Circular 27/2009 — Modifies Circular 21/2009

Monday, November 30, 2009 OFFICIAL GAZETTE (First Section) 71

CIRCULAR 27/2009 regarding the General Provisions establishing the calculation methodology, formula, components, and assumptions of the Annual Total Cost (CAT).

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 27/2009

TO CREDIT INSTITUTIONS, LIMITED OBJECT FINANCIAL SOCIETIES; REGULATED AND UNREGULATED MULTIPLE OBJECT FINANCIAL SOCIETIES; POPULAR SAVINGS AND CREDIT ENTITIES; FINANCIAL ENTITIES ACTING AS TRUSTEES IN TRUSTS THAT EXTEND CREDIT TO THE PUBLIC, AS WELL AS SOCIETIES THAT USUALLY EXTEND CREDITS:

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24, 26, and 36 of the Bank of Mexico Law; 8, 21, and 22 of the Law for Transparency and Orderly Regulation of Financial Services, as well as the eighth third and sixth paragraphs, 10, 14 in relation to Article 25, fraction II, and 17, fraction I, which provide for the Bank of Mexico's authority to issue provisions through the General Directorate of Financial System Analysis and the Directorate of Central Banking Provisions, respectively, all of the Internal Regulations of the Bank of Mexico, as well as the Single Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions III and IV; taking into account the provisions of Articles 5 and 6 of the Law on Transparency and Promotion of Competition in Secured Credit, as well as Article 6 of the Federal Law for Consumer Protection referring to the Annual Total Cost (CAT); with the objective of promoting the sound development of the financial system, protecting the interests of the public, and fostering transparency and competition, considering that some intermediaries have informed this Central Institute that they have not yet completed the modifications to the systems to calculate the CAT that must be included in account statements, based on the weighted average interest rate by balance of the customer's credit, has resolved to allow those intermediaries that from December 1, 2009, to March 31, 2010, they may use for said calculation the interest rate applicable to the revolving part of the customer's credit line in the corresponding period.

For the above effect, starting December 1, 2009, a second paragraph is added to the First of the Transitory Provisions of Circular 21/2009, which contains the General Provisions establishing the calculation methodology, formula, components, and assumptions of the Annual Total Cost (CAT), published in the Official Gazette of the Federation on September 4, 2009, to read as follows:

TRANSITORY PROVISIONS

“FIRST. . . .

Notwithstanding the foregoing, Entities that are not able to calculate the CAT that must be included in account statements, using the weighted average balance rate of the Customer's Credit may, from December 1, 2009, to March 31, 2010, calculate said CAT considering the interest rate applicable to the revolving part of the Customer's credit line in the corresponding period.”

Mexico, D.F., November 27, 2009.- BANK OF MEXICO: The General Director of Financial System Analysis, José Gerardo Quijano León.- Signature.- The Director of Central Banking Provisions, Fernando Luis Corvera Caraza.- Signature.

For any inquiries regarding the content of this Circular, please contact the Authorization, Consultations, and Legal Control Department, located at Avenida 5 de Mayo number 2, sixth floor, Centro Neighborhood, Mexico City, Federal District, C.P. 06059, or at telephone numbers 5237.2308, 5237.2317, or 52372000 Ext. 3200.

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