Circular on Passive Operations - OPASI 2 - 9. Deposit Guarantee Regime. Update of Amounts

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN "A" 1313 18/01/89
TO FINANCIAL ENTITIES:
Ref.: CIRCULAR PASSIVE OPERATIONS - OPASI - 2-
9. Deposit Guarantee Regime. Update of Amounts

We address you to inform you that it has been resolved to update, with effect from 1.2.89, the amounts referred to in points 6.1.3., 6.1.4.2. and 6.1.5.2. of Chapter I of Circular OPASI-2.

For the purposes of making the guarantee effective for deposits covered by the regime, the following treatment will be applied:

1. For those constituted until 31.1.89, the coverage that was in force at the date of their constitution will apply.
2. For those constituted from 1.2.89 and balances in savings accounts and current accounts, the amounts in force from that date will apply, taking into account the coverage values disseminated by this Communication for the set of time deposits and savings accounts of the same holder, including those constituted on 31.1.89 still not matured.

Deposits constituted in special savings accounts on 31.1.89 will maintain the guarantee according to the substituted values until the 30-day term is fulfilled, during which, according to the regulations, withdrawals cannot be made.

The sheets corresponding to be incorporated into Circular OPASI-2 are attached, in replacement of those previously provided.

We salute you very attentively.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio
Manager of Standards for
Financial Entities
Eduardo G. Castro
Deputy General Manager

ANNEX: 2 sheets

B.C.R.A.
I. National currency deposits (continuation) OPASI - 2
6. Deposit Guarantee (regulation of article 56 of Law 21.526, modified by Law 22.051)
6.1. Scope.
6.1.1. Guaranteed deposits.
The following deposits in australs constituted in entities adhering to the regime are covered:
6.1.1.1. Current account deposits (including those made in commercial banks by mortgage and investment banks and non-banking financial entities to integrate the effective minimum), in common and special savings accounts and fixed-term deposits.
6.1.1.2. Special deposits whose incorporation into the regime is expressly stipulated by the Central Bank in each case, with adjustment to the regulations issued regarding the same.
6.1.1.3. Debit balances originating from the clearing of documents in localities where clearing chambers do not operate.
In the agreements related to such operations, a clause must be included by which the entities undertake to cancel the debit balance of the "Value Exchange" account before the next exchange session takes place, provided that no more restrictive conditions have been agreed upon regarding this matter. In the contrary case and/or in the event of violation of the aforementioned condition, the debit balances that accumulate subsequently on the uncanceled amount will be excluded from the guarantee regime.

6.1.1. Exceptions.
6.1.2.1. The following holders' deposits are not included in the regime:
6.1.2.1.1. Members of the administration and oversight bodies of the depository and, in private financial entities, natural and legal persons who have the decision-making power to form the social will.
6.1.2.1.2. Officials who have resolving powers in the operational, accounting, and control aspects of the entity, whose execution they are primarily responsible for according to what is stipulated by the statutes, the general assembly, the internal regulations, or the governing body.
Version Communication Date Pages
2nd. “A” 1229 (Circular OPASI-2-2-) 25-7-88 1

I. Depósitos en moneda nacional (continuación) OPASI - 2
6.1.2.1.3. Natural or legal persons economically linked, directly or indirectly, with any of the persons indicated in points 6.1.2.1.1. and 6.1.2.1.2.
For the purposes of determining that linkage, the provisions contained in point 4. of Chapter I of Circular OPRAC - 1 will be applied.
6.1.2.2. Deposits made by financial entities are also excluded from this guarantee regime when it is determined that the funds originate from the same entities or when, directly or indirectly, these have participated in the secondary negotiation of the instruments representing those deposits.
6.1.3. General Coverage.
The guarantee established for the return of capital and an equal proportion of the corresponding adjustments and accrued interest will be governed by the following rules:
6.1.3.1. Fixed-term deposits (excluding those contained in point 6.1.3.3.)
and in common and special savings accounts);
6. 1.3.1.1. 99% up to the sum of A 194,000 of imposed capital.
6.1.3.1.2. 75% on the excess of A 194,000 up to A 388,000 of imposed capital.
6.1.3.1.3. 50% on the excess of A 388,000 up to A 776,000 of imposed capital.
6.1.3.1.4. 1% on the excess of A 776,000 of imposed capital.
6.1.3.2. Current account deposits (except those included in point 6.1.3.4.):
6.1.3.2.1. 99% up to the sum of A 582,000 of imposed capital.
6.1.3.2.2. 1% on the excess of A 582,000 of imposed capital.
6.1.3.3. Transferable nominal fixed-term deposits, whose ownership has been acquired by way of endorsement, even if the last endorsee is the original depositor:
1% on the imposed capital.
Version Communication Date Pages
4th. “A” 1313 (Circular OPASI-2-91) 18.1.89 2

B.C.R.A.
I. National currency deposits (continuation) OPASI - 2
6.1.3.4. Debit balances referred to in point 6.1.1.3.:
100%.
6.1.4. Coverage regarding natural persons.
6.1.4.1. When dealing with natural persons, the guarantee will cover deposits made individually or collectively, plus their corresponding adjustments and accrued interest, as provided in point 6.1.4.2.
For the purposes of determining the coverage, the sums resulting from applying the provisions of said point 6.1.4.2. will be considered per person for the total of fixed-term and common and special savings accounts made in each entity. For the purposes of the guarantee, accounts in the name of 2 or more persons will be understood to have their holders as creditors in equal parts of the total deposit, its adjustments, and interest. In the case of current accounts, the guarantee as provided in point 6.1.4.2. will be applied to the total balance in favor of its holders, even if the account is opened in the name or order of more than one person.
6.1.4.2. The guarantee established for the return of capital and an equal proportion of its corresponding adjustments and accrued interest will be governed regarding natural persons according to the following rules:
6.1.4.2.1. Fixed-term deposits (excluding those provided in point 6.1.4.2.3.) and in common and special savings accounts:
6.1.4.2.1.1. 100% up to the sum of A 194,000 of imposed capital.
6.1.4.2.1.2. 75% on the excess of A 194,000 up to A 388,000 of imposed capital.
6.1.4.2.1.3. 50% on the excess of A 388,000 up to A 776,000 of imposed capital.
6.1.4.2.1.4. 1% on the excess of A 776,000 of imposed capital.
Version Communication Date Pages
4th. “A” 1313 (Circular OPASI-2-9) 18.1.89 3

I. National currency deposits (continuation) OPASI - 2
6.1.4.2.2. Current account deposits:
6.1.4.2.2.1. For the purposes of determining that linkage, the provisions contained in point 4. of Chapter I of Circular OPRAC - 1 will be applied.
6.1.4.2.2. 1% on the excess of A 582,000 of imposed capital.
6.1.4.2.3. Transferable nominal fixed-term deposits, whose ownership
has been acquired by way of endorsement, even if the last endorsee is the original depositor:
1% on the imposed capital.
6.1.5. Sworn Declaration.
6.1.5.1. To make the guarantee effective in the event of liquidation of a financial entity incorporated into the regime, the Central Bank will require depositors in common and special savings accounts and fixed-term deposits to present a sworn declaration, in which they declare themselves to be holders of deposits of that class in the entity, for the purpose of establishing the amounts to be returned according to what arises from applying the provisions contained in points 6.1.3. and 6.1.4.2., as applicable.
6.1.5.2. When the amount of the imposed balances for each holder exceeds A 194,000 or in any other circumstance that the Central Bank determines for the purposes of the guarantee, the sworn declaration mentioned in point 6.1.5.1. will be accompanied by the necessary documentation to prove the genuineness of the deposit operation.
6.2. Incorporation into the regime.
6.2.1. Consideration of requests.
It will be at the discretion of the Central Bank to approve requests for adherence to the regime.
6.2.2. New entities.
In cases of merger, transformation, and authorization of new entities, if opting for incorporation into the regime, the respective request will be considered simultaneously with the processing thereof.
6.2.3. Contribution.
The contribution by the adhering entities will be three percent by Version Communication Date Pages 4th. “A” 1313 (Circular OPASI-2-9) 18.1.89 4