Circular 10/2012 — Modifies Circular 27/2008

(Third Section) OFFICIAL GAZETTE Thursday, July 5, 2012 BANCO DE MEXICO CIRCULAR 10/2012 addressed to Credit Information Societies, regarding Modifications to Circular 27/2008.
At the margin a logo, which says: Bank of Mexico.
CIRCULAR 10/2012
TO THE CREDIT INFORMATION SOCIETIES:
SUBJECT: MODIFICATIONS TO CIRCULAR 27/2008
The Bank of Mexico, in order to promote the sound development of the financial system and to protect the interests of the public, considers it convenient to facilitate the mechanisms for identity verification of clients, as well as to determine the date from which users must communicate to them the "unpaid principal balance" of credits, in order that based on the latter and not on the "current balance", credit records less than the equivalent of one thousand Investment Units are eliminated. For the above, based on articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 of the Bank of Mexico Law; 12 and 23 of the Law to Regulate Credit Information Societies; 22 of the Law for Transparency and Ordering of Financial Services; as well as 4th first paragraph, 8th fourth and seventh paragraphs, 10 first paragraph, 14 Bis in relation to 17 fraction I, as well as 14 Bis 1 first paragraph in relation to 25 Bis 1 fraction IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate and the General Directorate of Financial System Affairs, respectively, as well as Second fractions III and XI of the Agreement on the Affiliation of Administrative Units of the Bank of Mexico, has resolved to modify Rule Fifth in its fraction IV, numeral 4. subsection b) and the penultimate paragraph of the Twelfth, as well as to repeal the Third Transitory, of the "General Rules to which the operations and activities of Credit Information Societies and their Users must be subject", contained in Circular 27/2008 and its modifications, to remain in the following terms:

GENERAL RULES TO WHICH THE OPERATIONS AND ACTIVITIES OF CREDIT INFORMATION SOCIETIES AND THEIR USERS MUST BE SUBJECT
CHAPTER II
Of Special Credit Reports
"FIFTH.- Societies must verify the identity of Clients who request Special Credit Reports, under the following terms:
I.- to III.- . . .
IV.- . . .
1.- to 3.- . . .
4.- With respect to any of the credits they maintain:
a) . . . b) Type of credit, as well as month and year of opening or of the first disbursement, and c) . . ."

CHAPTER V
General Provisions
"TWELFTH.- . . .
I.- to III.- . . .
. . .
. . .
For the purposes of this Rule, overdue credits shall be understood as those defined as such in the applicable provisions to credit institutions issued by the Commission, and unpaid principal balance shall be understood as the amount of the credit pending to be amortized at the moment of declaring it overdue or the amount of the credit corresponding to the last record that has been updated by Users, in both cases excluding interest, commissions or any other accessory. The foregoing shall also be applicable to credits that after being declared overdue or after their information has ceased to be updated by Users, are liquidated. The calculation in UDIs of the unpaid principal balance of credits shall be carried out using the value of the UDI corresponding to the first banking business day of the calendar year in which the deletion must be carried out, in accordance with the publication made by the Bank of Mexico in the Official Gazette of the Federation. . . ."

TRANSITORY
"THIRD.- Repealed."

Thursday, July 5, 2012 OFFICIAL GAZETTE (Third Section) TRANSITORY PROVISIONS FIRST.- The modification to Rule Fifth of the "General Rules to which the operations and activities of Credit Information Societies and their Users must be subject", provided for in this Circular, shall enter into force on October 1, 2012. SECOND.- The modification to Rule Twelfth, as well as the repeal of the Third Transitory of the aforementioned Rules, provided for in this Circular, shall enter into force on June 3, 2013. For such purposes, Societies must carry out the necessary actions so that the corresponding modifications are made, with the purpose of implementing what is provided for in the aforementioned Rule Twelfth on the aforementioned date. Mexico, D.F., July 3, 2012.- BANCO DE MEXICO: The General Legal Director, Héctor Reynaldo Tinoco Jaramillo.- Rubric.- The General Director of Financial System Affairs, José Gerardo Quijano León.- Rubric. For any inquiries regarding the content of this Circular, please go to the Department of Authorizations, Inquiries and Legal Control, located at Avenida 5 de Mayo number 2, Colonia Centro, Mexico City, D.F., C.P. 06059, or to the phones 5237.2308, 5237.2000 ext. 3200 or 5237.2317.