Circular 1/2004 — Credit Lines for Siefores to Settle Securities Acquired in International Markets

(Provision repealed by Circular 11/2011 published in the Official Journal of the Federation on May 11, 2011) CIRCULAR 1/2004 Mexico, D.F., December 22, 2004.
The Bank of Mexico, based on articles 24 and 26 of its Law and article 48, fraction VII of the Retirement Savings Systems Law, in response to the proposal from the National Commission for the Retirement Savings System formulated via letter No. D00/1000/141/2004 dated November 22, 2004, with the objective that Specialized Investment Societies for Retirement Funds (Siefores) may contract credit lines to settle operations with securities they carry out in international markets, has resolved to issue the following:

RULES TO WHICH SPECIALIZED INVESTMENT SOCIETIES FOR RETIREMENT FUNDS MUST ADHERE WHEN CONTRACTING CREDIT LINES TO SETTLE SECURITIES ACQUIRED IN INTERNATIONAL MARKETS

FIRST.- Specialized investment societies for retirement funds (Siefores) in contracting credit lines to settle the securities they acquire in international markets must adhere to what is provided in these Rules and in any other applicable provisions.

SECOND.- Siefores may receive credit lines denominated in national or foreign currency to settle securities they have acquired in international markets, from entities that provide them with custody services for their operations in the aforementioned markets, in accordance with the "General Rules for the Operation of Notes and Other Securities Acquired by Specialized Investment Societies for Retirement Funds," issued by the National Commission for the Retirement Savings System.

Such credit lines must be in writing, and it is the responsibility of the Siefores that the operations they enter into strictly adhere to these Rules and other applicable provisions.

THIRD.- With the resources derived from the credit lines granted to them, Siefores may only acquire securities that are provided for in their investment regime.

FOURTH.- Siefores that contract the aforementioned credit lines may pledge cash deposits and/or securities for the purpose of securing the payment of the credit received.

FIFTH.- Siefores will have a period of no more than two business days to settle the credit lines granted to them in accordance with these Rules.

SIXTH.- For Siefores to receive credits on terms different from those provided in these Rules, they will require authorization from the Bank of Mexico upon request by the National Commission for the Retirement Savings System.

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TRANSITORY PROVISION
SINGLE.- These Rules will enter into force on January 3, 2005.