Circular OPRAC 1-407, LISOL 1-158: Mortgage Loans on Housing — BCRA — AR

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 2563 18/07/97
TO FINANCIAL ENTITIES
Ref.: Circular OPRAC 1 - 407. LISOL 1 - 158.
Mortgage Loans on Housing

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

"1. It is ordered that, with effect for financing granted to individuals from 1.1.98 and when it concerns loans with a mortgage guarantee to be constituted on a dwelling, financial entities must observe for the development of the operation the guidelines provided in the Origination and Administration Manual and in the Valuation Manual which appear in Annexes I and II to this communication, respectively, while the Credit Contract with Mortgage Guarantees must contemplate - at a minimum - the text contained in Annex III.

It is established that failures to comply with the provisions in the preceding point will give rise to the consideration of the loans as "without preferred guarantee", for the purposes of the requirement of minimum capital, fragmentation of credit risk and provisions for uncollectible risk.
Repeal, with effect from 21.7.97, point 3.1.6. of Section 3., Section 9. and point 10.2. of Section 10. of the consolidated text disseminated by Communication "A" 2422.

Without prejudice to the foregoing, integration with that concept will be admitted until 31.10.97 to the extent that it concerns loans granted in accordance with the aforementioned point 3.1.6. until 18.7.97."

We point out to you that the preparation of the aforementioned manuals - which provide a global framework for the standardization of information - has been achieved through consensus between the associations that group financial intermediaries, specialized entities in the matter and this Institution.

In that sense, we express to you that the concerns and doubts that may arise regarding aspects not specifically detailed or provided for in said manuals must be resolved by the financial entities themselves, based on their experience in the credit activity, without prejudice to the controls that, subsequently, the Superintendence of Financial and Exchange Entities will carry out.

We clarify that the repeal of point 3.1.6. of Section 3. of the norms on minimum liquidity requirements, ordered by point 3. of the preceding resolution, does not affect the integration with the concept referred to in point 3.1.7. of said section.

Attached are the sheets that should be replaced in the consolidated text of the norms on minimum liquidity requirements, taking into account the preceding resolution and the one disseminated through Communication "A" 2490.

We greet you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Juan Carlos Isi
Deputy Manager of Norms for Financial Entities Alfredo A. Besio Manager of Norms for Financial Entities

ANNEXES

B.C.R.A. CONSOLIDATED TEXT OF THE NORMS ON
MINIMUM LIQUIDITY REQUIREMENTS
Annex to
Com. “A” 2563

Index -
Section 1. Concepts included.
Section 2. Calculation.
Section 3. Integration.
Section 4. Minimum requirements.
Section 5. Non-compliance.
Section 6. Responsible parties and sanctions.
Section 7. Accounting registration.
Section 8. Model of notification of the contract of sale option.
Section 9. Repealed - Communication "A" 2563-.
Section 10. Other provisions.
Version: 3rd Communication “A” 2563 Validity: 21.7.97 Page 1

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 3. Integration

The entity does not maintain contracts of financial derivative operations
with respect to securities of the country, whose compliance could mean the neutralization of those operations.
The entity must refrain from formalizing other operations with the bank issuer of the option whose results, according to the framework agreements that are applicable, may be subject to the eventual obligation to offset credits with debts. Consequently, there are no impediments for the entity local to be simultaneously seller of a call option with respect to the securities involved in the put option, configuring a "collar" operation. Likewise, the computation of this integration will be admitted, from the day on which the operation is negotiated, provided that the supporting documentation of the put option - notification of the option and contract - is deposited in the custodian bank within the next 72 business hours.
3.1.6. Repealed - Communication "A" 2563-.
Notwithstanding, until 31.10.97 the integration with the concept to which it referred in its first version, according to Communication "A" 2422 (T.O.), will be admitted, provided that it concerns contracts formalized until 18.7.97.
3.1.7. Loans with mortgage guarantee formalized between 15.10.95 and 18.7.97,
according to the terms of the model contract adopted by the financial entities to which the repealed Section 9. of Communication "A" 2422 (T.O.) referred, originated and carried out under the guidelines established by the National Mortgage Bank or DB Program Manager S.A. (Deutsche Morgan Grenfell), and the Participation Certificates and debt representative titles issued by the trustees, with respect to trust Version: 2nd Communication “A” 2563 Validity: 21.7.97 Page 3

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 3. Integration trusts referred to the aforementioned mortgage loans, provided that the local entity is the holder of the right to exercise a put option on the portfolio or on the securities that can be exercised at any time within the following 60 days, observing all other safeguards contained in point 3.1.5.
3.1.8. Securities - bonds and shares - issued by companies constituted in
countries members of the Organisation for Economic Co-operation and Development (OECD). It will be required that the issuing companies maintain in force obligations that have at least one "A" rating granted by some of the international risk rating agencies according to the list contained in point 2.2, Section 2., Communication "A" 2521 (T.O.). It must be high liquidity securities, with daily quotation for significant amounts in stock exchanges or securities markets that operate in plazas of countries members of the aforementioned organization (OECD). The value of the holding of each security cannot exceed the equivalent to 5% of the daily amount traded in those exchanges, measured according to the average of the movements of the last twelve months that each species has registered. The computation will be carried out taking into account the value that arises for each day of the month based on the daily quotation of the securities. The computation of this integration will be admitted provided that the securities are maintained custodied in Deutsche Bank, New York.
3.1.9. Fund shares whose assets are constituted -
indistinctly - by the securities referred to in points 3.1.3, 3.1.8. and 3.1.11.
Version: 3rd Communication “A” 2563 Validity: 21.7.97 Page 4

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 3. Integration
3.2. The integration in the admitted concepts will only be computable up to the following
maximum limits, measured with respect to the minimum requirement of each period:
Concept Maximum computable
-in %- a) Points 3.1.1. and 3.1.4. (together) 100 b) Points 3.1.2., 3.1.3., 3.1.5. and 3.1.7. to 3.1.11. (together) 70 c) Point 3.1.5. (within the preceding margin) 10 d) Point 3.1.7. (within the 70% margin) 5 e) Points 3.1.9. and 3.1.11. (within the 70% margin) 30 Until 31.10.97, the concept referred to in the second paragraph of point 3.1.6., may be computed without any limitation.
3.3. Model of consent for the disposal of assets by the Central Bank, to
be granted by financial entities or investment fund administrators to prove the degree of liquidity of holdings of (indicate place and date) Messrs.
Central Bank of the Argentine Republic
Reserve Administration Management
S. / D.
Ref.: Minimum liquidity requirements
Version: 2nd Communication “A” 2563 Validity: 21.7.97 Page 9

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 4. Minimum requirements
The requirements arising from applying the following rates must be integrated:
Concept Rates in %

in common checking and deferred payment accounts, in pesos
and in US dollars 19
in savings accounts in pesos and in foreign currency 19
usury accounts, special accounts for closed circles and
"Unemployment Fund for workers in the construction industry" 19
other deposits and liabilities at sight, including with banks and
correspondents abroad - except foreign trade liabilities -, immobilized balances in pesos, in foreign currency and in securities and unused balances of advances in checking accounts formalized 19
fixed-term deposits in pesos, in foreign currency and of securities, liabilities for "acceptances", passive securities and foreign currency swaps, sureties and stock swaps of
securities, other term liabilities in pesos and in foreign currency and term liabilities with banks and correspondents abroad - except foreign trade liabilities -, negotiable liabilities and investments at Version: 5th Communication “A” 2563 Validity: 1.8.97 Page 1

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 4. Minimum requirements term constant, with option for early cancellation or renewal for a determined term and with variable remuneration:

up to 59 days 19
from 60 to 89 days 19
from 90 to 179 days 14
from 180 to 365 days 9
more than 365 days 0
Version: 5th Communication “A” 2563 Validity: 1.8.97 Page 2

MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A. Section: 10. Other provisions
In real estate loan operations referred to in the manuals annexed to Communication "A" 2563, the basis of 360 days will be used as a fixed divisor for the purposes of the application of the agreed annual interest rate. In the event that the French amortization system is agreed in said loans, for the calculation of the periodic installment the following formula will be used:
c = (D * i * ( 1 + i ) ^ n ) / ( ( ( 1 + i ) ^ n ) - 1 ) where:
c : periodic installment.
D : outstanding balance (principal) at the end of the period in question. i : periodic interest rate. It is obtained from the following expression:
i = r / ( m * 100 ) where r : annual nominal interest rate, in percent. m : number of payment periods agreed in a year (12 if it concerns monthly installments, 4 if it concerns quarterly installments, 2 if it concerns semi-annual installments, etc.). n : number of installments remaining to be paid including the one being calculated. The periodic installment includes the interest of the period calculated on the outstanding balance according to the agreed rate and a portion of principal amortization that is obtained by subtracting the interest from the amount of the installment. Version: 2nd Communication “A” 2563 Validity: 21.7.97 Page 1

Introduction and Objectives
This Manual establishes a set of guidelines, practices and procedures that financial entities must follow in the origination and administration of loans with mortgage guarantee on properties for housing. Those loans granted to individuals that are guaranteed with a first-degree mortgage on real estate destined for permanent or non-permanent housing, located in the national territory are included. For the purposes of this document, those loans that meet the detailed characteristics will be called "Real Estate Loans". This Manual is organized into four sections:
I. Characteristics and Guidelines for the Granting of Real Estate Loans.
II. Origination of Real Estate Loans
III. Administration Procedures.
IV. Information Systems.
Section I develops the general concepts related to the granting of Real Estate
Loans, such as characteristics of Applicants, use of funds and modalities of Loans. In Section II, the different steps and procedures for origination are detailed, from the Loan Application to the granting of the same. Section III deals with aspects related to the administration of Loans, that is, once they have been originated and instrumented. Finally, Section IV specifies the information and statistics requirements that the entities must maintain with respect to the portfolio. The Origination and Administration and Valuation manuals must be available to the Applicants at the entities.

Section I. Characteristics and Guidelines for the Granting of Real Estate Loans.
Requirements of the Debtor, Co-debtors and Guarantors The following enumeration of requirements is applicable to the Debtor, Co-debtor(s) and Guarantor(s) of a Real Estate Loan, who collectively are called "Applicants". The debtor is understood as the borrower. In the case of more than one debtor, all collectively will be called co-debtors. The co-debtors must assume their obligation jointly, and also become mortgagors if the property to be mortgaged is their property. Mortgagors can also be other co-owners of the property, who do not assume the status of debtors for not being borrowers. Mortgagors can become plain and principal guarantors, thereby becoming guarantors. Persons who are not owners of the property to be used as collateral can also assume the status of guarantors. In the case of the simple mortgagor, it is recommended that they assume the status of guarantor. The requirements that Applicants must meet are:
(a) Be natural persons, of legal age or civilly emancipated and authorized to conduct commerce.
(b) Be fully authorized to conduct financial transactions, that is, not be disqualified for any reason by competent authority.
(c) There must be no pending litigation or judicial causes, which in the opinion of the entity are significant, against any of the Applicants.
(d) There is no maximum age limit, except that which arises from the requirements of life insurance.
(e) Applicants must meet the requirements required by life insurance.
(f) As a general criterion, they should not have negative commercial or credit records, unless in the opinion of the financial entity they are not relevant.
Destination of the Real Estate Loan
To be considered a Real Estate Loan, the use of funds must be one of the enunciated below or a combination of them:
(a) acquisition of permanent housing;
(b) acquisition of non-permanent housing;
(c) construction or completion of permanent housing; (d) construction or completion of non-permanent housing; (e) improvements on permanent housing; (f) improvements on non-permanent housing; (g) obtaining financing for another purpose, using permanent housing as collateral; (h) obtaining financing for another purpose, using non-permanent housing as collateral; (i) refinancing of loans whose destination was any of the aforementioned on permanent housing; (j) refinancing of loans whose destination was any of the aforementioned on non-permanent housing. For the purposes of the preceding enumeration, permanent housing is understood as that in which at least one of the Applicants lives or will live for most of the year and so declares in a Sworn Declaration. Otherwise, it will be considered non-permanent housing. Improvements are understood as works and/or tasks carried out on the property after it is in habitable conditions. Otherwise, it will be construction or completion. In the case of refinancing, the maximum amount will be the principal balance of the loan being refinanced plus the refinancing costs if any. In the case of being a higher amount, it will be considered as destination (g) or (h) depending on whether it is. Refinancing implies that the existing loan is cancelled and a new one is created. Real Estate Loans included in this manual may be those properties that, having housing as their main destination, have a commercial and/or professional space. However, the contribution of commercial spaces to the value of the property will not be taken into account for the purposes of determining the appraisal value. Types of Real Estate Loans Real Estate Loans may be granted in pesos or in foreign currency under any of the following typologies:
(a) French System at fixed rate (according to Section 10. of the consolidated text of the norms on minimum liquidity requirements).
(b) French System at variable rate.
(c) German System at fixed rate.
(d) German System at variable rate.
(e) Other amortization systems.

French System is that which has fixed and equal periodic installments of principal and interest, with the principal portion increasing and interest decreasing. German System is that with decreasing periodic installments, with the principal portion fixed and interest decreasing. The periodicity of the installment cannot be greater than quarterly. In all cases, interest will be calculated on the basis of a year of 12 months of 30 days each. The rates will be fixed or variable according to what is provided in Communications “A” 2147 and 2390. Real Estate Loans at variable rate may include an agreement on a maximum (“cap”) or a minimum (“floor”) or both (“collar”) on the interest rate accruing on the loan. Term Loans will be granted, at most, for 30 years. Computable Income of Applicants These are the demonstrable, habitual and permanent income of the Applicants. The following will be considered as computable income of the Applicants:
Employees in a Relationship of Dependence
Salary and Annual Complementary Salary
Commissions (monthly average in the last twelve months) Bonuses (monthly average of the last two years) Rental income (monthly average of the last two years) Entities must verify the employment of Applicants during the last two years preceding the mortgage application and verify income independently, for example, by requesting confirmation directly from the employer. Self-Employed Workers Income arising from Tax Returns filed with the DGI (monthly average of the last two years). Certification of Income by Public Accountant and its signature certified by the Professional Council of Economic Sciences (monthly average of the last two years). Rental income (monthly average of the last two years). Applicants must present the supporting documentation of the declared income in accordance with current regulations. Rental income will be demonstrated by the corresponding Sworn Declaration to the General Directorate of Taxation. Entities may use another definition of computable income, in which case they will also obtain a modified version of the ratios defined later in this manual. However, they cannot thereby cease to calculate and register the standard concepts as defined by this manual.

It is fundamental to evaluate the perspective of continuity of the computable income of the Applicants. For this, it is recommended to analyze the following points:

branch of activity developed
acquired capabilities for work (studies, experience, etc.)
seniority and trajectory in employment (changes of employer must be analyzed in relation to a career path)
growth prospects
potential labor market
age and sex.
To determine the probability of meeting obligations undertaken, both currently and in the future, it is recommended to obtain information on the standard of living of the Applicants (for example: education expenses, domestic employees, installments or sports clubs or other associations, leisure expenses, etc.), investigate their expenditures and especially evaluate their future evolution, for the purposes of predicting their degree of solvency in the future. The result of the labor perspective and future solvency analyses must be reflected in the Approval and Analysis Form. Installment / Income Ratio This is the percentage relationship that exists between the total amount of the Real Estate Loan installment, - including all concepts of principal, interest, expenses, commissions, insurance premiums and taxes - and the computable income of the Applicants. For calculation purposes, the installment amount will be monthlyized when the payment periodicity is bimonthly or quarterly. Similarly, computable income with a periodicity other than monthly will be treated in the same way. The calculation of computable income will be the sum of net income (after taxes and other legal deductions). In the case of self-employed workers, special attention must be paid to computing the income of the Applicant and not the income of the activity carried out by the Applicant. For example, if the Applicant is a partner of a company that operates a business, the Tax Returns or Accountant Certification of the Applicant must be considered, not those corresponding to the business. To compute net income, amounts paid by the Applicant for national, provincial or municipal taxes that tax the declared income, as well as social security contributions, must be deducted. For the purposes of calculating the total installment of the Real Estate Loan, in addition to adding the amounts corresponding to principal, interest, expenses, commissions, insurance premiums and taxes, the following guidelines must be followed:
(a) In the French System at fixed rate, the installment will be calculated using that rate.

B.C.R.A. STANDARDIZATION OF MORTGAGE LOANS
ON HOUSING
ANNEX I
TO COM. “A”
ORIGINATION AND ADMINISTRATION MANUAL
OF REAL ESTATE LOANS

(e) improvements on permanent housing;
(f) improvements on non-permanent housing;
(g) obtaining financing for another purpose, using permanent housing as collateral; (h) obtaining financing for another purpose, using non-permanent housing as collateral; (i) refinancing of loans whose destination was any of the aforementioned on permanent housing; (j) refinancing of loans whose destination was any of the aforementioned on non-permanent housing. For the purposes of the preceding enumeration, permanent housing is understood as that in which at least one of the Applicants lives or will live for most of the year and so declares in a Sworn Declaration. Otherwise, it will be considered non-permanent housing. Improvements are understood as works and/or tasks carried out on the property after it is in habitable conditions. Otherwise, it will be construction or completion. In the case of refinancing, the maximum amount will be the principal balance of the loan being refinanced plus the refinancing costs if any. In the case of being a higher amount, it will be considered as destination (g) or (h) depending on whether it is. Refinancing implies that the existing loan is cancelled and a new one is created. Real Estate Loans included in this manual may be those properties that, having housing as their main destination, have a commercial and/or professional space. However, the contribution of commercial spaces to the value of the property will not be taken into account for the purposes of determining the appraisal value. Types of Real Estate Loans Real Estate Loans may be granted in pesos or in foreign currency under any of the following typologies:
(a) French System at fixed rate (according to Section 10. of the consolidated text of the norms on minimum liquidity requirements).
(b) French System at variable rate.
(c) German System at fixed rate.
(d) German System at variable rate.
(e) Other amortization systems.

It is fundamental to evaluate the perspective of continuity of the computable income of the Applicants. For this, it is recommended to analyze the following points:

branch of activity developed
acquired capabilities for work (studies, experience, etc.)
seniority and trajectory in employment (changes of employer must be analyzed in relation to a career path)
growth prospects
potential labor market
age and sex.
To determine the probability of meeting obligations undertaken, both currently and in the future, it is recommended to obtain information on the standard of living of the Applicants (for example: education expenses, domestic employees, installments or sports clubs or other associations, leisure expenses, etc.), investigate their expenditures and especially evaluate their future evolution, for the purposes of predicting their degree of solvency in the future. The result of the labor perspective and future solvency analyses must be reflected in the Approval and Analysis Form. Installment / Income Ratio This is the percentage relationship that exists between the total amount of the Real Estate Loan installment, - including all concepts of principal, interest, expenses, commissions, insurance premiums and taxes - and the computable income of the Applicants. For calculation purposes, the installment amount will be monthlyized when the payment periodicity is bimonthly or quarterly. Similarly, computable income with a periodicity other than monthly will be treated in the same way. The calculation of computable income will be the sum of net income (after taxes and other legal deductions). In the case of self-employed workers, special attention must be paid to computing the income of the Applicant and not the income of the activity carried out by the Applicant. For example, if the Applicant is a partner of a company that operates a business, the Tax Returns or Accountant Certification of the Applicant must be considered, not those corresponding to the business. To compute net income, amounts paid by the Applicant for national, provincial or municipal taxes that tax the declared income, as well as social security contributions, must be deducted. For the purposes of calculating the total installment of the Real Estate Loan, in addition to adding the amounts corresponding to principal, interest, expenses, commissions, insurance premiums and taxes, the following guidelines must be followed:
(a) In the French System at fixed rate, the installment will be calculated using that rate.

(b) In the French System with a variable rate, the quota shall be calculated using the initial rate increased by 25% (for example, if the initial rate is 10%, 12.50% will be used). If a maximum rate is established, that maximum rate shall be used.

(c) In the German System with a fixed rate, the average of the quotas corresponding to the first 25% of the loan term shall be used.

(d) In the German System with a variable rate, the average of the quotas corresponding to the first 25% of the loan term shall be used, calculated using the initial rate increased by 25% (for example, if the initial rate is 10%, 12.50% will be used). If a maximum rate is established, that maximum rate shall be used.

(e) When other amortization systems are used, the financial entity shall use the methodology it deems appropriate, which must be justified and reflected in the information systems. Criteria similar to those described in points (a) to (d) above shall be used, to the extent applicable.

In all cases, the formula to be used for the calculation of the ratio, expressed as a percentage, shall be:
(Total Quota / Computable Income) x 100

Loan Amount / Appraisal Ratio
This is the percentage ratio between the agreed loan amount and the appraisal obtained from the property prior to the granting of the Real Estate Loan.

The appraisal value shall be that resulting from the appraisal conducted in accordance with the provisions of the Appraisal Manual, carried out within the 60 days prior to the date of loan approval.

The formula to be used for the calculation of the ratio, expressed as a percentage, shall be:
(Amount / Appraisal) x 100

For Loans for acquisition, the financial entity shall calculate the Loan Amount / Appraisal Ratio using the effective purchase price as established in the deed of transfer, if this price is lower than the appraisal value.

Total Quotas / Income Ratio
This is defined as the percentage ratio, based on the applicants' computable income, of the sum of periodic payments or quotas that the applicants are obligated to pay for financial debts, for example, personal loans, auto loans, or credit cards. Payments include principal, interest, fees, commissions, premiums, and taxes.

For credit cards or purchases, it is suggested to take 10% of the average balance of the last 10 months.

The calculation formula shall be:
(Total Quotas / Computable Income) x 100)

Asset Characteristics
For the purpose of evaluating the applicants' solvency level, not only the composition of their assets but also their debts (if any) and the payment commitments arising from them shall be considered.

The basic information to be considered includes the composition of assets and banking and commercial data. It is recommended to verify the ownership of declared real estate or vehicles and to take into account, if any, the status of the debt.

The result of this analysis shall be reflected in the Approval and Analysis Form.

Prepayments
In accordance with current law, Real Estate Loans shall be fully prepayable, under certain established conditions (penalties, expenses). Regarding partial prepayments, Real Estate Loans may be:

(a) not partially prepayable;
(b) partially prepayable under certain established conditions (penalties, expenses).

In the event that partial prepayment is permitted, information systems must register this fact.

Both total and partial prepayment (if permitted) shall follow the following guidelines:

(a) Prepayment may only be made on the due date of an ordinary quota.
(b) Prepayment may apply to (i) reduction of terms maintaining the quota; or (ii) reduction of quota maintaining the terms; or (iii) a combination of the foregoing.

Information systems must register the permitted prepayment modality.

Life Insurance
It is a requirement that Applicants be covered by a life insurance policy that meets, at a minimum, the following conditions:

(a) That it covers the Applicants for the entire life of the Real Estate Loan.
(b) That the covered amount is equal to the outstanding balance at all times of the Real Estate Loan and that in the event of a claim, it is cancelatory of the same.
(c) That the policy is issued or endorsable in favor of the financial entity or whoever may be the creditor of the Real Estate Loan in the future.
(d) That it is issued by:
1) Local insurance companies that have an “A” rating granted by one of the risk assessment companies registered in the registry of the National Securities and Reinsurance Commission and reinsurance companies abroad with that level of rating assigned by an international assessment company,
2) local branches of foreign insurance companies that have an “A” rating granted by one of the international risk assessment companies,
3) local subsidiaries of foreign insurance companies to the extent that regarding the controlling company the following conditions are verified: (i) it has the rating cited in point 2) above and (ii) it has explicitly endorsed the obligations of the subsidiary.

In the event that there is more than one Applicant, any of the following alternatives may be used:

(a) Each Applicant is insured for the entire outstanding balance of the Real Estate Loan.
(b) Each Applicant is insured for a portion of the outstanding balance based on their contribution to the computable income of the group.

In addition to life coverage, coverage for disability or unemployment may be obtained, following the guidelines established above.

Property Damage Insurance
It is a requirement that the property be covered by a damage insurance policy that meets, at a minimum, the following characteristics:

(a) That it covers the property for the entire life of the Real Estate Loan against risks of fire, total or partial destruction, vandalism, and other types of usual accidents. If the property is located in seismic zones, this risk must also be covered. (b) That the covered amount is equal to the outstanding balance at all times of the Real Estate Loan and that in the event of a claim, it is cancelatory of the same if the destruction is total. In the event of partial destructions, it may be accepted that the indemnification is destined for the reconstruction of the property.

(c) That the policy is issued or endorsable in favor of the financial entity or whoever may be the creditor of the Real Estate Loan in the future.
(d) That it is issued by:
1) local insurance companies that have an “A” rating granted by one of the risk assessment companies registered in the registry of the National Securities and Reinsurance Commission and reinsurance companies abroad with that level of rating assigned by an international assessment company.
2) local branches of foreign insurance companies that have an “A” rating granted by one of the international risk assessment companies.
3) local subsidiaries of foreign insurance companies to the extent that regarding the controlling company the following conditions are verified: (i) it has the rating cited in point 2) above and (ii) it has explicitly endorsed the obligations of the subsidiary.

Mortgage Guarantee
Real Estate Loans must be guaranteed with a first-degree privilege mortgage on real estate properties intended for housing located within the national territory.

Section II. Origination of Real Estate Loans
Origination Process
The origination process of Real Estate Loans can be summarized as follows:

(i) Submission by Applicants of the Loan Application (ii) Obtaining Commercial Reports.
(iii) Obtaining Appraisal Report.
(iv) Verification and Credit Analysis - Credit Approval.
(v) Instrumentation and Disbursement.

In this Section, each step of the origination process will be analyzed.

Loan Application
With the advice of the financial entity, Applicants must complete and sign an application that must contain, at a minimum, the information described in the form attached as Annex I to this Section.

Together with said application, Applicants must accompany all necessary supporting documentation to verify the content thereof. This shall include, at a minimum, the following elements:

-Appllicants' Identity photocopy of the identity document (DNI/LC/LE, passport).

-Applicants' Employment Information
Employed
ß photocopy of pay stubs used to calculate income ß certification of benefits, seniority, and employment with the employer's signature, certified by a banking entity or obtained directly by the financial entity ß photocopy of the CUIL

Self-Employed
ß photocopy of the operating license, professional registration, or municipal permit ß photocopy of the CUIT ß certification of monthly income for the last 24 months signed by a Public Accountant and their signature certified by the Professional Council of Economic Sciences. ß annual Income Tax return (last two) ß certificate of tax status with the D.G.I. (Form D.G.I. No. 576) ß detail of pension contributions with photocopy of the last 6 payments made.

Commercial Reports
The financial entity must request a commercial or credit report for each Applicant from a reputable information company, at the discretion of the originating financial entity.

As a general principle, Applicants with negative records will not be accepted, unless, in the opinion of the financial entity, such records lack current relevance, either due to the time elapsed or the characteristics thereof.

Appraisal Report
The financial entity must request an appraiser to prepare an Appraisal Report according to the criteria and requirements established in the Appraisal Manual. It is the responsibility of the financial entity to review, approve, and control the Appraisal Reports submitted by appraisers. This review must be reflected in the Approval and Analysis Form. In the case of appraisals performed by internal Appraisers, the financial entity must keep a record of such circumstances appropriately and ensure that the requirements established in the aforementioned Manual are met, regularly controlling, through reappraisals, a statistically reliable sample of these Appraisals.

Credit Verifications - Approval
The financial entity must evaluate the current and potential economic/financial capacity of the Applicants to generate resources that allow them to meet credit commitments in a timely manner. The intention and ability to pay of the Applicants will be evaluated.

The financial entity must verify the following circumstances:

(a) That the Applicants meet the established requirements.
(b) That the computable income has been verified with the presented documentation.
(c) That the assets declared by the Applicants have been verified with the pertinent documentation.
(d) That the commercial reports are satisfactory.
(e) That the Appraisal Report meets the established requirements and is reasonably adequate.
(f) That the entity's own credit guidelines are met.

This verification shall be recorded in an approval and analysis form that is substantially similar to that attached as Annex II to this Section.

Credit File (attached to the Customer File established by Communication “A” 2216) After completing the previous steps, a Credit File will be created containing, at a minimum (in the same order and clearly distinguishing the sections):

1st Section - Credit Application (one per holder)

Appraisal report of the property.
Construction budget (only for construction or completion destination).
Improvement budget (improvements destination only).
Approval and analysis form, signed by the acting official or responsible for the evaluation.
Information on the integration of the non-financed amount.

2nd Section - Copy of the documentation accrediting:
ß the identity of the Applicants (see “Loan Application”); ß the employment information of the Applicants (see “Loan Application”); ß applicants' sworn statement on the destination of the housing (see “Destination of the Real Estate Loan”); ß asset certification, if applicable; ß certification of balances owed to existing mortgage creditor (refinancing destination only).

3rd Section - Confidential reports for use in the market.

Commercial and banking reports.

4th Section - Procedures and calculations supporting the report prepared by the analyst.

Insurance Forms.
Proforma invoice, fees, and mortgage expenses.

5th Section - Any other documentation that the financial entity deems appropriate.

The copy of all detailed documentation must be compared with the corresponding originals.

In particular, the authenticity of pay stubs, place of work, and employment history must be verified, in the case of employees in an employment relationship, and the authenticity of declared income for self-employed workers.

Notification of Acceptance and Loan Schedule
The financial entity must commit to analyzing the credit application form within a certain period, which it will make known to the Applicant.

In the event of rejection of the loan application, it is advisable that the entity inform in writing about the exact cause that motivated the rejection.

If the application is approved, the entity must send a notification of acceptance. This notification constitutes the formal loan offer by the entity.

This notification must be accompanied by a “loan schedule”, which must contain, at a minimum, the following data:
ß entity name;
ß Applicants' data;
ß property data;
ß loan amount;
ß repayment term;
ß rate, indicating variable or fixed, time of rate fixation (at the time of the loan application, its acceptance, or the delivery of the loan); ß quotas, detailing principal and interest, periodicity, adjustable or fixed quotas; ß for loans with variable quotas:
1. initial interest rate,
2. adjustment period, index, and financial margin,
3. notice period for quota modification,
4. rate increase caps (periodic and total),

5. in the case of being able to convert variable quotas to fixed: time, price,
index used, margin;
ß prepayments and reserve funds;
ß approximate amount of closing expenses:
1. registration in the Property Registry
2. Notaries Association,
3. statistics fee Notaries Association;
4. registration pages,
5. matrix seal pages,
6. testimony,
7. notary fees,
8. municipal taxes;
ß settlement expenses:
1. commission,
2. request,
3. credit report,
4. cadastral relief,
5. real estate commission,
6. appraisal,
7. surveying;
ß any other loan processing expenses;
ß charge for early cancellation;
ß permitted prepayment mechanism, conditions, and expenses; delay in disbursement from the formalization of the loan.

In all items representing expenses, it will be clearly stated who will bear them (the entity or the Applicants) and at what time these expenses must be integrated.

In cases where the amount of an item is not known with certainty, an estimate based on the information possessed by the provider at that time will be stated, which will be duly clarified.

From the moment the Applicant receives the notification of acceptance and the “loan schedule”, they will be informed of a certain period within which they have to accept the offer (which will be expressed through the submission of the loan schedule signed by the Applicants) and formalize the loan.

In the event of modification of the mortgage credit contract or refinancing, a similar “loan schedule” must be delivered before the formalization of the new conditions.

A model of the mortgage credit contract must be delivered to the Applicant together with the loan schedule.

No expenses may be charged to the debtor in relation to the mortgage loan that are not provided for in the mortgage credit contract.

It is recommended that the financial entity provide some type of information and advice on all aspects involved in the process of acquiring a property, especially in the case of those who acquire their housing for the first time.

Instrumentation and Disbursement
After the credit analysis, approval by the financial entity of the granting of the loan, and acceptance of the conditions by the Applicants, the instrumentation and disbursement of the Real Estate Loan will proceed using the model contract established in Annex III, the content of which must be interpreted as indispensable and unmodifiable text.

Legal File (attached to the Customer File, Communication “A” 2216) After disbursement, a legal file (which may also be a section of the credit file) must be created containing, at a minimum, the following documentation:

(a) Deed of the credit contract with mortgage guarantee, duly registered in the respective registries, in testimony for the mortgage creditor.
(b) Testimony of the respective title of ownership (if not included in the previous instrument) (c) Life and damage insurance policies (disability and unemployment, if any), duly endorsed in favor of the mortgage creditor, or certificate of coverage within a global policy. (d) Copy of the documentation added by the intervening notary to the deed of the mortgage credit contract, including but not limited to certificates of ownership and injunctions, clear debts, and other pertinent documentation.

The annexes to the Customer File may be physically separated as long as what is provided by Communication “A” 2216 is met.

Audits and Quality Control
It shall be the obligation of each financial entity to implement a quality control system neutral and independent of the origination procedures, which may be carried out jointly with Internal Audit by personnel who do not participate in the functions of origination, approval, or administration of Real Estate Loans.

The objective of quality control is to ensure that the established procedures have been applied correctly and that the originated loans meet the relevant requirements and approvals. The quality control system must provide for a) the detection of discrepancies between actual and established procedures, and b) the taking of corrective measures in a timely manner.

Quality control must include the review of a statistically reliable sample of loans, the dimension of which must be a function of the total volume of Real Estate Loans. Within the sample, the following must be performed:

(a) the review of credit and legal files, verification of the existence and accuracy of the documentation regarding the property and credit and legal aspects; (b) the evaluation of the quality of property appraisals;

(c) the evaluation of credit decisions;
(d) inspections of properties to verify compliance with the destination of the loans; (e) request for certificates of ownership to verify the correct registration of mortgage guarantees.

Quality control must be constant and permanent, with a level of review that ensures statistical reliability of the sample performed.

MORTGAGE CREDIT APPLICATION
CREDIT CODE OR IDENTIFICATION NUMBER:
TITULIZED CREDIT CODE OR NUMBER:
HOLDER GUARANTOR
I. MORTGAGE LOAN TERMS AND CONDITIONS
AMOUNT GRANTED INTEREST RATE TERM (NUMBER OF MONTHS) AMORTIZATION SYSTEM FRENCH GERMAN OTHERS (DETAIL) AMOUNT OF THE FIRST MONTHLY QUOTA $ % $
II. PERSONAL DATA
SURNAME AND NAMES (AS APPEARS ON IDENTITY DOCUMENT) HOME PHONE (INCLUDE INTERURBAN CODE DATE OF BIRTH SEX RESIDENT IN THE COUNTRY M F YES NO NATIONALITY DOCUMENT NUMBER MAXIMUM EDUCATIONAL LEVEL COMPLETED LE LC DNI PRIMARY SECONDARY TERTIARY UNIVERSITY PROFESSION MARRIED/SEPARATED SINGLE/DIVORCED FAMILY DEPENDENTS (NOT INCLUDED BY CO-DEBTOR/GUARANTOR) NUMBER OF FAMILY DEPENDENTS: ______ AGES:______ RELATIONSHIP: ______ WIDOWED/DE FACTO UNION TAX AND/OR PENSION IDENTIFICATION NUMBER TAX POSITION (VAT) CUIT CUIL REGISTERED NOT REGISTERED EXEMPT FULL NAME SPOUSE AS PER IDENTITY DOCUMENT POSTAL ADDRESS (COMPLETE IF DIFFERENT FROM CURRENT) (STREET AND NUMBER, FLOOR, APARTMENT NUMBER, LOCALITY, PROVINCE, POSTAL CODE) CURRENT ADDRESS OWNED RENTED NUMBER OF YEARS: ______ (STREET AND NUMBER, FLOOR NUMBER, APARTMENT. LOCALITY, PROVINCE, POSTAL CODE
III. EMPLOYMENT INFORMATION
EMPLOYER NAME AND ADDRESS SENIORITY
FIXED CONTRACTED
SELF-EMPLOYED SENIORITY IN THE ACTIVITY/PROFESSION POSITION/TITLE/COMMERCIAL BRANCH COMMERCIAL PHONE NUMBER (INCLUDE INTERURBAN CODE) EMPLOYER NAME AND ADDRESS SENIORITY FIXED CONTRACTED SELF-EMPLOYED SENIORITY IN THE ACTIVITY/PROFESSION POSITION / TITLE / COMMERCIAL BRANCH COMMERCIAL PHONE NUMBER (INCLUDE INTERURBAN CODE) COMPLETE IF HAVING A SENIORITY OF LESS THAN FIVE YEARS IN POSITION EMPLOYER NAME AND ADDRESS DATE (FROM / TO) NET MONTHLY INCOME $ SELF-EMPLOYED POSITION / TITLE / COMMERCIAL BRANCH COMMERCIAL PHONE NUMBER (INCLUDE INTERURBAN CODE) EMPLOYER NAME AND ADDRESS DATE (FROM / TO) NET MONTHLY INCOME $ SELF-EMPLOYED POSITION / TITLE / COMMERCIAL BRANCH COMMERCIAL PHONE NUMBER (INCLUDE INTERURBAN CODE) EMPLOYER NAME AND ADDRESS DATE (FROM / TO) NET MONTHLY INCOME $ SELF-EMPLOYED POSITION / TITLE / COMMERCIAL BRANCH COMMERCIAL PHONE NUMBER (INCLUDE INTERURBAN CODE) SIGNATURE AND CLARIFICATION DATE:

MORTGAGE LOAN APPLICATION
IV. MONTHLY INCOME AND MONTHLY HOUSING EXPENSES
TOTAL HOUSING EXPENSES CURRENTLY BUDGETED
DEBTOR
GUARANTOR
MONTHLY INCOME (1)
APPLICANTS APPLICANTS (3) (4)
NET MONTHLY SALARY/INCOME
ANNUAL BONUS/SALARY (DIVIDED BY TWELVE)
COMMISSIONS (AVERAGE LAST 12 MONTHS)
INCOME FROM RENTALS (AVERAGE LAST 2 YEARS)
BONUSES (AVERAGE LAST 2 YEARS)
OTHERS
TOTAL
RENT
MONTHLY MORTGAGE LOAN PAYMENT (PRINCIPAL+INTEREST) VAT (IF APPLICABLE) PROPERTY INSURANCE LIFE AND DISABILITY INSURANCE REAL ESTATE TAXES EXPENSES (MAINTENANCE FEES) OTHER MONTHLY PAYMENTS (2) TOTAL DESCRIPTION OTHER INCOME/EXPENSES NET MONTHLY AMOUNTS THE UNDERSIGNED HEREBY DECLARES UNDER OATH THAT TO THE BEST OF THEIR KNOWLEDGE THERE IS NO CAUSE OR REASON THAT COULD PRODUCE A SIGNIFICANT REDUCTION IN THEIR INCOME (1) ALL ITEMS TO BE EXPRESSED IN NET MONTHLY AMOUNTS. (2) INCLUDES ALL ITEMS DETAILED IN THE SECTION AND CORRESPONDING TO LIABILITIES. (3) TO BE COMPLETED IN THE DEBTOR'S APPLICATION. SIGNATURE AND CLARIFICATION: DATE:

MORTGAGE LOAN APPLICATION
V. ASSETS AND LIABILITIES
COMPLETE ONLY JOINTLY IF CO-DEBTOR IS SPOUSE; IN ALL OTHER CASES, COMPLETE SEPARATE FORMS FOR EACH CO-DEBTOR AND GUARANTOR ASSETS DESCRIPTION MARKET VALUE CASH MARKET VALUE LIABILITIES AND LOANS WITH REAL GUARANTEE: DETAIL THE NAME OF THE CREDITOR, ADDRESS, ACCOUNT NUMBERS, AND BALANCES OF ALL LIABILITIES, INCLUDING PLEDGE LOANS FOR AUTOMOBILES, CREDIT CARDS, LOANS FOR HOUSING, JUDICIAL SENTENCES (FOR EXAMPLE, FOR ALIMONY), PLEDGES ON SHARES, LOANS GRANTED BY THE EMPLOYER, GUARANTEES GRANTED, ETC., USE THE SUPPLEMENTARY SHEET OF THIS APPLICATION IF NECESSARY, INDICATE WITH AN ASTERISK (*) THE LIABILITIES THAT WILL BE CANCELLED BY THE SALE OF OWN REAL ESTATE OR BY THE REFINANCING OF THE MORTGAGE DEBT HOLDER OF OWN FUNDS:
$
DETAIL CURRENT ACCOUNTS AND SAVINGS BOXES BELOW LIABILITIES MONTHLY LIABILITIES AND REMAINING INSTALLMENTS DEBT BALANCE NAME AND ADDRESS OF FINANCIAL INSTITUTION NAME AND ADDRESS OF CREDITOR USE OF FUNDS ACCOUNT NUMBER: $ ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
NAME AND ADDRESS OF FINANCIAL INSTITUTION NAME AND ADDRESS OF CREDITOR USE OF FUNDS ACCOUNT NUMBER: $ ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
NAME AND ADDRESS OF FINANCIAL INSTITUTION NAME AND ADDRESS OF CREDITOR USE OF FUNDS ACCOUNT NUMBER: $ ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
NAME AND ADDRESS OF FINANCIAL INSTITUTION NAME AND ADDRESS OF CREDITOR USE OF FUNDS ACCOUNT NUMBER: $ ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
SHARES AND SECURITIES (HOLDER, NAME AND ADDRESS OF CREDITOR ACCOUNT NUMBER, AMOUNT) $ USE OF FUNDS:
SUBTOTAL LIQUID ASSETS
$ ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
REAL ESTATE (ENTER CURRENT TOTAL MARKET VALUE AS PER DETAIL ON NEXT SHEET) USE OF FUNDS:
ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
NAME AND ADDRESS OF CREDITOR
BUSINESS EQUITY (AS PER ATTACHED BALANCE SHEETS) $ USE OF FUNDS:
ACCOUNT NUMBER:
MONTHLY PAYMENTS IN $ $
AUTOMOBILES
(MAKE, MODEL, YEAR)
$
JUDICIAL SENTENCES (FOR EXAMPLE, PAYMENT OF ALIMONY INSTALLMENT) $ (OTHER ASSETS DETAIL) $ OTHER LIABILITIES (DETAIL):
TOTAL MONTHLY PAYMENTS $\nTOTAL ASSETS (A): $ EQUITY (A-B) $ TOTAL LIABILITIES (b) $ SIGNATURE AND CLARIFICATION: DATE: SIGNATURE CO-DEBTOR AND CLARIFICATION DATE (IF CO-DEBTOR IS SPOUSE)

MORTGAGE LOAN APPLICATION
V. ASSETS AND LIABILITIES (CONTINUATION)
DETAIL OF OWN REAL ESTATE LISTED ON THE PREVIOUS PAGE, IN ASSETS (IF MORE SPACE IS REQUIRED, DETAIL ON THE SUPPLEMENTARY SHEET OF THIS APPLICATION).
PROPERTY ADDRESS
("PV" IF IT IS FOR SALE OR "A" IF IT GENERATES RENTAL INCOME) PV A TYPE OF PROPERTY CURRENT MARKET VALUE BALANCE OF DEBT WITH REAL GUARANTEES GROSS RENTAL INCOME MONTHLY MORTGAGE INSTALLMENTS INSURANCE MONTHLY EXPENSES TAXES, ETC. MONTHLY NET RENTAL INCOME $ $ $ $ $ $ TOTALS $ $ $ $ $ $
VI. PROPERTY INFORMATION AND USE OF FUNDS
ADDRESS OF THE PROPERTY TO BE MORTGAGED (STREET AND NUMBER, FLOOR, APARTMENT NUMBER, LOCALITY, PROVINCE, POSTAL CODE) TYPE OF PROPERTY DESCRIPTION OF THE PROPERTY (IF NECESSARY, USE SUPPLEMENTARY SHEET) YEAR OF CONSTRUCTION COVERED SPACE (SQUARE METERS) LAND (SQUARE METERS) VALUE (Estimated) DESTINATION OF THE LOAN DESTINATION OF THE PROPERTY ACQUISITION IMPROVEMENTS REFINANCING CONSTRUCTION OR TERMINATION PERMANENT RESIDENCE NON-PERMANENT RESIDENCE OTHERS (DETAIL) COMPLETE THE LINE BELOW IF THE USE OF FUNDS IS FOR IMPROVEMENTS YEAR OF PURCHASE/ CONSTRUCTION ACQUISITION PRICE COST $ BALANCE OF EXISTING MORTGAGES $ ESTIMATED VALUE $ ESTIMATED COST IMPROVEMENTS (ATTACH QUOTATION) $ COMPLETE THE LINE BELOW IF THE USE OF FUNDS IS FOR REFINANCING YEAR OF PURCHASE/ CONSTRUCTION ACQUISITION PRICE/COST $ AMOUNT OF EXISTING MORTGAGES $ BALANCE OF CAPITAL OWED $ NEXT MONTHLY INSTALLMENT $ REASONS FOR REFINANCING OWNER/S OF THE TITLE OF OWNERSHIP FINANCING MODALITY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND THE AMOUNT REQUESTED WILL BE FINANCED WITH:
LOAN SAVINGS OTHERS
IF IT IS A LOAN, COMPLETE BELOW
AMOUNT CREDITOR TOTAL TERM IN MONTHS MONTHLY INSTALLMENT SOURCE OF OWN FUNDS (DETAIL):
THE UNDERSIGNED DECLARES THAT OWN FUNDS DO NOT COME FROM ADDITIONAL INDEBTEDNESS SIGNATURE AND CLARIFICATION: DATE:

MORTGAGE LOAN APPLICATION
VII. DECLARATIONS
UPON COMPLETING THE FOLLOWING QUESTIONS, IF ANSWERING "YES" TO ANY FROM "A" TO "I" PLEASE EXPLAIN IN DETAIL ON THE SUPPLEMENTARY SHEET OF THIS APPLICATION. IF NOT A. DO YOU HAVE ANY PENDING LEGAL CAUSE? B. HAVE YOU EVER BEEN DECLARED BANKRUPT OR DECLARED IN INSOLVENCY?
C. HAVE YOUR ASSETS BEEN EXECUTED OR HAVE YOU BEEN A CO-DEBTOR/GUARANTOR OF A LOAN THAT ENDED WITH THE EXECUTION OF THE GUARANTEED ASSETS?
(INCLUDES MORTGAGE LOANS, PLEDGE LOANS, GUARANTEES ETC., IF AFFIRMATIVE, DETAIL ON THE SUPPLEMENTARY SHEET OF THIS APPLICATION, DATE, NAME AND ADDRESS OF THE CREDITOR AND THE REASON FOR THE ACTION) D. ARE YOU A PARTY TO A LAWSUIT? E. HAVE YOU EVER BEEN ASKED FOR A GENERAL INHIBITION OF ASSETS? F. HAVE YOU EVER SUFFERED A SEIZURE? G. ARE YOU IN DEFAULT WITH ANY FINANCIAL, MUNICIPAL, FISCAL, SOCIAL SECURITY, ETC. DEBT? IF AFFIRMATIVE, DETAIL ON THE SUPPLEMENTARY SHEET OF THIS APPLICATION. H. DO YOU HAVE LIABILITIES AS A RESULT OF JUDICIAL SENTENCES (FOR EXAMPLE, PAYMENT OF ALIMONY INSTALLMENT)?
I. DO THE OWN FUNDS REQUIRED FOR THE ACQUISITION OF THE REAL ESTATE AND WHICH WILL NOT BE PROVIDED BY THIS APPLICATION, COME FROM ADDITIONAL INDEBTEDNESS?
J. HAVE YOU ISSUED OR ENDORSED A PROMISSORY NOTE?
K. WILL THE DESTINATION OF THE PROPERTY GIVING RISE TO THIS APPLICATION BE FOR PERMANENT RESIDENCE?
VII. ACCEPTANCE AND AGREEMENT
THE UNDERSIGNED ACCEPT AND AGREE THAT: 1) THE LOAN, OBJECT OF THIS APPLICATION, WILL BE GUARANTEED WITH A FIRST-RANK MORTGAGE ON THE PROPERTY DESCRIBED HEREIN; 2) THE PROPERTY WILL NOT BE USED FOR ILLEGAL PURPOSES OR DIFFERENT FROM THOSE STATED HEREIN, 3) ALL DATA AND DECLARATIONS CONTAINED IN THIS APPLICATION ARE MADE SOLELY FOR THE PURPOSE OF QUALIFYING FOR THE REQUIRED LOAN; 4) THE USE THAT WILL BE GIVEN TO THE PROPERTY IS AND WILL BE THAT INDICATED IN THIS APPLICATION, 5) THE VERIFICATION AND SUBSEQUENT VERIFICATION OF THE DATA CONTAINED IN THIS APPLICATION MAY BE CARRIED OUT AT ANY TIME BY THE CREDITOR, ITS AGENTS, SUCCESSORS, AND ASSIGNS, DIRECTLY OR THROUGH THOSE PERSONS OR ENTITIES DESIGNATED BY THEM. THE ORIGINAL COPY OF THIS APPLICATION WILL BE RETAINED BY THE CREDITOR, EVEN IF THE LOAN IS DENIED. 6) THE CREDITOR, ITS AGENTS, SUCCESSORS, AND ASSIGNS BASE THEIR CREDIT DECISION ON THE INFORMATION CONTAINED HEREIN, THEREBY WE COMMIT TO COMMUNICATE ANY MODIFICATION AND KEEP IT UPDATED, 7) IN THE EVENT THAT INSTALLMENTS ARISING FROM THE FOLLOWING APPLICATION ARE IN DEFAULT, THE CREDITOR, ITS AGENTS, SUCCESSORS, AND ASSIGNS MAY, IN ADDITION TO TAKING ALL MEASURES THEY CONSIDER APPROPRIATE, SUPPLY OUR NAME/S TO CREDIT RATING AGENCIES: 8) THE CREDITOR MAY TRANSFER OWNERSHIP OF THE LOAN (TO ITS AGENTS, SUCCESSORS, AND ASSIGNS) AS WELL AS ITS ADMINISTRATION WITHOUT THE NEED FOR ANY COMMUNICATION TO THE DEBTOR, CO-DEBTOR/S, OR GUARANTOR/S: 9) THE CREDITOR, ITS AGENTS, SUCCESSORS, AND ASSIGNS HAVE NOT INDUCED IN ANY WAY THE DEBTOR, CO-DEBTOR/S, OR GUARANTOR/S TO REQUEST THE LOAN OBJECT OF THIS PRESENT. NOR HAVE THEY ADVISED ON THE PRICE OF THE REAL ESTATE NOR GUARANTEED THE PRICE THEREOF. CERTIFICATION: THE UNDERSIGNED CERTIFY UNDER OATH THAT THE DATA CONTAINED IN THIS APPLICATION ARE CORRECT AND EXACT AS OF THE DATE STATED AT THE FOOT OF THIS PRESENT. WE ALSO MAKE OURSELVES LEGALLY RESPONSIBLE TO ANY PERSON FOR ANY DAMAGE THAT MIGHT BE CAUSED BY INFORMATION THAT HAS BEEN ERRONEOUSLY PROVIDED INTENTIONALLY OR NEGLIGENTLY.
IV. INSTITUTION INFORMATION
INSTITUTION CODE BRANCH CODE
CREDIT CODE
(LAST NAME AND FIRST NAMES)
SIGNATURE AND CLARIFICATION: DATE:

SUPPLEMENTARY SHEET MORTGAGE LOAN APPLICATION
USE THIS SUPPLEMENTARY SHEET IF YOU NEED ADDITIONAL SPACE TO COMPLEMENT THE MORTGAGE LOAN APPLICATION SIGNATURE AND CLARIFICATION: DATE:

ANNEX II
APPROVAL AND ANALYSIS SHEET
CODE OR IDENTIFICATION NUMBER CREDIT IDENTIFICATION CODE OR CREDIT NUMBER TITILIZED CREDIT
I. DEBTOR/PROPERTY DATA
DOCUMENT NUMBER
LE LC DNI
DEBTOR NAME
CO-DEBTOR/GUARANTOR NAME DOCUMENT NUMBER
LE LC DNI
DOCUMENT NUMBER
LE LC DNI
CO-DEBTOR/GUARANTOR NAME
PROPERTY ADDRESS
TYPE OF PROPERTY DESTINATION OF THE PROPERTY
PERMANENT RESIDENCE NON-PERMANENT RESIDENCE
PURCHASE PRICE (if applicable)
$
PURCHASE PRICE PER SQUARE METER (if applicable) $ APPRAISAL VALUE $
II. REAL ESTATE LOAN AND INSURANCE DATA
AMORTIZATION SYSTEM PURPOSE OF THE LOAN
FRENCH GERMAN ACQUISITION IMPROVEMENT REFINANCING OTHERS CONSTRUCTION OR TERMINATION OTHERS DETAIL ANY MODIFICATION TO THE MORTGAGE LOAN AGREEMENT AGREED AMOUNT $ RATE FIXED CURRENCY DATE OF GRANTING (DEED) VARIABLE INDEX______ DATE OF FIRST DISBURMENT MARGIN ______ ADJUSTMENT PERIOD______ TERM (IN MONTHS) DRAG PERIOD (DAYS) ______ MAXIMUM RATE______ PERIODICITY MINIMUM RATE ______ MAXIMUM ADJUSTMENT ______ GRANTING FEES AND EXPENSES $ MAXIMUM INSTALLMENT______ INITIAL INSTALLMENT $ FEES (IF APPLICABLE) INITIAL INTEREST RATE % ADVANCED $ ______ PERIODIC $ ______ PERIOD______ MATURITY DATE FIRST INSTALLMENT PREPAYMENT (POSSIBILITY AND METHOD IN CODIFIED FORM) MATURITY DATE LAST INSTALLMENT AMOUNT OF REFINANCING (IF APPLICABLE) PROPERTY INSURANCE LIFE INSURANCE INSURANCE COMPANY INSURANCE COMPANY PREMIUM INSURED AMOUNT $ PREMIUM ADVANCED $ ADVANCED $ PERIODIC $ PERIOD PERIODIC PERIOD INSURED AMOUNT $
III. CREDIT APPROVAL DATA
OFFICIAL CREDIT NAME INTERNAL EXTERNAL
NAME/NUMBER APPRAISER NAME OF APPRAISING COMPANY NOTARY PUBLIC INTERVENING IN THE MORTGAGE CONTRACT DEED REGISTRATION OF THE MORTGAGE GUARANTEE (DATE AND REGISTRY) CREDIT REPORT (COMPANY) NET COMPUTABLE INCOME (VERIFIED BY CREDITOR) DEBTOR CO-DEBTOR(2) TOTAL(2) MONTHLY HOUSING EXPENSES (VERIFIED BY THE CORRESPONDING FINANCIAL INSTITUTION FOR THE DEBTOR AND CO-DEBTOR $ SALARY/MONTHLY INCOME MONTHLY INSTALLMENTIZED LOAN REAL ESTATE LOAN (PRINCIPAL + INTEREST) (1) SAC (DIVIDED BY TWELVE) VAT (IF APPLICABLE) COMMISSIONS (MONTHLY AVERAGE) PROPERTY INSURANCE LIFE AND DISABILITY INSURANCE SUBTOTAL MONTHLY INSTALLMENTIZED LOAN REAL ESTATE LOAN (B) OTHER MONTHLY PAYMENTS TOTAL MONTHLY INSTALLMENTIZED PAYMENTS (C) INCOME FROM RENTALS (AVERAGE MONTHLY LAST 2 YEARS) BONUSES (AVERAGE MONTHLY LAST 2 YEARS) OTHERS TOTAL:
(A)
REAL ESTATE TAXES
EXPENSES
(1) ACCORDING TO GUIDELINES ESTABLISHED IN ITEM "INSTALLMENT/INCOME RATIO" OF SECTION 1.
(2) IF THERE IS MORE THAN ONE CO-DEBTOR, INCLUDE THE SUM OF THE INCOME OF EACH CO-DEBTOR IN THIS COLUMN AND SHOW SEPARATELY THE DETAIL OF EACH CO-DEBTOR ON THE SUPPLEMENTARY SHEET OF THIS FORM; IN THE CASE OF ONE OR MORE GUARANTORS, DO NOT INCLUDE THEIR INCOME IN THE TOTALS COLUMN; DETAIL THEM ON THE SUPPLEMENTARY SHEET OF THIS FORM.

APPROVAL AND ANALYSIS SHEET
RELATIONSHIPS
SUBTOTAL MONTHLY INSTALLMENT ON INCOME B/A
TOTAL INSTALLMENTS ON INCOME C/A
AMOUNT OF CREDIT ON APPRAISED VALUE (OR
PURCHASE THE LOWER)
%
BANK ORIGINATOR VERIFICATION CONTROL: YES NO
APPRAISAL: VERIFIED AND APPROVED?
APPRAISAL: APPROVED WITH MODIFICATIONS?
APPRAISAL: A SECOND APPRAISAL WAS REQUESTED?
LIFE AND DISABILITY INSURANCE: IS THERE SATISFACTORY EVIDENCE?
PROPERTY INSURANCE: IS THERE SATISFACTORY EVIDENCE?
ASSETS: WERE THEY SATISFACTORILY VERIFIED?
INCOME AND LABOR INFORMATION: WERE THEY SATISFACTORILY VERIFIED?
DO THE INFORMATION PROVIDED BY REPORTING AGENCIES SHOW HISTORY OF DEFAULT, DISQUALIFICATIONS, ACCOUNT CLOSURES, BANKRUPTCIES, OR ANY OTHER NEGATIVE CIRCUMSTANCE? (IF "YES", ATTACH EXPLANATION) IS THE DEBTOR A PREVIOUS CLIENT OF THE FINANCIAL INSTITUTION? COMMENTS FROM THE ORIGINATING FINANCIAL INSTITUTION (IF MORE SPACE IS REQUIRED, CONTINUE ON SHEET TWO)
IV. OPERATION DETAILS
$
$
A. PURCHASE PRICE
B. MODIFICATIONS, IMPROVEMENTS, REPAIRS (IF APPLICABLE)
C. LAND (IF ACQUIRED SEPARATELY)
D. REFINANCING (INCLUDE TOTAL DEBT TO BE CANCELLED) E. APPLICATION AND APPRAISAL FEES F. LOAN GRANTING COMMISSION G. INSURANCE PREMIUMS PAID AT DISBURSEMENT H. ESTIMATED CLOSING COSTS, NOTARY, TAXES, OTHER FEES, ETC.
I. TOTAL COSTS (SUM OF "A" THROUGH "H" INCLUSIVE)
J. LOAN AMOUNT EXCLUDING LOAN GRANTING COMMISSION, INSURANCE PREMIUMS PAID, AND OTHER FEES (IF APPLICABLE) K. LOAN GRANTING COMMISSION, INSURANCE PREMIUMS PAID, AND OTHER FEES IF DEDUCTED FROM THE LOAN
L. LOAN AMOUNT (J-K)
ADDITIONAL FINANCING (L-I) $
V. FINANCIAL INSTITUTION DATA
NAME OF FINANCIAL INSTITUTION DATE
BRANCH ADDRESS
OFFICIAL CREDITS (NAME / CODE) FINANCIAL INSTITUTION CODE BRANCH CODE CONTACT PERSON CONSULTATION POSITION OF CONTACT PERSON TELEPHONE CONTACT PERSON
VI. ADDITIONAL COMMENTS FROM CREDIT OFFICER
VII. INTERNAL APPROVALS OF THE FINANCIAL INSTITUTION
SIGNATURES: DATE:

SUPPLEMENTARY SHEET / APPROVAL AND ANALYSIS SHEET USE THIS SUPPLEMENTARY SHEET IF YOU NEED ADDITIONAL SPACE TO COMPLETE THE APPROVAL AND ANALYSIS SHEET

Section III. Administrative Procedures
Generalities
Once the real estate loan is disbursed, the originating financial institution becomes the administrator of the loan. The main functions of the administrator can be summarized as follows:
(a) the collection of periodic installments of principal, interest, and other accessories (commissions, expenses, insurance premiums, taxes); (b) the control of the use of funds according to the declared destination. This aspect is of fundamental importance in the case that the destination of the loan is construction or termination; to this end, the financial institution must implement a system of construction progress control through periodic visits or inspections or by using construction certificates. (c) maintenance of adequate records of collections; (d) maintenance and monitoring of insurance policies (life insurance and property insurance); (e) processing of compensation claims for accidents; (f) processing of prepayments; (g) monitoring and regularization of default; (h) carrying out mortgage executions and auctions; (i) maintenance of complete files and records of each loan; (j) maintenance of complete, updated, and precise accounting records. Administration Folder (attached to the Customer File, Communication "A" 2216) The administrator must keep an Administration Folder in which the following is stored:
(a) All communications sent to the Applicants or received from them.
(b) All documentation related to the loan that originates after the disbursement of the same, such as contractual modifications.
(c) Record of telephone calls or visits to the Applicants, if any.
(d) Updated Appraisal Reports, if any.
(e) Construction certificates, if applicable.

(f) Documentation related to default, execution, and auction.
(g) Loan cancellation documentation.
Collection of Installments
The administrator must perform the following activities:
(a) with reasonable advance notice of the installment due date, inform the Applicants of the amount, due date, applicable interest rate (for variable loans), additional amounts to the pure principal and interest installment to be paid, principal balance, and all other data intended to supply the debtor with all necessary information (place and time of payment, for example). (b) receive and impute payments made by the Applicants. Other Administrator Tasks Furthermore, the administrator must at minimum:
(a) monitor life and property (and disability and unemployment if any) insurance to ensure that at all times the Applicants and the property are covered against the insured risks.
(b) In the event of an accident, file the relevant claims with the respective insurance companies.
(c) Collect life insurance indemnities and apply them to the total or partial cancellation of the loan, as applicable.
(d) In the case of property accidents, determine whether the received indemnities should be applied to the repair or restoration of the property or to the cancellation of the loan.
(e) Control the compliance with other non-monetary obligations assumed by the Applicants, such as the use of funds. In some cases, to carry out this control, the administrator must order property inspections to determine construction progress or improvements, property occupancy, and compliance with laws and regulations. (f) When the case arises, determine the fulfillment of conditions to carry out voluntary prepayments by the debtor and apply the received funds according to the agreed modality. (g) Make modifications to the loan terms and conditions that are agreed upon with the debtor and are acceptable according to the guidelines of this Manual.

(h) Control and supervise the expropriation process of the property, if any, controlling and approving negotiations that the debtor carries out with intervening public entities.
(i) Keep debtor data permanently updated, such as address, personal and work phone.
(j) Monitor and regularize default according to what is established in this Manual.
(k) Verify by reliable statistical sampling the compliance by the Applicants with the payment of taxes, fees, contributions, and services whose non-payment generates a real right in favor of third parties. Administration and monitoring of payment delays. To carry out adequate monitoring and regularization of delays, the administrator must take into account the following general guidelines:
(a) The administrator must use their best efforts to collect monthly payments upon maturity, according to the loan conditions. b) In the event of payment delay, the administrator must maintain immediate, direct, and frequent contact with the Debtor, Co-Debtor, and Guarantor, as applicable, in order to remedy such breach as soon as possible. (c) Whenever feasible or advisable, communication with the Debtor must include personal interviews with them. (d) All administration tasks regarding the monitoring of delays must be fully documented and safeguarded in the Administration Folder.
Schedule for Administration of Accounts with Delays
Immediate contact once a payment delay occurs is one of the keys to achieving regularization. The schedule detailed below contains guidelines aimed at this end, which the administrator may and must adapt to the particular circumstances of each concrete case, including modifications to terms and conditions, regularization agreements, and delays, forgiveness of penalty interest, and other common practices. (a) As soon as a delay occurs (for example, within two to five days thereafter), the administrator must contact the Debtor and/or Co-Debtor and/or Guarantor by telephone and inform them that according to the administrator's records, the payment has not been made. The administrator must keep a record of telephone calls (date and time of the call, response of the Debtor/Co-Debtor, any payment promise made, etc.), which will be included in the Administration Folder. (b) Within thirty days after the default, the administrator must continue with contacts with the Debtor and, if they deem it convenient, send one

informing them (i) that the administrator's records indicate a failure to pay and (ii) the amounts owed. If no response is obtained, a formal communication must be sent.
Likewise, the Debtor may be requested to appear at the administrator's offices to explain the reasons for the default.
(c) From thirty days after the default, the administrator must contact the Debtor to claim payment and warn them that if payment is not made immediately or within an agreed timeframe, actions will be initiated to execute the mortgage guarantee. (d) Within sixty days after the default, it is suggested that the administrator conduct a first inspection of the property. (e) From ninety days after the default, the administrator may initiate execution actions, unless negotiations with the debtor are underway.

Execution Procedure
In the event that activities aimed at regularizing the default do not produce results, or if due to particular circumstances of the case it is determined that regularization efforts will be fruitless, the administrator will initiate mortgage execution proceedings. As a general criterion, the procedure provided for in Law 24.441, Title V, shall be applied, unless the characteristics of the case determine that it is not advisable to use said procedure and judicial execution is chosen. The administrator must use professionals specialized in this type of procedure, especially lawyers and public notaries. Among the activities recommended to the administrator are:
(a) Conducting frequent inspections of the property to establish its condition.
(b) Conducting one or more Appraisal Reports.
(c) Once possession of the property is obtained, taking precautions for its custody and conservation, including maintaining insurance and paying taxes.
(d) Keeping records of the various procedures carried out and safeguarding them together with the respective documentation in the Administration Folder.

Proceeds from Execution
The proceeds from the execution shall be destined to pay the amounts owed under the loan, the expenses and fees incurred during the same, and, if there is a surplus, it must be reimbursed to the debtor.

Section IV. Information Systems
Generalities
Given the volumes of information, it is strictly necessary that it be managed in an informalized manner. Each entity may use the systems it deems most convenient, provided they allow data to be easily transferred to a magnetic medium in "text", "ascii" format or a highly compatible database. For each loan, there are two types of information:
(a) Reference information, which describes the general characteristics of the loan and the socioeconomic data of the Applicants and the property; and (b) Installment information, which shows the development of the loan installments and the payments made by the debtor. Each financial entity may develop its database in the manner it deems most convenient, provided that the requirements established in this Manual are met. The fields detailed in this section as Installment Information, plus the fields appearing in the attached forms as Annexes I and II to Section II are the minimum that said bases must contain, each financial entity being able to add those it deems convenient. The financial entity must develop supporting documentation for the databases, including the definitions of each field and the codes used.

Installment Information
The installment database must contain the development of all installments corresponding to the loan in question, with each installment being a record of said database. For each record, the following fields must be included:
Loan Identification Number
Installment Number The installment number that corresponds.
Due Date Established due date of the installment.
Installment Amount Indicate capital, interest, expenses, premiums, taxes and other charges, disaggregated and totaled.
Current Interest Rate Indicate the nominal annual rate applied for the calculation of the installment.
Amount Paid Indicate the amount paid by the debtor, Payment Date Indicate the date of effective payment made by the debtor.
Capital Balance Indicate the capital balance once the installment has been paid.
Remaining Term in Months This field must reflect the updated remaining term, expressed in months.
Modification of Terms Indicate if the original terms were modified after granting.
Amount of Next Installment Indicate capital, interest, expenses, premiums, taxes and other charges, disaggregated and totaled, of the next installment due.
Current Status of the Loan Indicate if it is in normal situation, with delays of up to 30 days, delays from 31 to 60 days, delays over 60 days, in execution and cancelled.
Default History Indicate the number of times delays of up to 30 days, from 31 to 60 days and over 60 days have occurred.
Prepaid Amount Indicate the amounts of capital prepaid by the debtor with this installment.

B.C.R.A. STANDARDIZATION OF MORTGAGE LOANS
ON RESIDENTIAL PROPERTY
ANNEX II
TO
COM. “a” 2563
APPRAISAL MANUAL

Introduction
The objective of this Appraisal Manual (the "Manual") is to provide financial entities (the "Originators") participating in the market for granting real estate loans on residential properties (the "Real Estate Loans") and companies or persons dedicated to the appraisal of said properties (the "Appraisers") with the criteria, guidelines and elements necessary to carry out the appraisal process (the "Appraisal"). The Manual describes, first of all, the criteria and guidelines to be used in the Appraisal that Appraisers must follow and which will be the responsibility of the Originators to supervise and control. In general terms, it is established as a guideline that the Appraisal must be carried out by determining the market value of the appraised property, which will arise from the use of the comparable properties method, as described in detail below. The second part of the Manual contains the field-by-field explanation of the Appraisal Report, which is the standard form of mandatory use by Appraisers. The use of a single form contributes significantly to the standardization of the Real Estate Loan origination process and ensures uniformity of criteria among different Appraisers. It will be the responsibility of the Originators to use Appraisers who meet the following qualifications:
ß That they are registered in the records that the industry chambers have enabled or will enable for this purpose.
ß That they have a professional title or professional license linked to the activity (architect, engineer, land surveyor, broker or public auctioneer) or with verifiable experience in carrying out appraisals for financial entities not less than 65 years old. ß That they do not have negative criminal or commercial records. ß That they do not have an economic or other interest in the result of the appraisal (for example, an Appraiser cannot appraise a property if at the same time they intervene as a broker in the real estate operation of the property in question). The Appraiser will personally inspect the property to be appraised, examine the exterior of comparable properties, perform the analysis and prepare and sign the Appraisal Report.

Objectives of the Appraisal Process
The Appraisal Process has three main objectives:

Ensure an adequate evaluation of the market value of each property, based on appraisal methods and information that contemplate the characteristics of the properties.
Maintain a quality control system that includes reviews of each appraisal and special periodic verifications, to check the conclusions of the appraisals and the homogeneity of criteria among different Appraisers.
I
Use the appraisal process, especially the Appraiser's "in situ" inspection, to verify the specific property information provided by the debtor.
The Appraisal Report is the means that allows achieving the objectives stated above. Indeed, the first objective is achieved by requiring Appraisers:
ß a complete description of the house and the land being appraised, ß in the case of properties governed by the Horizontal Property Law, in addition to the appraised asset, the building, the private neighborhood or "country" to which it belongs must be described, ß a description of the neighborhood and the current conditions of the corresponding real estate market, ß a description of each comparable property on which the Appraiser will base, in part, their opinion of the value of the asset, and ß a brief description of the reasons that led to the valuation carried out by the Appraiser and the predominant factors that influenced it. This form fulfills the second objective, quality and homogeneity, because:
ß a single, standardized form is used, instead of several different forms and reports.
ß it provides each Originator with a uniform review process for appraisals and the use of the Appraisal Report will facilitate Originators to improve their capacity to detect errors, omissions and inconsistencies in appraisals. The Appraisal Report fulfills the third objective, verification, by using the information gathered during the inspection of the appraised property to independently confirm the information provided by the debtor to the Originator. The appraisal is a key component in the process of granting Real Estate Loans. The role of the Appraiser implies much more than simply offering an estimated market price value of the property to the Originator. The Appraiser supplies amounts and data about the property and the market, which significantly influence the quality of Real Estate Loans.

Appraisal Process
The diagram below describes the appraisal process, which is the means by which the Appraiser completes the steps and analysis that allow them to form a reliable opinion of the value of a property and then communicate it to the Originator.

1. Determination of the bases for the appraisal
Identification of the appraised property
Date of determination of value
Determination of market value
2. Obtaining general data
Social
Economic
Governmental
Environmental
3. Specific data of the considered property and comparables
Land and constructions
Sales, offers for sale and publications
Construction costs of the property
4. Method of evaluation of comparables
5 comparable 1 comparable 2 comparable 3
6. Conciliation and determination of final value

1. Determination of the bases for the appraisal
The first box of the diagram describes the key steps that the Appraiser must consider when starting their task.
ß The real estate asset to be appraised is identified through the information that the Originator provides to the Appraiser.
ß The date of determination of value will be that on which the Appraiser inspected the property (last inspection in case of making more than one visit).
ß Market value will be understood, as specified in the Appraisal Report, that:

It is the most probable price that a real estate asset would obtain in a competitive and open market under all the necessary conditions for a fair sale, which is one in which the buyer and seller act with prudence, consciously and assuming that the price is not affected by undue incentives. Implicit in this definition is the realization of a sale on a specified date and the transmission of the title by the seller to the buyer under conditions by which: 1) the buyer and seller are typically motivated; 2) both parties are well informed or well advised, and each acts according to what they consider their best interest; 3) a reasonable time is available for their offer in the real estate market; 4) payment is made in cash or through comparable financial agreements; and 5) the price represents the normal consideration for the sold asset not affected by special financing or sales concessions granted, linked to the sale that are not the costs that sellers normally pay as a result of market usages and customs.

Obtaining general data
For appraisals that will be represented, the collection of general data will consist of market information that each Appraiser keeps in their office, obtains through publications or knows as an expert in the real estate market. This usually includes information about the local economy, population, the bases of the economic activity of the region, historical information on real estate values, occupancy rates and price trends and advance information on construction and development activity.
Specific data of the considered property and comparables
This step is the part of the research and data collection process that all Appraisers must perform. It consists primarily of: (i) inspecting the appraised property and its surroundings and (ii) gathering information on the sales or quotes of comparable properties that then form the basis for the value calculation. Later in this Manual, the appropriate procedures for the inspection of a property and the confirmation of comparable sales data will be addressed.
Method of evaluation of comparables
The valuation analysis is the point in the process where the Appraiser completes the research of the data they have gathered, leading them to a conclusion about the market value for the appraised property. There are several different types of valuation analysis that the Appraiser can choose to value different properties. The Market Value Method consists of comparing sales prices of properties with characteristics similar to the appraised one. This method is based on the principle that a buyer will not pay for a property more than the price or value indicated by other similar nearby properties in an open and competitive market. The Market Value Method consists of a series of procedures through which the Appraiser reviews and analyzes the prices paid or requested for similar real estate, considers the physical, location and economic differences between the property to be appraised and the comparable and forms an opinion of the value after weighing these differences.

This method asks the Appraiser to provide information and observations on comparable properties and to relate the conclusion of the value of the appraised property with the value references provided by said comparables. For some Appraisers, the Appraisal Report may represent a change in the way information is presented. Nevertheless, the form in question does not ask the Appraiser to modify the manner in which they form their opinion of the value, but only the way in which data collection and analysis are summarized and presented.

Comparable Properties
The Market Value Method presents two basic requirements:
ß The adequate choice of comparable properties whose sales operations are recent and have similar characteristics and the confirmation of data relating to said properties and quotes; and ß The analysis of comparable properties and the weighing of the information gathered, transferred to the property to be appraised, which leads to a reliable conclusion of the market value. The adequate selection of comparable properties requires that the Appraiser obtain information on those sales and quotes of nearby properties with similar characteristics to the considered one. These comparable real estate assets must be those that have been subject to recent appraisals, purchase offers or classified ads. Among the typical sources of this information we have:
ß Inspections of the neighborhood and the area, carried out with the purpose of identifying properties that are for sale, ß Conversations with real estate brokers who have knowledge of the area where the property is located, and ß Review of classified ads published recently in newspapers and other specialized media. Frequently Appraisers may face the situation of not finding nearby comparable properties that have been sold or offered for sale recently. In this situation, the need arises to balance certain characteristics of comparable properties and select the best that can be found, such as: similarities of physical type, location, offer or sale dates, and other attributes of the property, such as for example the conditions of the real estate market close to the considered asset and the comparable. Once one or more comparables are identified, the Appraiser will correct the values considering the favorable and unfavorable factors of each comparable. The selection criteria and correction criteria for the reference properties mentioned must be included in writing in the form. For similar characteristics, completed sales are considered comparable as the most reliable indicators of appraisal value, followed by purchase offers and finally the publication price.. The information that the Appraiser must obtain about each comparable property includes the following:

ß The price and the date on which the property was sold or offered for sale or published. Likewise, the real status of said operation must be verified (e.g., if it was a sale or an offer), ß The address of the property and the relevant information about the neighborhood. ß The size, type of construction, age and land area on which the property is located, and ß A photograph of the comparable property. Once at least three comparable properties have been determined and the data for each of them gathered, the Appraiser can then finish the valuation analysis. The Appraisal Report requires the Appraiser to cover this process in two steps. First by describing and analyzing the differences between each comparable and the property to be appraised, expressing an opinion of the range of values suggested for the asset based on each of the comparables and, second, considering the three (or more) comparables together for a final opinion of the value of the appraised property. The Appraisal Report requires in the first step that the Appraiser evaluate the value of the appraised property based on its similarity or difference with the comparable asset, based on the following eight comparison elements:
ß Age
ß Maintenance condition
ß Marketing (possibility)
ß Parking (availability)
ß Construction condition
ß Location quality
ß Amenities (special differentiations such as pool, etc.)
ß Number of rooms.
The comparison scale used in the aforementioned report is: "inferior", "equivalent" and "superior". It is possible to use comparables obtained from different information sources such as sale, offer or publication. In addition to the eight elements stated above, there is a series of variables that can also be considered by the Appraiser including variations in prices that may have occurred in the period elapsed between the date of appraisal of the considered property and the sale date of the comparable asset; significant difference in habitable space; etc. When calculating the market value of each of the analyzed comparable properties, the Appraiser must reflect a firm or potential transaction that meets the conditions required to be considered a market operation, namely:

buyer and seller are typically motivated;
both parties are well informed or well advised and each acts according to what they consider their best interest;
a reasonable time is available for their presentation in the real estate market;
payment is made in cash or through comparable financial agreements; and
the price represents the normal consideration for the sold asset not affected by special financing or sales concessions granted,
linked to the sale that are not the costs that sellers normally pay as a result of market usages and customs.
Once the Appraiser has finished the analysis of each comparable sale and has formed an opinion of the range of values for the property based on each comparable, they will be in a position to begin the final step of the appraisal process.
Conciliation and estimation of final value
The process of arriving at a conclusion about the final value is known as "conciliation" and represents the point in the appraisal process where the Appraiser takes into account all relevant data about the considered property, the comparable units and the current and expected economic and real estate market conditions, formulating their final opinion on the resulting value. This opinion must be based on the value characteristics of the comparable properties. It will not be an amount determined mathematically, such as an average of the three value ranges. The Appraiser must form an opinion of the value that reflects the relative weighting of each comparable, based on the degree of similarity or difference and any other relevant information about the market that the Appraiser considers relevant.

Summary
The appraisal process is intended to be a flexible guideline to be followed by the Appraiser. It is not intended to prevent the Appraiser from adding important and relevant information to the Appraisal Report as an annex. Since the properties to be appraised are located in various places in the country, it is fundamental that all Appraisers recognize the importance of presenting and transmitting all important information about the considered property and the real estate market. Likewise, they must base themselves on adequate and well-confirmed comparable properties when forming an opinion of the value of the property to be appraised.

Recommended Inspection Activities on the Appraised Property ß Photograph the interior and exterior of the property, street views and special characteristics or adverse influences.
ß Obtain directly or through other acceptable sources of information, the measurements of the building or the private neighborhood or "country" as a whole.
ß Inspect each room of the appraised property.
ß Inspect the front, rear and side yards of the appraised property.
ß Inspect the heating equipment, air conditioning unit, water heater equipment and other main appliances in terms of their operating condition and maintenance.
ß Inspect, if possible, the areas located below the living space to verify if there are signs of building settlement, water damage, presence of insects and

the general state of the water, sanitary, and sewer pipes, the electrical installation, and other property installations.

Inspect the property roofs if access is possible. Verify signs of damage or excessive wear.

Inspect all bathrooms in the residence; confirm the supply of hot and cold water in adequate volume by running the faucets or testing the toilet.

In horizontal properties, inspect all common areas, including recreation or meeting rooms, as well as areas with central heating and air conditioning equipment and other service equipment. Verify signs of normal maintenance and conservation, obvious problems, out-of-service equipment, and other signs of deferred or insufficient maintenance.

Inspect the garage or other vehicle parking spaces in the building. Check for signs of safety, good maintenance, and absence of risks.

Observe the condition, quality, and degree of maintenance of neighboring properties, especially those bordering the appraised property. Observe if there are signs of vandalism or property damage that could indicate that the appraised property is located in a high-risk area.

Recommended Practices for Verifying Comparable Properties

Obtain the most accurate information possible regarding the sale price of comparable properties. If possible, verify the sale with one of the parties to the transaction or with public records.

Obtain information on the time the property was on the market and regarding how many times the asking price was modified.

Find out if other offers were received on the property before it was sold.

Confirm that there were no special characteristics in the transaction, such as the buyer purchasing another item or the seller including another property (real estate or otherwise) to facilitate the sale.

Confirm that the seller did not assume any part of the buyer's purchase costs, such as a portion of the commission normally paid by the acquirer.

Confirm that there were no other special incentives or promises made by the seller to the buyer or by the buyer to the seller to close the sale.

Obtain sufficient information to analyze the eight key elements of the Appraisal Report: age, maintenance condition, marketability, available parking, type and quality of construction, quality of its location, special features or amenities it contains, and the quantity and type of rooms present in the comparable. If it is a horizontal property, confirm the type of amenities present.

If possible, inspect the interior of the comparable property.

If there is a sale offer, speak with the broker offering the property regarding the level of market interest in the property. If it is a horizontal property, find out which buildings represent the greatest competition for the building containing the comparable property. If it is a house, find out which neighborhoods seem to be offering the largest number of similar houses for sale at that time.

Unacceptable Valuation Practices
The following are some examples of valuation practices considered unacceptable:

Including inaccurate data regarding the considered neighborhood, land, building improvements, or comparable properties.

Not considering or including in the Appraisal Report negative factors regarding the neighborhood, the appraised property, or its proximity to adverse factors.

Using comparables in the valuation process without the Appraiser having personally inspected the exterior of the same.

Selection and use of inadequate comparable properties or not using comparables that by their location and physical condition are more similar to the considered property.

Use of data, especially from comparable properties, provided by parties that have financial interests in the sale or financing of the appraised property without the Appraiser verifying the information by recourse to an objective source.

Application of adjustments to comparables when they are unnecessary or not making them when they are necessary, with the intention of not changing or otherwise modifying the value of the appraised property.

Preparing a valuation that is not based on certain market data.

Not mentioning in the Appraisal Report a situation or circumstance of the appraised property that creates an imminent danger of damage to occupants (fire or other safety risk, exposed electrical installations, imminent structural failures, etc.)

APPRAISAL REPORT FORM
The following pages show the Appraisal Report form that Appraisers must use when performing valuations of real estate that will secure mortgage loans granted under the Residential Loan Origination and Administration Manual.

Instructions and Definitions for Completing the Appraisal Report

General Instructions

The report must be integrated legibly. It is requested to use a typewriter or printed letter.

It is necessary to complete all fields of the report. In the case that the respective information is not available or if it is irrelevant with respect to the appraised property, it is required to complete with the acronym "NA" (Not Applicable) or cross out the field.

If the appropriate field to describe important characteristics of the appraised property is not found, supplementary sheets must be used.

APPRAISAL REPORT
CREDIT IDENTIFICATION CODE OR NUMBER
TITULIZED CREDIT CODE OR NUMBER:
APPRAISAL INFORMATION
DEBTOR NAME CONTACT TELEPHONE
APPRAISAL FIRM APPRAISER APPRAISER NUMBER TELEPHONE REQUESTING FINANCIAL INSTITUTION BRANCH CONTACT TELEPHONE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) DISTRICT SECTION BLOCK PARCEL PROPERTY IDENTIFICATION NUMBER PROPERTY TYPE INSPECTION DATE APPRAISAL COMPLETION TIME NEIGHBORHOOD / BUILDING NAME
II. PROPERTY CONDITION
CONSTRUCTION TYPE HABITABLE SPACE YEAR OF CONSTRUCTION LOCATION QUALITY COMMERCIAL VALUE POOR FAIR AVERAGE GOOD EXCELLENT POOR FAIR AVERAGE GOOD EXCELLENT AVERAGE MONTHLY REAL ESTATE TAXES ROOF TYPE LIGHTING ORIENTATION CONSTRUCTION QUALITY MAINTENANCE QUALITY POOR FAIR AVERAGE GOOD EXCELLENT POOR FAIR AVERAGE GOOD EXCELLENT FINISHING DETAILS PARKING POOR FAIR AVERAGE GOOD EXCELLENT GARAGE GARAGE SEMI-COVERED OPEN DOES NOT HAVE OTHER HAS COMMERCIAL SPACES (IF YES ADD DESCRIPTION) YES NO ROOMS (INDICATE QUANTITY) SERVICES AMENITIES HEATING TYPE CENTRAL INDIVIDUAL NON-EXISTENT LIVING ROOM SERVICE BATH DOUBLE CIRCULATION AIR CONDITIONING CENTRAL INDIVIDUAL NON-EXISTENT DINING ROOM BEDROOMS SAUNA HOT WATER CENTRAL INDIVIDUAL NON-EXISTENT LIVING-DINING SUITE POOL KITCHEN SUITE AND DRESSING ROOM STORAGE / DEPOSIT OFFICE BEDROOM AND DRESSING ROOM GROUP ELECTRIC GENERATOR INTIMATE LOUNGE OTHER PLAYROOM TOTAL ROOMS LAUNDRY TERRACE BATHROOM BALCONY TOILET YARD SERVICE BEDROOM PRIVATE PALIER OTHERS OTHERS ADDITIONAL CHARACTERISTICS:
ADVERSE CHARACTERISTICS / DEFICIENCIES:
OBSERVATIONS ON THEIR CONSERVATION STATE:
BRIEF DESCRIPTION OF PLANNED IMPROVEMENTS (IF ANY)

APPRAISAL REPORT
II. APARTMENT BUILDING, PRIVATE ESTATE DESCRIPTION (IF APPLICABLE)
NUMBER OF UNITS COMMON AREA MAINTENANCE STATE OF COMMON AREAS AVERAGE MONTHLY EXPENSES EXPENSE PERCENTAGE COMMON EXPENSES PENDING REALIZATION IMPORTANT BUDGETED EXPENSES PARKING TYPE ELEVATOR NUMBER OF ELEVATORS SECURITY YES NO ADEQUATE INADEQUATE YES NO NUMBER OF FLOORS BRIEF DESCRIPTION OF COMMON AMENITIES:
IV. LAND DESCRIPTION
TYPE / ZONING DESIGNATION CONTROLLING AUTHORITY TOPOGRAPHY SHAPE AND DIMENSION PERIMETERS VIEW FLOOD RISK LAND (SQUARE METERS) SIGNIFICANT MINIMAL ______EXPOSED NO INFORMATION EXISTS ______ COVERED ______TOTAL DRAINAGE QUALITY / STATE OF ACCESS STREETS SERVICES ELECTRICITY GAS TELEPHONE PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION WATER SEWER STORM DRAIN PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION OBSERVATIONS ON THE LOT NEIGHBORHOOD DESCRIPTION TYPE BUILT GROWTH INDEX NEIGHBORHOOD SECURITY SERVICE URBAN INTERURBAN RURAL MORE THAN 75% 25-75% GROWING STABLE YES NO less than 25% PROPERTY VALUES DEMAND / SUPPLY MARKETABILITY TIME GROWING STABLE DECREASING SCARCE BALANCED LESS THAN 3 MONTHS 3-4 MONTHS EXCESS SUPPLY MORE THAN 4 MONTHS HOUSING VALUES IN NEIGHBORING AREAS FROM $ TO $ (TOTAL PRICE) FROM $ TO $ (PER SQUARE METERS) AGE OF HOUSING IN NEIGHBORING AREAS FROM TO (IN YEARS) LAND USE (%) MAIN CHANGES IN LAND USE FACILITIES RESIDENTIAL COMMERCIAL UNLIKELY PROBABLE IN PROCESS (EXPLAIN) TYPICAL PARKING INDUSTRIAL OTHER NEIGHBORHOOD CHARACTERISTICS. FACTORS INFLUENCING MARKETABILITY OF PROPERTIES IN NEIGHBORHOOD (PROXIMITY TO WORK AND ENTERTAINMENT PLACES. EMPLOYMENT STABILITY, MARKET ATTRACTIVENESS, ETC.) OBSERVATIONS ON MARKET CONDITIONS (TRENDS, EMPLOYMENT (MAIN EMPLOYERS, OTHER FACTORS INFLUENCING THE VALUE OF REAL ESTATE)

APPRAISAL REPORT
VI. COMPARABLE
COMPARABLE
SALE PRICE OR QUOTATION SALE DATE OR QUOTATION PROPERTY TYPE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) CONSTRUCTION TYPE LIVING AREA PRICE PER M2 YEAR OF CONSTRUCTION LAND SURFACE COMPARISON OF CHARACTERISTICS AGE MAINTENANCE CONDITION MARKETABILITY PARKING INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR CONSTRUCTION STATE LOCATION QUALITY AMENITIES NUMBER OF ROOMS INFERIOR EQUIVALENT INFERIOR INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR OBSERVATIONS ON SIMILARITIES OR DIFFERENCES WITH THE APPRAISED PROPERTY VALUE OF THE APPRAISED PROPERTY IN RELATION TO THE COMPARABLE:
COMPARABLE 1.
SALE PRICE OR QUOTATION SALE DATE OR QUOTATION PROPERTY TYPE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) CONSTRUCTION TYPE LIVING AREA PRICE PER M2. YEAR OF CONSTRUCTION LAND SURFACE COMPARISON OF CHARACTERISTICS AGE MAINTENANCE CONDITION MARKETABILITY PARKING INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR CONSTRUCTION STATE LOCATION QUALITY AMENITIES NUMBER OF ROOMS INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR OBSERVATIONS ON SIMILARITIES OR DIFFERENCES WITH THE APPRAISED PROPERTY:
VALUE OF THE APPRAISED PROPERTY IN RELATION TO THE COMPARABLE:

APPRAISAL REPORT
VI. COMPARABLE (continued)
COMPARABLE 3.
SALE PRICE OR QUOTATION SALE DATE OR QUOTATION PROPERTY TYPE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) CONSTRUCTION TYPE LIVING AREA PRICE PER M2 YEAR OF CONSTRUCTION LAND SURFACE COMPARISON OF CHARACTERISTICS AGE MAINTENANCE CONDITION MARKETABILITY PARKING INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR CONSTRUCTION STATE LOCATION QUALITY AMENITIES NUMBER OF ROOMS INFERIOR EQUIVALENT INFERIOR INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR OBSERVATIONS ON SIMILARITIES OR DIFFERENCES WITH THE APPRAISED PROPERTY VALUE OF THE APPRAISED PROPERTY IN RELATION TO THE COMPARABLE:
COMPARABLE 4.
ESTIMATED COMMERCIAL VALUE (IN THE STATE IN WHICH IT IS FOUND) $ TOTAL VALUE $ (PER M2.)
VALUE ONCE COMPLETED (IF PROJECTED IMPROVEMENTS) $ TOTAL VALUE (PER M2) APPRAISAL DATE COMPONENTS TOTAL SQUARE METERS PRICE PER M2. (U$S.) TOTAL (U$S.)
LAND
COVERED SURFACE
SEMI-COVERED SURFACE
OPEN SURFACE
PARKING
AMENITIES
STORAGE / DEPOSIT
OTHERS
TOTAL
EXPRESS OPINION OF VALUE IN RELATION TO COMPARABLES:
ADDRESS OF APPRAISED PROPERTY PROPERTY INSPECTED YES NO APPRAISER NAME APPRAISER NAME SUPERVISOR (IF APPLICABLE) SIGNATURE DATE X SIGNATURE DATE

APPRAISAL REPORT
PHOTOGRAPHS AND PLANS
PLAN ATTACHED INDICATING THE LOCATION OF THE ASSET TWO PHOTOGRAPHS OF THE ASSET IN QUESTION ATTACHED (ONE INCLUDING STREET VIEW) ONE PHOTOGRAPH OF EACH COMPARABLE ATTACHED.
COMPLEMENTARY PHOTOGRAPHS ATTACHED (OPTIONAL)
SUPPLEMENTARY SHEETS ATTACHED (OPTIONAL)

I. APPRAISAL INFORMATION
DEBTOR NAME TELEPHONE CONTACT
APPRAISAL FIRM APPRAISER APPRAISER NUMBER TELEPHONE REQUESTING FINANCIAL INSTITUTION BRANCH CONTACT TELEPHONE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) DISTRICT SECTION BLOCK PARCEL PROPERTY IDENTIFICATION NUMBER PROPERTY TYPE INSPECTION DATE APPRAISAL COMPLETION TIME NEIGHBORHOOD / BUILDING NAME Purpose of this Section When an appraisal is assigned to an Appraiser, there is a certain amount of preliminary information. The purpose of this section is to summarize this information. It will identify the parties involved in the appraisal, including the debtor, Originator, and Appraiser. It also provides identification of the asset to be appraised as well as specifying the type of property and the date on which the Appraiser inspected it. The preliminary information must be provided to the Appraiser by the Originator, and it must be confirmed. This will ensure that the appraisal is completed correctly. Loan Identification Code or Number The loan identification number, provided by the Originator, must be inserted in the upper right field of each page. This is the number used by the originator to identify loans or loan applications. Debtor Name Enter the debtor's name in this field, as it appears in the identification documents. This data must be provided by the Originator. Contact The name of the person to whom the Appraiser will contact/coordinate to carry out an inspection of the property must be entered in this field. The contact name must be provided to the Appraiser by the Originator. Telephone The contact's telephone number will be entered in this field. The telephone number must be provided by the Originator. Appraisal Firm The name of the appraisal firm, responsible for carrying out the appraisal, will be entered in this field. This information must be included so that the Originator and other involved parties know who is responsible for the information and conclusions presented in the appraisal. Appraiser Enter the first and last name of the Appraiser in this field. Appraiser Number Enter the Appraiser's identification number given by the entity in this field. The Appraiser's identification number corresponds to the person and not to the appraisal firm (in the case that each Appraiser is identified with a special number, at the option of each Originator). Telephone Enter the telephone number of the Appraiser who performed the appraisal in this field. This data will facilitate the communication process between the parties, in the event that the Originator may need to understand, clarify, or complete certain aspects or parts of an appraisal. Originator The name of the financial entity that has requested the appraisal must be entered in this field. Branch The name of the originator's branch that has requested the appraisal will be entered in this field. Contact Enter the full name of the person who has authorized the Appraiser to carry out the appraisal on behalf and order of the Originator in this
field. Telephone Enter the telephone number of the contact who requested the appraisal. Property Address The address of the property to be appraised, which will be provided by the Originator, must be entered in this field. If the property address does not clearly and completely identify it, additional information such as numbers or letters must be added here or in an appendix to allow for better identification and avoid possible confusion. District The district number of the property to be appraised must be entered in this field to precisely identify it. The Appraiser must confirm the district number by reviewing the property title or other public records.
Section
The section number of the property must be entered in this field. The Appraiser must also confirm the section identification number or designation.
Block
The block corresponding to the property to be appraised must be entered in this field.
Parcel
The parcel corresponding to the property in question must be entered in this field.
Property Identification Number
The real estate deed number and real folio, if any, must be entered in this field. The Appraiser must verify or confirm said data, corresponding to the property, by reviewing the title or consulting public records. Property Type Enter the property type in this field, with the following classification:
A) House (includes chalet) or Duplex with:
free perimeter (without party walls) semi-free perimeter (with one party wall) between party walls (with two or more party walls) B) Apartments in horizontal property The Appraiser must also clearly indicate in this box when it is a property subject to the horizontal property regime. Consequently, some possible property types are:
House between party walls
Duplex semi-free perimeter under horizontal property regime Chalet free perimeter Apartment One of the property types described above must be indicated. If it does not fit within the previous classification, enter "others" in the field and provide, in an annex, a detailed description of the type of property in question. Inspection Date Enter the date on which the Appraiser inspected the property in this field. It will be understood that the value conclusions arising from the appraisal will be based on the condition of the property as of the date it was inspected. Appraisal Completion Time The time at which the Appraiser completed the inspection and left the property in question must be indicated here. Neighborhood / Building Name The formal name or the name by which the neighborhood or building in which the property is located is known must be entered in this field. In its absence, enter "not applicable". Examples:
"Bajo San Isidro" or "Lomas de San Isidro" instead of "San Isidro" "Barrancas de Belgrano" or "Belgrano R" instead of "Belgrano" "Martindale Club de Campo" instead of "Pilar"

VI. PROPERTY DESCRIPTION
CONSTRUCTION TYPE HABITABLE SPACE YEAR OF CONSTRUCTION LOCATION QUALITY COMMERCIAL VALUE POOR FAIR AVERAGE GOOD EXCELLENT POOR FAIR AVERAGE GOOD EXCELLENT AVERAGE MONTHLY REAL ESTATE TAXES ROOF TYPE LIGHTING ORIENTATION CONSTRUCTION QUALITY MAINTENANCE QUALITY POOR FAIR AVERAGE GOOD EXCELLENT POOR FAIR AVERAGE GOOD EXCELLENT FINISHING DETAILS PARKING POOR FAIR AVERAGE GOOD EXCELLENT GARAGE GARAGE SEMI-COVERED OPEN DOES NOT HAVE OTHER YES NO HAS COMMERCIAL SPACES (IF YES ADD DESCRIPTION) ROOMS (INDICATE QUANTITY) SERVICES AMENITIES HEATING TYPE CENTRAL INDIVIDUAL NON-EXISTENT LIVING ROOM SERVICE BATH DOUBLE CIRCULATION AIR CONDITIONING CENTRAL INDIVIDUAL NON-EXISTENT DINING ROOM BEDROOMS SAUNA HOT WATER CENTRAL INDIVIDUAL NON-EXISTENT LIVING-DINING SUITE POOL KITCHEN SUITE AND DRESSING ROOM STORAGE / DEPOSIT OFFICE BEDROOM AND DRESSING ROOM GROUP ELECTRIC GENERATOR INTIMATE LOUNGE OTHER PLAYROOM TOTAL ROOMS LAUNDRY TERRACE BATHROOM BALCONY TOILET YARD SERVICE BEDROOM PRIVATE PALIER OTHERS OTHERS ADDITIONAL CHARACTERISTICS:
ADVERSE CHARACTERISTICS / DEFICIENCIES:
OBSERVATIONS ON THEIR CONSERVATION STATE:
BRIEF DESCRIPTION OF PLANNED IMPROVEMENTS (IF ANY) Purpose of this Section Its purpose is to provide a detailed description of the property, which will constitute the guarantee for the proposed loan, in the condition in which it is found at the time the appraisal is performed. The information presented in this section will serve as a basis to compare the building characteristics of the property in question with those considered typical for its market. Through these descriptions, the Appraiser will obtain a thorough understanding of the physical characteristics of the property, which will be necessary to identify, select, and analyze adequate comparable properties.

The Appraiser must personally conduct a complete physical inspection of the property being appraised.
This must include a careful walkthrough of the entire property, both interior (including all rooms and interior spaces) and exterior, as well as the neighborhood. The Appraiser must clearly, precisely, and completely note the characteristics of the property as well as those typical of the neighborhood or area. The Appraiser must be as specific as possible, adding comments on aspects such as necessary repairs, additional features, modernization, etc. If necessary, the Appraiser must provide an additional description in the annexes to the report. During the inspection, photographs must be taken showing all relevant views of the property, street scenes, and any other relevant item, such as lack of maintenance or features above standard. Additionally, measurements of the property in question must be taken during the inspection, according to the methods described in the item Habitable Space, in order to confirm the information regarding the dimensions of the property.

Construction Type
In this field, the predominant materials used in the construction of the property must be recorded. The type of construction refers to the total construction of the residence being appraised, including its structure, exterior walls, and roofs. The most common include:
Brick - Brick construction consists of panels and walls of this material and mortar (mixture) built on the ground.
Concrete Blocks - Compressed concrete in block form, hardened and used as a masonry unit. Its construction consists of concrete blocks placed to form walls with the addition of mortar, generally using wire or round iron reinforcement. Wood Construction - Construction in which the walls, partitions, and openings are formed by wooden posts, frames, frameworks, or studs. Metal Construction - Rigid steel structure that supports and transmits to the foundations all external and internal loads and tensions. Concrete - Hard material, with a stony exterior appearance, formed by mixing sand, gravel, and cement with water, allowing for subsequent setting. Concrete construction consists of walls, floors, and ceilings (slabs) or roof structures formed with concrete, generally reinforced, which is poured into formwork to obtain the required shapes. The data entered in this field of the appraisal form must not consist of a compound expression, such as "Brick and Wood Construction". The Appraiser must record the predominant material type. Those buildings that have additions or have been remodeled must be described in greater detail in an annex.

Habitable Space
This must be expressed in square meters and is defined as the built habitable area between the exterior walls of the property and that is specifically used for housing. This definition encompasses habitable spaces such as living rooms, kitchens, bedrooms, service areas, hallways, closets/dressing rooms, bathrooms, laundry rooms (with access from inside the property), and stairs connecting the different rooms of the home. The determination of the habitable area surface must be obtained from reliable sources, such as final construction plans, or through measurements made by the Appraiser. In all cases, the Appraiser must assume responsibility for the accuracy of the data. The areas that should not be included are surfaces such as:

spaces for parking or vehicle storage,
balconies (covered or uncovered),
patios (covered or uncovered),
galleries, including those with metal enclosures,
storage areas/trunks adjacent or not to the dwelling, which lack direct access from the interior of the property.
attics without significant improvements that make them habitable or those that have such improvements but whose height is equal to or less than 2.5 meters.
laundry rooms that can only be accessed from the exterior and
stairs that lead to parking or to attics without significant improvements that make them habitable or those that have such improvements but whose height is equal to or less than 2.5 meters.

Year of Construction
Indicate the year in which the property being appraised was built. If this data is not available, it must be calculated by indicating in that case that the information recorded comes from an estimate, placing (e) after the date recorded. The main sources for obtaining this information are: public records, municipal records, construction plans, etc. If the appraised property has some extensions, the Appraiser must record the age of the property based on the oldest portion of it, indicating in the annex to the form, the years in which important reforms or additions were made. Example: In the case of a home built in 1965 to which an additional room was added in 1989, the Appraiser must record the following: Year of construction: "1965, remodeled in 1989 (see additional comment in annex)".

Location Quality
In this field, the quality of the location must be indicated. This data summarizes the attributes of the property's location, allowing for comparison with that of other properties. This information generally indicates the degree of attraction and demand it exerts on the market. The rating of location quality will be performed based on a scale ranging from poor to excellent. The definition of the different categories is detailed below:
Poor: This category indicates that the inherent characteristics of the location of the appraised property are substantially inferior to those that could be considered competitive. The location characteristics are so inferior that the value of the property is significantly affected negatively. Fair: This category describes properties with location characteristics that are somewhat inferior to those that could be considered competitive. The location is sufficiently inferior to slightly affect the value of the property. Average: This category indicates that the location characteristics of the appraised property are typical of the market and are considered acceptable when compared to those of other locations considered competitive. Most properties will fall within this category. There may be some negative characteristics regarding location, but there will also be positive ones that neutralize them. Good: This category includes those properties with location characteristics somewhat superior to those found in other competitive locations. These characteristics must be sufficiently superior to slightly improve the value of the property. Excellent: This category indicates that the location characteristics of the appraised property are substantially superior to those of competitive locations. These characteristics are so superior as to significantly increase the value of the property. Among the elements to consider when evaluating the quality of the location, the following must be taken into account:
Compatibility: It is the capacity of the property to coexist in harmony with other surrounding properties, based on its use, size, appearance, structure, etc. The type of use of the predominant plots in the neighborhood will determine the degree of compatibility. General appearance of neighboring properties: refers to their physical appearance, including lack of maintenance and others. Convenience of the location relative to work: is the access to job sources in terms of distance and travel time. Likewise, the cost and availability of public transportation must be considered. Convenience of the location relative to shopping: is the availability of stores, in terms of distances, transportation, and time. Convenience of the location relative to schools: is the availability of schools near the appraised property. Ease of access and travel time to them must also be considered. Convenience of the location relative to recreation areas: is the proximity and ease of access to recreation areas. The number, type, and quality of recreation alternatives must be taken into account. Availability of adequate public transportation: is the availability and ease of access to public transportation in the area. The costs and quality of available transportation must be taken into account. Availability of adequate services: is the supply in quantity and quality of services in the area, compared with other competing areas. Public, private, and individual services must be taken into account. Public safety / protection against risk situations: refers to the degree of absence of risks and availability of emergency services. Reputation of the area: refers to how the area is perceived in the market and the degree of recognition it has based on characteristics such as: type of people who inhabit it, age and state of the buildings (e.g.: historic buildings), proximity to attraction centers, etc. This is a partial list. All elements that contribute to buyer interest and impact the quality of the location of the appraised property must be considered. The elements of the appraised property must be compared with those of similar price or with those of similar locations or those that compete with it. When evaluating the relative position of a property or neighborhood, the Appraiser must take into account its competitive characteristics, in terms of location, physical conditions, and prevailing conditions, at the date. The following are examples of the different categories:
Poor Location
The location of a property can be considered poor if, for example, it borders a railway line and the closest crossing to go to the city center is several kilometers away. This rating is applicable as long as other properties in the area do not present this adverse characteristic. As a result of the above, the property would have less value than in other locations. Fair Location In areas where inhabitants do not own cars or prefer not to use them, access to public transportation is important. If the property in question is not located near a bus, subway, or railway station stop, the property could be rated as fair location, compared to other locations with better access to public transportation. Average Location The location of a property can be considered average location if it is located on a street with disparate building while another similar home is located on a street of homogeneous constructions. Good Location The location of a property can be considered good when it presents a characteristic that is perceived by the market as a competitive advantage over other similar homes, such as proximity to schools, shops, and workplaces. Excellent Location A property can be considered well-located if it is facing a park and has a pleasant view of the surrounding area, while other similar properties are two or three blocks away and lack such a view. It can be categorized as excellent location if the view of the park is very attractive. Commercial Value In this field, the Appraiser's opinion regarding the possibility of commercialization or sale that the property presents must be recorded. This opinion is based on the level of attraction that the property as a whole exerts on potential buyers, taking into account all its characteristics or attributes. Once the different characteristics have been considered individually, a global conclusion must be reached, using a scale that varies from scarce to excellent (detailed below). Scarce This category indicates that the characteristics of the property in question are considerably inferior to properties located in competitive zones and that this will affect the price and/or time of commercialization of the property. Fair This category describes properties whose characteristics are somewhat inferior to those located in competitive zones. These characteristics will cause both the price and the time of commercialization to be slightly affected. Normal This category indicates characteristics typical for the market area and are considered acceptable compared to properties from other competitive locations. The majority of properties would fall within this rating. The average property will have a similar sales time and price to nearby properties. Good This category describes properties whose characteristics are somewhat superior to those located in competitive zones. These characteristics will cause the property to sell in a shorter time than average and at a slightly higher price than might be expected. Excellent
This category indicates that the characteristics of the asset are substantially superior to those found in competitive locations. The Appraiser expects the property to sell in a considerably shorter period than the average of its category. The price should reflect the excellent rating this property presents. The important factors that must be taken into account when evaluating the possibility of commercialization include:
Location - the site of the property in question.
Land attributes, including dimensions, shape, and topography - the total dimension of the land, its configuration, and topographic characteristics, including its slope.
Quality of construction - qualitative aspects of the residence or other permanent structures, located on, or attached to the land. Both the materials and the labor used in construction must be taken into account. Age and state of construction - the age of the home or permanent facilities located or added to the land and their state. Size of improvements - refers to the overall size of the home or permanent facilities located on the property (in square meters). Design and appearance - degree of attraction of the architectural design and decoration of the facilities. Other attractive features - tangible or intangible attractions of the property that enhance its acceptance but are not essential for its use. The above list is illustrative. The Appraiser must take into account any relevant attribute for the buyer and that influences the time of commercialization and the price. Below, some examples of the classification of commercialization possibilities are provided:
Scarce: Refers to a property whose rear is very noisy, bordering railway tracks that are frequently traveled by freight and passenger trains. If other properties in the area do not present this inconvenience and if the Appraiser believes that the time of commercialization and price of the property will be negatively and substantially affected, then it must classify its commercialization possibility as scarce. Fair: In areas where people lack or prefer to do without the use of their vehicles, the availability of public transportation means becomes important. If the property in question is not located at a reasonable distance from a bus stop, subway station, or railway station, its commercialization possibility must be marked as fair, provided that the Appraiser believes that this distance will not prevent the sale of the property but will slightly reduce its price, compared to that of other properties with better access to public transportation. Normal: Refers to a unit located in the middle of a ten-story horizontal property building, on a street that includes different types of buildings, such as houses, duplexes, and other horizontal property buildings. If other similar real estate for sale are located in environments of similar characteristics and their commercialization is not affected by this type of zoning, then the property would be classified with average commercialization possibilities. Good: A property that possesses for potential buyers a differential characteristic, such as its location, which is close to schools, shops, and job sources, would have a commercialization superior to other properties located further away from them. In such a case, the property could be sold in less time and, therefore, its commercialization possibility should be classified as good. Excellent: If the property in question were located facing a park with a consequent pleasant view, while other properties did not have such attractive views, it could probably be sold faster than the market average and would be assigned a good commercialization possibility. If the view were exceptionally good and the park very attractive, it could probably be sold even faster and therefore be considered of excellent commercialization possibility. Average Monthly Real Estate Taxes In this field, the average monthly value of the tax required to pay the total taxes on the property must be entered. This amount is calculated based on the values of the taxes corresponding to the most recent six months. Roof Type In this field, the type of predominant materials in the construction of the roof must be described. If it is an apartment building, the type of roof construction of said building must be described. The roof construction defines the elements and materials that constitute the main enclosure that protects the interior spaces of the home. The Appraiser must specify both the type of roof and the class of materials used. The most common roofs include:
Wood beam and purlin roof - indicate the wood used, in a cross-section of the residence, and the structural members made of wood, which shape and support the roof covering.
Wood panel and beam boards - unfinished wood boards the main load-bearing wooden structural elements that, combined, shelter the interior space. Framing with wood panels and beams does not leave hidden spaces available to house air pipes, pipes, or electrical wiring, unless a layered structure or spaced structural members is used. Wood truss - flat, triangular, pre-designed, and prefabricated lattices, built of wood. Prefabricated open mesh beam roof system in standardized lengths, thicknesses, and load-bearing capacity. Each beam is firmly anchored to its supporting structure and the roof platform must be anchored to all supports. Open mesh beam roof system - prefabricated in standardized lengths, thicknesses, and load-bearing capacity. Each beam is firmly anchored to its supporting structure and the roof platform must be anchored to all supports.

Precast concrete roofs - structural concrete components that are not cast on site, but molded separately or in another location.
Reinforced concrete slab roofs - Concrete reinforced with bars, rods, or iron mesh.
Roofing Materials:
Site composition - roof covering with felt paper with overlapping joints and sealed with hot asphalt or roof compound. The final layer can be asphalt or asphalt covered with sand.
Wood shingles - similar to tiles, but made of wood and reinforced by combining several together.
Slate - roof covering made with natural slate tiles.
Mosaic - molded and fired clay or cement or a combination of many materials for roofing.
Corrugated sheet - a roof covering formed with metal sheet, corrugated to achieve rigidity and channel rainwater drainage.
An example of the note to be recorded would be "Wood beam and purlin roof with wood shingles".

Does it Have Commercial Spaces?
In this field, it must be detailed whether the property being appraised has any space for commercial use, entering "yes" or "no" as appropriate.
This concept refers to the interior habitable space of the property or any other improvement incorporated into the real estate that is used for a purpose other than residential. That is, places where commercial, business, industrial, or manufacturing activities are carried out. If there is commercial space, the Appraiser must verify its dimensions and estimate its contribution to the value of the property. The Originator must be consulted by the Appraiser, in search of further guidance. Appraisers must verify the possible existence of exterior or secondary buildings, which could allow commercial activity.

Construction Quality
Construction quality refers to the observable craftsmanship in the entire residence, as well as the quality and durability of the materials and equipment that make up the property. It is an evaluation of how adequate the construction is, compared to that of other similar properties.

The Appraiser must evaluate these factors in relation to observables in the market for similar properties. After having analyzed each factor individually, a general conclusion must be reached, using a scale ranging from poor to excellent. Below, this scale is explained in more detail:

Poor: Indicates that the construction characteristics of the property are substantially inferior to those observed in the market. They will surely evidence errors and defects in the construction. The aforementioned characteristics will be so inferior as to materially affect the value of the property.

Fair: Describes properties with construction characteristics somewhat inferior to those observed in the market. The Appraiser must be able to identify the errors or omissions in construction, as well as clearly point out the use of inferior or inadequate materials. These deficiencies will be of lesser magnitude, as well as the eventual impact on the property's value.

Average: Indicates that the construction characteristics of the property to be appraised constitute the pattern for the market segment to which it belongs. The majority of properties will be in this category. The items or areas in which the quality of materials or craftsmanship are inferior to the average should be almost non-existent. Likewise, this type of real estate will very likely present some special characteristics that show clear superiority in craftsmanship or materials.

Good: The construction characteristics of these properties will be above the market average. These superior qualities in craftsmanship or materials should be valued and/or sought after in the real estate market by potential buyers.

Excellent: Indicates that the quality of the property in question is substantially superior to the average of its market. This superiority in construction will reflect craftsmanship and materials clearly above those of similar properties, which could have a strong impact on the price.

When a global conclusion has been reached regarding the construction quality of the property, the appropriate box will be marked.

Maintenance Quality

In this field, the maintenance quality will be noted, which results from an analysis of the current conditions of the property. For this, its condition, age, and other factors affecting its conservation must be taken into account.

It must be analyzed, as of the inspection date, its condition in relation to that of other comparable properties. Thus, a global conclusion will be reached, using a scale ranging from poor to excellent, as detailed below.

Poor: Indicates that the condition of the property is substantially inferior to that of other comparable properties and that lack of maintenance is the cause of the poor rating. The property may present several maintenance items that have not been performed and consequently will reduce its price considerably.

Fair: Describes properties with a conservation condition inferior to that of its market. This condition should slightly affect its price compared to other comparable properties.

Average: Indicates that its conservation condition is similar to that of the majority of other comparable properties in terms of age and building quality. It should not present significant maintenance requirements as of the inspection date. The majority of properties will be in this category.

Good: Describes properties whose condition is partly superior to others in the market, evidencing a certain degree of preventive maintenance. The condition of the property will be sufficiently superior to its market that this will be slightly reflected in the selling price. In these properties, there should be almost no signs of deferred maintenance.

Excellent: Indicates that the condition of the property and its level of maintenance are significantly superior to those of its market. There should be no signs of lack of maintenance of any kind, and samples of preventive maintenance should be observed. Its condition will be sufficiently superior to influence its selling price very positively.

When a global conclusion has been reached regarding the conservation quality of the property, the appropriate box will be marked.

Orientation

Describes the orientation of the property in its space. Record the direction of the primary orientation of the residence, according to the cardinal points (north, south, east, or west, etc.). The primary orientation of the residence is almost always indicated by that wall or direction that contains the largest surface area of windows and/or patios or balconies.

Lighting

Briefly detail the lighting characteristics presented by the property. This will depend both on the possibility of receiving natural light and on the aptitude of its design and configuration to take advantage of the available natural light for the benefit of its occupants.

The annotations to be used in this field are: poor, fair, average, good, and excellent.

Internal walls can block or inhibit natural lighting. In this sense, unless their absence compromises functionality and privacy, an interior division that inhibits natural lighting is undesirable.

For obvious reasons, the time of day at which the Appraiser can evaluate the lighting conditions will influence their assessment, and this must be recorded on the form.

An example of a property with fair lighting could be an apartment located on an intermediate floor in a rear-facing building and surrounded by tall buildings that largely inhibit the entry of natural light into the block.

On the other hand, a property with excellent lighting would be an apartment that occupies an entire floor of a tower building, with windows on all four sides. Almost certainly, most of the rooms will receive abundant natural light. Consequently, the entry on the form must indicate excellent.

Parking

This field refers to the available parking spaces that the property has, for each of the categories mentioned in the form. The sum of these categories must be equal to the total number of parking units that the property has.

Garage - a parking unit not located on the public street and fully roofed and closed by walls.

Semi-covered Garage - a parking shelter not located on the public street and roofed.

Open Garage - a parking space not located on the public street and uncovered.

None - has parking only on the public street.

Other - a parking space not located on the public street and that does not meet any of the above requirements.

Indicate if it has "fixed" or "mobile" garages or if it allows any type of exclusive use right.

Example of Open Garage: A duplex in which two vehicles can be parked in front of the property. If the place where they are parked is not roofed, write "2" in the field marked "open garage". The Appraiser must note if the spaces are reserved for exclusive use by a specific user.

Example of Semi-covered Garage: In the case where one vehicle can be parked in front of the property, if that place is roofed but not closed by walls, write "1" in the field marked "semi-covered garage".

Example of Garage: When an apartment in a condominium building has space for vehicle parking in the basement. If it has only one fixed garage, write "1 - fixed" in the field marked "garage". If there is no space for vehicle parking in the entire building, then write "none" in the field marked parking.

Description of Rooms

In the corresponding fields, the number of rooms corresponding to each category must be indicated. In the case of there being no rooms corresponding to a specific category, "0" (zero) must be recorded.

Other

In this category, record the number of other rooms not listed specifically.

Total Rooms

Record in this field the sum of the rooms noted above individually. Special care must be taken not to mark the same room twice.

Heating

If the property has central heating, enter "central" in this field. If instead it has one or more individual heaters, mark "individual" and if it has none, note "non-existent".

A central heater is a single unit that supplies heat to the entire residence. An individual one supplies heat by sectors.

Air Conditioning

If the property has central air conditioning, mark "central" in the air conditioning field. If instead it has one or more individual air conditioners, record "individual" and if it does not have any, enter "non-existent".

Example: In an apartment that has an air conditioning unit installed on the living room wall and another on the master bedroom wall, "individual" must be entered.

Hot Water

The same specification used in the two immediate previous items must be used: "central", "individual", and "non-existent".

Others

Detail other services not described in the previous sections.

Double Circulation

It must be recorded whether the property has this characteristic, indicating "yes" or "no".

Double circulation refers to the existence or non-existence of a corridor or hallway that allows free movement within the intimate area of the residence, without having to pass through the living room and/or dining room.

Sauna

It must be recorded whether the property has this amenity, indicating "yes" or "no".

Pool

It must be recorded whether the property has its own swimming pool, indicating "yes" or "no".

The Appraiser must briefly describe, in the annex, the physical characteristics of the swimming pool. This description must specify if the pool is built on the land above or below ground level, if it has internal tiling or paint coating, etc.

Storage or Deposit

It must be recorded whether the property has a storage room or deposit, indicating "yes" or "no".

Generator Set

It must be recorded whether the property has a generator set, indicating "yes" or "no".

Others

If the property has other amenities or attributes not mentioned above, they must be detailed in this field. These must be excluded, meaning for the comfort of the occupants of the residence. Any other amenity of a common nature, such as those that might exist in a condominium or private neighborhood, must be recorded in Section III.

Examples of amenities to be included in this field are:

Tennis courts
Library
Private garden
Outdoor playground
Outdoor structures (bbq area, changing rooms, for pool, etc.)
Gym
Game rooms.

Additional Characteristics

This space will be used to detail other special attributes of the property that have not been completely described in the rest of the evaluation. Appraisers should ask themselves if the reading of the Property Description section provides an adequate and complete view. If not, they must add additional comments in this section of the form or on attached sheets. Below are examples of these additional attributes:

Superior quality interior finishes and fixtures - modifications or finishes of better quality or appearance than usual, in the interiors and in equipment or elements installed within the residence or incorporated permanently into the building or land.

Built-in electronic fixtures or equipment - fixtures or equipment, of an electrical nature, that have been added to the property or installed inside the residence.

Cathedral-style interior ceilings - interior ceilings that have been raised or that have greater height than usual.

Special fireplaces - a fireplace larger or of higher quality than usual, either in size or in a more attractive design.

Larger rooms - rooms of larger size than usual in family residences.

Extra space in closets - closets more spacious than usual, with greater storage capacity.

Adverse Characteristics/Deficiencies

This field should be used to describe any characteristic or defect that may have a negative impact on the price of the property. It is important to declare all adverse characteristics and deficiencies, for the purposes of securitization.

Below are examples of adverse characteristics and deficiencies:

Inferior quality interior fixtures and finishes - modifications inferior to usual, in the quality or appearance of interiors and in equipment or improvements, installed within the residence or installed permanently in the building or land.

Insufficient number of bathrooms - a property with fewer bathrooms than necessary, according to its number of bedrooms and total number of rooms.

Non-existence or insufficiency of elevator service - the property does not have elevator service or its service is inadequate, due to its age, condition, or capacity.

Kitchen too small - a kitchen of smaller size than normal.

Insufficient wall and ceiling insulation - insufficient quality or quantity, based on external conditions of noise, climate, etc.

Example of comment: The property subject to appraisal has three bedrooms located on the second floor of the house. The staircase providing access to the second floor is only 1 meter wide and is difficult to navigate. Additionally, the staircase has a passage restriction due to the height of the ceiling halfway up. Since this staircase constitutes the only access to the second floor, these limitations cannot be avoided.

Comments on its Conservation State

This field should be used to point out any significant comment regarding the current condition of the residence and its functionality. The term condition refers to the present physical state of the residence. The term utility refers to the functionality of the distribution and design of the property. Functional utility refers to the way in which the distribution of the property facilitates the individual function of each room.

Here, it must be commented to what extent the physical condition of a property is atypical for its respective market area and if it affects the value of the property positively or negatively.

For example, a newly installed roof can increase the value of a property. On the other hand, a roof with signs of leaks indicates a lack of maintenance and will probably reduce the value of the property. This should be recorded in this field. "Comments on Physical Condition and Utility".

It must also be commented to what extent the utility of a property is atypical and it affects its value, either positively or negatively. The utility of a property is generally related to its distribution. Examples of bad distributions include a dining room far from the kitchen and a single bathroom located in such a way that one must cross a bedroom to reach it. These distributions are not functional and can reduce the value of the property. On the other hand, good distributions minimize or eliminate these problems and create pleasant and desirable environments. A bedroom located at the back of a property near a garden, instead of being at the front near the street, will contribute to making a residence more desirable.

Example of comment: According to my inspection, the property is currently in very good condition. The residence was painted and shows signs of small repairs and improvements made recently. As a result, the residence is very attractive and looks very good. The real estate agent informed that most of the presumed buyers made comments about the good condition of the housing and indicated that he believed that, as a result, the housing sold faster.

Brief Description of Planned Improvements

If applicable, enter a brief description of the planned improvements in this field. The improvements proposed are those that have been planned and whose construction is expected in the near future, but which have not yet been carried out. The Appraiser must carefully distinguish between the improvements to be financed with funds from the loan application, which gave rise to the appraisal, and those improvements that will be carried out by the owner without the use of said resources.

The proposed improvements described must be tangible and have a determined completion date. If they were substantial, there should be plans of the residence or construction permits that the Appraiser can examine.

If the property in question included proposed improvements that have not been completely described elsewhere, it will be necessary to do so here and/or on supplementary sheets, in order to complete the picture for the reader.

If there were proposed improvements, the value of the property once the improvement is completed must be mentioned in this part of the form. All other parts must describe the property in its current state.

Example of Comment: The property in question will be expanded by the addition of a bedroom and a dining room with a total of 100 square meters, located at the back of the residence and attached to the north wall, adjacent to the existing kitchen. The proposed budget for the construction of this project is $15,000. The Appraiser examined the construction plans prepared by Architect Roberto Martínez dated July 1995. The planned date for the start of the projected construction is October 1995 and its duration is estimated at 4 months. In addition to this project, the owner indicated that the exterior of the housing will be repainted once the projected construction is completed.

III. DESCRIPTION OF APARTMENT BUILDING, PRIVATE NEIGHBORHOOD, (IF APPLICABLE)
NUMBER OF UNITS COMMON AREA MAINTENANCE CONDITION OF COMMON AREAS AVERAGE MONTHLY EXPENSES PERCENTAGE OF EXPENSES COMMON EXPENSES PENDING REALIZATION IMPORTANT BUDGETED EXPENSES TYPE OF PARKING ELEVATOR NUMBER OF ELEVATORS SECURITY YES NO ADEQUATE INADEQUATE YES NO NUMBER OF FLOORS BRIEF DESCRIPTION OF COMMON AMENITIES:
Purpose of this Section
Its purpose is to provide the Originator with an idea of the characteristics of the immediate surroundings of the property in question and/or if it is located within a condominium governed by the Horizontal Property Law (apartment or private neighborhood). Number of Units Enter the total number of housing units that make up the condominium building or the private neighborhood. This data can frequently be obtained from the administrator and must be confirmed by another source in case there was any doubt about the unit count report. Common Area Maintenance Enter in this field the name of the company responsible for the administration of the common areas of the condominium or private neighborhood. Depending on the corporate structure type of the administrator, it may be necessary to record the name of the manager or administrator responsible for the private neighborhood or condominium. If two or more people/companies coexist responsible for the administration of common spaces, record the one of greater relevance (based on their responsibilities) and mention that there is another one or others. Condition of Common Areas In this field, the condition/condition of the common surface must be entered, as observed on the date of its inspection. The common surface refers to the spaces contained within the community that are not for exclusive use.

The Appraiser must evaluate and describe the current condition of the common surface in relation to those of comparable properties. For this, they must inspect the neighborhood in order to obtain a thorough knowledge of the general characteristics and condition of the common spaces.

Subsequently, the condition must be qualified, using one of the following categories.

Poor: Means that the current condition, design, attractiveness, and functionality of the common surface is at a very low level. This indicates that the condition of said surface is substantially inferior to those of comparable condominiums, to

such that it will result in a significant reduction in the property's value.

Regular: Indicates that the current level of deterioration, design deficiencies, attractiveness, and functionality of the common area are clearly above normal. There is evident impairment, however, not as severe as in the "Poor" category. This category also indicates that its condition is somewhat inferior to comparable properties. The regular condition of the common areas will be sufficiently inferior to slightly reduce the property's value or delay its marketing.

Average: Means that the condition of the common space is consistent with the deterioration, design, and attractiveness of condominiums of similar age with normal maintenance and conservation characteristics. This indicates that the state of said area is equal to the market "standard" to which it belongs and is considered acceptable for comparable real estate. Most properties will fall into this category.

Good: Means that the condition of the common area is above average and that the level of deterioration and insufficiency is lower than expected due to normal deterioration levels for condominiums of similar age. This category indicates that the state of the common area is somewhat superior to that of comparable condominiums. The condition will be superior to the point of slightly increasing the property's value or shortening its marketing time.

Excellent: Means that the state of the common area shows a condition widely superior to normal deterioration and functional obsolescence presented by similar condominiums of similar age. There is a clear distinction in a condominium in excellent condition: it will have very little deterioration and superior design, attractiveness, and functional utility. This indicates that the condition of the common area is substantially superior to others, to the point of strongly increasing the property's value.

Example of Poor Condition: The property being appraised is a unit within a building under horizontal property ownership with 20 years of age that contains, for example, the following deficiencies not observable in comparable buildings:

two elevators, of which only one functions;
the common hallways within the building have insufficient lighting because some electric lamps do not work; and
the main entrance door to the residence is cracked.

Example of Good or Excellent Condition: The property being appraised is a unit within a building under horizontal property ownership with 20 years of age to which, for example, the following renovations have been made that are not observable in comparable buildings: during the previous year, the elevator was replaced; the common area hallways have new wooden flooring, and the plants located in the common areas are fresh and colorful.

Average Monthly Expenses
In this field, the average amount necessary to cover common expenses incurred by the building or private neighborhood condominium must be entered. The expenses from the last six months should be used to calculate the monthly average. Generally, these expenses can be obtained from the administrator or the seller.

Expense Percentage
The percentage corresponding to the appraised property in the total expenses.

Pending Common Works to be Carried Out
The works and/or common needs that have not been covered or carried out must be detailed. Uncovered needs refer to any aspect of the condominium that is insufficient to satisfy the needs of the occupants. In addition to personal inspection, the Appraiser must interview the manager and the real estate broker to corroborate the existence of the aforementioned conditions. These may include, but are not limited to:

Replace or improve landscaping - any part of the park that is insufficient and requires replacement or modification must be described. If it were found incomplete or ruined by time due to degradation or lack of maintenance, either functionally or in appearance, the Appraiser must point out that there are pending needs for attention.

Repave streets - any part of the streets that have insufficient pavement or significant surface damage must be considered.

Add additional parking spaces - the Appraiser must note the existence of an insufficient number of parking spaces and what classification (according to this Manual) the insufficiency presents: semi-covered garage, etc.

Any additional explanations of any of these needs must be included in an appendix. If none exist, indicate "none".

Significant Budgeted Expenses
Indicate if there is any significant expense that has been budgeted by the condominium or private neighborhood. These may be made through a cash expenditure or obtaining a loan to acquire or improve an existing asset. Frequently, money is saved to cover these expenses. These can have a positive effect on the property's value. The Appraiser must contact the administrator and/or the seller to inform themselves about these matters. These may include, but are not limited to:

Construction or improvement of a swimming pool Replacement of existing fences and security access Modernization or replacement of elevators

An explanation of how these expenses will affect the property's value must be included in an appendix. If they do not exist, indicate "none".

Parking Type
In this field, both the total number of parking spaces contained within the condominium (building or private neighborhood) and whether they are fixed or mobile, located off the public road (garage, semi-covered garage, etc.) or on the street, must be recorded.

Number of Floors
Record the number of floors in this field. As a rule, the ground floor is not counted within the number of floors, and each floor upwards (starting from Floor No. 1) is numbered sequentially from there on.

Elevator
In this field, it must be marked whether the condominium has elevator service(s). Additionally, it must be indicated whether the elevators provide adequate or inadequate service, based on their use. For example, when in the absence of a service lift/elevator, the main elevator is used for transporting objects or loads.

Number of Elevators
In this field, the number of elevators the property has must be recorded.

Security
Record whether there is or is not a security service.

Brief Description of Common Amenities
This field should be used to list the additional amenities contained in the condominium. A leisure area is a tangible or intangible benefit of a real estate property that increases its attractiveness but is not essential for its use. Examples of amenities include the following:

Swimming pool
Sauna
Jacuzzi
Tennis courts
Lounges or leisure areas (e.g., halls for receptions, parties, and games)

Example: If the property is a unit in a building that includes a pool, sauna, and gym, the detail to be entered would be: "the common leisure areas within the condominium include a pool, sauna, and gym."

IV. LAND DESCRIPTION
ZONING TYPE / DESIGNATION CONTROLLING AUTHORITY TOPOGRAPHY SHAPE AND PERIMETER DIMENSIONS VIEW SIGNIFICANT FLOOD RISK LAND (SQUARE METERS) MINIMUM ______UNCOVERED NO INFORMATION EXISTS ______COVERED ______TOTAL DRAINAGE QUALITY / STATE OF ACCESS STREETS SERVICES ELECTRICITY GAS TELEPHONE PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION WATER SEWER RAINWATER DRAINAGE PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION PUBLIC PRIVATE NO CONNECTION OBSERVATIONS ON THE LOT

Purpose of this Section
This section aims to provide a detailed description of the land on which the property subject to appraisal is located. This lot should, in general, be of a size, shape, and topography concordant and acceptable for its corresponding market segment. It should also possess similar services, street types, etc., as those available for comparable lots. The Appraiser must detail any atypical characteristics for the market that could influence, negatively or positively, the marketing. Additionally, they must record, if applicable, any potential reluctance on the part of potential buyers towards the particularities of the land if they were not compatible with the neighborhood or with the competitive requirements of the market.

Zoning Type/Designation
In this field, the zonal classification must be recorded exactly as named by the local zoning code. Additionally, the type of zoning used by the corresponding municipality to describe the permitted use must be noted. Abbreviations such as "R1" or "A1" alone should not be used as they may vary from one commune to another. An example of a correct entry would be "Residential - Single Family" or "Residential - 1-4 Units". This information is generally available through the municipality's zoning department.

Controlling Authority
Record the body responsible for determining the permitted zoning type in the area where the property is located. This is generally the municipality in which the real estate is located.

Topography
Record a brief description of the relief of the land in question in this field. This refers to the topographic characteristics or the configuration of its surface. This must be recorded in two parts. The first refers to the slope and one of the following designations will be used:

Level - a flat surface with zero gradient.
Slightly undulating - the surface presents slight undulations, almost insignificantly more inclined than level, but nevertheless presents a gradient greater than zero.
Moderate slope - a moderately inclined surface, but noticeably more inclined than slightly undulating.
Steep slope - a strongly inclined surface.

If the site is inclined, either moderately or strongly, the direction of the slope must be indicated. For example, "steep slope towards the south" would be a correct entry in this field.
The second part indicates the relative location of the land with respect to the street line. One of the following responses must be used:

Substantially below grade
Slightly below grade
Generally at grade
At grade
Slightly above grade
Substantially above grade

An example of a correct integration combining both sections would be "slightly above grade with moderate slope towards the west".

Shape and Perimeter Dimensions
In this field, describe the shape of the land and record its corresponding perimeter dimensions. The following examples can be used to describe the shapes:

Square
Rectangular
Triangular
L-shaped
Flag shape - a lot that has a very narrow part or section connecting the main part of the lot to the street.
Irregular - lot without a defined shape.

The shapes indicated above can be modified with qualifiers such as "basically", "slightly", or "very". For example, a lot can be: "basically square", "slightly irregular", or "very irregular".

View
In this field, the quality of the view the land has must be indicated. The following phrases can be used to describe the corresponding view:

No view - The view corresponds only to the street in front or immediate neighborhood.
Some view - View of the surrounding area. View of open space such as a park or some other attractive view, limited view of the horizon.
Important view - View of the horizon, body of water or river, very good view, or other very desirable scenic characteristic.

Drainage
Detail the drainage characteristics of the lot in question in this field. Drainage refers to drainage systems, such as pipes and conduits intended to eliminate rainwater or groundwater as well as discharge and sewer systems. The Appraiser must distinguish whether the drainage corresponds to the lot or the neighborhood. If the lot in question has adequate drainage characteristics, mark the "Adequate" box; otherwise, mark "Inadequate".

Example: A house located at the foot of a hill and in whose garden the waters from said hill drain should be classified as inadequate.

Flood Risk
In this field, the level of risk the property could face in case of flooding must be indicated.
The Appraiser must take into account not only the probability of occurrence of floods in the region, but also the topographic slope and other characteristics of the land. If this risk is considered significant based on known data of previous floods or is officially considered as an area presenting flood danger, mark the "Significant" box.

If the flood risk is considered low or very low based on previous experience in the area, mark the "Minimum" box. If there is no information available for the lot in question and the Appraiser has no information on previous floods, mark the "No information exists" box. The Appraiser, if possible, should contact local planning authorities to obtain this information.

Land
In this field, three data points must be recorded, expressed in square meters, regarding the following surfaces:

Uncovered, which consists of the free area in the front, sides, and rear of the lot, Covered, which refers to built areas or with improvements, and Total, which refers to the perimeter surface or size of the property's land.

For individual units in buildings, enter the total area of the condominium's land.

Street / State of Access Streets.
Describe in this field the quality and conditions of the access street corresponding to the land of the property to be appraised. The factors to be considered will be, among others: type of street, width, finishes (asphalt or concrete, curbs, rainwater drains, lighting, etc.) and transit speed. The categorization to be employed is the following:

Poor: The quality and access conditions are markedly inferior to those of comparable properties, to the point that the property's value will be considerably reduced.

Regular: This category indicates that the quality and access condition are slightly inferior to those of comparable properties. This condition will slightly reduce the value of the property in question.

Average: The quality and access condition is equal to the market norm or average and is considered acceptable. Most properties will fall within this category.

Good: The access characteristics are superior to those of comparable properties, which will be significant enough to slightly increase the value of the real estate.

Excellent: The quality and access condition is substantially superior to that of comparable properties. Its condition will be so superior as to markedly improve the property's value.

Services
The listed services were divided into three sub-fields:

Public: Those supplied by a service company, whether public or private.
Private: Those supplied, either by a single-user system or a few-user system.
No connection: Those that do not have any of these services. In these cases, the Appraiser must verify the availability of the service.

Electricity
Gas
Telephone
Water
Sewer
Rainwater Drainage

Observations on the Lot
This field should be used to provide details about the special characteristics of the land that have not been fully described elsewhere in the Appraisal Report. The purpose is to provide the reader with the most complete picture possible in order to have a thorough vision of the land (if necessary, use an attached sheet). Additionally, the Appraiser (if possible) should try to obtain soil reports or environmental reports from the seller. These should be summarized here. In the impossibility of obtaining such reports, the comments will be based on personal observations.

Below are a couple of examples:

Sandy terrain - may give rise to possible bearing capacity deficiencies.
Dark stains on the terrain - possible soil contamination.

V. NEIGHBORHOOD DESCRIPTION
URBAN TYPE SUBURBAN RURAL GROWTH INDEX NEIGHBORHOOD SECURITY SERVICE MORE THAN 75% 25-75% GROWING STABLE YES NO LESS THAN 25% PROPERTY VALUES DEMAND / SUPPLY MARKETING TIME GROWING STABLE DECLINING SCARCE BALANCED LESS THAN 3 MONTHS 3-6 MONTHS EXCESS SUPPLY MORE THAN 6 MONTHS PROPERTY VALUES IN NEIGHBORING AREAS FROM $ TO $ (TOTAL PRICE) FROM $ TO $ (PER SQUARE METER) AGE OF PROPERTIES IN NEIGHBORING AREAS FROM TO (IN YEARS) LAND USE (%) MAIN CHANGES IN LAND USE PARKING FACILITIES RESIDENTIAL COMMERCIAL UNLIKELY PROBABLE IN PROCESS (EXPLAIN) TYPICAL INDUSTRIAL OTHER NEIGHBORHOOD CHARACTERISTICS. FACTORS INFLUENCING THE MARKETING OF PROPERTIES IN THE NEIGHBORHOOD (PROXIMITY TO WORK AND ENTERTAINMENT PLACES. EMPLOYMENT STABILITY, MARKET ATTRACTIVENESS, ETC.) OBSERVATIONS ON MARKET CONDITIONS (TRENDS, EMPLOYMENT (MAIN EMPLOYERS, OTHER FACTORS INFLUENCING THE VALUE OF REAL ESTATE))

Purpose of this Section
Its objective is to provide the Originator with a full understanding of the characteristics of the neighborhood near the property and also how it is defined and differentiated from others. This section defines the boundaries and dimensions of the neighborhood, describing its homogeneity.

When the property is located within a condominium (building or private neighborhood), this section must describe the zone surrounding it.

A neighborhood could be defined as a group of lands with complementary use, its boundaries being the geographic zone that exerts influence on the property's value.

These boundaries may coincide with changes in land use, physical characteristics such as: street layout, land, vegetation, and lot sizes. Likewise, natural characteristics can frequently represent important zone boundaries, such as watercourses and changes in terrain height.

Some elements that contribute to delimiting neighborhoods are:

Land use schemes
Land and vegetation
Density of building structures
Availability and quality of services
Access to public services.

Neighborhood reputation
Lot size and dimensions
Street layout and width
Maintenance and care of properties
Nuisances and dangers
Access to job sources

Type
In this field, the type of neighborhood where the property is located must be indicated, which can be:

Urban: neighborhood located within the central or main part of a city; Suburban: neighborhood located adjacent to the main or central part of a city; and Rural: refers to open country or any area beyond the suburban.

Built
In this field, the degree of urbanization of the neighborhood must be indicated, which presents three alternatives listed below. The degree of urbanization refers to the percentage of available land that has been built within a neighborhood.

"more than 75 %",
"between 25 % and 75 %",
"less than 25 %".

For example, if a neighborhood has approximately 100 lots, of which 10 remain vacant, the Appraiser will mark the "more than 75 %" box.
This information can be obtained from a map of the area or by counting/estimating the number of vacant/built or under construction lots and the total lots comprising the neighborhood.

Growth Index
In this field, the development trend the neighborhood is experiencing must be indicated. It is not a precise percentage calculation of the number of constructions occurring each year, but rather a general indication of the development activity of the same. When a growing number of works are being developed in a neighborhood, the "growing" sub-field must be indicated. When construction maintains a constant rhythm in the neighborhood or the same has developed fully and therefore stopped its growth, the "stable" field must be marked.

Neighborhood Security Service
Indicate whether the neighborhood has a private security service paid for by the neighbors, partial or total.

Property Values
The trend in property values in the neighborhood in question must be indicated. Generally, this is evaluated based on a common standard, such as the average price per square meter. When property values within the neighborhood are rising, the sub-field "rising" must be marked. When these values do not change, the sub-field "stable" must be marked. When they fall, the sub-field "falling" must be marked.

Demand/Supply
This field is subdivided into three ("Scarcity", "Balanced", and "Excess Supply"), with the purpose that the Appraiser records the relationship between the number of properties sold in a neighborhood and the number of properties available for sale. Demand is a measure of the general desire to access that neighborhood, while supply is a measure of the quantity of properties available in that location. A market may have 20 sales and 20 new listings in a given month, while another may have two sales and two new listings in the same period. In these cases, both should be classified as "Balanced". If there are more sales than listings, the "Scarcity" box must be marked. If, on the contrary, there are more listings than sales, the "Excess Supply" box must be marked. Generally, the most accessible source of information is the real estate agent.

Marketing Time
Marketing time is the average amount of time that a property similar to the one being appraised, in the same market as it, will take to be sold when offered at a price close to its real market value. It is an estimate of the measure of the supply time necessary until the property is sold. This will be done based on the marketing time for properties (of similar characteristics) in the neighborhood, with its classification being:

"Less than 3 Months",
"3-6 Months", and
"More than 6 Months".

Property Values in Neighboring Areas
In this field, the value range corresponding to properties located in the immediate vicinity will be entered. This refers to the variation that might exist between the predominant monetary values, excluding any anomaly resulting from, for example, an atypical property. The range begins with the lowest monetary value, ending with the highest. The minimum and maximum values for the neighborhood must be indicated in the corresponding lines, expressed in terms of total price and price per square meter.

Age of Housing in Neighboring Areas
The range in the age of constructions in the neighborhood must be indicated in this field. This entry must correspond to the variation between the different predominant original constructions in the neighborhood, excluding any anomaly. The range begins with the one of least age, ending with the one of greatest age. The minimum and maximum age of the neighborhood's constructions must be indicated in the corresponding lines.

Land Use
In this field, the percentages corresponding to the different uses given to the land in the neighborhood in question will be recorded. These uses are classified as follows:
Residential: land used for the development of housing units.
Industrial: land developed especially for factory use, Commercial: land used for the development of office and retail space, and Other: those used for any other use.
As noted above, the uses must be quantified and expressed in percentage terms, with the sum equal to 100%. For example, a neighborhood may be 80% residential, 15% commercial, 0% industrial, and 5% other uses.

Major Changes in Land Use
In this field, the probability that a significant change in the use of land in the neighborhood will occur in the future must be indicated. If there is little probability, mark the "Improbable" box. If there is a high probability that some significant change will occur, mark "Probable". If a significant change is currently occurring, mark "In Process". If the "Probable" or "In Process" box has been marked, add a brief comment about the change in the "Neighborhood Characteristics" item. Below are some examples of changes in land use. For commercial or industrial uses - Changes the characteristics of the neighborhood, positively or negatively. New streets, highways, and freeways - Extensive modification of a neighborhood's surface for the construction of streets, highways, and freeways. New recreational facilities - The creation of these occupies vacant lots or alters parcels whose original destination was something else. Typical Parking Facilities In this field, describe the type of typical parking that can be found in the neighborhood in question. These may be:

Closed garages - Structures used for vehicle parking.
Parking space - Covered space without walls for parking.
Multi-level parking structures - Separate structure of more than one floor used exclusively for parking cars outside the public roadway.
On-street parking surface - Parking spaces only on the public roadway, not included in any way within the property.

Neighborhood Characteristics
A brief description of the neighborhood's characteristics must be included, as well as any additional expansion or explanation required to describe more clearly the elements contained in the previously mentioned items. This must provide a general understanding of the current state of the neighborhood in which the property to be appraised is located.

Factors Influencing the Marketing of Properties in the Neighborhood This field should be used to comment on the factors that affect the marketing of properties in the area. This comment should include the items treated above as well as any other that affects the value of the property being appraised. In particular, comments should be made on any favorable or unfavorable factor that may have an impact, both in the present and in the future, on the long-term stability of property values in the neighborhood. The ease of marketing properties in the neighborhood refers to their possibility of being sold. In addition to proximity to workplaces and leisure areas, employment stability, etc., the quality of schools and/or educational services in the area, public parks, characteristic aspects of the neighborhood, and the effect of any noise or unpleasant odors that might be objectionable must be considered. The best source of information in this regard is generally the real estate agents operating in the area.

Observations on Market Conditions
The Appraiser must include in this space any relevant comments on market conditions. This refers to the current conditions of the real estate market, which may impact the monetary values of properties in the area. Comments must be included on real estate trends such as the growth in demand for building permits and construction activity, the availability of work and/or employment in the area, and any other important factor that influences the value of the property in the area in question.

VI. COMPARABLE
COMPARABLE
SALE PRICE OR QUOTE SALE DATE OR QUOTE PROPERTY TYPE PROPERTY ADDRESS (STREET AND NUMBER, FLOOR, APARTMENT, LOCALITY, PROVINCE, POSTAL CODE) CONSTRUCTION TYPE LIVING AREA PRICE PER M2 YEAR OF CONSTRUCTION LAND AREA COMPARISON OF CHARACTERISTICS AGE MAINTENANCE STATUS MARKETING PARKING INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR CONSTRUCTION QUALITY LOCATION COMFORT NUMBER OF ROOMS INFERIOR EQUIVALENT INFERIOR INFERIOR EQUIVALENT INFERIOR EQUIVALENT SUPERIOR OBSERVATIONS ON SIMILARITIES OR DIFFERENCES WITH THE APPRAISED PROPERTY VALUE OF THE APPRAISED PROPERTY IN RELATION TO THE COMPARABLE:
Purpose of this Section
Within the Market Value procedure, there are two parts that are important in this process.

The adequacy of recent comparable sales and quotes and the reliable confirmation of data related to said operations and quotes, and
The analysis of the comparables and the weighting of the information gathered transferred to the property to be appraised, lead to a reliable conclusion of the market value.
The appropriate selection of comparable sales requires that the Appraiser obtain information on those sales and quotes of nearby properties with similar characteristics to the one considered. These comparables must represent recent transactions, purchase offers, or classified ads. Among the typical sources of information are:
Neighborhood and area inspections, carried out with the objective of identifying properties that are for sale.
Conversations with real estate agents who have knowledge of the area where the property is located, and
Review of classified ads recently published in newspapers or other specialized media.
Once the Appraiser has finished the analysis of each comparable sale and has formed an opinion of the value range for the property based on each comparable, they will be in a position to begin the final step of the appraisal process. The process of arriving at a conclusion on the final value of the property is called "reconciliation" and represents the point in the appraisal process where the Appraiser considers all relevant data on the property in question, the comparable properties, and the current and expected economic conditions of the real estate market, forming their final opinion on the value. This opinion must be based on the value characteristics of the comparable properties. It will not be a figure calculated mathematically such as the arithmetic average of the three values. The Appraiser must form an opinion of the property's value that reflects the relative weighting of each comparable property, based on the degree of similarity or difference, the degree of reliability of the information regarding the comparables, and any other pertinent information about the market that the Appraiser deems necessary. Price In this field, the sale price, purchase offer, or quotes of the comparable property must be indicated. This price must be the actual sale price. If the sale price is subject to any type of concession or condition, these must be commented on and reported in the "Observations on similarities or differences with the appraised property" section. This information, as well as any other information regarding the comparable properties, must be confirmed by at least one of the parties involved (buyer, seller, real estate agent, intervening notary).

Sale or Quote
In this field, it must be indicated whether the comparable property is a sale, purchase offer, or quote.
For the purposes of this manual, a "sale" is defined as the act by which ownership of a property is transferred and the price is paid by the buyer to the seller.
A "purchase offer" is given by the moment in time when a qualified, capable, and willing buyer presents a good faith offer and the seller accepts it, either tacitly or in writing. A "quote" represents only the price asked for a property. Sale or Quote Date In this field, the date of sale, purchase offer, or quote must be recorded. In the case that the comparable is a quote, the date to be indicated must be the one on which the property was first published. If there are variations in the quote, these must be commented on in the bottom part of the form indicating the respective dates on which they were modified. Again, this information, as well as that referred to the selected comparable properties, must be confirmed by at least one of the parties involved in the sale (buyer, seller, real estate agent, intervening notary).

Property Type
Record in this field the type of property, with its classification being the following:
A) House (includes chalet) or Duplex with:
free perimeter (without party walls) semi-free perimeter (with one party wall) between party walls (with two or more party walls) B) Apartments under horizontal property regime The Appraiser must also clearly record in this box when it is a property subject to the horizontal property regime. Consequently, some possible property types are:
House between party walls
Duplex semi-free perimeter under horizontal property regime Chalet free perimeter Apartment One of the property types described above must be indicated. If it does not fit within the previous classification, record "others" in the field and provide, in an annex, a detailed description of the type of property in question.

Property Address
Record in this field the address of the comparable.
If the property address does not clearly and completely identify the property to be appraised, additional information such as identifying numbers or letters of the unit must be incorporated in this field or in an appendix.

Construction Type
In this field, record the predominant materials used to construct the property.
The type of construction refers to the total construction of the building, including its structural components, exterior walls, and roofs.

Living Area
This must be expressed in square meters and is defined as the constructed habitable area between the exterior walls of the property and that is specifically used for housing. This definition encompasses usual spaces such as living room, kitchen, bedrooms, service areas, hallways, closets/dressing rooms, bathrooms, laundry room (with access from inside the property), and stairs connecting the different rooms of the house. The areas that should not be included are surfaces such as:

spaces for parking or vehicle storage,
balconies (covered or uncovered).
patios (covered or uncovered).
galleries, including those with metal enclosures,
storage rooms/trunks adjacent or not to the housing, which lack direct access from the interior of the property,
attics without significant improvements that make them habitable or those that have such improvements but whose height is equal to or less than 2.5 meters.
laundry rooms that can only be accessed from the exterior,
stairs leading to parking or attics without significant improvements that make them habitable or those that have such improvements but whose height is equal to or less than 2.5 meters.

Price per Square Meter
In this field, the price per square meter must be entered. This can be calculated by dividing the price indicated above by the square meters of the "Living Area".

Year of Construction
In this field, the year in which the property used as a comparable was constructed will be recorded. If this data is not available, calculate it and indicate that the recorded information is an estimate, placing "(e)" next to the date.

Land Area
In this field, the land area of the property used as a comparable must be entered, expressed in square meters.

Comparison of Characteristics
The "Comparison of Characteristics", listed in the form, are divided into three sub-fields, namely:
Inferior: Indicates that the characteristics of the comparable property are inferior to those corresponding to the property being appraised, to such an extent that the price of the comparable will require an upward adjustment to compensate for this specification. Equivalent: Indicates that the characteristics of the comparable property are, in general terms, similar to those corresponding to the property to be appraised, therefore requiring no adjustment to compensate for this factor. Superior: Indicates that the characteristics of the comparable property are superior to those corresponding to the property to be appraised. These characteristics will be superior to such an extent that the price of the comparable will require a downward adjustment to compensate for these specifications.

Observations on Similarities or Differences with the Appraised Property There are two main aspects that must be considered in this item. The first indicates how a characteristic of the comparable property relates to its counterpart in the property to be appraised. For this item, the Appraiser must indicate why such a specification is inferior, equivalent, or superior as concluded above. Secondly, the Appraiser must ensure that all factors significantly affecting the value of the property to be appraised are included in these comments. If relevant topics are omitted, the Reviewing Appraiser will assume that they have not been considered. The information to be incorporated in this field relates to the characteristics listed in the following items of the form: age, maintenance status, marketing, parking, construction quality, location quality, comforts, and number of rooms. However, it must be taken into account that not all these factors need to be commented on, but only those that may exert a significant influence on the value of properties in the real estate market. Furthermore, and although land (lots) and residential areas are not included in the form, they constitute an important factor for potential buyers. Therefore, comments on these two aspects must be included. The different characteristics will have different levels of significance in each zone, so the Appraiser must investigate which are the relevant factors in the market where the property to be appraised is located. The Appraiser must ask themselves if the price a buyer would be willing to pay for the property could vary by more or less 2.5% solely due to the incidence of the characteristic in question. If the answer is affirmative, that specification must be reported and commented on.

Value of the Appraised Property in Relation to Comparables Nos. 1, 2, and 3 In this field, the Appraiser must enter the most accurate value range they can reasonably estimate for the comparable property in question. Additionally, they must explain in this space the process followed to analyze, weight, and sum each of the specifications commented on in the previous field, in order to estimate their joint influence on the property's value.

IV. VALUATION
ESTIMATED COMMERCIAL VALUE (IN THE CONDITION IT IS IN) $ TOTAL VALUE $ (PER M2.)
VALUE ONCE COMPLETED (IF IMPROVEMENTS ARE PROJECTED) $ TOTAL VALUE (PER M2) APPRAISAL DATE COMPONENTS TOTAL SQUARE METERS PRICE PER M2. (U$S.) TOTAL (U$S.)
LAND
COVERED AREA
SEMI-COVERED AREA
UNCOVERED AREA
PARKING
COMFORTS
STORAGE / DEPOSIT
OTHERS
TOTAL
EXPRESS OPINION OF VALUE IN RELATION TO COMPARABLES:
ADDRESS OF APPRAISED PROPERTY PROPERTY INSPECTED YES NO APPRAISER NAME SUPERVISOR NAME (IF APPLICABLE) SIGNATURE DATE X SIGNATURE DATE X Purpose of this Section It is to reconcile the ranges calculated for the three comparable properties and arrive at a final value for the property to be appraised. To this end, it must be remembered that the property is appraised for residential use, whether permanent or non-permanent housing. Commercial spaces that the property might have should not be taken into account, unless said commercial spaces can be converted without the need for substantial modifications into housing spaces. As an example, if the property of a professional is appraised who has an office in a bedroom, if that surface must be taken into account as a bedroom. If, on the contrary, the property includes a commercial premises that due to its characteristics can only be used as a commercial premises, that surface should not be taken into account, although its positive or negative effect on the value of the residential property should be.

Estimated Commercial Value
In this field, both a total value and a value per square meter of covered habitable surface will be indicated. The estimated commercial value must be based on the state and condition in which the property is found on the indicated appraisal date (generally, the date on which the property was inspected).

Value Once Completed
This data is relevant when the property to be appraised has planned construction improvements and the Originator requests an estimate of the property's value based on the completed construction condition. As in the previous point, the value arrived at must be entered, expressed as a total value and as a value per square meter of covered habitable surface. The Appraiser must expose and describe all those important or substantial improvements that will not be financed with resources from loans. These improvements must be described and taken into account in this field, provided they meet the following two conditions:

They are significant enough to require a building permit, and
They will be completed within a period of 12 months from the date of inspection for the appraisal.
any proposed improvement that does not meet these conditions must not be taken into account in this field.

Appraisal Date
In this field, the date on which the value of the appraised property was estimated must be recorded. Generally, this will be the date on which the property was inspected.

Components
In the following fields (Land, Covered habitable surface, Semi-covered surface, Uncovered surface, Parking, Comforts, and Storage/Deposit), the Appraiser must break down the components of the Estimated Commercial Value arrived at, by using the comparable valuation method. This breakdown does not aim to replace the aforementioned method nor impose on the Appraiser a methodology to follow in determining their opinion of value. Its purpose is to provide the reader with more detailed information. The Appraiser must express the data required for each component in:

square meters,
price per square meter, and
total price, which results from multiplying the two previous data points.
If the component does not correspond or is not significant in the valuation of the property, indicate "N/A" (not applicable) in the corresponding field.

Land
The value to be entered in this field will result from multiplying the perimeter dimensions of the uncovered land by the price assigned per square meter. Such price must be the

resulting from weighting all the characteristics contained in Section IV, Land Description, adjusted (if applicable) based on the comparable valuation method.

Covered Habitable Area
This must be expressed in square meters and is defined as the built-up habitable area between the exterior walls of the property that is specifically used for housing. This definition encompasses habitable spaces such as living rooms, kitchens, bedrooms, service areas, hallways, closets/dressing rooms, bathrooms, laundry rooms (with access from inside the property), and stairs connecting the different areas of the home.

The determination of the habitable area must be obtained from reliable sources, such as final construction plans or through measurements made by the Appraiser. In all cases, the Appraiser must assume responsibility for the accuracy of the data. When determining this area, 50% of party walls shall be counted. Perimeter walls shall be taken at 100%.

The value to be entered in this field will result from multiplying the dimensions of the covered habitable area by the price assigned per square meter. This price will result from weighting all the characteristics contained in Sections II, III, IV, and V of the Appraisal Report, adjusted (if applicable) based on the comparable valuation method.

Semi-Covered Area
These are defined as areas that have, at least, one open side and whose characteristics allow the occupants of the property to use them as an extension of the covered habitable area. This categorization also includes those spaces that have been covered with metal, aluminum, etc. enclosures. Examples of these can be asados (barbecue areas), galleries, and balconies that are not merely ornamental.

The value to be entered in this field will result from multiplying the dimensions of the semi-covered area by the corresponding price assigned per square meter. This price will result from weighting all the characteristics contained in Sections II, III, IV, and V of the Appraisal Report, adjusted (if applicable) based on the comparable valuation method.

It is expected that these areas will have a value per square meter lower than that assigned to the covered habitable area. Generally, it will have a value range of up to 60% of that area.

Uncovered Area
The value to be entered in this field will result from multiplying the dimensions of the uncovered area by the corresponding price assigned per square meter. This price will be adjusted (if applicable) based on the comparable property valuation method. Examples of these include patios and gardens.

Parking
The amount to be included in this field must correspond to the standard values of the respective market area; adjusted (if applicable) based on the comparable valuation method.

Amenities
This field includes those additional features that add value to the property and are for the exclusive use of its occupants. Examples of these can be pools and saunas. For houses, these amenities could extend to tennis courts, sprinkler irrigation, generator sets, etc. The value to be recorded will be the sum of the individual values of each amenity adjusted (if applicable) based on the comparable property valuation method.

Storage/Depository
Only those to which access is from outside the home or that are separated from it will be included in this field. The value to be recorded will be based on dimensions, construction quality, ease of access, etc., adjusted (if applicable) based on the comparable valuation method.

Others
In this field, the Appraiser must include those components that they consider relevant and that were not contemplated in the previous categorization.

Total
This will be the sum of the values corresponding to the components described above.

Some of the values corresponding to the above categorization, such as parking, storage/deposit, and uncovered area, may be close to zero or even negative if they do not meet the minimum requirements for those other properties that make up the same market segment.

Express Opinion of Value in Relation to Comparables The field must include comments on which comparable properties have been used as a reference to arrive at the final estimated value and why they were chosen. Generally, those comparables whose global nature is most consistent with the property being appraised and which simultaneously require the least amount of adjustments to the values of their characteristics will be used more frequently.

Below is an example of appropriate text to be included in this field:

“The estimated value range between $175,000 and $165,000 provided by comparable sale number two was considered the best indicator of the value of the property to be appraised. This is because it was a recent sale in a similar building in the neighborhood of the property to be appraised. Comparable sale number one, which provided an estimated value range between $180,000 and $190,000, was quite similar to the property in question, except that its location and leisure areas were superior. This comparable sale was useful to the evaluation although, in the final analysis, a slightly lower weight was assigned to it. Comparable sale number three, with an estimated value range between $170,000 and $180,000, had numerous characteristics that required adjustment. Furthermore, the auctioneer who conducted the sale did not provide many details about it, a fact that reduced the Appraiser's confidence regarding the accuracy of the information. Very little weight was assigned to this sale. Finally, and assigning the greatest weight to sale number two, it is the opinion of this Appraiser that the final value, in the state and condition in which the property in question was found on September 11, 1995, is $180,000.”

Address of the Appraised Property
The data to be entered must be the same as that recorded in Section I. “Appraisal Information”.

Name of the Appraiser
As with appraisal companies, the name of the Appraiser must be included so that the financial entity can monitor the quality of the appraisals presented.

Signature
This field is intended for the insertion of the signature of the person who performed the appraisal.

Date
This will be the date on which the appraisal report is completed.

Property Inspected
The supervising Appraiser must indicate “yes” or “no” whether they personally conducted an inspection of the property.

Supervising Appraiser Name
This is the supervising Appraiser, belonging to the appraisal firm of the financial entity, who has reviewed the appraisal. This information must be included so that the Originator and other involved parties know who is responsible for the information and conclusions presented in the appraisal.

Signature
This space is intended for the signature of the person who supervised the appraisal.

Date
This will be the date on which the review of the appraisal report is carried out.

B.C.R.A. STANDARDIZATION OF MORTGAGE LOANS ON HOUSING
ANNEX III
TO
COMM. “A” 2563
MINIMUM GUIDELINES FOR THE CREDIT CONTRACT
WITH MORTGAGE GUARANTEE

MINIMUM GUIDELINES FOR THE CREDIT CONTRACT WITH MORTGAGE GUARANTEE In the City of ………………, Province of ………………, on the ……………… day of the month of ……………… of …………………, APPEAR: ………………, persons capable and known to me. INTERVENE. ………………, ………………, ………………, in their own name (borrower of the credit), hereinafter the DEBTOR and ……….. ………………… in the name and representation of………………, hereinafter THE BANK or THE CREDITOR. The APPEARING PARTIES resolve to celebrate the following credit contract with mortgage guarantee subject to the following clauses and conditions:
I – CREDIT CONTRACT
First. Object. Amount. Destination of the credit.
Second. Sworn declaration by the borrower. THE DEBTOR declares under oath: a) that they possess the legal, patrimonial, economic, and financial capacity required by the regulations governing the credit as well as knowing all and each of the provisions and norms of the Central Bank of the Argentine Republic relative to this type of financing, including those subject to special conditions, to which they commit to adhere in all respects; b) that the age of the building of the property does not exceed …………. years; c) that the amount of the credit does not exceed the ………..% of the total value of the property; d) that both the borrower of the credit and the cohabiting family group, have permanent and sufficient monthly income that ensures the repayment thereof in the terms and conditions agreed upon; e) that they expressly accept the verifications that will be carried out by the creditor and that in the event that lack of truthfulness, falsification, or total or partial concealment of the information supplied is proven, this will result in the forfeiture of terms in accordance with the terms of Clause Eleventh of the present, in addition to the civil and criminal sanctions that apply. The persons intervening under the common denomination of DEBTOR assume joint and several liability for all effects of this contract. Third. Term. The credit is granted for a term of ……………… by which the maturity of the last amortization installment as agreed in the following clause will operate the …… Fourth. Form of capital amortization. (The following wording applies when credits use the French system or the German system. Other typologies may have other wording). If a French amortization system is foreseen, draft: THE DEBTOR obligates themselves to repay the capital in ……….. monthly and consecutive installments, with the first maturing on day ….. and the remaining on the ……. of each month or the next banking business day if applicable, whose amount will result from the application of the so-called “French system”, according to the formula established in Communication ...... of the B.C.R.A. (Include the development table). (If the loan is at a fixed rate, draft: “The amount of each installment is fixed at the sum of U$S ......”. If the loan is at a variable rate draft: “The initial installment is fixed at the sum of U$S ......, said amount will vary month to month according to the determination of the interest rate stipulated in Clause Fifth”). If a German amortization system is foreseen, Clause Fourth would be drafted as follows: THE DEBTOR obligates themselves to repay the capital in ...... monthly and consecutive installments, with maturity on the first day...... and the remaining on the ...... of each month or the next banking business day if applicable. The amount of each installment will be equivalent to the amount resulting from the division of the outstanding capital balance by the number of installments to mature, including the one motivating the calculation.

Fifth. Interest. (The following wording applies when credits use the French system or the German system. Other typologies may have other wording). If a French amortization system is foreseen, draft: From the date of this document until its effective payment, the loan generates a compensatory interest due on balances payable by monthly periods, concurrently with the capital amortization installments. (If a fixed rate is agreed, draft; “The interest rate of the loan will be ......% nominal annual, equivalent to ......% effective monthly”. If the loan is at a variable rate draft: “Along with each capital installment, the debtor must pay a variable interest calculated on the outstanding capital balance, for the monthly period elapsed. Such interest will be equivalent to ...... (each creditor will set objective criteria for definition) excluding the Value Added Tax or any other current or future tax, which in case of applicable, will be borne by the debtor party and will be cancelled concurrently with each interest payment. The debtor party commits to inform the Creditor of their situation regarding VAT and in case of not doing so, the Creditor will consider them as an unregistered taxpayer with all the respective fiscal consequences emerging from said tax category. The rate of the first period will be ......% nominal annual, equivalent to ......% effective monthly”. Sixth. Expenses and commissions. Tax Withholdings. To the capital installment plus the interests agreed upon according to what is established in Clause Fifth above, the sum corresponding to the payment of life and property insurance, which are established in the present contract, will be added. All sums of money payable by the DEBTOR under the present Contract will be paid free and clear, without withholding or deduction, of any tax, fee, or levy of any kind, present or future, applied, levied, collected, or withheld by any authority, unless the withholding or deduction of such taxes, fees, or levies is required by law or applicable provision. In such case, the DEBTOR will pay the additional amounts necessary so that the net amounts received by the CREDITOR (after taking into account such withholding or deduction) are equal to the amounts that the CREDITOR would have received had the withholding or deduction of said taxes or duties not been required. It is expressly established that this clause will apply even in cases where the withholdings or deductions had not corresponded to be made, or were made at a different rate, had there not been a transfer of the credit instrumented by the present.

Seventh. Currency of payment in pesos or in United States dollars. (In the event that it concerns loans in United States dollars, the following paragraph will be included). All payments stipulated in the present contract must be made in freely available United States dollars, and not in another currency, and the Debtor expressly, firmly, irrevocably, and unconditionally recognizes that all payment obligations arising from the present credit will remain valid and enforceable until the CREDITOR has received the exact amount of United States dollars that correspond to be paid under the credit that is instrumented by the present. Eighth. Payment domicile. Payments must be made –without prior notice or requirement of any nature– at the domicile of the CREDITOR or where they indicate in writing in the future to the DEBTOR, within the same city and during public service hours, in the currency agreed upon in bill or transfer, to the account indicated by the CREDITOR. The DEBTOR recognizes and accepts that any delay in payment not attributable to the CREDITOR and derived from payments effectuated through values to be presented for collection (checks, drafts, etc.) or through banks, mail, commissionaires, third parties, etc., will run at their expense and will be considered exclusively caused and the exclusive responsibility of the DEBTOR, and that the payment date will be considered valid for all effects only that on which it is possible for the CREDITOR to collect their credits under the present. In the event that the payment dates of capital or interest under the present Contract fall on non-banking business days or a day on which the CREDITOR does not perform operations with the public in the city of the payment domicile, the corresponding payments must be made on the next immediate banking business day. To this effect, a non-banking business day will be considered any day on which financial entities were obliged to have their doors closed to the public by disposition of a competent authority in the City of Buenos Aires, not considering such those that were optional holidays. All other calendar days will be considered banking business days. Ninth. Automatic debit. Other compensations. The CREDITOR is expressly authorized to debit, after conversion to the agreed currency, if applicable, any amount owed under the present contract, whether capital, interest, penalty interest, taxes, expenses, commissions, or any other amount whose payment or reimbursement is the responsibility of the DEBTOR under the present contract (whether on the original payment dates provided in the present contract or on the earlier date that corresponds if early forfeiture of the credit is declared in accordance with what is provided in Clause Eleventh) in the checking accounts, savings accounts, or other accounts of the DEBTOR (whether opened in their name or with other persons), even in overdraft and without any interpellation, without those debits constituting novation, so the
existing guarantees will remain valid including the mortgage constituted hereby in all accordance with what is provided by articles 3109 and 803 of the Civil Code and 773 of the Commercial Code. The expenses arising from eventual exchange operations will be borne by the DEBTOR. The DEBTOR consents to the interest that accrues due to debtor balances that arise in their checking account being debited and capitalized once per calendar month and on the date that the CREDITOR determines, prior to notification to the debtor. The powers of the CREDITOR established in this clause may be exercised on their own account while they hold the title of the credit that is instrumented by the present, as well as on behalf and order of future assignees of the credit in case the CREDITOR continues to be in charge of the collection of payments as an agent for the assignees.

Tenth. Default. Default will occur ipso jure and without the need for any requirement or interpellation due to non-compliance with the obligations agreed in the present contract. Default will also originate ipso jure due to: a) the request of the DEBTOR for their bankruptcy, or their petition by third parties or request for composition or their declaration of bankruptcy, and/or b) the formation of a pre-bankruptcy agreement with part or all of the DEBTOR's creditors, and/or c) the falsity of any of the sworn declarations presented by the DEBTOR to obtain the present credit, and/or d) the non-compliance with any of the obligations assumed in this contract, in particular, those assumed in constituting the mortgage that guarantees it, and/or e) the verification by the CREDITOR or by the competent authority of the non-compliance with any legal provision or any other requirement imposed by the Central Bank of the Argentine Republic or another competent authority necessary for the granting or maintenance of the credit and/or f) if the property mortgaged hereby suffers deterioration to such a degree that it does not satisfactorily cover the obligations of the DEBTOR, provided that the DEBTOR does not replace the guarantee diminished by the deterioration or reinforce it or pay in cash an amount proportional to the deterioration of the property, within the term of fifteen days counted from the date of notification by the CREDITOR to that effect. In all cases of default, the CREDITOR may compensate total or partial their credit with funds or values or other assets of any nature that were deposited in the creditor entity or in any of its subsidiaries abroad in the name or order of the DEBTOR, without the need for any interpellation, the CREDITOR being able to proceed to the sale of the same at market price and apply the net proceeds from the sale in order to effectuate the compensation. Eleventh. Forfeiture of terms. Default in the fulfillment of any of the obligations assumed by the DEBTOR by virtue of the present contract, in particular the lack of timely payment of amortization services and interest or the occurrence of any of the scenarios enumerated in Clause Tenth will allow the CREDITOR to declare the forfeiture of all terms and, consequently, to demand the immediate and full return and reimbursement of the disbursed capital, and the application of the compensatory and penalty interests agreed upon until the total return of the outstanding capital plus the interest and costs and expenses that arise as a consequence of the execution procedure. Both interests, in case of default, are expressly agreed to be capitalized in a ......(daily, weekly, monthly, quarterly, etc., as determined by each Institution).

Twelfth. In all cases of default, the outstanding capital balance shall accrue, in addition to the agreed compensatory interest, a punitive interest equivalent to ...... (each creditor shall set objective criteria for definition, adjusted to the current regulations on the matter, established by the Central Bank).

Thirteenth. Assignment of the credit. The CREDITOR may transfer this mortgage credit by any of the means provided for in the law, with the assignee(s) acquiring the same benefits and/or rights and/or actions of the CREDITOR under this contract. If opting for the assignment provided for in Articles 70 to 72 of Law 24.441, the assignment of the credit and its guarantee may be made without notification to the DEBTOR and shall be valid from its date of formalization, in full accordance with what is established by Article 72 of the aforementioned law. The DEBTOR expressly states that, as provided by the aforementioned law, the assignment shall take effect from the date it operates and that it may only raise against the assignee the exceptions provided for in the aforementioned article. Nevertheless, in the event that the assignment implies a modification of the payment address, the new payment address must be notified to the DEBTOR in a reliable manner. The communication of the new payment address contained in the respective payment slip sent by the creditor to the DEBTOR shall be considered a reliable means. Having received notification of the payment address, no exception of documented payment may be raised regarding payments made to previous assignees after notification of the new payment address.

Fourteenth. Early repayments. In this operation, the term is presumed to be established for the benefit of both parties, leaving intact the DEBTOR's right to prepay the credit at any time, paying the total debt including accrued interest up to the date of prepayment. In this latter case, the CREDITOR shall have the right to demand payment of the ......% of the outstanding capital as compensation for early repayment, if the prepayment is made effective before one quarter of the total stipulated term has elapsed, compensation that the DEBTOR expressly accepts as reasonable compensation for the purposes of Article 51 of Law 24.441, expressly and irrevocably waiving any claim in this regard. Furthermore, the DEBTOR shall bear all expenses and costs, including (but not limited to) tax costs, arising from such prepayment. For the exercise of this option, the DEBTOR must communicate to the CREDITOR its decision to cancel the credit early in a reliable manner (a decision that, once communicated, shall be irrevocable) with no less than three days' notice prior to the date of prepayment and interest. If the DEBTOR agrees with the CREDITOR on the effectiveness of partial early payments, the CREDITOR shall have the right to demand payment of the following partial prepayment charges ......(to be filled in by each CREDITOR). In the case of partial early cancellations, interest shall be recalculated on the new outstanding capital balance.

Fifteenth. Absence of novation. In the event of modifications regarding increases or decreases in capital, extension of the term, renewal of the credit, or deferral of payment, or for any other reason, no novation shall occur, and the original effects of the credit and the age of the DEBTOR's obligation shall be preserved, with all constituted guarantees remaining in force. It is expressly agreed that if, due to the nature of the case, it were interpreted that a novation occurred, the mortgage guarantee shall remain fully in effect, as the CREDITOR expressly reserves such subsistence (Articles 803 and 804 of the Civil Code).

Sixteenth. Life Insurance. For the protection of the credit and its accessories, the CREDITOR may contract a life and disability insurance policy in its own favor, in the name of the DEBTOR, provided that the latter qualifies as an insurable person, with a duly authorized insurance company operating in the branch, for an insured amount equivalent to the balance of the debt derived from the credit. The CREDITOR shall be the beneficiary of said insurance, which shall be contracted in accordance with legal and practice norms; for this purpose, the DEBTOR authorizes the CREDITOR to perform the necessary acts and obliges itself to fulfill the personal acts required for such contracting and its renewals, which the DEBTOR commits to carry out thirty days prior to their expiration. The cost of the insurance shall be exclusively borne by the DEBTOR, who must pay the respective premiums together with the credit amortization installments. The rate to be applied shall be established on the DEBTOR balance at the start of each period, and shall be available to the DEBTOR at the CREDITOR's office, fifteen days prior to the start of the respective period. Failure to pay the premiums at the agreed time, or failure to meet the requirements demanded by the insurance company for the validity of the insurance, shall put the DEBTOR in default by operation of law, and the default clauses shall apply. The CREDITOR may contract unemployment insurance for the benefit of the debtor and at the debtor's expense.

Seventeenth. Expenses, commissions, etc. All current or future expenses, commissions, fees, or taxes that burden the operations carried out under this agreement, including the constitution and cancellation of the mortgage guarantee constituted by this act, shall be borne by the DEBTOR.

II. MORTGAGE CONTRACT.
As security for all and each of the obligations arising for the DEBTOR from the preceding credit contract and those specifically agreed upon as conditions of the following mortgage, and without prejudice to the responsibility assumed by the DEBTOR to respond with all its other present and future assets, the DEBTOR GRAVES with FIRST PRIORITY REAL RIGHT OF MORTGAGE in favor of the CREDITOR, the property whose characteristics will be described immediately, with all improvements it contains and those introduced in the future, leaving included the DEBTOR's obligation to keep active and under its title the telephone line No. ...... installed therein as well as any other telephone line that may be installed in the property. The property is located at (FULL DESCRIPTION OF THE PROPERTY) and its CADAstral NOMENCLATURE is as follows: ...... This mortgage is constituted for the total amount of ...... plus its legal and conventional interests and accessories, in accordance with what is provided in Article 3111 of the Civil Code, the DEBTOR requesting that it be registered as such. The CREDITOR's representatives, having been informed of the content of this mortgage in its favor, declare their conformity and acceptance on its behalf. The DEBTOR declares that it is in possession of the mortgaged property, that it has no liens, seizures, or restrictions on its ownership, that it recognizes no lease agreements, bailments, or any real rights, and that it owes no common expenses, tax levies, or services of any nature. The mortgage shall be governed by the following clauses and conditions.

II.1. While the mortgage obligation subsists, the DEBTOR undertakes to:
a) Maintain the encumbered property in perfect maintenance condition, except for deterioration caused by good use and the passage of time, abstaining from executing or allowing the execution of any act or contract that could harm it or diminish its value. The CREDITOR is authorized to visit or inspect the property at any time. b) Not encumber, lease, rent, assign, transfer, mortgage, or enter into contracts constituting antichresis, easement, use, bailment, habitation, "leasing", or other rights that imply restriction on the encumbered assets, nor allow a third party to exercise retention rights over the property, nor recognize any type of restriction on the property, nor perform any other act or deed of material or legal disposition not enumerated in this paragraph that has as its object or consequence the diminution of the mortgage guarantee instrumented herein, without the express consent of the CREDITOR. c) Keep up to date with the payment of taxes, rates, contributions, and services corresponding to the encumbered property, both present and those that may be established in the future, including water, gas, electricity, and telephone supplies, as well as other charges of any order or nature that burden or affect the property. d) Keep up to date with the payment of common expenses corresponding to the encumbered property. e) Supply the CREDITOR, upon its first request, the information and documentation that attest to the status of the property, the economic and financial situation of its family group, and the authenticity of the information supplied when managing the credit agreement. In particular, within 48 hours of the occurrence of the event, the DEBTOR must notify the CREDITOR of: a) any subsequent change in its labor or professional situation, in its bank debt and with suppliers, or in its income or cash flow that would reasonably affect the conditions or information about the DEBTOR that the CREDITOR took into account when granting the credit, b) any guarantee granted to third parties, or c) any destruction or deterioration of the property. The DEBTOR's infringement of any of the obligations undertaken in this clause shall place it in default under the conditions and with the consequences provided for in the case of default. f) Lift any seizure or other precautionary measure attached to the property at the first available procedural opportunity, not introduce alterations or deteriorations in the property that decrease or may decrease its guarantee value, solely at the CREDITOR's discretion, and not modify its destination as a family residence. The CREDITOR reserves the right, while this mortgage is in force, to demand that the DEBTOR produce the receipts attesting to the punctual payment of all the aforementioned obligations, in which case the DEBTOR must present them immediately to the CREDITOR. The CREDITOR may take charge of attending to said obligations when it deems convenient, in which case it may demand that the DEBTOR deposit or
reimburse the amounts in question plus a ...... percent of the charges to be paid as compensation for expenses.

II.2. Property Insurance. The DEBTOR undertakes to keep the property insured against fire and any other insurable risk that, in the judgment of the CREDITOR, is necessary or convenient to cover (including earthquake, if it is practice to cover such risk in the locality where the property is located) during the entire duration of the credit, until its total cancellation, with one or more first-line insurance companies to the satisfaction of the CREDITOR, designating the CREDITOR as the first beneficiary. Furthermore, the DEBTOR undertakes to renew, and if necessary, extend the risks covered by said insurance thirty days prior to their expiration, and must deliver to the CREDITOR, prior to the expiration of that term, proof of the renewals. The DEBTOR hereby authorizes the CREDITOR to directly contract said insurance and its renewals on behalf and order of the DEBTOR and to debit the expenses occasioned by its management as well as the amount of the premiums and relevant updates from any of the DEBTOR's accounts, to which effect the provisions of Clause Ninth shall apply. It is expressly established that in the event of non-payment of the corresponding premiums or the readjustment of the insured sums or of the sums debited for any other concept related to the insurance, the CREDITOR may, at its exclusive option: a) declare the agreed terms forfeited, without the need for prior interpellation of any nature, and demand immediate payment of this credit, being likewise authorized to execute this guarantee; b) pay the said premiums on behalf and order of the DEBTOR, and c) contract a new insurance in accordance with the previously expressed guidelines. In the two preceding scenarios, the CREDITOR shall be authorized to debit the sums paid from the DEBTOR's Savings Account and/or Checking Account –totally or partially– in its case, even if overdrawn. If the DEBTOR does not pay said sums within ten days of being requested, the CREDITOR may, without prejudice to the payment made or the new policy contracted, proceed according to the terms of subsection a) of the present point II.2, in which case the total debt shall be increased with the expenses the CREDITOR had to bear in the indicated concept of insurance, the payment of which is also guaranteed with this mortgage. Unless otherwise agreed, in the event of a loss, the indemnity shall be applied to repair or restore the property if such repair or restoration is, in the judgment of the CREDITOR, economically viable, or does not affect or diminish the value of the mortgage guarantee. Otherwise, said sum shall be applied first to the payment of the total outstanding balance of the credit, whether or not it has matured, and the remainder, if any, shall be delivered to the DEBTOR.

II.3. Execution Procedure. The DEBTOR's failure to comply with any of the obligations assumed under the terms of this mortgage loan contract shall enable the CREDITOR to immediately initiate the execution proceedings, with the creditor having the option, at its exclusive discretion, to choose the judicial execution route or the special execution provided for in Title V of Law 24.441, with the DEBTOR expressly consenting to this effect. The CREDITOR may request the judicial sale of the property for cash or in installments, as a whole or subdivided, and in the manner it deems most convenient, by the auctioneer it designates, serving as the basis for the sale the outstanding capital amount established, plus thirty percent (30%) of said amount, which the parties expressly fix as a special appraisal. In the event of failure of the first auction, a new auction without a base shall be held half an hour later, with the property being awarded to the highest bidder. It is expressly agreed that in the event that the CREDITOR or its assignees become purchasers at auction, they shall be exempt from paying a deposit and may offset the purchase price totally or partially with the debt, the latter being calculated on the date when the buyer must deposit the balance of the price. The costs and expenses originating from the DEBTOR's default are exclusively at its charge. The amounts owed by this concept shall accrue interest from the date of their disbursement at the rate prevailing at the Banco de la Nación Argentina for thirty-day discount operations, increased by fifty percent. These interests shall be capitalized every thirty calendar days. (PARAGRAPH TO BE INCLUDED FOR MORTGAGES IN ANY JURISDICTION EXCEPT THE FEDERAL CAPITAL AND THE REST OF THE JURISDICTIONS THAT HAVE ADAPTED THEIR PROCEDURAL CODES IN ACCORDANCE WITH LAW 24.441). Within 10 days of the ruling on the transfer and auction, the DEBTOR must vacate the property, authorizing the DEBTOR to request the eviction and removal of the property by public force at the DEBTOR's expense.

II.4. Assignment in favor of the National Mortgage Bank. It is expressly established that, in the event of the assignment of this mortgage credit contract in favor of the National Mortgage Bank, the latter may opt to resort to the extrajudicial execution procedure contemplated in its Organic Charter (Law 22.232 and its amendments), as well as exercise all the prerogatives and powers granted to it by said legal body.

II.5. Re-registration of the mortgage. The DEBTOR authorizes the CREDITOR to re-register this mortgage as many times as necessary, while the capital and interest and other accessories of the credit have not been fully cancelled. The expenses and fees corresponding to such re-registration shall be borne by the DEBTOR, and the CREDITOR may demand that the DEBTOR deposit the sums to be paid.

II.6. Mortgage Bonds. The DEBTOR undertakes to execute mortgage bonds under the terms of Title III of Law 24.441, if the CREDITOR so requests. To this end, the CREDITOR may at any time summon the DEBTOR to, within a period not exceeding five business days of receiving the notice, appear to sign the mortgage bonds that instrument the outstanding balance at that time, whether in certificate or book form, and to sign the public deed modifying this one, and any other document that is necessary to satisfactorily conclude, in the judgment of the CREDITOR, the issuance of mortgage bonds, before the notary public designated by the CREDITOR, with all expenses arising from such acts being borne by the DEBTOR, since –this is an essential condition for the granting of the credit. The DEBTOR, and in its case the mortgagor if it is a person distinct from the DEBTOR, accept the reservation formulated by the CREDITOR under the terms of Article 803 of the Civil Code, such that in the event that mortgage bonds are issued, the mortgage shall subsist in all its terms, to guarantee the obligations derived from the mortgage bonds. The mortgagor, in its case, expressly undertakes to guarantee, at the request of the CREDITOR, the mortgage bonds that are issued in accordance with what is agreed in this clause. In the event of default by the DEBTOR or the mortgagor of the obligations and commitments assumed in this Clause, the CREDITOR may declare the forfeiture of the terms and request the total payment of the debt, executing the mortgage that guarantees the credit.

II.7. Expenses and Taxes.

II.8. Special irrevocable power of attorney. The DEBTOR confers upon the CREDITOR an IRREVOCABLE SPECIAL POWER OF ATTORNEY, under the terms of Articles 1977, 1980, and concordant articles of the Civil Code, for the duration of the credit or until the total cancellation of the obligations derived from it, whichever is longer, to perform the following acts on its behalf and representation: (a) re-register this mortgage as many times as necessary, and (b) sign Mortgage Bonds under the terms provided for in Clause II.6, whether in certificate or book form, and sign the public deed modifying this mortgage and any other document that may be necessary to satisfactorily conclude, in the judgment of the CREDITOR, the issuance of Mortgage Bonds, before the notary public designated by the CREDITOR.

II.9. Expropriation. In the event of total or partial expropriation of the property mortgaged herein by any national, provincial, or municipal authority in accordance with applicable laws and regulations, the indemnity due to the DEBTOR is hereby irrevocably assigned in favor of the CREDITOR, granting hereby the DEBTOR in favor of the CREDITOR an irrevocable power of attorney under the terms of Articles 1977 and 1980, which shall subsist while the DEBTOR has not cancelled all its obligations under this Contract, to notify the relevant authority of said assignment. In the event of total expropriation or partial expropriation whose result is a decrease in the value of the property to such an extent that, solely at the discretion of the CREDITOR, it no longer satisfactorily covers the DEBTOR's obligations under the present Contract, the indemnity shall be immediately applied by the CREDITOR first to the payment of the total outstanding capital balance under the credit instrumented herein (whether or not it has matured) and any other sum owed on the date of payment of said indemnity for any other concept under this and the remainder, if any, shall be delivered to the DEBTOR. In any other case of partial expropriation, the indemnity shall be held by the CREDITOR as security for the Debt's obligations under this Contract and shall be applied by the CREDITOR to the payment of the sums owed under this upon their maturity in accordance with what is provided therein. It is expressly established that the DEBTOR may only accept the indemnity offered to be paid by the authority ordering the expropriation with the prior consent of the CREDITOR, which may not be unreasonably denied insofar as the amount of the indemnity is sufficient to cover the payment of the total outstanding capital balance under the credit instrumented herein (whether or not it has matured) and any other sum owed under this Contract, or if it is a case of partial expropriation whose result is not a decrease in the value of the property to such an extent that, solely at the discretion of the CREDITOR, it no longer satisfactorily covers the DEBTOR's obligations under the present Contract.

II.10. RIGHTS OF THE CREDITOR. In the event that at any time during the term of the credit a legal action is initiated as a result of which the CREDITOR's rights over the property by virtue of the mortgage guarantee constituted herein could be significantly affected, the CREDITOR shall have the right, but not be obligated, to take the actions necessary to protect the value of the property and its rights over it. Such actions may include, among others, the payment of any credit that has priority over this credit, legal filings, payment of legal fees, and the carrying out of any type of repairs to the property. For the purpose of enabling the CREDITOR to carry out the aforementioned actions, the DEBTOR hereby grants the CREDITOR an IRREVOCABLE SPECIAL POWER OF ATTORNEY under the terms of Articles 1977 and 1980 of the Civil Code, which shall remain in effect until the DEBTOR cancels all of its obligations under the credit instrumented herein. The amounts disbursed by the CREDITOR as a result of the provisions of this clause shall be immediately reimbursed by the DEBTOR to the CREDITOR at the sole request of the latter, and meanwhile shall accrue interest from the date of disbursement at the compensatory and, where applicable, punitive rates applicable to this credit in accordance with Clauses Fifth and Twelfth, respectively.

(INCLUDE IF THE MORTGAGOR IS MARRIED AND THE PROPERTY IS NOT SEPARATE PROPERTY) CONSENT. PRESENT at this act from its beginning, NAME AND DATA OF THE SPOUSE, married in …………. Marriage to the DEBTOR, of age, competent, and within my knowledge, of which I give testimony, and states: That the conditions of the mortgage credit formalized through the present by their spouse have been explained to them, which they expressly accept, and that THEY GIVE THE CONSENT required by Article 1277 of the Civil Code for the mortgage constituted by their spouse under the terms stated above and for its re-registration if applicable.

III. Deposit of the Title of Ownership. The title of ownership of the encumbered property and that corresponding to the mortgage guarantee shall be deposited with the CREDITOR, its assignees, and/or whoever they indicate. This deposit shall remain in effect until the extinction of the obligation secured by the mortgage.

IV. Jurisdiction and Domiciles. For all purposes of the present credit contract with mortgage guarantee, the parties submit to the jurisdiction of the Ordinary Courts of ……………… or of the Federal Capital, at the option of the CREDITOR, and establish domiciles: the CREDITOR in ……. ……………… and the DEBTOR in ……………… Any new domicile of the DEBTOR must be located in the same locality, and its modification shall only be enforceable against the other party if there is a reliable notification five business days in advance. All judicial or extrajudicial notifications served there shall be valid.

NOTARIAL ATTESTATIONS ……………. READ AND RATIFIED ………………

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