Resolution Of October 6, 2010, Of The Commission Executive Of The Bank Of Spain, Which Modifies The One Of 11 December 1998, Which Approve The General Provisions Applicable To The Operations Of The Bank's Monetary Policy Of...

Original Language Title: Resolución de 6 de octubre de 2010, de la Comisión Ejecutiva del Banco de España, por la que se modifica la de 11 de diciembre de 1998, por la que se aprueban las cláusulas generales aplicables a las operaciones de política monetaria del Banco de...

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La Commission Executive of the Bank of Spain, in accordance with the provisions of article 23.1, away to) and h) of the law 13/1994 of 1 June, autonomy of the Bank of Spain; ((in the article 66.1, away to) e i) the internal regulations of the Bank of Spain and in clause XII of the «general terms applicable to the operations of the monetary policy of the Bank of Spain» approved by resolution of the Commission Executive of the Bank of Spain on December 11, 1998, and on the occasion of the adoption by the Bank Central European in orientation («Guideline») on September 16, 2010 by which modifies the Orientation ECB/2000/7 of 31 August 2000 on the instruments and procedures of the monetary policy of the Eurosystem (ECB/2010/13), agrees: first.-included in the cited «General provisions applicable to the operations of the monetary policy of the Bank of Spain», approved by resolution of the Commission Executive of the Bank of Spain on December 11, 1998, the modifications listed below : 1. wording is given to section I of the «introduction»: «I. the European system of central banks (ESCB) includes the European Central Bank ("ECB") and the national central banks of the States members of the European Union. In accordance with article 127 of the Treaty on the functioning of European Union (the "Treaty") and article 2 of the statutes of the ESCB and of the ECB, the objective of the ESCB is to maintain price stability. Without prejudice to this objective, the ESCB will support the general economic policies in the European Union with a view to contributing to the achievement of the objectives of the Union, as set out in article 2 of the referred statutes.

For the purposes of the present general terms and in accordance with paragraph 1 of article 282 of the Treaty, used the term 'Eurosystem' to designate the members of the ESCB elements that carry out its main functions, namely the ECB and the national central banks of the Member States of the European Union that have adopted the single currency in accordance with the Treaty.'

2 the following wording is given to paragraph II of the «introduction»: «II. «Among the basic functions of the Eurosystem, as designated the 127.2 articles of the Treaty and the statutes of the ESCB and of the ECB 3.1de, is the define and implement the monetary policy of the Union.»

3 the following wording is given to number 2 of the General clause II: «2. in particular, the Bank of Spain will be the operations of monetary policy with the entities that meet the following requirements: be a credit institution, or other entity subject to the maintenance of minimum reserves, established in Spain.» An entity is considered established in Spain if you have their headquarters or a branch authorised to operate in Spanish territory.

Be financially solvent and subject to supervision harmonized by the national authorities in the field of the European Union or the European economic area.

Given its special institutional nature in the European Union law, also may be accepted as counterparties entities within the meaning of paragraph 2 of article 123 of the Treaty which are solvents and are subjected to a scrutiny that is comparable to the supervision by the competent national authorities. Solvent entities that are subject to supervision not harmonised by the national authorities, comparable to the monitoring harmonised at the level of the European Union or the European economic area, may also be accepted as counterparties.

Meeting the operational requirements established by the Bank of Spain.

Also, the Bank of Spain will establish minimum requirements to entities for the recruitment of certain categories of monetary policy operations.

Fast auctions and bilateral procedures the Bank of Spain will operate with counterpart entities within its group of counterparties for adjustment operations. However, in a case and other operations can be executed with a broader range of counterparties.

If, for operational reasons, the Bank of Spain could not negotiate with all entities in one or more transactions than those mentioned in the preceding paragraph, the Bank of Spain will follow a rotating shift of call that ensures equitable access between the entities."

4 the following wording is given to the number 3 of the General clause II: «2. in exceptional circumstances, the ECB may perform directly bilateral fit with the entities that had been selected, as well as structural operations.»

The following wording 5 gives the number 5 of the General clause II: «5. the Bank of Spain may share individual information concerning the participation of the entities of a counterpart in the operations of the Eurosystem (i.e. operational data), with the remaining members of the Eurosystem, provided that this is necessary for the implementation of monetary policy. " This information will be subject to the fulfilment of the obligation of professional secrecy, in accordance with article 37 of the Statute of the ESCB and of the ECB."

6 replace the following definitions in number 1.2 of the General clause III: «open market operation: operation executed in financial markets at the initiative of the Bank of Spain. " Taking into account their aims, regularity and procedures, Eurosystem open market operations can be divided into four categories: main refinancing operations, operations of funding over the longer term, adjustment and structural operations. As for the instrument used, temporary operations constitute the main instrument of the Eurosystem and can be used in the four categories mentioned above. In addition, for structural operations the issuance of certificates of debt the ECB or simple operations (purchases or sales), can be used while for the implementation of the operation can be used foreign exchange swaps and the collection of fixed-term deposits.»

«Simple transaction: transaction by which Spain Bank buys or sells cash or long-term assets to maturity in the market.» This type of operation is also the name of operation expiration. In exceptional circumstances, the ECB may carry out simple purchases."

The following wording 7 gives the number 2.3.4 of the General clause III: «structural operations consist of the placement of emissions certificates of debt of the ECB, temporary operations, and simple purchases (purchases or sales).

The procedures for award or, where appropriate, negotiation for this operation mode will be the standard auction for temporary operations and the issuance of certificates of debt of the ECB, and bilateral procedures for the sales firm.

In exceptional circumstances, structural operations can be performed directly by the ECB."

The following wording 8 gives the number 3 of the General clause III: «3. permanent facilities.»

The Bank of Spain may grant permanent facilities to institutions which referred to clause II of these general provisions, subject to the fulfilment of the conditions of access that the Bank of Spain has established.

By Marginal credit facility, the Bank of Spain will provide liquidity a day against the assets of guarantee referred to in the fourth clause of these general terms. Entities will only have Marginal credit facility access day on which TARGET2 is operational and only if you have access to an account at BCN where operation can be liquidated (for example, in the single shared platform for TARGET2). In the days in which the corresponding clearing and securities settlement system is not operating, access to Marginal credit facility shall be granted on the basis of pre-depositados in favour of the corresponding central bank guarantee assets.

In exceptional circumstances, the Bank of Spain may establish limitations or suspend access to Marginal credit facility.

Through the ease of deposit, the Bank of Spain may accept deposits to a day of the entities referred to in clause II of these general provisions. Entities only have access to the deposit facility Marginal day on which TARGET2 is operational and only if you have access to an account at BCN where operation could be liquidated, as in the single shared platform of TARGET2.

In exceptional circumstances, the Bank of Spain may establish limitations or suspend access to the deposit facility.

9 the following wording is given to number 4 of the General clause IV: «4. counterpart entity must provide the Bank of Spain immediately that this request or information that has relevance in relation to transactions covered in the present general terms.»

Counterpart entities must be at all times in situation (i) transfer sufficient eligible assets, or cash, to settle (at the date of settlement), or guarantee, until the expiration of the operation using the corresponding adjustments of the margin, the amount awarded in an auction in a liquidity operation, and (ii) to deliver one sufficient amount of cash to settle the amount that has been awarded to him in one auction in a liquidity-absorbing operation.


In addition, counterpart entities must be at all times in a position to deliver the amount of guarantee or agreed cash assets to settle transactions executed through bilateral operations, or to ensure a pending bilateral operation at any time until maturity by corresponding adjustments of the margin."

10 gives the following wording to the letter b) of the 2.1.1 number of V: General clause «b) preparation and submission of bids by institutions.»

Institutions will make their requests through the terminal connected to the Bank of Spain by the procedures, schedules and date set out in the provisions of TARGET2 - BE.

Requests must be firm, for a minimum amount and multiple of the amount to be determined at each time. Also may be imposed at its discretion an upper limit to the amount «bid» by entity or, where appropriate, a minimum to be awarded individually or a minimum percentage for the award. In addition requests must meet the following conditions: If the auction is a fixed interest rate, the entities will be a single request which only indicate the actual amount.

If the auction is a type of variable interest, entities may be one or more requests, up to a maximum of ten, indicating in each of them the cash amount and the rate of interest that will be expressed to two decimal places. In exceptional circumstances, it may impose a limit on the number of bids submitted. The issuance of ECB debt certificates to absorb liquidity, bids can be expressed in prices, pursuant to the provisions of the rules in respect of the Eurosystem."

11 is given the following wording to the letter e) of number 2.1.1 of the General clause V: 'e) allocation of balances liquidity (d-day) operations.

Institutions must transfer sufficient eligible assets, or cash, to settle (at the date of settlement), or guarantee, until the expiration of the operation using the corresponding adjustments of the margin, the amount awarded in an auction in a liquidity operation, or deliver one sufficient amount of cash to settle the amount that was awarded in an auction in the case of liquidity-absorbing operations.

The allocation will be made according to the following criteria: prices for valuation to be applied to national values in the various operations of monetary regulation public, will be made through the terminal or through the different governing bodies of the markets in which they are negotiated. Prices apply to the foreign values will be obtained through the respective National Central Bank.

In the established schedule, entities should allocate sufficient balances to cover your accepted requests. The requests made at interest rates higher, formalizing only the amount covered each admitted request must be supplemented, firstly.

The entity that does not provide an amount of warranty or sufficient cash assets to support all requests accepted at auctions may be suspended, in accordance with the provisions of the present general terms.»

12 given the following wording to the letter f) of number 2.1.1 of the General clause V: «f) liquidation of operations the next day (D+1 day).

Fees and fertilizers in securities accounts and accounts of the module's payments, which come from the standard auctions open market operations will normally seat the day after the date of recruitment (D+1) on which TARGET2-BE and all compensation and relevant securities settlement systems are operating. However, the issuance of ECB debt certificates is settled on the second day of the hire date (D+2) on which TARGET2-BE and all compensation and relevant securities settlement systems are operating."

13 DG VI occurs the following wording number 1.4 of the clause: "1.4 counterpart entities may not deliver and the Bank of Spain will not accept as collateral assets issued or guaranteed by that entity's compensation or another entity with which it has close ties." For these purposes, means that there are links, when the counterpart institution is linked to an issuer/debtor/guarantor of admissible instrument of any of the following ways: to) the counterpart entity has, directly or indirectly, through one or more companies, 20% or more of the capital of the issuer/debtor/guarantor; or (b) the issuer/debtor/guarantor owns, directly or indirectly, through one or more companies, 20% or more of the capital of the entity's counterpart; or (c) a third party owns more than 20% of the capital of the counterpart institution and more than 20% of the capital of the issuer/debtor/guarantor, either of a directly or indirectly, through one or more companies.

This rule shall not apply in the cases of: to) close ties that exist between the counterpart institution and the entities of the pubic sector of the countries of the European economic area entitled to collect taxes, or in the case in which a debt instrument is guaranteed by an entity of the public sector in the countries of the European economic area that holds this right.

(b) credit institutions securities issued in accordance with the criteria set out in article 52.4 of the directive on the coordination of laws, regulations and administrative provisions on certain bodies for collective investment in transferable securities (UCITS) (directive 2009/65/EC).

((c) cases in which the values are protected by legal safeguards similar to those provided for in subparagraph (b)) above, such as (i) non-negotiable mortgage-backed debt instruments to the retail, which are not securities or (ii) structured covered bonds which have the guarantee of a loan for the acquisition of housing (i.e. certain secured bonds that the European Commission has not declared that they comply with the criteria applicable to UCITS) that they meet all the criteria by the Eurosystem to the securitisation bonds with respect to the criteria of selection of assets and the credit assessment system and that they meet certain additional criteria specified by the Bank of Spain.

«Furthermore, a counterpart institution can not contribute as collateral values from a securitisation if it (or any other third party with which it has close ties) provides: (1) coverage rate securitisation through a hedging transaction completed with the issuer or (2) liquidity support by an amount of 20% or more of the value of the securities from securitization pending maturity ("hedge currency»).»

14 DG VI gives the following wording to the clause number 2.1: «2.1 admissible assets.»

The assets that the Bank of Spain can accept as collateral for its operations are included in the unique setting of collateral (also known as the single list) prepared by the Eurosystem for use in lending operations. This framework consists of negotiable and non-negotiable assets proposed by the national central banks and that meet the common minimum requirements which the Eurosystem makes public. The ECB develops, maintains and publishes a list of eligible marketable assets of warranty, but not for the non-negotiable. The Eurosystem will only release counterpart entities his opinion on the admissibility of an asset as an asset guarantee of the Eurosystem, in the case of marketable assets previously issued or pending maturity non-negotiable assets already provided as collateral. Not be given views on the admissibility of assets prior to their issuance.

The Bank of Spain may accept assets of warranty registered or deposited in other Member States of the monetary European Union, pursuant to the provisions in item 2.2 below.

Guarantee assets, which meet the requirements set out in the present clause VI, will be given by means of broadcasting established by the Bank of Spain, the European Central Bank or national central banks belonging to the Eurosystem.

The Bank of Spain will provide information that is accurate to counterpart entities relating to legal instruments and procedures for the conduct of these operations in each of the Member States of the EMU.

In order to run and monetary policy, in particular for the control of compliance with the rules on the use of eligible assets with regard to the regime of close links, the Eurosystem shares internally information on participation in the capital provided for that purpose the supervisory authorities. Such information is subject to the same rules of confidentiality which apply these authorities supervisory.

The Bank of Spain may at any time give notice exclusion, limitation or suspension of assets that have been previously admitted in the list of collateral. This exclusion is justified by considerations of financial failure. In particular, it may consider the exclusion, limitation or suspension of instruments issued or guaranteed by credit institutions (and those who have close links with the same), when these are expressly excluded, limited or suspended your access to Eurosystem monetary policy operations for reasons of prudence.


In addition, the Bank of Spain, acting in accordance with the rules of the Eurosystem, reserves the right to determine, at any time and on the basis of any information that it deems relevant, if a broadcast, a transmitter, a debtor or a guarantor has / n the level of solvency required according to their forecasts on the assets of collateral for Eurosystem monetary policy operations. As a result of this study, the Bank of Spain may refuse or limit the use of certain assets or additional cuts. These measures may also be applied to consideration of specific entities for prudential reasons and, in particular, if the credit quality of the entity counterpart in question seems to have a high correlation with the credit quality of the assets of guarantee provided by the same. Where the rejection of a particular type of asset or a counterpart institution is based on prudential information, the use of the same is set strictly to the principles of proportionality and of necessity for the fulfilment of the role of the Eurosystem to execute monetary policy.

Also may the Bank of Spain agree, pursuant to the rules on the matter of the Eurosystem, even by urgent procedure, exclusion or suspension of certain assets admitted to the list of collateral, motivated by events that alter the conditions of negotiability or transferability of those notorious and substantially. In addition, may also be excluded from the list of eligible assets, assets issued or guaranteed by entities: (1) subject to mean freezing of funds or other restrictions of use, imposed by the European Union as laid down in article 75 of the Treaty or by a Member State, or (2) in relation to which the Eurosystem has adopted a decision to suspend «, limit or exclude access to its open market operations or permanent facilities.»

15 DG VI is given the following wording to the number 10 of the clause: "10. Limits in relation to the use of simple bonds of credit institutions.

Counterpart entities may only provide as collateral simple bonds issued by a credit institution or any entity with which the credit institution keep close ties in the terms referred to in number 1.4 of the previous clause VI, as the value assigned by the Eurosystem following the implementation of the corresponding cuts to such bonds do not exceed 10% of the total value of the assets of warranty provided by that entity's counterpart after the cuts. This limit shall not apply in the following cases: assets guaranteed by an entity in the public sector with the power to collect taxes; and assets whose value after cuts does not exceed EUR 50 million.

«In case of merger or establishment of links (in the terms referred to above) between two or more simple credit bond issuers, these issuers only shall be regarded as a single group transmitter for the purposes of the present limit only up to one year elapsed since the date the merger or the establishment of close ties.»

16 DG VI gives the following wording to number 11 of the clause: "11. Other risk control measures.

Regardless of the numbers 4, 5, 6, 7, 8 and 10 of this clause VI, other control measures of risks that the Bank of Spain may take, at any time to ensure adequate protection in accordance with article 18 of the statutes of the ESCB and of the ECB, in relation to monetary policy operations are : initial margins applying; the imposition of other quantitative limits to the operating assets of certain issuers or assets against certain debtors or guarantors, other than those applicable to the simple bonds of credit institutions; the application of additional cuts; the requirement of additional guarantees to those required «or the exclusion of certain specific assets or certain counterparts (as shown in the last two indents of the number 2.1 of the present clause VI).»

17 gives the following wording to the letter c) number 1 of the General clause VII: «c) counterpart entity is subject to the freezing of funds and other measures imposed by the European Union in accordance with article 75 of the Treaty, restricting their ability to make use of their funds. "

18 gives the following wording to the letter or) number 2 of the General clause VII: "or) when the counterpart institution being subject to the freezing of funds or other measures imposed by a Member State, that restrict their ability to make use of their funds."

19 the following wording given the number 3.1 of the General clause VII: «3.1 counterpart entity fails to comply with the provisions laid down by the Bank of Spain in relation to auctions and bilateral operations.»

Uniquely, to be considered counterpart entity has failed to fulfil the provisions set out by the Bank of Spain in connection with the auctions when that entity's compensation do not transfer one sufficient amount of guarantee or cash assets (where appropriate in regards to setting the margins) to settle on settlement dates, or to ensure , until the maturity date of the operation using the corresponding adjustments, the amount awarded in a liquidity operation, or if not transferred an amount of sufficient cash to settle the amount awarded in the case of liquidity-absorbing operations.

Likewise, shall be considered, in particular, the counterpart institution has failed to comply the provisions laid down by the Bank of Spain in connection with bilateral operations when that entity's compensation do not transfer one sufficient amount of collateral or one sufficient amount of cash to settle the amount agreed in the operation, or if does not guarantee a pending bilateral operation at any time up to the date of its expiration by adjusting the margins for.'

20 is given the following wording to the numbers 3.3.3 and 3.3.4 of the General clause VII: «3.3.3 when the counterpart institution use to ensure its monetary policy operations not eligible guarantee assets or collateral that are no longer admissible as a guarantee of such operations, in accordance with the rules in has established to effect the Bank of Spain or the Eurosystem. "

3.3.4 when it has provided information that harms the asset value of warranty, as information about the outstanding balance of used claims that proves false or obsolete."

21 the following wording is given the number 4 of clause VIII General: ' the Bank of Spain may exclude, limit or suspend the entity in return for access to the operations of monetary policy (permanent facilities and open market operations) referred the present general terms for reasons of prudence in the event that there is a case of non-compliance referred to in the preceding clause VIII.»

Second. - the modifications contained in the first point above shall apply from the day following the date of publication of the ECB/2010/13 orientation in the official journal of the European Union.

Third. - Approves as this resolution annex a consolidated text of the «applicable general clauses to the operations of the monetary policy of the Bank of Spain"(adopted by resolution of the Executive Committee of 11 December 1998), with the amendments made to them by the resolutions of the said Executive Committee on July 23, 1999 (BOE of 7 August) 26 October 1999 (BOE of 7 December), 10 October 2000 (BOE of 20 December), 19 April 2002 (BOE 29 June), December 23, 2003 (BOE of 5 March 2004), 4 March 2005 (BOE of 19 May), September 20, 2006 (BOE of 28 November), September 21, 2007 (BOE of 14 November) 26 November 2008 (BOE of 3 January 2009), January 22, 2009 (BOE of 3 March), May 21, 2009 (BOE of 3 June) and the present resolution.

Madrid, October 6, 2010.-the Secretary General of the Bank of Spain, José Antonio Alepuz Sánchez.

Annex General provisions applicable to the operations of monetary policy by the Bank of Spain (Consolidated Version) introduction.

I. general legal regime.

II. scope of application.

III. monetary policy operations.

IV. basic conditions of monetary policy operations.

V. procedures for monetary policy operations.

VI. collateral.

VII. alleged non-compliance.

VIII. effects of the cases of non-compliance.

IX. force majeure.

X applicable law and jurisdiction.

XI. place of residence.

XII. amendment.

Introduction.

I. the European system of central banks (ESCB) includes the European Central Bank ("ECB") and the national central banks of the States members of the European Union. In accordance with article 127 of the Treaty on the functioning of European Union (the "Treaty") and article 2 of the statutes of the ESCB and of the ECB, the objective of the ESCB is to maintain price stability. Without prejudice to this objective, the ESCB will support the general economic policies in the European Union with a view to contributing to the achievement of the objectives of the Union, as set out in article 2 of the referred statutes.


For the purposes of the present general terms and in accordance with paragraph 1 of article 282 of the Treaty, used the term "Eurosystem" to designate the members of the ESCB elements that carry out its main functions, i.e. the ECB and the national central banks of the Member States of the European Union that have adopted the single currency in accordance with the Treaty.

II. among the basic functions of the Eurosystem, as designated the 127.2 articles of the Treaty and the statutes of the ESCB and of the ECB 3.1de, is the define and implement the monetary policy of the Union.

III. the ECB, as the guarantor of the fulfilment of the tasks entrusted to the Eurosystem, in accordance with the provisions of the articles of the Treaty referred to in paragraph I above and in articles 12.1 and 14.3 of the Statute of the ESCB and of the ECB, as well as in articles 3.1 first subsection, 18.2 and 20, first paragraph thereof, regulates the instruments and procedures of the Eurosystem monetary policy through the orientation («Guideline») of 31 August 2000 (ECB/2000/7) and its subsequent amendments.

Such orientation and its subsequent amendments contains the principles, instruments, procedures and criteria that the operations of monetary policy among the members of the Eurosystem central banks and their counterpart of monetary policy institutions must conform.

IV. in accordance with article 1.3 of the law 13/1994 of 1 June, autonomy of the Bank of Spain, modified by law 12/1998, of April 28, in the exercise of the functions deriving from its status as an integral part of the Eurosystem, the Bank of Spain shall conform to the guidelines and instructions of the ECB under the provisions of the Treaty and the statutes of the ESCB and of the ECB.

V. Among the listed functions entrusted by law to the Bank of Spain is the participate in the development of the role of the Eurosystem ' define and implement the monetary policy of the Community '.

In the exercise of its functions, the Bank of Spain will be subjected to the consultancy management, unless he acts in the exercise of administrative powers conferred by the law.

VI. in accordance with the foregoing, and in order to establish the general framework that, in accordance with the guideline of the ECB concerned and with the specifics of the financial system and Spanish markets, will have to secure the operations of monetary policy making the Bank of Spain with the enabled entities for this purpose, and pursuant to article 23.1. a) of the law of autonomy of the Bank of Spain (, the Executive Committee, in session from 11 December 1998, has agreed to in accordance with article 66.1. to) of the regulations of the Bank of Spain, approved the «General provisions applicable to monetary policy operations» following: I. general legal regime.

They shall apply to the operations of monetary policy that hires the Bank of Spain, in addition to the provisions of the present general terms: the resolution of 26 November 2008 of the Executive Committee of the Bank of Spain on temporal changes in the eligibility criteria for the assets of guarantee operations of monetary policy of the Bank of Spain and other instructions and provisions issued by the Bank of Spain in this respect.

Regulations, provisions and instructions of the Bank of Spain governing TARGET2-Bank of Spain (hereinafter, TARGET2-BE) as well as the rules governing compensation and corresponding securities settlement systems, in how much they are application by reason of the matter.

Provisions in the contracts that are concluded between the Bank of Spain and monetary policy operations counterpart entities, which conform to the models that the Bank of Spain has approved for the purpose.

II. scope of application.

1. the Bank of Spain will only operate with those entities that comply with these general terms.

Only entities that are subject to the obligation to maintain minimum reserves, in accordance with article 19.1 of the Statute of the ESCB and of the ECB can access the permanent facilities and participate in open market operations through auctions as well as simple operations.

2. in particular, the Bank of Spain will be the operations of monetary policy with the entities that meet the following requirements: be a credit institution, or other entity subject to the maintenance of minimum reserves, established in Spain. An entity is considered established in Spain if you have their headquarters or a branch authorised to operate in Spanish territory.

Be financially solvent and subject to supervision harmonized by the national authorities in the field of the European Union or the European economic area.

Given its special institutional nature in the European Union law, also may be accepted as counterparties entities within the meaning of paragraph 2 of article 123 of the Treaty which are solvents and are subjected to a scrutiny that is comparable to the supervision by the competent national authorities. Solvent entities that are subject to supervision not harmonised by the national authorities, comparable to the monitoring harmonised at the level of the European Union or the European economic area, may also be accepted as counterparties.

Meeting the operational requirements established by the Bank of Spain.

Also, the Bank of Spain will establish minimum requirements to entities for the recruitment of certain categories of monetary policy operations.

Fast auctions and bilateral procedures the Bank of Spain will operate with counterpart entities within its group of counterparties for adjustment operations. However, in a case and other operations can be executed with a broader range of counterparties.

If, for operational reasons, the Bank of Spain could not negotiate with all entities in one or more transactions than those mentioned in the preceding paragraph, the Bank of Spain will follow a rotating shift of call that ensures equitable access among the entities.

3. in exceptional circumstances, the ECB may perform directly bilateral fit with the entities that had been selected, as well as structural operations.

4. the present general terms, shall also apply to the operations of monetary policy by the Bank of Spain when assets of warranty they are deposited or registered outside Spain.

It shall not apply the provisions of the present general terms the activities of the Bank of Spain concerning the creation, administration or enforcement of security over assets deposited or registered in Spain in his capacity as agent or correspondent in operations of monetary policy of the ECB or other belonging to the Eurosystem Central Bank.

5. the Bank of Spain may share individual information concerning the participation of the entities of a counterpart in the operations of the Eurosystem (i.e. operational data), with the remaining members of the Eurosystem, provided that this is necessary for the implementation of monetary policy. This information will be subject to the fulfilment of the obligation of professional secrecy, in accordance with article 37 of the Statute of the ESCB and of the ECB.

III. monetary policy operations.

For the execution of monetary policy operations, the Bank of Spain shall conform to the following principles and rules: 1. General aspects.

(1.1 the Bank of Spain in the exercise of its functions assigned in accordance with paragraph 7th, no. 3, item a) its autonomy law, can carry out open market operations and provide permanent facilities.

Negotiation, formalization and execution of operations relating to the different instruments of monetary policy be held subject to what provided the Bank of Spain, without prejudice to the contractual relations that conform the different operations.

1.2. definitions - in the present general terms are used the terms listed with the meanings assigned to each of them then: open market operation: operation executed in financial markets at the initiative of the Bank of Spain. Taking into account their aims, regularity and procedures, Eurosystem open market operations can be divided into four categories: main refinancing operations, operations of funding over the longer term, adjustment and structural operations. As for the instrument used, temporary operations constitute the main instrument of the Eurosystem and can be used in the four categories mentioned above. In addition, for structural operations the issuance of certificates of debt the ECB or simple operations (purchases or sales), can be used while for the implementation of the operation can be used foreign exchange swaps and the collection of fixed-term deposits.

Temporary operation: operation by which the Bank of Spain buys or sells assets through a double operation or sales with repurchase Pact, or performs operations of credit collateralized.


Simple transaction: transaction by which Spain Bank buys or sells cash or long-term assets to maturity in the market. This type of operation is also the name of operation expiration. In exceptional circumstances, the ECB may carry out simple purchases.

Double operations and sales with repurchase Pact: those whereby the seller sells securities or other assets to the purchaser against payment of a purchase price, while the latter agrees to sell to the first such securities or assets, or their equivalent, against payment of the price of repurchase, on a given date.

En_particular, shall be regarded as double operations and sales with repurchase Pact the following: dual or concurrent, operations referred to in the fifth article, paragraph 2.e). 1st of the «Royal Decree Law 5/2005 of 11 March, urgent reforms to boost productivity and for the improvement of public procurement», consisting of recruitment , at the same time, of two values of opposite direction acquisitions carried out both with identical features and at the same nominal amount values, but with different date of execution. Two purchases that make up a double or simultaneous operation can be both cash, both in the term, or the first spot and the second term.

Purchases with Covenant of buybacks that they are regulated in the fifth article, paragraph 2.e). 2 ° of the Royal Decree Law 5/2005 of 11 March, in which the holder of the securities sold them until the redemption date, agreeing at the same time repurchase values of identical characteristics and of equal nominal value, on a date certain and intermediate between sale and the next repayment , although this is voluntary or partial.

Loans, or loans with collateral: financing transactions with the coverage of collateral on assets of guarantee accepted by the Bank of Spain.

Foreign exchange swaps: transactions in cash and concurrent term of one currency against another. The Bank of Spain will carry out operations of monetary market opened in the form of foreign exchange Swaps when you buy (or sell) euro cash in Exchange for a currency and, at the same time, sell them (or buy them) term.

Fixed-term deposit: deposit of cash consisting in the Bank of Spain by an entity a term and remuneration fixed, and that it may be made in the Bank of Spain.

Marginal credit facility: permanent facility from the Bank of Spain that entities that act as compensation can be used to receive credit for a day at a rate previously specified.

Deposit facility: one of the permanent facilities of the Bank of Spain that entities that act as counterpart may use to make overnight deposits remunerated at a rate previously specified.

Standard auction: auction procedures that uses the Bank of Spain in its regular open market operations. Standard auctions are made within a 24 hour period. All counterpart entities which meet the general criteria of selection are enabled to make bids on these auctions.

Quick auction: auction procedure used by the Bank of Spain mainly for adjustment operations, when it is considered desirable to produce a rapid effect on the market situation. Fast auctions are normally carried out within a period of 90 minutes and are restricted to a limited set of counterparties.

Bilateral procedure: procedure by which the Bank of Spain is directly usually with only one or a few entities counterpart, without making use of auction procedures. Bilateral procedures include operations executed through stock exchanges or market agents.

Market adjusted value: in respect of any temporary operation, is the market value of the assets object of hiring inferred any cut, percentage or amount established by the Bank of Spain in its forecasts on valuation of collateral for monetary policy operations.

2. open market operations.

2.1. open market operations may take the form of temporary operations, purchase and sell Simple maturity, Currency Swaps and taking fixed-term deposits.

Procedures for conducting open market operations may be: standard auctions, quick auctions or bilateral procedures.

According to their aims, regularity and procedures, the open market operations may be main refinancing operations, operations of funding over the longer term, adjustment and structural operations.

2.2. temporary operations formalised by the Bank of Spain may run through operations double and sales with repurchase Pact, either through loans or loans with collateral.

2.3. kinds of open market operations.

2.3.1 main operations financing. - are regular injection of liquidity, often temporary operations weekly and, usually, due to a week. The procedure of execution will be the standard auction.

2.3.2 operations of funding over the longer term. - are temporary operations for additional injection of liquidity, frequency monthly and, usually, due to three months. They will run through standard auction.

2.3.3 maintenance adjustment - setting operations are intended to regulate the liquidity situation in the market and control the interest rates, in particular to smooth the effects caused by unexpected fluctuations of liquidity into the market on interest rates. These tuning operations to run the last day of a minimum reserve maintenance period in order to counteract imbalances of liquidity which may have accumulated since the last main operation of funding awarded.

Such operation will be implemented primarily through temporary operations, but may also take the form of Swaps and foreign currency deposits attracting fixed-term.

The procedures for award or, where appropriate, negotiation of the tuning operations may be quick auction or bilateral interventions, in accordance with the instructions of the Bank of Spain.

In exceptional circumstances, the bilateral operations of adjustment can be performed directly by the ECB.

2.3.4 operations structural. - structural operations consist of the placement of emissions certificates of debt of the ECB, temporary operations, and simple purchases (purchases or sales).

The procedures for award or, where appropriate, negotiation for this operation mode will be the standard auction for temporary operations and the issuance of certificates of debt of the ECB, and bilateral procedures for the sales firm.

In exceptional circumstances, structural operations can be performed directly by the ECB.

3. permanent facilities.

The Bank of Spain may grant permanent facilities to institutions which referred to clause II of these general provisions, subject to the fulfilment of the conditions of access that the Bank of Spain has established.

By Marginal credit facility, the Bank of Spain will provide liquidity a day against the assets of guarantee referred to in the fourth clause of these general terms. Entities will only have Marginal credit facility access day on which TARGET2 is operational and only if you have access to an account at BCN where operation can be liquidated (for example, in the single shared platform for TARGET2). In the days in which the corresponding clearing and securities settlement system is not operating, access to Marginal credit facility shall be granted on the basis of pre-depositados in favour of the corresponding central bank guarantee assets.

In exceptional circumstances, the Bank of Spain may establish limitations or suspend access to Marginal credit facility.

Through the ease of deposit, the Bank of Spain may accept deposits to a day of the entities referred to in clause II of these general provisions. Entities only have access to the deposit facility Marginal day on which TARGET2 is operational and only if you have access to an account at BCN where operation could be liquidated, as in the single shared platform of TARGET2.

In exceptional circumstances, the Bank of Spain may establish limitations or suspend access to the deposit facility.

4 ease of deposit and fixed-term deposits.

Deposit operations to fixed-term and ease of deposit referred to in the previous number 3 shall comply with the following: 1 the Bank of Spain, as a member of interbank deposits market, will receive fixed-term deposits and will offer deposit facilities in accordance with the present general terms and with the same instructions.

2nd deposits related to monetary policy operations will always be non-transferable and are formalized according to the specifications of TARGET2-BE.

IV. basic conditions of monetary policy operations.


1. the basic conditions in accordance with which there will be auctions or negotiate operations, patterns of recruitment and formalization, procedures for the settlement of operations as well as the criteria for admission and valuation of the assets of warranty and control measures of risk for each of the instruments of monetary policy, will be those who established the Bank of Spain in accordance with the orientation of the ECB of 31 August 2000 and provisions that alter it, and with the present general terms, without other limitations than that derived from the regulation of the markets organised in that are negotiated and settled in his case operations, depending on the nature of the active negotiated or used legal business.

2. in no case the conditions or general clauses that an entity proposed in relation to a monetary policy operation will be accepted.

3. operations are formalized according to the technical procedures available to them the Bank of Spain and with what is established in appropriate contractual instruments that are applicable.

4. the counterpart institution must provide the Bank of Spain immediately that this request or information that has relevance in relation to transactions covered in the present general terms.

Counterpart entities must be at all times in situation (i) transfer sufficient eligible assets, or cash, to settle (at the date of settlement), or guarantee, until the expiration of the operation using the corresponding adjustments of the margin, the amount awarded in an auction in a liquidity operation, and (ii) to deliver one sufficient amount of cash to settle the amount that has been awarded to him in one auction in a liquidity-absorbing operation.

In addition, counterpart entities must be at all times in a position to deliver the amount of guarantee or agreed cash assets to settle transactions executed through bilateral operations, or to ensure a pending bilateral operation at any time until maturity by corresponding adjustments of the margin.

5. the rights and obligations of counterpart entities arising from the operations of monetary policy which have concluded with the Bank of Spain may not be transferred, pledged or negotiated by these entities of counterpart without the prior consent in writing of the Bank of Spain.

6. the Bank of Spain will liquidate the operations referred to in the present general terms in euros, except for payments relating to operations Swaps of currencies which, if any, should be made in another currency.

7. the counterpart institution undertakes to notify any variation in the powers of representation which have been granted in relation to these general terms or with monetary policy operations agreed under its coverage by letter with return receipt to the Bank of Spain.

The violation of provisions of this number 7 will mean that counterpart entity will be forced against the Bank of Spain by the signature of any assignee or person empowered for which counterpart entity would have omitted the notification indicated, and may not invoke the revocation or reduction of seizure although this was valid in law until the Bank of Spain has received timely notification.

V. procedures for monetary policy operations.

1 active warranty. - all operations mentioned in clause III, credit or financing must implement supported by admissible guarantees by all the national central banks, members of the European Monetary Union, in the terms of the following clause VI.

Be used as assets of open market operations and Marginal ease of credit guarantee, the values accepted as collateral for these operations the Eurosystem.

2. procedures of permanent facilities and open market operations, 2.1 procedures in the operations of market open. - procedures for conducting open market operations may be: standard auctions, quick auctions or bilateral procedures.

Both standard auctions and quick auctions may be at fixed as a variable interest rate interest rate. In a fixed rate tender, be previously specified interest rate. Entities talented the amount of money that wish to negotiate at that fixed rate. In an auction at variable interest rate, entities expressed, for each 'puja', the amount of money and the interest rate which they want to conduct the transaction.

By the way of awarding, auctions to variable interest rate may be «Dutch auctions» and «American auctions». In awarding a single type ("Dutch auction"), the interest rate, price or quote Swap applied for all satisfied bids is equal to the rate of interest, price or quote marginal Swap. In the award to multiple types ("American auction»), the interest rate, price or quote Swap will be equal to the offered in each individual bid.

2.1.1 standard auctions.

a) announcement of the auction (day D - 1).-the day before the resolution of auctions, will be announced publicly the characteristics through the usual means.

(b) preparation and submission of bids by the entities. - entities will make their requests through the terminal connected to the Bank of Spain by the procedures, schedules and date set out in the provisions of TARGET2 - BE.

Requests must be firm, for a minimum amount and multiple of the amount to be determined at each time. Also may be imposed at its discretion an upper limit to the amount «bid» by entity or, where appropriate, a minimum to be awarded individually or a minimum percentage for the award. In addition requests must meet the following conditions: If the auction is a fixed interest rate, the entities will be a single request which only indicate the actual amount.

If the auction is a type of variable interest, entities may be one or more requests, up to a maximum of ten, indicating in each of them the cash amount and the rate of interest that will be expressed to two decimal places. In exceptional circumstances, it may impose a limit on the number of bids submitted. The issuance of ECB debt certificates to absorb liquidity, bids can be expressed in prices, pursuant to the provisions of the rules in respect of the Eurosystem.

(c) procedures for awarding in auctions (d-day).

C1 operations of euros. fixed rate tender - joins the bids received from entities and, if the sum exceeds the total amount that is awarded, will be an apportionment. In this case, a minimum quantity may award each participating entity.

C2 operations of auction rate in euros. - liquidity auctions, bids are sorted of consecutively by offered interest rates. With the highest bids will be satisfied with priority. Bids with lower interest rates, will be accepted on until it runs out the total amount that has to win. If at the lowest accepted level (rate) the amount pujada by the entity set exceeds the volume remaining by award, this will be prorated between the bids at the marginal rate.

The award of drainage of liquidity auctions bids relate in order of offered interest rates (or in descending order of price). The bids with the lowest (highest price) interest rates level are satisfied with priority and bids with higher interest (lower prices), are accepted on until it runs the total amount that drained. If accepted level higher interest rate (lowest price), the amount pujada by the entity set exceeds the volume remaining by award, this will be prorated between the bids at the marginal rate.

In case of apportionment, a minimum amount may be established to be allocated to each participating entity, with at least one accepted bid.

«American» auctions, accepted requests will be awarded at the requested rate. «Dutch» auctions, all requests accepted will be awarded at the marginal rate.

(d) announcement of results (day D).-the Bank of Spain communicated the resolution of the auction by the usual channels. In addition the Bank of Spain through the terminal communicate directly the individual results of the award to all entities that have submitted bids.

(e) allocation of balances liquidity (d-day) operations.-entities must transfer sufficient eligible assets or cash to settle (at the date of settlement), or guarantee, until the expiration of the operation using the corresponding adjustments of the margin, the amount awarded in an auction in a liquidity injection operation , or deliver one sufficient amount of cash to settle the amount that was awarded in an auction in the case of liquidity-absorbing operations.

The allocation shall be made in accordance with the following criteria:


Prices for valuation to be applied to national values in the various operations of monetary regulation public, will be done through the terminal or through the different governing bodies of the markets in which they are negotiated. Prices apply to the foreign values will be obtained through the respective National Central Bank.

In the established schedule, entities should allocate sufficient balances to cover your accepted requests. The requests made at interest rates higher, formalizing only the amount covered each admitted request must be supplemented, firstly.

The entity that does not provide an amount of warranty or sufficient cash assets to support all requests accepted at auctions may be suspended, in accordance with the provisions of the present general terms.

(f) settlement the next day (D+1 day).-fees and fertilizers in securities accounts and accounts of the module's payments, which come from the standard auctions open market operations will seat the day after the date of recruitment (D+1) on which TARGET2-BE and all compensation and relevant securities settlement systems are operating normally. However, the issuance of ECB debt certificates is settled on the second day of the hire date (D+2) on which TARGET2-BE and all compensation and relevant securities settlement systems are operating.

2.1.2 auctions faster. - fast auction procedures are identical to the auctions standard except in what refers to its temporal development and the small number of entities that will act as a counterpart.

a) announcement of the auction - in adjustment operations auctions call should normally be made public in advance, except for exceptional situations considered in accordance with the rules of the Eurosystem.

Fast auctions announcement will follow the same procedures as in standard auctions. In the case that quick auctions are not publicly announced beforehand, the Bank of Spain will be contacted directly with counterpart entities selected for this type of operation. In the course of that are publicly announced the Bank of Spain also can be directly cited selected entities.

(b) preparation and submission of bids by the entities. - entities will make their requests through the terminal connected to the Bank of Spain.

Requests will be firm and must comply with the terms set out in the paragraph 2.1.1 number b) previous to that regulates standard auctions. In the case of foreign exchange to tipo-variable Swaps auctions, bids will be made in "swap points", which may be to award or discount on the price of currency/Euro.

(c) procedures for the award in the auction. - procedures for the award in the auctions to fixed rate and variable rate in euros are identical to those listed for standard auctions.

Foreign Exchange fixed-rate Swaps auctions will be awarded by the procedure established for the fixed euro rate tenders.

In the allocation of foreign exchange Swaps auctions variable rate to inject liquidity, bids are sorted increasingly sought-after prize levels. The bids with the lowest Swap quote will be satisfied with priority and higher Swap quotes will be accepted on, until it runs out the total amount of the fixed currency that has to be. If, for the quote accepted higher Swap, pujada by the entity set quantity exceeds the volume remaining by awarding, this will be prorated between the bids made to such trading. In the allocation of foreign exchange Swaps auctions variable rate to drain liquidity, bids are sorted descending form of sought-after prize levels. The bids with the highest Swap quote will be satisfied with priority, and lower Swap quotes will be accepted on, until it runs out the total amount of the fixed currency that drained. If, for the quote accepted lower Swap, pujada by the entity set quantity exceeds the volume remaining by awarding, this will be prorated between the bids at the marginal.

«American» auctions of Swaps, accepted requests will be awarded to the requested Swap trading. «Dutch» auctions, all requests accepted will be awarded to the last accepted contribution.

(d) announcement of the results. - the announcement of the results of quick auctions will be just as in standard auctions.

(e) allocation of balances in the operations of injection. - allocation will be made according to the procedure described in standard auctions. The entities designated through the terminal connected to the Bank of Spain, the values to submit for each request accepted by double operations or sales with repurchase, Pact and what amount of request will be covered with a loan or credit with guarantee of pledged securities.

(f) liquidation of operations. - fees and fertilizers in securities accounts and the accounts of the payments module will seat the same day of the resolution of the auction, as it is established in the rules and instructions for the corresponding clearing and securities settlement system and TARGET2-BE that regulate this matter. The Bank of Spain may decide to occasionally apply other dates of settlement for these operations, in particular in operations to maturity and currency Swaps.

2.1.3 operations bilateral. - normally these operations not be announced publicly. The Bank of Spain will be contacted directly with one or more entities of the selected and decide at that time if you perform operations with these entities. However, the Bank of Spain may, also perform simple operations through bags or stock exchanges and market agents. In these cases, the set of counterparties is not restricted a priori and procedures adapted to the conventions of the market where negotiated debt instruments subjected to operations.

The results of bilateral operations may not be announced publicly, in accordance with the provisions in respect of the Eurosystem.

The remaining operational aspects such as allocation of temporary injection, liquidation of operations operations, balances will be carried out following the procedures established in quick auctions.

2.2 procedures in permanent facilities.

2.2.1 facility Marginal credit. - the interest rate is announced in advance by the Bank of Spain, and it may be modified at any time, unless it takes effect before the next business day.

The entities will have access to this facility, and shall indicate the amount required by the procedures, schedules and date set out in the provisions of TARGET2-BE.

In principle there is no limit to the amount of funds that may provide with Marginal credit facility, however in exceptional circumstances it may limit or suspend access to an entity.

The remaining operational aspects such as allocation of balances, settlement, will be carried out according to the procedures established in quick auctions.

2.2.2 ease of deposit. - the interest rate is announced in advance, and it may be modified at any time, unless it takes effect before the next business day.

The entities will have access to this facility, and must indicate the amount to be deposited, the procedures, timetable and date set out in the provisions of TARGET2-BE.

VI. collateral.

1. General aspects.

1.1. the criteria for selection of assets and risk-control measures will be those who established the Bank of Spain by means of the corresponding decisions that will be made known to the counterpart institution advance.

1.2. the Bank of Spain will require the adequate coverage of the risks arising from the monetary policy that concert and the funding they provide to settlement systems through the contribution of collateral assets that meet the technical and legal specifications that communicate the Bank of Spain.

1.3. the assets suitable for his contribution as collateral for the financing of settlement systems and monetary policy operations will be announced pursuant to the media established by the latter or by the Eurosystem. These assets are the only ones that the Bank of Spain will support warranty.

1.4 counterpart entities may not deliver and the Bank of Spain will not accept as collateral assets issued or guaranteed by that entity's compensation or another entity with which it has close ties. For these purposes, means that there are links, when the counterpart institution is linked to an issuer/debtor/guarantor of admissible instrument of any of the following forms: d) counterpart entity has, directly or indirectly, through one or more companies, 20% or more of the capital of the issuer/debtor/guarantor; (or e) the issuer/debtor/guarantor owns, directly or indirectly, through one or more companies, 20% or more of the capital of the entity's counterpart; or (f) a third party owns more than 20% of the capital of the counterpart institution and more than 20% of the capital of the issuer/debtor/guarantor, either of a directly or indirectly, through one or more companies.

This rule does not apply in the cases of:


(d) the close links that exist between the counterpart institution and the entities of the pubic sector of the countries of the European economic area entitled to collect taxes, or in the case in which a debt instrument is guaranteed by an entity of the public sector in the countries of the European economic area that holds this right.

(e) credit institutions securities issued in accordance with the criteria set out in article 52.4 of the directive on the coordination of laws, regulations and administrative provisions on certain bodies for collective investment in transferable securities (UCITS) (directive 2009/65/EC).

f) cases in which the values are protected by legal safeguards similar to those provided for in subparagraph (b)) above, such as (i) non-negotiable mortgage-backed debt instruments to the retail, which are not securities or (ii) structured covered bonds which have the guarantee of a loan for the acquisition of housing (i.e. certain secured bonds that the European Commission has not declared that they comply with the criteria applicable to UCITS) that they meet all the criteria by the Eurosystem to the securitisation bonds with respect to the criteria of selection of assets and the credit assessment system and that they meet certain additional criteria specified by the Bank of Spain.

In addition, a counterpart institution can not contribute as a guarantee securities from a securitisation if it (or any other third party with which it has close ties) provides: (1) coverage rate securitisation through a hedging transaction completed with the issuer or (2) liquidity support by an amount of 20% or more of the value of the securities from securitization pending maturity ("hedge currency»).

2. conditions relating to the admission of collateral in monetary policy operations.

2.1 active eligible. - assets that the Bank of Spain can accept as collateral for its operations are included in the unique setting of collateral (also known as the single list) prepared by the Eurosystem for use in lending operations. This framework consists of negotiable and non-negotiable assets proposed by the national central banks and that meet the common minimum requirements which the Eurosystem makes public. The ECB develops, maintains and publishes a list of eligible marketable assets of warranty, but not for the non-negotiable. The Eurosystem will only release counterpart entities his opinion on the admissibility of an asset as an asset guarantee of the Eurosystem, in the case of marketable assets previously issued or pending maturity non-negotiable assets already provided as collateral. Not be given views on the admissibility of assets prior to their issuance.

The Bank of Spain may accept assets of warranty registered or deposited in other Member States of the monetary European Union, pursuant to the provisions in item 2.2 below.

Guarantee assets, which meet the requirements set out in the present clause VI, will be given by means of broadcasting established by the Bank of Spain, the European Central Bank or national central banks belonging to the Eurosystem.

The Bank of Spain will provide information that is accurate to counterpart entities relating to legal instruments and procedures for the conduct of these operations in each of the Member States of the EMU.

In order to run and monetary policy, in particular for the control of compliance with the rules on the use of eligible assets with regard to the regime of close links, the Eurosystem shares internally information on participation in the capital provided for that purpose the supervisory authorities. Such information is subject to the same rules of confidentiality which apply these authorities supervisory.

The Bank of Spain may at any time give notice exclusion, limitation or suspension of assets that have been previously admitted in the list of collateral. This exclusion is justified by considerations of financial failure. In particular, it may consider the exclusion, limitation or suspension of instruments issued or guaranteed by credit institutions (and those who have close links with the same), when these are expressly excluded, limited or suspended your access to Eurosystem monetary policy operations for reasons of prudence.

In addition, the Bank of Spain, acting in accordance with the rules of the Eurosystem, reserves the right to determine, at any time and on the basis of any information that it deems relevant, if a broadcast, a transmitter, a debtor or a guarantor has / n the level of solvency required according to their forecasts on the assets of collateral for Eurosystem monetary policy operations. As a result of this study, the Bank of Spain may refuse or limit the use of certain assets or additional cuts. These measures may also be applied to consideration of specific entities for prudential reasons and, in particular, if the credit quality of the entity counterpart in question seems to have a high correlation with the credit quality of the assets of guarantee provided by the same. Where the rejection of a particular type of asset or a counterpart institution is based on prudential information, the use of the same is set strictly to the principles of proportionality and of necessity for the fulfilment of the role of the Eurosystem to execute monetary policy.

Also may the Bank of Spain agree, pursuant to the rules on the matter of the Eurosystem, even by urgent procedure, exclusion or suspension of certain assets admitted to the list of collateral, motivated by events that alter the conditions of negotiability or transferability of those notorious and substantially. In addition, may also be excluded from the list of eligible assets, assets issued or guaranteed by entities: (1) subject to mean freezing of funds or other restrictions of use, imposed by the European Union as laid down in article 75 of the Treaty or by a Member State, or (2) in relation to which the Eurosystem has adopted a decision to suspend limit or exclude access to its open market operations or to permanent facilities.

2.2 acceptance in guarantee of negotiable assets located outside Spain.

2.2.1. the Bank of Spain may accept collateral securities or other negotiable assets registered or deposited on behalf or on behalf of the entity's counterpart with a centralized clearing and settlement of securities that meets the following conditions: operating in another State of the European Union.

Be qualified for the clearing and settlement of securities for the Eurosystem monetary policy operations.

The counterpart entity will not propose, nor the Bank of Spain is obliged to accept as collateral securities or assets which are not its property or the guarantor, or that are not free of all locks, condition or load.

In relation to the Constitution of guarantees on these values or negotiable assets, the Central Bank of the Member State in which operate the centralized system for clearing and settlement values corresponding (in later «Correspondent Central Bank») will intervene by account and, where appropriate, on behalf of the Bank of Spain under the existing arrangements for the cross-border use of collateral in the Eurosystem.

The rules that shall be governed by the Constitution, execution and release of guarantees on the values referred to in this item 2.2 shall be, except those relating to capacity and representation of counterpart entities, those applicable in the State in which it operates the centralized system for clearing and settlement values corresponding.

2.2.2. Likewise, the cross-border use of guarantees assets may be through the links existing between the different systems of clearing and settlement of securities of the Eurosystem.

2.3 update of the assets contained in the list of assets of warranty. - the contents of the list of collateral will be updated daily. It may include securities whose issuance is planned for the next few days.

3. legal regime of the collateral security.

3.1 securities and assets located in Spain. - eligible as collateral for operations located in Spain values may be pledged in the Bank of Spain, either be subject to transmission by means of purchase (single, double, or Covenant of repurchase), in accordance with the procedures approved for each case. These procedures will be detailed in the corresponding application techniques.

3.2. non-negotiable assets located in Spain. - proceedings relating to the Constitution, non-negotiable execution and release of guarantees on assets located in Spain will be determined by the Bank of Spain, which will be given to counterpart institutions.

3.3. negotiable assets located abroad.


3.3.1. Constitution of guarantees by the model of correspondent. - in the case of the values referred to in this paragraph, the warranty shall constitute according to the procedures, requirements and formalities that are required in accordance with the rules applicable to the market, registration or central depository in which they are negotiated, deposited or registered.

For the lodging of the security pursuant to the provisions of the preceding paragraph, it will intervene as correspondent (representative) and/or custodian of the Bank of Spain the National Central Bank which is required for him to act as such, as set out in the provisions of the Eurosystem.

Also, for this purpose, the counterpart institution undertakes to: 1. transmit ownership and/or possession of values object of the guarantee to the Bank of Spain, either by the transfer of such securities from the account of the accredited or the guarantor as appropriate, to the account indicated the Bank Central correspondent, either through the procedure as , in his case, is according to the legislation of the country where the values are negotiated, deposited or registered.

2 make the notifications, grant powers, make such orders and carry out the formalities and acts which are necessary for perfection, validity, enforceability and enforceability of warranties pursuant to the laws of the country where values are negotiated or are deposited or registered with the Spanish State.

Once done the transfer of property, possession, or of both, the securities pursuant to the provisions of the preceding paragraph the correspondent Central Bank shall constitute a warranty pursuant to the legislation of the State in which the values are negotiated, deposited or registered.

When the Bank of Spain receives notice of the correspondent Central Bank confirming that the guarantee is valid mandatory and enforceable pursuant to the law of the place where the values negotiated, registered or deposited are, it shall be paid to the accredited the amount of guaranteed funding.

Characteristics of the cross-border use by the Bank of Spain of localized overseas assets derived from the specific legal form of formalization will be reflected in your case in the contractual documents which subscribes the entity's counterpart with the Bank of Spain.

3.3.2 release of the guarantees constituted by the model of correspondent. - to proceed with the release of the guarantees referred to in item 2.2 of this clause VI, the counterpart institution undertakes to carry out any act, and provide any documents necessary or convenient in your case.

3.3.3. rules applicable to the active object's link between the various systems of clearing and settlement of securities. - in the case of the values referred to in this paragraph, the warranty shall constitute according to the procedures, requirements and formalities which are set out in section 3.1.

For the lodging of the security pursuant to the provisions of the preceding paragraph, it will intervene as contracting Bank of Spain with the entity counterpart that provide such security, as long as the values registered in a central depositary duly authorized.

3.4. non-negotiable assets located outside Spain. - without prejudice, where applicable, in compliance with the administrative requirements in accordance with Spanish legislation, the use as a guarantee of non-negotiable assets proposed by other national central banks shall be governed in terms of its Constitution, execution and release by the provisions that communicate the National Central Bank which had proposed the inclusion in the list of the corresponding asset to the effect which will be put at the disposal of the counterpart institution by the Bank of Spain.

4 assessment of warranty assets located in Spain. - the principles of valuation and use of cuts and margins that are regulated in the numbers 4, 5, 6, 7 and 8 of this clause VI shall apply irrespective of the modality of involvement in used warranty.

Collateral assets, regardless of the market or markets in which are negotiable and the type or class of operation intended to which will be valued in accordance with the following criteria: 4.1 fixed-income securities.

4.1.1. the valuation of guarantees shall apply on a particular day, will take place using the market price of the last preceding business day, considering as such price average engagements day or closing price, as appropriate for the market in question. In the case of impossibility of having the prices indicated, applies to the valuations of the assets equal type of prices, corresponding to the working day immediately preceding.

4.1.2. the used price will be ex-cupon in the case of this publication, making the calculation and addition of the corrido coupon corresponding to the value date of operations that hires the Bank of Spain, as necessary, in accordance with the specific rules established by each market. If the reference price coupon, will adjust this according to its theoretical value at the date of settlement of such transactions.

4.1.3. of not registering market operations on the days specified in paragraphs 4.1.1 and 4.1.2, a market price approximately according to the internal performance of the annotated public debt, or other similar securities denominated in euros, which have general acceptance in the markets for the purposes of the calculation of specific indexes of internal performance for its high degree of liquidity will be calculated. When the governing body of an official secondary market have approved and published procedures for the calculation of prices, similar to the designated, are these those used.

4.2. other assets. - where the eligible collateral assets have no recordable quote in any market, will be fixed appropriate valuation rules, which will be given to counterpart institutions by the Bank of Spain by means of corresponding applications techniques.

4.3 revision of the valuation of guarantees. - the market values calculated according to the criteria set out in paragraphs 4.1 and 4.2 above, shall be reviewed periodically using the same rules.

5. risk control measures - the Bank of Spain will apply provided collateral assets control measures of risks at each time be established, in order to cover themselves against the risk from possible financial losses that will cause him if such guarantees had to be executed due to a breach of the counterpart institution. The Eurosystem applies risk control measures according to the types of assets of guarantee offered by counterpart institutions. The ECB determines the risk control measures for guarantee assets negotiable and non-negotiable. The risk control measures are widely harmonized in the euro area and guarantee conditions transparent, non-discriminatory and consistent for each type of asset. The application of risk control measures shall be governed by provisions of the available additional sixth of the law 13/1994 of 1 June, autonomy of the Bank of Spain.

The Eurosystem reserves the right to apply additional risk control measures, in the event that they are required to ensure adequate protection for the same, in accordance with article 18 of the statutes of the ESCB and of the ECB. These control measures of risks, which must be implemented in a consistent, transparent and non-discriminatory manner, may be applied also at the level of individual counterpart entities whenever this is necessary to ensure such protection.

Control measures of risks that the Bank of Spain are the following: cuts to the valuation of the assets.

Adjustments for valuation or variation margins.

Limits in relation to the use of simple bonds of credit institutions.

6 cut the valuation of guarantees in Spain.

6.1 the Bank of Spain apply a cut to guarantee assets price to determine the amount that guarantee such assets, which will be a percentage on it.

6.2 cuts apply, depending on the type of assets provided under warranty, will be those who have expected the Bank of Spain, being the remaining life of the asset of guarantee the main factor considered for purposes of establishing the cuts.

6.3 applicable cuts will be given by the Bank of Spain counterpart by application entities.

7. «evaluation», «margins», «cut» and other control measures of risk for assets located abroad.

7.1 as regards warranty assets located abroad, usable through the correspondent model, will be assessed in accordance with the price to communicate for each asset the Central Bank that suggested the inclusion of the assets concerned.

Margins, cuts and other measures of risk control applicable to guarantees on securities or other assets, when they are located outside Spain, and be usable through the correspondent model, will be that set in this regard the correspondent Central Bank. These values and designated assets risk control measures will be made known to the counterpart institution and applied by the Bank of Spain.


7.2. where assets are usable through links between systems of clearing and settlement of the Eurosystem, the criteria of valuation of the same values, margins, cuts and other applicable risk control measures shall be determined in accordance with the procedures laid down in sections 4, 5, 6 and 8 of this clause.

8 adjustments for valuation of guarantees (variation margin).-the Bank of Spain will require entities providing greater guarantees where the revision of its current value, after deducting the cuts, is a lower Stud needed to ensure the existing operations. In the same way, it shall be released or will institutions provide excess which in certain cases may result from an upward revision.

This requirement and guarantees callback system will be governed by the rules that are listed in the corresponding application technique.

8.1 pledged securities.

8.1.1 the Bank of Spain will periodically verify that the value of market adjusted calculated for the whole of pledged assets provides sufficient coverage to the whole of secured transactions, including interest on corridos them and applied the initial margin (where the latter exists).

8.1.2 If the value of market adjusted total of the guarantees, in the terms indicated in the previous number 8.1.1, is insufficient, the entity affected by that circumstance, should provide new values in form, warranty on the same date that these new full cash value, once applied the corresponding cuts, guarantees the amount of all operations.

8.1.3. Alternatively, the entity may make necessary coverage through contribution of cash, which will be charged to your account.

Cash load will be determined at any time in accordance with established rules for the risk control framework for Eurosystem, which will be made known and applied by the Bank of Spain. The calculation procedures applicable to this effect are detailed in the corresponding application technique.

8.1.4 in otherwise, automatically, be reduced the limits of the granted financing, without prejudice to clause VII of these «general provisions».

8.1.5 where the value of market adjustment of guarantees present an increase with respect to the calculated in the previous review, the Bank of Spain will pay account which will indicate the accredited corresponding cash, provided that the contribution of cash was previously required by application of valuation on the same operations settings. In any case, shall be the return of cash said, charged by the Bank of Spain, when the cancellation of living credit operations.

If the Bank of Spain not paid to the accredited the quantity laid down in the preceding paragraph ‑por have not produced earlier cash contributions by the guarantor and/or accredited, adjustments as a result of valuation differences precedents on the same operaciones‑ the excess of assets will be available to the entity, which may be removed or request the granting of additional funding in accordance with the provisions of these general terms.

8.1.6 the Bank of Spain may establish a threshold of replenishment of guarantees. The replacement threshold will act as a lower limit for purposes of application of the differences in valuation adjustments, so that if the value of market-adjusted the guarantees after the review is greater than this threshold of replenishment, contribution of new guarantees shall not be required. These thresholds will be announced by the Bank of Spain counterpart by application entities.

8.2 values object of sale through double operations and sales with repurchase Pact.

8.2.1. these values are assigned individually to each operation and are the subject of the sales through which funding is provided.

8.2.2. the Bank of Spain daily calculated the value of market values adjusted object of sale in each temporary operation of liquidity according to the standards detailed in the numbers 4, 5, 6 and 7 of this clause.

8.2.3. If the value of market adjusted retrieved for the active object of a specific transaction was insufficient for coverage of cash initially injected, including accrued interest and applied the initial margin (where there), the entity should provide effective in sufficient quantity to cover the difference between the two. Cash said will be charged on the account of the entity payments module.

Cash load will be determined at any time in accordance with established rules for the risk control framework for Eurosystem, which will be made known and applied by the Bank of Spain. The calculation procedures applicable to this effect are detailed in the corresponding application technique.

8.2.4. in a similar way, if the value of market-adjusted assets was greater than necessary to cover the amount owed, more accrued interest and the initial margin (where there), the Bank of Spain shall be paid to the entity in your account an amount equal to the excess, provided that the excess was above the threshold established in this regard in accordance with provisions in a number 8.2.6 of this clause.

The cash to pay will be determined at any time in accordance with established rules for the risk control framework for Eurosystem, which will be made known and applied by the Bank of Spain. The calculation procedures applicable to this effect will be detailed in the corresponding application technique.

8.2.5 every date that review of the value of market-adjusted assets subject to variation with respect to the previously calculated this transaction, the Bank of Spain will proceed, as appropriate, taking into account, where appropriate, the established thresholds, to the credit or debit in the account of the entity of the resulting cash, calculated by difference. In any case shall be the return of the cash received by adjustments or recovery from the facilitated by these settings when cancellation of each operation of this nature, in accordance with the agreed terms.

8.2.6. the Bank of Spain may establish a threshold of liquidation of valuation adjustments. This threshold will act as an upper and lower limit or threshold for the purpose of determining the application of daily valuation adjustments. So if the value of market adjustment of the goods object of the operation was comprised between both limits, will not occur any requirement or provision of cash. These thresholds will be announced by the Bank of Spain counterpart by application entities.

9. remuneration of the balances of cash transferred by the application of valuation of the security settings.

9.1. cash balances transferred for the implementation of valuation adjustments shall be paid under identical conditions, whether they are in favour of entities or of the Bank of Spain.

9.2. the Bank of Spain will calculate payments with an interest rate of reference identical to the marginal rate of the main operations of financing of the Bank of Spain.

9.3. the rules applicable to the liquidation of the remuneration referred to in this section will be developed in the corresponding application technique.

10. limits in relation to the use of simple entities of credit. bonds - counterpart entities may only provide as collateral simple bonds issued by a credit institution or any entity with which the credit institution keep close ties in the terms referred to in number 1.4 of the previous clause VI, as the value assigned by the Eurosystem following the implementation of the corresponding cuts to such bonds do not exceed of the 10% of the total value of the assets of warranty provided by that entity's compensation after the cuts. This limit shall not apply in the following cases: assets guaranteed by an entity in the public sector with the power to collect taxes; and assets whose value after cuts does not exceed EUR 50 million.

In the event of a merger or establishment of links (in the terms referred to above) between two or more simple credit bond issuers, these issuers only will be considered a single issuing group for the purposes of the present limit only up to one year elapsed since the date the merger or the establishment of close ties.

11. other measures of control risks. - regardless of the provisions of the numbers 4, 5, 6, 7, 8 and 10 of this clause VI, other control measures of risks that the Bank of Spain may take, at any time to ensure adequate protection in accordance with article 18 of the statutes of the ESCB and of the ECB , in relation to monetary policy operations are: the implementation of initial margins; the imposition of other quantitative limits to the operating assets of certain issuers or assets against certain debtors or guarantors, other than those applicable to the simple bonds of credit institutions; the application of additional cuts; the requirement of additional guarantees to those required or the exclusion of certain specific assets or certain counterparts (as shown in the last two indents of the number 2.1 of the present clause VI).


12. acceptance of assets not denominated in euros in contingency situations - in certain situations, the Eurosystem may decide to accept as collateral certain types of negotiable debt instruments issued by one or more States of the G10 central Governments which do not belong to the area of the euro in their national currencies. When this decision is taken criteria shall be established and shall be communicated to counterpart institutions procedures to be followed for selection and contribution in guarantee of foreign assets, including the sources and principles of valuation of the same, risk control measures and winding-up proceedings.

Without prejudice to the provisions of paragraph 2 of this clause, these assets may be deposited/registered (issued), maintained and settled outside the European economic area and, as noted above, denominated in currencies other than the euro. These assets must be owned by the entity counterpart that provides them. Of counterpart entities that are branches of credit institutions established outside the European economic area or Switzerland can not provide these assets as collateral.

VII. alleged non-compliance.

1 shall be considered the counterpart institution has failed to fulfil obligations derived from these general clauses when any of the following circumstances: to) adoption, in the framework of the competition of creditors of the entity's counterpart, of the opening of winding-up of the same car.

(b) adoption pursuant to the laws of another Member State of the European Union of a measure of universal nature provided for in such legislation to decide on the liquidation of the entity's counterpart.

(c) the entity's return is subject to the freezing of funds and other measures imposed by the EU in accordance with article 75 of the Treaty, restricting their ability to make use of their funds.

Cases of breach in this number 1 will produce the effects provided for in clause VIII General automatically, without prior notice.

2 the Bank of Spain may, prior notification in writing to the counterpart organization, declare it involved in a case of breach of the obligations arising out of these general provisions, inter alia, for the following reasons: to) admission of the application for bankruptcy of the return or declaration of bankruptcy of the same entity.

(b) designation of Auditors or provisional administrators adopted in application of articles 31 to 38, 59 and 62 of the Law 26/1988, of July 29, discipline and intervention of credit institutions.

(c) the adoption pursuant to the laws of another Member State of the European Union of a measure of universal nature provided for in such legislation to decide on the reorganisation of the counterpart institution.

(d) a statement in writing of the counterpart institution recognizing, well its inability to pay all or part of their debts, or to comply with their obligations arising from monetary policy operations, well the existence of a general or agreed voluntary agreement with its creditors, either counterpart entity is, or is deemed, insolvent or unable to pay their debts.

(((e) the adoption of a procedural act preliminary to a decision referred to in paragraphs 1, 2.a), 2.b) and 2.c).

(f) the incorrectness or falseness of the powers of representation granted by the entity counterpart, or of their declarations pre-contractual, contractual, or which have to be carried out by the same pursuant the applicable legal provisions.

(g) the revocation or suspension of the authorization that had matching entity to perform its activity with the national regulations of transposition of the directive of the European Parliament and of the Council 2006/48/EC, June 14, and the investment services directive (directive of the European Parliament and of the Council 2004/39/EC of 21 April) or those that may replace them.

(h) suspension in the condition of Member or expulsion from the entity's counterpart of any system of payments or securities settlement by means of which carried out operations of monetary policy, or of any system of compensation payments and securities settlement of Eurosystem monetary policy operations are settled through which.

(i) adoption with respect to the entity's counterpart of a national measure adopted on the basis of articles 30, 31, 33 and 34 of Directive of the European Parliament and of the Council 2006/48/EC of 14 June.

(j) failure or defective performance by the entity's counterpart of the rules relating to control measures of risk that DG VI of these general provisions referred to in the clause.

(k) the fact that the counterpart institution or any of its branches incurred in a case of non-compliance in any agreement, contract or transaction concluded between an entity of counterpart or its branches and a member of the Eurosystem for the conduct of monetary policy operations, provided that the other Member of the Eurosystem has exercised its right to resolve early any operation within the framework of this agreement by reason of the breach.

(l) the lack of referral by the entity in return for the information requested from it by the Bank of Spain in relation to the operations of monetary policy, as well as not submitting information of relevance that cause serious consequences to the Bank of Spain.

(m) the concurrence of an alleged breach similar to those set forth in the present general terms, in the context of an arrangement for the management of foreign reserves or own funds, by the counterpart institution with any member of the Eurosystem.

(n) non-compliance or defective compliance by the entity's counterpart of the Eurosystem rules on the use of the assets of warranty.

(n) when the counterpart institution experience an alteration in his patrimonial, economic or financial situation that may affect your ability to comply with the obligations arising from the present general terms, in the opinion of the Bank, and in particular in cases of business segregation, Division, merger or absorption, allocation of all or part of its assets to another entity , legal dissolution, administrative expropriation, freezing of funds, however, seizure, retention, confiscation of all or part of your assets or attaching them to any other proceedings aimed at protecting the public interest or the rights of creditors and get off at the register in which he is registered such entity's return, forcing the latter to notify the Bank of Spain , of forms immediately, either of these situations should they occur.

or) when the counterpart institution being subject to the freezing of funds or other measures imposed by a Member State, that restrict their ability to make use of their funds.

(p) the occurrence of any other event that might put at risk the fulfilment by the entity's counterpart of the obligations derived from the present general terms or from any other legal relationship established between the counterpart institution and any other central bank of the Eurosystem.

(q) by the failure or defective performance of any other obligation which are derived from the present general terms, provided that its correction being possible, counterpart institution not appropriate to it within a maximum of 30 days, since it had been required by the Bank of Spain for the realization of such remedies.

Cases of breach in this number 2 will produce the effects provided for in clause VIII General only after the notification referred to in the second subparagraph of that provision. In the aforementioned notification, the Bank of Spain may grant a grace period, which shall not exceed three working days, to remedy the notified breach counterpart entity.

3. other cases of non-compliance. - also will be considered the counterpart institution has failed to fulfil its obligations under these general terms when: 3.1 the counterpart institution fails to comply with the provisions established by the Bank of Spain in relation to auctions and operations bilateral. - to be considered individually, the counterpart institution has failed to comply the provisions laid down by the Bank of Spain in connection with the auctions when that entity's compensation do not transfer enough asset guarantee or cash (as appropriate in regards to setting the margins) to settle on settlement dates, or to ensure, through the expiration date of the operation using the appropriate settings, the amount awarded in a liquidity operation, or if not transferred an amount of sufficient cash to settle the amount awarded in the case of liquidity-absorbing operations.


Furthermore, shall be deemed, in particular, the counterpart institution has failed to comply the provisions laid down by the Bank of Spain in connection with bilateral operations when that entity's compensation do not transfer one sufficient amount of collateral or one sufficient amount of cash to settle the amount agreed in the operation, or if does not guarantee a pending bilateral operation at any time up to the date of its expiration by adjusting the margins for.

3.2 the counterpart institution fails to comply with the procedures of closing day or the access conditions to the marginal ease of credit. - shall be considered, specifically, that there has been unauthorised access to the marginal credit facility when: 3.2.1 counterpart entity accessing the marginal credit facility to have a negative balance in your account for payment at the end of the day module , but does not comply with the conditions of access to this facility, or 3.2.2 the counterpart institution a credit negative intra-day position, greater than its limit of access to marginal credit facility.

3.3 the counterpart institution fails to comply with the provisions established by the Bank of Spain on the use of collateral.

1.1.1.1.1 deemed, singularly, the counterpart institution has failed to comply the provisions laid down by the Bank of Spain on the use of collateral in the following cases: 3.3.1 when counterpart entity used to secure the Eurosystem monetary policy operations guarantee assets issued or guaranteed by herself.

3.3.2. when the counterpart institution use to ensure the Eurosystem monetary policy operations guarantee assets issued or guaranteed by a third party with which the counterpart institution links. These effects mean links to number 1.5 from the sixth clause of the present general terms.

3.3.3. when the counterpart institution use to ensure its monetary policy operations impermissible guarantee assets or collateral that are no longer admissible as a guarantee of such operations, in accordance with the rules in note established to effect the Bank of Spain or the Eurosystem.

3.3.4 when provided information that harms the asset value of warranty, as information about the outstanding balance of used claims that proves false or obsolete.

Without prejudice to the provisions of the preceding paragraph: 3.4 If the asset cannot be used as a guarantee for the operation of monetary policy by the establishment of a "close link" between the counterpart institution and the issuer, debtor or guarantor of the same, shall only be considered the counterpart institution has failed to comply the provisions laid down by the Bank of Spain or the Eurosystem on the use of collateral when that asset is not removed Once 20 days have elapsed from the date of establishment of the «close links».

3.5 If the asset cannot be used as guarantee of the operations of monetary policy by other circumstances, such as that it has been removed from the list of collateral in the Eurosystem, shall only be considered the counterpart institution has failed to comply the provisions laid down by the Bank of Spain or the Eurosystem on the use of collateral when that asset has not been removed within a period of 20 working days computed from the day that the Bank of Spain removed it from the list of collateral in the Eurosystem.

VIII. effects of the cases of non-compliance.

1. the existence of any of the collected cases of breach in number 1 of the clause General VII preceding determine automatically the early termination of the monetary policy operations concluded pursuant to these general provisions, the date in which the cited event of breach (anticipated maturity date) took place.

2. the existence of any of the events of breach contemplated in paragraph 2 of the General clause preceding VII, and the reception by the entity's counterpart of the notification of the Bank of Spain, declaring him involved in it, will determine the anticipation of the expiration of those operations of monetary policy to be determined by the Bank of Spain among those agreed in accordance with these general clauses to the date (date of expiration in advance) such reception occurred or that it ended the period of grace which, in his case, has given the Bank of Spain. For the purposes of the provisions of this paragraph means that it has taken place the receipt of notification when the Bank of Spain has communicated it by existing means for the receipt of communications from the Bank of Spain or by delivery in the domicile of the counterpart institution.

The early maturity of monetary policy operations concluded under its purview will determine also the enforceability of the payment of any amount of cash that either party was forced as a result of the adjustment measures by differences of assessment General VI of the present general terms of conformity referred to clause with the relevant contract provisions frame or particular conditions governing the different monetary policy operations in each case.

Produced the anticipated maturity of monetary policy operations concluded in accordance with these general terms, the parties agree to carry out the joint settlement of those operations of monetary policy that were outstanding on the date of expiration in advance established in accordance with the first and second subparagraphs of this paragraph. To this end, the Bank of Spain shall, in the date of expiration in advance before designated, to make the calculation of the amounts due to each party according to the rules established for each type of monetary policy operation and immediately require the Organization of compensation payment of the net balance that is in favour of the Bank of Spain , or to settle which is, in his case, in favor of the opposing party.

Whatever entity return adeudase to the Bank of Spain as a result of the breach of the obligations arising out of transactions covered by these general provisions accrued in favour of the Bank of Spain from the day occurred breach a moratory interest equal to the official interest rate of marginal ease of credit, increased by two per cent.

What was said in the previous paragraph means in the absence of express contractual clause applicable in each operation.

3. the existence of any of the cases collected in number 3 of the preceding clause VII, without prejudice to the right of the Bank of Spain to enforce unfulfilled obligations concerning the number and compensation for damages which proceed according to the law, will result in one or more of the effects listed below : 3.1. in the case referred in clause VII number 3.1, the following effects occur: 3.1.1 where counterpart does not provide warranty assets sufficient for the liquidation of obligations, only will be assessed the part of the awarded bid to the cited organization counterpart that was actually covered by listed assets of warranty provided. In this so-called delay in the liquidation of the operation will not be allowed.

3.1.2. for the first and second failures that occur within a 12 month period, will apply a pecuniary penalty equivalent to the result of applying the marginal ease of credit interest rate plus 2.5 percentage points, on the amount corresponding to the asset guarantee or cash which the counterparty cannot deliver or liquidate , and multiplied by the coefficient 7/360.

3.1.3. for the third and subsequent violations that occur within a period of 12 months, in addition to the penalty provided for in the preceding paragraph, shall apply a moratorium on the entity of defaulting counterpart of the access to the operations of market open of the same type and executed under the same procedure. The suspension shall be applied in accordance with the following scale: 3.1.3.1 a month of suspension, when the quantity not delivered of guarantee or cash assets exceeds 40% of the total assets of guarantee or cash that should have been provided.

3.1.3.2. two months of suspension, when the amount referred to in the preceding paragraph is between 40% and 80%.

3.1.3.3. three months of suspension, when such amount is between 80% and 100%.

3.2. in the case referred to in the number 3.2 of the 7th clause, the counterpart institution is obliged to pay a pecuniary penalty calculated as follows: 3.2.1 for the first breach, the pecuniary penalty shall be equal to the result of applying the marginal ease of credit interest rate plus 5 percentage points, about the amount of the unauthorised access to the marginal credit facility.

3.2.2. in the case of successive failures that occur over a period of 12 months, the penalty interest rate will increase 2.5 points each time that there is a new default.

3.3. in the case referred to in number 3.3 of the clause VII:


3.3.1. in the first and second failures that occur within a 12 month period, the counterpart entity will have to pay a pecuniary penalty equivalent to the result of applying an interest rate penalty of 2.5 additional percentage points to the interest rate on the marginal credit facility, on the basis of guarantee assets which are not eligible for the Eurosystem as collateral for monetary policy operations and : (1) they have been delivered by the entity's counterpart to the Bank of Spain or (2) they are removed by the same within a period of 20 working days computed from the establishment of the «close links» or from the day that the Bank of Spain remove such assets from the list of collateral in the Eurosystem, and multiplied by the coefficient 1/360.

3.3.2. in the third and successive failure occurring within a period of 12 months, in addition to the penalty provided for in the preceding paragraph, defaulting counterpart entity will be suspended access to the next open market operation.

3.4. in exceptional cases, where required by the seriousness of the event of non-compliance, and especially bearing in mind the quantities involved and the frequency or duration of the breaches, the Bank of Spain may agree, along with the imposition of a pecuniary penalty, suspension entity counterpart operations monetary policy for a period of three months.

3.5. the Bank of Spain may adopt such measures of suspension in relation to those branches in Spain of monetary policy offset entities established in other Member States which have been suspended.

3.6. the amount of the pecuniary penalty rounded up to the nearest hundred. In the assessment of each case of non-compliance with specific justifications that has argued the counterpart institution in relation to the same shall be taken into account.

4. the Bank of Spain may exclude, limit or suspend the entity in return for access to the operations of monetary policy (permanent facilities and open market operations) referred the present general terms for reasons of prudence in the event that there is a case of non-compliance referred to in the preceding clause VIII.

IX. force majeure.

The Bank of Spain assumes no responsibility for any damages that may result in monetary policy operations counterpart entities as consequence of facts constituting force majeure events, including strikes (whether of own staff or not), wars, lock-outs, social revolt, fire, flood, shortage of fuel, electricity, failure of transportation, disaster affecting the availability of resources acts or decisions of public authorities or any other cause independent of the will of the Bank of Spain.

X applicable law and jurisdiction.

The Contracting Parties of monetary policy operations are subject to the present general terms, the applicable law being the Spanish. For many actions and claims arising from them, will be competent the courts and tribunals of Madrid (capital), giving both the Bank of Spain and the counterpart to any other jurisdiction that could correspond to them, and reaching an agreement as a place for the fulfillment of the obligations the domicile of the Bank of Spain at no. 50 of the calle Alcalá, in Madrid.

XI. place of residence.

For all purposes of notices and requirements, will be considered as home of the entity of consideration appearing on the official records that keeps the Bank of Spain.

XII. amendment.

The present general terms may be modified at any time by the Executive Committee of the Bank of Spain and any agreed modification shall apply to return entities as soon as the Bank of Spain had notified those.

The counterpart institution may not plead ignorance of the present general terms or its amendments once they had been made public by the Bank of Spain.

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