Organic From The Bank National Of The Army, Air Force And Navy Law

Original Language Title: Ley Orgánica del Banco Nacional del Ejército, Fuerza Aérea y Armada

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Organic Law of the National Bank of the Army, Air Force and Navy

ORGANIC LAW OF THE NATIONAL BANK OF THE ARMY, AIR FORCE AND NAVY

Published in the DOF on January 13, 1986

Last Reform Published DOF January 10, 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, decrees:

ORGANIC LAW OF THE NATIONAL ARMY, AIR FORCE AND NAVY

TITLE FIRST

Of Society, Naming, Object, and Address

ARTICLE 1o.- This Law governs the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, with legal personality and own assets.

ARTICLE 2o.- The Company, as a development bank, will provide the public service of banking and credit in accordance with the objectives and priorities of the National Plan of Development, and in particular of the National Development Financing Program, to promote and finance the activities and sectors entrusted to it in this Law.

ARTICLE 3o.- The National Bank of the Army, Air Force and Navy, as an institution of development banking, will have the objective of granting financial support to the members of the Army, Air Force and Mexican Navy.

The operation and operation of the institution will be carried out in accordance with the applicable legal framework and the sound practices and banking practices, seeking to reach within the sector entrusted to the to provide the public banking and credit service, the general objectives set out in Article 3o. of the Regulatory Law of the Public Service of Banking and Credit.

ARTICLE 4.- The home of the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, will be the one that will be established in its Organic Regulation, but may, after authorization from the Secretariat of Finance and Public Credit, establish or close branches, agencies or any other kind of office in the country and appoint correspondents in the country or abroad.

ARTICLE 5o.- The duration of the partnership will be indefinite.

TITLE SECOND

SOCIETY GENERAL OPERATION

CHAPTER I

Objectives and Operations

ARTICLE 6o.- The Company, in order to seek the development and competitiveness of the sector entrusted in the exercise of its object, shall be entitled to:

I. Support financially the members of the Armed Forces, for the exercise of their professions or productive activities, not incompatible with military function;

II. Act as a financial agent for companies and companies with which they operate;

III. Manage the military's savings and labor funds;

IV. To promote technical advice in favor of the entities mentioned in fractions II and III of this article, in order to promote the increase of production; and

V. Encourage joint financing and assistance actions with other credit institutions, development funds, trusts, credit support organizations, and with the social and private sectors.

In the exercise of its powers, the National Bank of the Army, Air Force and Navy, the National Credit Society, the institution of development banking, will adjust its programs to the financial policies established by the Federal Government and shall be coordinated in its activities with the entities in charge of the preparation and implementation of that policy.

ARTICLE 7o.- For the purposes of the objectives referred to in Articles 3o. and 6o. The Company may:

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

II.        Grant credits to members of the Mexican Army, Air Force, and Navy who are on active duty or in retirement, as long as they are perceiving you to the Federal Erarium.

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

III.       Issue development bank bonds. Such securities shall seek to promote the development of the capital market and institutional investment, and shall be capable of being placed among the large investor public, in which case the respective legal provisions shall apply to it;

IV.        Finance the acquisition, construction, extension and repair of homes for members of the armed forces;

V.         Make preferably with the military and moral persons of whom those are part, the other active and passive operations of the Law of Credit Institutions authorized for the institutions of development banking;

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

VI.        Make the payment service by way of retirement and pension; and

VII.      The other analogous and related to the object of the Institution that the Secretariat of Finance and Public Credit, including the financial agent of the Federal Government, points out in the terms of the applicable legal provisions.

ARTICLE 8o.- The Secretariat of Finance and Public Credit, as an exception to the provisions of Articles 48 of the Credit Institutions Act and 26 of the Law of the Bank of Mexico, shall determine by general provisions the characteristics of active, passive operations that do not involve the collection of resources from the public and services, except for trusts, mandates and commissions, which the Society performs to fulfill the objective and to exercise the powers entrusted to it in its development banking character 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 9o.- The Federal Government will respond at all times to the operations of the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution:

I. With national natural or moral persons and the required deposits referred to in Article 55 of this Law; and

II. With private, governmental, and intergovernmental foreign institutions.

ARTICLE 10.- As an exception to the last paragraph of Article 348 of the General Law of Titles and Credit Operations, in the trust contracts that are In order to guarantee the rights of the National Bank of the Army, Air Force, and Navy, the National Credit Society, the institution of development banking, will be able to act in the same business as a trustee and trustee.

CHAPTER II

Savings and Work Funds

ARTICLE 11.- To constitute the savings fund, the generals, heads and officers or their counterparts in the Navy, in active service, will have to contribute a fortnightly fee equivalent to 5% of your assets. For the same purpose, the Federal Government will make an equal contribution. These funds will generate an interest in favor of the cumulative holders annually that will be fixed and, in their case adjusted to the proposal of the Board of Directors and with the authorization of the Secretariat of Finance and Public Credit.

ARTICLE 12.- The holders will have the right to have their savings funds fully available, at the moment that unlimited license is obtained or that they are separated from the asset.

Those who continue in the asset will be entitled to have the amount of their discounts every six years, counted from the date of their first contribution to the fund.

ARTICLE 13.- They may have the savings fund, the persons who the holders have designated as beneficiaries, in the event of death, and in the absence of designation, their family according to the ranking that is immediately pointed out:

I. The spouse, or in his absence, the person with whom he has made marital life during the immediate five years prior to his death in concurrence with the children of the occiso to equal parts;

II. The mother;

III. The parent; and

IV. Those who justify their kinship with the holder of the fund; the nearest ones will exclude the most remote, in case of controversy will resolve the judicial authority.

ARTICLE 14.- The work fund will be constituted with the contributions that the Federal Government will make in favor of each element of the troops or their equivalents in the Navy, from of the date on which it is caused high or reengaged, until it obtains unlimited license, is separated from the asset or ascienda to official, plus an interest in favor of its holders, cumulable annually, that will be fixed and in its case adjusted in the terms of Article 11 of this Law.

ARTICLE 15.- The contribution that the Federal Government makes in the terms of the previous article, will be equivalent to 10% of the annual staff of the troops or their staff. equivalents in the Navy.

ARTICLE 16.- The work fund may have the troops or their counterparts in the Navy, who are separated from the asset, obtain a hierarchy of officers, or grant unlimited license; and

Persons who have been designated as beneficiaries by the troops or their counterparts in the Navy in the event of death, and in the absence of designation, their family members according to The priority referred to in Article 13 of this Law.

ARTICLE 17.- The contributions of the Federal Government to the savings and labor funds will be given to the Company in terms of the terms of the Treasury Secretariat. and Public Credit and the Programming and Budget, within the sphere of their respective competencies.

ARTICLE 18.- The Secretaries of National Defense and Navy, will provide the Company with data for the formation of the necessary registration for the administration of the funds and must communicate to him in due time the ups and downs of the personnel, generals, chiefs, officers and troops, or their counterparts in the Navy.

ARTICLE 19.- The savings and labor funds are inembargable and untransmittable. They may be affected only by debited debits from the military, which are the result of the operations provided for in this Law, or by judicial provision in the case of food. The right to claim them will not be prescribed.

ARTICLE 20.- The National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, will manage the resources affected by the funds of savings and labor, subject to the rules established by the Secretariat of Finance and Public Credit and the provisions of this Law.

ARTICLE 21.- When the personnel of generals, chiefs, officers, and troops or their counterparts in the Navy are subtracted from the action of the Military Justice and the Bank is notified of this by the authority The competent military may not have their own funds for savings and work as long as there is no definitive resolution in the terms of the legislation of the same jurisdiction.

ARTICLE 22.- The loans will be made in such a way that the corresponding credits for reintegrating the amount borrowed, added to the mortgage loan discounts and the which are to be made on any other debit with the Company, do not exceed 50% of the retirement or pension in your case.

ARTICLE 23.- The National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, will administer the resources affected by the savings and labor funds, which will be used to grant loans in accordance with the terms and conditions authorized by the Board of Directors and the requirements laid down in this Law. The unused amounts shall be invested in order to promote and finance the activities entrusted to the company in its development banking character.

CHAPTER III

Mortgage Warranty Loans

ARTICLE 24.- The military personnel who are perceived to have retired from the Federal Erarium will be able to obtain from the National Bank of the Army, Air Force, and Navy. National Credit Company, development banking institution, mortgage-backed loans in the first place on urban buildings, to the extent of the resources available for this purpose. These appropriations shall be allocated to:

I. Acquire homes for the military's family room;

II. Acquire land on which the military's family room must be built;

III. Build homes for the military room;

IV. Make improvements or repairs to the military's family room homes; and

V. Redeem the liens that support such buildings from the operations referred to in the previous fractions.

ARTICLE 25.- Mortgage loans will be subject to the rules that are issued by the Board of Directors.

ARTICLE 26.- The homes acquired or built by the military for their family room, with funds provided by the Bank will be exempt from the date of their acquisition or construction, of all federal taxes and those of the Federal District, during the term that the credit remains insolute. Contracts in which such acquisitions or claims are made shall also be waived. This benefit shall cease when the buildings are disposed of or intended for another purpose.

CHAPTER IV

Short Term Loans

ARTICLE 27.- The Company may grant short and medium term loans, in accordance with the resources available for this purpose:

I. To the military with having or to withdraw; and

II. To pensioners.

ARTICLE 28.- Repeals

ARTICLE 29.- The National Defense and Navy Secretariats will report to the National Bank of the Army, Air Force and Navy, National Credit Society, banking institution of development, within a period of not more than 15 days from the date on which the following situations are generated:

I. The ups and downs of Armed Forces personnel;

II. Licenses that are granted without the enjoyment of assets;

III. The names and hierarchies of the military that have met the age limit; and

IV. The names of the family members that the military may point out to enjoy the benefits that this Law grants them, even when the military causes a low or changes of beneficiaries.

ARTICLE 30.- Repeals

ARTICLE 31.- Short-and medium-term loans will be granted in accordance with the rules that are issued by the Board of Directors.

ARTICLE 32.- Repeals

ARTICLE 33.- The debits for loans that are not covered by the military may be discounted, after six months of maturity or, within a shorter period of time, with the authorization of the accredited person, their savings or work funds, and as regards the military with retirement and the pensioners, the same shall apply to the retirement assets or perceptions that they enjoy. The policies for the discounts referred to in this article must be approved by the Board of Directors.

THIRD TITLE

Social Capital

ARTICLE 34.- The social capital of the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, will be represented by (a) a 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 it confers on its own Federal Government.

The series "B" may be subscribed by the Federal Government, by the entities of the ParaState Public Administration, by the commercial companies formed by the members of the Forces Armed, by the members of these who have the degree of generals, bosses or their equivalents in the Navy and by Mexican physical or moral people.

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 35.- 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 Public, hearing the opinion of the Bank of Mexico and the National Banking and Insurance Commission.

ARTICLE 36.- At no time will 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 37.- 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.

TITLE FOURTH

Administration and Surveillance

ARTICLE 38.- The administration of the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, will be entrusted to a Board of Directors and a Director General, in their respective spheres of competence.

ARTICLE 39.- The Board of Directors will consist of eleven designated counselors as follows:

I.       Five directors who will represent the "A" series of certificates of patrimonial contribution and that will be each of the following dependencies: of the Secretariats of the National Defense, Marine and two of the Secretariat of Finance and Credit Public, as well as the Social Security Institute for the Mexican Armed Forces.

(Repealed second paragraph)

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

They will be alternates of the mentioned counsellors, preferably the public servants of the level Next bottom immediately.

[subhead] In the absence of the Secretary of Finance and Public Credit, the Undersecretary of Finance and Public Credit In the absence of the latter, it will have the status of president of the Board of Directors of the Secretary of Finance and Public Credit. among the counselors in the string "A".

II.      Four Counselors who will represent the "B" series designated as follows, one for each of the Secretariats: National Defense, Navy, Treasury and Public Credit and one of the Social Security Institute for the Forces Mexican Armed Forces.

(Repealed second paragraph)

For each owner counselor, an alternate will be appointed, in the form and terms in which the owners are.

(Defeat the fourth and fifth paragraphs)

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 40.- The Board of Directors will meet at least quarterly and will be validly sessioned with the assistance of five counselors.

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 41.- In the event of the absence of the President of the Council, it will be replaced by the counselor that the Secretary of National Defense has appointed in the first place. In the absence of both, the members shall appoint the member to replace him.

ARTICLE 42.- They will not be able to be counselors:

I. The persons who are in the cases referred to in the penultimate paragraph of Article 41 of the Credit Institutions Act;

II. People who occupy a popular choice position, while in the exercise of it;

III. Two or more people who have, each other, kinship to the third degree by consanguinity or by affinity; and

IV. The officials or employees of the Institution.

If any of the appointed members is to be understood, during the course of his or her duties, in any of the preceding cases referred to in this provision, he shall be replaced by his/her alternate, for the duration of the The new owner will be prevented from being appointed.

V. Additionally, no independent advisors should be appointed, persons having:

a) Nexo patrimonial and/or employment relationship with the Company;

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 43.- 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, in respect of the operations provided for in sections VI and XI of Article 30 of the Regulatory Law of the Public Service of Banking and Credit, shall consider the proposal of the Director General.

ARTICLE 44.- The following are also the powers of the Board of Directors:

I.       Approve the Annual Activities Report presented to you by the Director General;

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

III.    Appoint and remove, on a proposal from the Director General, the public servants of the institution who occupy positions with the two administrative hierarchies inferior to those of that institution and who meet the requirements set out in Article 24 of the the Law of the Matter;

IV. Approve the budget and the modifications it corresponds to during the exercise, in the terms of the applicable provisions;

V. Approve, on a proposal from the human resources and institutional development committee, compliance with the provisions of article 42, fraction XVIII of the Law of Credit Institutions, the organic structure, tabulators of salaries and benefits, wage policy and for the granting of extraordinary perceptions by the compliance with targets subject to performance evaluation, taking into account The conditions of the prevailing labor market in the Mexican financial system; promotion policies, promotions and retirements; guidelines for selection, recruitment and training; separation criteria; and other benefits economic and social security established for the benefit of the public servants working in the Society;

VI.      Approve the policy for the determination of the interest to be paid to the savings and labor funds, to be submitted to the authorization of the Secretariat of Finance and Public Credit;

VII. Set the terms and conditions for granting loans from the savings and work funds, and

VIII. Approve the policies for the discounts provided for in Article 33 of this Law.

ARTICLE 45.- The Director General shall be appointed by the Federal Executive, with that appointment to a General or Chief of the Army, Air Force or equivalent of the the Navy.

ARTICLE 46.- The Director General will be responsible for the administration and legal representation of the National Bank of the Army, Air Force and Navy, National Credit Society, institution of development banking, without prejudice to the powers that correspond to the Board of Directors, to the effect it shall have the following powers and functions:

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 manner, they may issue, endorse and negotiate titles of credit, request and grant forgiveness, exercise and desist from judicial actions, including in the trial of amparo; compromise on arbitrators and compromise, grant General and special powers with all the powers that are responsible for it, even those that require special clause, replace them, revoke them and grant powers of substitution to the proxies, and must obtain express authorization from the Board of Directors in the case of granting general powers for domain acts;

I Bis. Inform the Secretariat, prior to the authorization of the 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 a General Trust Delegate;

IV bis. Decide to appoint and hire the public servants of the Society, different from those mentioned in Article 42 of the Credit Institutions Act, as well as the appointment and removal of trust delegates; manage staff as a whole, and establish and organize the institution's offices;

V.         Those that point to the Organic Regulation; and

VI.        Those delegated by the Board of Directors.

ARTICLE 46a.- They 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 47.- 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 a general nature to be issued by the National Banking and Securities Commission.

ARTICLE 48.- The directors, directors, directors, directors, managers, and trust delegates of the Company will only be required to acquit. positions or testimony in court on behalf of the same, when the positions and questions are formulated by means of trade, which will answer in writing within the term that they indicate in the respective authorities.

ARTICLE 49.- (Repealed)

TITLE FIFTH

General Provisions

ARTICLE 50.- The Secretariat of Finance and Public Credit will interpret this Law for administrative purposes and may issue the additional provisions required in the the application of the same.

ARTICLE 51.- The Company's operations and services shall be governed by the provisions of this Law and shall be provided by the Regulatory Law of the Public Service of Banking and Credit, by the Organic Law of the Bank of Mexico, and by the other applicable provisions.

ARTICLE 52.- The Company will annually formulate its financial programs, general expense and investment budgets, as well as its operational programs. agreement to the guidelines, measures and mechanisms that the Secretariat of Finance and Public Credit will establish.

The modalities in the allocation of resources will be authorized by the Secretariat of Finance and Public Credit, in the terms of Article 31 of the Law of Institutions of Credit, which will seek the best use and the most appropriate channelling of the resources of the institution, in the framework of the autonomy of management required for its efficient operation, in accordance with the legal provisions applicable.

ARTICLE 53.- 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 quantities 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 institution, the balance shall be applied in accordance with the terms laid down in the Organic Regulation.

ARTICLE 54.- The federal government will provide the National Bank of the Army, Air Force and Navy, National Credit Society, banking institution of development, the necessary amounts to cover the obligations imposed by this Law on the Company, with respect to the savings fund and the work fund, to which the Secretariat of Finance and Public Credit will monitor that in the Budget of the respective Federation, the respective items are included.

ARTICLE 55.- They must be done at the National Bank of the Army, Air Force and Navy, National Credit Society, development banking institution, cash deposits that they are obliged to constitute the students who cause high in the military schools, in order to guarantee their use.

ARTICLE 56.- The Society's public servants, regardless of what is stated in this Law, will preferably be military.

ARTICLE 57.- 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 58.- 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 legislation and to the public servants who work or have worked in the institution, with respect to the acts that those persons perform in the exercise of the functions they have entrusted to them by law and in accordance with the Guidelines that the Secretariat of Finance and Public Credit issue for that purpose.

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 SECOND.- This Law abrogates the Organic Law of the National Bank of the Army, Air Force and Navy, dated December 27, 1978.

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, remain in force until they are revoked or amended by the competent authorities and bodies.

ARTICLE FOURTH.- 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. In that period, the issue shall continue in force on 29 July 1985.

ARTICLE QUINTO.- The head office of the National Army, Air Force and Navy, National Credit Society, development banking institution, will be the city of Mexico, Federal District, as long as the Organic Regulation referred to in the previous article is not issued.

Mexico, D. F., at 21 December 1985.- Fernando Ortiz Arana, Dip. President.- Socorro Díaz Palacios, President.- Reyes Rodolfo Flores Zaragoza, Dip. Secretary.- Guillermo Mercado Romero, Sen. Secretary.-Rubicas. "

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States and for their proper publication and observance, I hereby issue this Decree at the residence of the Government of Mexico. Federal Executive, in Mexico City, Federal District, at the twenty-three days of the month of December of a thousand nine hundred and eighty-five.- Miguel de la Madrid H.-Heading.-The Secretary of the Interior, Manuel Bartlett D.-Heading.-The Secretary of National Defense, Juan Arevalo Gardoqui.-Heading.-The Secretary of the Navy, Miguel Ángel Gómez Ortega.-Heading.-P. A. of the Secretary of Finance and Public Credit, The Assistant Secretary of the Office, Francisco Suárez Davila.-Heading.-The Secretary of Programming and Budget, Carlos Salinas de Gortari.-Heading.