GENERAL PROVISIONS APPLICABLE TO MULTIPLE BANKING INSTITUTIONS IN THE EARLY TERMINATION OF MORTGAGE PROGRAMS

Published in the Official Gazette of the Federation on July 26, 2010.

The National Banking and Securities Commission, based on the provisions of Articles 65, 97, 99, 101, 101 Bis, and 102 of the Credit Institutions Law and Articles 4 (fractions I, II, III, IV, V, VI, and XXXVI), 6, 16 (fraction I), and 19 of the National Banking and Securities Commission Law,

CONSIDERING

That it is pertinent to inform credit institutions of the accounting registration rules and the information and audit requirements necessary for the operation of the "Agreement to Extinguish in Advance the Support Programs for Debtors" (Agreement) between the Federal Government, through the Ministry of Finance and Public Credit, and certain multiple banking institutions, with the participation of the Mexican Bank Association, A.C., and

That it is pertinent to issue special rules that contribute to the adequate process of restructuring credits eligible to receive the benefits of the Mortgage Programs and the Agreement, it has resolved to issue the following:

GENERAL PROVISIONS APPLICABLE TO MULTIPLE BANKING INSTITUTIONS IN THE EARLY TERMINATION OF MORTGAGE PROGRAMS

INDEX

CHAPTER ONE
Definitions

CHAPTER TWO
On the integration of credit files

CHAPTER THREE
On financial information and its disclosure

First Section
On the norms for the accounting recognition of the Early Termination Scheme in Institutions and Trusts

Second Section
On the audit norms that must be used for the preparation of the Correct Application Report and Annual Reports referred to in the Agreement

CHAPTER FOUR
On the submission of information

CHAPTER FIVE
Final Provisions

TRANSITORY CLAUSES

List of Annexes

• Annex A Documentation and information that must be integrated into the restructuring files of housing credits.
• Annex B Norms for the accounting recognition of the Early Termination Scheme in multiple banking institutions and in Trusts.
• Annex C Information on credits eligible to participate in the Early Termination Scheme as of June 30, 2010.
• Annex D Information for the monitoring of credits eligible to participate in the Early Termination Scheme.
• Annex E Information as of December 31, 2010 of credits eligible to participate in the Early Termination Scheme.
• Annex F Information for the monitoring of credits pending proof of Payment Compliance.
• Annex G Information used to determine which credits can be incorporated into the Early Termination Scheme.

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CHAPTER ONE

Definitions

Article 1. For the purposes of these provisions, the following terms shall be understood, in singular or plural:

I. Single Circular of Banks: The "General provisions applicable to credit institutions" published in the Official Gazette of the Federation on December 2, 2005, and its modifications.

II. Independent External Auditor: The public accountant or licensed public accountant who meets, insofar as applicable, the characteristics and requirements contained in Chapter III of Title Three of the Single Circular of Banks.

III. Commission: The National Banking and Securities Commission.

IV. Agreement: The agreement to extinguish in advance the support programs for debtors of housing credits, cited therein, celebrated on July 15, 2010, by the Federal Government, through the Ministry of Finance and Public Credit, and the multiple banking institutions, with the participation of the Mexican Bank Association A.C.

V. Early Termination Scheme: The scheme contained in the Agreement.

VI. Cut-off Date: The date referred to in the second paragraph of Clause FIRST of the Agreement.

VII. Trusts: The trusts constituted in accordance with the UDIS Programs.

VIII. Correct Application Report: The audit report on the correct application and execution of the Agreement referred to in Clause SECOND, item 2, of the Agreement.

IX. Annual Report: The audit report referred to in Clause SECOND, item 6, of the Agreement.

X. Institution: The multiple banking institutions referred to in Article 2 of the Credit Institutions Law that sign the Agreement.

XI. UDIS Programs: The following programs: (i) Support Program for Housing Credit Debtors, and (ii) Support Program for the Construction of Housing in the Construction Process in its stage of individualized credits, contained in Circulars 1285 and 1430 issued by the Commission on January 17, 1996, and March 16, 1999, respectively.

XII. Discount Program: The Agreement on Benefits to Housing Credit Debtors contained in Circular 1430 issued by the Commission on March 16, 1999.

XIII. Mortgage Programs: The UDIS Programs and the Discount Program, taken together.

XIV. SITI: The Interinstitutional Information Transfer System, which is owned by the Commission and is the official means for sending and receiving information referred to in these provisions.

XV. UDIS: The units of account called "Investment Units" established in the "Decree establishing the obligations that may be denominated in Investment Units and reforming and adding various provisions of the Federal Tax Code and the Income Tax Law" published in the Official Gazette of the Federation on April 1, 1995, as it may be modified or added from time to time.

XVI. Payment Compliance: The evidence of payment compliance without delay by the respective debtors, for the total amount due of principal and interest and other accessories, for at least three consecutive amortizations, in accordance with the payment schemes established in the contracts or, where applicable, in the restructuring scheme under the Agreement, referred to in the third paragraph of Clause FIRST of the Agreement.

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CHAPTER TWO

On the integration of credit files

Article 2. Restructurings carried out in accordance with the Agreement, as an exception to what is provided in Article 24 of the Single Circular of Banks, will not have to go through the various stages of the credit process from origination.

Likewise, in order to comply with what is provided in fraction II of Article 46 of the Single Circular of Banks, it will be sufficient for the Institutions to adhere to what is provided in Annex A of these provisions.

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CHAPTER THREE

On financial information and its disclosure

First Section

On the norms for the accounting recognition of the Early Termination Scheme in Institutions and Trusts

Article 3. Institutions shall adhere to the norms for the accounting recognition of the Early Termination Scheme attached to these provisions as Annex B, which are divided into the sections indicated below:

I. Accounting recognition in Institutions of the Early Termination Scheme.
II. Accounting recognition in Trusts of the Early Termination Scheme.

Second Section

On the audit norms that must be used for the preparation of the Correct Application Report and Annual Reports referred to in the Agreement

Article 4. The Correct Application Report and the Annual Reports referred to in the Agreement must be prepared by the Independent External Auditor who, in the corresponding year, carries out the audit of the financial statements of the respective Institution, observing what is established in Bulletin 4040 "Other Auditor Opinions" issued by the Committee on Norms and Audit Procedures (CONPA) of the Mexican Institute of Public Accountants, A.C., which is in force on the date of signing the Agreement, even if such Bulletin were repealed by CONPA itself.

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CHAPTER FOUR

On the submission of information

Article 5. Institutions must deliver to the Commission, with the indicated periodicity, the information indicated below:

I. By July 28, 2010 at the latest, the information for each of the credits eligible to participate in the Early Termination Scheme as of the close of June 2010, classifying them by Trust or, where applicable, indicating if they are in national currency, as well as for credits participating in the Discount Program, indicating the balance the credit had on November 30, 1998, the amount of the discount that had been granted prior to the subscription of the Discount Program valued at November 30, 1998, and the percentage of discount corresponding to it in accordance with what is provided in the Discount Program, in the form as a model attached to these provisions as Annex C.

II. Only for each of the months comprised in the period from June to December 2010, and within the first ten banking business days of the month immediately following that to which the information refers, the information regarding the monitoring of the credit portfolio eligible to participate in the Early Termination Scheme referred to in the Agreement, for each of the credits, specifying the credit balance at the close of the month, the amount of payments, the calculation of the benefit determined based on what is established in the Discount Program, the amount of restructurings carried out under the Agreement, the calculation of the benefit associated with said restructurings, as well as the amount of payments and decreases that do not receive benefits in terms of the Discount Program or the Agreement, in the form as a model attached to these provisions as Annex D.

The information corresponding to the month of June 2010 must be delivered by July 28, 2010 at the latest.

III. By January 21, 2011 at the latest, the information with the characteristics as of December 31, 2010 of each of the credits eligible to participate in the Early Termination Scheme, specifying for each of them the situation they hold in relation to what is established in the Agreement, indicating for credits that were restructured under it, their balance in accordance with the respective restructuring agreement, and for credits that were not restructured and are active on the Cut-off Date, their balance on said date, indicating in each case the benefits associated in accordance with the Agreement, if applicable, in the form as a model attached to these provisions as Annex E.

IV. For each of the months comprised in the period from January to March 2011, and within the first ten banking business days of the month immediately following that to which the information refers, the information regarding credits that have pending proof of Payment Compliance on the Cut-off Date, including the balances and payments of credits that have been restructured under the Agreement by the Cut-off Date at the latest and are overdue on said date, as well as the information regarding the balances and payments of credits that, to be active on the Cut-off Date, had received from the Institutions, in a straightforward manner, the deferral of up to a maximum of nine overdue monthly installments or had been granted in the same manner a discount, reduction, or bonus, regardless of its amount, in the form as a model attached to these provisions as Annex F.

V. By April 14, 2011 at the latest, the information with the characteristics of each of the credits eligible to participate in the Early Termination Scheme, specifying for each of them the situation they hold in relation to what is established in the Agreement on the Cut-off Date, or, where applicable, as of March 31, 2011, indicating for credits that were restructured under it, their balance in accordance with the respective restructuring agreement, and for credits that were not restructured and are active on the Cut-off Date, their balance on said date, indicating for each case the benefits associated in accordance with the Agreement if applicable, in the form as a model attached to these provisions as Annex G.

VI. Institutions will continue to deliver monthly the information required in item 7 of Circular 1430 of March 16, 1999, in the form as models contained in Annexes 1, 2, 4, 5, 6, and 7 of Circular 1442 issued by the Commission on July 29, 1999, and Annex 3 of Circular 1454 issued by the Commission on December 14, 1999, as well as the information required in Circular 1483 issued by the Commission on October 6, 2000, in the form as models contained in Annexes 5 and 6 of said Circular 1483, up to the one corresponding to December 2010.

Article 6. Institutions must send to the Commission the information mentioned in Article 5 of these provisions, as applicable, through electronic transmission via SITI in accordance with the fourth paragraph of this article.

The information will be received assuming it meets all required characteristics, with SITI generating an electronic receipt.

Once the information is received, it will be reviewed, and if it does not meet the required quality and characteristics or is presented incomplete, the obligation to present it will not be considered fulfilled. Therefore, Institutions must, by the last banking business day of the month in which said information should have been delivered, make the corresponding corrections. Once the month corresponding to the delivery has concluded, if the information continues to not meet the required quality and characteristics, the obligation to present it will be considered unfulfilled, and consequently, action will be taken in accordance with what is provided in Article 8 of these provisions.

In the event that the person responsible for providing the information referred to in this article is different from the person responsible for providing the information referred to in Circulars 1430, 1442, 1454, or 1483 issued by the Commission on March 16, 1999, July 29, 1999, December 14, 1999, and October 6, 2000, respectively, Institutions must notify the Commission in writing addressed to the Deputy General Directorate of Design and Information Reception, the name of the person responsible for providing the information referred to in these provisions, using the SITI User Registration, Update, or Cancellation Request format, which is found in the SITI ACCESS REQUEST section of the SITI user help page, on the Internet site:

"http://www.cnbv.gob.mx/ad/siti". This format must be sent digitally to the email address: "cesiti@cnbv.gob.mx," signed by an official who is within the two hierarchies below the General Director of the Institution and who is in charge of the responsibility of handling the information.

Without prejudice to the foregoing, Institutions may designate more than one person as responsible, depending on the type of information in question.

The substitution of any of the responsible officials must be notified to the Commission itself in accordance with the fourth paragraph of this article, within three banking business days following the substitution.

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CHAPTER FIVE

Final Provisions

Article 7. Institutions, regarding credits that are not the subject of the Early Termination Scheme, must assume the obligations incumbent on the Federal Government referred to in the Circulars issued by the Commission applicable to the Mortgage Programs in accordance with what is provided in Clause THIRTEENTH of the Agreement.

Article 8. In the event of non-compliance with these provisions, Institutions will be subject to what is agreed in the Agreement.

TRANSITORY CLAUSES

FIRST. These provisions will enter into force the day following their publication in the Official Gazette of the Federation.

SECOND. Circulars 1310, 1313, 1340, 1358, 1359, 1367, 1377, 1390, 1402, 1442, 1454, and 1483, issued by the Commission on May 16, 1996, May 31, 1996, December 23, 1996, April 22, 1997, April 30, 1997, July 22, 1997, September 30, 1997, December 23, 1997, April 1, 1998, July 29, 1999, December 14, 1999, and October 6, 2000, respectively, will be repealed on January 3, 2011.

Likewise, Circulars 1269, 1300, 1302, 1327, and 1446, issued by the Commission on November 6, 1995, March 28, 1996, April 30, 1996, September 30, 1996, and September 30, 1999, respectively, will be repealed on March 1, 2011.