members are to be understood, during the course of his or her duties, in any of the above cases, he shall be replaced by his/her alternate, for the duration of the impediment and shall not be designation of the owner-adviser.

IV. Additionally, independent counselors should not have:

a) Gender or employment link with the Society;

b) Important patrimonial Nexus and/or employment relationship with a natural or moral person who is a creditor, debtor, client or Provider of the Company;

c) Conflict of interest with the Company, as clients, suppliers, debtors, creditors, important or any other nature, and

d) The representation of associations, guilds, federations, workers confederations, employers, or sectors of attention that relate to the object of the Society or are members of its management bodies.

Advisors will be required to communicate to the Chairman of the Board of Directors on any situation that may result in a conflict of interest, as well as to abstain from participate in the corresponding deliberation. They shall also maintain absolute confidentiality on all acts, events or events that may affect the operation of the Company, including the deliberations of the Board of Directors, while such information has not been made. knowledge of the public.

Article 20.- The Board shall direct the Company in the terms of the provisions of Article 20 and other matters relating to the Regulatory Law of the Public Service of Banking and Credit.

The Board of Directors may agree to carry out the operations inherent in the object of the Company. The agreements which, in their case, dictate the operations provided for in Article 30 of the Regulatory Law of the Public Service of Banking and Credit, shall be considered by the Director General's proposal.

Article 21.- They shall also be the powers of the Board of Directors, in the terms of the Credit Institutions Act, the following:

I.- Approve the annual activity report presented to you by the Director General;

II.- Approve the investments in venture capital referred to in Articles 6o., fraction IV and 30 of this law and their disposal, establishing the modalities that it considers appropriate;

III.- Authorize the acquisition and use of technology referred to in section VII of the article 6o. of this Law; and

IV.- Approve the other specific programs and internal regulations of the institution presented to it by the Director General, in order to submit them to the authorization of the Secretariat of Finance and Public Credit.

V.         Issue the rules and criteria to which the compilation and exercise of the Company's current expenditure and physical investment budget should be subject, as well as the approval of that budget and the modifications to be made during the exercise, once authorized the global amounts of these concepts by the Secretariat of Finance and Public Credit; and

VI.         Approve, on a proposal from the human resources and institutional development committee, in accordance with the provisions of article 42, fraction XVIII of the Law of Credit Institutions, the organic structure, tabulators of salaries and benefits, salary policy and the granting of extraordinary perceptions for the fulfillment of goals that are subject to the performance evaluation, taking into account the conditions of the labor market prevailing in the Mexican financial system; promotion, promotion and retirement policies; guidelines for selection, recruitment and training; separation criteria; and other economic and social security benefits established for the benefit of the public servants working in the Company.

Without prejudice to the foregoing, the Board of Directors shall approve for each financial year a programme to be financed by the micro, small and medium-sized enterprises, seeking to allocate at least fifty percent of the value of the Company's direct and guaranteed portfolio.

Article 22.- The Director General will be appointed by the Federal Executive through the Secretary of Finance and Public Credit, and this appointment must be placed in a person who meets the requirements laid down in Article 24 of the Regulatory Law of the Public Service of Banking and Credit.

Article 23.- The Director General shall be responsible for the administration and legal representation of National Finance, National Credit Society, institution of development banking, without prejudice to the powers of the Board of Directors; the following powers and functions shall have the following effect:

I.          In the exercise of its powers of legal representation, it may conclude or grant all kinds of acts and documents inherent in the object of the Society. For this purpose, it will have the most extensive powers to carry out acts of dominion, administration, litigation and collection, even of those that require special authorization according to other laws or regulations. In such a virtue and in an enunciative and non-limiting manner, they may issue, endorse and negotiate evidence of credit, request and grant forgiveness, exercise and desist from judicial proceedings, including in the trial of amparo; (a) to provide general and special powers with all the powers which are responsible for it, even those requiring special provision, replacing them, revoking them and granting powers of substitution to the proxies; Board of Directors in the case of granting general powers for domain acts;

I Bis.     Report to the Secretariat, prior to the authorization of the corresponding instances, the operations that may be linked to the object of the other development banking institutions;

II.- Run the resolutions of the Board of Directors;

III.- Take the social signature;

IV.- Act as General Trust Delegate;

V.          To decide on the designation and hiring of the public servants of the Society, other than those mentioned in Article 42 of the Law on Credit Institutions, as well as the appointment and removal of the trust delegates; the staff as a whole, and establish and organise the offices of the institution;

VI.- Authorize the publication of the monthly balance sheets of the institution, in accordance with the bases agreed by the Board of Directors;

VII.- Participate in the sessions of the Board of Directors with voice;

VIII.- The what the Organic Regulation will trust; and

IX.- Those delegated to you by the Board of Directors.

Article 23a.- These are causes of removal of the "B" series counselors and the independent counselors:

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

II. Failure to comply with the Directing Council agreements or to act deliberately in excess or defect of their privileges;

III. Use, for personal or third-party benefit, the confidential information available to you on the basis of your charge, as well as disclose such information without the authorization of the Board of Directors, and

IV. Submit knowingly to the consideration of the Board of Directors, false information.

In addition to the causes of removal identified in this precept, the directors of the "A" series and the Director General will be removed from their position when their responsibility by final judgment given by competent authority, to be placed in any of the cases contained in the Federal Law on Administrative Responsibilities of Public Servants.

Article 24.- The supervision of the Company shall be carried out by the organs and in the terms indicated in the Law of Credit Institutions and the provisions of general character issued by the National Banking and Securities Commission.

Item 25.- (Repealed)

Article 26.- The Directors, the Director-General and the Company's Trust Delegates, will only be required to acquit positions or testify in court in representation of the same, where the positions and questions are formulated by means of trade, which shall be in writing within the meaning of the respective authorities.

CHAPTER QUINTO

General Provisions

Article 27.- The Secretariat of Finance and Public Credit will interpret this Law for administrative purposes.

Article 28.- The Company's operations and services shall be governed by the provisions of this Law, by the Regulatory Law of the Public Service of Banking and Credit, by the Law Organic Bank of Mexico and other applicable legal provisions.

Article 29.- The Company will annually formulate its financial programs, general spending and investment budgets, as well as its operational programs to the guidelines, measures and mechanisms that the Secretariat of Finance and Public Credit will establish.

The Secretariat of Finance and Public Credit is responsible for coordinating, evaluating and monitoring the performance of National Finance, as well as authorizing the modalities in the allocation. of resources, in the terms of Article 31 of the Credit Institutions Act.

The best use and the most appropriate channelling of the resources of the institution will be sought in the framework of the autonomy of management required for its efficient operation, compliance with the applicable legal provisions.

Article 30.- The participation of the National Financial Institution in the social capital of companies referred to in Article 5 (II). and section IV of Article 6 (4). of this Law, will be subject to the following bases:

I.- It shall ensure that its participation in the social capital of industrial or technology undertakings is a priority and in a temporary and minority form;

II.- It may be up to 20% of the capital of the broadcaster;

III.- You may reach up to 50% of the capital of the broadcaster, for up to 7 years, after agreement of the Board of Directors;

IV.- It may be by percentages and by longer periods, according to the nature and situation of the undertaking concerned, and considering the development of social and nationally necessary activities requiring resources for the implementation of projects of long ripening and susceptible to the prior authorisation of its Board of Directors; and

V.- In the disposal of its shareholding, it will seek to strengthen the stock market, as well as the appropriate development of the company that it has promoted.

The investments referred to in this article will only compute to consider broadcasters as state participation companies when the Federal Executive issues the respective agreement, in which it is stated that the companies, in the terms of the applicable legal provisions, have been regarded as parastatal entities for the purposes of configuring the cases referred to in Articles 6 or 6. Second paragraph and 29 of the Federal Law of the ParaState Entities.

Article 31.- The operations performed by the Company in the provision of the public service of banking and credit in which real guarantees are constituted may be recorded in a private document which, without further formality, must be entered by the persons in charge of the corresponding public records, in accordance with Article 50 of the Regulatory Law of the Public Service of Banking and Credit.

Article 32.- The Company will be able to dispose of shares in the social capital of companies:

I.- Through the Stock Market; and

II.- According to the procedure and bases provided for in the following article and in its Organic Regulation, to ensure the continuity, evolution and consolidation of the promoted company.

Article 33.- The procedure referred to in section II of the previous article will be attached to the following bases:

I.- Those interested in acquiring such holdings shall submit to the Company their written offer of purchase, which shall meet the following requirements.

a).- Description and quantity of the shares, as well as the price they offer to pay;

b).- Form of payment of the offered price and, where applicable, guarantees for compliance;

c).- Deadline on which the offer will remain in place;

d).- Duly accredited personality of the offeror's representative, in the case of moral persons or natural persons who do not do so for their own right; and

e).- Other than the Company considers appropriate for the most appropriate evaluation of the proposal;

II.- The Company may require the offerors, who constitute a guarantee in their favour at least 10% of the price offered; and

III.- Corresponds to the Board of Directors of the Company, to analyze the offers and to decide on the same for which it will consider the administrative capacity of the bidders and their experience in the activity that the company does, with a view to promote the proper development of the same.

Article 34.- Prior to the authorization of the Secretariat of Finance and Public Credit, the Company shall constitute the reserves and funds necessary for the proper performance of the The purpose of this Law is to commend it. The amounts that have been taken to those reserves and funds shall not be considered as remaining operational.

Fixed the amount of the remaining and separate the amount that corresponds to pay for the respective tax and for the participation of the workers in the profits of the Company, the balance shall apply in accordance with the terms laid down in the Organic Regulation.

Article 35.- The Society will have a human resources and institutional development committee, which will be integrated as follows:

Three representatives of the Secretariat of Finance and Public Credit; the Under Secretary of State, the Undersecretary of Finance and Public Credit and the Head of the Unit of Development Banking;

A person appointed by the Board of Directors, who for their knowledge and professional development, has extensive experience in the area of human resources;

A member of the Board of Directors that has the character of an independent;

The Director General of the Society, and

A representative of the National Banking and Securities Commission with voice, but no vote.

The Director-General of the Company shall refrain from participating in the Committee's meetings, which are intended to issue opinions or recommendations with regard to his/her salary, economic benefits and social security benefits.

This Committee will express and propose, the tabulators of salaries and benefits, wage policy and the granting of extraordinary perceptions for the fulfillment of targets subject to performance evaluation; promotion, promotion and retirement policies; selection, recruitment and training guidelines; separation criteria; and other economic and social security benefits established in the the benefit of the public servants working in the Society.

The Secretariat of Finance and Public Credit will establish criteria in terms of occupational structure, wage movements, extraordinary perceptions, and (a) benefits, which must be observed by the Committee. The Company shall also provide the Secretariat with the information it requests.

This Committee will meet at the request of the Director General of the Society, who will send the respective call to the members of the Society, where he will establish the order of the day, as well as the place and date for the celebration of the session. Their decisions will be taken by a majority of votes. The Undersecretary of Finance and Public Credit, who will preside over it, will have a vote of quality in case of a tie. The Committee will also have a technical secretary, who will have a voice, but without a vote.

The other members of the Committee shall have their alternate members, except the independent counsel and the professional with experience in the area of human resources. who will preferably be public servants of the next immediate lower level and must have at least a general manager level.

In the event of the absence of the Deputy Secretary of Finance and Public Credit, without prejudice to the right to vote of his alternate, he shall preside over the Committee and shall exercise the vote of Holder of the Development Banking Unit.

Article 36.- The Company will grant its financing through private financial institutions that partially or fully assume the risk of recovery. these supports.

The provisions of the preceding paragraph shall not apply to the following operations:

I. The equity investment and investments in the money market;

II. The financing for a total amount equal to that determined by the Board of Directors, with the prior authorization of the Secretariat of Finance and Public Credit;

III. The operations corresponding to the work-related benefits granted in a general manner;

IV. The operations carried out with the Federal Government, the parastatal sector entities, federal entities and the municipalities, and

V. The financing of infrastructure and public services projects that are derived from concessions, contracts for the provision of services, public works, housing and industrial parks, permits and authorizations of the authorities federal, federal entities and municipalities, as well as their parastate and paramunitial entities.

The financing of this fraction may be granted as long as it is a majority of projects related to its object.

Article 37.- The Company shall provide the legal assistance and defense services to the members of its Board of Directors, committees established by it or provided for by law and by public servants working or working in the institution itself, in respect of the acts which those persons carry out in the exercise of the functions entrusted to them by law and compliance with the guidelines to be issued by the Secretariat of Finance and Public Credit.

Such legal assistance and defence shall be provided even if the persons indicated cease to perform their duties or provide their services to the Company, provided that they are acts performed in the performance of their duties or activities in the service of the Company.

Legal assistance and advocacy will be provided by the resources with which the Company will count for these purposes. If the competent authority gives the subject of the legal aid final judgment which it causes to be enforceable against him, that person shall reimburse the Company for the costs and any other charges which it has made with respect to the reason for legal assistance and advocacy.

The provisions of this article shall apply without prejudice to the obligation of the subjects of legal assistance and defense to render the reports to them. required in terms of the applicable legal provisions as part of the performance of their duties.

TRANSIENT

Article First.- This Law will take effect the day after its publication in the Official Journal of the Federation.

Article Segundo.- This Law abrogates the Organic Law of National Financial, Limited, issued on December 29, 1974, published in the Official Journal of the Federation on January 2, 1975.

Article Third.- The authorizations, powers, mandates and other legal acts and administrative measures, granted, dictated or concluded in accordance with the Law that is repealed, shall remain in force until they are revoked or amended by the competent authorities or bodies.

Article 4.- The Organic Regulation of the Company shall be issued within a period not greater than 180 days from the date of the validity of this Law. Until such time, it will continue in force on 26 July 1985.

Mexico, D. F., at December 17, 1986.-Dip. Reyes R. Flores Zaragoza, President.-Sen. Gonzalo Martinez Corbala, President.-Dip. Eliseo Rodríguez R., Secretary.-Sen. Hector Vázquez Paredes, Secretary.-Rubicas.

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States and for their proper publication and observance, I hereby exempt the present Decree at the residence of the Federal Executive Branch in Mexico City, Federal District, at the eighteen days of the month of December of a thousand nine hundred and eighty-six.- Miguel de la Madrid H.-Heading.-The Secretary of the Interior, Manuel Bartlett D.-Heading.