Circular Monetary Regulations - REMON 1 - 83. Early Repayment of Credits Affected by the Special Loan Limit

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 276 17/01/83
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 -83. Early repayment of credits affected by the special loan limit

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

“1º- It is ordered that in loan contracts subject to a monetary correction clause (Circular REMON - 1 - 23 and complementary), provisions shall be included establishing that in cases of early repayment of the credits, the debtors shall bear the differences that may result between the adjustment paid according to the update index contractually fixed and that which would have arisen from the recalculation of the operation, from its origin, based on the Wholesale Price Index - General Level. The aforementioned provision shall apply with respect to extraordinary, partial, or total payments made during the first year of validity of the loans.

2º - Financial entities shall transfer in full to the Central Bank the amounts resulting from what is indicated in the previous point.”

We salute you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Germán R. Pampillo
Deputy Manager for Standards for
Financial Entities
Elías Salama
General Deputy Manager