Circular 1430: Applicable Provisions Regarding the Agreement on Benefits for Housing Credit Debtors

México, D.F., March 16, 1999.

CIRCULAR No. 1430

SUBJECT: AGREEMENT ON BENEFITS FOR HOUSING CREDIT DEBTORS.- Applicable provisions.

TO CREDIT INSTITUTIONS:

Regarding the Agreement on Benefits for Housing Credit Debtors (hereinafter the Agreement), signed between the Federal Government, represented by the Secretariat of Finance and Public Credit (hereinafter SHCP) and the Association of Banks of Mexico, A.C. (hereinafter ABM), which contemplates benefits for housing credit debtors, this Commission, pursuant to Articles 97 and 99 of the Credit Institutions Law, Articles 4, fractions III, V, and XXXVI, 16 fraction I, and 19 of the Law of the National Banking and Securities Commission, informs you of the following:

1. BENEFICIARIES.

The Agreement will benefit housing credit debtors denominated in national currency or in Investment Units (UDIS), as indicated below:

a) Those granted or restructured prior to April 30, 1996, and b) Those that are restructured by September 30, 1999, under the institutions' own programs, or in UDIS under the Program of Additional Benefits for Housing Credit Debtors (hereinafter the Program), provided they had been granted prior to April 30, 1996.

The benefits of the Agreement will not apply to credits with preferential fixed interest rates, those financed with resources from the Bank Operation and Financing Fund for Housing (FOVI), nor those intended for the acquisition of social interest housing, as resolved by the SHCP through Official Letter No. 101-307 of March 12, 1999, addressed to the ABM.

2. BENEFITS.

2.1 Discount on the outstanding balance of the credit.

With respect to the debtors referred to in section 1 above, the discount schemes in the payments provided for in the Program and the institutions' own programs are replaced by a discount scheme on the outstanding balance of the debt recorded on November 30, 1998, in the respective credit institution, according to the following table and explanations by debt balance ranges indicated below:

Debt Balance Range (in UDIS or its equivalent in pesos)	Discount by Range (%)	Total Weighted Discount (%)
Up to 165,000 UDIS	50	50
Greater than 165,000 and up to 500,000 UDIS	45	50 - 46.65
Greater than 500,000 UDIS	0	Less than 46.65

For the purpose of determining the debt balance, delinquency interest will not be computed, understood as those additional to those resulting from applying the ordinary interest rate, as resolved by the SHCP through Official Letter No. 101-307 of March 12, 1999.

The benefits of the Minimum Payments Equivalent to Rents Scheme provided for in the Program may be replaced by those established in the Agreement, prior agreement with those participating in the said Scheme.

The applicable benefit will be limited in each institution to one mortgage credit per debtor. Likewise, for the purposes of said benefit, discounts on the outstanding balance of the credit that had been granted to debtors prior to the signing of the Agreement will be considered, as well as, if applicable, the benefits obtained in the aforementioned Minimum Payments Equivalent to Rents Scheme.

The discounts on advance payments established in the Program and the Discount Scheme on Timely Payments and Advance Payments are excluded from the above, with the exception of those related to the alternative scheme, as resolved by the SHCP through the aforementioned Official Letter No. 101-307 of March 12, 1999.

2.1.1 Debts up to 165,000 UDIS.

Borrowers whose debts do not exceed 165,000 UDIS or its equivalent in national currency will receive a 50% discount on the outstanding balance of the credit.

2.1.2 Debts greater than 165,000 UDIS and up to 500,000 UDIS.

Borrowers whose debts are greater than 165,000 UDIS and up to 500,000 UDIS or its equivalent in national currency will receive a 50% discount under the terms of the previous section and a 45% discount on the remaining amount. In this way, they will receive a weighted discount on the outstanding balance ranging between 50% and 46.65% depending on the amount of their debt.

2.1.3 Debts greater than 500,000 UDIS.

Borrowers whose debts are greater than 500,000 UDIS or its equivalent in national currency will receive a 46.65% discount on the outstanding balance of the credit on the first 500,000 UDIS.

2.2 Debtors who are up to date on their payments.

Those housing credit debtors who are up to date on their payments as of January 1, 1999, will receive the benefit of the discount on the outstanding balance of the credit, starting from that date. In any case, said benefit will be recorded no later than in the account statement corresponding to the month of March 1999.

2.3 Debtors who are not up to date on their payments.

Housing credit debtors who are not up to date on their payments may receive the benefits of the Agreement by liquidating their overdue obligations, in which case they will receive a discount on the payment equivalent to that corresponding to their outstanding balance according to section 2.1, or by restructuring their debts under the Agreement by September 30, 1999.

For debtors who proceed in accordance with the provisions of the previous paragraph, institutions will forgive delinquency interest.

Institutions will maintain for debtors the benefit established in the ADE, ratified in the Program, consisting of the non-enforceability of additional guarantees when signing the Restructuring Agreement with the debtor. Likewise, institutions will absorb 50% of the notarial and registration expenses of the credits that are restructured and offer the borrower financing for the remaining 50% of said expenses.

2.4 Advance payments.

Debtors will receive a discount on the payment equivalent to that corresponding to their outstanding balance according to section 2.1 above when making advance payments, under no circumstances subject to any conventional penalty. In this case, the provisions of the penultimate and last paragraphs of the aforementioned section 2.1 must be observed at all times, attending to the provisions of section 3.3.

2.5 Credits denominated in national currency.

Debtors whose debts are denominated in national currency will enjoy the benefit of the discount on the outstanding balance of the credit according to sections 2.1 to 2.4 above. For the purpose of determining the discount percentage applicable to the debt balance in question, it must be converted to UDIS, using the national currency value determined by the Bank of Mexico for November 30, 1998, based on the variation of the National Consumer Price Index, and published in the Official Gazette of the Federation on November 25, 1998. Likewise, for the purpose of determining the amount of discounts on the outstanding balance of the credit granted prior to the signing of the Agreement, except those mentioned in the last paragraph of section 2.1 above, it must be converted to UDIS, using the national currency value determined and published by the Bank of Mexico for the day on which such discounts were granted.

2.6 Conservation of benefits.

Debtors will retain the benefits of the Agreement, provided that they remain up to date in the payment of their obligations.

3. OPERATIONAL MECHANICS OF THE DISCOUNT ON THE OUTSTANDING BALANCE OF THE CREDIT.

3.1 Credits denominated in UDIS.

3.1.1 Credits to which discounts on the outstanding balance have not been applied prior to the signing of the Agreement, except, if applicable, those mentioned in the last paragraph of section 2.1.

3.1.1.1 Mechanics for applying the discount on the outstanding balance of the credit.

Once the benefit of the discount on the outstanding balance of the credit is determined, in accordance with section 2.1 above, institutions will proceed as follows:

a) They will divide the balance of the credit in question into two portions, identifying on the one hand, the amount that the debtor must cover once the said discount is applied (hereinafter unconditional payment portion) and on the other, the amount of the discounts to be absorbed by both the institutions and the Federal Government under the terms of the Agreement and which will accrue as debtors make their payments (hereinafter conditional discount portion).

b) In view of the provisions of subsection a) above, the balances corresponding to the unconditional payment portion and the conditional discount portion of both Fiduciary Values affected to UDIS trusts related to housing credits (hereinafter Fiduciary Values), as well as Government Bonds affected to the Program of Support for Housing Credit Debtors (hereinafter Government Bonds), will be divided.

c) The balances of Fiduciary Values and Government Bonds related to the unconditional payment portion will accrue interest at the rates referred to in sections 1.3.3 and 2.3 of Circular 1285, as applicable. Fiduciary Values and Government Bonds related to the conditional discount portion will accrue interest at a real rate of 4% annually.

d) For the two previous portions, new payment schemes for principal and interest must be determined.

3.1.1.2 Mechanics for applying payments made by debtors.

When the debtor makes the payment of their monthly installments, institutions will amortize the unconditional payment portion and the conditional discount portion, in accordance with the schemes referred to in subsection d) of section 3.1.1.1 above in UDIS trusts, as well as their corresponding Fiduciary Values. Likewise, the amount of the conditional discount portion will be credited against Government Bonds and its cost will be absorbed by the institutions and the Federal Government under the terms of the Agreement.

3.1.2 Credits to which discounts on the outstanding balance have been applied prior to the signing of the Agreement, other than those mentioned in the last paragraph of section 2.1.

3.1.2.1. Mechanics for applying the discount on the outstanding balance of the credit.

For the purpose of determining the amount of the discount on the outstanding balance of the credit in question, institutions must apply the percentages established in section 2.1 above to the amount resulting from adding to the outstanding balance of the said credit on November 30, 1998, the amount of the discounts applied on the outstanding balance prior to the signing of the Agreement, observing the provisions of the penultimate and last paragraphs of section 2.1, as resolved by the SHCP through Official Letter No. 101-307 of March 12, 1999.

Once the amount of the said discount is obtained, institutions will proceed according to the SHCP letter referred to in the previous paragraph, as follows:

a) They will determine the net amount of the discount to be granted. To this effect, they will decrease the said total discount amount by the amount of the discounts added to said balance as stated in the first paragraph of this section.

b) They will obtain the percentage of the conditional discount portion by dividing the net amount of the discount to be granted referred to subsection a) above, by the outstanding balance of the credit in question on November 30, 1998.

c) Based on the percentage resulting from subsection b) above, they will divide the credit balance into the unconditional payment portion and the conditional discount portion.

d) In view of the provisions of subsection c) above, the balances corresponding to the unconditional payment portion and the conditional discount portion of both Fiduciary Values and Government Bonds will be divided.

e) The balances of Fiduciary Values and Government Bonds related to the unconditional payment portion will accrue interest at the rates referred to in sections 1.3.3 and 2.3 of Circular 1285, as applicable. Fiduciary Values and Government Bonds related to the conditional discount portion will accrue interest at a real rate of 4% annually.

f) For the two previous portions, new payment schemes for principal and interest must be determined.

3.1.2.2 Mechanics for applying payments made by debtors.

When the debtor makes the payment of their monthly installments, institutions will amortize the unconditional payment portion and the conditional discount portion, in accordance with the schemes referred to in subsection f) of section 3.1.2.1 above in UDIS trusts, as well as their corresponding Fiduciary Values. Likewise, the amount of the conditional discount portion will be credited against Government Bonds and its cost will be absorbed by the institutions and the Federal Government under the terms of the Agreement, taking into consideration the provisions of section 4.2 of this Circular.

3.1.3 Restructuring of credits previously restructured under the Program or the Program of Support for Housing Credit Debtors.

Institutions may restructure credits previously restructured in UDIS, under the same terms and conditions established in the Program of Support for Housing Credit Debtors. With respect to such restructurings, the mechanics described in sections 3.1.1 or 3.1.2 above will apply, as applicable.

The interest rates of 6.5% annually up to the first 165,000 UDIS and 10.0% annually for the excess, referred to in section 2.5 of Circular 1285, will not apply to the restructurings referred to in this section. Likewise, the interest rates of 2.5% annually up to the first 165,000 UDIS and 5% annually for the excess, provided for in section 2.3 of the aforementioned Circular 1285, will not apply to the UDIS trust in question.

3.1.4 Restructuring of credits individualized under the Program of Support for Housing Construction in Process.

Institutions may restructure credits that have been individualized in UDIS under the Program of Support for Housing Construction in Process, under the same terms and conditions under which they were granted. With respect to such restructurings, the mechanics described in sections 3.1.1 and 3.1.2 above will apply, as applicable.

3.2 Credits denominated in national currency.

3.2.1 Debtors who are up to date on their payments.

Once the benefit of the discount on the outstanding balance of the credit is determined, according to sections 2.5, 3.1.1.1, first paragraph, and 3.1.2.1, first paragraph, above, as applicable, institutions will proceed as follows:

a) They will divide the credit balance into the unconditional payment portion and the conditional discount portion, according to subsection a) of the aforementioned section 3.1.1.1 or subsections a) to c) of the aforementioned section 3.1.2.1, as applicable.

b) Regarding credits that contractually do not provide for the refinancing of ordinary interest as a form of payment, new payment schemes for principal and interest must be determined for the unconditional payment portion and the conditional discount portion. When the debtor makes the payment of their monthly installments, institutions will amortize the unconditional payment portion and the conditional discount portion, in accordance with the said schemes.

c) For those credits that contractually provide for the refinancing of ordinary interest as a form of payment, the debtor must continue making their payments in accordance with the terms and conditions agreed upon in the respective credit contract. When the borrower makes such payments, the amortization made to the conditional discount portion will be proportional to the amount credited to the unconditional payment portion.

d) The amount of the conditional discount portion will be absorbed by the institutions and the Federal Government under the terms of the Agreement, taking into consideration, if applicable, the provisions of section 4.2 of this Circular.

3.2.2 Credits that are restructured in UDIS.

For the purpose of determining the outstanding balance of the credit in question to which the discount percentage determined according to section 2.5 above will be applied, said balance must be converted to UDIS using the national currency value determined by the Bank of Mexico for the day on which the restructuring is carried out, based on the variation of the National Consumer Price Index, and published in the Official Gazette of the Federation.

Institutions may restructure credits denominated in national currency under the terms and conditions established in the Program of Support for Housing Credit Debtors, with the exception of those applicable to the Program of Support for Housing Construction in Process. With respect to such restructurings, the mechanics described in sections 3.1.1 or 3.1.2 above will apply, as applicable.

The interest rates of 6.5% annually up to the first 165,000 UDIS and 10.0% annually for the excess, referred to in section 2.5 of Circular 1285, will not apply to the restructurings referred to in this section. Likewise, the interest rates of 2.5% annually up to the first 165,000 UDIS and 5% annually for the excess, provided for in section 2.3 of the aforementioned Circular 1285, will not apply to the UDIS trust in question.

3.3 Mechanics for applying advance payments.

In the event that debtors make advance payments under the Agreement, institutions will amortize the unconditional payment portion and the conditional discount portion, in accordance with the payment schemes for principal and interest referred to in subsection d) of section 3.1.1.1, subsection f) of section 3.1.2.1, and subsections b) and c) of section 3.2.1.

Regarding credits denominated in UDIS, the amount of the conditional discount portion will be credited against Fiduciary Values, as well as against Government Bonds.

4. DISTRIBUTION OF THE COST OF THE DISCOUNT ON THE OUTSTANDING BALANCE OF THE CREDITS.

4.1 Amount of the discount on the outstanding balance of the credits.

The distribution of the cost of the discount on the outstanding balance of the credits between the Federal Government and the institutions will be carried out according to the table and explanations by debt balance ranges indicated below:

Debt Balance Range (in UDIS or its equivalent in pesos)	Total Weighted Discount (%)	Discount by Range (%)	Federal Government (%)	Institution (%)
Up to 165,000 UDIS	50	50	33	17
Greater than 165,000 and up to 500,000 UDIS	50 - 46.65	45	33	12
Greater than 500,000 UDIS	Less than 46.65	0

4.1.1 Debts up to 165,000 UDIS.

Institutions absorb 17 percentage points and the Federal Government absorbs 33 percentage points of the discount.

4.1.2 Debts greater than 165,000 UDIS and up to 500,000 UDIS.

The costs associated with the discount on payment for the first 165,000 UDIS have the same treatment described in section 4.1.1 above. The distribution of the additional costs between the institutions and the Federal Government will be as follows:

Institutions absorb 12 percentage points and the Federal Government absorbs 33 percentage points of the discount.

4.1.3 Debts greater than 500,000 UDIS.

The costs will be assumed in the same manner as credits less than 500,000 UDIS.

In the case of credits greater than 500,000 UDIS, their discount will be the result of multiplying 46.65% by the quantity resulting from dividing 500,000 by the debt balance.

4.2 Discounts on the outstanding balance of the credit granted prior to the signing of the Agreement, except those mentioned in the last paragraph of section 2.1.

The discounts on the outstanding balance of the credit granted prior to the signing of the Agreement, except those mentioned in the last paragraph of section 2.1 above, will be considered for the purpose of determining the part of the benefit of the discount on the outstanding balance of the credit that will be absorbed by the institutions themselves.

4.3 Payment to institutions of the amount of the discounts due from the Federal Government.

The Federal Government will establish the mechanisms through which it will cover the payment obligations resulting from the Agreement, which will be settled within a maximum period of 5 years and will be capitalized quarterly at the rate of 91-day CETES.

The CETES rate will be determined based on the arithmetic average of the rates of the immediately preceding month.

5. LOSS OF BENEFITS.

When a debtor receiving the discounts established in the Agreement fails to meet their payment obligations to such an extent that their credit is considered due in accordance with the Accounting Criteria for Credit Institutions, they will lose said benefits.

The debtor to whom benefits have been cancelled in accordance with the previous paragraph will only enjoy them again from the date on which they cover the entirety of their overdue payments without the discount referred to in section 2.1 above.

Institutions, with respect to those debtors of credits that contractually provide for the refinancing of ordinary interest as a form of payment and who, having lost the benefits of the Agreement, regain them again, in accordance with the provisions of the previous paragraph, will add the amount of the overdue obligations corresponding to the conditional discount portion for the period in which said benefits were lost to the balance of the unconditional payment portion.

6. ACCOUNTING REGISTRATION.

6.1 In institutions.
Until the Ministry of Finance and Public Credit determines the mechanisms through which it will cover the payment obligations of the Federal Government arising from the Agreement, institutions shall record said obligations in accordance with what is established in this section.

6.1.1 Credits denominated in UDIS.

6.1.1.1 Monthly payments made by the borrower.
As a result of the monthly payments made by the borrower, institutions shall make the following records:
a) For the total amount that would correspond to pay without considering the discount, credit shall be made to account 2311.- OTHER CREDITORS, subaccount 03.- "Trust cash", charged to:
i The cash account for the amount received from the debtor. ii For the portion of the discount that the Federal Government will cover for the institutions, charge account 1331.- FEDERAL GOVERNMENT. DISCOUNT ON HOUSING CREDIT PAYMENTS. ADDITIONAL BENEFITS PROGRAM, subaccount 01.- "Principal". iii For the portion of the discount that corresponds to be covered by the institutions, charge account 2505.- PREVENTIVE PROVISIONS FOR COVERAGE OF CREDIT RISKS, corresponding subaccounts. b) For the delivery to the respective trust of the total amount of the credit payment, charge the subaccount 231103.- "Trust cash" with credit to the cash account. c) For the resources that institutions receive from the respective trust by way of payment, the institutions themselves shall credit account 1203.- BONDS HELD TO MATURITY, subaccount 03.- "Government Bonds. Support Program for Housing Credit Debtors", corresponding sub-subaccount. d) The interest at the 91-day CETES rate that accrues monthly on the amounts recorded in said account 1331, shall be recorded by charging account 1319.- ACCRUED INTEREST ON LOANS AND CREDIT VIGOROUS, subaccount 25.- "For loan to the Federal Government. Additional benefits program for housing credit debtors" and crediting 5201.- INTEREST RECEIVED, subaccount 64.- "For housing credits. Additional benefits program for housing credit debtors". For the quarterly capitalization of interest, charge the subaccount 133102.- "Capitalized interest" and credit the aforementioned subaccount 131925.

6.1.1.2 Restructuring of credits previously restructured under the Program and the Support Program for Housing Credit Debtors.
Institutions shall proceed as follows:
a) Reclassification of the registration of Government Bonds.
Transfers shall be made between the sub-subaccounts of subaccount 03.- "Government Bonds. Support Program for Housing Credit Debtors", of account 1203.- BONDS HELD TO MATURITY, based on the new amortization terms of the restructurings. b) Impacts on the controlling accounts of the trusts.
The modification in the terms of the restructured credits will result in transfer entries in the subaccounts of account 6230.- TRUSTS. SUPPORT PROGRAM FOR HOUSING CREDIT DEBTORS UDIS. To differentiate the restructured ones in which their amortization term is modified, the following sub-subaccounts are created:
01.- Option 1.- 20-year amortization term.
0101.- Original credits. Support Program for Housing Credit Debtors UDIS.
0103.- 0103.- Restructured credits. Agreement on Benefits for Housing Credit Debtors.
02.- Option 2.- 25-year amortization term.
0201.- Original credits. Support Program for Housing Credit Debtors UDIS.
0203.- Restructured credits. Agreement on Benefits for Housing Credit Debtors.
03.- Option 3.- 30-year amortization term.
0301.- Original credits. Support Program for Housing Credit Debtors UDIS.
0303.- Restructured credits. Agreement on Benefits for Housing Credit Debtors.

6.1.1.3 Restructuring of individualized credits under the Support Program for Housing Construction in Process.
For the accounting in the controlling accounts of the trusts of the restructured credits that have been individualized in UDIS referred to in section 3.1.4 above, institutions shall create the following sub-subaccounts in subaccount 04.- "Individualized credits" of account 6230.- TRUSTS. SUPPORT PROGRAM FOR HOUSING CREDIT DEBTORS UDIS:
0401.- Original credits. Support Program for Housing Credit Debtors UDIS.
0403.- Restructured credits. Agreement on Benefits for Housing Credit Debtors.

6.1.2 Credits denominated in national currency.

6.1.2.1 Monthly payments made by the borrower.
As a result of the monthly payments made by the borrower, institutions shall make the following records:
a) Charge to the cash account for the amount received from the debtor. b) For the portion of the discount that the Federal Government will cover for the institutions, charge account 1331.- FEDERAL GOVERNMENT. DISCOUNT ON HOUSING CREDIT PAYMENTS. ADDITIONAL BENEFITS PROGRAM, subaccount 01.- "Principal". c) For the portion of the discount that corresponds to be covered by the institutions, charge account 2505.- PREVENTIVE PROVISIONS FOR COVERAGE OF CREDIT RISKS, corresponding subaccounts. d) Credit shall be made to the accounts in the chart of accounts that correspond in accordance with the terms and conditions established in the contracts. e) The interest at the 91-day CETES rate that accrues monthly on the amounts recorded in said account 1331, shall be recorded by charging account 1319.- ACCRUED INTEREST ON LOANS AND CREDIT VIGOROUS, subaccount 25.- "For loan to the Federal Government. Additional benefits program for housing credit debtors" and crediting 5201.- INTEREST RECEIVED, subaccount 64.- "For housing credits. Additional benefits program for housing credit debtors". For the quarterly capitalization of interest, charge the subaccount 133102.- "Capitalized interest" and credit the aforementioned subaccount 131925.

6.1.2.2 Credits that are restructured in UDIS.
For the accounting of credits that are restructured in UDIS, institutions shall adhere to the registration procedure established in Circular 1285 for restructuring.
Regarding the monthly payments made by the borrower, institutions shall comply with what is established in section 6.1.1.1 above.

6.1.3 Advance payments.
As a result of the advance payments made by the borrower, institutions shall adjust to the records established in sections 6.1.1.1 for credits denominated in UDIS and 6.1.2.1 for credits denominated in national currency.

6.2 Registration in trusts.

6.2.1 Application of monthly and advance payments.
For the monthly payments and advance payments of credits made by debtors, observing what is indicated in sections 2.1 and 2.4 of this Circular respectively, the trust shall receive the total amount of said payments by depositing them into the cash account with credit to the CREDIT PORTFOLIO. UDIS PROGRAM account, and simultaneously proceed to the amortization of UDIS TRUST ASSETS, in accordance with the procedure established in Circular 1285.

6.2.2 Restructuring of credits previously restructured under the Program and the Support Program for Housing Credit Debtors.
For the restructuring of credits previously restructured in UDIS, all asset accounts against the liability accounts of the trust in which they were registered shall be cancelled, and they shall be registered in the corresponding trust in the trust based on their term.

6.2.3 Credits that are restructured in UDIS.
The registration in the corresponding trust for credits that are restructured in UDIS shall be subject to the procedure established in Circular 1285.

7. INFORMATION TO THE NATIONAL BANKING AND SECURITIES COMMISSION.

7.1 Institutions must deliver monthly information regarding the housing credit portfolio for each of the UDIS trusts, distinguishing the own portfolio and the one that was subject to the cash flow participation scheme with the Bank Protection Savings Fund (FOBAPROA), that receive and do not receive the benefits of the Agreement, classified by ranges of debt balances in UDIS and by balances of the unconditional payment portion, as well as, where applicable, by the balance of the conditional discount portion and the amount of discounts granted prior to the signing of the Agreement, except those indicated in the last paragraph of section 2.1, in the form that is attached to this Circular as Annex 1, within the first 10 business days of the month immediately following that to which the information corresponds.
The information for the month of November 1998, as well as that for the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.2 Institutions must provide monthly information regarding the housing credit portfolio denominated in national currency, distinguishing the own portfolio and the one that was subject to the cash flow participation scheme with FOBAPROA, that receive and do not receive the benefits of the Agreement, classified by ranges of debt balances in national currency and by balances of the unconditional payment portion and by remaining overdue term, as well as, where applicable, by the balance of the conditional discount portion and the amount of discounts granted prior to the signing of the Agreement, except those indicated in the last paragraph of section 2.1, in the form that is attached to this Circular as Annex 2, within the first 10 business days of the month immediately following that to which the information refers.
The information for the month of November 1998, as well as that for the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.3 Institutions must deliver monthly information in accordance with what is indicated in section 7.2 above, regarding individualized credits in UDIS, in the form that is attached to this Circular as Annex 3, within the first 10 business days of the month immediately following that to which the information corresponds.
The information for the month of November 1998, as well as that for the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.4 Institutions must provide monthly information on the calculation of support for housing credits under the Agreement that have received discounts prior to the signing of the Agreement, other than those indicated in the last paragraph of section 2.1, specifying the range of the debt balance, payment date, type of unit, institution discounting, trust, number of debtors, initial balance, amount of discounts granted prior to the Agreement, of the payment, of the discounts absorbed by the institution and the Federal Government, as well as, where applicable, of the additional discount absorbed by the institution, in the form that is attached to this Circular as Annex 4, within the first 10 business days of the month immediately following that to which the information refers.
The information corresponding to the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.5 Institutions must deliver monthly information on the calculation of support for housing credits that receive the benefits of the Agreement and that have not received discounts prior to the signing of the Agreement, except those indicated in the last paragraph of section 2.1, specifying the range of the debt balance, payment date, type of unit, institution discounting, trust, number of debtors, initial balance, amounts of the payment, of the discount absorbed by the institution and the Federal Government, as well as of the additional discount absorbed by the institution, in the form that is attached to this Circular as Annex 5, within the first 10 business days of the month immediately following that to which the information corresponds.
The information corresponding to the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.6 Institutions must provide monthly information on the calculation of support for housing credits that do not receive the benefits of the Agreement and receive the benefits of the Program, specifying number of debtors, payment date, discount percentage, type of credit, amounts of the payment, of the discounted payment, institution discounting, amounts susceptible to discount, of advance payments, of support from the Federal Government and of the total of discounts granted for monthly and advance payments, in the form that is attached to this Circular as Annex 6, within the first 10 business days of the month immediately following that to which the information refers.
The information corresponding to the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.7 Institutions must deliver monthly information regarding their housing credit portfolio by federal entity, specifying its classification and the liquidated portfolio, in the form that is attached to this Circular as Annex 7, within the first 10 business days of the month immediately following that to which the information corresponds.
The information for the month of November 1998, as well as that for the months of January, February, and March 1999, must be delivered no later than April 19 of the current year.

7.8 The required information must be provided to the National Banking and Securities Commission via electronic transmission, in accordance with the procedure established in Circular 1286 of January 17, 1996, for which, from April 1, 1999 and by this same means, Annexes 1 to 7 referred to in this Circular, as well as their corresponding filling instructions, will be available to institutions in the "Automated Capture System" (SAC).

7.9 The information referred to in sections 7.1 to 7.7 above must be sent only once and will be received assuming it meets all required characteristics, for which reason it cannot be modified, generating an electronic receipt from the system.
Once the information is received, it will be reviewed and if it does not meet the required quality and characteristics or is provided incompletely, the obligation to present it will be considered unfulfilled, and consequently, proceedings will be taken in accordance with the third paragraph of section 8.

7.10 Institutions will notify in writing to the Statistics Directorate of this Commission, located at Insurgentes Sur 1971, Plaza Inn Complex, North Tower, 6th floor, Guadalupe Inn Neighborhood, of this City, the name of the persons responsible for providing the information referred to in Annexes 1 to 7 of this Circular, in the form that is attached as Annex 8.
The appointments must fall on officials who are within the two lower hierarchies below the General Director of the institution, who have responsibility for the handling of the information.
The substitution of any of the responsible officials must be communicated to the Commission itself under the terms of this section, within three business days following the substitution.

8. COMPLIANCE WITH THE AGREEMENT.
   Institutions that assume any of the operational facilities derived from the Agreement must comply with the regulations issued by the financial authorities and contained in this Circular.
   This Commission will supervise that institutions apply the benefits and general conditions established in the Agreement.
   When exercising its supervisory powers, if this Commission knows and proves deviations by any institution in the execution of the Agreement, it may recommend to the Federal Government to reduce or temporarily suspend the payments that, according to this Agreement, it must make to the institution, without prejudice to the fact that debtors continue to enjoy the benefits of the Agreement during its validity.

9. OTHER COMMITMENTS OF THE BANKING SECTOR.
   Those debtors who are beneficiaries of the Additional Benefits Program for Housing Credit Debtors, other than those indicated in section 1 of this Circular, will retain the benefits of the discounts in payments provided for in said Program.

10. SUPPLEMENTARY PROVISIONS.
    In matters not provided for in this Circular, the accounting practices and criteria that apply to credit institutions will be followed.

11. PROGRAMS IN UDIS.
    Institutions may carry out credit restructurings in UDIS and their impact in the trust under the Program, from January 1 to September 30, 1999, provided that the credits were granted prior to April 30, 1996.

12. ANNEXES.
    In addition to the annexes cited in this Circular, the sheet of the chart of accounts affected by the provisions contained herein is attached.

Respectfully,
NATIONAL BANKING AND SECURITIES COMMISSION
Eduardo Fernández García
President

6230.- TRUSTS. SUPPORT PROGRAM FOR HOUSING CREDIT DEBTORS UDIS 623001.- Option 1.- 20-year amortization term 62300101.- Original credits. Support Program for Housing Credit Debtors UDIS 62300103.- Restructured credits. Agreement on Benefits for Housing Credit Debtors 623002.- Option 2.- 25-year amortization term 62300201.- Original credits. Support Program for Housing Credit Debtors UDIS 62300203.- Restructured credits. Agreement on Benefits for Housing Credit Debtors 623003.- Option 3.- 30-year amortization term 62300301.- Original credits. Support Program for Housing Credit Debtors UDIS 62300303.- Restructured credits. Agreement on Benefits for Housing Credit Debtors 623004.- Individualized credits 62300401.- Original credits. Support Program for Housing Credit Debtors UDIS 62300403.- Restructured credits. Agreement on Benefits for Housing Credit Debtors 623005.- Credits intended for the acquisition of commercial premises The balance of this account must invariably coincide with the special accounting records that must be opened for each of the trusts. C-1430