JUAN CARLOS I REY OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

PREAMBLE I

The mortgage market is one of the most influential segments of the financial system in macroeconomic and financial stability. Its functioning depends on the financing of the housing, which accounts for about two thirds of the value of the total wealth of Spanish households and conditions their decisions of consumption and investment. At the same time, the mortgage credit has a great weight in the balance of credit institutions and accounts for more than half of the total credit to the resident private sector.

It should be remembered that the recent period of extraordinary acceleration of activity has coincided with a remarkable stability in the regulation of the mortgage market. The basic rules of the legal framework relating to transparency, mechanisms for the mobilisation of loans and subrogation and novation have not been substantially altered in recent years. This stability contrasts with the intense regulatory production in the other areas of the financial system, and although the durability of the rules is always desirable, during this time some fundamental factors have changed. Implications must be introduced into our legal system. In particular, a phase of expansion of mortgage credit for residential purposes in Spain has occurred in the last ten years. This expansion has been reflected in the growth of the Spanish mortgage card market that has reached the first positions by volume issued in Europe. The strong pace of development in both markets has led to the need to take measures to ensure that they function properly, so as to consolidate the growth of the mortgage market on the one hand, and not to discriminate against regulatorily between the different loan options or mortgage credit open to the clients on the other. In particular, at a current juncture of moderate rise in reference interest rates. The lines of action in which this Law can be structured in relation to the mortgage market are, in essence, the removal of obstacles to the supply of new products, the modernisation of the protection regime through the search for more effective transparency, enabling borrowers to take their decisions on the basis of the real risk of products and the improvement of financing instruments.

II

Chapter I, on transparency in the procurement of mortgage loans and loans, sets out as a basic objective to modernise the protection regime by seeking more effective transparency, which will allow for the borrowers to make their decisions based on the real risk of the products. This is why the Law is amended to enable the Minister for Economic Affairs and Finance to lay down the rules to ensure that the contracts are explicitly and clearly contain the commitments and rights of the This is a very important step in the future, and I would like to make it clear that the Commission is not going to be able to make a decision on this matter.

Also, an explicit reference is made to the pre-contractual information that credit institutions must make available to their clients in order to ensure that they, when hiring the different products They will have the most relevant information on their characteristics in order to be able to form an opinion based on them. Thus, the Minister of Economy and Finance is enabled to determine the minimum information that credit institutions must provide to their clients prior to the signing of any contract. This pre-contractual information should enable the customer to know the essential characteristics of the products on which he or she can contract and assess whether such products meet their needs and financial situation. Both amendments are made in the light of regulation and practices in the European Union in order to ensure convergence in this area.

III

The second scope of modernization that is addressed in this Law corresponds to the refinancing mechanisms of credit institutions through the issuance of mortgage bonds and mortgage bonds. The favorable juncture in the last years of our mortgage and real estate market is a great opportunity to consolidate our mortgage market. This challenge needs regulatory and technical improvements that foster innovation and allow a high degree of flexibility for the issuing entities of these securities. The technical improvements introduced are based on two lines: one, the first, to remove administrative obstacles which particularly weighed on the figure of mortgage bonds and one, second and largest, consisting of making possible a increased sophistication from the financial point of view of the issuance of credit cards and mortgage bonds.

First of all, the mortgage loan and loan portfolio that serves as collateral to mortgage lenders does not include loans or loans that have been affected by a mortgage bond issue or have been object of mortgage holdings. In order to facilitate the segregation of loans and loans from the guarantee portfolio of the rest of those making up the assets of the issuing entities, a special accounting register has been provided. In this register, all loans and mortgage loans that form the guarantee of the cards will be collected and, in addition, those that meet the requirements of Section II of Law 2/1981, 25 of In March, the Mortgage Market Regulation is necessary to compute the limit established for the issuance of cedulae contained in Article 16. In addition, this emission limit is revised to ensure that the high credit quality of the mortgage cards is maintained, with 80 percent of the credit and mortgage loans meeting the requirements of the aforementioned Section II. Second, some administrative hurdles have been removed that have hindered the development of mortgage bonds with the aim of achieving neutral administrative treatment of bonds against the mortgage card. To this end, the need for a note to the margin in the Land Registry for each of the mortgages affected disappears, and the constitution, before compulsory, of a union of bondholders becomes a potestative. In addition, they are matched to the existing treatment for the cards by including the use of the issuer's universal equity liability in the event that the special guarantees do not cover the amount of the debt. Finally, it is established that all loans and mortgage loans affected by bonds will have to meet the requirements of Section II of the Law, since the logic of this instrument is to allow the issuance of high quality mortgage securities. credit to institutions with greater difficulties in refinancing. Third, a series of improvements are included for both instruments: cedulas and mortgage bonds that increase the possibility of financial sophistication of emissions. They highlight the possibility of including liquid substitution assets in the issuance portfolio, which helps to cover the liquidity risk in the event of a possible tender, and the strengthening of the possibility of hedging the interest rate risk through financial derivative contracts associated with an issue, which occurs when the economic flows generated by these instruments are entered in favour of the entity in the set of segregated assets on which the holder of the mortgage title is creditor with special privilege.

IV

Chapter III deals with three policy areas in relation to the valuation entities, under the basic principle of maintaining and strengthening the independence of the institutions.

First of all, the promotion of the independence of the valuation entities is concrete. The aim is to achieve the establishment of a scheme for the performance of valuation companies to ensure their independence and the absence of conflicts of interest with regard to credit institutions which finally grant mortgage loans, through two mechanisms; one general, the internal rules of conduct to which can be added other means and another aggravated, a Technical Commission, charged with verifying the compliance with the requirements of independence established by the cited regulation and, where appropriate, by other mechanisms. Secondly, amendments are made to the sanctioning system of the valuation institutions. On the one hand, new cases of infringement arising from the new system of obligations contained in this Law are established and the table of infringements is generally reviewed, as a result of the experience gained in the exercise of the Sanctioning authority. On the other hand, for reasons of legal and systematic security, the legal seat of the aforementioned regime is changed, content, until now, in the additional provision of Law 3/1994, of 14 April, adapting the Spanish legislation in Credit institutions subject to the Second Banking Coordination Directive and other amendments relating to the financial system are introduced. Thus, in this Law, the infringements and penalties applicable to this type of entity are collected in an integrated, revised and updated form. Third, a scheme of significant shareholdings, similar to that provided for credit institutions, is established to enable the composition of the shareholding to be controlled.

V

One of the objectives of this Law is to achieve neutrality in the regulatory treatment of the various types of mortgage loans and loans offered on the market. At present there is a regulation on the early repayment commission in the case of subrogation of the mortgage loan which, since it is not directly linked to the economic injury suffered by the credit institution when the credit institution subrogation, artificially discriminates between the different possible interest rate structures on a mortgage loan. From the perspective of the objective of protection for customers, the current regime is also unsatisfactory, as it allows the customers to have to pay a fee to the bank, even if the depreciation is beneficial for the latter. last.

This Law changes, first of all, the denomination of the commission for early amortisation for the compensation of the being is more in line with its nature. Second, this compensation is divided by early repayment of the compensation to the institution for the withdrawal of a contract and the loss of the loan's origination costs, and the compensation for the risk of the loan. the interest rate of the institution when it is depreciated in advance in low interest rates. Two elements are introduced for this second compensation to be related to the actual economic loss for the entity. The first is the establishment of a calculation basis that more accurately reflects the risk exposure of the institution. The second is the prohibition on the collection of compensation in cases where depreciation generates a capital gain for the entity that would be a credit institution, not therefore having an economic motivation. This new early repayment compensation scheme replaces the previous commission for mortgage loans agreed upon from the entry into force of this Act, so that no contract may be charged for both concepts.

VI

In Chapter V, actions relating to the calculation of the tariff costs relating to loans or mortgage loans are carried out. All this with the overall objective of reducing and promoting the transparency of the transaction costs of the mortgage market operations. Taking into account the regulation introduced by Law 36/2003 of 11 November, of measures of economic reform, relating to the tariff costs of the instruments of amending and subrogation of the mortgage loans, it is necessary to continue to deepen the transparency and reduction of these tariffs, as well as extend these bonuses to the case of cancellations that do not have the purpose of subrogation and mortgage loans. To this end, the determination of the notarial duties is established based on the rights provided for the "documents without value" and the determination of the registered tariffs based on the rights established for the "Inscriptions", with the maximum reduction established by Law 36/2003, of November 11, of measures of economic reform, of 90 percent for all types of operations.

VII

In Chapter VI, the mortgage market is relaxed by regulating the maximum mortgages, also called "floating". The accessor and determination that governs on ordinary mortgages excludes from our current legal order as ordinary mortgages or from traffic to those mortgages in which the guaranteed obligations are different or in which they are mixed Present and future obligations. This necessarily determines that as many mortgages as obligations are intended to guarantee what, in addition to making the operation more expensive, is not competitive in banking practice.

What is intended by this reform is to generalise the possibility of guaranteeing with a mortgage of maximum other very different legal relationships, although it has been considered appropriate to limit it to credit institutions and not to any creditor, in the light of the special supervisory rules to which they are subject. The maximum mortgage will allow to admit new mortgage products so far rejected. The felt need to move forward and to make the legal system of mortgages more flexible, with legal requirements and legal figures which take into account the new demands, also obliges all operators involved in the training of contracts and the real guarantees, especially to the Notaries and the Registrar of the Property, so that as legal operators, in the drafting of the documents and in the practice of the seats, they understand directed their work in the sense of direction and provide access to the Register of titles authorised by the existing legal means, for to ensure that the property and the actual rights on it are imposed under the scheme of advertising and preventive legal certainty, and enjoy its benefits, in accordance with the legal and legal provisions in any case; regulations that determine the content of the registration, the requirements for its extension, and its effects. Other measures aimed at boosting the mortgage market for mortgage loans are intended to specify the content of the actual mortgage law, avoiding any discordant registration marks that prevent the mortgage. uniformity in the registration of the right which imposes its mass procurement. To this end, it is established that the amount of the principal of the debt and, where applicable, the amount of the interest agreed, or the maximum amount of the mortgage liability, shall be expressed in the registration of the actual mortgage right. guaranteed obligations, whatever the nature of these obligations and their duration. The other financial terms, such as those relating to the anticipated maturity, secured by mortgage, shall be entered in the seat in the terms resulting from the writing of the formalisation, but provided that the Favourable registration of the actual content clauses. On the other hand, the novation of mortgage loans for the benefit of the debtor is hampered by the restrictive interpretation of the concept of the amendment to Law 2/1994 of 30 March on the subrogation of loans mortgage. What is now being adopted is a broader interpretation of when there is an amendment to the amendment, in such a way that it is considered that there is mere modification and non-extinction of the legal relationship and the creation of a new one in the following cases: (a) extension or reduction of capital, the provision or modification of personal guarantees, alteration of the terms of the interest rate initially agreed or in force; alteration of the time limit, method or system of depreciation and any other financial terms of the loan. The legal uncertainty caused by the subsistence of references to provisions expressly repealed in others that remain in force after the entry into force of Law 22/2003, of July 9, is eliminated. It also provides for an appropriate framework for the possibility of mobilisation of loans or loans secured with the first mortgage or non-posting.

VIII

With regard to the developments that this Law introduces in its additional provisions, some relevant legislative records must be taken into account. First, Law 39/2006 of 14 December on the Promotion of Personal Autonomy and Care for Persons in a State of Dependence, the additional provision of which "Private Instruments for the Coverage of Dependence" provides that the Government within six months will promote legislative changes to regulate the private coverage of situations of dependency, and that, in order to facilitate the co-financing by the beneficiaries of the services that establish in the Law, the regulation of the tax treatment of the instruments will be promoted private coverage of the dependency.

Second, and even if it is not in the chronological order, Law 35/2006, of 28 November, of the Tax on the Income of the Physical Persons and of partial modification of the laws of the Taxes on Societies, on The Income of Non-Residents and on the Heritage, introduces a series of measures of fiscal promotion of the coverage of the dependency through private insurance and pension plans, modifying the substantive regulation of the latter. To make liquid the value of housing through financial products could contribute to alleviating one of the great socioeconomic problems that Spain and most developed countries have: the satisfaction of the increase of the needs of income during the last years of life. The reverse mortgage regulated in this Law is defined as a loan or mortgage credit from which the owner of the dwelling makes provisions, usually periodic, even though the provision may be one-off, up to a maximum amount determined by a percentage of the valuation value at the time of the constitution. When this percentage is reached, the higher or dependent ceases to have the income and the debt continues to generate interest. The recovery on the part of the credit institution willing plus interest occurs normally at once when the owner passes away, by the cancellation of the debt by the heirs or the execution of the mortgage guarantee by the the credit institution. There is no doubt, therefore, that the development of a market for reverse mortgages that allow the elderly to use part of their real estate to increase their income offers a great potential for generating economic and social benefits. The possibility of enjoying the accumulated savings in housing would greatly increase the capacity to soften the income and consumption profile throughout the life cycle, with the consequent positive effect on welfare. In relation to dependency insurance, its content incorporates the regulation of private instruments for the coverage of the dependency, which may be used either through an insurance contract concluded with insurance companies, including the social welfare insurance funds, or through a pension scheme. The coverage of the dependency carried out through a contract of insurance compels the insurer, in the case of the situation of dependence, in accordance with the provisions of the regulatory norms of the promotion of the personal autonomy and care for persons in a situation of dependence, and within the terms established in the Law and in the contract, to the fulfillment of the agreed benefit in order to attend, in whole or in part, directly or indirectly, the adverse consequences for the insured person arising from such a situation. Such insurance may be contracted by insurance companies which have the necessary administrative authorisation for the exercise of the insurance business in the classes of life or sickness. As far as pension plans are concerned, which provide for the coverage of the dependency contingency, they must be expressly collected in their specifications. The Law ends with seven final provisions, in addition to those relating to regulatory enablement, the basic character and the competences and the entry into force, which cover the modification of many other financial rules with the objective of to make it possible to comply with the rules contained in the main body of this Law.

Chapter I

Transparency in the hiring of loans and mortgage loans

Article 1. Amendment of Law 26/1988 of 29 July on Discipline and Intervention of credit institutions.

1. Article 48 (2) (a) of Law No 26/1988 of 29 July 1988 on the Discipline and Intervention of credit institutions shall read as follows:

" (a) Establish that the relevant contracts are formalised in writing and dictate the precise rules to ensure that they reflect explicitly and with the necessary clarity the commitments entered into by the parties and the rights of the same to the eventualities of each kind of transaction, in particular, the questions relating to the transparency of the financial conditions of the mortgage loans or loans. To this end, it may determine the questions or eventualities which contracts relating to typical financial transactions with its customers will have to deal with or provide for in an express manner, requiring the establishment by the model entities for them and impose some form of administrative control over such models. Information on the transparency of mortgage loans or loans, provided that the mortgage is placed on a home, shall be provided regardless of the amount of the property. "

2. A new point (h) is inserted in Article 48.2 (2) of Law 26/1988 of 29 July on Discipline and Intervention of credit institutions, with the following wording:

" (h) Determine the minimum information that credit institutions must provide to their clients in reasonable time for them to assume any contractual obligation to the institution or to accept any contract or offer contracts, as well as banking transactions or contracts in which such pre-contractual information will be required. Such information shall be intended to enable the customer to know the essential characteristics of the proposed products and to assess whether they meet their needs and, where they may be affected, their financial situation. "

Chapter II

Refinancing Mechanisms

Article 2. Amendment of Law 2/1981, of March 25, of Regulation of the Mortgage Market.

1. New wording is given to Article 1 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following literal wording:

" Article 1.

The financial institutions to which this Act refers may grant mortgage loans and issue the securities necessary for their financing, in accordance with the requirements and purposes set out therein, without prejudice to that these entities or others may issue and transmit bonds, with or without collateral, in accordance with the laws in force.

This Law, as well as its development regulations, will apply to all the titles that are regulated and that are issued in Spanish territory. "

2. New wording is given to Article 2 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following literal wording:

" Article 2.

The credit institutions which are then detailed may grant loans and loans and issue the securities covered by this Law, under the conditions that are regulated as follows: (a) the banks and, where as permitted by their respective statutes, the official credit institutions,

(b) savings banks and the Spanish Confederation of Savings Banks, (c) credit unions, (d) credit institutions. "

3. The first, second and fourth paragraphs are reworded and a new fifth paragraph is inserted in Article 5 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 5.

The loans and loans referred to in this Law will have to be guaranteed, in any case, by real estate mortgage constituted with rank of first on the full domain of the entire estate. If, on the same property, other mortgages are taxed or are affected by a prohibition of disposal, a resolutive condition or any other limitation of the domain, the cancellation of some and other or its postponement to the mortgage will have to be carried out is previously the issue of the securities.

The loan or credit secured with this mortgage will not be able to exceed 60 percent of the value of valuation of the mortgage. Where the construction, rehabilitation or purchase of dwellings is financed, the loan or credit may reach 80% of the value of the valuation, without prejudice to the exceptions provided for in this Law. In the case of loans and loans referred to in this Article, such loans and loans may be included in the form of guarantees of a real estate located within the European Union by guarantees of a nature equivalent to those defined in this Law. Regulations shall be determined:

1. Goods which may not be eligible for security because of their nature do not represent a sufficiently stable and lasting value. In no case shall the housing of a social character which has public protection be excluded as mortgageable property.

2. The assumptions in which it may exceed the 60 per cent ratio between the guaranteed loan or credit and the value of the mortgaged good, with the upper limit of 80 per cent, as well as those in which the Administration, depending on the characteristics of the mortgaged goods, can set percentages of less than 60%. In any event, the maximum limit of 80% shall apply to loans and loans secured by mortgage on dwellings subject to a public protection scheme. 3. The terms of the issuance of securities issued with a mortgage guarantee on buildings under construction. 4. The conditions under which the 80 per cent ratio could be exceeded between the guaranteed loan or credit and the value of mortgaged housing, without exceeding 95 per cent of that value, by means of additional guarantees provided by insurance institutions or credit institutions. 5. The way in which the equivalence of real guarantees which are taxed in other Member States of the European Union and the terms of the issue of securities issued by them as collateral shall be assessed. '

4. New wording is given to Article 11 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 11.

The entities referred to in Article 2 that have loans or mortgage loans with the requirements set out in the previous section may issue mortgage and mortgage bonds, in series or singularly and with the financial characteristics that they wish, in accordance with the provisions of the following Articles. In particular, credit cards and mortgage bonds may include early amortisation clauses at the issuer's disposal as specified in the terms of the issue. The implementation of these emissions will be in accordance with the arrangements provided for in Law 24/1988 of 28 July 1988 on the Securities Market, provided that, in accordance with the latter, it is applicable. "

5. New wording is given to Article 12 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 12.

Mortgage cards may be issued by all entities referred to in Article 2.

The capital and the interest of the cards will be especially guaranteed, without the need for registration, by mortgage on all those who, at any time, are registered in favor of the issuing entity and are not the issue of mortgage bonds, without prejudice to the universal patrimonial liability of the mortgage bonds and, if they exist, the replacement assets referred to in Article 17 (2) and the economic flows generated by the derivative financial instruments linked to each issue, under conditions which Regulations shall be determined. The issuing entity of the mortgage transferor shall keep a special accounting record of the loans and credits that serve as collateral for the issuance of mortgage credit cards and, if any, the replacement assets immobilized to give them coverage, as well as of the financial instruments linked to each issue. This special accounting register shall also identify, for the purposes of calculating the limit laid down in Article 16, among all the loans and loans recorded, those which fulfil the conditions laid down in Section 2 of this Article. Law. The annual accounts of the issuing institution shall, in the form that it is determined to determine, collect the essential data for that registration. The issue of cedula issues will not apply to Chapter X of the Royal Decree of Law 1564/1989 of 22 December 1989, which approves the recast of the Law on Limited Companies. They shall not be entered in the Register. '

6. New wording is given to Article 13 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 13.

Mortgage bonds may be issued by all entities referred to in Article 2.

The capital and interest of the bonds will be especially guaranteed, without the need for registration, by mortgage on loans and mortgage loans that are affected in public deed, without prejudice to the universal patrimonial liability of the issuing institution, and, if any, by the replacement assets referred to in Article 17 (2) which are affected by public deed and by the economic flows generated by the instruments financial derivatives linked to each issue, under the conditions that they regulate are determined. All loans and mortgage loans affected by a mortgage bond issue shall meet the requirements of Section II of this Law. The issuer of the mortgage bonds shall keep a special accounting record of the mortgage loans and loans affected by the issue and, if any, of the replacement assets included in the cover, as well as of the instruments financial derivatives linked to the issue. A trade union of bondholders may be established, where they are issued in series, in which case the issuing institution shall appoint a commissioner who is in attendance at the award of the public deed referred to in the second paragraph of this Article in name of the future bondholders. Such person, whose appointment must be ratified by the assembly of bondholders, shall be the president of the union, and, in addition to the powers conferred upon him in that deed or those conferred upon him by the said assembly, shall have the legal representation of the trade union, may verify that the percentage referred to in Article 17.1 is maintained by the entity, and shall exercise the actions corresponding to that percentage. The President, as well as the union in all matters relating to its composition, powers and powers shall be governed by the provisions of Chapter X of the Recast Text of the Law of Companies, approved by Royal Decree-Law 1564/1989, 22 December, inasmuch as they do not object to those contained in this Law. "

7. New wording is given to Article 14 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 14.

Mortgage cards and bonds incorporate the right of credit of their holder to the issuing institution, guaranteed in the form provided for in Articles 12 and 13, and shall be executed to claim the issuer of the payment, after maturity. The holders of such securities shall have the character of creditors with special preference as referred to in Article 1.923 of the Civil Code against any other creditors in respect of all loans and loans. mortgages entered in favour of the issuer in the case of cards, other than those which serve as cover for bonds, and in relation to the loans and mortgage loans concerned in the case of bonds and, in both cases, in relation to the assets of the substitution and the economic flows generated by the derivative financial instruments linked to emissions, if these exist. The holders of the bonds of an issue shall have precedence over the holders of the cards when they are on a loan or credit affected by that issue. All holders of cards, regardless of their date of issue, will have the same priority over the loans and loans that guarantee them and, if they exist, on the replacement assets and on the economic flows generated by the derivative financial instruments linked to emissions.

In the event of a tender of the issuer, the holders of credit cards and mortgage bonds shall enjoy the special privilege established in Article 90 (1) of Law 22/2003, of July 9, Bankruptcy. Without prejudice to the foregoing, they shall be treated during the contest, in accordance with the provisions of Article 84 (2) of Law 22/2003, of 9 July, of insolvency, and as appropriations against the mass, the payments corresponding to the depreciation of capital and interest on mortgage and mortgage bonds issued and outstanding at the date of application of the tender up to the amount of income received from the loan and mortgage loans and, if they exist, of the replacement assets that support the mortgage and mortgage bonds and the flows (a) the economic performance of the financial instruments linked to the emissions. If, for a temporary delay, the revenue received by the Commission is insufficient to meet the payments referred to in the preceding paragraph, the insolvency administration must satisfy them by the liquidation of the assets of the replacement of the issue and, if this is not sufficient, it must carry out financing operations to fulfil the mandate for payment to the transferor or bondholders, the funder being subrogated in their position. If there is to be a proceeding as referred to in Article 155 (3) of Law 22/2003 of 9 June, the payment to all holders of the transferor issued by the issuer shall be made on a pro rata basis, irrespective of the dates of issuance of their titles. If the same credit is affected by the payment of the cards and a bond issue will be paid first to the holders of the bonds. "

8. New wording is given to Article 16 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 16.

Entities will not be able to issue mortgage cards in excess of 80 percent of the unamortized capital of loans and mortgage loans in their portfolio that meet the requirements set out in Section II, deducted the amount of those affected by mortgage bonds.

Mortgage cards may be supported up to a limit of 5 percent of the principal issued by the replacement assets listed in the second paragraph of Article 17. "

9. New wording is given to Article 17 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 17.

One. The updated value of mortgage bonds should be at least 2 percent lower than the updated value of the affected loans and mortgage loans. The form of calculation of the updated value shall be determined.

Two. Mortgage bonds may be backed up to a limit of 10 percent of the principal of each issue by the following replacement assets:

(a) fixed income securities represented by notes on account issued by the State, other Member States of the European Union or the Institute of Official Credit

(b) mortgage cards admitted to trading on an official secondary market, or on a regulated market, provided that such cards are not guaranteed by any loan or credit secured by the mortgage. the issuer of the bonds or other entities in its group, (c) mortgage bonds admitted to trading on an official secondary market, or on a regulated market, with a credit rating equivalent to that of the Kingdom of Spain, provided that such securities are not guaranteed by any loan or credit with a mortgage guarantee granted by the issuing entity itself, or by other entities in its group, (d) securities issued by Mortgage Securitisation Funds or by Funds of Entitlement of Assets admitted to trading on an official secondary market, or on a market regulated, with a credit rating equivalent to that of the Kingdom of Spain, provided that such securities are not guaranteed by any loan or credit granted by the issuing institution itself, or by other entities in its group, (e) other fixed income securities admitted to trading on an official secondary market, or in a regulated market, with a credit rating equivalent to that of the Kingdom of Spain, provided that such securities have not been issued by the issuing institution itself, or by other entities in its group, (f) other assets of low risk and high liquidity to be determined on a regulated basis. '

10. New wording is given to Article 18 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, with the following wording:

" Article 18.

One. The issuer shall be obliged to maintain at all times the percentages referred to in the previous two Articles.

Two. If, by reason of the amortisation of loans or loans, the amount of the issued cards and bonds exceeded, respectively, of the limits indicated, institutions may choose to acquire their own bonds, cards or shares/units. (a) to restore the proportion or, in the event of the cancellation of mortgages affected by a bond issue, to replace them with other bonds which meet the required conditions, with the latter being affected by the corresponding public writing. '

Chapter III

Task Entities

Article 3. Promotion of the independence of the valuation entities.

1. New wording is given to the title of Section I of Law 2/1981 of 25 March of Regulation of the Mortgage Market, which is to be titled:

"Section I. Financial institutions and valuation companies"

2. New wording is given to Article 3 of Law 2/1981 of 25 March of Regulation of the Mortgage Market, which has the following wording:

" Article 3.

1. The valuation companies and the valuation services of the credit institutions shall be subject to the requirements of prior approval, independence and secrecy which are laid down in regulation.

2. The valuation companies which provide their services to credit institutions in the same group, as well as the valuation companies whose total income is derived, in the period of the temporary period to be established, at least 25% of their business relationship with a credit institution or with the set of credit institutions in the same group, they shall, provided that any of those credit institutions have issued and have in circulation mortgage securities, have mechanisms appropriate to promote the independence of the assessment activity and to avoid conflicts of interest, in particular with the managers or units of the credit institution which, without specific powers in the analysis or risk management, are related to the granting or marketing of loans or mortgage loans. Those mechanisms shall consist of at least an internal rules of conduct which establishes the incompatibilities of its directors and administrators and the other extremes which the institution, taking into account its size, type of business, and other characteristics, are more appropriate. The Bank of Spain shall verify these mechanisms and may lay down the minimum requirements to be met in general and require the institutions, in a reasoned manner, to take the additional measures necessary for the preserve their professional independence. The obligation to dispose of such mechanisms shall also affect the credit institutions ' own valuation services, and those valuation companies controlled by or in which they exercise a significant influence on their management, with a view to the specific interests in the promotion or marketing of buildings, or in activities which, in the opinion of the Banco de España, are of the same nature. 3. Credit institutions which have issued and have in circulation mortgage securities and have their own valuation services or are charged to a valuation company in the same group shall constitute a technical committee which verify compliance with the independence requirements contained in the mechanisms referred to in the previous paragraph. The Commission shall draw up an annual report, to be submitted to the board of directors or equivalent body of the institution, on the extent to which these requirements are met. The annual report must also be sent to the Banco de España. "

Article 4. Sanctioning regime.

A new article 3a is incorporated into Law 2/1981, of March 25, of Regulation of the Mortgage Market, with the following wording:

" Article 3a.

1. Valuation companies and credit institutions which have their own valuation services shall comply with the rules applicable to the valuations of goods which have as their object the mortgage market or other financial purposes, to provide the certificates and reports that they issue and operate at all times with professional diligence. Failure to comply with any of its obligations shall determine the application of the sanctioning regime provided for in this Article.

2. The infringements are described as very serious, serious and minor.

(a) Very serious infringements shall be considered: 1. The non-compliance, for a period of more than six months, of the requirement of the minimum social capital required to carry out the activity of assessment in market legislation mortgage, as well as, during the same period, the absence, or the coverage of the amount less than the amount payable, of the insurance of the civil liability established in that same regulation.

2. The exercise of activities other than their legally determined social object, unless they are merely occasional or isolated. 3. To present deficiencies in the administrative, technical or personnel organization, including the minimum requirements of qualified administrators or professionals, or internal control procedures, where due to such deficiencies there is no the ability of the entity to know the situation and conditions of the real estate market in which it operates, the uniform compliance of the applicable valuation rules, its professional independence of shareholders or customers, or the control of the obligations of secrecy or incompatibilities to which the professionals are subject to your service. 4. Failure by the signatories to report the assessment of the professional qualifications requirements laid down in the regulations. 5. The issue of certificates or assessment reports in which the content is expressed in a manifest manner:

(a) The lack of veracity in the valuation and, in particular, the lack of agreement with the data and evidence obtained in the valuation activity carried out.

(b) The lack of value for money when the issuance of such documents is made for the purpose of assessing eligible assets, either to serve as a guarantee of credits forming or to be part of the coverage of securities mortgage, whether for the purposes of hedging the technical provisions of the insurance institutions or the real estate of the pension funds, or for any other purpose in which the application of the principle of prudence is required value.

In any event, the existence of a manifest lack of veracity or, where appropriate, of manifest lack of value is presumed when, as a consequence of the assessments reflected in some of these documents, the false appearance that a credit institution, an insurance institution, a pension fund, or another entity of a financial nature complies with the financial guarantees required of them.

6. The resistance, refusal or obstruction to the work of the Banco de España, the National Securities Market Commission or the General Directorate of Insurance and Pension Funds in the field of their respective competence, provided that it is required to express and in writing. 7. Failure to comply with the rules of independence laid down in the rules of procedure provided for in Article 3 (2) of this Law. 8. The risk of the sound and prudent management of an assessment company by means of influence exercised by the holder of a significant participation, in accordance with the regulation provided for in regulation. 9. Serious infringements, where a firm sanction for the same type of infringement was imposed during the five years preceding its committee.

(b) Serious infringements are considered: 1. Failure to comply with the minimum capital requirement required to exercise the activity of assessment in mortgage market legislation, where it does not constitute a very serious infringement, as well as deficiencies which are assessed in the civil liability insurance policy, unless they are merely occasional or isolated or assume exceptional exclusions of certain damages in accordance with the usual practices in the coverage insurer.

2. To present deficiencies in the administrative, technical or personnel organization, including the minimum requirements of qualified administrators or professionals, in the internal control procedures, after the (a) time limit granted for the purpose of subhealing by the competent authorities, provided that this does not constitute a very serious infringement. 3. The issue of assessment certificates which are not in conformity with the assessment report, unless it is purely occasional or isolated. 4. Issue of certificates or reports in which the content is appreciated:

(a) The lack of veracity and, in particular, the lack of agreement with the data and evidence obtained in the valuation activity carried out, as well as the continued failures of the principles, procedures, checks (a) the valuation instructions provided for in the applicable rules.

(b) The lack of value for money, where the issuance of such documents is made for the purpose of assessing eligible assets, either to serve as a guarantee of claims that form or to be part of the coverage of securities mortgage, whether for the purposes of hedging the technical provisions of the insurance institutions or the real estate of the pension funds, or for any other purpose in which the application of the principle of prudence is required valuative, unless such fault is occasional or isolated. In both cases provided that the conduct does not constitute a very serious infringement. 5. Any other non-compliance with the valuation rules which may cause economic injury to third parties or to the person to whom the service is provided. 6. The lack of remission of the data to be supplied to the Banco de España, the National Securities Market Commission or the General Directorate of Insurance and Pension Funds, or its lack of veracity when the data is difficult to an assessment of the activity carried out by the institution or its financial or organisational situation. For these purposes, it shall be understood that there is a lack of referral where the referral does not take place within the time limit granted by the competent body, when requesting in writing the fulfilment of the obligation or reiterating the requirement. 7. Non-compliance with the duties of professional secrecy, independence and incompatibility in the performance of their duties which do not result in very serious infringements, unless they are merely occasional or isolated. 8. The minor infringements, where during the two years prior to their commission, the same type of infringement had been imposed on the services and companies of valuation.

(c) Other actions and omissions involving non-compliance with the applicable rules shall be considered as minor infringements. 3. The penalties provided for in Chapter III of Title I of Law No 26/88 of 29 July 1988 on the application of the penalties provided for in Chapter III of Title I of Law No 26/88 of 29 July 1988 on credit institutions and on credit institutions providing valuation services, as well as to their administrators and managers, shall apply to them. Discipline and Intervention of the Credit Entities, with the following modifications: (a) The sanction of revocation of the authorization shall be understood as being replaced by the definitive loss of the approval to provide assessment services.

(b) For very serious infringements, the suspension of approval may also be imposed for the purpose of providing assessment services between one and five years, and for serious infringements of the suspension of such approval up to a year. (c) The disablement penalties provided for in Article 12 shall be construed as referring to both credit institutions and valuation companies.

4. The applicable sanctioning procedure will be regulated in Royal Decree 2119/1993 of 3 December on the sanctioning procedure applicable to the subjects acting on the financial markets.

In terms of the sanctioning powers, it will be in accordance with article 18 of Law 26/1988, of July 29, of Discipline and Intervention of the Credit Entities with the following modifications:

(a) The Banco de España will compulsorily initiate a sanctioning procedure where there is a reasoned communication from another administrative body or authority in which it is apparent that the irregular provision of the Assessment services have had an impact on their field of administrative action.

(b) In the case referred to in the preceding subparagraph, before the penalty is imposed, the competent administrative authority or body shall inform.

5. In the other matters relating to the sanctioning regime, it will be applicable, with the adaptations that are regulated in law, as provided for in Law 26/1988 of 29 July, of Discipline and Intervention of the Credit Entities.

6. Natural and legal persons, who are not approved for the purpose of carrying out assessment activities, shall provide the public with their implementation, as provided for in the additional provision of Law 26/1988 of 29 July 1988 on Discipline e Intervention of the Credit Entities, with the adaptations that they regulate are established. "

Article 5.

A new Article 3a (I) is incorporated into Law 2/1981, of March 25, of Regulation of the Mortgage Market, with the following wording:

" Credit institutions, including those with their own valuation services, shall accept any valuation of a good provided by the customer, provided that it is certified by an approved valuer of conformity as provided for in this Law and not expired in accordance with the provisions of the law, and without prejudice to the fact that the credit institution may carry out the checks it considers relevant, which may in no case affect its cost to the client who contributes the certification. "

Article 6. Arrangements for significant shareholdings.

A new article 3 ter is incorporated into Law 2/1981, of March 25, of Regulation of the Mortgage Market, with the following wording:

" 1. Any natural or legal person intending to acquire, directly or indirectly, a significant participation in a valuation company shall inform the Bank of Spain in advance. In addition, the Banco de España must be informed as soon as it becomes aware of the acquisitions or disposals of holdings in its capital which exceed the level referred to in paragraph 2 of this Article.

2. For the purposes of this Law, a significant participation in a valuation company shall be understood to be such that it reaches, directly or indirectly, at least 15% of the capital or the voting rights of the company. It will also have the consideration of significant participation, which, without reaching the indicated percentage, will allow to exert a notable influence on society. 3. The Bank of Spain shall have a maximum period of three months, from the date on which it has been informed, to oppose the proposed acquisition. The opposition may be founded not to consider the acquirer suitable. Among other factors, suitability will be appreciated based on:

a) The commercial and professional honorability of shareholders. This good repute shall be presumed when the shareholders are public administrations or entities dependent on them.

(b) The assets of these shareholders to meet the commitments made. (c) the lack of transparency in the structure of the group to which society may belong, or the existence of serious difficulties in inspecting or obtaining the necessary information on the development of its activities.

If the Bank does not rule in that period, it shall be deemed to accept the claim.

4. Where one of the acquisitions referred to in paragraph 1 of this Article is effected without having previously informed the Bank of Spain or, having informed it, the three months provided for in the preceding paragraph have not yet elapsed, or measure the express opposition of the Bank, the following effects shall occur:

(a) In any event, and automatically, no political rights may be exercised corresponding to the shares acquired irregularly. If, however, they are to be exercised, the corresponding votes shall be void and the agreements shall be contested in court, as provided for in Section 2 of Chapter V of Royal Decree-Law 1564/1989 of 22 December 1989, The Bank of Spain is entitled to the recast of the Law on Limited Companies.

(b) In addition, the penalties provided for in Article 3a of this Law may be imposed. "

Chapter IV

Early amortization compensation scheme

Article 7. Scope of application.

This Chapter shall apply to credit or mortgage loan agreements formalized after the entry into force of this Law, and even if the possibility of early repayment is not included in them, where one of the following conditions is present: For a mortgage loan or credit and the mortgage is placed on a home and the borrower is a natural person.

The borrower is a legal person and is taxed by the tax regime of small companies in the company tax. In such credit agreements or mortgage loans, no fee may be charged for full or partial early repayment. In any event, the institution shall be obliged to issue the bank documentation that accredits the loan payment without charging any fee for it.

Article 8. Compensation for withdrawal.

1. In subrogatory and non-subrogatory, total or partial cancellations, which occur in the mortgage loans or loans referred to in the previous article of this Law, the amount to be received by the lending institution in Withdrawal compensation shall not be higher: (i) to 0,5 per cent of the amortised capital in advance where the early repayment occurs within the first five years of the credit or loan life

or

(ii) to 0,25% of the amortised capital in advance when the early repayment occurs at a later time than that indicated in the preceding number.

2. If a withdrawal compensation equal to or less than the one indicated in the previous paragraph has been agreed, the compensation to be paid by the lending institution shall be the agreed payment.

Article 9. Interest rate risk compensation.

1. In the case of cancellations and non-subrogatory, total or partial cancellations, of mortgage loans or loans that occur within a period of interest rate review whose agreed duration is equal to or less than twelve months, there shall be no the right to be charged by the creditor institution with any amount of interest rate risk compensation.

2. In subrogatory and non-subrogatory, total or partial cancellations, of the remaining mortgage loans or loans, the interest rate risk compensation will be the agreed one and will depend on whether the cancellation generates a profit or a loss of capital to the institution. Capital gains shall be understood as the positive difference between the capital outstanding at the time of the early cancellation and the market value of the loan or credit. Where such a difference yields a negative result, it shall be understood that there is a loss of capital for the lending institution. The market value of the loan or credit shall be calculated as the sum of the current value of the outstanding payment fees until the next interest rate revision and the current value of the outstanding capital that would be left at the time of the review of the loan. No early cancellation will occur. The discount rate shall be the market rate applicable to the remaining period until the next revision. The loan agreement shall specify the benchmark rate or interest rate to be used to calculate the market value of those to be determined by the Minister for Economic Affairs and Finance. In the case of partial cancellation, the percentage of outstanding capital that is amortised shall be applied to the result of the above formula. 3. The lending institution shall not be able to receive interest rate risk compensation in the event that the cancellation of the loan or loan generates a capital gain in its favour. 4. The contract shall specify which of the following two modalities for the calculation of interest rate risk compensation shall be applicable:

A fixed percentage set out in the contract, to be applied on the outstanding capital at the time of the cancellation.

The loss, total or partial, that the cancellation generates to the entity, calculated according to paragraph 2. In this case, the contract must provide for the entity to compensate the borrower in a symmetric way in case the cancellation generates a capital gain for the entity.

Chapter V

Tariff Costs

Article 10. Calculation of the tariff costs.

1. Article 8 of Law 2/1994 of 30 March on subrogation and modification of mortgage loans is amended as follows:

" Article 8. Notarial and registral fees in subrogation, modification and cancellation of loans or mortgage loans.

For the calculation of the notarial fees of the subrogation, amending and cancellation writes, of the mortgage loans or loans, the corresponding tariffs shall be applied to the "No amount documents" provided for in the number 1 of Royal Decree 1426/1989 of 17 November, for which the tariff of the Notaries is approved.

For the calculation of the registration fees of the subrogation, amending and cancellation scripts, of the mortgage loans or loans, the tariffs corresponding to the number 2, "Inscriptions", will apply. of Annex I to Royal Decree 1427/1989 of 17 November 1989, for which the tariff of the Registrar of the Property is approved, based on the figure of the capital to be amortized, with a reduction of 90%. "

2. New wording is given to the title of Article 9 of Law 2/1994 of 30 March on subrogation and modification of mortgage loans, which is to be securitised:

" Article 9. Tax benefits. "

Chapter VI

Improving and easing the mortgage market

Article 11. Amendment of the Mortgage Law of 8 February 1946.

1. Article 12 of the Mortgage Law of 8 February 1946 is worded as follows:

" The amount of the principal of the debt and, where applicable, the amount of the interest agreed, or, the maximum amount of the mortgage liability, shall be expressed in the registration of the actual mortgage right, identifying the obligations guaranteed, whatever the nature of these and their duration.

The anticipated maturity clauses and other financial clauses of the obligations secured by mortgage in favour of the entities referred to in Article 2 of Law 2/1981, of 25 March, of Regulation of the Mortgage market, in case of a favourable registration of the clauses of real importance, will be recorded in the seat in the terms that result from the writing of formalization. "

2. Article 130 of the Mortgage Law of 8 February 1946 is worded as follows:

" The direct execution procedure against mortgaged property may be exercised only as a registered mortgage, on the basis of those ends contained in the title which have been collected in the seat respective. "

3. The first paragraph of Article 149 of the Mortgage Law of 8 February 1946 is worded as follows:

" The credit or loan secured by mortgage may be transferred in whole or in part in accordance with the provisions of Article 1,526 of the Civil Code. The transfer of the ownership of the mortgage which guarantees a loan or loan shall be made in public deed and entered in the Land Registry. "

4. A new article, the 1515a of the Mortgage Act, of 8 February 1946, is introduced in the following terms:

" Article 153 a.

You may also be a maximum mortgage: (a) in favour of the financial institutions referred to in Article 2 of Law 2/1981 of 25 March on the regulation of the mortgage market, as collateral for one or more obligations, of any kind, present and/or future, without the need for a novatory pact thereof,

b) in favor of public administrations with tax credits or Social Security, without the need for a new pact. It shall be sufficient to specify in the instrument of incorporation of the mortgage and to record in the registration of the mortgage: its name and, if necessary, the general description of the basic legal acts of which it derives or may In the future, derive the guaranteed obligations; the maximum amount of the farm's response; the term of the mortgage, and the method of calculation of the final liquid balance guaranteed. It may be agreed in the title that the amount payable in the event of execution is the result of the liquidation carried out by the creditor financial institution in the form agreed by the parties to the deed. Upon expiration agreed upon by the licensors, or any of its extensions, the mortgage may be exercised in accordance with the provisions of Articles 129 and 153 of this Law and consistent with the Law on Civil Procedure. "

Article 12. Amendment of Law 2/1981 of 25 March of Regulation of the Mortgage Market.

1. Article 4 of Law 2/1981 of 25 March of Regulation of the Mortgage Market is worded as follows:

" Article 4.

The purpose of the loan operations referred to in this Law will be to finance, with the guarantee of an ordinary or maximum real estate mortgage, the construction, rehabilitation and acquisition of housing, works of urbanization and social equipment, construction of agricultural, tourist, industrial and commercial buildings and any other work or activity as well as any other loans granted by the entities referred to in Article 2 and guaranteed by mortgage property under the conditions laid down in this Law, whatever its purpose.

The provisions of loans whose mortgage will fall on buildings under construction or rehabilitation may be subject to a calendar agreed with the lender in the light of the execution of the works or the investment and the evolution of the sales or the allotment of the dwellings. "

2. Article 10 of Law 2/1981 of 25 March of Regulation of the Mortgage Market is worded as follows:

" Article 10.

Mortgages registered in favor of the entities referred to in Article 2 may be terminated or challenged only in accordance with the provisions of Article 71 of Law 22/2003, of July 9, Bankruptcy, by the administration (a) the court of first instance, which must prove the existence of fraud in the levy. In any case, the rights of the third party in good faith shall remain safe. "

3. The seventh paragraph of Article 15 of Law 2/1981 of 25 March of Regulation of the Mortgage Market is worded as follows:

" In the event of the participation of the issuing entity, the business of the issuance of the participation shall be impeachable only in the terms of Article 10, and, consequently, the holder of that participation shall be entitled to "absolute separation".

4. Two new Articles 26 and 27 are added in Law 2/1981 of 25 March of Regulation of the Mortgage Market, which are worded as follows:

" Article 26.

To be mobilised, in terms and with the requirements to be determined regulatively, the loans or loans guaranteed with first mortgage would be movable or first garment without displacement.

Article 27.

To the securities of the secondary market furniture issued in accordance with the foregoing article, the same rules as provided for in Articles 11 to 18 of this Law shall apply to them, without prejudice to the (a) special provisions which may be established in a regulated manner, but references to the Register of Property shall be construed as referring to the Register of Furniture. "

Article 13. Amendment of Law 2/1994, of 30 March, of subrogation and modification of mortgage loans.

1. Article 2 of Law 2/1994, of 30 March, of subrogation and modification of mortgage loans, is worded as follows:

" The debtor may subrogate another financial institution from those referred to in the previous article without the consent of the lending institution, when to repay the debt, the debtor has borrowed the money from that entity for public writing, (a) stating its purpose in accordance with the provisions of Article 1.211 of the Civil Code.

The entity that is willing to subrogate will submit to the debtor a binding offer containing the financial terms of the new mortgage loan. Where there is more than one credit or mortgage loan registered in favour of the same lending institution on the farm, the new entity shall be subrogated to all of them. The acceptance of the offer by the debtor shall imply its authorization for the offeror to notify, through a notarial conduit, the creditor entity, its disposition to subrogate, and requires it to deliver, within the maximum period of seven calendar days, certification of the amount of the debtor's debit for the mortgage loan or loans in which it is to be subrogated. The creditor entity shall have the right to power the subrogation if, within 15 calendar days, from the notification of the requirement and in response to it, it appears before the same Notary as it has effected the notification referred to in the preceding paragraph and, on a binding basis, expresses its willingness to formalise with the debtor a change in the terms of the loan which matches or improves the binding offer. This event shall be recorded in the notification report itself. Otherwise, in order for the subrogation to have an effect, it is sufficient for the subrogated entity to declare in the same deed to have paid to the creditor the amount credited by it for outstanding capital and accrued interest and commissions. satisfied. A safeguard of the bank operation carried out for this purpose shall be incorporated into the deed, in which it shall be indicated expressly that it is effected for that purpose. The Authorising Notary shall verify the existence of such a bank document supporting the payment to the original lending institution, and that the energy referred to in the preceding paragraph has not been produced, to the end of which the subrogated entity shall submit a copy of the notarial act of notification of the subrogation offer from which it appears that no response has occurred with the effect of enervating the subrogation. However, if the payment has not yet been made because the lending institution has not communicated the amount credited or has refused for any reason to accept its payment, it will be sufficient for the subrogated entity to calculate it, under its responsibility and assuming the consequences of its error, which will not be passed on to the debtor, and, after manifesting it, deposits that sum in the power of the Authorizing Notary of the writing of surrogacy, at the disposal of the creditor entity. To this end, the Notary shall notify the creditor entity of its own initiative, by means of the remission of authorized copy of the writing of subrogation, being able to make an error in the same way, within the next eight days. In this case, and without prejudice to the fact that the subrogation takes all its effects, the Judge who is competent to understand the execution procedure, at the request of the creditor or the subrogated entity, shall cite the latter, within the meaning of eight days, to an appearance, and, after hearing them, shall admit the documents which are presented, and shall agree, within three days, what it considers to be appropriate. The car that will dictate will be appealable in one effect. "

2. Article 4 of Law 2/1994, of 30 March, of subrogation and modification of mortgage loans, is worded as follows:

" Article 4. Public Writing.

1. In the form of subrogation only the modification of the conditions of the interest rate, both ordinary and late, initially agreed or in force, as well as the alteration of the term of the loan, or both, may be agreed.

2. Where the creditor is one of the entities referred to in Article 1 of this Act, the public deed of modification of mortgage loans may relate to one or more of the following circumstances:

i) capital increase or reduction;

ii) the alteration of the term; (iii) the terms of the interest rate initially agreed or in force; (iv) the method or system of amortisation and any other financial terms of the loan; (v) the benefit or amendment of personal guarantees.

3. The amendments provided for in the preceding paragraphs shall in no case entail an alteration or loss of the registered mortgage range except where they involve an increase in the mortgage liability figure or the extension of the time limit. of the loan for this increase or extension. In these cases, you will need acceptance by registered rights holders with a later rank, in accordance with the current mortgage regulations, to maintain the rank. In both cases, they shall be entered in the Register by way of a note on the margin of the mortgage which is the subject of amending novation. In no case shall it be possible to do so when the request for information on the outstanding amount for subsequent loads is recorded. '

Additional disposition first. Reverse mortgage regulation.

1. For the purposes of this Law, the reverse mortgage shall mean the loan or credit secured by mortgage on a immovable property constituting the applicant's habitual dwelling and provided that it meets the following requirements: (a) the applicant and the beneficiaries that he/she may designate are persons of age equal to or greater than 65 years of age or of severe dependency or heavy dependence,

(b) the debtor has the amount of the loan or credit by means of periodic or single provisions, (c) the debt is only payable by the creditor and the enforceable guarantee when the borrower dies or, if so stipulated in the contract, where the last of the beneficiaries is deceased, (d) that the mortgaged dwelling has been assessed and insured against damages in accordance with the terms and conditions laid down in Articles 7 and 8 of Law 2/1981 of 25 March 1981, Regulation of the Mortgage Market.

2. The mortgages referred to in this provision may only be granted by credit institutions and by the insurance companies authorized to operate in Spain, without prejudice to the limits, requirements or conditions that the institutions may grant to entities. insurers, impose their sectoral rules.

3. The system of transparency and marketing of the reverse mortgage will be established by the Minister for Economic Affairs and Finance. 4. Under the scheme of transparency and protection of customers, the entities set out in paragraph 2 which grant reverse mortgages must provide independent advisory services to applicants for this product, taking into account the the financial situation of the applicant and the economic risks arising from the subscription of this product. Such independent advice should be carried out through the mechanisms to be determined by the Minister for Economic Affairs and Finance. The Minister for Economic Affairs and Finance will establish the conditions, form and requirements for the performance of these advisory functions. 5. The death of the mortgage debtor's heirs or, if this is stipulated in the contract, the death of the last of the beneficiaries, may cancel the loan, within the stipulated period, paying the mortgage creditor the entire debited debts, with their interest, without the creditor being able to demand compensation for the cancellation. In the event that the mortgaged property has been voluntarily transmitted by the mortgage debtor, the creditor may declare the anticipated maturity of the secured loan or credit, unless the guarantee is replaced in a manner sufficient. 6. When the loan or credit regulated by this provision is extinguished and the heirs of the mortgage debtor decide not to repay the due debits, with their interest, the creditor may obtain only to the extent that they reach the goods of the inheritance. For these purposes, the provisions of the second paragraph of Article 114 of the Mortgage Law shall not apply. 7. They shall be exempt from the gradual quota of notarial documents in the form of documented legal acts of the Tax on Transmissions and Legal Acts Documented the public scriptures documenting the operations of the constitution, subrogation, modification and cancellation. 8. For the calculation of the notary fees of the scriptures of constitution, subrogation, modification and cancellation, the corresponding duties will be applied to the "Documents without amount" provided for in the number 1 of the Royal Decree 1426/1989, of 17 November, for which the tariff of the Notaries is approved. 9. For the calculation of the registration fees of the constitution, subrogation, modification and cancellation, the duties corresponding to the number 2, "Inscriptions", of Annex I to the Royal Decree 1427/1989, of 17 of November, for which the tariff of the registrars of the Property is approved, based on the figure of the capital to be amortized, with a reduction of 90 percent. 10. Inverse mortgages may also be used for any other immovable property other than the applicant's habitual dwelling. These reverse mortgages do not apply to them in the preceding paragraphs of this provision. 11. As not provided for in this provision and its implementing rules, the reverse mortgage shall be governed by the provisions of the legislation which shall apply in each case.

Additional provision second. Regulation on dependency insurance.

1. The coverage of the dependency may be used either through an insurance contract concluded with insurance companies, including social security funds, or through a pension scheme.

2. The coverage of the dependency carried out through a contract of insurance compels the insurer, in the case of the situation of dependence, in accordance with the provisions of the regulatory norms of the promotion of the personal autonomy and care for persons in a situation of dependence, and within the terms established in law and in the contract, to the fulfilment of the agreed benefit in order to attend, in whole or in part, directly or indirectly, the adverse consequences for the insured person arising from such a situation. The dependency insurance contract may be used for both individual and collective policies. In the absence of an express rule concerning the insurance of dependency, it shall be applicable to the rules governing the insurance contract and the rules governing the management and supervision of private insurance. In accordance with the provisions of Article 6 of the recast of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October, the insurance companies must have the required administrative authorisation and other requirements necessary for the development of the insurance activity in Spain in the classes of life or disease. For the purposes of the coverage of the contingency of the dependence on the mutual social security funds, the provisions of Articles 64, 65 and 66 of the Recast Text of the Law on the Management and Supervision of Private Insurance, approved, shall apply. by Royal Decree-Law 6/2004 of 29 October, and its regulatory framework for development. 3. Pension plans that provide for the coverage of the dependency contingency shall be expressly collected in their specifications. In all the non-expressly provided, the Recast Text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002 of 29 November, and its implementing legislation, will be applied.

Additional provision third.

Article 693 (3) of Law 1/2000, of 7 January, of Civil Procedure, shall be amended, which shall have the following wording:

" 3. In the case referred to in the preceding paragraph, the creditor may request that, without prejudice to the fact that the execution takes place over the whole of the debt, the debtor is informed that, until the day indicated for the conclusion of the auction, he may to release the goods by means of the entry of the exact quantity which, by principal and interest, is due on the date of filing of the claim, plus, where appropriate, the maturity of the loan and the interest on late payment producing throughout the procedure and being paid in whole or in part. For these purposes, the creditor may request that it be carried out in accordance with the provisions of Article 578 (2).

If the mortgaged property is a family dwelling, the debtor may still not consent to the creditor, to release the goods by the entry of the amounts expressed in the preceding paragraph. If you have released a good for the first time, you may be released on the second or subsequent occasions, provided that at least 5 years between the date of the release and the date of the request for judicial or extra-judicial payment by the creditor. If the debtor has made the payment under the conditions laid down in the preceding paragraphs, the costs shall be settled, and once the costs have been satisfied, the Court shall decide on the procedure. The same shall be agreed upon when the payment is made by a third party with the consent of the performer. "

Additional provision fourth. Insurance of future income from the constitution of a reverse mortgage.

The periodic provisions which the beneficiary may obtain as a result of the formation of a reverse mortgage may be allocated, in whole or in part, to the procurement of an insured forecast plan, in the terms and the conditions laid down in Article 51 (3) of Law 35/2006 of 28 November of the Tax on the Income of the Physical Persons and the partial modification of the laws of the Taxes on Societies, on the Income of non-residents and on the Heritage. For these purposes, the retirement contingency provided for in Article 51 (3) (b) of the said Law 35/2006 shall be treated as the survivor's survival situation after 10 years after the payment of the first premium of the said forecast plan is assured.

The mathematical provision of the insured forecast plan shall not be eligible for mobilisation to another social forecasting instrument, nor may the consolidated rights or mathematical provisions of other systems be mobilised on that basis. of social security.

Additional provision fifth. Special rules for assessing the property provisions for the purposes of determining the economic capacity of applicants for dependency benefits.

1. For the purposes of determining the economic capacity of the applicant for the benefits provided for in Law 39/2006 of 14 December of the Promotion of personal autonomy and care for persons in a situation of dependency, the property provisions made in the four years preceding the filing of the application, whether for consideration or free of charge, in favour of the spouses, persons with similar affectivity to the spouse or relatives up to the fourth The following rules shall apply: (a) In the provisions of goods, the incorporation of real rights on them, or the waiver of rights, the value of such goods or rights for the purposes of the Heritage Tax shall be computed as the economic capacity of the applicant; by deducting from it, in the event that there had been a provision for consideration for consideration, the consideration received, provided that there is evidence of its effective receipt.

(b) In the case of renouncement, pensions and, in general, any periodic performance, if it has been carried out free of charge, shall be counted as if it continues to be perceived. If the waiver has been onerous, the applicant's economic capacity shall be calculated as the difference between the capitalised value of the income foregone and the consideration received in accordance with the provisions of the Tax on the Heritage, as long as there is evidence of its effective reception. (c) Where the provision has been made through the increase of debts or obligations, if they have been contracted for free, they shall not be taken into account in order to reduce the economic capacity of the applicant. If they have been contracted for consideration, only the economic capacity of the applicant shall be reduced to the value for the purposes of the Heritage Tax granted to the goods or rights received in return.

These rules do not affect the computation of the property of the applicant for those goods or rights obtained as a result of the provisions to which we have just referred and which are in their patrimony at the time of the application for the benefit. The valuation of these goods or rights shall be carried out according to their nature, in a manner analogous to the rest of their assets.

2. In the Conventions between the State and the Autonomous Communities referred to in Article 9 of Law 39/2006, of 14 December, of the Promotion of personal autonomy and care for persons in a situation of dependence, a clause shall be incorporated with the contents of the previous paragraph.

Additional provision sixth. "33rd America Cup" event.

One. Quota allowances for contract workers as a result of the "33rd Copa del América". -Legal persons constituted on the occasion of the event by the organizing entity of the "33rd America's Cup" or the participating teams will have a 100 percent bonus on social security contributions for common contingencies, temporary incapacity arising from them, as well as the concepts of joint collection with the Social security, in respect of the workers employed for the performance of tasks directly related to their participation in the said event.

Within two months of the entry into force of the Law, a Regulation shall be adopted by Royal Decree laying down the conditions, time limits, the procedure for granting and the control measures relating to the aforementioned bonus. Two. Granting of visas and driving licences.

1. The Government is enabled to regulate the procedure necessary for the granting of visas, work and residence permits and residence cards on a community basis for participants in the "33rd World Cup". America ", as well as the members of the organization and the family members of both.

An "ad hoc" office in Valencia will be established for this purpose. The validity of the authorizations and cards granted to these foreigners will be valid until the end of their stay in Spain on the occasion of the celebration of the said test. 2. The Government is enabled to establish a simplified procedure for the exchange of driving licences for persons who credit their legal residence in Spain and their connection with the celebration of the "33rd Copa del América".

Three. "33rd America's Cup". -The Government of the Nation and, where appropriate, the various Ministries in the sphere of their respective competences, shall adopt the initiatives, provisions, acts and other measures deemed necessary to attend to the to the commitments derived from the organization and celebration of the "33rd Copa del América" in the city of Valencia.

In the adoption of these measures, the financial commitments assumed by the various public administrations participating in the organization will be met, respecting the proportion agreed upon in the assumption of obligations, thus as the principle of reciprocity in their compliance.

Additional provision seventh. Tax regime for the "33rd Copa del America" event.

One. Tax regime of the organizing entity of the "33rd Copa del América" and the participating teams. 1. Legal persons resident in Spanish territory constituted on the occasion of the event by the organizing entity of the "33rd Copa del América" or by the participating teams shall be exempt from the Tax on Societies for the Income obtained during the event and to the extent that they are directly related to their participation in the event.

The provisions of the preceding paragraph shall also apply to permanent establishments which the organizing entity of the "33rd Copa del América" or participating teams constitute in Spain during the event with reason for their celebration. 2. The tax arrangements provided for in the preceding number shall also apply to permanent institutions and establishments which, having been entitled to the application of the tax arrangements provided for in paragraph 2 of the additional provision The fourth of Law 62/2003, of December 30, of fiscal, administrative and social measures, for having been constituted for the occasion of the event "Copa America 2007", continue its activity in relation to the "33rd Copa del América". 3. The non-profit entities incorporated in the event by the organizing entity of the "33rd Copa del América" or by the participating teams will have, during the event, the consideration of entities beneficiaries of the patronage for the purposes of the provisions of Articles 16 to 25, both inclusive, of Law 49/2002, of 23 December, of tax regime of the non-profit entities and of the tax incentives to the patronage. 4. The amounts paid by the sponsors or sponsors to the organizing entity of the "33rd America's Cup" or to the participating teams, which have the consideration of propaganda and publicity expenses of the multi-annual projection, will be for the purposes of calculating the limit laid down in the second paragraph of the first paragraph of Article 27.3 of Law 49/2002 of 23 December on the taxation of non-profit-making entities and of tax incentives for sponsorship.

Two. Tax regime of persons providing services to the organising organisation or to the participating teams.

1. The income received by natural persons who provide their services to the organising organisation or participating teams other than residents of Spain, obtained during the event of the event, shall not be deemed to have been obtained in Spain. to the extent that they are directly related to their participation in the "33rd Copa del América".

2. The natural persons referred to the previous number who acquire the condition of taxpayers for the Income Tax of the Physical Persons as a result of their displacement to Spanish territory on the occasion of this event, apply a reduction of 65% on the net amount of the income received from the organising body or the participating teams during the event of the event and to the extent that they are directly related to their participation in the same. 3. The tax arrangements provided for in this paragraph shall apply to natural persons who have been entitled to the application of the tax system provided for in paragraph 3 of the additional Article 30 (4) of Law 62/2003, December 30, of fiscal, administrative and social order measures, for having provided services to the organizing entity of the event "Copa America 2007" or to the participating teams, and to provide their services to the organizing organization of the event "33rd America's Cup" or the participating teams.

Three. Customs and tax arrangements applicable to goods imported for the purpose of the development and conclusion of the "33rd Copa del América".

1. As a general rule, the customs procedure applicable to goods imported for use in the holding and development of the "33rd America's Cup" shall be the one resulting from the provisions of the Community Customs Code, adopted by Council Regulation (EEC) No 2913/92 of 12 October 1992 and other implementing customs legislation.

2. Without prejudice to the foregoing and in accordance with Article 140 of the Community Customs Code and Article 7. of the Convention on Temporary Importation, made in Istanbul on 26 June 1990, the goods referred to in No 1 of this Convention shall be paragraph which is linked to the customs procedure for temporary importation may remain under that procedure for a period of up to 48 months from the date of its connection, which shall in any event expire on 30 June of the following year at the latest. of the end of the last regatta. In any event, the goods imported in their day for use in the event "Copa America 2007" which, at the date of entry into force of this Law, continue to be linked to the temporary importation regime under the conditions Four of the additional thirty-fourth provisions of Law 62/2003, of 30 December, of fiscal, administrative and social measures, and are intended to be used in the event "33rd America's Cup", shall be automatically considered to be linked to the temporary importation procedure under this paragraph, with compliance with the conditions and requirements laid down therein, provided that the beneficiaries submit a declaration to the Customs Office of the Control of the Scheme. In such a case, the calculation of the maximum period referred to in the preceding number shall start from the submission of that declaration. 3. The Customs and Excise Department of the State Tax Administration Agency is hereby authorized to take the necessary measures for the implementation of the provisions of this paragraph.

Four. Value added tax.

1. By way of derogation from the second subparagraph of Article 119 (1) (2) of Law No 37/1992 of 28 December 1992 on the value added tax, the requirement of reciprocity in the refund to employers or employees shall not be required. professionals not established in the Community who bear or satisfy taxes as a result of the conduct of operations related to the holding of the "33rd America's Cup".

2. Employers or professionals who are not established in the territory of application of the tax that bear or satisfy quotas as a result of the conduct of operations related to the "33 Copa del América" shall be entitled to the refund of such shares at the end of each settlement period. For such entrepreneurs or professionals, the settlement period shall coincide with the calendar month, and shall submit their statements-settlements during the first 20 calendar days of the month following the settlement period. However, the statements-settlements listed below shall be submitted within the special time limits mentioned:

1. The corresponding to the settlement period of July, during the month of August and the first twenty calendar days of September immediately thereafter.

2. The corresponding to the last period of the year, during the first thirty calendar days of January.

The provisions of this number shall also apply to the event organizer, the participating teams and the legal persons referred to in paragraph 1 of paragraph 1 above.

3. With regard to transactions relating to goods linked to the temporary importation procedure with total exemption from duties, as referred to in paragraph 3 above, the provisions of Article 24 of the Tax Act shall apply. 4. The period referred to in paragraph 3 (g) of Article 9 (3) of the Tax Act shall be, in respect of goods temporarily used for the holding and development of the "33 th Copa del América", that provided for in No 2 of the paragraph Four above. 5. The rule laid down in Article 70 (2) of the Tax Act shall not apply to the services listed in point (B) of paragraph 5 of paragraph 1 of that Article where they are provided by legal persons. resident in Spain constituted on the occasion of the event by the organizing entity of the "33rd Copa del América" or by the participating teams and are in relation to the organization, the promotion or the support of such event. 6. The provisions of this paragraph shall also apply to legal persons resident in Spain and permanent establishments which, having been constituted on the occasion of the event "Copa America 2007" by the organizing body of the same or the participating teams, continue their activity in relation to the "33rd Copa del América".

Five. Special Tax on Certain Means of Transport.-The obligation of registration in Spain provided for in the additional provision of Law 38/1992, of December 28, of Excise Excise, will not be required in relation to the vessels and recreational vessels or nautical sports vessels used in the Spanish territory by the organizing entity of the "33rd Copa del América" or by the teams participating in the event. However, after the end of the event, the registration obligation referred to above shall be due after the period referred to in the first subparagraph of Article 65 (1) (d) of that Law.

Six. Tax regime of the Valencia Consortium 2009.-The Valencia 2009 Consortium will be considered a beneficiary of the sponsorship for the purposes provided for in Articles 16 to 25, inclusive, of Law 49/2002, of 23 December, of the tax regime of the non-profit-making entities and tax incentives for patronage. Seven. Rates and public prices. -With effect from 1 January 2008 and up to 12 months from the day following the end of the last regatta, the Valencia Consortium 2009, the private law entities created by him to serve as support for their purposes, entities holding the rights of exploitation, organisation and management of the "33rd Copa del América" and the entities constituting the participating teams shall be exempt from the obligation to pay the following fees and rates, in relation to the activities of preparation, organisation and celebration of the event:

1. State rates. 1.1 Rates of Law 48/2003, of 26 November, of economic regime and provision of services of ports of general interest: Rate for private occupation of the port public domain.

Rate for special use of port facilities. Rate of vessel. The rate of sport and recreational craft. Passage rate. Rate of the goods. Fee for the special use of public domain in the exercise of commercial, industrial and service activities. Fee for general services. Fee for maritime signalling service.

1.2 Rates of Law 32/2003 of 3 November, General Telecommunications:

Overall operator rate.

Telephone numbering rate. Fee for the reservation of radio public domain. Telecommunications charges.

1.3 Rates of Law 22/1988, of July 28, of Costas. Fees in relation to the occupation or use of the state land-based maritime public domain under a concession or authorisation.

Rates as a consideration of activities performed by the Administration.

1.4 Rate by private use or special use of assets of the state public domain. 2. Local rates.

Rate by private use or special use of local public domain.

Rate for the provision of services or performance of local administrative activities.

3. Fees for services of Law 48/2003, of November 26, of Economic and Services Regime of the Ports of General Interest.

Fee for commercial services provided by the port authorities.

Fees for basic port services. Fee for the service of reception of ship-generated waste.

The entities referred to in the first subparagraph of this paragraph, in relation to the activities listed in that subparagraph, shall not be required to provide interim, definitive and final guarantees. (a) operating under the said Law 48/2003.

The 2009 Valencia Consortium and the private law entities created by it to serve as support for its purposes will be entitled to the benefits in terms of fees and notarial and registration fees provided for Administrations that integrate it.

Eight. Tax on Successions and Donations.

1. "Mortis causa" and the sums received by the beneficiaries of life insurance shall not be subject to the Tax on Successions and Donations, where the person or beneficiary has acquired the residence in Spain as consequence of their movement to that territory on the occasion of the "33rd Copa del América" celebration.

The non-subjection provided for in the preceding paragraph shall be valid until 12 months from the day following the end of the last regatta and may be credited by certification, which shall be issued by the Consortium Valencia 2009. 2. The tax arrangements provided for in the preceding number shall apply to those who have acquired the residence in Spain as a result of their movement to that territory on the occasion of the holding of the "Cup". America 2007 ", for having provided its services to the organizing entity of the event" Copa America 2007 "or to the participating teams, and to provide its services to the organizing entity of the event" 33rd Copa del América " or to the teams participants.

Single transient arrangement. Transitional arrangements.

1. As long as the regulatory development referred to in Article 17 (1) of Law 2/1981 of 25 March of Regulation of the Mortgage Market is concerned, institutions may not issue mortgage bonds in excess of 90 percent. (i) a total of EUR 1 million in the form of loans.

2. As long as the regulatory development of the second paragraph of Article 9 of this Law does not occur, the reference interest rate to be used to calculate whether there is a capital gain for the purposes of that paragraph, irrespective of whether or not of the residual term of the mortgage loan or credit, shall be the current rate of domestic performance on the secondary market of the public debt with residual maturity between 2 and 6 years, as regulated in the Resolution of the General Directorate of the Treasury and Financial Policy of 5 December 1989. 3. The extension of capital, without alteration or loss of rank of the registered mortgage, in the terms provided for in Article 13 (2) of this Law, for which the new wording is given to Article 4 of Law 2/1994, of 30 March, subrogation and modification of mortgage loans, shall only apply to mortgages incorporated from the entry into force of this Law.

Repeal provision.

The entry into force of this Law is hereby repealed: (a) The additional provision of Law 3/1994 of 14 April, which adapts the Spanish legislation on credit institutions to the Second Directive of the European Communities on the banking coordination and other changes to the financial system are introduced;

b) The second paragraph of Article 9 of Law 2/1994, of March 30, of subrogation and modification of mortgage loans. The provisions of this Law shall also be repealed as many provisions of the same or lower rank.

Final disposition first. Amendment of Law 3/1994 of 14 April, adapting the Spanish legislation on credit institutions to the Second Banking Coordination Directive.

New wording is given to the third subparagraph of paragraph two of the fifth additional provision of Law 3/1994 of 14 April, adapting Spanish legislation on credit institutions to the Second Directive of the European Banking coordination that happens to have the following literal tenor:

" The entities referred to in Article 2 of Law 2/1981 of March 25, of Regulation of the Mortgage Market, may involve third parties in all or part of one or more loans or mortgage loans of their portfolio, although these loans or loans do not meet the requirements set out in Section 2. These securities, referred to as 'mortgage transfer certificates' may be issued for placement between qualified investors or for their pool in asset-backed securities. These certificates shall apply to them the rules which are laid down in Law 2/1981 of 25 March, except as provided for in this paragraph. '

Final disposition second. Amendment to the recast of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October.

The articles listed below in the Recast Text of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October, are amended as follows: One. Article 6 (2) (a) is worded as follows:

" 2. Disease (including health care and dependency).

The benefits in this class can be fixed, repair and mixed of both. "

Two. Article 6.2.A (a) is worded as follows:

"(a) Life insurance, both for death and survival, or both together, including in the survival of income insurance; insurance on life with insurance;" marriage " insurance, and insurance 'birth'. It also includes any of these insurance when they are linked to investment funds. You can also understand dependency insurance. "

Three. Article 6.2.B (d) is worded as follows:

"(d) Where the supplementary branch is the disease, which does not include health care benefits or dependency assistance."

Four. The first paragraph of Article 65.1 is amended, which is worded as follows:

" In the provision of risks to people, the contingencies that they can cover are those of death, widower, orphan, retirement, and dependency, and will guarantee economic benefits in the form of capital or income. They may also grant benefits on grounds of marriage, maternity, children and death. And they may carry out accident and invalidity insurance operations for work, sickness, legal protection and assistance, as well as provide family support for the provision of reasons for reasons of fact or legal acts which temporarily impede the exercise of the profession. "

Final disposition third. Amendment of the Law on the Movable Mortgage and Garment Without Displacement of Possession, of 16 December 1954.

1. Article 2 of the Law on the Movement of the Mortgage and Press is amended without posting of possession, of 16 December 1954, which is worded as follows:

" 1 (new). The pact must not be effective in order not to remortgage or to pay for the property already mortgaged or pledged, so it may constitute a mortgage and garment without displacement of possession on goods that are already mortgaged or pledged, even if they are with the pact not to remortgage or to beg.

You may also be a mortgage or non-posting mortgage on the same mortgage or garment right and on foreclosed assets or the purchase price of which is not fully satisfied. This paragraph shall be without retroactive effect. '

2. A paragraph 4 is introduced to Article 8 of the Law on the Movable Mortgage and Garment Without Displacement of Possession, of 16 December 1954, with the following tenor:

"Credit secured with a movable or non-posting mortgage may serve as a cover for secondary market share issues."

3. Paragraphs 2 and 3 are inserted in Article 54 of the Law on the Movable Mortgage and Garment Without Displacement of Possession, of 16 December 1954, with the following wording:

" Credits and other rights that correspond to the holders of contracts, licenses, concessions or administrative grants may be held without displacement provided that the law or the corresponding title of constitution authorize their disposal to a third party. Once the garment has been established, the Registrar shall inform the competent Public Administration of this fact by means of a certificate issued for this purpose.

Credit rights, including future claims, provided that they are not represented by securities and do not have the consideration of financial instruments for the purposes of the provisions of Royal Decree 5/2005 of 11 March 2005, Urgent reforms to boost productivity and improve public procurement will also be able to be subject to non-posting. For their effective constitution they must register in the Register of Furniture. "

Final disposition fourth. Amendment of Law 35/2007 of 15 November establishing the deduction by birth or adoption in the Income Tax of the Physical Persons and the economic benefit of the single payment of Social Security by birth or adoption.

With effect from the entry into force of Law 35/2007 of 15 November establishing the deduction for birth or adoption in the Income Tax of the Physical Persons and the single payment of the economic benefit of Social Security by birth or adoption, new wording is given to the first subparagraph of paragraph three of the first provision, which shall have the following literal wording: " Three. Article 103 (1) and (2) are amended, which shall be drawn up in the following terms. "

Final disposition fifth. Food Payment Guarantee Fund.

The Guarantee Fund created and initially provided in the additional fiftieth third of Law 42/2006, of December 28, of General State Budgets for the year 2007, will comply with the following rules: 1. The State shall be subrogated in full, up to the total amount of the payments satisfied to the person concerned, to the rights which are paid to it in respect of the payment of the food, with the amount being considered as a public right, and its collection shall be carried out in accordance with the provisions of the General Budget Law. The amounts to be reintegrated into the State by its recipient shall be equal to the nature and scheme of recovery. In both cases, its executive period collection shall be carried out through the administrative award procedure.

Public appropriations for reimbursements against the obligation to pay food shall preferably be granted on loans arising from maintenance obligations for periods prior to which the advance covers the advance, in respect of the the goods and rights which are shown on the basis of the action of the State Tax Administration Agency, as well as the amounts generated as a result of its implementation. 2. In order to place in the General Budget of the State for the year 2008 the allocations for the Guarantee Fund of the Food Payment in accordance with the organic membership that will be determined for this Fund, it may be authorized by the Council of Ministers, acting on a proposal from the Minister for Economic Affairs and Finance, the credit transfers resulting from the various budgetary sections concerned. 3. Courts that know of the execution in processes in which food pensions are claimed to be fixed in favour of minors, and which may fall within the scope of the Fund to Guarantee the Payment of Food, will collaborate with the General administration of the State after the payment of advances from the said Fund is notified to them, by means of the relevant information concerning the existence of property, the outcome of the judicial execution and, where appropriate, the improvement of the fortune of the obligation to pay. In order to carry out this obligation, the General Council of the Judicial Branch may issue the necessary regulations and draw up appropriate protocols for the proper coordination of the judicial bodies with the Ministry of Economy and Finance and with the State Tax Administration Agency, so that, once the advance has been recognised, on a provisional or definitive basis, information may be shared on the maintenance of the situation of non-payment of the obligation to provide food, and the rights of repetition or reimbursement corresponding to the State shall be provided.

Final disposition sixth. Amendment of Law 1/2000, of 7 January, of Civil Procedure and of Royal Legislative Decree 2/1995, of 7 April, for which the Recast Text of the Law of Labor Procedure is approved.

First.-Amendment of Law 1/2000, of 7 January, of Civil Procedure. 1. Article 135 of Law 1/2000, of 7 January, of Civil Procedure is amended, which is worded as follows:

" Article 135. Submission of written submissions, for the purposes of the time requirement of procedural acts.

1. Where the submission of a document is subject to a deadline, it may be effected until 15 hours on the working day following the expiry of the period in the common procedural service set up for that purpose or, if the latter does not exist, at the seat of the body. judicial.

2. In proceedings before the civil courts, the submission of written submissions in the Court of Justice shall not be admissible. 3. The official designated for this purpose shall affix the written procedure and any other documents whose filing is subject to the same time as the corresponding stamp on which the Office of the Judicial Office is to be registered. presents and the day and time of the presentation. 4. In any case, the receipt of the written documents and documents shall be given with the expression of the date and time of filing. The receipt of documents and documents in a simple copy submitted by the party may also be recorded. 5. Where the judicial offices and the subjects involved in a process have technical means to enable the sending and normal reception of initiators and other documents and documents in such a way as to ensure authenticity the communication and record of the full remission and receipt and of the date on which they are made, the documents and documents may be sent by those means, being acknowledged in the same way and shall be submitted for the purposes of for the exercise of rights and the performance of duties at the date and time set out in the safeguard accreditable of its presentation. In the event that the filing takes place on a non-working day or time for procedural purposes in accordance with the law, the following working day and hour shall be understood. For the purposes of testing and compliance with legal requirements that require the availability of the original documents or of the authentic copies, the provisions of Article 162.2 of this Law will be included. Where the submission of permanent documents by the technical means referred to in this paragraph is not possible by an unplanned interruption of the telematic or electronic communications service, the sender may proceed to be lodged with the Office on the first working day following the supporting evidence of such interruption. 6. As regards the transfer of the documents and documents, the provisions of Chapter IV of Title I of Book II may be made, but may be effected, to the procurators or to the other parties, as provided for in the preceding paragraph, comply with the requirements it establishes. "

2. Article 151 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 151. Time of communication.

1. All decisions rendered by the Courts or Judicial Secretaries shall be notified within the maximum period of three days from their date or publication.

2. The acts of communication to the State Advocate, the Legal Service of the Administration of Social Security and the Fiscal Ministry, as well as those that are practiced through the services of notifications organized by the Colleges of Procurators shall be held on the day following the date of receipt which is recorded in the diligence or in the proof of receipt thereof where the act of communication has been carried out by the means and with the requirements laid down by the Article 162 (1) of this Law. 3. Where the delivery of any document or office to be accompanied by the act of communication takes place at a later date than the receipt of the act of communication, the act shall be carried out on the record of the delivery of the document, the effects of the communication are linked to the document. '

3. Article 154 (2) of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" 2. The referral and receipt of the acts of communication in this service shall be carried out by the means and with the proof of their receipt referred to in Article 162 (1) of this Law, when the Judicial Office and the College of Procurators have such means.

In another case, the copy of the resolution or the cedula will be sent to the service, in duplicate, of which the prosecutor will receive one copy and sign another one to be returned to the Office of the Judicial Office for the service itself. "

4. Article 162 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 162. Acts of communication by electronic, computer and similar means.

1. Where the judicial offices and the parties or the addressees of the acts of communication dispute electronic, telematic, infottal or other similar means, enabling the sending and receipt of documents and documents, in such a way as to ensure the authenticity of the communication and its content and to be satisfied with the full reference and receipt of the communication and the moment in which they were made, the acts of communication may be carried out by those means, with the supporting certificate of its receipt, as appropriate.

The parties and the professionals involved in the process must inform the judicial offices of the fact that they have the means indicated above and their address. The Ministry of Justice shall also provide an electronically accessible register of the means indicated and the addresses of the public bodies. Where the correct referral of the act of communication by those technical means, except those carried out through the service of notifications organised by the Schools of Proctors, has been carried out, three days shall elapse without the addressee access to its content, the communication shall be understood to have been attempted without effect and shall be delivered in the form set out in Article 161. However, if the time has elapsed, but before the communication is made by delivery, the communication shall be validly understood on the date on which the certificate of receipt of its receipt is lodged. 2. Where the authenticity of decisions, documents, opinions or reports submitted or transmitted by the means referred to in the preceding paragraph may be recognised or verified only by direct examination or by other procedures, may, however, be submitted in electronic form by means of digitised images of the same, in the form provided for in Articles 267 and 268 of this Law, but, if any of the parties, the court in the family proceedings, incapacity or filiation, or the Prosecutor's Office, so request, those in their original paper support, within the time limit or procedural time to which it is indicated. "

5. Article 267 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 267. Form of presentation of public documents.

Where documents to be provided in accordance with Article 265 are public, they may be submitted by a simple copy, either on paper or, where appropriate, by electronic means of a digitised image. incorporated as an annex to be signed by a recognised electronic signature and, if its authenticity is contested, may be taken to the original cars, copies or certification of the document with the necessary requirements for its effects. evidentiary. "

6. Article 268 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 268. Form of presentation of private documents.

1. The private documents to be provided shall be submitted in original form or by a copy authenticated by the competent public authority and shall be attached to or bear witness to the autos, with the return of the original or certified copies. submitted, if requested by the interested parties. These documents may also be submitted by means of digitised images, incorporated in electronically signed annexes.

2. If the party only has a simple copy of the private document, it may present it, either on paper or by digitised image in the form described in the previous paragraph, which will have the same effects as the original, provided that the the conformity of the latter is not disputed by any of the other parties. 3. In the event that the original of the private document is in a file, protocol, file or public record, authentic copy shall be filed or the file, protocol or registration shall be designated, as provided for in paragraph 2 of the article 265. '

7. Article 274 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 274. Transfer by the Court of copies to other interested parties, where no prosecutors are involved.

When the parties are not represented by the Procurator, they shall sign copies of the documents and documents they submit, in response to their accuracy, and such copies shall be delivered by the Secretary of the Judiciary to the party or parties. contrary.

The filing and transfer of the copies may be made by the media and with the proof of their receipt referred to in Article 135 (5) of this Law, when the budgets and requirements are met. which it establishes. "

8. Article 276 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 276. Moving copies of documents and documents when you intervene. Transfer by the Judicial Secretary of the document of demand and analogues.

1. Where all the parties are represented by the Procurator, each of them must forward copies of the documents and documents to be submitted to the Court of the other parties before the procurators of the other parties.

2. The Office of the Prosecutor shall carry out the transfer by giving the service of receipt of notifications referred to in Article 28 (3), copies or copies of the documents and documents, which shall be sent to the procurators of the other parties and litisconortes. The official designated for this purpose shall receive the copies submitted, which shall, after being dated and sealed, give the person in charge of the service, the first of which must be signed by the first person to justify the transfer. Such supporting documents shall be supplied together with the documents and documents submitted to the Court. Where the technical means referred to in Article 135 (5) and (6) of this Law are used, the transfer of copies shall be made simultaneously to the telematic presentation of the document and documents in question and shall be understood as the date and time recorded in the proof of his presentation. In the event that the transfer takes place on a non-working day and time for procedural purposes in accordance with the law, the following working day and hour shall be understood. 3. The provisions of the foregoing paragraphs of this Article shall not apply in the case of the transfer of the claim or any other document which may give rise to the first appearance in judgment. In such cases, the Procurator shall accompany copies of such writings and of the documents accompanying them and the Secretary-Judicial shall carry out the transfer in accordance with the provisions of Articles 273 and 274 of this Law. If the Ombudsman fails to submit these copies, the written submissions shall be made for the purposes of the submission or the documents for which they are not provided for all purposes. "

9. Article 278 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 278. Effects of the transfer with respect to the course and time limits.

Where the act of transfer in the form laid down in Article 276 determines, in accordance with the law, the opening of a period for the conduct of proceedings, the time limit shall commence without intervention by the Court and shall be taken into account from the day following the date on which the copies delivered or the date on which the transfer is understood to have been made are recorded when the technical means referred to in paragraphs 5 and 6 are used. Article 135 of this Law. "

10. º Article 318 of Law 1/2000, of January 7, of Civil Procedure, is worded as follows:

" Article 318. Mode of production of the test by public documents.

Public documents shall have the evidential force laid down in Article 319 if they are provided to the process in original or by copy or certified certification, whether they are submitted on paper or by document. electronic, or if, having been contributed by a simple copy, on paper or digitised image, as provided for in Article 267, its authenticity has not been contested. '

Second.-Amendment of the Royal Legislative Decree 2/1995 of 7 April, approving the recast of the Law of Labor Procedure.

1. Article 44 of the Royal Legislative Decree 2/1995, of 7 April, is amended, by which the recast text of the Law of Labor Procedure is adopted, which is worded as follows:

" Article 44.

1. The parties must present all the documents and documents in the Records of the Courts and the Chambers of the Social.

2. Where the judicial offices and the subjects involved in a process have technical means to enable the sending and the normal receipt of written initiators and other documents and documents in such a way as to ensure the authenticity of the the communication and the record of the full remission and receipt and of the date on which they are made, the documents and documents may be sent by those means, with the proof of their presentation as appropriate, in accordance with the with the provisions of Article 135 (5) of the Law on Civil Procedure.

2. Article 46 of the Royal Legislative Decree 2/1995, of 7 April, approving the recast text of the Law on Labour Procedure, is worded as follows:

" Article 46.

1. In the submission of documents and documents, the official designated for this purpose shall affix the corresponding stamp to which the Office of the Judicial Office shall be registered and the day and time of the filing. In any event, the person concerned shall be given such an indication. The receipt of documents and documents in a simple copy submitted by the party may also be recorded. Where the technical means referred to in Article 44 of this Law are used, the system shall return the person concerned to the proof of the presentation in the Office of the Court of Justice, as appropriate, in accordance with the provisions of paragraph 5 of this Law. Article 135 of the Law on Civil Procedure.

2. On the same day or on the following working day, the Secretary of the Judiciary shall give the written and documents the appropriate course. "

3. Article 56 of the Royal Decree of Law 2/1995 of 7 April, approving the recast text of the Law on Labour Procedure, is worded as follows:

" Article 56.

1. The summons, notices and sites which are carried out outside the seat of the Office of the Court shall be made, whatever the addressee, by registered post with acknowledgement of receipt, with the Registrar in the file of the contents of the on remitted, and by joining them the acknowledgement of receipt.

2. On the outside of the envelope, the warnings contained in Article 57.3 of this Law shall be stated to the recipient in case he is not the person concerned. 3. The date of delivery shall be entered in the acknowledgement document and shall be signed by the postal officer and the recipient. If the person concerned is not the person concerned, his name, identification document, address and his/her relationship with the consignee shall be entered. 4. Communication may be made available through the telegraph service or by any other suitable means of communication or transmission of texts if the parties concerned provide the indicative data for use. Appropriate measures shall be taken to ensure the receipt of the act communicated which shall be recorded in the file. 5. Where the communication takes place using electronic, telematic, infottal or other similar means, it shall be carried out in accordance with Article 162 of the Law on Civil Procedure. "

Final disposition seventh. Amendment of Law 29/1987 of 18 December of the Tax on Successions and Donations.

Article 34 of Law 29/1987 of 18 December of the Tax on Successions and Donations is amended to read as follows:

" Article 34. General rules.

1. The jurisdiction for the management and settlement of the tax shall be the responsibility of the Delegations and the Finance Administrations or, where appropriate, the offices with similar functions of the Autonomous Communities which have the management of the tax.

2. The Autonomous Communities will be able to regulate the aspects of the management and liquidation of this Tax as provided for in Law 21/2001 of 27 December, regulating the fiscal and administrative measures of the new financing system of the Autonomous Communities of the common regime and cities with the Statute of Autonomy. Where the Autonomous Community has not regulated such aspects, the rules laid down in this Law shall apply. 3. By way of derogation from the previous paragraph, the jurisdiction to establish the system of self-settlement of the tax is compulsory for the State, which will introduce into the Tax Law the Autonomous Communities in which it is established. (a) 4. In accordance with the provisions of the previous paragraph, the system of self-settlement of the tax is established on a compulsory basis in the following Autonomous Communities:

Autonomous Community of Andalusia.

Autonomous Community of Aragon. Community of Castilla y León. Autonomous Community of Catalonia. Autonomous Community of Galicia. Autonomous Community of the Region of Murcia. "

Final disposition octave. Regulatory enablement.

Without prejudice to the ratings contained in this Law, in particular those referred to the Minister of Economy and Finance, the Government is enabled for the development, implementation and enforcement of the provisions of this Law.

Final disposition ninth. Basic character and competences.

1. This Law shall have the character of basic legislation in accordance with the provisions of Article 149.1.11. and 13. of the Constitution, with the exception of Chapter V, which is exclusively issued under Article 149.1.8. of the Constitution.

2. In addition to the basic character set out in the preceding paragraph, Chapters II, III and VI, the first and second and third final provisions, first and second, are also given in accordance with the provisions of the Article 14th and 8th of the Constitution.

Final disposition tenth. Entry into force.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State".

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 7 December 2007.

JOHN CARLOS R.

The President of the Government, JOSÉ LUIS RODRÍGUEZ ZAPATERO