Minimum Guidelines for the Active Factoring Operation of Banks, Cooperative Banks, and Savings and Credit Societies

CD - 13/2017

MINIMUM GUIDELINES FOR THE ACTIVE FACTORING OPERATION OF BANKS, COOPERATIVE BANKS, AND SAVINGS AND CREDIT SOCIETIES

Approval:
27/03/2017

Validity: 27/03/2017

Alameda Juan Pablo II y 17 Avenida Norte, San Salvador, El Salvador, C. A. Apartado Postal 106 Tel: (503) 2281- 8402 y 8403 - Fax: (503) 2281- 8401 *http/www.bcr.gob.sv

MINIMUM GUIDELINES FOR THE ACTIVE FACTORING OPERATION OF BANKS, COOPERATIVE BANKS, AND SAVINGS AND CREDIT SOCIETIES (1)

1. Banks, cooperative banks, and savings and credit societies shall submit to the Central Reserve Bank of El Salvador the documentation describing the active factoring operation, which will be analyzed based on the “Instruction for the Approval of New Financial Products and Services”, the Banking Law, and the Law on Cooperative Banks and Savings and Credit Societies. (1)

2. Banks, cooperative banks, and savings and credit societies shall establish the minimum requirements for the documents assigned. (1)

3. Banks, cooperative banks, and savings and credit societies shall negotiate with the client assigning the documents a discount rate for the acquisition thereof. (1)

4. Banks, cooperative banks, and savings and credit societies shall negotiate a term for the collection of the documents. (1)

5. Banks, cooperative banks, and savings and credit societies shall establish and explain to the client the process to be followed for the disbursement of funds for the factoring operation. (1)

6. Banks, cooperative banks, and savings and credit societies must explain to clients the commissions, charges, rates, or other costs related to the factoring operation. (1)

7. Banks, cooperative banks, and savings and credit societies shall follow the process established in Art. 22 of the Consumer Protection Law for the deposit of the contract model. (1)

8. Banks, cooperative banks, and savings and credit societies shall establish mitigation measures against the risks implied by their factoring operation. (1)

9. Banks, cooperative banks, and savings and credit societies must comply with the requirements for the notification of the assignment of the obligation based on the rules established in the Civil Code, articles 672, 1529, 1692, 1693, and 1695. (1)

CD - 13/2017

MINIMUM GUIDELINES FOR THE ACTIVE FACTORING OPERATION OF BANKS, COOPERATIVE BANKS, AND SAVINGS AND CREDIT SOCIETIES

Approval:
27/03/2017

Validity: 27/03/2017

Alameda Juan Pablo II y 17 Avenida Norte, San Salvador, El Salvador, C. A. Apartado Postal 106 Tel: (503) 2281- 8402 y 8403 - Fax: (503) 2281- 8401 *http/www.bcr.gob.sv

10. Banks, cooperative banks, and savings and credit societies must include in their policies for attention to financial service users the mechanisms for inquiries or claims related to factoring. (1)

11. Repealed (2)

(Approved by the Board of Directors of the Central Reserve Bank of El Salvador in Session No. 13/2017, on March 27, 2017)

(1) Modification approved by the Board of Directors of the Central Reserve Bank of El Salvador in Session No. 21/2017, on June 5, 2017, with effect from June 5, 2017.

(2) Modification approved by the Board of Directors of the Central Reserve Bank of El Salvador in Session No. 32/2020, on October 13, 2020, with effect from October 15, 2020.