Circular OPASI 2 - 258. Rules on Savings, Remuneration and Special Deposits, Time Deposits and Investments, and Application of the Deposit Guarantee Insurance System. Adjustment of Codified Texts

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMUNICACION " A " 3270 I 15/05/01
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 258
Rules on "SAVINGS, PAYMENT OF REMUNERATIONS AND SPECIAL DEPOSITS", "TIME DEPOSITS AND INVESTMENTS" AND "APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM". Adjustment of Codified Texts

We address you to inform you that this Institution has proceeded to adjust the referenced texts, and therefore we send you the sheets that, in replacement of those previously provided, should be incorporated. We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio
Manager of Sub-Manager of General
Emission of Regulations
Alejandro Henke
Regulation and Information Regime

ANNEX: 16 sheets

SAVINGS, PAYMENT OF REMUNERATIONS AND SPECIAL DEPOSITS B.C.R.A. Section 4. General Provisions.
4.4. Guarantee of deposits.
4.4.1. Legend.
In all documents representing passive operations (deposit slips, receipts issued by automated teller machines, account summaries, etc.), the following legend must appear, visibly and printed on the front or back of them:

"Deposits in pesos and foreign currency are covered by a guarantee of $ 30,000. In accounts in the name of two or more persons, the guarantee will be prorated among their holders. In no case may the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Com. "A" 2337 and its amendments and complements. Those captured at rates higher than the reference rate and those that have received special incentives or additional stimuli to the interest rate are excluded."

In the event that any of the situations cited in the last paragraph 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 automated teller machines belonging to networks that enable the operational interconnection of financial entities.

4.4.2. Information to the client.
Entities must keep the complete and updated texts of Law 24.485, Decree 540/95 (updated text) and the regulations on the "Deposit Guarantee Insurance System" available to their clientele.

4.4.3. Advertising.
4.4.3.1. In the premises of financial entities.
On the blackboards where rates offered to the clientele are informed, the scope of the guarantee (type of operation, its condition of being included or not in the scheme, percentage and guaranteed amount, exceptions, etc.) must be transcribed visibly.

4.4.3.2. In other media.
In the advertising carried out by financial entities, related to the deposits they collect, the existence of a limited guarantee for its return or its absence must be stated, as appropriate.

Version: 2nd. Communication "A" 3270 Validity:
15.05.01

CODIFIED TEXT SOURCE REGULATION
Sec. Point Para. Com. Annex Cap. Sec. Point Para.
OBSERVATIONS
1° "A" 2530 1°
2° "A" 2530 3° and
4°
4.3.1.
3° "A" 2530 5°
4.3.2. "A" 2530 2°
4.4.1. "A" 1199
"A" 1820 I
I 6.3.
2.6.
S/Com. "A" 2807, pt. 6 – 1° and 2° para. and Com “A” 3270.
4.4.2. "A" 2807 6. 3°
4.4.3.1. "A" 2807 6. 5°
4.4.3.2. "A" 2807 6. 4°
4.5.1. "A" 1199 I 5.3.1.
4.5.2. "A" 1199 I 5.3.2.
4.5.3. "A" 1199 I 5.3.3.
4.5.4 "A" 3042
4.5.5 "A" 1199 I 5.3.4.
4.5.6. "A" 1199 I 5.3.4.1.y
5.3.4.3.
4.5.7. "A" 627 1.
4.6. "A" 1199 I 5.1.
4.6.1. "A" 1199 I 5.1.1.
4.6.2. "A" 1199 I 5.1.2
4.6.3. "A" 1199 I 5.1.3.
4.7.1. "A" 1199 I 5.2.1. S/Com. ”A” 3042
4.7.2. "A" 1199 I 5.2.2. S/Com. ”A" 3042
4.
4.8. "B" 6572

TIME DEPOSITS AND INVESTMENTS B.C.R.A. Section 3. General Provisions. issued by the machine during the transaction process, in the specific slot for that function, and withdraw the receipt that the machine delivers upon completing the operation, which will serve for a potential subsequent claim.
3.4.2.8. Do not forget to withdraw the magnetic card after completing operations.
3.4.2.9. If the machine retains the card or does not issue the corresponding receipt,
communicate this situation immediately to the bank with which one operates and to the bank administering the automated teller machine.
3.4.2.10. In case of loss or theft of your card, report this situation immediately to the bank that issued it.
3.4.2.11. In case of withdrawals where there are differences between the receipt
issued by the machine and the amount actually withdrawn, communicate this circumstance to the banks in which the operation was carried out and the administrator of the system, in order to solve the problem.
3.5. Guarantee of deposits.
3.5.1. Legend.
In all documents representing passive operations (certificates, deposit slips, receipts issued by automated teller machines, account summaries, etc.), the following legend must appear, visibly and printed on the front or back of them:

"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 will be prorated among their holders. In no case may the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Com. "A" 2337 and its amendments and complements. Those captured at rates higher than the reference rate and those that have received special incentives or additional stimuli to the interest rate are excluded."

In the event that any of the situations cited in the last paragraph 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 automated teller machines belonging to networks that enable the operational interconnection of financial entities.

3.5.2. Information to the client.
Entities must keep the complete and updated texts of Law 24.485, Decree 540/95 (updated text) and the regulations on the "Deposit Guarantee Insurance System" available to their clientele.

Version: 2nd. Communication "A" 3270 Validity:
15.05.01

CODIFIED TEXT SOURCE REGULATION
Sec. Point Para. Com. Annex Cap. Sec. Point Para.
OBSERVATIONS
2.4.2.2. “A” 2482 1.C)2. 2°
2.4.3. “A” 2482 1.C)5.
2.4.4. “A” 2482 1.C)7.
2.5.1. “A” 2482 1.D)1. S/Com. ”A” 3043
2.5.2.1. “A” 2482 1.D)4.2. S/Com. ”A” 2617
2.5.2.2. “A” 2482 1.D)4.1.
2.5.3. “A” 2482 1.D)5. S/ Com. “A” 2617
2.5.4. “A” 2617 2.
2.5.5.1. “A” 2617 unique 1. S/Com. “A” 3043 and
“A” 3185
2.5.5.2. “A” 2617 unique 2.
2.5.5.3. “A” 2617 unique 3. S/Com. “A” 3090 and
“A” 3185
2.5.5.4. “A” 2617 unique 4.
2.5.5.5. “A” 2617 unique 5. S/Com. “A” 2961 -
Annex
2.5.5.6. “A” 2617 unique 6. S/Com. “A” 2961 -
Annex
3.1. "A" 3043
3.1.1. "A" 2885 1.
3.1.2. "A" 2885 2. 2.2.
3.1.3. "A" 2885 2. 2.3.
3.1.4. "A" 2885 2. 2.4.
3.1.5. "A" 2885 2. 2.5. y
2.6.
3.1.6. "A" 3043
3.2. "A" 1891 S /Com. "A" 1922
3.3.1. "A" 2252 1.1.
3.3.2. "A" 2252 1.2.
3.3.3. "A" 2252 1.3.
3.3.4. "A" 2252 1.4. S/Com. "A" 2482 –
pt. 3. and “A” 3043
3.3.5. "A" 2252 1.5. S/Com. "A" 2482 –
pt. 3. and ”A” 3043
3.3.6. "A" 2252 1.6.
1° "A" 2530 1°
2° "A" 2530 3° and
4°
3.4.1.
3° "A" 2530 5°
3.4.2. "A" 2530 2°
3.5.1. "A" 1199
"A" 1820 I
I 6.3.
2.6.
S/Com. "A" 2807, pt 6 – 1° and 2° para. and Com. “A” 3270.
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.
3.6.3. "A" 1199 I 5.3.3.

Furthermore, the aforementioned company must file the relevant complaint when it observes 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 automated teller machines, account summaries, etc.), the following legend must appear, visibly and printed on the front or back of them:

"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 will be prorated among their holders. In no case may the total guarantee per person exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Com. "A" 2337 and its amendments and complements. Those captured at rates higher than the reference rate and those that have received special incentives or additional stimuli to the interest rate are excluded."

In the event that any of the situations cited in the last paragraph occur, 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 automated teller machines belonging to networks that enable the operational interconnection of financial entities.

Entities must keep the complete texts of Law 24.485, Decree 540/95 (updated text) and these regulations available to their clientele.

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

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

While documents containing the legends in printed form are not available, the requirement may be fulfilled by placing stamps with the following expressions: "Deposits are covered by a limited guarantee for their return. Law 24.485, Decree 540/95 and regulations on "Application of the deposit guarantee insurance system" issued by the Central Bank of the Argentine Republic" or "Deposit without guarantee", as appropriate.

Version: 4th. Communication "A" 3270 Validity:
15.05.01

7. Determination of additional contribution.
   The normal contribution will be corrected according to the result obtained for each entity by an index, constructed based on the factors indicated in point 3., which will fluctuate between 1 and 2.
   7.1. Entities with "CAMELS" rating.
   It will arise from the following expression:
   Ic = {(Ipr/f + Iar/a + 2 * Icamels)/4} - Irpc/Kmin where:
   Ipr/f: indicator referred to in point 3.3.1. that will take the value resulting from the following expression:
   Ipr/f = (Vi/0.04) 1.20 where
   Vi: ratio between the minimum provisions required according to point 2.1. of Section 2. of the regulations on "Minimum provisions for risk of uncollectibility" and the total of financings included (Section 2. of the regulations on “Classification of debtors”). This concept includes the balances of guarantees granted by obligations assumed on behalf of third parties, recorded on the last day of the month in question, according to the classification reported in the debtor status statement. The value of the index will be bounded between 1 and 2.5. That is, in cases where the result of the expression is, respectively, less than or greater than those lower and upper limits, 1 or 2.5 will be taken, as appropriate. Iar/a: indicator referred to in point 3.3.2. that will take the value resulting from the following expression:
   Iar/a= (Vi/0.70) 1.30 where
   Vi: ratio between the entity's risk assets and total assets. Risk assets are defined as the sum of the concepts "Ais", "Aif", "Vrf" and "Vrani" -in the latter two cases computed by their weighted value- in the terms referred to in point 3.1. of Section 3. of the regulations on "Minimum capital of financial entities" and total assets as the sum of the concepts "Ais", "Aif", "f" and other non-immobilized assets not included in "f" -included in "Vrani". The value of the index will be bounded between 1 and 2. That is, in cases where the result of the expression is, respectively, less than or greater than those lower and upper limits, 1 or 2 will be taken, as appropriate. Icamels: indicator referred to in point 3.1. The value resulting from the following table will be taken:
   Rating Index
   1 1.00
   2 1.33
   3 1.66
   4 2.00
   5 2.00
   The rating assigned by the Superintendence of Financial and Currency Entities to the financial entity will be considered for the calculation of contributions to the Deposit Guarantee Fund that are due starting from the third month following that in which the relevant notification takes place. Irpc/Kmin: indicator referred to in point 3.2. The value resulting from the following table will be taken:
   RPC/Minimum capital requirement ratio
   Index up to 0.90 - 0.50 more than 0.90 to 0.95 - 0.25 more than 0.95 to 1.00 - 0.10 more than 1.00 to 1.10 0.00 more than 1.10 to 1.20 + 0.05 more than 1.20 to 1.30 + 0.10 more than 1.30 to 1.50 + 0.20 greater than 1.50 + 0.30 The value of the index Ic will be bounded between 1 and 2. That is, in cases where the result of the expression is, respectively, less than or greater than those lower and upper limits, 1 or 2 will be taken, as appropriate. For the calculation of the ratios, the amounts corresponding to the third month prior to the due date of the contributions will be considered.

Version: 4th. Communication "A" 3270 Validity:
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7.2. Entities without "CAMELS" rating.
While the rating of the Superintendence of Financial and Currency Entities ("CAMELS") is not available, the calculation of the correction index will arise from the following expression:
Ic = {(Ipr/f + Iar/a)/2} - Irpc/Kmin
For its application, the definitions of the terms according to point 7.1. will be taken into account.
8. Applicable legislation.
8.1. Law 24.485 (*).
Article 1: The Deposit Guarantee Insurance System is created, which shall be limited, mandatory, and onerous, with the object of covering banking deposit risks, in a subsidiary and complementary manner to the system of privileges and protection of deposits established by the Financial Entities Law, without compromising the resources of the Central Bank of the Argentine Republic nor the National Treasury. The Central Bank of the Argentine Republic is authorized to organize and put into operation the system created by this article.
When the Central Bank of the Argentine Republic orders the total or partial suspension of operations or the revocation of the authorization to operate of a financial entity, the Deposit Guarantee Insurance System must order the reimbursement to their holders of the sums deposited in the special accounts for the crediting of remunerations, enabled by virtue of the provisions contained in article 124 of Law 20.744 (codified text in 1976), within a period not exceeding five (5) business days from the date of the suspension or revocation of the authorization to operate.

8.2. Decree 540/95 ().
Article 1: The "DEPOSIT GUARANTEE FUND" (FGD) is created with the purpose of covering banking deposits with the scope provided in this Decree.
The formation of the company "DEPOSIT INSURANCE ANONYMOUS SOCIETY" (SEDESA) is ordered with the exclusive object of exercising the functions of trustee of the trust contract to be entered into between SEDESA and the NATIONAL STATE, through the CENTRAL BANK OF THE ARGENTINE REPUBLIC, to administer the FGD. (*) Published in the Official Bulletin on 18.4.95. With the modification of Law 25.089 (O.B. 14.05.99) () With the modifications of Decrees 1292/96, 1127/98 and 1292/99

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Article 2: The MINISTRY OF ECONOMY AND PUBLIC WORKS AND SERVICES is delegated the approval of the Act of Constitution and the Bylaws of "DEPOSIT INSURANCE ANONYMOUS SOCIETY" (SEDESA), which will have as partners the CENTRAL BANK OF THE ARGENTINE REPUBLIC, with at least one share, and whoever turns out to be the trustee of the trust contract to be formed by the financial entities authorized to operate in the ARGENTINE REPUBLIC who express their willingness to participate, in the proportion that for each one is determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC based on their contributions to the FGD. Until the constitution of SEDESA, contributions to the FGD will enter the account and entity determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 3: SEDESA will not receive any compensation for its acting as trustee of the FGD. The operating expenses of the company will be strictly necessary to operate and must be covered with the income of the FGD. The modification of its bylaws or capital will require at least the favorable vote of the shares owned by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 4: The protocolization of the act of constitution and the bylaws of SEDESA, as well as any act that needs to be elevated to public deed, is ordered, through the GENERAL NOTARY OF THE NATION, without implying any expenditure.

Article 5: The GENERAL INSPECTION OF JUSTICE is instructed to grant the respective conformities or authorizations and to record the inscription of SEDESA in the register under its charge.

Article 6: Financial entities authorized to operate in the ARGENTINE REPUBLIC must integrate the FGD with a normal monthly contribution determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC between a minimum of ZERO POINT ZERO FIFTEEN PERCENT (0.015%) and a maximum of ZERO POINT ZERO SIX PERCENT (0.06%) of the average of the daily balances of deposits in pesos and foreign currency constituted in the financial entities, and with additional contributions that the CENTRAL BANK OF THE ARGENTINE REPUBLIC establishes for each entity based on the risk indicators it deems appropriate. In no case may the additional contribution exceed the equivalent of a normal contribution.
For the calculation of the average of daily balances of deposits in pesos and foreign currency, deposits corresponding to national official accounts opened in the BANK OF THE ARGENTINE NATION are excluded. THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may order that the integration of the contribution, whether in cash or through the assumption of the commitment to make the same, instrumented in the conditions and formalities determined by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC, and contributing financial entities, in the latter case, must comply with the current regulations on minimum capital. Such commitments may not exceed FIFTY PERCENT (50%) of the contribution to be made.

Article 7: THE CENTRAL BANK OF THE ARGENTINE REPUBLIC will determine the due date for the obligation to deposit contributions. Financial entities must deposit their contributions punctually as a condition to operate regularly. Financial entities that begin their operations in the ARGENTINE REPUBLIC may enter the trust referred to in Article 2 of this Decree, and those that cease to operate will lose the condition to integrate it, ceding their rights to the nominal value of the shares of SEDESA. The Authority of Application will establish annually the proportion of participation in the trust by each financial entity, and the corresponding transfers to the nominal value of the shares must be made immediately.

Article 8: When the FGD reaches the sum of TWO BILLION PESOS ($ 2,000,000,000) or FIVE PERCENT (5%) of the total deposits of the financial system, if that proportion is greater, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may suspend or reduce the obligation to make contributions to the FGD, restoring total or partial obligation when the FGD decreases from that amount or proportion. For the purposes of this Article, only cash contributions made by financial entities will be computed. THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may adjust the total amount that the FGD must reach, when it considers that the accumulated amount is prudent in relation to the financial market situation and the functions of the FGD.

Article 9: At any time, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC () may require financial entities to advance the integration of up to two years of the minimum provided for normal contributions, whether entirely in cash or including contribution commitments up to the maximum authorized in Article 6 of this Decree. It may also require any of the contributing financial entities to establish guarantees for the operations referred to in clause e) of article 10 bis of this decree. THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may, at the request of SEDESA, directly debit the normal or additional contributions owed by financial entities from the funds they have deposited in said Institution. It may also proceed in case of non-issuance of the contribution commitments provided for in Article 6 of this decree.
The guarantees to be granted by financial entities according to the provisions of the preceding paragraph will be determined by the amounts individually corresponding to them and will be at first request and in the conditions and formalities () Decree 1292/99

Version: 4th. Communication "A" 3270 Validity:
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as established by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 10: The resources of the FGD shall be invested under conditions similar to those established for the placement of the international foreign exchange reserves of the CENTRAL BANK OF THE ARGENTINE REPUBLIC. Without prejudice to this, the CENTRAL BANK OF THE ARGENTINE REPUBLIC may authorize that up to FIFTY PERCENT (50%) of the assets comprising the FGD be invested in national public bonds. The returns of the FGD shall form part of it and be reinvested under the same conditions. SEDESA shall inform the public and the SUPERINTENDENCY OF FINANCIAL ENTITIES AND EXCHANGE OPERATIONS of the FGD balance monthly.

Article 10 (bis) (*): SEDESA may carry out the following operations with the resources of the FGD:

a) Effect the coverage of the guarantee to depositants, within the limits and conditions established in this Decree and its regulatory, complementary, and clarifying norms.

b) Make capital contributions, non-refundable contributions, or loans to:
(I) Financial entities that are subject to a regularization and rehabilitation plan and for the purpose of supporting its compliance; (II) Financial entities that acquire assets and assume responsibility for the payment of deposits of another entity subject to the regime of Article 35 bis and concordant provisions of the Financial Entities Law, when this is convenient to compensate for the insufficiency of said assets with respect to the total of the transferred deposits; or (III) Absorbing or acquiring financial entities in the framework of a regularization and rehabilitation plan.

c) Enter into a put option contract in favor of the acquiring entity with financial entities that acquire assets and assume responsibility for the payment of deposits of another entity subject to the regime of Article 35 bis and concordant provisions of the Financial Entities Law, regarding all or part of the transferred assets. The operation provided for in this subsection may be carried out through the establishment of a trust into which the assets of an entity subject to the regime of Article 35 bis of the cited law enter, and in which SEDESA, in its capacity as administrator of the FGD, acquires beneficiary rights over the proceeds from the sale or liquidation of the trust assets.

(*) Decree 1292/99
Version: 4th. Communication "A" 3270 Validity: 15.05.01

d) Acquire deposits from suspended banks under Article 49 of the Organic Charter of the CENTRAL BANK OF THE ARGENTINE REPUBLIC (Law 24.144) up to the guarantee amounts provided in Article 13 of this Decree, subrogating into the rights of the depositants.

e) Take or receive loans or enter into any other credit operations with the FGD, in its capacity as administrator thereof, for an amount not exceeding the total of the normal monthly and additional contributions of the financial entities referred to in Article 6°, both in cash and through the assumption of the commitment to contribute as provided in Article 6°, during a period of TWO (2) years counted from the moment the loan or credit operation is entered into. For the purpose of determining the total contributions during the aforementioned TWO (2) year period, the amount of the monthly contributions of each entity at the time the loan is contracted or the credit operation is entered into shall be computed.

f) Carry out, maintain, or finance swap programs with foreign banks that aim to contribute to the stability of the Financial System, with the prior consent of the CENTRAL BANK OF THE ARGENTINE REPUBLIC and charged to the FGD.

The application of the alternatives provided for in the preceding subsections b), c), and d) as well as the operations referred to in the preceding subsection e) shall be decided exclusively by a Management Committee, whose decisions shall be binding on SEDESA. Such Committee shall be composed of a representative of the CENTRAL BANK OF THE ARGENTINE REPUBLIC and a number of board members to be determined in the Trust Contract between a minimum of FOUR (4) and a maximum of SEVEN (7) representatives of the financial entities contributing to the FGD.

The representative of the CENTRAL BANK OF THE ARGENTINE REPUBLIC shall serve as President, and shall have the right of veto but not of vote.

The board members shall have the right to vote in proportion to the contributions made to the FGD by the entities they represent and in accordance with what is provided in the Trust Contract.

The Management Committee shall decide on the application of any of the alternatives provided for in the preceding subsections b), c), and d) when, according to the estimates that can be made at the time the decision must be taken, its adoption implies a direct cost to the FGD lower than that which would be borne by the FGD in the event that the authorization to operate is revoked for the affected entity and the payment to depositants provided for in subsection a) above must be fulfilled, for which the financial situation of the affected entity and the probable recovery of SEDESA's disbursements by subrogation must be taken into account.

Exceptionally and in the event that it is estimated that the revocation of the authorization to operate of the affected entity could endanger the stability of other financial entities or of the financial system as a whole, the application of any of the alternatives provided for in the preceding subsections b), c), and d) may be admitted even if it implies a direct cost to the FGD greater than that resulting from the alternative provided for in subsection a), without in any case the same exceeding the total amount of guaranteed deposits imposed on the affected financial entity.

Everything related to the Management Committee shall be provided for in the trust contract entered into by the CENTRAL BANK OF THE ARGENTINE REPUBLIC AND DEPOSIT INSURANCE CORPORATION S.A.

Article 11: The coverage offered by the system shall apply to deposits in PESOS and in foreign currency constituted in participating entities in the form of checking accounts, savings accounts, time deposits, or other modalities determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC, which meet the requirements established in this Decree and those established by the Application Authority.

Article 12: The following are not covered by the guarantee system:

a) Deposits of financial entities with other intermediaries, including time deposit certificates acquired through secondary negotiation.

b) Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines established or to be established in the future by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

c) Time deposits of securities, acceptances, or guarantees.

d) Deposits constituted after July 1, 1995, on which an interest rate higher by two percentage points annually than the passive interest rate for equivalent terms of THE NATIONAL BANK OF ARGENTINA corresponding to the day prior to the deposit has been agreed upon. The CENTRAL BANK OF THE ARGENTINE REPUBLIC may modify the reference rate established in this subsection, communicating it FIVE (5) business days in advance.

e) Other deposits that the Application Authority may exclude in the future.

Version: 4th. Communication "A" 3270 Validity: 15.05.01

Article 13: The guarantee shall cover the return of demand or time deposits up to the (*) sum of thirty thousand PESOS ($ 30,000).

The CENTRAL BANK OF THE ARGENTINE REPUBLIC may dispose, at any time and with general effect, of the modification of this coverage amount of the guarantee system, based on the evolution of the financial system consolidation process and other indicators it deems appropriate.

Deposits for amounts exceeding the coverage amount are also included in the guarantee regime up to that maximum limit.

Article 14: The receipt by depositants of the sums disbursed by SEDESA with the FGD's availability constitutes legal subrogation in favor of SEDESA of the collection rights in the liquidation or bankruptcy of the entity, with the privileges corresponding to the depositants and with priority of collection over them up to the concurrence of the sums paid by SEDESA according to what is provided in Article 13 of this Decree.

Article 15: The guarantee applies under equal conditions for natural and legal persons. To determine the amount covered and its return to the depositant, the total of the deposits registered by each person in the entity on the date of the revocation of its authorization to operate shall be computed. In accounts and deposits in the name of TWO (2) or more persons, it shall be understood that only one of them enjoys the guarantee, prorating it among the participants.

Article 16: ()

Article 17: The guarantee shall be effective in a subsidiary and complementary manner to the reimbursement of deposits by applying the privileges established by the Financial Entities Law, within THIRTY (30) business days counted from the day following the revocation of the authorization to operate of the entity, to the extent that the depositants meet the established requirements and the FGD has availability. At the request of SEDESA, the CENTRAL BANK OF THE ARGENTINE REPUBLIC may authorize the extension of this period when the number of beneficiaries in liquidation proceedings justifies it.

When the resources of the FGD are insufficient to meet the payment of the guaranteed sums, the reimbursement shall be made pro rata of the available funds. The balance shall be settled within THIRTY (30) days counted from the date on which the FGD reports the existence of financial availability. In these situations and when there is more than one entity whose authorization has been revoked, the precedence for reimbursement shall be governed by the chronological order resulting from the beginning of the computation of the guarantee payment period. In no case shall the FGD cover or recognize interest for the period between the original maturity of the deposit and the date of payment of the guarantee.

(*) Decree 1127/98. Validity: 28.9.98
() Repealed by Decree 1127/98.
Version: 4th. Communication "A" 3270 Validity: 15.05.01

Article 18: The payment of the guaranteed sums shall be made in pesos or in foreign currency, according to the proportion of each species resulting from the total of the deposited capital. For this latter purpose and to homogenize the balances of the total deposited, when it comes to deposits in foreign currency, their equivalent in pesos shall be taken according to the selling exchange rate for banknotes of THE NATIONAL BANK OF ARGENTINA, corresponding to the day prior to the revocation of the authorization to operate of the entity included.

Article 19: SEDESA may reject or postpone until its judicial recognition the request for guarantee coverage when the respective deposits do not meet the formal or substantial requirements established in this regulation or other provisions issued by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 20: SEDESA may exercise the corresponding judicial actions when, in its judgment, there are real possibilities of recovering the disbursed amounts.

Article 21: The regime established in this Decree shall apply with respect to time deposits that are constituted or renewed from April 18, 1995, and with respect to demand deposits that are registered in the balances corresponding to the close of that day, constituted in financial entities that were not suspended by the CENTRAL BANK OF THE ARGENTINE REPUBLIC nor had their authorization to operate revoked.

Article 22: The CENTRAL BANK OF THE ARGENTINE REPUBLIC shall be the Application Authority of the system created by Law 24.485 and regulated by this Decree, being empowered to issue the interpretative and application norms that are necessary.

Article 23: The Board of Directors of SEDESA shall communicate to the SUPERINTENDENCY OF FINANCIAL ENTITIES AND EXCHANGE OPERATIONS dependent on the CENTRAL BANK OF THE ARGENTINE REPUBLIC its opinion regarding the financial entities that, in its judgment, have credit or commercial policies that are estimated to be of risk higher than normal. Likewise, its opinion may be requested regarding authorization requests to operate or transformation that are under consideration by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 24: This Decree shall enter into force from the same day of its publication in the (*) Official Bulletin.

Article 25: Form.

(*) Applicable to Decrees 540/95, 1292/96, and 1127/98, on their respective dates Version: 4th. Communication "A" 3270 Validity: 15.05.01

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED
IN THE CODIFIED TEXT OF THE RULES ON
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

CODIFIED TEXT ORIGIN NORM
Point Paragraph Com. Annex Point Paragraph Observations

1. "A" 2337 I 1. 1° and 2°
2. 1° "A" 2337 I 2. 1° S/Dec. 1292/96 and "A" 2807
   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.
4. 2° "A" 2337 I 3. 2°
   1º "A" 2337 I 4. 3 and 2 S/Com. "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/Com. "A" 2807
   5.2. "A" 2337 I 6.4. S/Com. "A" 2399
   5.2.1. "A" 2337 I 6.4.1. S/Com. "A" 2399
   5.2.2. "A" 2337 I 6.4.2. S/Com. "A" 2399
   5.2.3. "A" 2337 I 6.3. S/Com. "A" 2777
   5.2.4. "A" 2337 IV S/Dec. 540/95, art. 12, inc. c)
   5.2.5. "A" 2337 I 6.2.
   5.2.6. "A" 2337 IV S/Dec. 540/95, art. 12, inc. 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.
   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/Com. "A" 2399 and 3270, and
   Decree 1292/96
7. 1° "A" 2337 II 1. S/Com. "A" 2561
   7.1. "A" 2337 II 1. S/Com. "A" 2561
   7.2. "A" 2337 II 2. S/Com. "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