Regulatory Alerts2006-08-10 | Circular 1/2006Added
Circular 1/2006 — Active Operations of SOFOLES
Circular 1/2006 establishes rules for the active operations of Limited Purpose Financial Companies (SOFOLES), requiring a single interest rate per credit and restricting contractual modifications to interest rates and financial accessories. It mandates the disclosure of the Total Annual Cost (CAT) for housing credits and other loans under 900,000 Investment Units (UDIS), including specific transparency requirements in advertising and contract documentation. The circular also regulates interest calculation methods, advance payments, account statements, and payment acceptance procedures, while exempting individual or syndicated credits of at least 10 million UDIs from these specific provisions.