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PROPOSED LAW NO. 170 /X

Exhibition of Motives

The Credit Risk Centralization Service enshrined in Decree Law No. 29/96, 11

of April, has been meeting its objectives, giving response to the need for the

credit institutions and financial companies correctly assess the risks of their

operations.

The improvement of the effectiveness of this Service and the quality of centralized information requires, however,

that the correct identification of credit recipients is ensured. The simple fact of

a participating entity abbreviate the name of one customer and another not, being passed on

different identification documents, can lead to poor aggregation of the

credit responsibilities of that customer and thereby impair compliance with the

objectives of the Credit Risk Centralization Service.

It is thus necessary, for the safety and accuracy of the information, to enshrine the possibility of the

Bank of Portugal get from the Directorate General of Taxes, by electronic means, the names

associated with the tax identification numbers of the credit recipients, transmitted by the

participating entities, exclusively for verification of the consistency of the information;

It is also justified in the prediction of a sanctionatory regime of the offences of it arising and of the

regulations emanating from the Bank of Portugal on the centralization of responsibilities of

credit.

Being in a matter of matter which falls under Title II of the Constitution of the Portuguese Republic

reserved for the Rights, Freedoms and Guarantees, of the relative competence of the Assembly of

Republic, so that the Government may revise the Decree-Law No 29/96 of April 11,

replacing it with another diploma for, among other adaptations and updates, consecration of the

purposes set out above, it is necessary for the Assembly of the Republic to check it out

legislative authorization for the purpose.

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Thus:

Under the terms of the paragraph d ) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Subject

Is the Government authorized to review the legal framework of the Centralisation Service of

Responsibilities of Credit, constant of the Decree-Law No. 29/96 of April 11,

replacing it with another diploma to adapt, update and consecrate the purposes

set out in the following article.

Article 2.

Sense and extension

1-In the use of the legislative authorization conferred by the previous article, it may the Government:

a) Enshrining the possibility for the Bank of Portugal to obtain from the Directorate General of the

Taxes, by electronic means, the names associated with the identification numbers

tax of the credit recipients, transmitted by the participating entities,

exclusively for verification of the consistency of the information;

b) To determine that the derogation from the duty of secrecy to which the Bank of Portugal and the

Directorate-General for Taxes stay obliged, for the strict purposes set out in the

this article, is without prejudice to its observance in the most, specifically for the purpose of

of protection of personal data.

c) To provide for a sanctionatory regime of the infringements of the obligations arising from the

legal framework of the Credit Liability Centralization Service and

of the regulations emanating from the Bank of Portugal on the centralisation of

credit responsibilities, in which they fall within all entities

participants, articulating it, as much as is necessary on the grounds of matter, with the

provisions of Law No. 67/98 of October 26 and fixing the moldings of the fines

corresponding to the illicit of mere social ordering up to a maximum limit of

€ 750 to 000.00.

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2-A communication between the Bank of Portugal and the Directorate General of Taxes referred to in

point ( a) of the preceding paragraph covers only the credit recipients transmitted by the

participating entities and perform with cessation of the duties of professional secrecy to which

both entities are subject.

Article 3.

Duration

The present legislative authorization has the duration of 180 days.

Seen and approved in Council of Ministers of November 8, 2007

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

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The Credit Risk Centralization Service enshrined in Decree Law No. 29/96, 11

of April, has been meeting its objectives, giving response to the need for the

credit institutions and financial companies correctly assess the risks of their

operations.

The improvement of the effectiveness of this Service and the quality of centralized information requires, however,

that the correct identification of credit recipients is ensured. The simple fact of

a participating entity abbreviate the name of one customer and another not, being passed on

different identification documents, can lead to poor aggregation of the

credit responsibilities of that customer and thereby impair compliance with the

objectives of the Credit Risk Centralization Service.

It is thus necessary, for the safety and accuracy of the information, to enshrine in law the possibility

of the Bank of Portugal to access the file of the Tax Identification Number, managed by the

Directorate-General for Taxes, for verification of the identification data of beneficiaries of

credit.

As a result of the decision made by the European Central Bank to include the loans

banking on the list of assets received by the national Central Banks in guarantee of

monetary policy and intraday credit operations, it is also necessary to extend the scope

of the use of the information transmitted by the participating entities, so as to allow the

risk assessment involved in the acceptance of bank loans as a guarantee of the

operations and the centralized registration of these guarantees.

A sanctionatory regime of the infringements of the obligations arising from the

present decree-law, in which they become covered all the participating entities.

Take advantage to change the legal designation for Central Credit Responsibilities, with

the acronym CRC, and to clarify the scope of the operations covered by the centralisation.

It was heard from the National Data Protection Commission and the Bank of Portugal.

Thus:

In the use of the legislative authorization granted by the Law No [...], of [...], and in the terms of the paragraphs

a) and b) of Article 198 (1) of the Constitution, the Government decrees the following:

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Article 1.

Subject

1-A Central Credit Liability (CRC), secured by the Bank of Portugal, in the

terms of its Organic Law, passed by Law No. 5/98 of January 31, has the object of:

a) Centralize the actual or potential liabilities of credit granted by

entities subject to the supervision of the Bank of Portugal or by any other

entities that, in any form, grant credit or carry out operations

analogues;

b) Disseminate the centralized information to the participating entities;

c) Gather information necessary for the assessment of risks involved in accepting the

bank lending as collateral in the framework of monetary policy operations

and intraday credit.

2-A Central of Credit Liability covers the information received concerning

actual or potential liabilities arising from credit operations, under

any form or modality, of which natural or legal persons are beneficial,

residents or non-residents on national territory.

3-The provisions of the preceding paragraphs shall be without prejudice to the obligations of treatment or of

dissemination of information provided for in other legal diplomas.

Article 2.

Participating entities

1-The participating entities are the entities subject to the supervision of the Bank of Portugal that

grant credit, branches of credit institutions with registered office abroad and activity

in Portugal and other entities designated by the Bank of Portugal which, in some way,

exercise credit or activity functions with this directly related.

2-The participating entities figure in the list published on the Bank of Portugal website at the

Internet .

3-Compete to the Bank of Portugal to establish the regulatory standards and procedures that

have by convenient for the proper functioning of the Central of Responsibilities Of

Credit and disseminate them by the participating entities.

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4-A information released by the Bank of Portugal, constant of the Central of

Credit responsibilities, is the responsibility of the entities that have it

conveyed, and shall be uniquely available to them to carry out their amendment or rectification, by

your initiative or the solicitation of your customers, whenever errors or omissions occur.

5-In everything that relates to the information received from the Central of Liabilities

of Credit, the entities referred to in the preceding paragraph shall be subject to the standards relating

the professional secrecy contained in the General Regime of Credit Institutions and Societies

Financial, approved by the Decree-Law No. 298/92 of December 31.

Article 3.

Duty of communication

1-Participated entities are required to provide the Bank of Portugal, pursuant to the

approved regulation, all elements of information relating to

actual or potential liabilities arising from credit operations granted

in Portugal, referred to in the following number and, when required by the Bank of Portugal,

all elements of information regarding actual or potential liabilities

arising from credit operations granted abroad by its branches in the

exterior.

2-Each participating entity is obliged to communicate to the Bank of Portugal the balances, in

end of each month, of the responsibilities arising from the following credit operations

granted in Portugal, to residents or non-residents in national territory, by their

sedes, subsidiaries, agencies and branches, including those installed in the French Madeira and the

island of Santa Maria:

a) Active operations with natural or legal persons, to be communicated in the name of the

direct beneficiary of the credit and guarantees provided and received, in the name of the

potential debtor, including, in these operations, the following particular situations:

i) The amounts not used, for any types of lines of credit

irrevocable contractors, including credit cards, to be communicated in the name of the

direct beneficiary, for constituting potential liabilities;

ii) The amounts of the compensated transactions, to be communicated in the name of the

direct beneficiary, for constituting effective liabilities;

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iii) The full or partial use of savings-emigrant loans granted to the

shelter from the current legislation, or any modification of the capital in debt;

iv) The amounts of guarantees provided by participating entities to ensure the

compliance with credit operations granted by other entities

participants;

v) The amounts of the fiances and avales provided in favour of the participating entity, the

communicate on behalf of the guarantors and guarantors, as of the beginning of the contract of

mutual, up to the limit of the guarantee provided;

b) Credits taken with recourse, to be communicated in the name of the adherents, from the

moment of the realization of the operation, and shall be reclassified in a situation of

default the claims in which they have elapsed, after the expiry of the

invoices or the changeable securities, the time period set out in instruction of the

Bank of Portugal;

c) Credits taken without recourse, to be communicated on behalf of debtors and with

knowledge of these, for which it has elapsed, after due

of the invoices or the changeable securities, the period of time set in instruction of the

Bank of Portugal;

d) Credits yielded in securitisation operations, to be communicated by the ceding entity,

on behalf of the direct beneficiary;

e) Credits allocated to mortgage bonds or obligations on the public sector, the

communicate by the issuing credit institution of the obligations, in the name of the

direct beneficiary of credit.

3-Monthly communications of responsibilities to be carried out by the participating entities,

referring to the balances at the end of each month, must be compulsorily remitted to the Bank

of Portugal within the following deadlines, counted from the beginning of the month following that to which

respect the responsibilities:

a) 11 working days, for communications to be carried out by December 31, 2010;

b) 6 working days, for the communications to be carried out after December 31, 2010.

4-Are not covered by centralisation, so they should not be communicated:

a) The transactions carried out between resident monetary financial institutions;

b) The operations carried out between the participating entities and the Bank of Portugal;

c) The debts forgiven by the participating entities;

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d) The value of the credit granted in discount of securities that were the subject of retirement,

for which only the credit granted at a discount of the new one should be communicated

title.

Article 4.

Interconnection of data

1-Without prejudice to the duties of communication by the participating entities of the data of

identification of complete and correct credit recipients, the Bank of Portugal may

access, by communication, to the file of the Tax Identification Number, managed by the

Directorate-General for Taxes, for verification of its accuracy.

2-A communication between the Bank of Portugal and the Directorate-General for Taxes has only

by purpose of allowing to check the coincidence between the identification data of the

beneficiary of credit, including the Tax Identification Number, transmitted by the

participating entities, and the name and Number of Fiscal Identification listed in the

File of the Directorate General of Taxes.

3-A derogation from the duty of secrecy to which the Bank of Portugal and the Directorate General of

Taxes are required, for the strict purposes set out in this Article, is without prejudice to the

their observance in the most, specifically for the purposes of protecting personal data.

Article 5.

Purpose of information

1-A constant information from the Central Credit Liability Office can be used for

the following purposes:

a) Centralization of credit responsibilities;

b) Supervision of credit institutions and financial companies;

c) Analysis of the stability of the financial system;

d) Realization of monetary policy and intraday credit operations;

e) Statistical compilation.

2-A The dissemination of information is without prejudice to the observance of the duty of banking secrecy that

protects individualized identification of persons or institutions and their respective

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operations.

Article 6.

Communication of data

1-The participating entities may apply for the Bank of Portugal to be given

knowledge of the information registered in the Central of Relative Credit Responsibilities

to natural or legal persons who have requested credit for them.

2-Are conditions of legitimacy of the request for information being the requesting entity creditor

current of the natural or legal person concerned, or, not being creditor, having it received

application for granting credit.

3-The Bank of Portugal can regulate the conditions of legitimacy and set conditions

complementary.

4-The Bank of Portugal may fix and charge a counterpart importance by the

information you provide.

Article 7.

Restrictions on the dissemination of centralized information

1-The information provided by the Bank of Portugal to the participating entities cannot

contain any indication about the locality in which the credits were heard or

of the entities that granted them.

2-Such information is exclusively intended for the participating entities, sensing them

vetted to their transmission, in whole or in part, to third parties.

Article 8.

International cooperation

1-1-The Bank of Portugal may, in the framework of cooperation agreements, carry out the

exchange of information on credit responsibilities with the bodies of the

Member States of the European Union or of any other countries in charge of the

centralization of these responsibilities.

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2-A cooperation referred to in the preceding paragraph, when it does not result from legal provisions,

of standards of Community law or international convention, may be established

upon mutual information agreements entered into by the Bank of Portugal with such

organisms or stipulated on a case-by-case.

3-The Bank of Portugal can only provide information of a confidential nature to bodies

foreigners as long as they benefit from guarantees of secrecy at least equivalent to the

established in Portuguese law.

4-The duty of secrecy does not prevent the Bank of Portugal, in the performance of its

assignments, use the confidential information received in the terms of this article

for the purposes set out in Article 4.

Article 9.

Sanctions

1-Constituent counterordinance punishable with fine of € 750.00 a € 750 000.00 a violation of the

duty of communication, provided for in Article 3 (1 a) to 3, and the violation of duty of

secret, provided for in Article 2 (5), as well as the communication of information

incomplete or inaccurate.

2-Constituent counterordinance punishable with fine of € 750.00 a € 750 000.00 a violation of the

provisions of Article 7 (2)

3-Regarding the counter-ordinations provided for in paragraph 1, it may still be applied to the offender

the ancillary sanction of publication, by the Bank of Portugal, of the definitive punishment.

4-A publication is made in the Journal of the Republic or in the Official Bulletin of the Bank of Portugal or

on the Bank of Portugal website at the Internet www.bportugal.pt.

5-To the counterordinance proceedings instituted pursuant to paragraph 1, the provisions of

in articles 201 to 209 and 213 to 232 of the General Regime of Credit Institutions and

Financial Societies.

6-To the counterordinance proceedings instituted pursuant to paragraph 2, the provisions of

in Section II of Chapter VI of Law No. 67/98 of October 26.

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Article 10.

Fulfillment of the omitted duty

Where the offence results from the omission of a duty, the application of the penalty and the payment

of the fine do not waive the offender of his or her compliance.

Article 11.

Abrogation standard

1-It is repealed the Decree-Law No. 29/96 of April 11.

2-Until the establishment of new rules, the current standards remain in place

regulatory.

Seen and approved in Council of Ministers of

The Prime Minister

The Minister of State and Finance

The Minister of Justice