Norm on the Update of Social Capital of Administrating Societies of Titularization Funds

Resolution CDMF-VIII-5-25
Dated March 12, 2025

NORM ON THE UPDATE OF SOCIAL CAPITAL OF ADMINISTRATING SOCIETIES OF TITULARIZATION FUNDS

The Monetary and Financial Board,

CONSIDERING

I

That Article 156 of Law No. 1232 "Law on the Administration of the Monetary and Financial System," published in La Gaceta, Official Gazette No. 241, of December 30, 2024 (hereinafter Law No. 1232), establishes that "...all those faculties, competencies, powers, attributions, and duties established in other laws, prior to the effectiveness of this Law, attributed to the Board of Directors of the Central Bank and to the Board of Directors of the Superintendence of Banks..." are transferred to the Monetary and Financial Board.

II

That Article 120 of Law No. 587, "Capital Markets Law," contained in Law No. 1175, "Law of the Nicaraguan Legal Digest on Banking and Finance Matters," published in La Gaceta, Official Gazette No. 153, of August 20, 2024, establishes that the minimum subscribed and paid-up capital required for the creation of titularization fund administrator societies shall be one million six hundred thousand córdobas (C$1,600,000.00). Likewise, said article empowers the Board of Directors to adjust the minimum social capital of these societies every two years, in accordance with the variation of the official exchange rate of the national currency.

III

That through the Norm on the Update of Social Capital of Administrating Societies of Titularization Funds, contained in Resolution No. CD-SIBOIF-1365-3-MAR7-2023, dated March 7, 2023, published in La Gaceta, Official Gazette No. 53, of March 22, 2023, the minimum required social capital for titularization fund administrator societies was updated to three million two hundred thirty-five thousand five hundred córdobas (C$3,235,500.00).

IV

That in accordance with the considerations stated above and based on Article 6, letter b) of the Capital Markets Law; and Article 17, subsection A), numerals 1) and 3) of said Law No. 1232.

In exercise of its faculties,

HAS ISSUED

The following:

NORM ON THE UPDATE OF SOCIAL CAPITAL OF ADMINISTRATING SOCIETIES OF TITULARIZATION FUNDS

Article 1. Update of social capital.- The minimum required social capital for titularization fund administrator societies is updated to three million two hundred sixty-two thousand córdobas (C$3,262,000.00).

Article 2. Deadline.- In the case of titularization fund administrator societies that are authorized to be constituted and operate in the country after the entry into force of this norm, the compliance with the updated social capital must be carried out at the time of their constitution.

Article 3. Repeal.- The Norm on the Update of Social Capital of Administrating Societies of Titularization Funds, contained in Resolution No. CD-SIBOIF-1365-3-MAR7-2023, dated March 7, 2023, published in La Gaceta, Official Gazette No. 53, of March 22, 2023, is repealed.

Article 4. Effectiveness.- This norm shall enter into force from its publication in La Gaceta, Official Gazette.

(f) legible, Ovidio Reyes R. President of the Board of Directors; (f) Illegible, Luis Ángel Montenegro Espinoza, Vice President of the Board of Directors; (f) Illegible, Bruno Gallardo, Minister of Finance, Proprietary Member; (f) illegible, Roberto Rivas, Non-executive Proprietary Member; (f) Illegible, Hugo Ortega, Non-executive Proprietary Member. The undersigned Ruth Elizabeth Rojas Mercado, Secretary of the Monetary and Financial Board of Directors, certifies that it conforms to its original, with which it was duly compared. (f) Illegible, RUTH ELIZABETH ROJAS MERCADO, Secretary of the Monetary and Financial Board of Directors.