Circular OPASI 2-380: Deposit Guarantee Insurance. Reference Rate for Deposits with CER Clause

"2007 - Year of Road Safety"
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 4681 21/06/2007
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 380
Deposit Guarantee Insurance. Reference Rate for Deposits with "CER" Clause.

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

"- Replace points 5.2.2 and 5.3.1 of the regulations on 'Application of the Deposit Guarantee Insurance System' with the following:

'5.2.2. Deposits captured through systems that offer incentives or additional stimuli to the agreed interest rate and, where applicable, to the amount accrued by application of the 'CER' (Reference Stabilization Coefficient), regardless of the name or form they adopt (insurance, lotteries, tourism, provision of services, etc.).'

'5.3.1. The guarantee will cover the return of the deposited capital, interest, updates -by the Reference Stabilization Coefficient 'CER'- and quotation differences, as applicable, accrued until the date of revocation of the authorization to operate or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Republic of Argentina, if this measure had been adopted prior to the aforementioned date, without exceeding -for these concepts- $ 30,000.

That date will be considered for the determination of the Reference Stabilization Coefficient for the purposes of point 1.9. of Section 1. of the regulations on 'Term Deposits and Investments' for deposits with that clause and of the 'Reference Exchange Rate' for the conversion to pesos of foreign currency deposits, for the purpose of establishing the amount covered by the insurance.'"

We enclose the sheets that, in replacement of those previously provided, must replace the text in the consolidated text of the regulations on 'Application of the Deposit Guarantee Insurance System'. Furthermore, we remind you that on this Institution's website www.bcra.gov.ar, accessing 'regulations' ('consolidated texts'), you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Darío C. Stefanelli José I. Rutman
Manager of Issuance of Regulations
General Manager of Regulations

ANNEX

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM The additional contribution arising from the application of the aforementioned factors may not exceed the normal contribution once.
4. Integration of contributions.
Normal, additional, and advance contributions shall be debited from the current accounts of entities opened at the Central Bank of the Republic of Argentina no later than the 12th day of the month to which they correspond. In the event that updated information is not available to establish the relevant calculation base, the amount shall be determined based on the last available data, increasing the obtained base by 10%.
5. Scope of the guarantee.
5.1. Deposits included.
Deposits in pesos and foreign currency constituted in participating entities under the following forms shall be covered by the system:
5.1.1. Current account.
5.1.2. Savings account.
5.1.3. Term deposit.
5.1.4. Payment of remuneration and special accounts.
5.1.5. Term investments.
5.1.6. Immobilized balances resulting from the preceding concepts.
5.2. Exclusions.
5.2.1. Transferable term deposits whose ownership has been acquired by endorsement, even if the last endorsee is the original depositor.
5.2.2. Deposits captured through systems that offer incentives or additional stimuli to the agreed interest rate and, where applicable, to the amount accrued by application of the 'CER', regardless of the name or form they adopt (insurance, lotteries, tourism, provision of services, etc.).
5.2.3. Deposits for which interest rates higher than the reference rates are agreed, which are periodically disseminated by the Central Bank of the Republic of Argentina through Communications 'B', determined by adding two percentage points annually to the moving average of the last five business days of passive rates, for term deposits and current account balances (current account and savings account) up to $ 100,000 (or its equivalent in other currencies) resulting from the survey conducted by the Central Bank of the Republic of Argentina.
5.2.4. Deposits of financial entities in other intermediaries, including term deposit certificates acquired through secondary negotiation.
5.2.5. Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 4.2. of Chapter I of Circular OPRAC-1 and in point 1.1. of Annex I to Communication 'A' 2140.
5.2.6. Term deposits of securities, acceptances, or guarantees.
5.2.7. Immobilized balances resulting from excluded deposits and other operations.
5.3. Coverage. Amount and formalities.
5.3.1. The guarantee will cover the return of the deposited capital, interest, updates -by the Reference Stabilization Coefficient 'CER'- and quotation differences, as applicable, accrued until the date of revocation of the authorization to operate or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Republic of Argentina, if this measure had been adopted prior to the aforementioned date, without exceeding -for these concepts- $ 30,000.
That date will be considered for the determination of the Reference Stabilization Coefficient for the purposes of point 1.9. of Section 1. of the regulations on 'Term Deposits and Investments' for deposits with that clause and of the 'Reference Exchange Rate' for the conversion to pesos of foreign currency deposits, for the purpose of establishing the amount covered by the insurance.
5.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit will be $ 30,000, regardless of the number of titular persons, with the guarantee amount corresponding to each distributed proportionally among the titulators.
5.3.3. The total guaranteed to a specific person, by accumulation of accounts and deposits covered by the insurance, as previously provided, may not exceed the limit of $ 30,000 established in article 13 of Decree 540/95 (text according to Decree 1127/98).
5.3.4. SEDESA will reject or postpone until judicial recognition the coverage request by application of this guarantee regime when the deposits do not meet the requirements established in the applicable regulations or when the depositors do not present titles that are materially and formally valid.
5.3.5. SEDESA may require, prior to the settlement of the guarantee, that depositors justify the origin and availability of the deposited funds through records demonstrating the verisimilitude thereof and/or that the effective entry of funds into the entity has been confirmed for each operation covered by the regime.
Furthermore, the aforementioned company must file the relevant complaint when it detects 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:
"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 titulators. In no case, the total guarantee per person may exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Comm. 'A' 2337 and its modifications and complements. Deposits captured at rates higher than the reference rate and those that have benefited from additional incentives or stimuli to the interest rate are excluded." In the event that any of the situations cited last 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 regarding the deposits they capture, the existence of a limited guarantee for their return must be stated. On boards where rates offered to clients are informed, the scope of the guarantee (type of deposits included, percentage and amount guaranteed, 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 have 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 Republic of Argentina" or "Deposit without guarantee", as applicable.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE REGULATIONS ON THE APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM CONSOLIDATED TEXT SOURCE REGULATION Point Paragraph. Comm. Annex Point Paragraph Observations

1. "A" 2337 I 1. 1° and 2°
   1° "A" 2337 I 2. 1° S/Dec. 1292/96, and Comm. "A" 280, 3358, 4206 and 4271.

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.
3. 2° "A" 2337 I 3. 2°
1º "A" 2337 I 4. 3 and 2 S/Comm. "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/Comm. "A" 2807.
5.2. "A" 2337 I 6.4. S/Comm. "A" 2399.
5.2.1. "A" 2337 I 6.4.1. S/Comm. "A" 2399.
5.2.2. "A" 2337 I 6.4.2. S/Comm. "A" 2399 and “A” 4681.
5.2.3. "A" 2337 I 6.3. S/Comm. "A" 2777 and “A” 3358.
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. S/Comm. "A" 4681.
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/Comm. "A" 2399 and 3270, and
Decree 1292/96.
7. 1° "A" 2337 II 1. S/Comm. "A" 2561.
7.1. "A" 2337 II 1. S/Comm. "A" 2561 and 4040.
7.2. "A" 2337 II 2. S/Comm. "A" 2561.
7.3. “A” 4040
8. "A" 2807 II and III
8.1. "A" 2807 II S/Law 25.089.
8.2. "A" 2807 III S/Dec. 1292/99 and Comm. “A”
4206.

Version: 4th COMMUNICATION “A“ 4681
Validity:
21/06/2007

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 5th COMMUNICATION “A“ 4681 Validity:
21/06/2007

B.C.R.A.
Version: 5th COMMUNICATION “A“ 4681
Validity:
21/06/2007