Royal Decree 692/1996, Of April 26, On The Legal Regime Of Financial Credit Establishments.

Original Language Title: Real Decreto 692/1996, de 26 de abril, sobre el régimen jurídico de los establecimientos financieros de crédito.

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This Royal Decree is intended to develop the legal regime of financial establishments of credit, whose basic aspects were defined in the first additional provision of Act 3/1994, of 14 April, which adapts the Spanish legislation on credit institutions to the second banking coordination directive and introduces other amendments concerning the financial system , and the additional provision seven of Royal Decree-Law 12/1995 of 28 December, on urgent measures in budget, tax and financial matters that modifies it.

Financial credit establishments constitute a new form of so-called financial institution to replace the various categories of limited operating area credit institutions created under cover of the Real Decree 771/1989, 23 June. Conserved, the legal regime of these latter entities, the status of credit institution, but two important changes are introduced in relation to their possibilities of financing, on the one hand, and with its operational capability, on the other.

Financial credit establishments it prohibited them, despite its status of credit, the collection of repayable funds from the public, in the form of deposit, loan, temporary transfer of financial assets or by other similar means. This limitation allows exempt financial institutions credit from the obligation to adhere to a deposit-guarantee fund and justifies a lower level of demand in terms of the requirements of the activity in relation to those established for other credit institutions, and more specifically to the banks, at the time which forces to anticipate , as it is natural, alternative financing routes.

Financial credit establishments are eliminated the rigid demarcation of its operational capability that characterized the regulation of limited operating area credit institutions, which constitutes a fundamental difference with respect to such entities. You can, consequently, make one or more of the typical activities of credit institutions (granting of loans and credits, «factoring», leasing, issuing and management of credit cards and granting of guarantees and warranties).

The present Royal Decree, in short, and in exercising the powers granted to the Government (7) of the first additional provision of law 3/1994, establishes certain specific aspects of the regulation of financial establishments of credit as credit institutions characterized by its wide operational capability and certain limitations on their ability to attract funding.

Is foreseen, first of all, ways of financing alternatives to the collection of repayable funds from the public, among which stand out the emissions values subject to the law of the stock market and the possibility of titulizar assets pursuant to the regulations applicable to securitisation funds.

Secondly, establishing the system of creation of financial establishments of credit, which is largely accommodated as provided for in Royal Decree 1245 / 1995, of July 14, about creation of banks, cross-border activity and other issues relating to the legal regime of credit institutions. Because of differences presenting financial establishments of credit from banks--referring basically to financing-structure, requirements are flexible to exercise the activity as compared with those charged to the latter. Thus, establishing a minimum share capital lower than required for the creation of banks and reduces the minimum number of members who will have to integrate the Board of Directors of the entity.

Thirdly, the transformation of credit institutions of limited in financial credit establishments operating field, addresses every time that should not opt for their conversion to another type of credit institution, it is the only way to continue to exercise its activity from January 1, 1997.

Is, finally, enter in the Spanish legislation on credit institutions two requirements aimed at strengthening the prudential supervision of financial institutions established in the Directive 95/26/EC, of 29 June, that amending Directives 77/780/EEC and 89/646/EEC, relating to credit institutions; Directives 73/239/EEC and 92/49/EEC, relating to direct insurance other than life assurance; Directives 79/267/EEC and 92/96/EEC, relating to direct life assurance; Directive 93/22/EEC on investment firms and Directive 85/611/EEC, certain bodies for collective investment in transferable securities (UCITS) with a view to reinforcing prudential supervision, which modifies the set of Community directives establishing the single market in banking services, insurance services and investment services in securities markets.

First of all, and in order to avoid a credit institution to opt for the legal system of a Member State of the European Union for the purpose of circumventing the stricter prudential regulations in another Member State where he plans to perform or performs most of its activities, Community legislation requires that any financial entity must be authorized in the Member State in which its registered office is , if the entity is a legal entity, or has its head office in the Member State which has been authorized, if they were not, at the time that establishes the obligation that the central administration of a financial institution is always situated in its home Member State and that entity actually exercised their activities in the same. As a result, is introduced as a requirement for the exercise of the activity of the credit institution in Spain which the institution in national territory both its registered office as its effective administration and management.

Secondly, and to avoid that financial institutions maintain certain ties with other natural or legal persons and the same - or the law applied to persons that are mantienenobstaculicen the proper exercise of prudential supervision, Community legislation establishes requirement to grant or maintain authorization the absence of ties of such a nature. Appropriate, therefore, to introduce as additional requirement for the exercise of the activity of the credit institution in Spain a new criterion of assessment of the suitability of the shareholders holders of significant shareholdings, which may be considered the adequacy requirement is not met when the close links the entity hold - or to keep in cases of authorization-with other natural or legal persons, or the regulations applicable to any of them, hinder the effective exercise of supervision.

By virtue, on the proposal of the Minister of economy and finance, according to the Council of State and after deliberation by the Council of Ministers at its meeting of April 26, 1996, D I S P O N G O: chapter I definition and activities of financial establishments of credit article 1. Definition, activities and reserve designation.

1 financial credit establishments shall be regarded as credit institution and its main activity will consist of exercising one or more of the following activities: to) the loan and credit, including credit to the consumer, mortgage and financing of commercial transactions.

(b)) «factoring», with or without recourse, and the complementary activities of the same, such as research and classification of clients, Daybook of debtors and, in general, any activity that tends to favor the Administration, evaluation, security and financing of claims arising in the national or international commercial traffic that are assigned to them.

(c) those of leasing, with inclusion of the following complementary activities: 1st activities for maintenance and conservation of transferred assets.

2nd concession of financing connected to a leasing business, current or future operation.

3rd brokerage and leasing operations management.

4th activities not leasing that may complement or not with a purchase option.

5th Advisory and commercial reports.

(d) the issuing and management of credit cards.

(e) the Commission of guarantees and warranties and similar commitments.

2. as ancillary activities, financial credit establishments may make any others that are necessary for a better performance of their core activities.

3. the designation of 'financial credit establishment', as well as its abbreviation «E.F.C.», is reserved to these entities, which are required to include in its name.

Article 2. Financial establishments of credit financing.

1 financial credit establishments may not capture repayable funds from the public in the form of deposit, loan, temporary assignment of financial assets or other similar, what ever your destination. As a result, does not apply them deposit-guarantee legislation.

2 a the purpose of the preceding paragraph, will be considering repayable funds from the public: to) the financing granted by credit institutions.


(b) the provision of funds by entities belonging to the same group, this is as defined in article 4 of law 24/1988, of 28 July, the securities market; or by the shareholders of the financial credit establishment which holds a stake of at least 5 per 100 of its capital in it.

(c) emissions values subject to the law of market values and its implementing rules, provided that they are issued for more than one month due.

(d) bonds and other bonds in order to decrease the risks entered into with customers by own its operations.

3. the financial credit establishments may titulizar assets subject to general regulatory of securitisation funds.

Chapter II legal regime of the creation of financial establishments of credit article 3. Authorization and registration of financial credit establishments.

1 it will be up to the Minister of economy and finance, the Bank of Spain report, authorize the creation of financial credit establishments. The activities that you can perform the financial establishment of credit, in accordance with the programme presented by the same shall be specified in the authorization.

2. the application for approval shall be resolved within three months of its receipt in the General direction of Treasury and financial policy, or to the time in which to complete the documentation required, and, in any case, within six months of receipt. When the request is not resolved in the earlier period, may be rejected. For the efficacy of the alleged dismissal, shall request the certification of alleged act referred to in article 44 of the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure.

3. once the authorization and after its Constitution and registration in the register, financial credit establishments must, before starting its activities, be registered in the special register of financial establishments of credit that will be created in the Bank of Spain. Entries in this special register, as well as the casualties thereof, shall be published in the «Official Gazette» and shall be communicated to the European Commission. The authorization may be revoked, if from granting it reacquired a year while the financial establishment of credit start operations for reasons attributable to the promoters.

Article 4. Authorization of financial credit establishments under the control of foreigners.

1. the creation of financial establishments of credit Spanish whose control, in the terms provided for by article 4 of law 24/1988, of July 28, the stock market, it will be exercised by foreigners, is subject to provisions to the effect in this Royal Decree.

2. in the event that the Spanish credit financial establishment control will be exercised by a credit institution authorized in another Member State of the European Union, the parent of one of those bodies, or by the same natural or legal persons that control a credit institution authorised in another Member State, the Bank of Spain before issuing the report referred to in paragraph 1 of article 3, to the authorities responsible for the supervision of the foreign credit institution should consult.

3. in the event that the financial establishment of Spanish credit control is to be exercised by one or more persons, whether or not credit institutions, or domiciled or authorised in a non-Member State of the European Union, will fit to require the provision of a guarantee to the totality of activities of that entity. Authorization may be refused, in addition to the reasons provided for in the preceding articles, when had been communicated to Spain, article 9 of the second directive of Bank coordination, of 15 December 1989, in accordance with a decision taken by the Council of the European Union to see that community credit institutions do not benefit in that State of a treatment that offers the same conditions of competition that its national entities and that the conditions of effective market access are not met.

In this case the Minister of economy and finance may also suspend the granting of the authorisation or limit its effects.

Authorisations granted to financial credit establishments referred to in this paragraph shall be communicated by the Bank of Spain to the Commission of the European Union, specifying the structure of the group to which belongs the controlled entity.

Article 5. Requirements to engage in the activity.

1 will be eligible to obtain and retain the authorization of a financial settlement of credit: to) take the form of joint-stock company formed by simultaneous Foundation and with indefinite duration procedure.

(b) have a minimum of 850 million pesetas, paid up share capital fully effective and represented by shares.

(c) Bylaws limit its social object to the activities of a financial credit establishment.

(d) that holders shareholders of significant shareholdings are considered appropriate, in accordance with the terms provided in this article and in article 7.

e) having a Board of directors consisting of not less than three members. All of them shall be persons of recognized honorability commercial and professional, and must possess, at least two of them, expertise and experience appropriate to exercise its functions. Such honesty, knowledge and experience must also concur in general or similar principals of the entity, as well as individuals representing legal persons who are directors.

There is commercial and professional repute who have been observing a personal history of respect for the commercial law or other governing economic activity and the life of the business, such as commercial, financial and banking practices. In any case, means lacking such repute who have criminal records or are processed, or for the procedure referred to in title III, book IV, of the law of Criminal Procedure, would have rendered auto opening of oral proceedings which were as accused for crimes of perjury, against the public Treasury of infidelity in the custody of documents receiving stolen goods and other related behavior, violation of secrets, embezzlement of public funds, discovery and revelation of secrets or against property; the disabled for office or public administration or direction, financial institutions; and the broken and not rehabilitated processed.

They possess appropriate knowledge and experience to carry out their functions in financial establishments of credit who have played, for a period not less than two years, senior management, direction, control or financial institutions advisory functions or functions of similar responsibility in other entities, public or private, in dimension at least analogous to the entity that is intended to create.

(f) have a good administrative and accounting organization, as well as adequate internal control procedures that ensure the sound and prudent management of the entity. In particular, the governing body must set performance standards and appropriate procedures to facilitate that all members can at all times fulfill its obligations and assume the responsibilities which they are entitled in accordance with the standards of management and discipline of financial establishments of credit, the corporations act or other provisions that are applicable.

(g) having its registered office, as well as its effective administration and management in the national territory.

2 financial credit establishments must meet at all times the requirements laid down in the preceding paragraph and a few own resources not less than 850 million pesetas, excluding those elements referred to in article 20, paragraph 1, paragraph g) and h) of the Royal Decree 1343 / 1992, of November 6. Still: to) due to lack of commercial or professional repute of directors or directors, shall only reversal if those affected do not cease in their posts in a month, counted from the requirement that for this purpose direct you the Bank of Spain. Shall not be deemed that there is a lack of good repute struck by the mere fact that, in the exercise of his office, a counselor or director be indicted or prosecuted for any of the offences referred to in paragraph e) of paragraph 1 above.

(b) shall be revocation for lack of own resources, in the terms set out in this section, if they attain at least four-fifths of the minimum share capital and not hard failure more than twelve months.

3 corresponds to the Bank of Spain the creation and management of a registry of senior financial establishments of credit, where the counselors, Directors General and assimilated them must register mandatory. For the registration in the registration of senior officials, directors and Directors General or assimilated must declare expressly, in the document confirming his acceptance of the position, that meet the requirements of good repute and, where appropriate, professionalism to that referred to in this article, and not found in any of the limitations or incompatibilities to be les application.


Article 6. Requirements of the application.

1 application for authorization for the creation of a financial settlement of credit goes to the General direction of Treasury and financial policy in duplicate and which must be accompanied by the following documents: to) articles of Association project, accompanied by a negative registration certification of the proposed corporate name.

(b) programme of activities, in which specific mode must include the genre of operations that are intended to perform the administrative and accounting organization and internal control procedures.

(c) the relationship of partners that constitute society, with indication of their holdings in the share capital. For partners who have the consideration of legal persons, be given shares in capital representing a percentage higher than 5 per 100. In the case of partners that go to own a significant stake, is it will bring in addition, if they are natural persons, information about his career and professional activity as well as your patrimonial situation; and if they are legal persons, the annual accounts and management report, with audit reports if any, of the last two fiscal years, the composition of its organs of administration and the detailed structure of the group to which they belong eventually.

(d) list of people who have integrated the first Board of Directors and who shall serve as directors general or similar, with detailed information about the career and profession of them all.

(e) justification have been constituted in the Bank of Spain, in cash or in public debt, a deposit equivalent to 20 per 100 of the minimum capital laid down in article 5.

2. in any case, will fit to require developers how much data, reports or records are considered appropriate to verify compliance with the conditions and requirements of this Royal Decree.

Article 7. Denial of the application.

1. the Minister of economy and Finance shall refuse, by a reasoned decision, the authorization of the creation of a financial settlement of credit when the requirements laid down in articles 5 and 6 above are not met and, in particular, when, in response to the need to ensure sound and prudent management of the projected entity, are not considered appropriate the suitability of the shareholders who will have a significant stake in it. For these purposes: to) refers to significant participation in a financial credit establishment that reach, directly or indirectly, at least, 5 by 100 of the capital or of the voting rights of the entity; or which, without reaching the designated percentage, can exercise a significant influence over the same.

((b) the suitability will be appreciated, among other factors, depending on: 1 the commercial and professional honorability of the shareholders, in the sense referred to in article 5, paragraph e). This honesty is always presumed when shareholders are public authorities or bodies of them dependent.

2nd heritage media with that feature these shareholders to meet their commitments.

3rd the transparency in the structure of the group that may eventually belong the entity and, in general, the existence of serious difficulties to inspect or obtain the necessary information on the development of its activities.

4th the possibility that the entity exposed inappropriately, the risk of non-financial activities of its promoters, or when, in the case of financial activities, stability or control of the entity may be affected by the high risk of those.

5 the possibility that the proper exercise of the supervision of the entity is hampered by the close links it kept with other natural or legal persons, the laws, regulations or administrative provisions of the country to whose right is subject any of those natural or legal persons, or problems related to the application of those provisions.

For these purposes, means that there are close ties when two or more natural or legal persons are linked by: 1st a controlling relationship in the sense that determines article 4 of law 24/1988 of the securities market; or 2nd holding, directly or indirectly, or through a controlling relationship, 20 per 100 or more of the voting rights or capital of an enterprise or entity.

2 declined, in your case, request, and without prejudice to judicial resources remedies against the resolution adopted, will proceed by the Bank of Spain to a refund of the deposit made. Also shall be returned in the event of resignation request.

(3. the deposit referred to in paragraph e) of paragraph 1 of article 6 be released once constituted society and registered in the special register of the Bank of Spain, as well as in the event of revocation of the authorization in accordance with the provisions of article 57 bis of the law of banking ordination, on December 31, 1946.

Article 8. Modification of the articles of Association.

1. the modification of the articles of Association of credit financial establishments will be subject to the procedure of authorization and registration provided for in article 3, while application for authorization must be resolved within two months of its receipt in the General direction of Treasury and financial policy or at the time that the required documentation is completed after which can be estimated. For the effectiveness of the alleged estimate is must request certification of alleged act referred to in article 44 of the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure.

2 will not require prior authorization, but they must be reported to the Bank of Spain, in a period not exceeding fifteen working days of the adoption of the corresponding agreement, amendments to the bylaws which have as their object: to) change of domicile within the national territory.

(b) increase in share capital.

(c) incorporate verbatim the bylaws legal or regulatory provisions of imperative or prohibitive character, or fulfil judicial or administrative decisions.

(d) such other modifications regarding which the General Directorate of the Treasury and financial policy, in response to prior consultation formulated to the effect by the financial establishment of affected credit, have considered unnecessary, because of its limited relevance, the application for the authorization.

3. If the communication has been received, modifications exceed than expected in this section, the Bank of Spain warns it stakeholders within the period of thirty days, so they review or, where applicable, comply with the procedure of authorization of paragraph 1.

Article 9. Expansion of activities.

When a financial credit establishment intends to expand its main activities, follow the same procedure as for the amendment of the statutes. The authorization may be refused, in particular, if the entity does not meet the requirements of solvency that apply, or does not have an administrative and accounting organization and internal control procedures appropriate to the new activities.

Article 10. Merger of financial credit establishments.

1. the entity resulting from the fusion of two or more financial institutions of credit may be activities for which fused settlements were authorized.

2. the merger must be authorised by the Minister of economy and finance, in accordance with the procedure laid down in article 8, even though the deadline for the resolution shall be three months.

First additional provision. Regulatory modification.

1 amending the following articles of the Royal Decree 1245 / 1995, of July 14, about creation of banks, cross-border activity and other issues relating to the legal regime of credit institutions: 1 Add a paragraph h) paragraph 1 of article 2 with the following content: «h) having its registered office, as well as its effective administration and management» «, in national territory.»

(2nd a section 5 is added to article 4.1. b) with the following content: «5 the possibility that the proper exercise of the supervision of the entity is hampered by the close links it kept with other individuals or legal entities, by laws, regulations or administrative provisions of the country to whose right is subject any of those natural or legal persons» , or by problems related to the application of those provisions.

For these purposes, means that there are close ties when two or more natural or legal persons are linked by: a) a controlling relationship in the sense that determines article 4 of law 24/1988 of the securities market; (o b) holding, directly or indirectly, or through a controlling relationship, 20 per 100 or more of the voting rights or capital of an undertaking or entity.»

3rd references to paragraph 2 in the last subparagraph of paragraph 4 and paragraph 5 of article 9 are to be made to paragraph 3 of that article.

(4th paragraph a) of paragraph 1 of article 19 is drawn up in the following way:


«a) during the month following each quarter natural, the composition of its capital, relating all the shareholders, in the case of banks and financial establishments of credit, or any holder of contributions, in the case of credit unions, having consideration of financial institutions at the end of that period and who, not being it» «, have registered to its name shares or contributions that represent a percentage of the share capital of the entity equal to or greater than 0.25 per 100, in the case of banks, of 1 per 100 in credit unions, or the 2.50 per 100 in financial credit establishments.»

2 enter the following modifications in the Royal Decree 84/1993, of January 22, which approves the regulation implementing law 13/1989, of May 26, credit unions: 1 added a paragraph g) article 2 with the following content: «g) having its registered office, as well as its effective administration and management» «, in national territory.»

2nd adds a paragraph 2 to article 5 with the following content: «2. the authorization may also be refused when the proper exercise of the supervision of the entity may be hampered by the close links it kept with other individuals or legal entities, by laws, regulations or administrative provisions of the country to whose right is subject any of those natural or legal persons» , or by problems related to the application of those provisions.

«(A estos efectos, se entenderá que existen vínculos estrechos cuando dos o más personas físicas o jurídicas estén unidas mediante: a) a controlling relationship in the sense that article 4 of law 24/1988 of the securities market, or b) the fact of owning, directly or indirectly, or through a controlling relationship, determined 20 per 100 or more of the voting rights or capital of an undertaking or entity.»

3rd the current paragraph 2 of article 5 becomes paragraph 3.

3 the following changes are introduced in the Real Decree 1838 / 1975, of 3 July, creation of savings and distribution of the liquid benefits of these entities: 1 is added to paragraph 1 of article 2 paragraph e) with the following content: 'e) having its registered office, as well as their effective management and direction, in national territory.'

2nd a section 4 is added to article 2 with the following content: «4. the authorization may be refused when the proper exercise of the supervision of the entity may be hampered by the close links it kept with other individuals or legal entities, by laws, regulations or administrative provisions of the country to whose right is subject any of those natural or legal persons» , or by problems related to the application of those provisions.

For these purposes, means that there are close ties when two or more natural or legal persons are linked by: a) a controlling relationship in the sense that determines article 4 of law 24/1988 of the securities market; (o b) holding, directly or indirectly, or through a controlling relationship, 20 per 100 or more of the voting rights or capital of an undertaking or entity.»

Second additional provision. Modification of the Real Decree 685/1982, of 17 March.

Introduces the following changes in the Real Decree 685/1982, March 17, which develops certain aspects of the law 2/1981, dated March 25, regulation of the mortgage market: 1 Add a new paragraph h) to paragraph one of article 2 with the following wording: «h) financial credit establishments. "

2nd is given a new wording to paragraph two of article 43 which is as follows: two. The mortgage and the mortgage bonds may be issued by credit institutions, provided that the conditions and requirements that are demanded in this Royal Decree are fulfilled.»

First transitional provision. Period of transformation of societies and credit institutions.

Mortgage companies, financing institutions and leasing companies authorized to the entry into force of this Royal Decree shall become financial establishments of credit prior to January 1, 1997.

Second transitional provision. Expansion of the social object.

1. the transformation will not require administrative authorization when it results in an extension of the social objective of the new financial settlement of credit in relation to which was limited in scope operating credit institution.

Means that it poses no enlargement of the social object when entities of financing will become financial establishment of credit taken as main activity referred to in paragraphs to), b), d) and e) of article 1 of this Decree; (when the leasing companies adopt as main activity as provided for in paragraph c) of that article; (and when «factoring» entities adopt as main activity as provided for in paragraph (b)). In these cases, the entity shall be entered in the special register of the Bank of Spain after has registered the change of statutes in the register.

2 when it is the assumption of transformation referred to in the preceding paragraph and the financial establishment of credit available own resources less than 850 million pesetas, adjusted once with the planned deduction in paragraph 2 of article 5 of the present Royal Decree, shall, so long as it is in that situation, comply with the following standards (: a) you will not reduce its share capital, and tight resources may not descend from the highest level that have reached the date of processing unless, as a result of an operation of sanitation that it aims to reconstitute its solvency, the Bank of Spain consented temporarily.

(b) they must raise its own resources up to 850 million pesetas,-adjusted when changes in its shareholding that imply the existence of new dominant shareholders or groups of control, in the sense of article 4 of the law of the stock market.

(c) when there is a merger between two or more establishments whose adjusted own resources do not reach planned figures for minimum share capital, the basic resources of the resulting entity must reach, unless express authorisation by the authority that should be resolved on the merger, the minimum capital requirement for newly created entities, in the moment in which the fusion enrolls in the register.

3. when the transformation involves an expansion of the social object will require administrative authorization, which may not be granted if the entity does not have the minimum resources required for the creation of financial credit establishments and which shall be subject to the procedure laid down in article 8 of this Royal Decree for the reform of the statutes. Once authorized and the appropriate change in statutes in the register recorded the financial establishment of credit will be recorded at the Bank of Spain. This rule shall also apply when the transformation is simultaneous to the fusion of several limited operating area credit institutions belonging to different categories.

Third transitional provision. Transformation of credit institutions.

Mortgage companies, financing institutions and leasing companies only may become another type of credit institutions subject to the procedure and compliance with the requirements referred to in the rules applicable to them.

Fourth transitional provision. Loss of the status of financial institution.

Field operating credit institutions limited that on January 1, 1997 have not become nor of financial establishments of credit, or in another type of credit institutions, will lose their status as lender, expiring your authorization and canceling ex officio the registration in the register of the Bank of Spain. After that date the affected entity cannot be any of the activities of financial establishments of credit or credit institutions.

Fifth transitional provision. Period of adaptation of applications for creation of credit institutions.

Promoters of the creation of new institutions of limited operating field records that are currently pending authorization will have a period of three months to adapt their applications to the provisions of this Royal Decree.

Within this period without having proceeded to the aforementioned adaptation, means that they give up their previous requests and will proceed to the return of the previous deposits in the Bank of Spain.

Sixth transitional provision. Regulation of the deposits of credit institutions.

1. to the entry into force of this Royal Decree, financing entities, leasing companies and mortgage loan companies cannot receive funds from the public in the form of deposit, loan, temporary transfer of financial assets or other similar drugs that are not subject to the rules of management and discipline of the securities whose maturity period exceeds the 1 January 1997 or you can modify existing term deposit contracts involving their extension or enlargement further than that date.


2. without prejudice to the provisions of article 2 of the present Royal Decree, term deposits which at the time of its transformation into financial establishment of credit institutions of financing, leasing companies and mortgage companies, have captured will remain temporarily until its extinction, unless in accordance with the same holder is appropriate to its disposal or liquidation.

3. the remaining deposits, other than those referred to in the preceding paragraph, that financial institutions cannot maintain in accordance with the provisions of article 2 of this Royal Decree, must be cancelled prior to January 1, 1997.

Sole repeal provision. Repeal legislation.

On 1 January 1997 will be repealed: a) the Royal Decree 896/1977, of 28 March, on financing entities regime.

(b) the order of the Minister of economy and finance, on February 14, 1978, on the regime of financial institutions).

(c) the order of the Minister of economy and Finance of 13 May 1981, on financing institutions specialised in "factoring" transactions.

(((d) paragraphs e) and g) of article 2.1, the second section of chapter I and paragraph three of article 43 of the Real Decree 685/1982, of 17 March, which develops certain aspects of the law 2/1981, dated March 25, regulation of the mortgage market.

e) the Royal Decree 771/1989, of 23 June, which establishes the legal regime of limited operating area credit institutions.

f) order of 8 February 1991, of development of the additional provision of law 26/1988, of July 29, sixth on discipline and intervention of credit institutions.

First final provision. Basic character.

This Royal Decree is issued in accordance with the provisions of article 149.1.11. 2nd and 13th of the Constitution.

Second final provision. Faculty Development, and entry into force.

1 empowers the Minister of economy and finance to dictate the rules of development of the present Royal Decree.

2. This provision shall enter into force the day after its publication in the «Official Gazette».

Given in Madrid on April 26, 1996.

JUAN CARLOS R.

The Minister of economy and finance, PEDRO SOLBES MIRA