Characteristics of Payment Instruments Issued by Financial Entities. Updated Consolidated Text

"2007 - Year of Road Safety"
CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 4731 09/11/2007
TO FINANCIAL ENTITIES:
Ref.: Circular
SINAP 1 - 13
Characteristics of the payment instruments issued by financial entities. Updated consolidated text. ______ We address you to inform you that, in accordance with what is established in Communication "A" 4713, the consolidated text of the reference has been modified and, consequently, the sheets that should replace those in Sections 1 and 2 of the same are attached. In this regard, it is reported that the bills of exchange issued by cooperative credit unions must have identical paper and printing requirements to those stipulated for checks. Section 1 specifies the aforementioned requirements, as well as the color fixed for the main background of the bills, which must adhere to what is detailed in point 1.5.3 – Models 2.17. and 2.18. Likewise, the models that establish the design to which the aforementioned bills of exchange must adhere have been included in Section 2, which will be clearable through electronic clearing chambers. Regarding this matter, it is reported that credit unions must present "sample" documents to this Institution to be homologated prior to their final printing. This homologation procedure must be carried out each time new prints of base documents are made, and will consist of two stages:
1- Credit unions will present to this Central Bank a note addressed to the Payment Systems Management accompanied by a "sample" document to proceed to evaluate its adjustment to the guidelines of the models attached in Section 2. 2- Once the sample has been satisfactorily evaluated, it will be necessary to present five documents with the identical procedure described in point 1 to verify compliance with the paper and security requirements established.

-2-
It is noted that both stages must be resolved positively to obtain the homologation of the instrument and that a number will be assigned which must be printed, preceded by the letter "H" in the lower left corner of the area reserved for the identification of the entity in the base document. Furthermore, and following that legend, the month and year must be recorded at the time of their personalization (VG: Hx – VIII/07). We salute you very attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Julio César Pando Guillermo A. Zuccolo Payment Systems Manager General Sub-manager of Payment Means

ANEXO

• Index -
  Section 1. General provisions for payment instruments.
  1.1. Document dimensions.
  1.2. Design.
  1.2.1. Particular characteristics of models 2.2. to 2.9.
  1.2.2. Particular characteristics of models 2.11 to 2.18
  1.3. Allocation and control of the check digit in the routing code.
  1.3.1. Allocation of the digit - (Multiplier 9713).
  1.3.1.1. Application examples.
  1.3.2. Control routine - (Multiplier 9713).
  1.3.2.1. Application examples.
  1.4. Free strip, reserved for the SCAN line in magnetic characters.
  1.5. Other characteristics of payment instruments.
  1.5.1. Paper specifications.
  1.5.2. Printing specifications.
  1.5.3. Color.
  1.5.4. Stamps.
  1.5.5. Magnetic characters.
  1.6. Preparation of checks.
  Section 2. Models.
  2.1. Specifications and measurements of documents – design valid until 31.12.03- (models 2.2. to 2.9.)
  2.2. Check in pesos.
  2.3. Check in US dollars.
  2.4. Deferred payment check in pesos.
  2.5. Deferred payment check in US dollars.
  2.6. Reverse side of deferred payment check (DPC).
  2.7. Transferable named certificate -in pesos-.
  2.8. Transferable named certificate -in US dollars-.
  2.9. Reverse side of transferable named certificate (TNC) with guarantee.
  2.10. Specifications and measurements of documents (models 2.11 to 2.18).
  2.11. Check homologated until the validity of the present.
  2.12. Deferred payment check homologated until the validity of the present.
  2.13. Deferred payment check according to Communication "A" 4010 until the validity of the present.
  2.14. Check to be homologated from the validity of the present.
  2.15. Deferred payment check to be homologated from the validity of the present.
  2.16. Deferred payment check according to Communication "A" 4010 from the validity of the present.
  2.17. Sight bill of exchange.
  2.18. Bill of exchange at a fixed day.
  B.C.R.A.
  UPDATED CONSOLIDATED TEXT OF THE RULES ON THE
  CHARACTERISTICS OF THE PAYMENT INSTRUMENTS ISSUED BY FINANCIAL ENTITIES

The rules of mandatory compliance that determine the magnetic character code line and characteristics of the payment instruments issued by financial entities are those that are detailed below:
1.1. Document dimensions.
The main body of the document must be 156 mm long by 70 mm wide (models described in points 2.2. to 2.9.) and 180 mm long by 76 mm wide (models described in points 2.11. to 2.18.), adjusting the rest of the dimensions to the characteristics of the pertinent model contained in Section 2. –Models- of this communication. The stub for collection, whose use is optional, is attached to the booklet and is located to the left of the check, bank draft, etc. The union of such elements must never be dotted, but is carried out by means of the perforation or die-cutting procedure with dashes to cut. In the same way, the system of mechanical prints of the "perforation" type must never be used to record the identification number, as the perforation leaves residues that harm the operation of electronic reading equipment. Only the use of "embossed" prints, which do not cause such difficulty, is admitted.
1.2. Design.
The design of the document body must adhere to the characteristics of the provisions in force and to the models contained in Section 2. -Models- that collect the essential statements of Law 24.452, its modification - Law 24.760 – and Decree-Law 5.965/63 and its corresponding regulatory norms.
1.2.1. Particular characteristics of models 2.2. to 2.9.
In the upper right corner, a space or area of 20 mm high by 50 mm wide will be left, intended for the recording of the amount in numbers (in the upper part of this area) and for the inclusion of the routing code (boxed, in the lower part of this area), for the printing in numerical characters of the data corresponding to area 2 (premagnetized) of the SCAN line, distributed in three successive lines, as indicated below:

• First line: the code of the drawn entity, the type of house and the postal code of the payment address, all separated by a dash;
• Second line: the check number;
• Third line: the account number.
  Characteristics of payment instruments issued by financial entities B.C.R.A.
  Section 1. General provisions for payment instruments
  Version: 4th. COMMUNICATION "A" 4731
  Validity:
  09/11/2007

To the right of each of the three lines mentioned, separated by a space in blank, a check digit must appear, whose calculation methodology and control routine are indicated in point 1.3. Entity code: the code assigned to each entity must be used. In the case of entities whose identification number is one or two digits, two or one zero must be added to the left respectively, with the purpose that the code consists of three digits. House type code: to this effect, each entity will assign to its houses a three-digit code, according to the following criterion:

• Central House and/or single as 000.

• Headquarters as 999.

• Branches or subsidiaries in a correlational manner from 001 to 998.

• Payment address code: The next four digits indicate the postal code of the payment address.
  The format of the data to be included in the routing code must be such as to allow a clear visualization of them. It is recommended to Entities to print this data in a font size no smaller than that corresponding to the XEROX UN2O8E standard, as well as a font type similar to the same. To the right of the legend specifying the type of document, it will be identified by the printing of the signs CPD-$ or CNT-$ depending on whether they are deferred payment checks or transferable named certificates.
  1.2.2. Particular characteristics of models 2.11. to 2.18.
  In the upper right corner, a space of 8 mm high by 50 mm wide will be left intended for the recording of the amount. This area will have boxes suitable for ICR (Intelligent Character Recognition) and the currency symbol will be outside of the same. The routing code will be in a box of 17 mm high by 30 mm wide located in the lower part of the area intended for the amount and aligned to the right. In the same, the data corresponding to the SCAN line will be printed as indicated below, in 3 lines suitable for optical character recognition (OCR). These lines must be at an identical line spacing both between them and from the upper and lower borders of the box.

• First line: the code of the drawn entity, the type of house and the postal code of the payment address, all separated by a dash, according to how it is specified below:
  Characteristics of payment instruments issued by financial entities B.C.R.A.
  Section 1. General provisions for payment instruments
  Version: 5th. COMMUNICATION "A" 4731
  Validity:
  09/11/2007

• Entity code: the code assigned by the Central Bank of the
  Argentine Republic to each entity must be used. In the case of entities whose identification number is one or two digits, two or one zero must be added to the left respectively, with the purpose that the code consists of three digits.

• House type code: to this effect, each entity will assign to its houses a code
  of three digits, according to the following criterion:

• Central House and/or single as 000.

• Headquarters as 999.

• Branches or subsidiaries in a correlational manner from 001 to 998.

• Payment address code: The next four digits indicate the postal code
  bank of the payment address.

• Second line: the instrument number;

• Third line: the account number.
  To the right of each of the three lines mentioned, separated by a space in blank, a check digit must appear, whose calculation methodology and control routine are indicated in point 1.3. On the left margin of the document, a zone will be determined that will have a dimension of 30 mm wide by 60 mm high, and will be used for the purposes of identifying the issuing entity. It is also highlighted that, any kind of images, logos, etc. that the entities desire to include in the document can do so in said zone. In the case of opting for the inclusion of some image as an additional security measure in the body of the document, only its incorporation below the routing code area at a distance of 3 mm and always that its surface does not exceed 1 cm 2 . The format of the data to be included in the text of the document must be printed in a size of letter no smaller than that corresponding to the XEROX UN208E standard, except the number of CUIT, CUIL or CDI of each of the account holders which will be printed in a typography suitable for optical character recognition (OCR).
  1.3. Allocation and control of the check digit in the routing code.
  1.3.1. Allocation of the digit - (Multiplier 9713).
  1.3.1.1. Each digit of the components to be verified must be multiplied by:

• the extreme right position 3

• the next consecutive position to the left 1

• the next consecutive position to the left 7
  Characteristics of payment instruments issued by financial entities B.C.R.A.
  Section 1. General provisions for payment instruments
  Version: 5th. COMMUNICATION "A" 4731
  Validity:
  09/11/2007

For the models described in points 2.11. to 2.18., a bitonal or multitonal watermark with exclusive design of the printer or of the financial entity issuing the document will be included in the paper, distributed over the entire surface.
1.5.2. Printing specifications.
The documents referred to in points 2.1 to 2.13. must contain the following prints:
1.5.2.1. Main background of the document: printing performed with reactive security fugitive inks to aqueous agents. They must be used both on the front and
on the back.
1.5.2.2. Auxiliary background: prints with invisible inks, which react under ultraviolet light, and reactive security fugitive inks to organic solvents, which will be used
in the areas where the amounts in letters and numbers are inscribed.
1.5.2.3. Security background: they must be located as minimum in the areas intended for the
text to be integrated by the client and in the SCAN line.
1.5.2.4. Anti-scratch: the routing code, the check number and the premagnetized SCAN line must be covered with an anti-scratch film, or some other equivalent security measure sensitive to ultraviolet light.
In the models described in points 2.11., 2.12. and 2.13. as an optional security measure, the stamping may be expressed in three ways: printed in variable size, repeated in invisible ink and in microletters, excepting the last two characteristics from checks issued by the entities. The documents referred to in points 2.14., 2.15., 2.16., 2.17. and 2.18. must contain the following prints:
1.5.2.5. Main background of the document: with numismatic designs and/or guilloches different for each bank.
The ink of the predominant color must be fugitive to aqueous agents.
1.5.2.6. Auxiliary background: formed by fine wavy lines, with a separation between
lines equal to the width of the stroke, printed in invisible ink, which reacts with strong yellow fluorescence under ultraviolet light, and which is highly fugitive to organic solvents, applied in the areas of amounts in letters and numbers, beneficiary and signature.
1.5.2.7. Invisible protection coverage against scratching: formed by fine wavy lines with a separation between lines equal to the width of the stroke; with intense red fluorescence to ultraviolet light applied on the document number, the routing code, the personalization, the branch identification and the premagnetized SCAN line.
1.5.2.8. Variable data printing: performed in black color.
Characteristics of payment instruments issued by financial entities B.C.R.A.
Section 1. General provisions for payment instruments
Version: 4th. COMMUNICATION "A" 4731
Validity:
09/11/2007

1.5.2.9. Microletter: the lines or lines of
beneficiary and amount in letters, and in deferred payment instruments, the lines of payment date must be formed in microletter. The text in microletter will be continuous, that is without intermediate spaces and must be perfectly legible with the help of a magnifying glass or thread counter.
1.5.2.10. Additional stamping: the stamping must be repeated in letters and in one or
more of the following forms: in invisible ink, in various sizes, in negative or with digits of progressive size. Any modification or addition to the characteristics described, that entities wish to make, must be submitted to the consideration of the Payment Systems Management of this Central Bank.
1.5.3. Color:
Models 2.11., 2.12. and 2.13.
For the printing of the main background, which must be solid, it will correspond to use the PANTONE 317 U which is composed as follows:
½ pt. PANTONE Pro. Blue
½ pt. PANTONE Green
31 pts. PANTONE Trans. Wt.
Models 2.14., 2.15. and 2.16.
The main background, both of the front and the back, must be printed in two colors: PANTONE 317 U (predominant color) and gray (secondary color). Models 2.17. and 2.18. The main background, both of the front and the back, must be printed in two colors: PANTONE 7499 U (predominant color) and gray (secondary color).
1.5.4. Stamps.
The color of them must allow clear and precise reading in digital image reproduction equipment or alternative systems and must be inserted on the back of the document.
1.5.5. Magnetic characters.
By disposition of the Central Bank of the Argentine Republic, the character called MAGNETIC CODE 7 BARS - CMC7- is adopted for the integration of the SCAN line. For such purposes, consult the book "Specifications for the recognition of magnetic characters. Characteristics of payment instruments issued by financial entities B.C.R.A.
Section 1. General provisions for payment instruments
Version: 3rd. COMMUNICATION "A" 4731
Validity:
09/11/2007

2.17. SIGHT BILL OF EXCHANGE
Characteristics of payment instruments issued by financial entities B.C.R.A.
Section 2. Models
Version: 1st. COMMUNICATION "A" 4731 Validity: 09/11/2007 Page 17

2.18. BILL OF EXCHANGE AT A FIXED DAY
Characteristics of payment instruments issued by financial entities B.C.R.A.
Section 2. Models
Version: 1st. COMMUNICATION "A" 4731 Validity: 09/11/2007 Page 18

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE RULES ON CHARACTERISTICS OF PAYMENT INSTRUMENTS ISSUED BY FINANCIAL ENTITIES CONSOLIDATED TEXT ORIGIN NORM
Section Point Paragraph Com.
Annex or
Chapter
Point Paragraph
Observations
"A" 2517
1.1. "A" 2798 V According to Com. "A" 3728 and
"B" 8079
1.2. "A" 2798 I According to Com. "A" 3728,
"A" 3842 ,"B" 8079, "B"
8299 and "A" 4731
1.3. "A" 2517 II
1.3.1. "A" 2517 II
1.3.1.1. "A" 2517 II
1.3.2. "A" 2517 II
1.3.2.1. "A" 2517 II
1.4. "A" 15 15.3. According to Com. "A" 3728 and
"A" 3842
1.5. "A" 2517
1.5.1. "A" 2517 III According to Com. "A" 3728 and
"B" 8079
1.5.2. "A" 2517 IV According to Com. "A" 3728 and
"B" 8079, "B" 8299 and "A"
4731
1.5.3. "A" 3728 unique According to Com. "A" 4731
1.5.4 "A" 3728 unique According to Com. "B" 8079 and
"B" 8299
1.5.5. "A" 15 I 15.
1.
1.6. "A" 3728 According to Com. "B" 8079
2.1. to 2.9. "A" 2798 I
2.10. "A" 3728 unique 2.1. According to Com. "B" 3842 and
"B" 8079
2.11. "A" 3728 unique 2.2. According to Com. "B" 3842 and
"B" 8079
2.12. "A" 3728 unique 2.3. According to Com. "B" 7602.
"A" 3842 and "B" 8079
2.13. "A" 3728 unique According to Com. "B" 7995 and
"B" 8079
2.14. "A" 3728 unique According to Com. "B" 8299
2.15 "A" 3728 unique According to Com. "B" 8299
2.16. "A" 3728 unique According to Com. "B" 8299
2.17. "A" 3728 unique According to Com. "A" 4731
2.
2.18. "A" 3728 unique According to Com. "A" 4731