Circular 3/1998 of January 27 by the Bank of Spain. Homologated Valuation Companies and Services. Information to be Submitted to the Bank of Spain

CIRCULAR 3/1998, OF JANUARY 27, OF THE BANK OF SPAIN. HOMOLOGATED VALUATION COMPANIES AND SERVICES. INFORMATION TO BE SUBMITTED TO THE BANK OF SPAIN (BOE OF FEBRUARY 13)

Article 43 bis of Law 26/1988, on the Discipline and Intervention of Credit Entities, assigns to the Bank of Spain the control and inspection of the application of Law 2/1981, on the regulation of the mortgage market, without prejudice to the competences of the National Securities Market Commission.

Letters a) and b) of Article 15.1 of Royal Decree 775/1997, of May 30, on the legal regime for the homologation of valuation companies and services, specifically attribute to the Bank of Spain the supervision of the compliance by these companies or services with the requirements to obtain and maintain homologation, and with the remaining obligations that are required for the valuations of real estate properties they perform to take effect in the mortgage market or in those cases required by the regulations governing credit entities.

Article 15.3 of this same Royal Decree empowers the Bank of Spain to request, individually or generally, from these companies or services the information adequate for the exercise of its competences, among which the aforementioned supervisory functions and those related to the formation of statistics connected to their functions stand out.

Consequently, in exercise of the powers conferred in this matter, and in accordance with what is established in Article 3 of Law 13/1994, of June 1, the Bank of Spain has ordered:

FIRST RULE

Information to be submitted by valuation companies

Homologated valuation companies shall send the following information to the Bank of Spain:

1. Information regarding the requirements to maintain homologation. To be sent to the Department of Financial Institutions whenever there is a modification in the documentation previously submitted:

a) Corporate Bylaws: public deed of modification of the corporate bylaws duly registered in the Commercial Registry, along with a complete copy of the reformed bylaws, for recording in the Special Registry of Bylaws. The cited documentation must be sent within fifteen business days following the registration of the public deed of modification in the Commercial Registry.

b) Associated Professionals: communication declaring the corresponding professional, for the purpose of their registration in the Special Registry of Associated Professionals, within a maximum period of 15 business days from their hiring, accompanied by:

i) Photocopy of the interested party's personal identification document.

ii) Certified copy of the title or document accrediting their registration in the corresponding Official College.

iii) Date of their hiring and a copy of the contract signed with the company.

iv) Professional history, with special attention to activities related to valuation.

v) Declaration signed by the professional stating that they know and accept the obligations of secrecy and the incompatibilities established in Articles 11 and 13 of Royal Decree 775/1997.

The termination of professionals or changes in the characteristics of their contracts shall also be communicated within a maximum period of 15 business days, counted from the moment they occur.

c) Declaration regarding the administrative and management positions of the company, as established in Bank of Spain Circular 13/1988, of October 27. [1]

2. Accounting and statistical information:

a) No later than February 28, they shall send the balance sheet and profit and loss account corresponding to the previous exercise, using for this purpose the reserved states models I and II attached hereto, applying for their preparation the principles and criteria of the General Accounting Plan, unless the annual accounts are formulated applying the General Accounting Plan for Small and Medium-sized Enterprises (SMEs) because the company meets the requirements established in Royal Decree 1515/2007, of November 16, which approves said Plan, in which case they will be prepared applying the principles and criteria of the General Accounting Plan for SMEs.

b) Within fifteen days following the holding of the General Shareholders' Meeting that approves them, they shall send the individual annual accounts and, where applicable, consolidated annual accounts of the previous exercise, accompanied by the certification of the meeting's agreement regarding their approval and the corresponding audit report. [2]

In the event that the data contained in reserved states I and II are modified in the annual accounts approved by the General Shareholders' Meeting, the corrected states shall be sent at the same time as said annual accounts.

c) No later than the last day of the second month following the close of each natural quarter, states III and XI shall be sent to the Bank of Spain, and for each natural semester, states IV to VIII and X. The information shall be presented with data accumulated up to the close of the period, except for states III, X, and XI, which will include information on the valuations performed in the corresponding period. [3]

3. Information regarding shareholders:

As soon as they are known, and at the latest within ten business days from the annotation in the register book of registered shares, the company shall communicate the transfers (acquisitions and assignments) of shares that determine that the percentage of participation or voting rights remaining in the hands of a natural or legal person or group equal or exceed, directly or indirectly, the threshold of 10% of the share capital or voting rights of the company, or that, without reaching said percentage, allow them to exercise significant influence in said company. The loss of the possibility to exercise such significant influence shall also be communicated.

Such information shall be updated whenever there are net variations in the direct or indirect participation of the person or group representing at least 5% of the share capital or voting rights of the company.

These communications shall be made using the model included in state XII.

As soon as they are known, and at the latest within ten business days from the annotation in the register book of registered shares, the company shall communicate the transfers of shares that, although not subject to the provisions of letter a) above, imply the net acquisition by a natural or legal person, in one or several operations, of a direct percentage equal to or greater than 5% of the share capital of the company. These communications shall be made by completing the part regarding direct participations of the model included in state XII.

c) Annually, within the first month of the year, they shall send a list of shareholders who have registered shares in their name in a percentage equal to or greater than 5% of the share capital, according to state IX attached hereto.

With regard to letter a) above, the definition of group contained in Article 4 of the Securities Market Law shall be used, and for the purpose of determining the percentage of participation or voting rights, what is established in Article 18 of Royal Decree 1245/1995, of July 14, on the creation of banks, cross-border activity, and other matters related to the legal regime of credit entities, shall apply. That same article shall be applicable for the purpose of determining what is understood by significant influence. [3]

4. Information regarding civil liability insurance policy (to be sent to the Financial Institutions Inspection Services).

A complete copy of any modification in the content of the company's civil liability policy or, in the event of its replacement, a complete copy of the new policy, including both general and special conditions, all within a period of one month counted from its signing.

Independently of this, the payment of the premium shall be periodically justified within the natural month following its due date. [1]

[1]

Letter c) drafted according to Circular 4/1999, of March 24, becoming a new number 4 of the same rule, leaving letter d) of said number 1, as new letter c) thereof.

[2]

First paragraph of section 2.b) drafted according to Circular 3/2014, of July 30, second rule.

[3]

Points 2 and 3 drafted and the reference to the "Office of Financial Institutions" and the "Office of Financial Institutions Inspection" replaced by "Department of Financial Institutions" and "Credit Institutions Inspection Services" according to Circular 2/2009, of December 18, first rule.

SECOND RULE

Information to be submitted by valuation services of credit entities

Credit entities that have homologated valuation services shall send the following information to the Bank of Spain:

1. Information regarding the requirements to maintain homologation whenever there is a modification in the documentation previously submitted to the Bank of Spain (to be sent to the Department of Financial Institutions):

a) Associated Professionals: communication declaring the corresponding professional, for the purpose of their registration in the Special Registry of Associated Professionals, accompanying the documentation cited in the First Rule, section 1.b), as well as the terminations and changes in the characteristics of their contracts, all within the periods provided for in said rule.

b) Within one month, they shall communicate the termination of collaboration agreements they have established with other entities that do not belong to the same group as the credit entity, and the signing of new agreements with entities within their group.

2. Statistical information:

No later than the last day of the second month following the close of each natural quarter, states III and XI shall be sent to the Bank of Spain, and for each natural semester, states IV to VIII and X. The information shall be presented with data accumulated up to the close of the period, except for states III, X, and XI, which will include information on the valuations performed in the corresponding period. [4]

[4]

Section 2 drafted and the reference to the "Office of Financial Institutions" replaced by "Department of Financial Institutions" according to Circular 2/2009, of December 18, first rule.

THIRD RULE

Submission of information to the Bank of Spain [5]

1. For statistical purposes, in the preparation of states III to VI, X, and XI, it shall be considered that a valuation unit is each of the valuation files performed by a valuation company or service that constitutes an individualized valuation report and certificate; however, when said report and certificate include the independent valuation of several registered properties, there shall be as many valuation units as registered properties, unless these constitute a complete building. [6]

2. The submission to the Bank of Spain of the information referred to in points 2 and 3 of the First Rule and point 2 of the Second Rule must be done via electronic transmission, in accordance with the technical specifications communicated for this purpose for each of them.

The information referred to in letters a) and b) of point 2 and letter a) of point 3 of the First Rule must be electronically signed by the sole administrator, president, chief executive officer, or general manager.

Regardless of the obligation of electronic signature referred to in the previous paragraph, the entity shall be responsible, in any case, for ensuring that the documents sent via electronic means are faithful copies of the originals, which must be available to the Bank of Spain at all times.

The Bank of Spain may also request the paper confirmation of any information sent via electronic transmission.

Exceptionally, and only for duly justified causes, the Financial Information and Risk Centralization Department may authorize the submission of all or some of the information in paper form, using the forms prepared by the Bank of Spain, which shall be delivered dated, stamped, and countersigned on all pages, and signed by the sole administrator, president, chief executive officer, or general manager. [5]

3. In the states to be submitted to the Bank of Spain, monetary units shall be expressed in thousands of euros rounded. Rounding shall be performed to the nearest unit, with rounding up in case of equidistance. [6]

[5]

Title of the rule and section 2 drafted according to Circular 2/2009, of December 18, first rule.

[6]

Numbers 1 and 2 drafted and number 3 added according to Circular 5/2003, of December 19, first rule.

FOURTH RULE

Dissemination of information [7]

The information received from valuation entities according to state X shall be communicated, once aggregated, to the General Directorate of Insurance and Pension Funds and to the National Securities Market Commission, and shall be distributed among the valuation companies and services themselves.

[7]

Incorporated by Circular 5/2003, of December 19, first rule.

SINGLE ADDITIONAL PROVISION

[8]

The General Directorate of Regulation may develop technical applications to facilitate the preparation of the different information to be submitted to the Bank of Spain and establish correlations within each state and between each of them.

[8]

Incorporated by Circular 2/2009, of December 18.

FINAL PROVISION Entry into force

This Circular shall enter into force twenty days after its publication in the Official State Bulletin.

[9]

STATE I-C-3-1998.PDF (50 KB)

[9]

State I drafted according to Circular 3/2014, of July 30, second rule.

[10]

STATE II-C-3-1998.PDF (66 KB)

[10]

State II drafted according to Circular 3/2014, of July 30, second rule.

[11]

STATE III-1-C-3-1998.PDF (82 KB)

[11]

State III.1 drafted according to Circular 3/2014, of July 30, second rule.

[12]

STATE III-2-C-3-1998.PDF (64 KB)

[12]

State III.2 drafted according to Circular 3/2014, of July 30, second rule.

[13]

STATE IV-C-3-1998.PDF (47 KB)

[13]

State IV drafted according to Circular 3/2014, of July 30, second rule.

[14]

STATE V-C-3-1998.PDF (49 KB)

[14]

State V drafted according to Circular 3/2014, of July 30, second rule.

[15]

STATE VI-C-3-1998.PDF (14 KB)

[15]

State VI drafted according to Circular 5/2003, of December 19, second rule.

[16]

STATE VII-C-3-1998.PDF (14 KB)

[16]

State VII drafted according to Circular 5/2003, of December 19, second rule.

[17]

STATE VIII-C-3-1998.PDF (15 KB)

[17]

State VIII drafted according to Circular 5/2003, of December 19, second rule.

[18]

STATE IX-C-3-1998.PDF (51 KB)

[18]

State IX drafted according to Circular 2/2009, of December 18, first rule.

[19]

STATE X-C-3-1998.PDF (22 KB)

[19]

Incorporated by Circular 5/2003, of December 19, second rule.

[20]

STATE XI-C-3-1998.PDF (16 KB)

[20]

Incorporated by Circular 5/2003, of December 19, second rule.

[21]

STATE XII-C-3-1998.PDF (46 KB)

[21]

Incorporated by Circular 2/2009, of December 18.

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