The Executive Board of the Banco de España, in accordance with the provisions of Article 23.1 (a) and (h) of Law 13/1994 of 1 June of the Autonomy of the Banco de España; in Article 66.1 (a) and (i) of the Rules of Procedure of the Banco de España and clause XII of the "General clauses applicable to the monetary policy operations of the Banco de España" approved by Resolution of the Executive Board of the Bank of Spain of 11 December 1998, and on the occasion of the adoption by the European Central Bank of Guideline ECB/2014/60 of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (repealing and replacing Guideline ECB/2011/14 of 20 September 2011 on the instruments and procedures of the Eurosystem monetary policy) and its subsequent amendment under Guideline ECB/2015/20, agrees:

First.

Modify the "General clauses applicable to the monetary policy operations of the Banco de España" approved by Resolution of the Executive Commission of the Banco de España on 11 December 1998 (hereinafter referred to as "Clauses"). "), which shall be further amended to be incorporated as annexed to this Resolution.

Second.

The modification of the general clauses agreed in the first point above shall apply with effect from 1 May 2015.

Third.

The text approved as an annex to this Resolution constitutes a consolidated text of the "General clauses applicable to the monetary policy operations of the Banco de España" adopted by Resolution of its Executive Committee of 11 December 1998, with the amendments made to them by Resolutions of that Executive Committee of 23 July 1999 (BOE of 7 August 1999), 26 October 1999 (BOE of 7 December 2000), 10 October 2000 (BOE of 20 December 1999), December), 19 April 2002 (BOE 29 June), 23 December 2003 (BOE of 5 March 2004), 4 March 2002 2005 (BOE of 19 May 2006), 20 September 2006 (BOE of 28 November), 21 September 2007 (BOE of 14 November), 26 November 2008, 22 January 2009, 21 May 2009, 6 October 2010 (BOE of 12 January 2011), 29 of December 2010 (BOE of 12 January 2011), 18 October 2011 (BOE of 27 December), 26 December 2012 (BOE of 1 January), 29 November 2013 (BOE of 30 November), 14 May 2014 (BOE of 23 May 2014) and hereby Resolution.

Madrid, April 23, 2015.-The Secretary General of the Banco de España, Francisco Javier Priego.

ATTACHED

General clauses applicable to the Bank of Spain's monetary policy operations

I. Object and scope.

II. Monetary policy operations and instruments.

III. Basic conditions and procedures for monetary policy operations.

IV. Eligible counterparties.

V. Warranty assets.

VI. Assumptions of non-compliance.

VII. Effects arising from the alleged non-compliance.

VIII. Discretionary measures.

IX. Penalties for non-compliance with certain operating rules

X. Force majeure.

XI. Applicable law and jurisdiction.

XII. Address and notifications.

XIII. Modification.

I. In accordance with Article 127 (1) and (2) of the Treaty on the Functioning of the European Union (the 'Treaty') and Article 3.1 of the Statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB) The main objective of the ESCB is to maintain price stability and, as such, it has the basic functions to define and implement the monetary policy of the Union and to conduct foreign exchange operations consistent with the provisions of Article 219 of the Treaty. Treaty.

II. The achievement of a single monetary policy requires the determination of the instruments and procedures to be used by the ECB and the national central banks of the Member States whose currency is the euro, all of which are members of the Eurosystem, to implement this policy in a uniform manner in all Member States whose currency is the euro.

III. As far as possible and in order to ensure operational efficiency, the ECB may use the national central banks to carry out the operations corresponding to the tasks of the Eurosystem in accordance with the principle of decentralisation. laid down in Article 12.1 of the Statute of the ESCB and of the ECB and subject to the conditions laid down in Article 14.3 thereof, the ECB being empowered to formulate the single monetary policy of the Union and to adopt the necessary guidelines for correct application.

IV. The Governing Council of the ECB has adopted on 19 December 2014 Guideline ECB/2014/60 on the implementation of the Eurosystem monetary policy framework (hereinafter referred to as 'the Guideline'), as amended by the Guideline. ECB/2015/20 of 16 April and together with those other ECB legal acts which amend, supplement or replace at any time the "Guideline on the Eurosystem monetary policy framework"). This Guideline on the monetary policy framework of the Eurosystem contains the principles, instruments, procedures and criteria to be followed by monetary policy operations between the central banks of the Eurosystem. The Eurosystem and its counterparties in monetary policy operations.

V. In accordance with Article 1.3 of Law 13/1994 of 1 June 1994, Autonomy of the Banco de España (hereinafter the "Law of Autonomy"), in the exercise of the functions arising from its status as a member of the Eurosystem, the Bank of Spain shall comply with the guidelines and instructions of the ECB under the provisions of the Treaty and the Statute of the ESCB and of the ECB.

VI. In accordance with the above, and in order to establish the general framework to which, in accordance with the Guideline on the monetary policy of the Eurosystem and with the specific characteristics of the financial system and the Spanish markets, the monetary policy operations carried out by the Bank of Spain with the institutions which meet the requirements laid down for that purpose (the 'counterparties'), and in accordance with the provisions of Article 23.1.a) of the Law, shall be subject to the following: de Autonomia, the Executive Commission of the Banco de España, has agreed in accordance with the 66,1 (a) of the Regulation of the Banco de España, approve the general clauses applicable to monetary policy operations (hereinafter the "General Clauses") which follow:

I. Object and scope

I. 1. The general clauses are intended to establish the general framework for the monetary policy operations which the Banco de España will carry out as a member of the Eurosystem with the counterparties.

I. 2 Will be applicable to the monetary policy operations executed by the Banco de España:

I. 2.1 As provided for in the general clauses, in their current version at any time;

I. 2.2 The technical applications and other provisions, instructions, resolutions or specifications of the Bank of Spain concerning the implementation of the Eurosystem monetary policy, as they are in force in each time;

I. 2.3 The regulations, forecasts, technical applications, instructions, resolutions and specifications of the Banco de España that regulate TARGET2-Banco de España (hereinafter referred to as " TARGET2-BE") As well as the regulatory standards for the clearing and settlement systems of corresponding securities, as soon as they are applicable to them for the purpose of the matter;

I. 2.4 What is established in the contracts concluded between the Banco de España and the counterparties in monetary policy operations, which will be adjusted to the models that the Banco de España has approved for the purpose of the each moment; and

I. 2.5 The Guideline on the monetary policy of the Eurosystem, the content of which will be binding on the counterparties of the Banco de España as provided for in the instruments referred to in the paragraphs I. 2.1 to I. 2.4 above.

I. 3 In case of discrepancy between the provisions of the Guideline on the monetary policy of the Eurosystem and the provisions of the general clauses or the technical applications and other provisions relating to the Eurosystem Paragraph I. 2.2 above, the provisions of the general clauses and the technical applications and other provisions referred to in paragraph I. 2.2 shall prevail.

I. 4 The Governing Council of the ECB may at any time modify the instruments, requirements, criteria and procedures for the implementation of monetary policy.

II. Monetary policy operations and instruments

II.1 The instruments that the Bank of Spain will use in the implementation of monetary policy are those provided for in the Guideline on the Eurosystem monetary policy, i.e.:

a) Open market operations;

b) the standing facilities; and

c) the minimum reserve requirements.

II.2 Open market operations may take the form of temporary operations, simple to maturity transactions, currency swaps for monetary policy purposes and the collection of time deposits. fixed.

In turn, taking into account your objectives, regularity and procedures, open market operations can be divided into the following four categories:

a) The main financing operations;

b) longer term financing operations;

c) the tuning operations; and

d) structural operations.

II.3 Permanent facilities are:

a) The marginal lending facility; and

b) the deposit facility.

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

III. Basic conditions and procedures for monetary policy operations

III.1 The basic objectives and conditions applicable to the various operations referred to in paragraph II above, as well as, inter alia, the applicable procedures for their implementation (including those relating to the (a) to be carried out at the end of the year. The Commission shall, in accordance with the procedure laid down in Article 4 (2) of Council Regulation (EEC) No 75/90, provide for the implementation of the budget of the European Parliament and of the Council. The Eurosystem, with the specific features which, where appropriate, are set out in the general clauses and in the technical applications and other provisions laid down in paragraph I. 2.2 above, without other limitations than those resulting from the regulation of the markets organised in which the transactions are negotiated and settled, depending on the nature of the the negotiated asset or the legal business used.

III.2 In no case shall the general terms or conditions which an entity proposes in connection with a monetary policy operation be accepted.

III.3 The operations shall be formalized in accordance with the technical procedures available to them by the Banco de España and with whatever is established, where appropriate, in the contractual documentation that is applicable.

III.4 The Eurosystem reserves the right to request and obtain from its counterparties any relevant information necessary to carry out its tasks and to achieve its objectives in relation to the operations of the Eurosystem. monetary policy. This right is without prejudice to any other specific Eurosystem right to request information relating to monetary policy operations. The counterparty shall provide the Bank of Spain immediately with the information requested by it or which is relevant to the operations covered by these general clauses.

For the purposes of the implementation of monetary policy and, in particular, to monitor compliance with the rules for the use of collateral as referred to in the following clause V. 2.3, the Eurosystem shares internally the information on participation in the capital provided for that purpose by the competent authorities. This information shall be subject to the same rules of confidentiality as apply to those competent authorities.

III.5 The rights and obligations of counterparties arising from monetary policy operations that have been formalised with the Banco de España may not be transferred, taxed or traded by such entities in counterpart without the prior written consent of the Banco de España.

III.6 The Banco de España will liquidate all transactions referred to in these general terms in euro, except for payments relating to foreign exchange swaps which, if necessary, should be made in another currency. Where it is necessary to convert amounts not denominated in euro, the exchange rate of the daily reference euro published by the ECB, or, in the absence thereof, the rate of change to the spot indicated by the ECB on the previous business day, shall be used. the day on which the conversion for the sale of the euro against the purchase of the other currency is to be made.

III.7 The counterparty is obliged to notify the Banco de España in writing of any variation in the proxy powers it has granted in connection with these general clauses or with the policy operations monetary agreed under their coverage.

The contravention of the provisions of this paragraph III.7 will imply that the counterparty will be obliged to the Banco de España for the signature of any proxy or person entitled to it If the Bank of Spain has received the appropriate notification, it would not be able to invoke the revocation or reduction of the proxy even if it was valid in law until the Bank of Spain received the appropriate notification.

IV. Eligible counterparties

IV.1 The Banco de España will only operate with entities that meet the eligibility criteria to participate in monetary policy operations foreseen for each type of operation in the Guideline on the policy framework. Currency of the Eurosystem.

IV.2 Entities shall be required to meet and comply with all obligations imposed on them by the rules on the prevention of money laundering and terrorist financing.

IV.3 The Banco de España may share individual information relating to the participation of counterparties in the Eurosystem ' s operations (e.g. operational data), with the remaining members of the Eurosystem. the Eurosystem, provided that this is necessary for the implementation of monetary policy. This information shall be subject to compliance with the obligation of professional secrecy as provided for in Article 37 of the Statute of the ESCB and of the ECB.

V. Warranty assets

V. 1 Eligible Warranty Assets.

V. 1.1 To participate in the credit operations of the Banco de España, counterparties shall provide this eligible assets as collateral in those transactions. Since credit operations include intraday credit, the collateral provided by counterparties in relation to intraday credit shall also be subject to the eligibility criteria set out here. in accordance with the provisions of the TARGET2-BE regulatory framework.

V. 1.2 The assets that the Banco de España can accept as collateral for its operations are those included in the single framework of collateral assets (also known as the single list) prepared by the Eurosystem for use in credit operations. This framework consists of marketable and non-marketable assets that meet the requirements for eligibility as collateral in the Guideline on the Eurosystem monetary policy framework and those that, in its case, establish the Banco de España in the corresponding technical applications.

V. 1.3 One of the eligibility criteria for assets as collateral shall be that they have a high credit quality in accordance with the Eurosystem's credit assessment framework. Credit assessment procedures, standards and systems (including surveillance processes in the performance of the latter) by means of which compliance with the required minimum credit quality requirement for each asset shall be determined for their eligibility as collateral are those set out in the Guideline on the Eurosystem monetary policy framework.

V. 1.4 The Banco de España shall only disclose to the counterparties its opinion on the eligibility of an asset as a collateral asset of the Eurosystem, in the case of previously issued marketable assets or non-marketable assets the contribution of which had already been requested. No advice on the eligibility of assets shall be provided before the relevant circumstances are met.

V. 2 Risk control measures, valuation and rules for the use of eligible assets.

V. 2.1 All eligible collateral in the credit operations of the Banco de España shall be subject to the risk control measures provided for in the Guideline on the Eurosystem monetary policy framework, in order to cover the risk arising from possible financial losses which would arise if such guarantees had to be executed due to a default of the counterparty. The Eurosystem applies specific risk control measures in accordance with the types of collateral provided by counterparties, such as, inter alia, the application of cuts to the valuation of assets, the making adjustments by valuation and the requirement for margin of guarantee. Risk control measures are broadly harmonised in the euro area and ensure transparent, non-discriminatory and consistent conditions for each type of asset.

V. 2.2 The guarantee assets provided in credit operations of the Banco de España shall be subject to a daily valuation in accordance with the asset valuation rules and the adjustment requirements of the Bank of Spain. the guarantee provided for in the Guideline on the monetary policy of the Eurosystem and those which, where appropriate, will be established by the Banco de España in the relevant technical applications.

V. 2.3 The rules for the use of guarantee assets provided for in the Guideline on the monetary policy of the Eurosystem will be applicable to the credit operations of the Banco de España under the Eurosystem ' s monetary policy framework. (a) which are limited to the use of an asset, irrespective of the fact that it meets the eligibility criteria laid down. These limitations are based, inter alia, on the existence of close links between the counterparty and the issuer, debtor or guarantor of the guarantee asset, in the setting of thresholds for the use of simple bonds. issued by credit institutions, in the provision of liquidity support by the counterparty to the issuer of securitisation bonds and on operational grounds.

V. 3 Legal framework applicable to the provision of guarantees.

V. 3.1 Without prejudice to the following paragraph V. 4, the guarantees on eligible assets in favour of the Banco de España shall be constituted under the terms of the additional sixth of the Law of Autonomy.

V. 3.2 Eligible marketable assets registered or deposited in Spain may be pledged or be transmitted by means of purchase and sale (simple, double or repurchase agreement) in accordance with the procedures approved by the Banco de España in each case. Similarly, the procedures relating to the establishment in favour of the Banco de España of guarantees on non-negotiable assets subject to Spanish law will be those of the Banco de España to the counterparties at any time. Banco de España may communicate the applicable procedures by the approval and publication of the relevant technical application.

V. 4 Cross-border use of eligible assets.

V. 4.1 The Banco de España may accept the cross-border use of eligible collateral, as provided for in the Guideline on the Eurosystem monetary policy framework. Among the mechanisms available for the cross-border use of assets is the system of co-financing between central banks of the Eurosystem (known as the "CCBM", by its English name), through the use of links between the settlement of securities which have been assessed favourably by the Eurosystem or by a combination of both mechanisms.

V. 4.2 In addition to the provisions of the Guideline on the monetary policy of the Eurosystem, the Banco de España shall communicate to the counterparties the information that is required for the implementation and procedures for the cross-border use of collateral in each of the Member States of the euro area, as well as the legal regime applicable to the provision of guarantees on these assets. This information may be detailed by the Banco de España by means of the adoption and publication of the relevant technical application.

VI. Default assumptions

VI.1 The counterparty shall be deemed to have incurred an alleged failure to comply with these general clauses when any of the following conditions are met:

(a) Adoption, within the framework of the creditor's competition of the counterparty, of the self-opening settlement of the counterparty.

(b) Adoption under the legislation of another Member State of the European Union of a measure of a universal nature provided for in that legislation to decide the settlement of the counterparty.

(c) The counterparty is subject to the freezing of funds or other measures imposed by the European Union in accordance with Article 75 of the Treaty, which restrict its ability to make use of its funds.

The cases of non-compliance referred to in paragraph VI.1 shall produce the effects set out in the following paragraph VII automatically, without the need for prior notification.

VI.2 The Banco de España may, after written communication to the counterparty, declare it incurs an alleged breach of the obligations arising out of these general clauses, inter alia, by the Following causes:

(a) The adoption in respect of the counterparty of a reorganisation measure or any other similar measure which is intended to safeguard or restore the financial situation of the counterparty and to prevent the adoption of a measure as provided for in paragraph VI.1.a) above, including the admission to proceedings of the application for the tender of creditors of the counterparty or the declaration of the tender of creditors of the counterparty.

(b) The adoption under the legislation of another Member State of the European Union of a measure provided for in that legislation to decide the reorganisation of the counterparty.

(c) The designation of interim controllers or administrators of the counterparty adopted pursuant to Articles 70 and following of Law 10/2014 of 26 June of the order, supervision and solvency of the counterparty credit institutions.

(d) A written statement by the counterparty recognizing either its inability to pay all or part of its debts or to meet its obligations arising from monetary policy operations, either the the existence of a general voluntary agreement or agreement with its creditors, or that the counterparty is, or is considered, insolvent or unable to pay its debts.

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

(f) the incorrectness or untruth of the proxy powers granted by the counterparty, or of their pre-contractual, contractual statements, or which are to be made by the counterparty in accordance with the provisions of the applicable legal.

g) The revocation or suspension of the authorisation held by the counterparty to carry out its activity under: (a) the national rules transposing Directive 2013 /36/EU of the European Parliament and of the Council; of 26 June 2013 on the access to the business of credit institutions and the prudential supervision of credit institutions and investment firms (the "Directive 2013 /36/EU") (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 firms and (c) the national rules for the transposition of the Directive 2004 /39/EC of the European Parliament and of the Council of 21 April 2004 on the markets for financial instruments.

(h) The suspension in the membership condition or the expulsion of the counterparty from any payment system or securities settlement by means of which monetary policy operations payments are made, or any system of clearing and settlement of securities of the Eurosystem through which monetary policy operations are settled.

(i) Adoption in respect of the counterparty of a measure under the legislation transposing the articles of Articles 41 (1), 43 (1) and 44 of Directive 2013 /36/EU.

(j) The default or defective compliance by the counterparty of the rules relating to the risk control measures referred to in the previous general clause V. 2.1.

(k) The fact that the counterparty or any of its branches incurs an alleged breach of any agreement, contract or transaction concluded between that counterparty 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 early resolve any transaction within the framework of that agreement on the basis of the failure.

(l) The lack of referral by the counterparty of the information requested to it by the Banco de España in relation to the monetary policy operations, as well as the non-referral of relevant information that it causes serious consequences for the Banco de España.

m) The concurrence of an alleged non-compliance similar to those set out in these general clauses, in the framework of an agreement for the management of foreign reserves or own funds, concluded by the entity counterpart with any member of the Eurosystem.

n) Non-compliance by the counterparty against the Banco de España of any obligation to pay or to contribute or deliver collateral under the contractual documentation concluded by the Bank of Spain and counterparties in monetary policy operations, as well as the default or defective performance by the counterparty of the Eurosystem rules relating to the use of the collateral.

or) When the counterparty experiences an alteration in its financial, economic or financial situation that it may affect its ability to comply with the obligations arising from these general clauses, judgment of the Bank, and in particular in the 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, embargo, seizure, seizure, confiscation of all or part of their property or the holding of any other procedure aimed at protecting the public interest or the rights of its creditors and falls in the official register in which the counterparty is registered, obliging the latter to notify the Bank of Spain of the immediate form, any of these situations if they occur.

p) Where the counterparty is subject to the freezing of funds or other measures imposed by a Member State, which restrict its ability to make use of its funds.

q) The occurrence of any other assumption that may jeopardize the counterparty's compliance with the obligations arising from these general clauses or any other legal relationship established between that counterparty and a Eurosystem central bank.

r) For the failure or defective performance of any other obligation arising out of these general clauses, provided that, where possible, the counterparty does not proceed to the remedy in the the maximum period of 30 days, in the case of guaranteed transactions, and of ten days, in the case of swap transactions, in both cases since it was required by the Banco de España for the purpose of such a remedy.

The default assumptions listed in this section VI.2 will produce the effects set forth in paragraph VII below from the date of receipt by the counterparty of the Bank's notification of Spain declaring it incurs the same or the end of the grace period of up to three working days which, if any, the Banco de España would have granted to the counterparty to remedy the non-compliance in question.

VII. Effects arising from the assumptions of non-compliance

VII.1 In the event that a counterparty is incurred in a case of non-compliance or for reasons of prudence, the Banco de España may take any of the following measures:

a) Suspend, limit or exclude the counterparty's access to open market operations;

b) suspend, limit or exclude the access of the counterparty to the standing facilities;

(c) to declare the contracts between Banco de España and the counterparty or the existing transactions in advance;

(d) require the early fulfilment of non-maturity or contingent obligations;

e) apply the deposits that the counterparty maintains in Banco de España to satisfy the claims against it; and

(f) suspend the fulfilment of the obligations that may be applicable to the Banco de España vis-à-vis the counterparty until the counterparty has fulfilled its obligations.

VII.2 In order to ensure its uniform application, the Governing Council of the ECB may decide on the imposition of such measures, including the suspension, limitation or exclusion of access to open market operations. or permanent facilities.

VII.3 Furthermore, in addition to the measures provided for in paragraph VII.1 above, the Banco de España may additionally adopt any of the following measures:

(a) Claim the counterparty to a moratory interest equal to the official interest rate of the marginal lending facility, increased by two percent, on any amount that the Bank of Spain owed as a consequence of the non-compliance with the obligations of the operations covered by these general clauses. The moratory interest shall be payable from the day on which the non-compliance occurred;

(b) to claim compensation for damages in accordance with the law from the counterparty.

VIII. Discretionary measures

VIII.1 The Bank of Spain may take the following measures for reasons of prudence:

VIII.1.1 Suspend, limit or exclude the access of a counterparty to open market operations or to the permanent facilities of the Eurosystem, as referred to in paragraph VII.1 above;

VIII.1.2 Exempt a counterparty from the requirements of minimum reserves;

VIII.1.3 Reject or limit the use of assets provided as collateral in Eurosystem credit operations by a given counterparty, or to apply additional cuts to those assets, on the basis of any information that the Eurosystem considers relevant, in particular if the credit quality of the counterparty appears to show a high correlation with the credit quality of the assets mobilised as collateral.

In the event that the discretionary measures described in this paragraph VIII.1 are based on prudential information, the Eurosystem shall use such information, transmitted by the counterparties or by the supervisors, of strictly proportionate and necessary for the performance of its monetary policy execution functions.

VIII.2 In the event that a counterparty is incurred in an event of default, the Banco de España may suspend, limit or exclude its access to open market operations or facilities.

Eurosystem ' s permanent

VIII.3 The Banco de España shall duly justify and apply in a proportionate and non-discriminatory manner the discretionary measures provided for in paragraphs VIII.1 and VIII.2.

VIII.4 The Banco de España will determine, on the basis of any information it deems relevant, whether an issue, an issuer, a debtor or an guarantor meets the credit quality requirements required by the Eurosystem.

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

Where the rejection referred to in the previous paragraph is based on prudential information, the Eurosystem shall use that information, transmitted by counterparties or by supervisors, in a strictly appropriate manner. provided and necessary for the performance of its monetary policy execution functions.

The Eurosystem may exclude the following assets from the list of eligible marketable assets:

(a) Assets issued or endorsed by entities subject to the freezing of funds or other measures imposed by the Union in accordance with Article 75 of the Treaty, or by a Member State, that restrict the use of funds; or

(b) assets issued or endorsed by institutions in respect of which the Governing Council of the ECB has adopted a decision suspending or excluding its access to open market operations or standing facilities of the Eurosystem.

IX. Penalties for non-compliance with certain operating rules and for non-compliance with minimum reserve requirements

IX.1 Without prejudice to the right of the Banco de España to demand compliance with the obligations that have been breached and the effects that the non-compliance may have in addition to under the provisions of paragraph VII and VIII The Bank of Spain shall, in accordance with the provisions of the Guideline on the Eurosystem monetary policy, impose one or more penalties on the counterparty which fails to comply with the obligations of the Eurosystem. following:

IX.1.1 If the counterparty fails to comply with the reverse transactions and the foreign exchange swaps its obligations to adequately guarantee and to settle the amount awarded to the counterparty during all the duration of a given transaction or the outstanding amount outstanding for repayment of an operation in the event of an early termination by the Bank of Spain of the operation concerned, as provided for in the Guideline on the Framework of the monetary policy of the Eurosystem.

IX.1.2 If the counterparty defaults on deposit-taking operations, simple transactions and issuance of ECB debt certificates, the obligation to transfer an amount of cash sufficient to settle the amount awarded in accordance with the provisions of the Guideline on the Eurosystem monetary policy framework.

IX.1.3 If the counterparty fails to comply with the provisions laid down by the Bank of Spain and the ECB on the use of eligible collateral, in particular those relating to the obligation to provide collateral only eligible assets and to comply with the rules on their use provided for in the Guideline on the Eurosystem monetary policy. The penalties shall be applicable irrespective of whether the counterparty is actively involved in monetary policy operations or not.

IX.1.4 If the counterparty fails to comply with the procedures for closing transactions and the conditions for access to the marginal lending facility, the obligation to provide in advance sufficient eligible collateral for the case of any negative balance remaining in the settlement account of the counterparty in TARGET2 after the completion of the transaction closure control procedures that it requires automatically be considered as a request for recourse to the marginal lending facility as per the provided for in the Guideline on the Eurosystem monetary policy framework.

IX.2 The penalties imposed in accordance with paragraph IX.1 shall be:

a) Only pecuniary; or

b) pecuniary and non-pecuniary.

IX.3 In the event that a counterparty fails to comply with any of the obligations under the previous Section IX.1, the Banco de España will impose a financial penalty for each non-compliance. The financial penalty and, where appropriate, the grace periods which may be applicable on the basis of the type of non-compliance, are those provided for in the Guideline on the Eurosystem monetary policy framework.

IX.4 If the counterparty fails to meet the obligations of previous IX.1.1 and IX.1.2 paragraphs more than two times over a period of twelve months and, for each non-compliance, the following is true:

a) A pecuniary penalty is applicable;

(b) each decision to impose a financial penalty has been notified to the counterparty; and

c) each case of non-compliance is related to the same type of non-compliance,

the Banco de España will suspend the counterparty in the event of a third non-compliance (and in each subsequent breach) of an obligation of the same type in the corresponding twelve-month period. The 12-month period shall be calculated from the date of the first non-compliance with the obligations of paragraphs IX.1.1 and IX.1.2, as appropriate in each case.

The suspension imposed by the Eurosystem under this paragraph shall apply in respect of any subsequent open market operation of the same type as the open market operation of which the the penalty to be applied as provided for in this paragraph.

The period of suspension imposed in accordance with this paragraph shall be determined in accordance with Annex VII to the Guideline on the monetary policy of the Eurosystem.

IX.5 If the counterparty fails to comply with the obligations under IX.1.3 more than two times over a period of twelve months and, for each non-compliance, the following is true:

a) A pecuniary penalty is applicable;

(b) each decision to impose a financial penalty has been notified to the counterparty;

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

the Eurosystem shall suspend the counterparty for the subsequent open market operation in the event of a third non-compliance (and in each subsequent breach) in the 12-month period. corresponding. The 12-month period shall be calculated from the date of the first non-compliance with the obligations of paragraph IX.1.3.

IX.6 In exceptional cases, the Banco de España may suspend a counterparty for a period of three months in respect of all future Eurosystem monetary policy operations for any non-compliance. of the obligations laid down in paragraph IX.1 above. In such cases, the Bank of Spain shall take into account the seriousness of the non-compliance and, in particular, the amounts involved and the frequency and duration of the non-compliance.

IX.7 The period of suspension imposed by the Banco de España pursuant to paragraphs IX.4 to IX.6 above shall be applied in addition to the pecuniary penalty applicable in accordance with paragraph IX.3 above.

IX.8 Without prejudice to the sanctions imposed by the ECB on institutions which fail to fulfil their minimum reserve maintenance obligations as laid down in 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 infringement of the minimum reserve requirements, the Eurosystem may suspend the participation of the counterparty concerned in the open market operations.

IX.9. The Banco de España may adopt suspension measures in respect of branches in Spain of monetary policy counterparties established in other Member States that have been suspended.

X. Force majeure

The Banco de España assumes no liability for the damages that counterparties in monetary policy operations may suffer as a result of acts or events constituting force major, including strikes (whether personal or not), wars, lockout, social unrest, fire, flooding, fuel shortages, electrical power, impossibility of transport, disaster affecting the availability of resources Computer, acts or resolutions of public authorities or any other cause independent of the will of the Banco de España.

XI. Applicable law and jurisdiction

The contracting parties to monetary policy operations are subject to these general clauses, with the law applicable to the Spanish law. For all actions and complaints that may arise from them and without prejudice to the jurisdiction of the Court of Justice of the European Union, the Courts and Tribunals of Madrid (capital) shall be competent, with the waiver of both the Bank of Spain and the counterparty to any other jurisdiction that may correspond to them, and by agreeing as a place for the fulfilment of the obligations of the Bank of Spain's domicile, located at the 48th street of Calle Alcalá, in Madrid.

XII. Address and notifications

XII.1 For the purposes of notifications and requirements, the address of the counterparty shall be deemed to be the address of the counterparty, which has made it clear in the contractual documentation that it subscribes with the Banco de España as planned in Paragraph I. 2.4 above or, where applicable, the other who subsequently signed the document in writing, in writing and in a feisty form, to the Banco de España as a new address.

XII.2 Any notification between the counterparty shall be made in writing and may be made, unless otherwise specified in the contractual documentation between the counterparty and the Banco de España or in the technical applications or other provisions referred to in paragraph I. 2.2 above, by physical delivery (by registered post or courier) of the notification at the address in question, with effect from the date of its notification. receipt.

XIII. Modification

The present general clauses may be amended at any time by the Executive Board of the Bank of Spain and any agreed modifications will be applicable to counterparties as soon as the Bank of Spain Spain would have communicated it to them by publication in the "Official State Gazette".

The counterparty may not claim to be unaware of these general clauses or their modifications once they have been made public by the Banco de España.