2007 – Year of Road Safety

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 4702 30/08/2007

TO FINANCIAL ENTITIES:

Ref.: Circular

• CONAU 1‑821
• LISOL 1‑475
• OPRAC 1‑606

National public securities and debt instruments of the Central Bank of the Argentine Republic. Holdings in “Available for Sale”. Minimum capital of financial entities. Investment accounts. Distribution of results. Modifications

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We address you to inform that this Institution has adopted the following resolution:

1. Establish that holdings of national public securities and debt instruments issued by the Central Bank of the Argentine Republic may be classified in the category called “Available for Sale”.

   The holdings that financial entities maintain in this category shall be subject to the following provisions:

   1. Species covered. National public securities and debt instruments issued by the Central Bank expressly included in the volatility list published monthly by this Institution for the purpose of calculating the minimum capital requirement for market risk.

   2. Adoption of the decision. The decision to incorporate debt‑instrument holdings into this category must be adopted by the Board of Directors or equivalent authority of the entity before such incorporation when the decision involves species that have published volatility by this Institution. For species that have not had published volatility, once the entity becomes aware of their inclusion in the volatility list and opts to register them among the holdings available for sale, the Board or equivalent authority must validate that decision within 30 calendar days from the date of incorporation.

   3. Passive pass‑through operations. It will be permitted that the holdings be applied to passive pass‑through operations, provided the counter‑party is:

      • another financial entity of the country;
      • a foreign bank that has an international rating of “A” or higher granted by any of the international rating agencies admitted according to the “Evaluation of financial entities” rules;
      • the Central Bank of the Argentine Republic.

   4. Accounting valuation criterion. Holdings shall be recorded at quotation value. The methodology must be disclosed in a note to the quarterly and annual financial statements and its potential effect on the income statement must be quantified.

   5. Accounting presentation.

      5.1 Holdings. Holdings available for sale shall be presented separately, by the currency of issuance of the instruments, in the accounts enabled for that purpose. The (negative or positive) difference, if any, between the acquisition cost of these holdings and the quotation value shall be presented in equity accounts to be created for that purpose, named:

      • "Unrealized valuation difference of holdings of national public securities available for sale",
      • "Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale",
      • "Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale",

      as applicable.

      Interest accrued during the period, applying the internal rate of return (IRR), shall be charged to the results of each period with a counterpart in the aforementioned equity accounts.

      For species that have not had published volatility, once the entity has opted to include them among the holdings available for sale after becoming aware of their inclusion in the volatility list, the cost value for the purpose of that comparison shall be the last accounting value of the species when they were recorded as holdings without quotation.

      The internal rate of return to be used shall be the one that results from the discount rate that equates the present value of the instrument’s cash‑flow to its market value on the incorporation date. Accordingly, for the same species, as many IRRs must be used as there are incorporation dates.

      Moreover, for species with variable‑rate returns, the IRR must be adjusted according to the variation that may be recorded in the variable component of that rate.

      5.2 Forward purchases linked to passive pass‑through operations. They shall be accounted for separately, maintaining the valuation criterion established in points 4 and 5.1 of these provisions, in accounts specifically enabled for that purpose.

   6. Disassociation of the holdings. Disassociation from the present methodology shall be admitted only in the following cases:

      • 6.1 Sale,
      • 6.2 Collection of amortization services and/or capital rent corresponding, or
      • 6.3 When the holding ceases to have published volatility by this Institution, in which case it shall be recorded as holdings without quotation.

      In the situations described in points 6.1 and 6.2, the corresponding unrealized valuation difference must be disassociated with a counterpart in results.

      In the situation described in point 6.3, the value of such holdings shall increase according to the accrued interest using the internal rate of return. The amounts recorded in the accounts "Unrealized valuation difference of holdings of national public securities available for sale", "Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale" and "Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale" shall be disassociated during the remaining term of the debt instrument with a counterpart in that interest accrual.

   7. Non‑compliance. Disassociation of holdings recorded in this category to destinations not admitted (as provided in paragraph 6) shall determine, as the sole consequence, that the entity must cease using the present methodology for a period of twelve months and immediately record the pertinent results for the totality of the species covered.

2. Admit that, until 31 Aug 2007, financial entities may allocate – in whole or in part – to the “Available for Sale” category the holdings of admitted assets recorded at the date of issuance of this communication, which for August 2007 have published volatility by this Institution (Communication “B” 9046), considering as incorporation value their accounting valuation on 31 Jul 2007 (market value or cost increased by the IRR, as appropriate), or their acquisition cost if purchased later, and charging the unrealized valuation difference of the species covered recorded between 31 Jul 2007 or its incorporation date and 31 Aug 2007 to the respective unrealized valuation difference accounts of equity.

3. Incorporate in Section 2 of the rules on “Distribution of results” the following point:

   "2.1.6. The algebraic sum of the balances of the accounts "Unrealized valuation difference of holdings of national public securities available for sale", "Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale" and "Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale", when it results in a consolidated net debtor balance."

4. Replace point 3.1.2 of Section 3 of the rules on “Distribution of results” with the following:

   "3.1.2. To determine the existence of sufficient balance to proceed with payment, the general procedure provided in points 2.1 and 2.2 concerning the determination of distribution capacity shall be used, with the following exceptions:

   3.1.2.1. Amounts corresponding to the concepts in points 2.1.1 and 2.1.2 shall not be deducted from unassigned results, nor considered for the recalculation of minimum capital positions (point 2.2).

   3.1.2.2. The amount corresponding to the concept contemplated in point 2.1.5 shall not be deducted from unassigned results (point 2.1), nor considered as a deduction in the computable patrimonial responsibility (term “Cd” of the expression contained in point 7.1 of Section 7 of the “Minimum capital of financial entities” rules) for the recalculation of minimum capital positions (point 2.2).

   3.1.2.3. The amount corresponding to the concept contemplated in point 2.1.6 shall not be deducted from unassigned results (point 2.1), nor considered in the computable patrimonial responsibility for the recalculation of minimum capital positions (point 2.2).

   3.1.2.4. The values of coefficients "alpha1" and "alpha2" shall be used for the recalculation of minimum capital positions established in the current transitional provisions on the matter (points 9.5 and 9.6 of Section 9 of the “Minimum capital of financial entities” rules)."

5. Incorporate in Section 7 of the rules on “Minimum capital of financial entities” the following point:

   "7.2.3.7. Creditor or debtor balances recorded in the accounts named "Unrealized valuation difference of holdings of national public securities available for sale", "Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale" and "Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale", respectively (+ / -)."

6. Replace in point 3.1 of Section 3 of the rules on “Minimum capital of financial entities” the following:

   "Ci: holdings in “Investment Accounts” of securities representing country debt received by financial entities due to the compensation provided in articles 28 and 29 of Decree 905/02, including the position for forward purchases of securities traded in admitted pass‑through operations."

7. Replace point 2 of the resolution disseminated by Communication “A” 4698 with the following:

   "2. Admit that, until 31 Aug 2007, financial entities may allocate – in whole or in part – to the “Investment Accounts” category the holdings of Central Bank debt instruments recorded on 24 Aug 2007, which for August 2007 have published volatility by this Institution (Communication “B” 9046), considering as incorporation value their accounting valuation on 31 Jul 2007 (market value or cost increased by the IRR, as appropriate), or their acquisition cost if purchased later."

8. Replace Section 5 of the rules on “Investment Accounts” with the following:

   "Non‑observance of the maintenance period for Central Bank debt instruments shall determine, as the sole consequence, that the entity must permanently cease using the present methodology with respect to the species covered in point 1.1.2, recording the species in this category at their market value or at their accounting value at that moment, depending on whether they are or are not included in the volatility list published monthly by this Institution."

We clarify that the term “holdings” used in this communication includes both actual holdings and forward purchases through admitted pass‑through operations.

We also remind you that this Institution grants the same treatment to the “Guaranteed Bonds” issued by the Provincial Development Trust Fund (BOGAR 2018 and BOGAR 2020) as provided for national public securities.

Finally, we enclose the pages that, in replacement of those previously provided, must replace the texts ordered in the rules on “Minimum capital of financial entities”, “Distribution of results” and “Investment Accounts”. We also remind you that on the Institution’s website www.bcra.gov.ar, accessing “normativa” ("ordered texts"), you will find the modifications with texts highlighted in special characters (strikethrough and bold).

Respectfully,

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli – Manager of Emission of Rules

José I. Rutman – Deputy General Manager of Rules

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ANNEX

3.1. Requirement

The requirement shall be determined by applying the following expression:

```
Cer = k * [a * Ais + c * (Ci + Fspn) + r * (Vrf + Vrani)] + INC + IP ```

Where:

• k: Factor linked to the rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial and Currency Entities, using the following scale:

Rating Assigned	Value of “k”
1	0.970
2	1.000
3	1.050
4	1.100
5	1.150

If no rating has been communicated, the value of “k” shall be 1. The latest reported rating shall be used for the calculation of the requirement that must be integrated in the third month following the notification.

• a = 0.10

• Ais: Fixed assets.

• c = 0.08

• Ci: holdings in “Investment Accounts” of securities representing country debt received by financial entities due to the compensation provided in articles 28 and 29 of Decree 905/02, including the position for forward purchases of securities traded in admitted pass‑through operations.

• Fspn: financing to the non‑financial national public sector.

  It includes facilities for any purpose, including those granted to companies not incorporated as corporations and to corporations when they have an explicit guarantee from the National Government, holdings of public securities not subject to minimum capital requirement for market risk, and the assumption of contingent commitments. It also covers financing to provincial, municipal and City of Buenos Aires governments and their companies – regardless of legal nature – including those instrumented through securities issued by them that have an explicit guarantee from the National Government or resources from federal tax co‑participation or the Federal Housing System (Law 24.464), via direct or indirect assignment of the corresponding rights and with the pertinent intervention of the Ministry of Economy and Production of the Nation.

• r = 0.08

MINIMUM CAPITAL OF FINANCIAL ENTITIES – B.C.R.A.

Section 3. Minimum capital for credit risk.

Version: 7a. COMMUNICATION "A" 4702

Validity:

• 7.2.3.5. 100 % of losses not reflected in the financial statements, corresponding to the quantification of facts and circumstances reported by the auditor, in accordance with the Minimum Standards on External Audits regarding reports with the results of limited reviews of the financial statements, at the close of each quarter (‑).
• 7.2.3.6. Provisions for credit risk on the portfolio corresponding to debtors classified as “in normal situation” or “normal compliance” and financing covered with preferred “A” guarantees (only 50 % of the minimum required amount) (+).
• 7.2.3.7. Creditor or debtor balances recorded in the accounts named "Unrealized valuation difference of holdings of national public securities available for sale", "Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale" and "Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale", respectively (+/‑).

For the purpose of computing 100 % of the results recorded up to the last quarterly or annual balance, the respective financial statement with the auditor’s report must be presented by the date the monthly balance becomes mandatory.

7.2.4. Subordinated debt computable

Debt securities or other obligations of the entity, contractually subordinated to other liabilities, which are admitted to be computed for determining computable patrimonial responsibility, must have authorizations both for public offering and for quotation on domestic or foreign self‑regulated markets (for issuances after 30 Sep 2006) and must meet the following requirements:

1. Issuance conditions.

   • i) The weighted‑average life at issuance must not be less than 5 years. This period shall be calculated by dividing by 365 the sum of the days between the issuance date and the maturity date of each capital amortization service, multiplied by the proportion each service represents of the total instrument, considered at nominal value. If the interest rates foreseen in the issuance are, at the discretion of the Superintendence of Financial and Currency Entities, markedly higher than those usually established in similar issuances, the duration method shall be used to determine the average term.
   • The present value of future cash‑flows discounted at the internal rate of return shall be considered for this purpose.
   • ii) Early redemption, if foreseen, may only be exercised at the debtor’s option provided:
     • a) Prior authorization from the Superintendence of Financial and Currency Entities is obtained, and
     • b) The computable patrimonial responsibility after redemption remains equal to or greater than the minimum capital requirement.
   • iii) Conversion into shares of the issuer, if foreseen, may be carried out according to the contractual terms, under any of the following possibilities:
     • a) only at the debtor’s option,
     • b) only at the creditor’s option,
     • c) at the option of either party, indistinctly.
   • iv) The instrument must not contain clauses that declare the obligation due in case of default on amortization or interest payments, or any other reason, except bankruptcy.
   • v) In the event of the entity’s bankruptcy, after satisfying all debts to non‑subordinated creditors, the holders of subordinated debt shall have priority only over shareholders (any class of shares), expressly waiving any general or special privilege. Distribution among all subordinated debts shall be proportional to the verified liabilities.
   • vi) The instrument may have an interest coupon linked to the financial entity’s results.

2. Computable amount. Starting from the beginning of each of the last five years of life of each issuance, the computable amount shall be reduced by 20 % of the nominal value issued net of amortizations actually performed. Under no circumstances may the computable amount at the start of each of those periods exceed the result of applying cumulatively that percentage to the residual obligation at the end of each year, according to the capital amortization schedule.

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SOURCE OF THE DISPOSITIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM CAPITAL OF FINANCIAL ENTITIES

Section	Point	Paragraph	Comment	Cap./Annex	Point	Paragraph	Observations
1.1.	“A” 2136	1.	First modified by Comm. “A” 2859 and “A” 3558.
1.2.1.	“A” 2237 b)	Modified by Comm. “A” 2923 (point 3.1.2.3. of Section 3.) and 4702.
1.2.2.	“A” 2923	3.	3.2.2.
1.2.3.	“A” 2923	3.	3.3.
1.3.	“A” 2136	2.	According to Comm. “A” 2223.
1.4.1.	“A” 2136	3.1.	“A” 3171 According to Comm. “A” 3959.
i)	“A” 2136	3.2.	Second according to Comm. “A” 3959.
ii)	“A” 2136	3.2.4.	Modified by Comm. “A” 2241.
1.4.2.1.	“A” 414 LISOL‑1	VI 6.1.	1.
1.4.2.2.	“A” 3171	According to Comm. “A” 3959.
2.1.	“A” 2241 CREFI‑2	I 1.3.1.	According to Comm. “A” 4368.
2.2.	“A” 2650	2.	According to Comm. “A” 3128, “A” 4238 and “A” 4368.
2.3.1.	“A” 2237 a)	Modified by Comm. “A” 2923 (point 3.1.1.2. of Section 3.).
2.3.2.	“A” 2923	3.	3.2.1.
2.3.3.	“A” 2923	3.	3.3.
3.1.	“A” 2136	1.	Modified by Comm. “A” 2541, 2736, 2938, 3039, 3307, 3959, 4598 and 4702. This last one incorporates clarification.
3.2.	“A” 2136 I	According to Comm. “A” 2541, annex, criteria d), 2nd paragraph and according to Comm. “A” 3040.
3.3.1.	“A” 2136 I	According to Comm. “A” 2541, annex, criteria d), 2nd paragraph.
3.3.2.	“A” 2287	5.
3.3.3.	“A” 2412	In the second paragraph of point 3.3.3.3. incorporates a criterion not previously disclosed generally. According to Comm. “A” 3959.
3.4.1.	“A” 2768	2.	Modified by Comm. “A” 2948, “A” 3911, “A” 3925, “A” 3959 and “A” 4180.
3.4.2.	“A” 2227	unique 5.2.2. 3rd
3.5.1.	“A” 2136	1.1.

MINIMUM CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT OF ORIGIN RULE

Section	Point	Paragraph	Comm.	Cap./Annex	Point	Paragraph	Observations
5.	5.6. “A” 2922 I Modified by Comm. “B” 6523 and “A” 4172. Point 5.6.4.5. modified by Comm. “A” 3274, “A” 3959, “A” 4180 and “A” 4543.
6.1. and 6.2.	“A” 2461 Single I and II. According to Comm. “A” 4172.
6.3. and 6.4.	“A” 2461 Single I and II. According to Comm. “A” 3959 and “A” 4172.
6.5.	“A” 2461 Single I and II. Modified by Comm. “A” 2736, 2768, 2948, 3959 and 4172. Point 6.5.2. includes interpretative clarification.
6.6.	“A” 2461 Single III. According to Comm. “A” 3161 and “A” 4172.
6.7.	“A” 2461 Single VI. According to Comm. “A” 4172.
6.8.	“A” 2461 Single VII. According to Comm. “A” 4172.
7.1.	“A” 414 LISOL‑1 VI 3.1. 1st According to Comm. “A” 2279 (modified by Comm. “A” 2453, 2793, 2914, 3039 and 4172).
7.2.1.	“A” 414 LISOL‑1 VI 3.1.1. According to Comm. “A” 2223 (modified by Comm. “A” 2227 and “A” 4296, point 2.), 4576 (point 1.) and 4665.
7.2.2.	“A” 4576 2. According to Comm. “A” 4591 (points 2.,3.,4. and 5.) and 4665 – point 7.2.2.5. includes interpretative clarification.
7.2.3.	“A” 414 LISOL‑1 VI 3.1.2. According to Comm. “A” 2223. Modified by Comm. “A” 2768, 2948, 4172, 4576 (point 3.), 4665 and 4702.
7.2.4.	1st “A” 414 LISOL‑1 VI 3.1.2.2. According to Comm. “A” 2264, 4172 and 4576 (point 4.).
7.2.4.1.	–
7.2.4.2.	“A” 414 LISOL‑1 VI 3.1.2.2. According to Comm. “A” 2264, 4172 and 4576 (points 5. and 6.).
7.2.4.3.	–
7.2.4.4.	“A” 414 LISOL‑1 VI 3.1.2.2. According to Comm. “A” 2264 and 4172. In the second paragraph of point 7.2.4.3. incorporates interpretative clarification.
7.2.4.5.	“A” 2264 2. According to Comm. “A” 4172 and 4576 (point 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.	1st “A” 2497 1. According to Comm. “A” 3621 and 4172. last “A” 2263 2. According to Comm. “A” 4172. 1st and last “A” 2287 3.2. According to Comm. “A” 4172.
7.2.5.3.	2nd “A” 2474 Procedure rules on the requirement and integration of minimum capitals (point 3.2.7.). Modified by Comm. “A” 4172.

2.1. Determination of Distributable Result

Entities not covered by any of the situations listed in point 1.1 may distribute results up to the positive amount that results from deducting, on an extracontable basis, from the year‑end balances recorded in account “Unassigned Results” (code 450000), the amounts of legal and statutory reserves – whose constitution is required – and then the amounts corresponding to the concepts (recorded on the same date) detailed below:

1. 2.1.1. The balances for the activation of differences resulting from payments made in compliance with judicial measures arising from cases that question the applicable regulations on “peso‑denominated” deposits, regardless of whether new long‑term loans are granted, as referred to in the resolution disseminated by Communication “A” 4439.
2. 2.1.2. The positive difference between the book value and the market quotation value, in the case that the financial entity records public securities and/or Central Bank debt instruments not valued at market prices.
   • For public debt instruments that have no market quotation, the lower amount resulting from comparing the technical value and the present value (discounting the cash flows of the mentioned instruments at the interest rates of the month closing the fiscal year to which the holdings correspond) shall be used, taking into account the “TM” rate that this Institution will publish monthly for this purpose.
   • The same criteria shall also apply for determining valuation differences in participation certificates (or debt titles) of financial trusts, proportionally, when their underlying assets consist of the aforementioned instruments not valued at market price.
3. 2.1.3. Valuation adjustments of assets notified by the Superintendency of Financial and Currency Entities – whether accepted by the entity or not – that are pending registration and/or those indicated by the external audit that have not been recorded in the accounts.
4. 2.1.4. Individual asset‑valuation franchises granted by the Superintendency of Financial and Currency Entities, including adjustments derived from not considering the agreed‑upon adjustment plans.
5. 2.1.5. Balances for the activation of the difference that exists between the peso‑equivalent value of judicial deposits considered in the original currency of the imposition and the book value of those deposits constituted in foreign currency that, as of 5.1.02, were affected by Law 25.561 and Decree 214/02.
6. 2.1.6. The algebraic sum of the balances of the accounts “Unrealized valuation difference of holdings of national public securities available for sale”, “Unrealized valuation difference of holdings of Letters issued by the B.C.R.A. available for sale” and “Unrealized valuation difference of holdings of Notes issued by the B.C.R.A. available for sale”, when a net debtor consolidated balance results.

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DISTRIBUTION OF RESULTS – B.C.R.A.

Section 2. General Procedure

Version: 4a. COMMUNICATION “A” 4702

Effective Date: (not specified in the excerpt)

3.1. Conditions for Application – Determination of Distributable Result and Verification of Liquidity and Solvency

For the purpose of paying the financial services corresponding to the issuance of debt‑representative instruments referred to in point 7.2.2 of Section 7 of the “Minimum Capital of Financial Entities” rules, the specific procedure detailed below shall be used:

1. 3.1.1. The issuance of such debt instruments must obtain prior approval from the shareholders’ meeting or equivalent corporate body, which must issue a resolution on the issuance and its conditions. In those issuance conditions and in any offers made, the requirements that condition, under this regime, the payment of financial services must be explicitly stated, referencing the applicable Central Bank provisions.
   • When the instruments are negotiable bonds, the requirement is also considered fulfilled if the Ordinary General Assembly or equivalent corporate body authorizes a program for the generic issuance of debt‑representative instruments, delegating to its Board of Directors the determination of the specific terms and conditions, in accordance with article 9 of Law No 23.576, without prejudice to the analyses that the National Securities Commission must carry out concerning legality and the public offering regime, as the authority applying Law No 17.811.
2. 3.1.2. To determine whether sufficient balance exists to proceed with payment, the general‑procedure method set out in points 2.1 and 2.2 (determination of distributable result capacity) shall be used, with the following exceptions:
   • 3.1.2.1. Amounts corresponding to the concepts listed in points 2.1.1 and 2.1.2 shall not be deducted from unassigned results, nor considered for the recalculation of minimum‑capital positions (point 2.2).
   • 3.1.2.2. The amount corresponding to the concept in point 2.1.5 shall not be deducted from unassigned results (point 2.1) nor considered as a deduction in the computable patrimonial responsibility (term “Cd” in point 7.1 of Section 7 of the “Minimum Capital of Financial Entities” rules) for the recalculation of minimum‑capital positions (point 2.2).
   • 3.1.2.3. The amount corresponding to the concept in point 2.1.6 shall not be deducted from unassigned results (point 2.1) nor considered in the computable patrimonial responsibility for the recalculation of minimum‑capital positions (point 2.2).
   • 3.1.2.4. The values of coefficients "alfa1" and "alfa2" shall be used for the recalculation of minimum‑capital positions established in the current transitional provisions (points 9.5 and 9.6 of Section 9 of the “Minimum Capital of Financial Entities” rules).

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DISTRIBUTION OF RESULTS – B.C.R.A.

Section 3. Specific Procedure

Version: 3a. COMMUNICATION “A” 4702

Effective Date: (not specified in the excerpt)

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B.C.R.A.

ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “DISTRIBUTION OF RESULTS”

ORDERED TEXT OF ORIGIN RULE

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph	Observations
1.1.	“A” 4589	1.
1.1.1.	“A” 4589	1.1.
1.1.2.	“A” 4589	1.2. According to Comm. “A” 4591 (point 6.).
1.1.3.	“A” 4589	1.3.
1.1.4.	“A” 4589	1.4.
2.1.	“A” 4589	2. According to Comm. “A” 4591 (point 6.).
2.1.1.	“A” 4589	2.1.
2.1.2.	1° “A” 4589	2.2. 1° According to Comm. “A” 4698.
2.1.2.	2° “A” 4589	2.2. 2° According to Comm. “A” 4591 (point 7.) and 4664.
2.1.2.	3° “A” 4589	2.2. 3°
2.1.3.	“A” 4589	2.3.
2.1.4.	“A” 4589	2.4.
2.1.5.	“A” 4686	3.
2.1.6.	“A” 4702	3.
2.2.	“A” 4589	3. According to Comm. “A” 4591 (point 8.).
2.2.1.	“A” 4589	3.1. According to Comm. “A” 4591 (point 8.).
2.2.2.	“A” 4589	3.2. According to Comm. “A” 4591 (point 8.).
2.2.3.	“A” 4589	3.3. iv) According to Comm. “A” 4591 (point 8.).
2.2.4.	“A” 4589	3.3. According to Comm. “A” 4591 (point 8.).
3.	“A” 4589	4.
3.1.	“A” 4591	1.
3.1.1.	“A” 4591	1. Incorporates the interpretative criterion of Comm. “C” 46841.
3.1.2.	“A” 4591	1. According to Comm. “A” 4686 and 4702.

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INVESTMENT ACCOUNTS – B.C.R.A.

Section 5. Non‑compliance

Failure to observe the maintenance deadline for Central Bank debt instruments shall result, as the sole consequence, in the entity having to cease permanently using the present methodology for the assets covered in point 1.1.2, and to record those assets at their market value or at their book value at that moment, depending on whether they are included in the volatility list published monthly by this Institution.

Version: 4a. COMMUNICATION “A” 4702

Effective Date: (not specified in the excerpt)

Section 7. Transitional Provisions

Until 31 August 2007, financial entities may allocate – in whole or in part – to this category the holdings of Central Bank of the Argentine Republic debt instruments recorded on 24 August 2007, which for August 2007 have volatility published by this Institution (Communication “B” 9046), considering as incorporation value their accounting valuation on 31 July 2007 (market value or cost increased by the internal rate of return, as appropriate), or their acquisition cost if purchased later.

Version: 2a. COMMUNICATION “A” 4702

Effective Date: (not specified in the excerpt)

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B.C.R.A.

ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “INVESTMENT ACCOUNTS”

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph	Observations
1.1.1.	“A” 2793 single	1. According to Comm. “A” 3039, 3857, 4084 and 4698.
1.1.2.	“A” 4698	1.
1.2.	“A” 4698	1.
1.3.	“A” 2793 single	1. According to Comm. “A” 3039, 3857, 4084 and 4698.
2.	“A” 2793 single	2. According to Comm. “A” 3039 and 4698.
3.1.1.	“A” 3785	According to Comm. “A” 4114 and 1st “A” 3039 According to Comm. “A” 3278 and 4698.
2nd “A” 2793 single	4. 2nd According to Comm. “A” 4698.
3.1.2.	3°a 5° “A” 4698	1.
3.2.	“A” 3039	According to Comm. “A” 3083 and 4698.
3.	“A” 2793 single	4. 3rd According to Comm. “A” 4698.
4.	“A” 4698	1.
5.	“A” 4698	1. According to Comm. “A” 4702.
6.	6.1. and 6.2. “A” 2793 single	3. According to Comm. “A” 4698.
7.	“A” 4698	2. According to Comm. “A” 4702.