Circular OPASI 2 - 136. Deposit Taking with Incentives. Modification to Deposit Guarantee Rules

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2399 15/12/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 136.
Deposit Taking with
Incentives. Modification to the rules on deposit guarantee

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

"- Replace points 6.4 and 7 of the "Norms of application and complementary" of the "Deposit Guarantee Insurance System" (Annex I to Communication "A" 2337), with the following:

"6.4. The following will be excluded from the guarantee:
6.4.1. transferable time deposits whose
ownership has been acquired by way of endorsement, even if the last endorsee is the original depositor.
6.4.2. deposits captured through systems
that offer incentives or additional stimuli to the agreed interest rate, regardless of the denomination or form they take (insurance, lotteries, tourism, provision of services, etc.)."

"7. Instrumentation.
In all documents representing passive operations (certificates, deposit slips, account summaries, etc.), the following legend must appear, in visible and printed form on the front or back of them:

"Deposits in pesos and in foreign currency are covered by a guarantee of $ 10,000. For time deposits of 90 days or more, the guarantee is $ 20,000. In operations in the name of two or more persons, the guarantee will be prorated among their holders. In no case, the total guarantee per person may exceed $ 20,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. "A" 2337 -its modifications and complementary provisions-. Deposits captured at rates higher than the reference rate and those that have had additional incentives or special stimuli to the interest rate are excluded."

In the event that any of the situations mentioned last occur, it will be necessary to place in

visible form on the front of the documents the following legend:
"Deposit without guarantee"

Entities must keep the full texts of Law 24.485, Decree 540/95 and Communication "A" 2337, its modifications and complementary provisions, available to their clientele.

Furthermore, in the advertising carried out by financial entities, related to the deposits they capture, the existence of a limited guarantee for their return must be stated.

On the boards where the rates offered to the clientele are informed, the scope of the guarantee (type of deposits included, percentage and amount guaranteed, exceptions, etc.) must be transcribed in visible form.

Until the new documents containing the legends in printed form are available, the requirement may be complied with by placing stamps with the following expressions: "Deposits have a limited guarantee for their return. Law 24.485, Decree 540/95 and Comm. "A" 2337 " or "Deposit without guarantee" as appropriate."

We clarify that the provision that, according to the resolution transcribed above, is incorporated as point 6.4.2. of Annex I to Communication "A" 2337 results applicable to deposits that are captured under the conditions provided therein from 18.12.95.

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for General Manager
Financial Entities Area of Economics and Finance