Norm on Publication of Overdue Loans of Directors, Officials and Related Parties of Financial Institutions

Resolution No. CD-SIBOIF-505-2-OCTU24-2007 of date October 24, 2007

NORM ON PUBLICATION OF OVERDUE LOANS OF
DIRECTORS, OFFICIALS AND RELATED PARTIES OF FINANCIAL INSTITUTIONS

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

CONSIDERING

I

That in accordance with what is established in article 170 of Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, hereinafter "General Law of Banks", it is necessary to establish the procedure to publish in a newspaper of national circulation, the overdue loans of directors, officials and related parties of banks and financial institutions;

II

That based on the powers conferred by article 3, numeral 13 and article 10 of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, reformed by Law No. 552, Law of Reforms to the aforementioned Law No. 316.

In exercise of its powers,

HAS ISSUED

The following:

NORM ON PUBLICATION OF OVERDUE LOANS OF
DIRECTORS, OFFICIALS AND RELATED PARTIES OF FINANCIAL INSTITUTIONS

CD-SIBOIF-505-2-OCTU24-2007

Art. 1. Objective.- The purpose of this norm is to establish the procedure to publish the overdue credits of directors, officials and related parties of financial institutions, when the latter hold them in the same institution.

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 Superintendence of Banks, insofar as applicable.

Art. 3. Concepts.- For the purposes of this norm, the following are understood:

a) Substantial credits: In the application of article 55, numeral 1, letter b, of the General Law of Banks, when that paragraph refers to the concept of substantial credits, it shall be understood as any active operation referred to in article 4 of the norm that regulates the matter on concentration limits, as well as any operation of sale of adjudicated goods, for amounts according to the levels of authorization, individual or collective, assigned to the official. For these purposes, the following authorization levels are established:

1) For the individual authorization level, active operations for amounts equal to or greater than the equivalent in national currency to twenty-five thousand dollars (US$25,000.00) of the United States of America;

2) For the collective authorization level, active operations for amounts equal to or greater than the equivalent in national currency to fifty thousand dollars (US$50,000.00) of the United States of America.

b) Delinquent debtors: Refers to the directors, officials and other related parties to the financial institution referred to in article 170 of the General Law of Banks.

c) Officials: The concept of officials shall be understood as those persons in financial institutions who hold the positions of chief executive (Executive President, General Director, Executive Director, General Manager or their equivalents) and officials with the power, individual or collective, to authorize substantial credits, in accordance with numeral 1, letters b. and e. of article 55 and article 170 of the General Law of Banks.

d) Overdue balance: Understood as the principal, including overdrafts, and their corresponding interests, equal to or greater than the equivalent in national currency to five thousand dollars (US$5,000.00) of the United States of America, that present payment delays of more than thirty (30) days at the end of the reported month.

Art. 4. Obligation to report.- Financial institutions must report to the Superintendent the names, positions, type of identification, identification number, address, overdue balances, and days in arrears of delinquent debtors who incur in a situation of overdue balance, as determined in letter d) of article 3 of this norm. This report is of monthly periodicity and must be received by the Superintendence no later than on the cut-off date established in the official information calendar sent to financial institutions.

In the case that a delinquent debtor has several overdue balances for amounts less than the amount previously stated in letter d) of article 3 of this norm, but that when added are equal to or greater than the same, they are likewise subject to the publication requirement.

Art. 5. Review and publication of information.- Once the information is received, the Superintendence will proceed as follows:

a) No later than on the date established by the Official Information Calendar, the report referred to in the preceding article and the report for the Risk Central are received;

b) Upon receiving the two monthly reports, the Bank Intendancy will proceed to compare the received information;

c) Obtaining the results of the comparison, if the Risk Central revealed information different from that reported by the institutions or if debtors with unreported overdue balances are determined, the Superintendent will send a letter to the institutions where the determined differences and/or unreported debtors appear, to verify the data; with a copy to the affected person, sent to the supervised entity where they hold their position. This without prejudice to the sanctions applicable in accordance with the regulations on the matter, for reporting incomplete information or reporting it with differences compared to the information from the Risk Central.

d) The creditor institution must respond in writing during the course of three business days from the date of receipt of the Superintendent's letter, with a copy to the affected person. If the information is not gathered within that period, the Superintendence of Banks will take the information from the Risk Central, indicating the total debtor balance and the days in arrears.

e) Upon receiving the information verified by the creditor institutions, the Bank Intendancy will proceed to publish the corresponding information in a newspaper of national circulation in easily legible type.

Art. 6. Repeal.- Resolution CD-SIBOIF-441-2-SEPT05-2006, of September 5, 2006, published in La Gaceta, Official Gazette No. 192 of October 4, 2006, is repealed.

Art. 7. Validity.- This norm will enter into force upon its notification, without prejudice to its publication in La Gaceta, Official Gazette.

(f) Antenor Rosales B. (f) V. Urcuyo V. (f) A. Cuadra G. (f) Roberto Solórzano Ch. (f) Gabriel Pasos Lacayo (f) Antonio Morgan Pérez. Ad Hoc Secretary.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF