Circular Passive Operations OPASI 1 - 56. Chapter I - Deposit Guarantee (Regulation of Art. 56 of Law No. 21.526, modified by Law No. 22.051)

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 614 29/03/85
TO FINANCIAL ENTITIES:
Ref.: Circular PASSIVE OPERATIONS OPASI - 1 -
56. Chapter I - Guarantee of deposits (Regulation of Art. 56 of Law No. 21.526,
modified by Law No. 22.051)
We address you to inform you that this Institution adopted the following resolution:

“1. Replace the provisions of points 7.1.3., and 7.1.4. and 7.7. of Chapter I of Circular OPASI - 1 (Communication “A” 59), with the modifications made known by Circular OPASI - 1 - 5 (Communication “A” 145), with the following:

“7.1.3. General coverage.
The guarantee established for the return of capital and an equal proportion of the adjustments and accrued interest corresponding, shall be governed by the following rules:

7.1.3.1. Fixed-term deposits - except for “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina”- and in savings accounts, and separately, on checking accounts:

7.1.3.1.1. 99% up to the sum of $a 7,000,000 of invested capital

7.1.3.1.2. 1% on the excess of $a 7,000,000 of invested capital.

7.1.3.2. Non-transferable fixed-term deposits at an interest rate not regulated
by the Central Bank of the Republic Argentina: 1% on the invested capital.

7.1.3.3. The amounts stated in 7.1.3.1.1. and 7.1.3.1.2. shall be updated in accordance with
what is provided in point 7.1.6.

7.1.4. Coverage regarding natural persons.

7.1.4.1. When it concerns natural persons, the guarantee covers deposits made individually or collectively, plus their corresponding adjustments and accrued interest, as provided in point 7.1.4.2.

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To determine the coverage, the sums resulting from applying the provisions of said point 7.1.4.2. shall be considered per person for the total of fixed-term deposits - except for “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina”- and in savings accounts made in each entity. For the purposes of the guarantee, accounts in the name of two or more persons shall be understood as having their holders as creditors in equal shares of the total deposit, its adjustments and interest. In the case of checking accounts, the guarantee as provided in point
7.1.4.2. shall be applied to the total balance in favor of its holders,
even if the account is opened in the name or order of more than one person.

7.1.4.2. The guarantee established for the return of capital and an equal proportion of its corresponding adjustments and accrued interest, shall be governed regarding natural persons according to the following rules:

7.1.4.2.1. Fixed-term deposits - except for “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina”- and in savings accounts and, separately, on checking accounts:

7.1.4.2.1.1. 100% up to the sum of $a 7,000,000 of invested capital.

7.1.4.2.1.2. 1% on the excess of $a 7,000,000 of invested capital.

7.1.4.2.2. Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina:

7.1.4.2.2.1. 100% up to the sum of $a 50,000 of invested capital.

7.1.4.2.2.2. 1% on the excess of $a 50,000 of invested capital.

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B.C.R.A. COMMUNICATION “A” 614 29/03/85

7.1.4.2.3. The amounts stated in 7.1.4.2.1. and
7.1.4.2.2. shall be updated in accordance with
point 7.1.6.

7.7. For the effective implementation of the deposit guarantee regime in Argentine pesos, constituted up to 31.3.85, the rules that were in force at
the date of their constitution shall apply.”

2. Incorporate as points 7.1.5., 7.1.6. and 7.1.7. of the regulation the following provisions:

“7.1.5. Sworn declaration.

7.1.5.1. To make the guarantee effective in the event of liquidation of a financial entity incorporated into the regime, the Central Bank of the Republic Argentina will require depositors in savings accounts and fixed-term deposits to present a sworn declaration stating that they are holders of deposits of that class in the entity, for the purpose of establishing the amounts to be returned in accordance with what arises from applying the provisions contained in points 7.1.3. and 7.1.4.2., as applicable.

7.1.5.2. When the amount of the invested balances per holder exceeds $a
7,000,000 or the sum resulting from its update (point 7.1.6.), or in any other circumstance in which the Central Bank of the Republic Argentina so determines for the purposes of the guarantee, the sworn declaration referred to in 7.1.5.1. shall be accompanied by the necessary documentation to prove the genuineness of the deposit operation.

7.1.6. Update.
The amounts stated in points 7.1.3. and 7.1.4.2. shall be updated monthly in accordance with the variation that occurs in the combined price index, taking as a base 31.3.85 (series started on 15.10.84). The Central Bank of the Republic Argentina will make known the updated amounts, which shall be rounded to the nearest ten thousand, suppressing remainders less than five thousand Argentine pesos and increasing shortages to complete the next ten thousand for those cases with remainders of five thousand Argentine pesos or higher.

7.1.7. Effectiveness of the guarantee
For such purposes, the following guidelines shall be applied:

-4- a) The Central Bank of the Republic Argentina will make known, together with the update of the guarantee referred to in point 7.1.6., a table containing the coefficients according to which the capitals of fixed-term deposits must be adjusted, based on the month in which the investment was made. These coefficients will be prepared applying the same criterion as that contained in the cited point 7.1.6. b) The amount of the invested capital, thus updated, is the one that will be taken into account to determine the coverage provided in points 7.1.3.1. and 7.1.4.2.1., for which effect the adjusted amounts according to the described procedure of the various fixed-term investments - except “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina”- that correspond to the same holder, shall be added to them, where applicable, the pertinent balances for savings deposits in force on the date of the resolution that disposes of the liquidation of the entity. Identical criterion, but separately, shall be applied with respect to “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina” to establish the coverage provided in points 7.1.3.2. and 7.1.4.2.2. c) The sums determined on the basis of the procedure indicated in b) shall be confronted with the amounts referred to in points 7.1.3.1. and 7.1.4.2.1. and 7.1.4.2.2., as applicable, updated in the manner provided in point 7.1.6. d) These confrontations will determine the adjusted value of the sums invested by the depositor and the coverages applicable to them. e) In the case of checking accounts, the balances in force on the date of the resolution that disposes of the liquidation of the entity shall be taken into consideration.”

3. Provide that on the occasion of the first deposit or withdrawal operation - for cases of fixed-term investments and in savings accounts - that clients carry out from the validity of this measure, the entities must notify them under signature about the conditions established by this resolution for the applicability of the deposit guarantee, delivering a duplicate of the approved rules. Similar procedure will be adopted with respect to checking account holders on the first occasion of delivering checkbooks.
   The pertinent records must be kept by the entities duly ordered.

4. Replace the third paragraph of point 7.3. Publicity, of Chapter I of Circular OPASI - 1 (Communication “A” 59), with the following:

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B.C.R.A. COMMUNICATION “A” 614 29/03/85

“These legends, the percentages and amounts in force at each moment regarding deposit guarantees (points 7.1.3.1., 7.1.3.2., 7.1.4.2.1. and 7.1.4.2.2.) and the coefficients referred to in point 7.1.7., must be stated on the boards where the rates and rules applicable to deposits are advertised, being the responsibility of the financial entities to arrange the necessary means so that this form of publicity becomes perfectly visible, by its size and location, to the public that attends the premises. Likewise, the legends whose transcription was stated above, must be explained in all other media in which interest rates and rules applicable to said deposits are advertised. Furthermore, in the instruments corresponding to “Non-transferable fixed-term deposits at an interest rate not regulated by the Central Bank of the Republic Argentina” it must be highlighted in printed characters and in a visible manner - occupying no less than 10% of the surface of the front of the document - the following expression: “This deposit is guaranteed by the Central Bank of the Republic Argentina up to the sum of $a …… plus the interest corresponding to said amount, when its holder is a natural person. As additional coverage, only 1% of the excess of that amount is guaranteed. In the case of legal entities, the guarantee only reaches 1% of the invested capital plus the corresponding interest”.

5. These measures will be valid from 1.4.85 for balances in savings accounts and checking accounts, and fixed-term investments and special savings investments made from that date.
   Deposits constituted in special savings accounts on 31.3.85 will maintain the guarantee according to the replaced regime until the period of thirty days is fulfilled during which, according to the rules, withdrawals cannot be made.”

We greet you very respectfully.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Alfredo A. Besio
Deputy Department Manager
Manager of Standards for
Financial Entities a/c
Néstor J. Taró
Departmental Manager c/f Deputy General Manager