Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD)

REGULATION ON THE DOMESTIC ADDRESS EXCHANGE SERVICE (SRD)

year 2007 / number 04 (Consolidated text as of 24/10/2011 – Update I)

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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INDEX PART I DEFINITIONS AND GENERAL PROVISIONS...................................................... 4 Article 1 – Definitions ............................................................................................................................................................................... 4 Article 2 – Function of the Service ............................................................................................................................................................. 4 Article 3 – Service Manager................................................................................................................................................................ 4 Article 4 – Operational aspects and economic conditions......................................................................................................................... 4 PART II GENERAL FEATURES OF THE SRD SERVICE ................................................ 5 Article 5 – Objectives ...................................................................................................................................................................................... 5 Article 6 – PARTICIPANTS and modes of participation...............................................................................................................................5 Article 7 – Causes of exclusion ................................................................................................................................................................. 5 Article 8 – Dates and times .............................................................................................................................................................................. 5 Article 9 – Tariffs ....................................................................................................................................................................................... 5 Article 10 – Modifications to the corporate structure of the PARTICIPANT........................................................................................................... 5 Article 11 – Final provisions ................................................................................................................................................................. 5 Article 12 – Legislative sources...................................................................................................................................................................... 5 PART III SPECIFIC FEATURES OF THE SRD SERVICE ................................................ 6 Article 13 – Subject matter of the SRD SERVICE.................................................................................................................................................... 6 Article 14 – Location of the ADDRESS EXCHANGE............................................................................................................................................... 6 Article 15 – Persons in charge of the ADDRESS EXCHANGE ...................................................................................................................................... 6 Article 16 – Modes of the ADDRESS EXCHANGE ....................................................................................................................................... 6 Article 17 – Accounting settlement SRD SERVICE................................................................................................................................................................................................7 Article 18 – Exchange of unpaid bank checks ...................................................................................................................................... 7 Article 19 – Entry into force ................................................................................................................................................................... 8

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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PART I DEFINITIONS AND GENERAL PROVISIONS Article 1 – Definitions

1. For the purposes of this Regulation, the following terms are understood as: a) "Central Bank": the Central Bank of the Republic of San Marino; b) "Participants": banks and any branches of foreign banks having their seat in the Republic of San Marino that participate in the Domestic Address Exchange Service (SRD); c) "presenting bank": the bank that has negotiated the bank check; d) "drawee bank": the bank on which the bank check is drawn; e) "homogeneous categories": addresses of the same kind and nature; f) "multilateral clearing": clearing of debit and credit items among Participants relating to homogeneous categories of interbank operations; g) "interbank account": account maintained between Participants; h) "accounting flow": electronic flow containing the identifying data of the bank check; i) "image flow": electronic flow containing the digitized image of the bank check; j) "formal discharge": document issued by the creditor to attest to the payment made by the debtor; k) "Addresses": negotiable instruments, documents, and correspondence; l) "San Marino Interbank Network (RIS)" or "interbank network": telematic infrastructure for the transmission of information between operators of the San Marino payment system; m) "Domestic Address Exchange Service (SRD)" or "SRD Service": the service for the exchange of correspondence and documents between Participants; n) "third party": natural or legal person other than the Participant, appointed by the latter for the SRD Service.
2. In the subsequent articles of this Regulation, words referring to these definitions are printed in small capitals.

Article 2 – Function of the Service

1. The SRD SERVICE allows banks to exchange ADDRESSES daily.

Article 3 – Service Manager

1. The SRD SERVICE is managed by the CENTRAL BANK of the Republic of San Marino.

Article 4 – Operational aspects and economic conditions

1. The operational aspects and economic conditions of the SRD SERVICE are established by the CENTRAL BANK and reported in the specific "technical sheet".
2. The "technical sheet" and subsequent modifications are subject to specific communication to PARTICIPANTS and publication on the website of the CENTRAL BANK.

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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3. Modifications take effect ten calendar days after the date of the relevant communication, to be made by registered letter with return receipt.

PART II GENERAL FEATURES OF THE SRD SERVICE

Article 5 – Objectives

1. The SRD SERVICE aims to make the daily exchange of ADDRESSES more effective and to guarantee optimal levels of security, certainty, and reliability.

Article 6 – PARTICIPANTS and modes of participation

1. Banks and branches of foreign banks will receive specific communication from the CENTRAL BANK regarding participation in the SRD SERVICE.
2. The CENTRAL BANK also participates in the same service as a PARTICIPANT.
3. Participation in the SRD SERVICE is carried out through the direct use of exchange modes and obliges the PARTICIPANT to observe this Regulation in relations with the CENTRAL BANK, in its dual role as manager of the SRD SERVICE and PARTICIPANT, and in relations with other PARTICIPANTS in the same service.

Article 7 – Causes of exclusion

1. The CENTRAL BANK may exclude the participation of a PARTICIPANT from the SRD SERVICE when: a) it repeatedly and without justification violates the obligation to be present at the domestic address exchange location; b) it is subject to extraordinary proceedings under Part II, Title II of Law No. 165/2005; c) it seriously violates the provisions of this Regulation; d) the requirements for adherence to the SRD SERVICE no longer exist.

Article 8 – Dates and times

1. The dates and times for the sessions of the SRD SERVICE are fixed by the CENTRAL BANK.

Article 9 – Tariffs

1. The PARTICIPANT is required to pay the tariffs fixed by the CENTRAL BANK for participation in the SRD SERVICE, as indicated in the "technical sheet".

Article 10 – Modifications to the corporate structure of the PARTICIPANT

1. Modifications to the sole corporate name and/or legal form of a PARTICIPANT must be promptly communicated to the CENTRAL BANK, so that it can update the registry archives. In cases of merger or spin-off, all procedures required for new adherences are necessary.

Article 11 – Final provisions

1. This Regulation renders inapplicable the convention of March 18, 1986, and subsequent modifications, known as the "Convention for the Service of Daily Clearing among Credit Institutions seated in the Republic of San Marino" and repeals any other provision of the CENTRAL BANK contrary to this Regulation.

Article 12 – Legislative sources

1. This Regulation is issued pursuant to Articles 37 and 38 of Law No. 96 of June 29, 2005, and subsequent modifications.

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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PART III SPECIFIC FEATURES OF THE SRD SERVICE

Article 13 – Subject matter of the SRD SERVICE

1. Within the SRD SERVICE, checks negotiated by PARTICIPANTS and drawn on other PARTICIPANTS, as well as other ADDRESSES relating to operations agreed upon between them, are exchanged, as specified in the "technical sheet".

Article 14 – Location of the ADDRESS EXCHANGE

1. The physical exchange of ADDRESSES takes place daily at the registered office of the CENTRAL BANK, on the days and at the times indicated in the "technical sheet".
2. The PARTICIPANT is required to participate, arriving without delay, at all sessions, in order to exchange ADDRESSES with other PARTICIPANTS, with the obligation not to leave until the session has been declared closed.
3. If, due to force majeure known or knowable on the day preceding the day of non-participation, it is not possible to ensure presence, the PARTICIPANT must notify the CENTRAL BANK and other PARTICIPANTS as soon as possible and no later than the working day preceding the day of non-participation. For unforeseeable or exceptional events only that make participation in the SRD SERVICE impossible, the communication must be made no later than the time scheduled in the "technical sheet" for the day of non-participation. In such an event, other PARTICIPANTS may send the ADDRESSES to the absent PARTICIPANT by the most appropriate means and under the same economic conditions provided by this Regulation. The CENTRAL BANK, in case of exceptional events, may establish that the SRD SERVICE is not feasible on a particular day and gives immediate communication to all PARTICIPANTS.

Article 15 – Persons in charge of the ADDRESS EXCHANGE

1. For the execution of the physical operations of the exchange of ADDRESSES, PARTICIPANTS may provide with their own personnel or delegate a THIRD PARTY.
2. Each PARTICIPANT must communicate in writing to the CENTRAL BANK the names and relative handwritten signatures of the persons in charge for the delivery and withdrawal of ADDRESSES; it must also give timely communication of the cessation and replacement of the aforementioned persons and in any case keep the CENTRAL BANK constantly updated on any variations. Copies of such communications must be kept available to PARTICIPANTS in the premises designated for the sessions of the SRD SERVICE.
3. Each PARTICIPANT is fully responsible for the conduct of the THIRD PARTY appointed, so it is their duty to verify the existence and permanence of the requirements of honorability, as provided by current supervisory provisions with reference to corporate executives of banks.
4. The CENTRAL BANK assumes no responsibility regarding the regularity of the mandates and their updates, as well as, more generally, regarding everything concerning the exchange of ADDRESSES between PARTICIPANTS or their delegates.

Article 16 – Modes of the ADDRESS EXCHANGE

1. ADDRESSES are exchanged by PARTICIPANTS with the following modes: a) ADDRESSES must be grouped by HOMOGENEOUS CATEGORIES indicated in the "technical sheet" and inserted, with their respective summary lists, in packages to be closed in such a way that opening them requires tearing the envelope; b) each package must refer to only one PARTICIPANT and must be accompanied by a list containing the indications specified in the "technical sheet". This list must be signed for receipt by the PARTICIPANT picking up the package and retained by the presenting PARTICIPANT;

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

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2. PARTICIPANTS, by participating in the SRD SERVICE, waive the FORMAL DISCHARGE on ADDRESSES.
3. Each PARTICIPANT is required to examine the ADDRESSES delivered to them to ascertain their regularity and is also required to return any irregular ADDRESSES.
4. The return of any irregular ADDRESSES must be immediately communicated to the presenting PARTICIPANT using the most suitable tool and must take place no later than the second working day following the day of the initial exchange.

Article 17 – Accounting settlement SRD SERVICE

1. The accounting settlement of the exchanged ADDRESSES takes place on INTERBANK ACCOUNTS maintained between PARTICIPANTS in the SRD SERVICE.

Article 18 – Exchange of unpaid bank checks

1. For unpaid checks, communication will be given by the DRAWEE BANK with a suitable message of the SAN MARINO INTERBANK NETWORK or, in the absence thereof, with an accounting letter exchanged in the SRD SERVICE, no later than the second working day following the day of the initial exchange. The aforementioned term is to be considered peremptory; failure to respect it determines the presumption of payment, without prejudice to the right to assert one's rights in court.
2. No later than the sixth working day following the day of the initial exchange, the DRAWEE BANK must return to the PRESENTING BANK a certified copy of the notarial act of protest, debiting the expenses or, alternatively, crediting the face value of the instrument, previously debited, with a suitable message of the SAN MARINO INTERBANK NETWORK or, in the absence thereof, with an accounting letter exchanged in the SRD SERVICE.
3. Unpaid bank checks, negotiated beyond the terms provided in Article 149 of Law No. 165/2005, are returned unprotested to the PRESENTING BANK together with the communication provided in paragraph 1 and within the same terms.
4. The exchanges of ADDRESSES referred to in paragraphs 1 and 2 are settled individually on the INTERBANK ACCOUNTS maintained between PARTICIPANTS in the SRD SERVICE.
5. Exceptional events that prevent the PARTICIPANT from participating in the SRD SERVICE or carrying out the communications referred to in paragraphs 1 and 2 are promptly communicated to the CENTRAL BANK using the most suitable tool, in order to obtain an extension of the terms provided in this article. The CENTRAL BANK, having verified the obstructive nature and unpredictability of the event, may extend the aforementioned terms by as many days as those elapsed between the beginning and the end of the impediment, communicating this to all PARTICIPANTS.
6. Exceptional events that prevent the CENTRAL BANK from carrying out the SRD SERVICE are promptly communicated to PARTICIPANTS using the most suitable tool. In such cases, the aforementioned terms are understood to be extended by as many days as those elapsed between the beginning and the end of the impediment.

Article 19 – Entry into force

1. This Regulation will enter into force on June 1, 2007, and will apply to all ADDRESSES exchanged from that date.

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

• Technical Sheet -
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TECHNICAL SHEET Operational aspects and economic conditions

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

• Technical Sheet -
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TECHNICAL SHEET OPERATIONAL ASPECTS The points referred to by the Regulation on the Domestic Address Exchange Service (SRD) are specified below:

Tariffs Article 9 – Tariffs No tariffs are charged to PARTICIPANTS.

Days and times Article 14 – Location of the ADDRESS EXCHANGE The exchange of ADDRESSES takes place on all working days defined by the CENTRAL BANK. The opening time of the SRD SERVICE is set at 9:00, while the closing time is set at 11:00. Communication of non-participation in the SRD SERVICE for unforeseeable or exceptional events only must take place no later than 9:00 on the day of non-participation.

Categories of ADDRESSES Article 13 – Subject matter of the SRD SERVICE Article 16 – Modes of the ADDRESS EXCHANGE – paragraph 1, letter a).

1. Bank checks negotiated by PARTICIPANTS and drawn on other PARTICIPANTS The list of negotiated bank checks must contain the date of the exchange day in the SRD SERVICE, the amount and number of individual checks, the total amount and number of the remittance.
2. Extinguishment of exchange instruments (bills of exchange and drafts) and/or commercial collections (limited to Ri.Ba. and order confirmations) payable at other PARTICIPANTS The list of extinguished instruments must contain the date of the exchange day in the SRD SERVICE, the amount and maturity of individual instruments, the total amount and number of extinguished instruments, with attached accounts and copies of individual extinguished instruments.
3. Documented operations, also on behalf of third parties, relating to various operations between PARTICIPANTS The list of documented operations must contain the date of the exchange day in the SRD SERVICE, the amount of individual operations, the indication of the type of documented operation, the total amount of documented operations, with attached accounts and any attached documents.
4. Generic correspondence The list of generic correspondence must contain the date of the exchange day in the SRD SERVICE and the number of letters/correspondence sent to the other PARTICIPANT. Any return receipts provided for generic correspondence are signed by the receiving PARTICIPANT.

Indelible stamp Article 16 – Modes of the ADDRESS EXCHANGE – paragraph 1, letter d). The stamp that the presenting PARTICIPANT must apply to the so-called remaining ADDRESSES must contain the name of the PARTICIPANT and the wording "Address exchanged in the Domestic Address Exchange Service on dd/mm/yyyy".

Central Bank of the Republic of San Marino Regulation No. 2007-04 on the Domestic Address Exchange Service (SRD) (Update I)

• Technical Sheet -
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ECONOMIC CONDITIONS The economic conditions provided for the accounting settlement of ADDRESSES exchanged in the SRD SERVICE are listed below:

1. Negotiated checks: remittances a) value date: equal to the negotiation date for checks exchanged on the next working day in the SRD SERVICE; b) commissions: not applied; c) timing: next working day following the negotiation date.

2. Unpaid checks: communication a) value date: equal to the next working day following the date of exchange in the SRD SERVICE of the unpaid communication; b) commissions: not applied; c) timing: no later than the 2nd working day following the date of exchange in the SRD SERVICE of the negotiated check; communication to be sent by fax no later than 17:00.

3. Communication of check paid previously communicated as unpaid a) value date: equal to the next working day following the date of exchange in the SRD SERVICE of the paid communication; b) commissions: not applied; c) timing: no later than the 6th working day following the date of exchange in the SRD SERVICE of the negotiated check; communication to be sent by fax no later than 17:00.

4. Protested checks: transmission of the certified copy of the notarial act of protest attached to the debit accounting of expenses (alternative to point 3.) a) value date: equal to the next working day following the date of exchange in the SRD SERVICE of the protest communication; b) commissions: euro 4.34 in favor of the DRAWEE BANK; c) timing: no later than the 6th working day following the date of exchange in the SRD SERVICE of the negotiated check.

5. Exchange instruments, Ri.Ba. and order confirmations