Norm on Publication of Names of Clients with Overdue Credits, Under Judicial Collection, or Who Issued Bounced Checks

Resolution No. CD-SIBOIF-441-1-SEPT5-2006 of date September 5, 2006

NORM ON PUBLICATION OF NAMES OF CLIENTS WITH OVERDUE CREDITS, UNDER JUDICIAL COLLECTION, OR WHO ISSUED BOUNCED CHECKS

The Board of Directors of the Superintendency of Banks and Other Financial Institutions,

CONSIDERS

I
That in accordance with what is established in article 113, numeral 3, of Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, hereinafter "General Law of Banks", it is necessary to regulate the publications carried out by banks of the names of clients with overdue credits or who are under judicial collection, as well as those clients who issue bounced checks.

II
That based on the powers conferred by article 3, numeral 13 and article 10 of Law No. 316, Law of the Superintendency of Banks and Other Financial Institutions, reformed by Law No. 552, Law of Reforms to Law No. 316, Law of the Superintendency of Banks and Other Financial Institutions; and the last paragraph of article 53 of Law No. 561, General Law of Banks;

In exercise of its powers,

HAS ISSUED,
The following:

NORM ON PUBLICATION OF NAMES OF CLIENTS WITH OVERDUE CREDITS, UNDER JUDICIAL COLLECTION, OR WHO ISSUED BOUNCED CHECKS

Resolution No. CD-SIBOIF-441-1-SEPT5-2006

Chapter I
OBJECT AND SCOPE

Art. 1 Object
This norm has as its object to establish the procedure for the publications carried out by supervised financial institutions, in a medium of national circulation, of the names of clients who have overdue credits or who are under judicial collection. Likewise, the publications carried out by banks of account holders who issue bounced checks.

Art. 2 Scope
The provisions of this norm are applicable to banks and non-bank financial institutions, hereinafter "financial institutions", subject to the supervision of the Superintendency, insofar as applicable.

Chapter II
OBLIGATION TO INFORM

Art. 3 Obligation to Inform the Public
Every financial institution shall inform the public of the full first and last names and/or denomination or corporate name, of natural or legal persons who:

a) Have credits or debtor balances that are in the following situations:

1. Overdue credits for more than ninety (90) days and that present
   balances of principal, including overdrafts, and the corresponding interests, equal to or greater than five thousand dollars (US$5,000.00) of the United States of America or the equivalent in national currency.

In the case that the debtor has several credits or debtor balances overdue for more than ninety (90) days for amounts less than the amount indicated above, but when added together are equal to or greater than the same, they are likewise subject to the publication requirement.

In the case of personal loans and microcredits, the amount indicated above may be lower at the discretion of the corresponding financial institution. Financial institutions shall inform the public of the full first and last names and/or denomination or corporate name, of the natural or legal persons who are guarantors of overdue credits, only when they have been notified of the default status of the corresponding debtor.

2. Credits subject to Judicial Collection and that present balances of
   principal, including overdrafts, and the corresponding interest, equal to or greater than five thousand dollars (US$5,000.00) of the United States of America or the equivalent in national currency.

b) Issue bounced checks, regardless of the amount, in favor of third parties, without prejudice to what is established in the Law on the matter, and when the beneficiary of said instrument requests its publication. This provision is applicable only to banks.

Art. 4 Publication and Submission of Information The information referred to in the previous article must be published no later than fifteen (15) calendar days after each calendar quarter, in a newspaper of national circulation in easily legible type. Simultaneously, each financial institution must submit such information to the Superintendency of Banks.

Art. 5 Exclusion
The following are excluded from the publication referred to in article 3 of this norm: loans in default by Directors, Officials and their related parties, as referred to in article 170 of the General Law of Banks, which shall be published in accordance with what is established in the regulations on the matter issued by the Board of Directors.

Art. 6 Obligation to Rectify
When the financial institution, for any reason, publishes the name of a credit client as in default when they are not, it must rectify the error in the same manner and through the same medium of communication. The foregoing must be done within a period not exceeding fifteen (15) calendar days counted from the date the error committed is verified.

Art. 7 Repeal
The Norm on Clients in Default, Clients in Judicial Collection and Persons Who Issue Bounced Checks contained in Resolution CD-SIB-146-3-FEB9-2001, of February 9, 2001, published in La Gaceta, Official Journal No. 47 of March 7, 2001 and its reform contained in Resolution CD-SIBOIF-347-2-MAR18-2005, are hereby repealed.

Art. 8 Effectiveness
This norm shall enter into force from its publication in La Gaceta, Official Journal.

(f) M. Arana S. (f) V. Urcuyo V. (f) Antenor Rosales B. (f) Roberto Solórzano Ch. (f) Gabriel Pasos Lacayo (f) A. Cuadra G. (f) U. Cerna B.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF