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 Autonomy of the Banco de España; in Article 66.1 (a) and (i) of the Regulation Internal Banco de España and Clause XIII of the "General Clauses applicable to the Monetary Policy Operations of the Banco de España" approved by Resolution of the Executive Commission of the Bank of Spain of 11 December 1998, according to the same have been amended at any time (hereinafter the "General Clauses"), and on the occasion of the adoption by the European Central Bank of Guideline ECB/2016/31 of 2 November 2016 amending Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the policy framework The ECB 's monetary policy and the ECB' s monetary policy framework, as set out in the framework of the European Central Bank (ECB) and the ECB ' s Guideline ECB/2016/32 of 2 November 2015 amending Guideline (EU) 2016/65 of the ECB of 18 November 2015 on the valuation haircuts used in the implementation of the the Eurosystem monetary policy (ECB/2015/35), agrees:

First.

Give the following wording to the General Clauses clause number 1:

" V. 1. Eligible collateral assets.

V. 1.1. In order to participate in the credit operations of the Banco de España, counterparties shall provide such 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 guarantee asset framework 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.

The ECB publishes and updates the list of eligible marketable assets on the terms and with the exceptions provided for in the Guideline on the Eurosystem monetary policy framework.

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 the processes of designation and surveillance in the performance of the latter) by means of which compliance with the required minimum credit quality requirement shall be determined each asset for its eligibility as collateral is those set out in the Guideline on the Eurosystem monetary policy framework.

V. 1.4. The Bank of Spain 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 had already been requested. No advice on the eligibility of assets shall be provided before the relevant circumstances are met. '

Second.

Give the following wording to the General Clauses clause IX number 1:

" IX.1. Without prejudice to the right of the Banco de España to demand compliance with the obligations under way and the effects which the non-compliance may have in addition to the protection provided for in paragraphs VII and VIII above, as well as The Bank of Spain shall, in accordance with the provisions of the Guideline on the monetary policy of the Eurosystem, impose one or more penalties on the counterparty which does not comply with any of the following: the following obligations:

IX.1.1. If the counterparty fails in respect of the reverse transactions and the foreign exchange swaps its obligations, in accordance with the provisions of the Guideline on the Eurosystem monetary policy, to ensure adequate and adequate to settle the amount awarded to the counterparty for the entire duration of a given transaction, including the outstanding amount outstanding for repayment of an operation in the event of an early termination by the Banco de España of the transaction corresponding.

IX.1.2. If the counterparty fails to comply with the deposit-taking operations, the simple transactions and the issuance of ECB debt certificates, the obligation to transfer a sufficient amount of cash 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 eligible collateral only and to comply with the rules on its 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 regard to 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 to be considered automatically as a request for recourse to the marginal lending facility as provided for in the Guideline on the the Eurosystem monetary policy framework.

IX.1.5. If the counterparty fails to comply with any obligation to pay in accordance with the provisions of Article 144a (3) of the Guideline on the framework of monetary policy.

IX.1.6. If the counterparty defaults, in whole or in part, to any obligation vis-à-vis the Banco de España for the repayment of the financing granted in a credit operation, or for the payment of the repurchase or delivery price of the assets acquired under a buy-to-buy transaction with a repurchase agreement, at maturity or at the date set for it. "

Third.

Give the following wording to paragraph 3 in clause IX of the General Clauses:

" IX.3. In the event that a counterparty fails to comply with any of the obligations of the previous IX.1.1 to IX.1.5, 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.

The pecuniary sanction corresponding to a breach of the obligations of the previous section IX.1.6 will be imposed only if they are not available as a result of such non-compliance measures provided for in paragraph VII.3 of the General Clauses. This penalty shall be determined in accordance with the rules laid down by the Guideline on the monetary policy for the calculation of the financial penalties corresponding to the non-compliance with the previous Section IX.1.1. "

Fourth.

Give the following wording to paragraph 4 in clause IX of the General Clauses:

" IX.4. If the counterparty fails to comply with the obligations of paragraphs IX.1.1 and IX.1.2 above on more than two occasions over a period of 12 months and, for each non-compliance, the following is true:

(a) a pecuniary penalty is imposed;

(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. "

Fifth.

Give the following wording to paragraph 5 in clause IX of the General Clauses:

" IX.5. If the counterparty fails to comply with the obligations of Section IX.1.3 on more than two occasions over a period of 12 months and, for each non-compliance, the following is true:

(a) a pecuniary penalty is imposed;

(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 under paragraph IX.1.3. '

Sixth.

The amendments to the General Clauses agreed in the first to the fifth points above shall apply with effect from 1 January 2017.

Seventh.

The text that is approved as the Anejo of 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 2013), 29 November 2013 (BOE of 30 November), 14 May 2014 (BOE of 23 May 2014), 23 April 2015 (BOE), 23 April 2015 (BOE) of 28 April 2015), 28 October 2015 (BOE of 31 December 2015) and this Resolution.

Madrid, 20 December 2016.-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 operational 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 that will apply to monetary policy operations which Banco de España will execute as a member of the Eurosystem with counterparties.

I. 2. They shall apply to the monetary policy operations implemented by the Banco de España:

I. 2.1. As provided for in the General Clauses, in its current version at any time;

I. 2.2. The technical applications and other provisions, instructions, resolutions or specifications of the Bank of Spain relating to the implementation of the Eurosystem monetary policy, as they are in force at any 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. As set out in the contracts concluded between the Banco de España and the counterparties in monetary policy operations, they shall be in accordance with the models that the Banco de España has approved for the purpose at any time; and

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

I. 3. In the event of a 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 referred to in 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 permanent facilities; and

(c) 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 fixed-term deposits.

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

(a) main financing operations;

(b) longer term finance operations;

(c) tuning operations; and

(d) structural operations.

II.3. The permanent facilities are:

(a) 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 conduct of auctions and the (a) bilateral trade negotiations) and their liquidation, and the different arrangements for the contracting and formalisation of transactions, shall be those provided for in the Guideline on the Eurosystem monetary policy, with the specific features which, where appropriate, be laid down in the General Clauses and in the technical and other applications provisions laid down in paragraph I. 2.2. without any other limitations than those resulting from the regulation of the organised markets in which transactions are negotiated and settled, depending on the nature of 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 formalised in accordance with the technical procedures available to them by the Bank of Spain and, where appropriate, set out in the relevant contractual documentation.

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 monetary policy operations. 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 with immediate information that is 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 which have been formalised with the Banco de España may not be transferred, taxed or traded by such counterparties without the prior written consent of the Banco de España.

III.6. The Banco de España will sell all the transactions referred to in these General Clauses in euro, except for payments relating to foreign exchange swap transactions 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 monetary policy operations agreed under their coverage.

The contravention of the provisions of this section III.7. imply that the counterparty will be obliged to the Banco de España for the signature of any proxy or person entitled to whom the counterparty would have omitted the notified notification, not being able to invoke the revocation or reduction of the proxy even if it is valid in law until the Bank of Spain has received the timely notification.

IV. Eligible counterparties.

IV.1. The Bank of Spain 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 monetary policy of the Eurosystem.

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

IV.3. The Bank of Spain 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, 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 collateral assets.

V. 1.1. In order to participate in the credit operations of the Banco de España, counterparties shall provide such 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 guarantee asset framework 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.

The ECB publishes and updates the list of eligible marketable assets on the terms and with the exceptions provided for in the Guideline on the Eurosystem monetary policy framework.

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 the processes of designation and surveillance in the performance of the latter) by means of which compliance with the required minimum credit quality requirement shall be determined each asset for its eligibility as collateral is those set out in the Guideline on the Eurosystem monetary policy framework.

V. 1.4. The Bank of Spain 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 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, in order to cover the risk of the risk of risk arising from possible financial losses which would arise if such guarantees had to be executed due to a non-compliance with 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 requirements for adjusting the margin of guarantee provided for in the Guidance on the monetary policy framework of the Eurosystem and those which, where appropriate, will be established by the Banco de España in the relevant technical applications.

V. 2.3. In addition, the rules for the use of guarantee assets provided for in the Guideline on the monetary policy of the Eurosystem, under which they are established, shall apply to the credit operations of the Bank of Spain. limitations on the use of an asset, regardless of whether the asset meets the eligibility criteria. 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 regime 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 provisions of the sixth additional provision of the Law on Autonomy.

V. 3.2. Eligible marketable assets registered or deposited in Spain may be pledged or be transferred by means of sale (simple, double or repurchase agreement) in accordance with the procedures approved by the Bank of Spain. Spain 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 Bank of Spain 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 "CCBM", by its English name), the use of links between settlement systems of securities which have been favourably assessed by the Eurosystem or 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 required for the implementation and procedures for the operation of the Eurosystem. cross-border use of guarantee assets 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. Assumptions of non-compliance.

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 counterparty's creditors ' competition, of the settlement opening order for 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 from these General Clauses, inter alia, for the following reasons:

(a) The adoption in respect of the counterparty of a reorganisation measure or any other similar measure 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 directors 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 its pre-contractual, contractual statements, or which are to be made by the counterparty in accordance with the applicable legal provisions.

(g) The revocation or suspension of the authorisation held by the counterparty to carry out its activity under (a) the national legislation transposing Directive 2013 /36/EU of the European Parliament and of the Council Council of 26 June 2013 on 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 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 general clause V. 2.1. previous.

(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 of counterpart with any member of the Eurosystem.

(n) The default 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.

(o) 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, in the case of the Bank, and in particular in the case 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 out of these General Clauses or any other legal relationship established between that counterparty and a Eurosystem central bank.

(r) The failure to comply or otherwise defective any other obligation arising out of these General Clauses, provided that, where possible, the counterparty does not proceed to it within the time limit maximum 30 days, in the case of guaranteed operations, and 10 days, in the case of foreign exchange swap transactions, in both cases since it was required by the Banco de España for the realization 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 alleged 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 early compliance with unexpired 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 facilities. permanent.

VII.3. In addition to the measures provided for in paragraph VII.1. The Bank of Spain may further adopt any of the following measures:

(a) to claim to the counterparty 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 result of 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 prudential reasons:

(a) suspend, limit or exclude the access of a counterparty to Eurosystem monetary policy operations as referred to in paragraph VII.1 above;

(b) to 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 shows a high correlation with the credit quality of the assets provided as collateral.

VIII.2. For prudential reasons, access to Eurosystem monetary policy operations of the following counterparties shall be suspended, limited or excluded:

(a) those that are subject to the supervision referred to in Article 55 (b) (i) of the Guideline on the Eurosystem monetary policy framework, but which do not meet the requirements of the funds (a) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 21 March 2014 on the supervision of the European Union's financial institutions

(b) those that are subject to the comparable supervision referred to in Article 55 (b) (iii) of the Guideline on the Eurosystem monetary policy framework, but which do not meet the requirements of the Eurosystem monetary policy. own funds comparable to those laid down in Regulation (EU) No 575/2013, on an individual basis or on a consolidated basis.

Except for cases where the Eurosystem considers that compliance can be restored through the adoption of appropriate recapitalisation measures in time, in accordance with the provisions of the Governing Council. of the ECB.

VIII.3. In the context of the assessment of the financial soundness of a counterparty in accordance with Article 55 (c) of the Guideline on the monetary policy of the Eurosystem, and without prejudice to the adoption of other measures The Bank of Spain may suspend, limit or exclude, for prudential reasons, access to the Eurosystem ' s monetary policy operations from the following counterparties:

(a) counterparties in respect of which the relevant national central bank and the ECB have not been provided with information on capital ratios, in accordance with Regulation (EU) No 575/2013, in time, and at the latest, in the 14-week period from the end of the relevant quarter;

(b) counterparties that are not required to report on capital ratios under Regulation (EU) No 575/2013 but on which the relevant national central bank and the ECB have not been provided comparable information, as provided for in point (b) (iii) of Article 55 (b), in time and at the latest within 14 weeks of the end of the relevant quarter.

Where access to Eurosystem monetary policy operations has been suspended, limited or excluded, it may be restored when the relevant national central bank and the ECB have been provided with information. and the Eurosystem determines that the counterparty fulfils the financial soundness criterion in accordance with Article 55 (c) of the Guideline on the Eurosystem monetary policy framework.

VIII.4. Without prejudice to the adoption of other discretionary measures, the Bank of Spain shall, for prudential reasons, limit access to the Eurosystem ' s monetary policy operations of counterparties to the relevant authorities. consider to be unviable or reasonably foreseeable to be viable in the near future, on the basis of the conditions laid down in Article 18 (4) (a) to (d) of Regulation (EU) No 806/2014 or set out in Article 20; paragraphs 1 and 2 of Law 11/2015, of June 18, recovery and resolution of entities of credit and investment services companies (hereinafter referred to as "Law 11/2015"). The limitation shall be established at the level of financing under the Eurosystem ' s credit operations in force at the time when such counterparties are deemed to be unviable or reasonably foreseeable to be in the interest of the Eurosystem. a near future.

VIII.5. In addition to limiting access to its monetary policy operations in accordance with paragraph 4, the Banco de España may, on prudential grounds, suspend, further limit or exclude access by counterparties deemed to be non-viable. it is reasonably foreseeable that they will be in the near future in accordance with paragraph VIII.4 above and fulfil the following conditions:

(a) the resolution authority has not imposed a resolution measure on them because there are reasonable prospects for other alternative measures in the private or supervisory sector, as referred to in Article 18 (1), (b) of Regulation (EU) No 806/2014 and Article 19 (1) (b) of Law 11/2015, may prevent their infeasibility within a reasonable period of time, in view of the development of the alternative private or supervisory sector measure;

(b) is deemed to comply with the conditions of resolution under Article 18 (1) of Regulation (EU) 806/2014 or Article 19 (1) of Law 11/2015 in view of the evolution of the resolution measure;

(c) are the result of a resolution measure, as defined in Article 3, point 10, Regulation (EU) 806/2014 and in Article 2 of Law 11/2015, or of an alternative measure of the private or supervisory sector, to which it refers Article 18 (1) (b) of Regulation (EU) No 806/2014 and Article 19 (1) (b) of Law 11/2015.

VIII.6. In addition to limiting access to its monetary policy operations in accordance with paragraph VIII.4 above, the Banco de España will suspend, further limit or exclude, for prudential reasons, the access of counterparties that are considers that they are infeasible or that they are reasonably foreseeable that they will be viable in the near future and that, however, no resolution measure has been imposed on them or there is a reasonable prospect of other alternative measures in the sector private or supervisory authorities may prevent their infeasibility within a reasonable period of time, as provides for Article 18 (1) (b) of Regulation (EU) No 806/2014 and Article 19 (1) (b) of Law 11/2015.

VIII.7. Where the discretionary measures are based on prudential information, the Eurosystem shall use such information, provided by the supervisors or counterparties, in a strictly proportionate and necessary manner for the Eurosystem. performance of its monetary policy execution functions.

VIII.8. 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 to the permanent facilities of the Eurosystem.

VIII.9. 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.10. The Banco de España shall 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 operational 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 under way and the effects which the non-compliance may have in addition to the protection provided for in paragraphs VII and VIII above, as well as The Bank of Spain shall, in accordance with the provisions of the Guideline on the monetary policy of the Eurosystem, impose one or more penalties on the counterparty which does not comply with any of the following: the following obligations:

IX.1.1. If the counterparty fails in respect of the reverse transactions and the foreign exchange swaps its obligations, in accordance with the provisions of the Guideline on the Eurosystem monetary policy, to ensure adequate and adequate to settle the amount awarded to the counterparty for the entire duration of a given transaction, including the outstanding amount outstanding for repayment of an operation in the event of an early termination by the Banco de España of the transaction corresponding.

IX.1.2. If the counterparty fails to comply with the deposit-taking operations, the simple transactions and the issuance of ECB debt certificates, the obligation to transfer a sufficient amount of cash 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 eligible collateral only and to comply with the rules on its 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 regard to 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 to be considered automatically as a request for recourse to the marginal lending facility as provided for in the Guideline on the the Eurosystem monetary policy framework.

IX.1.5. If the counterparty fails to comply with any obligation to pay in accordance with the provisions of Article 144a (3) of the Guideline on the framework of monetary policy.

IX.1.6. If the counterparty defaults, in whole or in part, to any obligation vis-à-vis the Banco de España for the repayment of the financing granted in a credit operation, or for the payment of the repurchase or delivery price of the assets acquired under a buy-to-buy transaction with a repurchase agreement, due to its maturity or at the date set for that purpose.

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

(a) pecuniary only; or

(b) pecuniary and non-pecuniary.

IX.3. In the event that a counterparty fails to comply with any of the obligations of the previous IX.1.1 to IX.1.5, 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.

The pecuniary sanction corresponding to a breach of the obligations of the previous section IX.1.6 will be imposed only if they are not available as a result of such non-compliance measures provided for in paragraph VII.3 of the General Clauses. This penalty shall be determined in accordance with the rules laid down by the Guideline on the monetary policy for the calculation of the financial penalties corresponding to the non-compliance with the previous Section IX.1.1.

IX.4. If the counterparty fails to comply with the obligations of paragraphs IX.1.1 and IX.1.2 above on more than two occasions over a period of 12 months and, for each non-compliance, the following is true:

(a) a pecuniary penalty is imposed;

(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 of Section IX.1.3 on more than two occasions over a period of 12 months and, for each non-compliance, the following is true:

(a) a pecuniary penalty is imposed;

(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 breach of its obligations. set out in the previous section IX.1. 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 apply in addition to the pecuniary penalty applicable in accordance with paragraph IX.3 above.

IX.8. Without prejudice to the penalties 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 2531/98. 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 majeure, including strikes (whether personal or not), wars, lockout, social unrest, fire, flooding, fuel shortages, electrical energy, impossibility of transport, disaster affecting the availability of computer media, 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 applicable law being 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 of the fulfilment of the obligations the address of the Banco de España sito in the n. 48 of Alcalá Street, 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 entered into the contractual documentation which it subscribes with the Banco de España as provided for in paragraph I. 2.4 above. or, where appropriate, the other who subsequently signed the documentation in writing and has communicated in writing to the Banco de España as a new address.

XII2. 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 technical or other applications. provisions referred to in paragraph I. 2.2 above, by physical delivery (by registered post or courier) of the notification at the address concerned, with such notification having effect from the date of its receipt.

XIII. Modification.

The present General Clauses may be modified 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.