Circular A 4874: Time Deposits and Investments, Deposit Guarantee System Application, Minimum Capital, and Remuneration in Goods or Services

“2008 - Year of Science Education”
COMMUNICATION “A” 4874 19/11/2008
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 492
OPASI 2 - 391
Time Deposits and Investments. Application of the deposit guarantee insurance system. Minimum capital of financial entities. Remuneration in goods or services. ______ We address you to inform you that this Institution has adopted the following resolution:

“1. Replace the first paragraph of point 1.5.2. of Section 1. of the rules on “Time Deposits and Investments” with the following:
“The appropriate one shall be inscribed according to the type of operation (“Nominal Non-Transferable Fixed-Term Deposit Certificate”, “Fixed-Term Deposit Certificate of National Public Securities”, “Nominal Fixed-Term Deposit Certificate with Variable Interest Clause”, “Nominal Non-Transferable/Transferable Fixed-Term Deposit Certificate with Reference Stabilization Coefficient Application Clause” -“CER”-, “Non-Transferable Fixed-Term Deposit Certificate with incentives or remuneration in goods or services”, etc.).”

2. Incorporate into Section 1. of the rules on “Time Deposits and Investments” the following point:
   “1....Deposits with incentives or remuneration -total or partial- in goods or services.
   Holders must be advised regarding the nature of the remuneration for tax purposes.
   The body of the document instrumenting the deposit must record that this requirement has been met.
   These deposits may only be made in pesos.”

3. Incorporate as point 1.10.4. of Section 1. of the rules on “Time Deposits and Investments” the following:
   “1.10.4. Deposits with incentives or remuneration -total or partial- in goods or services.

-2-
When the remuneration in goods or services is partial, an additional remuneration may be freely agreed upon, which must remain unchanged during the total agreed term.”

4. Incorporate as point 1.10.5.3. of Section 1. of the rules on “Time Deposits and Investments” the following:
   “1.10.5.3. Incentives or remuneration in advance in goods or services -point 1.10.4.- are admitted.”

5. Incorporate as point 1.11.4. of Section 1. of the rules on “Time Deposits and Investments” the following:
   “1.11.4. Deposits with incentives or remuneration -total or partial- in goods or services.
   Minimum: 180 days.”

6. Replace the second paragraph of point 3.5.1. of the rules on “Time Deposits and Investments” with the following:
   “Deposits in pesos and foreign currency are covered by a guarantee of $ 30,000. In operations in the name of two or more persons, the guarantee shall be prorated among their holders. In no case shall the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. “A” 2337 and its modifications and complements. Those captured at rates higher than the reference rate and those that have received special incentives or remuneration different from the interest rate are excluded.”

7. Replace point 5.2.2. of the rules on “Application of the deposit guarantee insurance system” with the following:
   “5.2.2. Deposits that offer incentives or remuneration different from the interest rate and, where applicable, the amount accrued by applying the “CER”, regardless of the denomination or modality adopted (insurance, lotteries, tourism, provision of services, etc.).”

8. Replace the second paragraph of point 6. of the rules on “Application of the deposit guarantee insurance system” with the following:
   “Deposits in pesos and foreign currency are covered by a guarantee of $ 30,000. In operations in the name of two or more persons, the guarantee shall be prorated among their holders. In no case shall the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. “A” 2337 and its modifications and complements. Those captured at rates higher than the reference rate and those that have received special incentives or remuneration different from the interest rate are excluded.”

-3-
9. Repeal the resolution disseminated by Communication “A” 4264, by which it was admitted, on an exceptional basis, that financial entities could capture time deposits with remuneration in durable consumer goods.

Finally, we send you the sheets that, in replacement of those previously provided, should be incorporated into the organized texts of the rules on “Time Deposits and Investments”, “Application of the deposit guarantee insurance system” and “Minimum capital of financial entities”. Likewise, we remind you that on this Institution’s website www.bcra.gov.ar, accessing “regulations”, “organized texts”, the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you very respectfully.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Juan C. Isi José I. Rutman
Principal Manager of Issuance and
Regulatory Queries
General Manager of Regulations

ANEXO

• Index -
  Section 1. Fixed-Term.
  1.1. Admitted capture modalities.
  1.2. Holders.
  1.3. Investor identification and tax status.
  1.4. Special precautions.
  1.5. Instrumentation.
  1.6. Operational modalities.
  1.7. Constitution.
  1.8. Admitted currencies and securities.
  1.9. Deposits with “CER” clause.
  1.10. Deposits with incentives or remuneration -total or partial- in goods or services.
  1.11. Remuneration.
  1.12. Term.
  1.13. Cancellation of the operation.
  1.14. Automatic renewal.
  1.15. Transmission.
  1.16. Secondary negotiation.
  1.17. Prohibitions.
  1.18. Publicity of the rules.
  Section 2. Time Investments.
  2.1. General aspects.
  2.2. Fixed-Term.

B.C.R.A.
UPDATED ORGANIZED TEXT OF THE RULES ON
“TIME DEPOSITS AND INVESTMENTS”
Version: 3rd COMMUNICATION “A” 4874
Validity:
19/11/2008

1.1. Admitted capture modalities.
Financial entities may capture funds on a fixed-term basis in the form of deposits, from third parties outside the financial sector, only in compliance with the provisions established in these rules.

1.2. Holders.
Natural and legal persons.

1.3. Investor identification and tax status.
It will be verified based on the documents that holders must present, in compliance with points 3.1. and 3.2. of Section 3.

1.4. Special precautions.
Precautions must be taken to prevent the receipt of deposits in the name of non-existent persons due to the presentation of non-authentic documents, as well as to prevent their use in connection with the development of illicit activities.

1.5. Instrumentation.
The instruments representing these operations must state:

1.5.1. Correlative numbering.
It will be inserted according to the information systems implemented by each entity and must be printed at the time the respective certificate is delivered to the depositor.

1.5.2. Denomination of each type of operation.
The appropriate one shall be inscribed according to the type of operation (“Nominal Non-Transferable Fixed-Term Deposit Certificate”, “Fixed-Term Deposit Certificate of National Public Securities”, “Nominal Fixed-Term Deposit Certificate with Variable Interest Clause”, “Nominal Non-Transferable/Transferable Fixed-Term Deposit Certificate with Reference Stabilization Coefficient Application Clause” -“CER”-, “Non-Transferable Fixed-Term Deposit Certificate with incentives or remuneration in goods or services”, etc.). When a deposit certificate corresponds to an operation that will be subject to automatic renewal, the inscription “Renewable” must appear in identical characters.

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.
Version: 3rd COMMUNICATION “A” 4874
Validity:
19/11/2008

1.10. Deposits with incentives or remuneration -total or partial- in goods or services.
Holders must be advised regarding the nature of the remuneration for tax purposes.
The body of the document instrumenting the deposit must record that this requirement has been met.
These deposits may only be made in pesos.

1.11. Remuneration.

1.11.1. Fixed-rate deposits.
According to the rate freely agreed upon.

1.11.2. Deposits with variable interest clauses.

1.11.2.1. Basic remuneration.
It shall be equivalent to:
i) The interest rate resulting from any of the following surveys that the Central Bank of the Argentine Republic elaborates and publishes daily through the respective Communication “C”:
a) Fixed-term deposits. b) Fixed-term deposits of 30 to 35 days term and of more than one million pesos or dollars (“BADLAR”). c) Accepted between private banks (“BAIBAR”). d) Offered between banks - Buenos Aires (“BAIBOR”). ii) LIBOR for segments of 30 days or more. iii) Any of the rates mentioned in items i) and ii), plus the additional remuneration that may be agreed upon -point 1.11.2.2.-, or the fixed rate freely agreed upon, whichever is greater. To this end, each entity may consider the average of the specified daily measurements over the period of 2 to 5 immediate banking business days prior to the start date of each calculation sub-period, which shall not be less than 30 days. This option shall remain fixed for the entire validity term of the deposit.

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.
Version: 6th COMMUNICATION “A” 4874
Validity:
19/11/2008

Once the level is determined, the rate must remain unchanged for a term of no less than 30 days.

1.11.2.2. Additional remuneration.
The number of points (positive and negative) that depositary entities freely agree upon with depositors, which must remain unchanged during the total agreed term.

1.11.2.3. Record.
The body of the document instrumenting the deposit must clearly determine the basic parameter used (indicating, if applicable, whether it is a general average or corresponds to a specific type of financial entity -private banks, public banks, or non-bank financial entities-, currency -pesos or US dollars- as well as the term of the chosen survey), the days prior to each calculation sub-period for which the average of the rates in each operation was calculated, the additional points that will govern it, as well as the duration of the agreed sub-periods.

1.11.3. Deposits with “CER” clause.
According to the rate freely agreed upon.

1.11.4. Deposits with incentives or remuneration -total or partial- in goods or services.
When the incentives or remuneration in goods or services is partial, an additional incentive or remuneration may be freely agreed upon, which must remain unchanged during the total agreed term.

1.11.5. Settlement.
It must be carried out from the date of receipt of the deposit (or the expiration of the previously agreed payment sub-period) until the day of the deposit’s maturity (or each sub-period).

1.11.5.1. Regarding title deposits, interest shall be calculated on the nominal values, paid in the currency agreed upon when making the deposit, at the maturity of the operation, converted according to the last closing quote in pesos (spot) in the securities market where they are quoted.

1.11.5.2. In the case of “Deposits with CER clause”, interest shall be calculated on the updated capital, as provided in point 1.9.

1.11.6. Payment.

1.11.6.1. At final maturity for deposits with terms less than 180 days.
Version: 9th COMMUNICATION “A” 4874
Validity:
19/11/2008
TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.

1.11.6.2. Periodic payment of accrued interest before the maturity of the deposit is admitted, provided it is made in arrears, with a frequency of no less than 30 days, and refers to deposits with terms of 180 days or more.

1.11.6.3 Incentives or remuneration in advance in goods or services -point 1.11.4.- are admitted.

1.12. Term.

1.12.1. Fixed interest rate deposits.

1.12.1.1. In pesos or foreign currency.
Minimum: 30 days.

1.12.1.2. Of public and private securities.
As freely agreed upon.

1.12.2. Deposits with variable interest clauses.
Minimum: i) For deposits whose basic remuneration is contemplated in items i) and ii) of point 1.11.2.1.: 120 days. ii) For deposits whose basic remuneration is contemplated in item iii) of point 1.11.2.1.: 180 days. Longer terms must be multiples of the calculation sub-period chosen to determine the applicable rate, in accordance with point 1.11.2.1.

1.12.3. Deposits with “CER” clause.
Minimum: 365 days.

1.12.4. Deposits with incentives or remuneration -total or partial- in goods or services.
Minimum: 180 days.

1.13. Cancellation of the operation.

1.13.1. The documents used to finalize the cancellation of an operation must meet the characteristics of a receipt, which, in the case of certificates, may be inserted in the same form. Upon the interested party’s request, a duplicate of the document will be delivered.

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.
Version: 10th COMMUNICATION “A” 4874
Validity:
19/11/2008

When deposits are formalized by crediting an account or in a non-personal manner, the credit in the account indicated by the client shall constitute satisfactory proof.

1.13.2. Non-transferable deposits cannot be withdrawn, in whole or in part, before their maturity.

1.14. Automatic renewal.

1.14.1. Holders of nominal non-transferable fixed-term deposits may authorize the reinvestment of the deposited capital for successive predetermined periods, equal or not, in compliance with the rules governing at the time of renewal.

1.14.2. Reinvestment may include accrued interest that will be capitalized. If not included, interest must be credited, at the end of each period, to the account indicated by the client.

1.14.3. The authorization for automatic renewal must be extended in writing at the time of the deposit’s constitution.
When the certificate remains in custody at the entity, renewal may be ordered by other means (telephone, “internet”, electronic, etc.). Entities must have implemented computer security mechanisms that guarantee the genuineness of operations.

1.14.4. The authorization shall remain valid until further notice, in writing or by other agreed means, or until the holder presents themselves for payment at the corresponding maturity.

1.14.5. The entity shall adequately preserve records related to orders issued by the client.

1.14.6. Deposit certificates shall not be issued, nor new fund entries registered, for renewals.

1.15. Transmission.
Transferable nominal certificates issued in accordance with the provisions of Law 20.663 and these rules shall be transferable by endorsement that precisely indicates the beneficiary and the date on which the transmission takes place. Endorsements to bearer or in blank shall not be valid.

1.16. Secondary negotiation.

1.16.1. Financial entities may intermediate or purchase transferable certificates, provided that from the date of issuance or last negotiation or transfer, regardless of the reason for them, a period -as derived from the document itself- of no less than 30 days has elapsed, except when it concerns operations between entities.

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.
Version: 5th COMMUNICATION “A” 4874
Validity:
19/11/2008

1.16.2. Certificates acquired by the issuing entities themselves shall be charged against the respective deposit, which must be cancelled.

1.16.3. Financial entities that use rediscounts or advances from the Central Bank of the Argentine Republic for temporary illiquidity situations shall not acquire fixed-term deposit certificates or time investment certificates -in pesos, in foreign currency, or of securities- issued by them, even if the minimum period of 30 days has elapsed from the date of issuance or last negotiation or transfer, while those facilities remain in effect.

1.17. Prohibitions.

1.17.1. The following deposits shall not be admitted:

1.17.1.1. Constituted in the name of other financial entities included in the Financial Entities Law.

1.17.1.2. With automatic renewal (except that provided in point 1.14.) with indefinite term or with the obligation to return them before their maturity.

1.17.1.3. With maturities that fall on non-business days. When the maturity day is declared a non-business day after the date of the deposit, it may be renewed with value to that day, or its maturity and correlative interest settlement at the agreed rate may be extended to the next business day.

1.17.1.4. Of residents or non-residents in the country, under any modality of agreement and through associated agreements -formalized or not-, that imply that the return of the deposited funds is guaranteed by another financial entity, except in cases specifically admitted by the Central Bank of the Argentine Republic.

1.17.2. Participations.
Financial entities shall not issue participations -whatever their concept- on one or more deposit certificates.

1.18. Publicity of the rules.
Financial entities shall display, for public knowledge and in places visible to them, the current rules on fixed-term deposits.

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 1. Fixed-Term.
Version: 4th COMMUNICATION “A” 4874
Validity:
19/11/2008

be made in the same class of asset (banknotes or transfers) in which the funds were deposited. ii) When the investment was made in banknotes, the investor may opt, upon total or partial withdrawal, to receive banknotes or transfers.

2.1.7. Settlement and payment of interest.

2.1.7.1. Settlement shall be carried out from the date of receipt of the investment (or the expiration of the previously agreed payment sub-period) until the day of the deposit’s maturity (or each sub-period).

2.1.7.2. Payment shall be made at final maturity or periodically, at least every 30 days.

2.1.8. Cancellation of the operation.

2.1.8.1. The documents used to finalize the cancellation of an operation must meet the characteristics of a receipt, which, in the case of certificates, may be inserted in the same form. Upon the interested party’s request, a duplicate of the document will be delivered.

2.1.8.2. Non-transferable investments cannot be withdrawn, in whole or in part, before their maturity.

2.1.9. Denomination of operations.
Entities may use other names to identify the capture modalities established in this Section for dissemination purposes. In instrumentation, they must comply with the denominations contained herein, mentioning the regulation of the Central Bank of the Argentine Republic that governs them.

2.1.10. Other provisions.
The provisions established for fixed-term deposits in points 1.15., 1.16., 1.17. (except 1.17.1.2.) and 1.18. of Section 1 shall apply.

2.2. Fixed-Term.

2.2.1. Term.
Minimum: 180 days.
The term shall have permanent validity, so that after thirty days have elapsed, the term automatically extends by a term equal to that amount, unless

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 2. Time Investments.
Version: 3rd COMMUNICATION “A” 4874
Validity:
19/11/2008

issued by the teller during the transaction process, in the specific slot for that function, and remove the receipt that the machine delivers upon completing the operation, which will serve for any subsequent claim.

3.4.2.8. Do not forget to remove the magnetic card upon completing operations.

3.4.2.9. If the teller retains the card or does not issue the corresponding receipt, immediately report this situation to the bank with which you are operating and to the bank administering the ATM.

3.4.2.10. In case of loss or theft of your card, immediately report this situation to the bank that issued it.

3.4.2.11. In case of withdrawals where there are differences between the receipt issued by the teller and the amount actually withdrawn, report this circumstance to the banks in which the operation was carried out and the system administrator, in order to solve the problem.

3.5. Deposit Guarantee.

3.5.1. Legend.
In all documents representing passive operations (certificates, deposit slips, receipts issued by ATMs, account summaries, etc.), the following legend must appear, visibly and printed on the front or back:

“Deposits in pesos and foreign currency are covered by a guarantee of $ 30,000. In operations in the name of two or more persons, the guarantee shall be prorated among their holders. In no case shall the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. “A” 2337 and its modifications and complements. Those captured at rates higher than the reference rate and those that have received special incentives or remuneration different from the interest rate are excluded.”

In the event that any of the situations cited at the end occur or it concerns a deposit of securities, the following legend must be placed visibly on the front of the documents:

“Deposit without guarantee”

This last requirement shall not apply when operations are carried out through ATMs belonging to networks that enable the operational interconnection of financial entities.

3.5.2. Information to the client.
Entities must keep the complete texts and

TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 3. General Provisions.
Version: 3rd COMMUNICATION “A” 4874
Validity:
19/11/2008

4.1. Participating Entities.
Banks and financial companies.

4.2. Holders.
Natural and legal persons in whose name the foreign exchange transaction covered by the provisions of Article 3 of Decree 616/05 and its regulations is carried out.

4.3. Currency.
United States Dollar.

4.4. Term.
365 days.

4.5. Amount.
30% of the equivalent in United States Dollars of the total foreign exchange settlement operation for the concepts detailed in Article 3 of Decree 616/05 and its regulations.

4.6. Remuneration.
No remuneration shall be recognized on these deposits.

4.7. Issuance of deposit certificates.
Deposits shall be documented through non-transferable registered certificates that, in addition, shall contain the legend "Special deposit for receipt of funds from abroad - Decree 616/05".

4.8. Restrictions.
Financial entities shall not accept these certificates as collateral for financing operations.

4.9. Other provisions.
Insofar as they are not expressly contemplated in the preceding points, the provisions established in points 1.3, 1.4, 1.5, 1.6 (except 1.6.2), 1.7.1, 1.13 and 1.17 (except point 1.17.1.1) of Section 1 and 3.5 and 3.7 of Section 3 shall apply, as appropriate.

TIME DEPOSITS AND INVESTMENTS. CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
Section 4. Specials linked to the receipt of funds from abroad - Decree 616/05.
Version: 2nd
COMMUNICATION "A" 4874
Validity:
19/11/2008

ORDERED TEXT ORIGIN OF THE NORM
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.1. "A" 3043
1.2. "A" 3043
1.3. "A" 3043
1.4. "A" 1199 I 5.7.
1.5.1. "A" 1653 I 3.4.5. 1°
"A" 1465 I 2.1.3.1.
"A" 1653 I 3.4.4.1.
1.5.2.
"A" 1820 I 3.5.
According to Comm. "A" 3660 and "A" 4874.
1.5.3. "A" 1465 I 2.1.3.2.
"A" 1653 I 3.4.4.2.
1.5.4. "A" 1465 I 2.1.3.3.
"A" 1653 I 3.4.4.3.
"A" 1465 I 2.1.3.4.
2.1.3.5.
3.4.4.4.
1.5.5.
"A" 1653 I
3.4.4.5.
S/Comm. "A" 3043 and "A"
3323.
1.5.6. "A" 1465 I 2.1.3.6.
1.5.7. "A" 1465 I 2.1.3.7.
"A" 1653 I 3.4.4.6.
1.5.8. "A" 3043
1.5.9. "A" 1465 I 2.1.3.8.
"A" 1653 I 3.4.4.7.
1.5.10. "A" 3660
1.5.11. "A" 1465
"A" 1653
I
I
2.1.3.9.
3.4.4.9.
According to Comm. "A" 3660.
1.5.12. "A" 1465
"A" 1653
I
I
2.1.3.10.
3.4.4.10.
According to Comm. "A" 3660.
1.5.13. "A" 1465
"A" 1653
I
I
2.1.3.12.
3.4.4.11.
According to Comm. "A" 3660.
1.5.14. "A" 1465 I 2.1.3.11. According to Comm. "A" 3660.
1.6.1. "A" 1465
"A" 1653
I
I
2.1.3.
3.1.
3.3.
1°
1.6.1.1. "A" 1653
"A" 1913
I 3.4.4.
1.
1°
1.6.1.2. "A" 1653 I 3.4.1.
3.4.2.
1.6.1.3. "A" 1653 I 3.4.5.
3.4.6.
2°
1.6.1.4. "A" 1653 I 3.4.5. 3°
1.6.1.5. "A" 1653 I 3.4.7.
1.6.1.6. "A" 1653 I 3.4.8.
1.6.1.7. "A" 3043 I
1.6.2.1. "A" 1913 2. 1°
1° "A" 1913 2° According to Comm. "A" 4809.
1.
1.6.2.2.
2°a
4°
"A" 3323
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON "TIME DEPOSITS AND INVESTMENTS"

TIME DEPOSITS AND INVESTMENTS
ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
1.7. "A" 1653 I 3.4.1.
1.7.1. "A" 1653
"A" 1913
I 3.4.2.
2. 2°
1.7.2. "A" 3043
1.8.1. "A" 1199 I 3.
1.8.2. "A" 1820 I 3.2. 2° According to Comm. "A" 3293,
3527, 3682 -pt. 10.-,
3827 -pt. 9.- and 4140.
1.8.3. "A" 1820 I 3.2. 1°
"A" 1465 I 2. According to Comm. "A" 4716 and "B" 9186. i) "A" 2275 2. 1° ii) "A" 2275 2.1. iii) "A" 2275 2.1.
1.8.4. iv) "A" 4716 8.
1.9. "A" 3660 According to Comm. "A" 3827,
pt. 9.
1.10. "A" 4874 2.
1.11.1. "A" 1465
"A" 1653
"A" 1820
I
2.1.2.
3.1.1.2.
3.3.1.2.
3.4.
According to Comm. "A" 3660.
1.11.2.1. "A" 2188 2.1. 1° S/Comm. "A" 2962 -pt.
2.1.-, 3660, 4543 and
4654.
1.11.2.2. "A" 2188 2.1. 2° S/Comm. "A" 2962 -pt.
2.2.-, 3660 and 4543.
1.11.2.3. "A" 2188 2.3. S/Comm. "A" 2962 -pt.
2.2.-, 3660, 4543 and
4654.
1.11.3. "A" 3660
1.11.4 "A" 4874 3.
1.11.5. 1° "A" 1199 I 5.3.2. According to Comm. "A" 3660.
1.11.5.1 "A" 1465 I 2.1.2. 2° According to Comm. "A" 3660.
1.11.5.2. "A" 3660
1.11.6.1. "A" 1199 I 5.3.2. According to Comm. "A" 3660.
1.11.6.2. "A" 2482 2. According to Comm. "A" 3660.
1.11.6.3. "A" 4874 4.
1.12.1.1. "A" 1653
"A" 1820
"A" 2061
I 3.1.1.1.
3.3.
1.1.1.
According to Comm. "A" 3485,
3527, 3660, 3682 -pt.
11.-, 3827 -pt. 9.- and
4032.
1.12.1.2. "A" 1465
"A" 1603
"A" 2275
I 2.1.1.
5.
2.
According to Comm. "A" 3660.
1.12.2. "A" 2188 1. According to Comm. "A" 3660
and 4543.
1.12.3. "A" 3660 According to Comm. "A" 4298
and 4331.
1.12.4 "A" 4874 5.
1.13.1. 1° "A" 1653 I 3.4.13.2.
2° "A" 3043
According to Comm. "A" 3660.
1.
1.13.2. "A" 1653 I 3.4.13.1. According to Comm. "A" 3660.

TIME DEPOSITS AND INVESTMENTS
ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
1.14.1. "A" 1653 I 3.4.13.3. 1° S/Comm. "A" 3660.
1.14.2. "A" 3043 S/Comm. "A" 3660.
1.14.3. 1° "A" 1653 I 3.4.13.3.1. S/Comm. "A" 3660.
1.14.3. 2° "A" 3043 S/Comm. "A" 3660.
1.14.4. "A" 1653 I 3.4.13.3. 1° S/Comm. "A" 3660.
1.14.5. "A" 3043 S/Comm. "A" 3660.
1.14.6. "A" 1653 I 3.4.13.3.4. S/Comm. "A" 3660.
1.15. "A" 1653 I 3.3.3.1. S/Comm. "A" 3660.
1.16.1. "A" 1653
"A" 1820
"A" 2064
I
I 3.3.3.2.
3.8.
1°
1° last.
S/Comm. "A" 3660.
1.16.2. "A" 1653
"A" 1820 I
I 3.3.3.2.
3.8.
2°
3°
S/Comm. "A" 3660.
1.16.3. "A" 2308 S/Comm. "A" 3660.
1.17.1.1. "A" 1653 I 3.4.3.1. S/Comm. "A" 3660.
1.17.1.2. "A" 1653 I 3.4.3.2. S/Comm. "A" 3660.
1.17.1.3. "A" 1653 I 3.4.3.3. S/Comm. "A" 3660.
1.17.1.4. "A" 2383 S/Comm. "A" 3660.
1.17.2. "A" 1653 I 3.4.9. S/Comm. "A" 3660.
1.
1.18. "A" 1653 I 3.4.11. S/Comm. "A" 3660.
2.1.1. "A" 2482 1.
2.1.2. "A" 3043
2.1.3. "A" 1199 I 5.7.
2.1.4. "A" 2482 1.A)3.
1.B)3.
1.C)3.
1.D)3.
2.1.5. "A" 1653 I 3.4.1.
3.4.2.
2.1.6. "A" 1820
"A" 2482
I 3.2
1.A)4.
1.B)4.
1.C)4.
1.D)2.
2° S/Comm. "A" 3293.
2.1.7. "A" 2482 1.A)6.
1.B)6.
1.C)6.
2.1.8.1. "A" 1653 I 3.4.13.2.
2.1.8.2. "A" 1653 I 3.4.13.1.
2.1.9. "A" 2482 1. 3°
2.1.10. "A" 2482 1. 2°
2.2.1. "A" 2482 1.A)1.
2.2.2. "A" 2482 1.A)2. 4°
2.2.3. "A" 2482 1.A)5.
2.3.1. "A" 2482 1.B)1. 1° S/Comm. "A" 4754.
2.3.2. "A" 2482 1.B)1. 2° S/Comm. "A" 4754.
2.3.3.1. "A" 2482
"A" 2482
1.B)2. 1°
4°
2.3.3.2. "A" 2482 1.B)2. 2° S/Comm. "A" 4754.
2.
2.3.4. "A" 2482 1.B)5.

TIME DEPOSITS AND INVESTMENTS
ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
3.5.1. "A" 1199
"A" 1820 I
I 6.3.
2.6.
According to Comm. "A"
2807, pt 6 - 1° and 2° para., "A" 3270 and "A" 4874.
3.5.2. "A" 2807 6. 3°
3.5.3.1. "A" 2807 6. 5°
3.5.3.2. "A" 2807 6. 4°
3.6.1. "A" 1199 I 5.3.1.
3.6.2. "A" 1199 I 5.3.2.
3.6.3. "A" 1199 I 5.3.3.
3.6.4. "A" 3043
3.6.5. "A" 1199 I 5.3.4.
3.6.6. "A" 1199 I 5.3.4.1.
3.6.7. "A" 627 1.
3.7. "A" 1199 I 5.1.
3.7.1. "A" 1199 I 5.1.1.
3.7.2. "A" 1199 I 5.1.2
3.7.3. "A" 1199 I 5.1.3.
3.8.1. "A" 1199 I 5.2.1. According to Comm. "A"
3043.
3.8.2. "A" 1199 I 5.2.2. According to Comm. "A"
3043 and "A" 4809.
3.
3.9. "B" 6572
4.1. "A" 4360 1.
4.2. "A" 4360 1.
4.3. "A" 4360 1.
4.4. "A" 4360 1.
4.5. "A" 4360 1.
4.6. "A" 4360 1.
4.7. "A" 4360 1.
4.8. "A" 4360 1.
4.
4.9. "A" 4360 1.

The additional contribution resulting from the application of the aforementioned factors shall not exceed the normal contribution by more than once.

4. Integration of contributions.
   Normal, additional, and advance contributions shall be debited from the current accounts of the entities opened at the Central Bank of the Argentine Republic no later than the 12th day of the month to which they correspond. In the event that updated information is not available to establish the relevant calculation base, the amount shall be determined based on the last available data, increasing the obtained base by 10%.

5. Scope of the guarantee.
   5.1. Deposits covered.
   The coverage offered by the system shall cover deposits in pesos and foreign currency constituted in participating entities in the form of:
   5.1.1. Current account.
   5.1.2. Savings account.
   5.1.3. Time deposit.
   5.1.4. Payment of remuneration and special deposits.
   5.1.5. Time investments.
   5.1.6. Immobilized balances arising from the preceding concepts.

5.2. Exclusions.
5.2.1. Transferable time deposits whose ownership has been acquired by endorsement, even if the last endorsee is the original depositor.
5.2.2. Deposits that offer incentives or remuneration different from the interest rate and, where applicable, the amount accrued by applying the "Reference Stabilization Coefficient" (CER), regardless of the denomination or modality they adopt (insurance, lotteries, tourism, provision of services, etc.).
5.2.3. Deposits in which interest rates higher than the reference rates are agreed upon, which are periodically disseminated by the Central Bank of the Argentine Republic through "B" Communications, determined by adding two percentage points annually to the moving average of the last five banking business days of the passive interest rates, which for time deposits and current account balances (current account and savings account) up to $ 100,000 (or its equivalent in other currencies) arise from the survey conducted by the Central Bank of the Argentine Republic.

CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 5th COMMUNICATION "A" 4874 Validity:
19/11/2008

5.2.4. Deposits of financial entities with other intermediaries, including time deposit certificates acquired through secondary negotiation.
5.2.5. Deposits made by persons directly or indirectly linked to the entity according to the guidelines defined in point 4.2 of Chapter I of Circular OPRAC-1 and in point 1.1 of Annex I to Communication "A" 2140.
5.2.6. Time deposits of securities, acceptances, or guarantees.
5.2.7. Immobilized balances arising from excluded deposits and other operations.

5.3. Coverage. Amount and formalities.
5.3.1. The guarantee shall cover the return of the deposited capital, interest, updates -by the "Reference Stabilization Coefficient" (CER)- and exchange rate differences, as applicable, accrued up to the date of revocation of the authorization to operate or up to the date of suspension of the entity pursuant to Article 49 of the Organic Charter of the Central Bank of the Argentine Republic, if this measure had been adopted prior thereto, without exceeding -for these concepts- $ 30,000.
That date shall be considered for the determination of the Reference Stabilization Coefficient for the purposes of point 1.9 of Section 1 of the norms on "Time deposits and investments" for deposits with that clause and of the "Reference exchange rate" for the conversion to pesos of deposits in foreign currency, for the purpose of establishing the amount covered.

5.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit shall be $ 30,000, regardless of the number of holders, with the corresponding guarantee amount distributed proportionally among the holders.

5.3.3. The total guaranteed to a specific person, by accumulation of accounts and deposits covered, as provided previously, shall not exceed the limit of $ 30,000 established in Article 13 of Decree 540/95 (text according to Decree 1127/98).

5.3.4. SEDESA shall reject or postpone until judicial recognition the coverage request pursuant to this guarantee regime when the deposits do not meet the requirements established in the applicable norms or when the depositors do not exhibit titles that are materially and formally valid.
.

CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 6th COMMUNICATION "A" 4874 Validity:
19/11/2008

5.3.5. SEDESA may require, prior to the settlement of the guarantee, that depositors justify the origin and availability of the deposited funds through documents demonstrating their verisimilitude and/or that the effective receipt of funds by the entity has been verified for each operation covered by the regime.
In addition, the aforementioned company must file the relevant report when it detects irregularities or a criminal offense aimed at obtaining improper payment of the guarantee.

6. Instrumentation.
   In all documents representing passive operations (certificates, deposit slips, receipts issued by ATMs, account summaries, etc.), the following legend shall appear visibly and printed on the front or back:
   "Deposits in pesos and foreign currency are guaranteed up to $ 30,000. In operations in the name of two or more persons, the guarantee shall be prorated among their holders. In no case shall the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. "A" 2337 and their amendments and complements. Excluded are those captured at rates higher than the reference rate and those that have received incentives or special remuneration different from the interest rate." In the event that any of the situations mentioned last occur, the following legend shall be placed visibly on the front of the documents:
   "Deposit without guarantee"
   This last requirement shall not apply when operations are carried out through ATMs belonging to networks that enable the operational interconnection of financial entities. Entities shall keep the complete texts of Law 24.485, Decree 540/95 (updated text) and these norms available to their clients. In addition, in the advertising carried out by financial entities related to the deposits they capture, the existence of a limited guarantee for their return shall be stated. On boards where rates offered to clients are informed, the scope of the guarantee (type of deposits covered, percentage and amount guaranteed, exceptions, etc.) shall be transcribed visibly. While documents containing the legends in printed form are not available, the requirement may be met by placing stamps with the following expressions: "Deposits have a limited guarantee for their return. Law 24.485, Decree 540/95 and norms on "Application of the deposit guarantee insurance system" issued by the Central Bank of the Argentine Republic" or "Deposit without guarantee", as appropriate.

CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 6th COMMUNICATION "A" 4874 Validity:
19/11/2008

CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
ORIGIN OF THE PROVISIONS INCLUDED
IN THE ORDERED TEXT OF THE NORMS ON
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM ORDERED TEXT ORIGIN OF THE NORM Point Paragraph. Comm. Annex Point Paragraph Observations

1. "A" 2337 I 1. 1° and 2°
   1° "A" 2337 I 2. 1° S/Dec. 1292/96, Comm. "A"
   280, "A" 3358, "A" 4206 and "A"

2° "A" 2337 I 2. 2° S/Dec. 1292/96.
3. 1° "A" 2337 I 3. 1°
3.1. "A" 2337 I 3.1.
3.2. "A" 2337 I 3.2.
3.3. "A" 2337 I 3.3.
3.3.1. "A" 2337 I 3.3.1.
3.3.2. "A" 2337 I 3.3.2.
3. 2° "A" 2337 I 3. 2°
1º "A" 2337 I 4. 3° and 2° S/Comm. "B" 5806, 8th paragraph and "A" 3068.
4.
2° "A" 2337 I 4. 4°
5. "A" 2337 I 6.
5.1. 1° "A" 2337 I 6.1. 1°
5.1.1. "A" 2337 I 6.1. i)
5.1.2. "A" 2337 I 6.1. ii)
5.1.3. "A" 2337 I 6.1. iii)
5.1.4. "A" 2337 I 6.1. iv)
5.1.5. "A" 2482 1. 2°
5.1.6. "B" 5806 3° S/Comm. "A" 2807.
5.2. "A" 2337 I 6.4. S/Comm. "A" 2399.
5.2.1. "A" 2337 I 6.4.1. S/Comm. "A" 2399.
5.2.2. "A" 2337 I 6.4.2. S/Comm. "A" 2399, "A" 4681 and
"A" 4874.
5.2.3. "A" 2337 I 6.3. S/Comm. "A" 2777 and "A" 3358.
5.2.4. "A" 2337 IV S/Dec. 540/95, art. 12, item c).
5.2.5. "A" 2337 I 6.2.
5.2.6. "A" 2337 IV S/Dec. 540/95, art. 12, item c).
5.2.7. "A" 2807 5.2.7.
5.3. "A" 2337 I 6. S/Dec. 540/95.
5.3.1. "A" 2337 I 6.5. S/Comm. "A" 4681.
5.3.2. "A" 2337 I 6.7. 1° S/Dec. 540/95.
5.3.3. "A" 2337 I 6.7. 2° S/Dec. 540/95.
5.3.4. "A" 2337 I 6.8. S/Dec. 540/95.
5.3.5. "A" 2337 I 6.9.
6. "A" 2337 I 7. S/Comm. "A" 2399, 3270 and
4874, and Decree 1292/96.
7. 1° "A" 2337 II 1. S/Comm. "A" 2561.
7.1. "A" 2337 II 1. S/Comm. "A" 2561 and "A" 4040.
7.2. "A" 2337 II 2. S/Comm. "A" 2561.
8. "A" 2807 II and III
8.1. "A" 2807 II S/Law 25.089.
8.2. "A" 2807 III S/Dec. 1292/99 and "A" 4206.

MINIMUM CAPITAL OF FINANCIAL ENTITIES
CENTRAL BANK OF THE ARGENTINE REPUBLIC (B.C.R.A.)
Section 5. Minimum capital for interest rate risk.
5.6.2. Variable rate operations based on external indicator.
Variable rate operations based on an external origin indicator (for example, LIBOR) shall be given the same treatment as those contracted at a fixed rate. Liabilities contemplated in item iii) of point 1.11.2.1 of Section 1 of the norms on "Time deposits and investments" shall also receive this treatment, in cases where the freely agreed fixed rate is compared with a rate based on an external indicator.

5.6.3. Variable rate operations based on local indicator.
5.6.3.1. Liabilities.
i) In the case of variable rate liabilities referred to a local origin indicator (for example, passive rate surveys), not updateable by "CER", only cash flows extending until the period in which, according to contract forecasts, the first interest rate adjustment is due shall be taken into account, adding to that period the remaining amounts to mature from that moment on. Liabilities contemplated in item iii) of point 1.11.2.1 of Section 1 of the norms on "Time deposits and investments" shall also receive this treatment, in cases where the agreed fixed rate is compared with a variable rate based on a local indicator. ii) Rediscounts and advances under the terms of items b), c) and f) of Article 17 of its Organic Charter, updateable by "CER" as referred to in the resolution disseminated by Communication "A" 3941, shall be charged in their entirety to the time band corresponding to the first month. Other liabilities updateable by "CER" shall also receive this treatment, when the residual term is up to one year. iii) Liabilities updateable by "CER" not included in the preceding section ii) shall be charged according to the procedure provided in the fourth paragraph of item a), section iii) of point 5.6.3.2.

5.6.3.2. Assets.
i) The treatment established for variable rate liabilities based on a local indicator shall be given to financings, including those documented through public securities, to the non-financial national, provincial, and municipal public sector, always that in the latter two cases they have the guarantee of the allocation of resources from the federal or provincial tax sharing or others whose distribution adjusts to regimes similar to Law 23.548 and complementary ones and with the pertinent intervention of the Ministry of Economy and Production of the Nation and the Central Bank of the Argentine Republic. Financings that have the guarantee of royalties for hydrocarbons, energy, or similar shall be treated in the same way. Monetary regulation instruments of the Central Bank of the Argentine Republic issued at a variable rate referred to a local indicator, not updateable by "CER", shall also receive this treatment.

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT ORIGIN OF THE NORM
Section Point Paragraph Comm.
Chap./
Annex
Point Paragraph
Observations
5.
5.6. "A" 2922 I According to Comm. "B" 6523 and "A" 4172.
Point 5.6.4.5., 3274, 3959, 4180
4543 and 4874 and "B" 9186.
6.1. and
6.2.
"A" 2461 unique I and II According to Comm. "A" 4172 and 4741.
6.3. and
6.4.
"A" 2461 unique I and II According to Comm. "A" 3959 and 4172.
6.5. "A" 2461 unique I and II According to Comm. "A" 2736, 2768, 2948,
3959, 4172 and "B" 9074. The point
6.5.2. includes interpretative clarification.
6.6. "A" 2461 unique III According to Comm. "A" 3161 and 4172.
6.7. "A" 2461 unique VI According to Comm. "A" 4172.
6.
6.8. "A" 2461 unique VII According to Comm. "A" 4172.
7.1. "A" 414
LISOL-1
VI 3.1. 1º According to Comm. "A" 2279, 2453, 2793, 2914, 3039 and 4172.
7.2.1. "A" 414
LISOL-1
VI 3.1.1. According to Comm. "A" 2223, 2227, 4296, (pt. 2.), 4576 (pt. 1.) and 4665.
7.2.2. "A" 4576 2. According to Comm. "A" 4591 (pts. 2.,3.,
4. and 5.), 4665 -the point 7.2.2.5. includes interpretative clarification- and
4782.
7.2.3. "A" 414
LISOL-1
VI 3.1.2. According to Comm. "A" 2223, 2768, 2948, 4172, 4576 (pt. 3.), 4665, 4702 and "B" 9074.
7.2.4. 1º "A" 414
LISOL-1
VI 3.1.2.2. According to Comm. "A" 2264, 4172, 4576 (pt. 4.) and 4782.
7.2.4.1. and
7.2.4.2.
"A" 414
LISOL-1
VI 3.1.2.2. According to Comm. "A" 2264, 4172, 4576 (pts. 5. and 6.) and 4782.
7.2.4.3. and
7.2.4.4.
"A" 414
LISOL-1
VI 3.1.2.2. According to Comm. "A" 2264, 4172 and "A"
4782. In the second paragraph of
point 7.2.4.3. it incorporates interpretative clarification.
7.2.4.5. "A" 2264 2. According to Comm. "A" 4172 and 4576 (pt. 8.).
7.2.4.6. "A" 414
LISOL-1
VI 3.1.2.2. According to Comm. "A" 2264, 4172 and 4665.
7.2.5.1. "A" 2287 3.1. and
3.3.
According to Comm. "A" 2890 and 4172.
"A" 2287 3. last According to Comm. "A" 4172.
7.2.5.2. 1º "A" 2497 1. According to Comm. "A" 3621 and 4172.
last "A" 2263 2. According to Comm. "A" 4172.
1º and last
"A" 2287 3.2. According to Comm. "A" 4172.
7.
7.2.5.3.
2º "A" 2474 Procedure norms on requirement and integration of minimum capital (pt. 3.2.7). Modified by Comm. "A" 4172.