Regulation Of Agents Of The Capitalization And Savings And Loan Institutions

Original Language Title: Reglamento de Agentes de las Instituciones de Capitalización y de Ahorro y Préstamo

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CAPITALIZATION AND SAVINGS AND LOAN INSTITUTIONS

Published in the DOF on July 23, 1956

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

ADOLFO RUIZ CORTINES, Constitutional President of the United Mexican States, to its inhabitants, known:

That in the use of the faculty that confers me the fraction I of article 89 Constitutional and based on the provisions of article 42 of the Law General of Credit Institutions and Auxiliary Organizations, I have resolved to issue the following

REGULATION OF AGENTS OF CAPITALIZATION AND SAVINGS AND LENDING INSTITUTIONS

ARTICLE 1o.-For a person to be able to act by proposing or placing the subscription of applications for the issuance of securities to the public The National Banking Commission, which will be dealt with and will be granted in the terms of this Regulation

is required to be authorized by the National Banking Commission, or of savings and loan contracts for family housing.

ARTICLE 2o.-authorizations may be granted only to natural persons who have concluded a contract with the credit institutions authorised to carry out capitalisation or savings and loan operations for family housing, in accordance with the terms of Article 2 (V) and (VII). of the General Law of Credit Institutions and Auxiliary Organizations.

The persons enjoying the authorisation shall be considered as agents for the purposes of this Regulation.

ARTICLE 3.-Officials and employees of the institutions mentioned above shall not be authorized to use the authorization referred to in Article 1. carry out, on a commercial basis, the activities to which the same precept refers.

However, employees and officials engaged in definitiva (sic) who, with such character and by virtue of their positions, propose or place applications for the issuance of capitalization or savings and loan contracts must be previously recorded in the National Banking Commission, to which effect the institutions will be obliged to send the names and data of the same and those others requested by the Commission itself.

The institutions under no circumstances will be able to deal with requests for the filing (sic) of capitalization or savings and loan contracts, which have been proposed or placed through employees or officials who are not registered in the terms of the preceding paragraph or those to whom on any occasion the National Banking Commission has denied them authorization to act as agents, or if they have been authorized to have been revoked.

ARTICLE 4-The institutions shall respond jointly and severally to the damages caused by the persons who, with their consent, are used to propose or place captions of capitalization or contracts of savings and loan, provided that they are caused by reason of the proposal or placement and when such persons lack the authorization that is required according to to the article 1o. of this Regulation.

It is presumed, unless proof to the contrary, that an institution grants its consent to a person to propose to place titles or contracts, when provide you with documentation that you can use for such objects, when you cover fees or other remuneration for such placement or proposition or when, in any other way, you accept these activities.

ARTICLE 5o.-For the purposes of the provisions of Articles 41, Fraction XVI, and 46-p of the General Law of Credit Institutions and Organization (sic) Auxiliary, the institutions shall report annually to the National Banking Commission, on the total amount of the sums awarded to each of its agents, for any concept.

ARTICLE 6o.-Applications for authorization must be filed with the National Banking Commission, through the contracting institution and fill, at least, the following requirements:

I.-They will be formulated in duplicate in the forms provided by the National Banking Commission at the expense of the institutions.

II.-They shall, in duplicate, be annexed to the contract of trade commission concluded between the institution and the applicant.

III.-They shall have the mean filiation and fingerprints, and two photographs of the applicant must be attached to them.

IV.-They shall have a written statement signed by the applicant on the following interrogation, without prejudice to the National Commission Bank include in the questionnaire any other information:

a) Full name.

b) Age.

c) Place and date of birth and nationality.

d) Address of the house in which you speak at the time of the declaration.

e) Full names and addresses of at least two living relatives.

f) Full names and addresses at the time of the declaration, of two physical or moral persons who may be asked to report on the conduct and background of the declarant.

g) If you have acted or are acting as an agent in other institutions of capitalization, savings, and loan or in any insurance institution.

h) If you have received general instruction and to what degree (primary, secondary, preparatory, etc.).

i) If you have received specific instruction on capitalization or savings and loan.

j) If you are or have been subject to a process or have been convicted by the commission of any crime, possibly in your case, make the explanations that judge prudent.

V.-Dealing with foreigners, they must accompany their immigration documentation.

VI.-Place and date of the request.

ARTICLE 7o.-The true declaration of the applicant is the basis for the authorization to be granted and, therefore, in case of providing false when answering the interrogation referred to in section IV of the previous Article, the penalties provided for in this Regulation shall be granted, without prejudice to the criminal liability or any other nature in which the incurs.

ARTICLE 8o.-The institutions shall send to the National Banking Commission, for their processing, applications and their annexes, as well as duly requested credentials, stating that the means at their disposal have been verified by the means at their disposal, that the data entered, relating to the identity of the applicant, is in accordance with the truth.

The institutions, when submitting applications to the National Banking Commission, shall indicate on the same means that they have been valid for identify the applicants, and must use them: certified copies of their birth certificates, passports, conscript cards, copies of parochial records, license of car handling, professional titles, patents of trade, immigration documentation or any other document or testimony The invention relates to a device for filling the same object. In the case where the evidence is given by any or some agents, the numbers of their authorisations and their names shall be indicated. The institutions shall keep in their files, in the files of the applicants, a copy of the documentation which is cited, at least certified by an official authorized to do so by the institution itself and the signed declarations in the case of testimonials.

The National Banking Commission, when deemed appropriate, may inform the institutions, at the request of the institutions, of the they exist in their files in relation to people who intend to contract as agents.

ARTICLE 9o.-The National Banking Commission shall grant the authorizations within three working days following receipt of the applications in the offices of the same, provided that the circumstances provided for in Articles 10 and 11 of this Regulation are not presented.

The authorisations may be final or provisional.

ARTICLE 10.-If by the applicant's statements, the reports that he has in the files of the National Banking Commission or the (a) to the extent to which the applicant's own information has been submitted, it shall defer its decision in respect of the granting of the authorization, for as long as the applicant does not clarify the doubts arising, to the satisfaction of the National Banking Committee itself.

ARTICLE 11.-The National Banking Commission shall deny the requested authorization of the authorization, when of the elements with which it will be detached that the solciitante (sic) has committed or participated in acts or criminal acts or in those others who, without having constituted crimes, are of such a nature, that the activity of the applicant as an agent may be detrimental to the public or to the system In the case of the Commission itself, the Commission has decided to National Banking.

ARTICLE 12.-The National Banking Commission may grant discretionally provisional authorization, valid for up to ninety days and extendable for the same time, if justified, in any of the following cases:

1.-If some formal requirements or non-important data that the applicant needs to be addressed within a short time period have been omitted from the application.

2.-If the applicant only has minor issues to be clarified to the National Banking Commission, arising from his previous action as an agent of other institutions.

ARTICLE 13.-Agents shall credit their character with the credential issued by the National Banking Commission, in which the definitive authorization and which will contain the following:

1.-Portrait, signature and data indispensable for the identification of the agent.

2.-Faculties of the agent in accordance with his contract to a mercantile commission.

3.-Seal and authorized signature of the institution with which you have contracted.

4.-Number of the credential and the one that corresponds to the agent according to the records of the institution.

5.-Seal of the National Banking Commission and signature of the authorized official.

6.-Date of issue of the credential and term of validity of the credential in the event that the contract to a mercantile commission has been concluded by limited time.

The credentials will be given to the agents through the institutions concerned, which will have to obtain from them the constances of their delivery.

In the case of provisional authorization, the provisional authorization shall be communicated to the respective institution, subject to its conditions, with a copy to the interested.

ARTICLE 14.-The authorization shall be automatically extinguished, in the following cases:

I.-When the contract to the merchant commission between the institution and the agent is terminated by the will of either party.

II.-When the agent acquires the character of the employee or official of the respective institution.

III.-By death or incapacity, legally declared, of the agent.

IV.-Due to the deadline, in the case of provisional authorizations.

The institutions shall process operations which have begun to negotiate their agents prior to the termination of the authorisations and which are be concluded within 45 days of the date of such operations, provided that such operations are in accordance with the applicable legal provisions and the rules of operation of the institutions themselves.

ARTICLE 15.-The National Banking Commission will revoke the authorization:

I.-When the agent would have failed to produce his statement in accordance with section IV of Article 6o. or in any other case where such authorisation has been obtained in contravention of the provisions of this Regulation.

II.-When the agent has committed or participated in acts or criminal acts or in those other than to constitute crimes contrary to morality or good manners, provided that each and others, according to the prudent arbitration of the National Banking Commission, are of such a nature that the activity of the agent may be detrimental to the public or to the system of capitalization or savings and loan.

III.-When the agent uses defamatory, slanderous or harmful procedures to the prestige of the other institutions of capitalization or of savings and loan, or have some participation in them.

IV.-When the agent has participated in any form or post, in practice procedures by which he offers to the public the subscription of applications for the issuance of capitalization or savings and loan contracts, with any advantage or benefit that is not included in the textual conditions of such securities or contracts, as the case may be.

V.-When the agent misuses or alters the forms of requests for the issuance of capitalization or savings and loan contracts or the forms of receipt of premiums or initial fees, to the detriment of the Bank or the subscriber, or where other persons with their consent make use of those forms.

VI.-When, according to the criteria of the National Banking Commission, the agent puts into practice or participates in procedures by which obtaining, with or without damage to the holders of capitalisation, savings and loans or life insurance, which those persons directly or through the staff member themselves or from persons, change their securities, contracts or insurance policies of life, so you may issue or hold another credit or insurance institution.

VII.-When the agent obtains or illicitly provides data or reports from the institution with which he or she has a contract or any another, on the clientele or on the terms of the securities or contracts entered into by it.

VIII.-When the agent has produced a false identification testimony, in the case of the second paragraph of Article 8o. of this Regulation.

ARTICLE 16.-The National Banking Commission, the (sic) initiating the processing of the revocation procedure or during the same, may demand the return of the credential and order the respective institution to refrain from processing requests or other documents sent by the affected agent.

ARTICLE 17.-At the beginning of the revocation procedure, the National Banking Commission will place the affected agent so that within the 20 working days, which may be extended to the Commission's own judgment, set out what is appropriate.

After the term and the extensions, if any, the National Banking Commission shall give its decision within 20 days.

ARTICLE 18.-The initiation of the revocation procedure shall be made known to the institution and to the agent concerned; the latter shall be sent the notification by registered mail, with acknowledgement of receipt, to the last address which the National Banking Commission has registered, without prejudice to any other means. The institution shall, upon hearing the proceedings initiated, be required to take all due care to ensure that the staff member has timely notice of the notification.

ARTICLE 19.-The person to whom an authorization has been revoked may not request another authorization, but after three years from the date on which the revocation is signed.

ARTICLE 20.-The National Banking Commission may reconsider its agreements with respect to a refusal of authorization or revocation of the same, when they are presented, at any time, evidence that has not been considered, or are provided with new elements that prove that the causes that at their origin have resulted in such refusal or revocation have disappeared.

ARTICLE 21.-The termination or revocation of the authorization produces the termination of the contract to a commercial commission, without prejudice to third parties and without liability to the institution, in which case the obligations arising out of the contract shall be enforceable in the terms stipulated therein.

ARTICLE 22.-The institutions shall inform the National Banking Commission of the cases or facts that have produced the extinction or of those which may be grounds for revocation of the authorisation of its servants, or which do not constitute irregularities which damage the public, the system of capitalisation or savings and loans or the institutions, within a period of five days from the date on which they are of the date on which they are aware of them.

ARTICLE 23.-For the purposes of the foregoing article, and for consultation of the National Banking Commission, the institutions shall keep a record of the claims that are presented to them in writing against their agents.

ARTICLE 24.-Agents shall give written notice to their respective institutions of the changes in their address and shall in turn communicate them to them. the National Banking Commission when they are required to do so. Agents acting in various parts of the Republic shall indicate an address in which they may receive correspondence.

ARTICLE 25.-The agent who suffers the theft, loss or destruction of his or her credential, must inform of that circumstance, within the period of five days, to their respective institution, and is, in turn, to the National Banking Commission, and may request the issue of a duplicate upon a new application in which it declares theft, loss or destruction, for the purposes of Article 7o. It shall also be obliged to inform the institution in the event of theft, loss or destruction of any other documentation relating to its agent activity, within the same time limit.

ARTICLE 26.-Where, by special circumstances, the National Banking Commission considers that the credential of a certain agent should be reestablished, the staff member shall be required to submit a new application in accordance with Article 6. of this Regulation.

ARTICLE 27.-In cases of revocation of the authorization, the agent will be obliged to return his credential to the National Banking Commission, either directly or through the institution concerned.

In cases of extinction of the authorization, the institutions shall inform the National Banking Committee of these circumstances, within the five days ' time, by proceeding to take the necessary steps to ensure that the former agent or, where appropriate, his or her family members, return the relevant credential and the other documentation.

The institutions will be obliged to report to the Public Ministry, the fraudulent acts of which they have knowledge, committed by persons they have made use of credentials to be returned to the National Banking Commission, for the purposes of having revoked or extinguished the authorisation, and shall refrain from processing applications or other documents sent by such persons.

ARTICLE 28.-The texts of the printed forms which the institutions provide to their agents, and which may be used in their relations with the public, shall be previously approved by the National Banking Commission.

The forms of applications for the issuance of capitalization titles and for the conclusion of savings and loan contracts must be numbered and shall bear, in addition, the name of the agent to whom they are delivered and the number of their credential or of the trade, in the case of provisional authorisations.

The forms of receipts that the agents use will be numbered and will be printed with the name of the respective agent and the number of their credential.

ARTICLE 29.-The institutions must carry out strict control of the documents they provide to their agents for the proposal or placement of capitalization or savings and loan contracts.

The National Banking Commission shall approve each institution the system which for that purpose it must carry.

ARTICLE 30.-In no case can institutions provide forms of applications for the issuance of capitalization or savings contracts and loan or receipt of premiums or initial fees, not to provide economic means, for the performance of the activities that this Regulation regulates, to persons other than their agents.

ARTICLE 31.-Persons who have obtained an authorization from those provided for in this Regulation may not be agents of another institution of the the same class, but authorisation may be granted for a person to be simultaneously a capitalisation and savings and loan agent, if the institutions concerned express their conformity in writing to the National Banking Commission.

ARTICLE 32.-Agents will be responsible for the misuse they make of the forms of applications or receipts of premiums or initial quotas that are surrender, or when, by virtue of their fault or with their consent, they are used by third parties in which case they will respond jointly and severally to the damages that are caused for this reason, regardless of the penalties to be imposed creditors.

ARTICLE 33.-The National Banking Commission will point out which precepts of this Regulation, as the case may be, must be inserted in the credentials that issue or in the forms of contracts which the institutions formulate and determine how they shall make known to their agents what is ordered in this Regulation.

ARTICLE 34.-They offer the rights of the Society and it is illegal the activity of persons who, without complying with the requirements of this Regulation, are dedicated to proposing or placing in the public capital titles or savings and loan contracts.

Without prejudice to the criminal or civil liabilities incurred by the Secretariat of Finance and Public Credit, prior to the hearing of the interested, may impose a fine of up to $5,000.00 for the persons referred to in the preceding paragraph.

ARTICLE 35.-Without prejudice to the criminal or civil liability in which they incur, the agents will be punished with a fine of up to $1,000.00 in the terms of Article 42 of the General Law on Credit Institutions and Auxiliary Organizations, for violations committed to the provisions of this Regulation.

Where an institution of capitalisation or savings and loan has responsibility for any of the infringements of its agents, it shall be punished, not only to these, but also to the institution in the terms of the following article and to its officials or employees who are responsible, with fine up to $1,000.00

ARTICLE 36.-The violations committed by the institutions of capitalization and savings and loan, to the provisions of this Regulation, be punished in the form and terms laid down in Article 42 of the General Law of Credit Institutions and Auxiliary Organizations.

TRANSIENT:

ARTICLE 1o.-This Regulation shall enter into force thirty days after its publication in the "Official Journal" of the Federation; and upon entry into force the Regulation of the Agents of Capitalization and Savings Institutions, dated March 12, 1945, was repealed, published in the "Official Journal" of the Federation of 9 April of the same year.

ARTICLE 2o.-Agents who are authorized under the Regulation to be repealed and whose credentials are in force for having been duly endorsed, they may continue their activity until the expiration of the same without the need for new management on their part, but with sufficient anticipation to the expiration of their credentials, they must submit a new application for authorization and make the a statement in the terms provided for in this Regulation; further returning the credentials that they own.

With the exception that will apply to the aforementioned agents to the institutions with whom they are hired, all the other requirements of this Regulation.

The institutions will take care to inform their agents of this precept.

ARTICLE 3.-Persons who, on the date of entry into force of this Regulation, are hired as agents by the institutions, but not under the conditions set out in the first paragraph of the previous Article, within a period of 3 months they shall submit a new application to the National Banking Commission in accordance with Article 6. This term may be extended by the Commission in the special cases which it determines. During these periods, such persons may continue to act as agents without infringing Article 1. of this Regulation.

The institutions must submit within 10 days, from the date on which this Regulation enters into force, a list of persons which are in accordance with the conditions set out in the preceding paragraphs. Persons who, finding themselves in such conditions, do not appear in the relationship, or who appear to be rejected by the National Banking Commission, may not continue to act as agents.

ARTICLE 4.-The institutions shall submit within 30 days the relations of the officials and employees referred to in the article 3o. of this Regulation.

ARTICLE 5o.-The institutions shall enjoy the term of one year from the validity of this Regulation to obtain the approval of the forms referred to in Article 28 of this Regulation.

For publication and enforcement of this Regulation, at the residence of the Federal Executive Branch, in Mexico City, D. F., Ten days of the month of July of a thousand nine hundred and fifty-six.-Adolfo Ruiz Cortines.-Heading.-The Secretary of Finance and Public Credit, Antonio Carrillo Flores.-Heading.