Resolution Of 23 April 2015, Of The Commission Executive Of The Bank Of Spain, Of Amendment To The Resolution Of 11 December 1998, Which Approve The General Provisions Applicable To Monetary Policy Operations Of The...

Original Language Title: Resolución de 23 de abril de 2015, de la Comisión Ejecutiva del Banco de España, de modificación de la Resolución de 11 de diciembre de 1998, por la que se aprueban las cláusulas generales aplicables a las operaciones de política monetaria del ...

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La Commission Executive of the Bank of Spain, in accordance with the provisions of article 23.1, away to) and h), law 13/1994 of 1 June, autonomy of the Bank of Spain; ((in the article 66.1, away to) and i), the internal regulations of the Bank of Spain and in clause XII of the «general terms applicable to the operations of the Bank of Spain monetary policy» approved by resolution of the Commission Executive of the Bank of Spain on December 11, 1998, and on the occasion of the adoption by the Bank Central European of the orientation ECB/2014/60 , of 19 of December of 2014, on the application of the frame of it political monetary of the Eurosystem (by which is repeals and replaces it orientation ECB / 2011 / 14, of 20 of September of 2011, on them instruments and procedures of the political monetary of the Eurosystem) and its later modification under the orientation ECB / 2015 / 20, agrees: first.

Modify the «General provisions applicable to the operations of monetary policy by the Bank of Spain» approved by resolution of the Executive Committee of the Bank of Spain on December 11, 1998 (hereinafter the «general terms»), which shall have henceforth the wording that is incorporated as annex to the present resolution.

Second.

The modification of the clauses General agreed on the point first previous is apply with effects starting from the 1 of mayo of 2015.

Third.

He text that is approves as aged of this resolution constitutes a text consolidated of them «clauses General applicable to them operations of political monetary of the Bank of Spain» adopted by resolution of its Commission Executive of 11 of December of 1998, with the modifications introduced in them same by resolutions of such Commission Executive of 23 of July of 1999 (BOE of 7 of August) 26 October 1999 (BOE of 7 December), 10 October 2000 (BOE of 20 December), 19 April 2002 (BOE 29 June), December 23, 2003 (BOE of 5 March 2004), 4 March 2005 (BOE of 19 May), September 20, 2006 (BOE of 28 November), September 21, 2007 (BOE of 14 November) November 26, 2008, January 22, 2009, May 21, 2009, October 6, 2010 (BOE of 12 January 2011), December 29, 2010 (Jan 12, 2011 BOE), October 18, 2011 (BOE of 27 December), 26 December 2012 (BOE of 1 January), on November 29, 2013 (BOE of 30 November) 14 may 2014 (BOE of 23 May) and the present resolution.

Madrid, 23 of April of 2015.-the Secretary General of the Bank of Spain, Francisco Javier Priego.

ANNEX General provisions applicable to the operations of the monetary policy of the Bank of Spain I. object and scope.

II. operations and instruments of monetary policy.

III. conditions basic and procedures of the operations of political money.

IV. eligible counterpart entities.

V. warranty assets.

VI. suspected of non-compliance.

VII. effects derived from those alleged of breach.

VIII. measures discretionary.

IX. sanctions for breach of certain operating standards X. force majeure.

XI. law applicable and jurisdiction.

XII. address and notifications.

XIII. modification.

I in accordance with paragraphs 1 and 2 of article 127 of the Treaty on the functioning of European Union (the "Treaty") and article 3.1 of the Statute of the European system of central banks ('ESCB') and the European Central Bank ("ECB"), the primary objective of the ESCB is to maintain price stability and, as such, has as basic functions define and implement the monetary policy of the Union and perform operations on foreign exchange consistent with the provisions of article 219 of the Treaty.

II. the achievement of a single monetary policy requires to determine the instruments and procedures to be used by the ECB and the national central banks of the States member whose currency is the euro, all of them as members of the Eurosystem, to execute that policy in a uniform manner in all the States member whose currency is the euro.

III. in the measure that is possible and in order ensure by it efficiency operational, the ECB can resort to them banks central national for run them operations corresponding to the functions of the Eurosystem according to the principle of decentralization established in the article 12.1 of them statutes of the ESCB and of the ECB and with clamping to them conditions established in its article 14.3 being enabled the ECB to formulate the single monetary policy of the Union and adopt the necessary guidelines for its correct application.

IV. the Governing Council of the ECB has adopted dated 19 December 2014, the orientation ECB/2014/60, on the implementation of the framework of the monetary policy of the Eurosystem (henceforth, according to the same has been amended by the orientation ECB/2015/20, April 16, and together with those other legal acts of the ECB that modify it (, complement or substitute at any time, "Guidance on the framework of monetary policy of the Eurosystem"). This guidance on the framework of the monetary policy of the Eurosystem contains the principles, instruments, procedures and criteria that the operations of monetary policy among the members of the Eurosystem central banks and its counterpart in monetary policy operations entities must comply.

V. In accordance with article 1.3 of the law 13/1994 of 1 June, autonomy of the Bank of Spain (hereinafter the 'law of autonomy'), in the performance of the duties arising from their status as an integral part of the Eurosystem, the Bank of Spain shall be subject to the guidelines and instructions of the ECB under the provisions of the Treaty and the statutes of the ESCB and of the ECB.

VI. in accordance with the foregoing, and in order to establish the general framework that, in accordance with the guidance on the framework of the monetary policy of the Eurosystem and the specific characteristics of the financial system and Spanish markets, will have to secure the operations of monetary policy making the Bank of Spain with the entities that meet the requirements established for this purpose (the ' counterpart entities') ((, and under it willing in the article 23.1. to) of the law of autonomy, the Commission Executive of the Bank of Spain, has agreed of conformity with the article 66.1. to) of the regulation of the Bank of Spain, approve them clauses General applicable to the operations of political monetary (in forward, them «clauses General») that continue then: I. object and scope I.1. Them clauses General have as object set the frame general that apply to the operations of political monetary that Bank of Spain run in its condition of Member of the Eurosystem with the entities of counterpart.

I.2 will be of application to the operations of political monetary that run the Bank of Spain: I.2.1 it planned in them clauses General, in its version current in each moment;

I.2.2 the applications technical and others provisions, instructions, resolutions or specifications of the Bank of Spain relating to the execution of the political monetary of the Eurosystem, as is are in force in each moment;

I.2.3 it normative, forecasts, applications technical, instructions, resolutions and specifications of the Bank of Spain that regulate TARGET2-Bank of Spain (in forward, «TARGET2-BE»), as well as the standards regulatory of them systems of compensation and liquidation of values corresponding, as soon as them is of application by reason of the matter;

I.2.4 it established in them contracts that is concluded between the Bank of Spain and the entities of counterpart in operations of political monetary, that is adjusted to them models that the Bank of Spain has approved to the effect in each moment; and I.2.5 the orientation on the framework of the monetary policy of the Eurosystem, whose content will be binding for the entities of the counterpart of the Bank of Spain in the terms provided for in the instruments referred to in the preceding paragraphs I.2.1 to I.2.4.

I.3 in case of discrepancy between it planned in the orientation on the frame of the political monetary of the Eurosystem and it arranged in them clauses General or in them applications technical and others provisions referred in the paragraph I.2.2 previous, will prevail it willing in them clauses General and in them applications technical and others provisions mentioned in the paragraph I.2.2 I.4 the Council of Government of the ECB may in all time modify them instruments , requirements, criteria and procedures of implementation of the political currency.

II. operations and the monetary policy instruments II.1 the instruments that the Bank of Spain will be used in the execution of monetary policy are provided in the guidance on the framework of the monetary policy of the Eurosystem, this is: to) open-market operations;

(b) the permanent facilities; and (c) the minimum reserve requirements.

II.2 open market operations may take the form of temporary operations, purchase and sell simple expiration, «» foreign exchange swaps for purposes of monetary policy and the collection of fixed-term deposits.

At the same time, according to their aims, regularity and procedures, open market operations can be divided into the following four categories: to) the main refinancing operations;

(b) longer-term financing transactions;

(c) adjustment operations; and (d) the structural operations.

II.3 the permanent facilities are:


(a) the marginal credit facility; (and b) the ease of deposit.

II.4 minimum reserve requirements are regulated in Regulation (EC) No. 2531/98 and Council Regulation (EC) No. 1745 / 2003 (ECB/2003/9).

III. conditions basic and procedures of them operations of political monetary III.1 them objectives and conditions basic applicable to them different operations referred in the paragraph II previous, as well as, between others, them procedures applicable for its execution (included them corresponding to the realization of auctions and to it negotiation bilateral of operations) and to its liquidation and them different modalities of recruitment and formalization of them same will be them expected in it orientation on the frame of the political currency of the Eurosystem, with the specific features which, where appropriate, be established in the General Clauses and other provisions laid down in paragraph previous I.2.2, without other limitations than that derived from the regulation of the organized markets that are negotiated and settled in his case operations, depending on the nature of the negotiated asset or used legal business and technical applications.

III.2 in any case will be admitted the conditions or general clauses that an entity proposed in relation to a monetary policy operation.

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

III.4 the Eurosystem is book the right to request and obtain of their entities of counterpart any information relevant required for play their functions and get their objectives in relation to the operations of political monetary. This right is understood without prejudice to any other rights specific Eurosystem to request information concerning monetary policy operations. The entity of counterpart must facilitate to the Bank of Spain immediately the information that this you request or that have relevance in relation to them operations regulated in the present clauses General.

For the purposes of the execution of the political monetary and, in particular, to watch the compliance of them standards for the use of active of warranty to which is refers it clause V.2.3 following, the Eurosystem shares internally it information on participation in the capital supplied to such end by them authorities competent. This information will be subject to the same standards of confidentiality that apply to such authorities.

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

III.6 the Bank of Spain will liquidate the operations referred to in the present general terms in euros, except for payments relating to operations 'swaps' of foreign exchange which, if any, should be made in another currency. In the so-called of that was necessary convert amounts not called in euros, is will employ the type of change of the euro daily of reference published by the ECB, or, in its defect, the type of change to the counted designated by the ECB the day business previous to the day in that should make is it conversion for the sale of them euros against it buys of it another currency.

III.7 the counterpart institution is obliged to notify in writing to the Bank of Spain any variation in the powers of representation which have been granted in relation to these general terms or with monetary policy operations agreed under its coverage.

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

IV. entities of counterpart admissible IV.1 the Bank of Spain only will operate with entities that meet them criteria of admissibility to participate in operations of political monetary planned for each type of operation in the orientation on the frame of the political monetary of the Eurosystem.

IV.2 entities will be required to know and comply with all the obligations imposed by the rules of prevention of laundering of capital and financing of terrorism.

IV.3 the Bank of Spain may share individual information concerning the participation of the entities of a counterpart in the operations of the Eurosystem (i.e. operational data), with the remaining members of the Eurosystem, provided that this is necessary for the implementation of monetary policy. This information will be subject to the compliance of the obligation of secret professional, in accordance with it intended in the article 37 of the statutes of the ESCB and of the ECB.

V. active of warranty V.1 active of warranty eligible.

V.1.1 for participate in the operations of credit of the Bank of Spain, the entities of counterpart will bring to this active admissible as warranty in those operations. Since credit operations include intraday credit, also the assets of warranty to provide compensation in relation to the intra-day credit institutions shall comply with eligibility criteria here established in accordance with provisions in the regulatory framework of TARGET2-BE.

V.1.2 the assets that the Bank of Spain can accept as collateral for its operations are included in the unique setting of collateral (also known as the single list) prepared by the Eurosystem for use in lending operations. This framework consists of negotiable and non-negotiable assets that meet the requirements laid down for the purposes of its admissibility as collateral in the guidance on the framework of the monetary policy of the Eurosystem and the Bank of Spain that, in their case, set to corresponding technical applications.

V.1.3 one of the criteria of eligibility of assets as guarantee will be that they have a high credit quality, in accordance with the Eurosystem credit assessment framework. Them procedures, standards and systems of evaluation credit (including them processes of surveillance in the performance of these last) by means of which is will determine the compliance of the requirement of quality credit minimum required to each active for its admissibility as warranty are which is established in the orientation on the frame of the political monetary of the Eurosystem.

V.1.4 the Bank of Spain only will give to know to them entities of counterpart its opinion on the admissibility of an active as active of warranty of the Eurosystem, in those alleged of active negotiable previously issued or of active not negotiable whose contribution already is had requested. It will not provide advice on the eligibility of assets before they reach concerned circumstances.

V.2 measures of control of risk, valuation and rules of use of active eligible.

V.2.1 all assets guarantee admissible in the operations of the Bank of Spain credit shall be subject to the risk control measures provided for in the guidance on the framework of the monetary policy of the Eurosystem, in order to cover the risk derived from possible financial losses that would result if such guarantees had to be executed due to a breach of the counterpart institution. The Eurosystem applies risk control measures according to the types of assets of warranty provided by counterpart entities, such as, inter alia, the implementation of cuts to the valuation of the assets, valuation adjustments and the margin requirement. The risk control measures are widely harmonized in the euro area and guarantee conditions transparent, non-discriminatory and consistent for each type of asset.

V.2.2 guarantee assets in the Bank of Spain credit operations will be subject to a daily valuation in accordance with the rules of asset valuation and the demands of adjustment of the margin provided for in the guidance on the framework of the monetary policy of the Eurosystem and the Bank of Spain that, in their case, set to corresponding technical applications.

V.2.3, rules for the use of collateral provided for in the guidance on the framework of the monetary policy of the Eurosystem, in virtue of which establish limitations to the use of an asset regardless of that it meets the admissibility criteria set out shall apply to the operations of the Bank of Spain credit. These limitations are based, between others circumstances, in the existence of links narrow between the entity of counterpart and the emitter, debtor or guarantor of the active of warranty, in it fixing of thresholds for it use of bonds simple issued by entities of credit, in the provision of support of liquidity from it entity of counterpart to the emitter of bonds of securitisation and in reasons operating.

V.3 legal regime applicable to the establishment of guarantees.


V.3.1 without prejudice to the provisions of paragraph V.4 following, guarantees on eligible assets in favour of the Bank of Spain will be on the basis of provisions of the sixth additional provision of the law of autonomy.

V.3.2 eligible marketable assets registered or deposited in Spain, may be pledged either be subject to transmission by means of purchase (single, double, or Covenant of repurchase) in accordance with the procedures approved by the Bank of Spain in each case. Also, the procedures relating to the Constitution in favor of the Bank of Spain of guarantees on active not negotiable subject to right Spanish will be which of to know the Bank of Spain to them entities of counterpart in each time. Bank of Spain may give notice procedures through the approval and publication of the corresponding technical implementation.

V.4 cross-border use of eligible assets.

V.4.1 the Bank of Spain may accept the use cross-border of active of guarantee admissible, in accordance with it planned in the orientation on the frame of the political monetary of the Eurosystem. Among the mechanisms available for the cross-border use of assets is the system of correspondent Central Bank of the Eurosystem (known as «CCBM», by its English name), through the use of links between settlement systems of values that have been positively assessed by the Eurosystem or by a combination of both mechanisms.

V.4.2 in addition to provisions of the guidance on the framework of the monetary policy of the Eurosystem, the Bank of Spain will inform counterpart entities of information that is accurate on the instrumentation and procedures for cross-border use of collateral in each of the Member States of the euro area as well as to the legal regime applicable to the lodging of guarantees on these assets. This information may be detailed by the Bank of Spain through the adoption and publication of the corresponding application technical.

(SAW. alleged of breach VI.1 is considered that the entity of counterpart has incurred in a so-called of breach of these clauses General when concur any of them following circumstances: to) adoption, in the frame of the competition of creditors of the entity of counterpart, of the auto of opening of liquidation of the same.

(b) adoption with arrangement to the legislation of another State member of the Union European of a measure of nature universal planned in such legislation for decide the liquidation of the entity of counterpart.

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

Them so-called of breach collected in this paragraph VI.1 will produce those effects that is established in the paragraph VII following of form automatic, without need of notification prior.

VI.2 the Bank of Spain may declare prior notification in writing to the counterpart organization, involved in a case of breach of the obligations arising out of these general provisions, inter alia, for the following reasons: to) adoption with respect to the entity's return for a measure of sanitation or any other analogous measure that is intended to safeguard or restore the financial situation of the entity's counterpart and prevent the adoption of a measure provided for (in the paragraph VI.1.a) previous, including the admission to pending of the request of contest of creditors of the entity of counterpart or the statement of contest of creditors of the same.

(b) the adoption pursuant to the laws of another Member State of the European Union of a measure provided for in this legislation to decide the sanitation of the counterpart institution.

(c) the designation of Auditors or administrators provisional entity counterpart adopted pursuant to articles 70 et seq. of law 10/2014, of 26 June, management, supervision and solvency of credit institutions.

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

(e) the adoption of an act procedural preliminary to a decision of the referred to in those paragraphs VI.1, VI.2. (a), VI.2. (b) and VI.2. ((c). f) the incorrectness or falsehood of them powers of representation granted by the entity of counterpart, or of their statements pre-contractual, contractual, or that have of be carried out by the same with arrangement of them provisions legal applicable.

((g) the revocation or suspension of the authorization that had matching entity to perform its activity a: pursuant to) with the national rules of transposition of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013, concerning the access to the activity of credit institutions and the prudential supervision of institutions of credit and investment (the "2013/36/EU directive") firms ((, b) Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment, and c companies) with the national rules of transposition of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments.

(h) the suspension in the condition of Member or the expulsion of the entity of counterpart of any system of payments or of liquidation of values by means of which is carried out payments of operations of political monetary, or of any system of compensation and liquidation of values of the Eurosystem through which is settled operations of political monetary.

(i) adoption with respect to the entity of consideration of a measure under the law of transposition of articles articles 41 (1), 43 (1) and 44 of Directive 2013/36/EU.

(j) failure or defective performance by the entity's counterpart of the rules relating to control measures of risks covered by the general clause earlier V.2.1.

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

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

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

(n) the default by the entity's counterpart to the Bank of Spain of any obligation for payment or contribution or delivery of assets of warranty under the protection of the contractual documentation that conclude the Bank of Spain and entities compensation in monetary policy operations, as well as non-compliance or defective compliance by the entity's counterpart of the Eurosystem rules on the use of the assets of warranty.

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

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

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


(r) by the failure or defective performance of any other obligation arising from the present general terms, provided that its correction, being possible counterpart entity not appropriate to it within a maximum period of 30 days, in the case of secured transactions, and ten days, in the case of operations of currency, in both cases «swap» since it had been required by the Bank of Spain for the realization of such remedies.

Them alleged of breach collected in this paragraph VI.2 will produce them effects that is established in the paragraph VII following starting from the date of reception by the entity of counterpart of it notification of the Bank of Spain declaring you involved in the same or of the completion of the period of grace of until three days working that, in your case , had awarded the Bank of Spain to the entity of counterpart to remedy the breach of that is concerned.

VII. effects of the assumptions of breach VII.1 where a counterpart institution is involved in a case of non-compliance or for reasons of prudence, the Bank of Spain may take any of the following measures: to) suspend, limit or exclude the counterpart institution access to open market operations;

(b) suspend, limit or exclude the counterpart institution access to permanent facilities;

(c) declare early expired contracts between Bank of Spain and the counterpart institution or existing operations;

(d) demand the compliance with advance of obligations not due or contingent;

(e) apply the deposits that the counterpart institution holds in Bank of Spain to satisfy the claims against it; and (f) suspend the fulfilment of the obligations that may apply to the Bank of Spain against the entity's return until it has completed his.

VII.2 to ensure by its application uniform, the Council of Government of the ECB can decide on the imposition of these measures, included the suspension, limitation or exclusion of the access to the operations of market open or facilities permanent.

VII.3, in addition to the measures provided for in paragraph VII.1 earlier, the Bank of Spain may also take any of the following measures: to) the counterpart institution claim a moratory interest equal to the official interest rate of the marginal credit facility, increased by two per cent, on whatever that adeudase the Bank of Spain as a result of the breach of obligations of transactions covered by these general terms. The moratory interest is accrued from the day in which the breach; had taken place

(b) claim to the entity of counterpart them compensation by damages and damages that in accordance with the law to proceed.

VIII. measures discretionary VIII.1 the Bank of Spain may take the measures following by reasons of prudence: VIII.1.1 suspend, limit or exclude the access of an entity of counterpart to the operations of market open or to them facilities permanent of the Eurosystem, according to it referred in the paragraph VII.1 previous;

VIII.1.2 exempt to an entity of counterpart of the demands of booking minimum;

VIII.1.3 reject or limit the use of assets provided as collateral in Eurosystem credit operations by a specific counterpart entity, or apply additional cuts to those assets, based on any information deemed relevant, particularly if the credit quality of the counterpart institution seems to show a high correlation with the credit quality of the assets mobilised as collateral by the Eurosystem.

Where them measures discretionary described in this paragraph VIII.1 is based in information prudential, the Eurosystem will use such information, transmitted by the entities of counterpart or by them supervisors, of mode strictly provided and necessary for the performance of their functions of execution of the political monetary.

VIII.2 where a counterpart institution is involved in a case of non-compliance, the Bank of Spain may suspend, limit or exclude access to open market operations or to the permanent facilities of the Eurosystem.

VIII.3 the Bank of Spain will properly justify and apply proportionate and non-discriminatory way the discretionary measures provided for in paragraphs VIII.1 and VIII.2.

VIII.4 the Bank of Spain will determine, on the basis of any information that it deems relevant, if a broadcast, a transmitter, a debtor or a surety met creditworthiness requirements demanded by the Eurosystem.

The Eurosystem may decide to reject or limit the use of collateral or apply additional cuts, for the reasons set forth in the preceding paragraph, if its decision is needed to ensure adequate protection of the risks of the Eurosystem.

Where the refusal referred to in the previous paragraph is based on prudential information, the Eurosystem will use that information transmitted by counterpart entities or supervisors, so proportionate and strictly necessary for the performance of their functions of monetary policy implementation.

(He Eurosystem may exclude them following Active of the list of active negotiable admissible: to) active issued or backed by entities subject to the freezing of funds or to other measures imposed by the Union of conformity with the article 75 of the treated, or by a State Member, that restrict the use of funds; (or b) active issued or guaranteed by entities with respect to which the Council of Government of the ECB has adopted a decision by which is suspend or exclude its access to the operations of market open or facilities permanent of the Eurosystem.

IX. sanctions by breach of certain rules operational and by breach of them requirements of reserves minimum IX.1 without prejudice of the right of the Bank of Spain to demand the compliance of them obligations unfulfilled and of them effects that Additionally the breach could have to the amparo of it planned in the paragraph VII and VIII earlier, the Bank of Spain will impose of conformity with them provisions of the orientation on the frame of the political monetary of the Eurosystem an or more sanctions to it entity of counterpart that fails to comply with any to of them obligations following: IX.1.1 if the entity of counterpart breach. with regard to them operations temporary and them «swaps» of badges their obligations of ensure properly and liquidate the amount awarded to the entity of counterpart during all the duration of an operation determined or the amount live pending of refund of an operation in case of termination early by the Bank of Spain of it operation corresponding , in accordance with it planned in the guidance on the framework of the political monetary of the Eurosystem.

IX.1.2 If the entity counterpart breach with respect to the operations of attracting deposits, simple operations and the issuance of certificates of debt of the ECB, the obligation to transfer an amount of sufficient cash to settle the amount awarded in accordance with the guidance on the framework of the monetary policy of the Eurosystem.

IX.1.3 If the counterpart institution in breach of the provisions laid down by the Bank of Spain and the ECB on the use of assets guarantee admissible, in particular, those relating to the obligation to provide as guarantee only permissible assets and standards for their use provided for in the guidance on the framework of the monetary policy of the Eurosystem. Sanctions shall apply regardless of the counterpart institution to participate or not actively involved in monetary policy operations.

IX.1.4 If the entity counterpart breach in what refers to the procedures of closing operations and the conditions of access to the facility marginal credit, the obligation to provide in advance sufficient assets guarantee admissible in the case that any negative balance on the settlement account of the entity counterpart in TARGET2 after the completion of the control procedures of closing of operations which should be considered automatically as is a request for recourse to the marginal ease of credit pursuant to the guidance on the framework of the monetary policy of the Eurosystem.

IX.2 the sanctions that are imposed pursuant to section IX.1 will be: to) only cash; or (b) pecuniary and non-pecuniary.

IX.3 in the course of which a counterpart institution fails to comply with any of the obligations section IX.1 above, the Bank of Spain will impose him a pecuniary penalty for each failure. The sanction pecuniary and, where appropriate, grace periods that may be applicable depending on the type of non-compliance, are those who will provide the guidance on the framework of the monetary policy of the Eurosystem.

IX.4 If the counterpart institution breaches the obligations of paragraphs IX.1.1 and IX.1.2 earlier on more than two occasions over a period of twelve months, and with respect to each breach, meets the following: a) applies a pecuniary sanction;

(b) each decision to impose a pecuniary sanction has been notified to the counterpart institution; and (c) each case of non-compliance is related to the same type of breach,


the Bank of Spain will suspend the matching entity in the event that a third breach (and each subsequent breach) of an obligation of the same type in the corresponding period of twelve months. He period of twelve months is calculated starting from the date of the first breach of the obligations of them paragraphs IX.1.1 and IX.1.2, according to appropriate in each case.

The suspension imposed by the Eurosystem under this paragraph shall apply with respect to any operation to further open market that is of the same type of open market operation which has been derived the penalty that applies pursuant to the provisions in this section.

The period of suspension imposed pursuant to this section shall be determined in accordance with annex VII of the guidance on the framework of the monetary policy of the Eurosystem.

IX.5 If the counterpart institution breaches the obligations of paragraph IX.1.3 more than twice in a period of twelve months, and with respect to each breach, meets the following: a) applies a pecuniary sanction;

(b) each decision to impose a pecuniary sanction has been notified to the counterpart institution;

(c) each case of non-compliance is related with the same type of non-compliance;

the Eurosystem shall suspend the entity's counterpart for the operation of subsequent open market in the event that a third breach (and each subsequent breach) in the corresponding period of twelve months. The period of twelve months is calculated starting from the date of the first breach of the obligations of the paragraph IX.1.3.

IX.6 in cases extraordinary, the Bank of Spain may suspend to an entity of counterpart by a period of three months with regard to all the operations future of political monetary of the Eurosystem by any breach of the obligations established in the paragraph IX.1 previous. In these cases, the Bank of Spain will take into consideration the seriousness of non-compliance and, in particular, the amounts involved and the frequency and duration of the breach.

IX.7 the period of suspension imposed by the Bank of Spain pursuant to the preceding paragraphs IX.4 to IX.6 shall apply in addition to the pecuniary sanction applicable pursuant to previous IX.3.

IX.8 without prejudice to the sanctions imposed by the ECB to the institutions that fail to comply with their obligations of maintenance of minimum reserves pursuant to regulations (EC) No. 2532/98, (EC) No. 2157 / 1999 (ECB/1999/4), (EC) No. 2531/98 or (EC) No. 1745 / 2003 (ECB/2003/9), in the event of a serious breach of the requirements of minimum reserves the Eurosystem may suspend the participation of the entity's counterpart in the operations concerned of market open.

IX.9. the Bank of Spain may take measures of suspension in relation to those branches in Spain of monetary policy offset entities established in other Member States which have been suspended.

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

XI. applicable law and jurisdiction the Contracting Parties from monetary policy operations are subject to the present general terms, being the Spanish law. For many actions and claims arising from them, and without prejudice to the competence of the Court of Justice of the European Union, shall be the courts and tribunals of Madrid (capital), giving both the Bank of Spain and the entity's counterpart to any other jurisdiction that could correspond to them, and reaching an agreement as a place for the fulfillment of the obligations the domicile of the Bank of Spain site number 48 of the calle Alcalá, in Madrid.

XII. domicile and notifications XII.1 to effects of notices and requirements, shall be considered as domicile of the counterpart institution that has done this stated in the contractual documentation that signed with the Bank of Spain pursuant to paragraph previous I.2.4 or, in its case, the other that subsequent to the signing of the aforementioned documentation have been communicated in writing and in reliably to the Bank of Spain as a new home.

XII.2 any notification between the counterpart institution will be in writing and may be made, unless otherwise had established in the documentation of the contract between the consideration and the Bank of Spain or in technical applications or other provisions in section I.2.2 above, by physical (by courier or certified mail) delivery of the notification in the corresponding address providing such notice effects from the date of its receipt.

XIII. modification the present general terms may be modified at any time by the Executive Committee of the Bank of Spain and any agreed modification shall apply to return entities as soon as the Bank of Spain had communicated to those through publication in the «Official Gazette».

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

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