ORGANIC LAW OF NACIONAL FINANCIERA

Published in the Official Gazette of the Federation on December 26, 1986.
Updated with reforms published in the same Gazette on May 24, 1996; June 24, 2002; August 1, 2005; May 6, 2009; April 9, 2012 and January 10, 2014.

ORGANIC LAW OF NACIONAL FINANCIERA

INDEX

First Chapter
Name, Object and Domicile

Second Chapter
Objectives and Operations

Third Chapter
Social Capital

Fourth Chapter
Administration and Oversight

Fifth Chapter
General Provisions

Transitory Articles
Statement of Reasons
References

ORGANIC LAW OF NACIONAL FINANCIERA

CHAPTER ONE

Name, Object and Domicile

Article 1. This Law governs Nacional Financiera, National Credit Society, a development banking institution, with its own legal personality and assets.

Article 2. Nacional Financiera, National Credit Society, Development Banking Institution, shall have as its object to promote savings and investment, as well as to channel financial and technical support for industrial promotion and, in general, for the national and regional economic development of the country.

(2) The operation and functioning of the institution shall be carried out in compliance with the applicable legal framework and sound banking practices and usages to achieve the general objectives set forth in Article 4 of the Credit Institutions Law.

Article 3. The domicile of the Society shall be that determined within the national territory by its Organic Regulations. It may establish or close branches or agencies or any other type of offices and appoint correspondents, in the country or abroad, with prior authorization from the Ministry of Finance and Public Credit.

Article 4. The duration of the Society shall be indefinite.

CHAPTER TWO

Objectives and Operations

Article 5. The Society, in order to foster the integral development of the industrial sector and promote its efficiency and competitiveness, in the exercise of its object, will channel support and resources and shall be empowered to:

I. Promote, manage and launch projects that address needs of the sector in different zones of the country or that facilitate the best use of resources of each region;

(5) I Bis.- Establish financing programs to support economic activities that promote job creation, in indigenous companies or organizations; that allow the incorporation of technologies that help them increase their productive capacity, as well as to ensure equitable access of the same to supply and marketing systems;

II. Promote, channel and coordinate the investment of capital;

III. Promote technological development, training, technical assistance and the increase of productivity;

IV. Be the financial agent of the Federal Government regarding the negotiation, contracting and management of external credits, whose objective is to foster economic development, which are granted by private, governmental or intergovernmental foreign institutions, as well as by any other international financial cooperation organism.
Credits for monetary purposes are not included in this provision;

V. Manage and, where appropriate, obtain concessions, permits and authorizations for the provision of public services linked to the achievement of its object or for the exploitation of natural resources, which it will provide to companies it promotes. Under equal circumstances, it shall enjoy the right of preference over individuals or other institutions to obtain such permits, authorizations or concessions, except as provided by applicable legal provisions;

VI. Carry out economic and financial studies that allow determining priority investment projects, in order to promote their realization among potential investors;

VII. Foster the industrial use of unexploited or insufficiently exploited natural resources;

VIII. Foster industrial restructuring, the production of exportable goods and the efficient substitution of imports;

IX. Promote the integral development of the securities market;

(6) X. Foster joint financing and assistance actions with other credit institutions, development funds, trusts, auxiliary credit organizations and with the social and private sectors. In credit contracts entered into with the financing, assistance and support of the society, the following text must be inserted in the borrower's declarations: "The borrower declares knowledge that the credit is granted with the support of Nacional Financiera, exclusively for national development purposes", and

XI. Be administrator and trustee of trusts, mandates and commissions constituted by the Federal Government for the promotion of industry or the securities market.

The Society must have the necessary infrastructure for the adequate provision of services and performance of operations in the different regions of the country.

Article 6. For the fulfillment of the object and the realization of the objectives referred to in Articles 2 and 5 above, the Society may:

(8) I. Perform the operations and provide the services referred to in Article 46 of the Credit Institutions Law.

(8) The operations indicated in said Article 46, fractions I and II, shall be carried out in accordance with Article 47 of said legislation;

II. Issue development bank bonds. The issuances will seek to foster the development of the capital market and institutional investment, and the corresponding titles will be eligible for placement among the general investing public;

(2) III. Issue or guarantee securities, as well as guarantee third-party obligations, either through individual operations or massive guarantee programs, without the limitations provided in Article 46 fraction VIII of the Credit Institutions Law being applicable;

(2) IV. Participate in the social capital of companies, in terms of Article 30 of this Law, as well as in investment companies and operating companies thereof;

V. Administer all types of companies or societies on its own behalf or on behalf of others;

VI. Contract credits for the performance of its promotional functions, in accordance with applicable legal provisions;

VII. Acquire technology, promote its development and transfer it in accordance with the provisions of applicable laws;

VIII. Issue participation certificates based on trusts constituted for this purpose;

IX. Issue registered participation certificates, in which the participation that their holders have in titles or securities, or in groups thereof, which are in the possession of the institution, or are to be acquired for that object, is stated, as an exception to what is established in Article 228 a) of the General Law of Titles and Credit Operations.

The Society will conserve the values of the co-participants, in simple custody or in administration and in that case it may celebrate, on the same titles, the operations it deems pertinent and will only be responsible for the proper performance of its office.
When the participation certificates state the right of the co-owner over individually determined securities, it will be understood that the Society guarantees to the holders the delivery of those titles. When the certificates state only the participation of the co-owner in an aliquot part of a set of values and their products, or the value resulting from their sale, the Society will only be responsible for the existence of the values and the delivery of their products or their price, if applicable. The issuance of said certificates will be made by unilateral declaration of the will of the issuing Society, expressed in a notarial deed, in which the nature, conditions, withdrawal periods and the profits, interests or dividends that Nacional Financiera guarantees to the certificate holders will be fixed;

(8) X. Receive from third parties, in pledge, titles or securities of the issuance that they directly carry out, those that the Society makes at their request, or those of the issuances that it carries out directly;

(8) XI. Perform analogous and related activities to its objectives that the Ministry of Finance and Public Credit indicates for this effect; and

(9) XII. Make the investments provided for in Articles 75, 88 and 89 of the Credit Institutions Law.

(2) Article 7. The Society may be custodian of the titles, securities or cash sums that have to be made by or before the administrative or judicial authorities of the Federation and by or before the administrative authorities of the Federal District, as well as of the cash sums, titles or securities, that are seized by the judicial or administrative authorities of the Federation and those that are seized by the administrative authorities of the Federal District.

(1) The aforementioned authorities shall be obliged to deliver said assets to the society, in its indicated character as custodian.

(2) Deposits for the granting of suspension of the challenged act in the amparo trial and, in general, guarantee deposits that must be constituted in accordance with the provisions of federal laws, and where applicable, of the Federal District or by orders or contracts of authorities of the Federation, and where applicable, of the Federal District, may also be made in the Society.

Article 8. Companies, enterprises or organisms that provide public services must keep in the Society the deposits they receive from their consumers, clients or subscribers, unless otherwise provided by other laws.
Failure to comply with this provision shall be sanctioned by the authority responsible for granting the concession or supervising the provision of the corresponding public service, according to the seriousness of the case, with a fine of up to nine hundred times the general daily minimum wage in force in the Federal District, on the date of non-compliance, which will be doubled in case of recidivism, independently of whether the respective concession or permit can also be cancelled.

(2) Article 9. The Ministry of Finance and Public Credit, as an exception to what is provided by Articles 48 of the Credit Institutions Law and 26 of the Bank of Mexico Law, shall determine through general provisions the characteristics of the active operations, passive operations that do not imply capture of public resources and services, except with respect to trusts, mandates and commissions, that the Society carries out to fulfill the objective and exercise the powers entrusted to it in its character as development bank in this Law.

(2) It corresponds to the Bank of Mexico, in terms of its Law, to regulate through general provisions the characteristics of passive operations that imply capture of public resources, trusts, mandates and commissions, money market operations, as well as financial operations known as derivatives that the Society enters into.

(2) Article 10. The Federal Government shall respond at all times:

(2) I. Of the operations that the Society enters into with national individuals or legal entities;
II. Of the operations negotiated by the Society with private, governmental or intergovernmental foreign institutions; and
III. Of the deposits referred to in Articles 7 and 8 of this Law.

(8) Article 11. In trust contracts entered into by the Society, it may act in the same business as trustee and as beneficiary and carry out operations with the Society itself in the fulfillment of trusts.

CHAPTER THREE

Social Capital

Article 12. The social capital of the Society shall be represented by equity contribution certificates in 66% of series "A" and in 34% of series "B". The nominal value of these titles shall be determined in its Organic Regulations.
Series "A" shall only be subscribed by the Federal Government, issued in a title that will not carry coupons, which shall be non-transferable and under no circumstances may change its nature or the rights it confers upon the Federal Government.
Series "B" may be subscribed by the Federal Government and by Mexican individuals or legal entities, adhering to what is provided by Article 15 of the Regulatory Law of the Public Service of Banking and Credit.
The Ministry of Finance and Public Credit may authorize which entities of the Federal Public Administration and the governments of the federal entities and municipalities may acquire certificates of the aforementioned series "B" in a proportion greater than that established in Article 15 of the Regulatory Law of the Public Service of Banking and Credit.

Article 13. The net capital referred to in Article 34 of the Regulatory Law of the Public Service of Banking and Credit shall be that fixed by the Ministry of Finance and Public Credit after hearing the opinion of the Bank of Mexico and the National Banking and Insurance Commission.

Article 14. At no time may foreign individuals or legal entities, nor Mexican societies whose statutes do not include a clause of direct and indirect exclusion of foreigners, participate in any form in the capital of the Society.
Persons who contravene the provisions of this article shall lose in favor of the Federal Government the participation in question.

Article 15. The Ministry of Finance and Public Credit shall establish the form, proportions and other conditions applicable to the subscription, holding and circulation of the certificates of series "B".

CHAPTER FOUR

Administration and Oversight

Article 16. The administration of the Society shall be entrusted to a Board of Directors and a General Manager, within their respective spheres of competence.

Article 17. The Board of Directors shall be composed of eleven councilors, designated as follows:

I. Six councilors will represent the series "A" of equity contribution certificates, which shall be:
a) The Secretary of Finance and Public Credit, who shall preside over the Board of Directors.

(8) b) The heads of the Ministries of Economy; Energy; the Undersecretary of Finance and Public Credit; a representative designated by the Governor of the Bank of Mexico within the 3 upper hierarchical levels of the central institute, as well as the head of the entity of the Federal Public Administration, linked to the industrial sector, designated by the Federal Executive, through the Secretary of Finance and Public Credit.

(2) The substitutes for the aforementioned councilors shall preferably be public servants at the next lower immediate level.

(3) In the absence of the Secretary of Finance and Public Credit, the Undersecretary of Finance and Public Credit shall have the character of president of the Board of Directors; in the absence of the latter, the substitute of the Secretary of Finance and Public Credit shall have the character of president; and in the absence of all the foregoing, whoever the present councilors designate from among the councilors of series "A".

II. Three councilors from series "B" designated by the Federal Executive, through the Secretary of Finance and Public Credit, with their respective substitutes, appointments that must fall upon persons of recognized prestige and broad knowledge and experience in economic, financial, industrial or regional development matters.

(3) III. Two councilors from series "B" designated by the Federal Executive, through the Ministry of Finance and Public Credit, who shall have the character of independent councilors. The appointments of independent councilors must fall upon persons of Mexican nationality who, due to their knowledge, honorability, professional prestige and experience, are widely recognized.

(3) The Board of Directors may invite to its sessions persons whose activities are related to the object of the Society.

(3) In the agenda of the Board of Directors sessions, the matters to be addressed must be listed and general matters shall not be included.

(8) Article 18. The Board of Directors shall meet at least quarterly and shall validly sit with the attendance of six or more councilors, provided that among them there is a minimum of four of those appointed by series "A".
Resolutions shall be taken by majority vote of the councilors present, with the President having a casting vote in case of a tie.

(3) Independent councilors shall not have substitutes and must attend at least seventy percent of the sessions convened in a fiscal year and in case of failure to do so, others with the same characteristics may be appointed in their place, provided that the absences are not justified in the judgment of the Board of Directors.

Article 19. Persons who:

(2) I. Are in the cases indicated in the second-to-last paragraph of Article 41 of the Credit Institutions Law;
II. Hold an elected office, while exercising it; and
III. Have, with another designated councilor, kinship up to the third degree by consanguinity or affinity.
If any of the designated councilors comes to be included, during the exercise of their office, in any of the foregoing situations, they shall be replaced by their substitute, for the entire time the impediment lasts and no appointment of the principal councilor is made.

(3) IV. Additionally, independent councilors must not have:

(3) a) Labor link or bond with the Society;
(3) b) Significant patrimonial link and/or labor link with an individual or legal entity that is a creditor, debtor, client or supplier of the Society; (3) c) Conflict of interest with the Society, being clients, suppliers, debtors, creditors, important or of any other nature, and (3) d) Representation of associations, guilds, federations, confederations of workers, employers, or sectors of attention that relate to the object of the Society or are members of its governing bodies.

(3) Councilors must communicate to the president of the Board of Directors about any situation that could result in a conflict of interest, as well as abstain from participating in the corresponding deliberation. Likewise, they must maintain absolute confidentiality on all those acts, facts or events that could affect the operation of the Society, including the deliberations of the Board of Directors, while such information has not been made known to the public.

Article 20. The Board shall direct the Society in terms of what is provided by Article 20 and other related articles of the Regulatory Law of the Public Service of Banking and Credit.
The Board of Directors may agree on the performance of operations inherent to the object of the Society. Agreements that it issues, where applicable, regarding the operations provided for in fractions VI and IX of Article 30 of the Regulatory Law of the Public Service of Banking and Credit, must consider the proposal of the General Manager.

(8) Article 21. Also, the following shall be powers of the Board of Directors, in terms of the Credit Institutions Law:

I. Approve the annual activity report presented by the General Manager;
II. Approve venture capital investments referred to in Articles 6, fraction IV and 30 of this law and their alienation, establishing the modalities it considers convenient;
III. Authorize the acquisition and use of technology referred to in fraction VII of Article 6 of this Law; and
IV. Approve the other specific programs and internal regulations of the institution presented by the General Manager, in order to submit them to the authorization of the Ministry of Finance and Public Credit.

(3) V. Issue the norms and criteria to which the preparation and exercise of the current expenditure and physical investment budget of the Society must be subject, as well as approve said budget and the modifications that correspond to make during the exercise, once the global amounts of these concepts are authorized by the Ministry of Finance and Public Credit; and

(8) VI. Approve, upon proposal of the human resources and institutional development committee, in accordance with what is provided in Article 42, fraction XVIII of the Credit Institutions Law, the organic structure, salary scales and benefits, wage policy and for the granting of extraordinary perceptions for the fulfillment of goals subject to performance evaluation, taking into account the prevailing labor market conditions in the Mexican financial system; policies on promotions, promotions and retirements; guidelines for selection, recruitment and training; separation criteria; and the other economic and social security benefits established for the benefit of public servants working in the Society.

(9) Without prejudice to the foregoing, the Board of Directors must approve for each exercise a program that is oriented to finance micro, small and medium-sized enterprises, seeking to allocate at least fifty percent of the value of the direct and guaranteed portfolio of the Society.

Article 22. The General Director shall be appointed by the Federal Executive through the Secretary of Finance and Public Credit, and such appointment must fall upon a person who meets the requirements established in Article 24 of the Law Regulating the Public Banking and Credit Service.

Article 23. The General Director shall be in charge of the administration and legal representation of Nacional Financiera, National Credit Society, a development banking institution, without prejudice to the powers corresponding to the Board of Directors; to this effect, it shall have the following powers and functions:

(2) I. In the exercise of its powers of legal representation, it may celebrate or grant any kind of acts and documents inherent to the object of the Society. It shall have the broadest powers to perform acts of ownership, administration, litigation, and collection, even those that require special authorization according to other legal or regulatory provisions. In virtue of this, and in an enumerative, not exhaustive manner, it may issue, endorse, and negotiate credit instruments, file complaints and grant forgiveness, exercise and withdraw from judicial actions, including in the trial of amparo; submit to arbitration and transact, grant general and special powers with all the powers that belong to it, even those that require a special clause, substitute them, revoke them, and grant powers of substitution to attorneys-in-fact, obtaining express authorization from the Board of Directors when it comes to granting general powers for acts of ownership;

(9) I Bis. Inform the Secretariat, prior to the authorization of the corresponding instances, of the operations that could be linked to the object of other development banking institutions;

II. Execute the resolutions of the Board of Directors;

III. Keep the corporate signature;

IV. Act as General Trustee Delegate;

(8) V. Decide on the designation and hiring of the public servants of the Society, other than those indicated in Article 42 of the Credit Institutions Law, as well as the designation and removal of trustee delegates; administer the personnel as a whole, and establish and organize the offices of the institution;

VI. Authorize the publication of the monthly balances of the institution, in accordance with the bases agreed upon by the Board of Directors;

VII. Participate in the sessions of the Board of Directors with voice;

VIII. Those conferred by the Organic Regulation; and

IX. Those delegated by the Board of Directors.

(3) Article 23 bis. Causes for the removal of "B" series councilors and independent councilors are:

(3) I. Mental incapacity, as well as physical incapacity that prevents the correct exercise of their functions for more than six months;

(3) II. Failure to comply with the agreements of the Board of Directors or acting deliberately in excess or defect of their powers;

(3) III. Using, for their own benefit or that of third parties, the confidential information they possess by reason of their position, as well as disclosing said information without the authorization of the Board of Directors, and

(3) IV. Knowingly submitting false information to the consideration of the Board of Directors.

(3) In addition to the causes for removal indicated in this provision, "A" series councilors and the General Director shall be removed from their position when their responsibility is determined by a final resolution issued by a competent authority, for falling under any of the situations contained in the Federal Law of Administrative Responsibilities of Public Servants.

(8) Article 24. The supervision of the Society shall be carried out by the bodies and in the terms indicated in the Credit Institutions Law and the general provisions issued by the National Banking and Securities Commission.

(4) Article 25. Repealed.

Article 26. The Councilors, the General Director, and the Trustee Delegates of the Society shall only be obligated to answer positions or give testimony in court on behalf of the same, when the positions and questions are formulated by means of an official letter, which they shall answer in writing within the term set by the respective authorities.

CHAPTER V
General Provisions

Article 27. The Ministry of Finance and Public Credit shall interpret this Law for administrative purposes.

Article 28. The operations and services of the Society shall be governed by what is provided in this Law, by the Law Regulating the Public Banking and Credit Service, by the Organic Law of the Bank of Mexico, and by the other applicable legal provisions.

(2) Article 29. The Society shall formulate annually its financial programs, general budgets of expenses and investments, as well as its operational programs in accordance with the guidelines, measures, and mechanisms established for this purpose by the Ministry of Finance and Public Credit.

(2) It is the responsibility of the Ministry of Finance and Public Credit to coordinate, evaluate, and supervise the performance of Nacional Financiera, as well as to authorize the modalities in the allocation of resources, in accordance with Article 31 of the Credit Institutions Law.

The best use and most appropriate channeling of the institution's resources shall be sought within the framework of the management autonomy required for its effective functioning, in accordance with the applicable legal provisions.

Article 30. The participation that Nacional Financiera carries out in the social capital of companies referred to in fraction II of Article 5 and fraction IV of Article 6 of this Law shall be subject to the following bases:

I. It shall seek that its participation in the social capital of industrial or technology companies be priority activities and temporary and minority;

II. It may reach up to 20% of the capital of the issuer;

III. It may reach up to 50% of the capital of the issuer, for a period of up to 7 years, prior agreement of the Board of Directors;

IV. It may be by higher percentages and terms, according to the nature and situation of the company in question, and considering the development of socially and nationally necessary activities that require resources for the realization of long-maturing projects susceptible to promotion, prior authorization of its Board of Directors; and

V. In the alienation of its shareholding, it shall seek to strengthen the securities market, as well as the adequate development of the company it has promoted.

The investments referred to in this article shall only count to consider the issuers as state participation companies when the Federal Executive issues the respective agreement, in which it is declared that the companies, in accordance with the applicable legal provisions, have been considered as parastatal entities, by configuring the situations indicated in Article 6, second paragraph, and 29 of the Federal Law of Parastatal Entities.

Article 31. The operations carried out by the Society in the provision of the public banking and credit service in which real guarantees are constituted, may be recorded in a private document that, without further formality, must be registered by those in charge of the corresponding public registries, in accordance with Article 50 of the Law Regulating the Public Banking and Credit Service.

Article 32. The Society may alienate participations in the social capital of companies:

I. Through the Securities Market; and

II. In accordance with the procedure and bases provided in the following article and in its Organic Regulation, to ensure the continuity, evolution, and consolidation of the promoted company.

Article 33. The procedure referred to in fraction II of the previous article shall adhere to the following bases:

I. Those interested in acquiring said participations must present their written purchase offer to the Society, which must meet the following requirements:

a) Description and quantity of the participations, as well as the price they offer to pay;

b) Form of payment of the offered price and, if applicable, guarantees for its compliance;

c) Term in which the offer will remain valid;

d) Properly accredited personality of the representative of the bidder, when it comes to legal entities or natural persons who do not do so by their own right; and

e) Those others that the Society deems convenient for the most adequate evaluation of the proposal;

II. The Society may require bidders to constitute a guarantee in its favor for at least 10% of the offered price; and

III. It corresponds to the Board of Directors of the Society to analyze the offers and decide on them, for which it will consider the administrative capacity of the bidders and their experience in the activity carried out by the issuing company, with a view to promoting its adequate development.

Article 34. Prior authorization of the Ministry of Finance and Public Credit, the Society must constitute the reserves and funds necessary for the adequate fulfillment of the object entrusted to it by this Law. The amounts that have been taken to said reserves and funds shall not be considered as operating surplus.

Once the amount of the surplus is fixed and the amount corresponding to pay the respective tax and the workers' participation in the profits of the Society is separated, the balance shall be applied in the terms provided by the Organic Regulation.

(8) Article 35. The Society shall have a Human Resources and Institutional Development Committee, which shall be integrated as follows:

(8) Three representatives of the Ministry of Finance and Public Credit; the Undersecretary of Expenditures, the Undersecretary of Finance and Public Credit, and the Head of the Development Banking Unit;

(8) One person designated by the Board of Directors, who by their knowledge and professional development, has extensive experience in the area of human resources;

(8) A member of the Board of Directors who has the character of independent;

(8) The General Director of the Society, and

(8) A representative of the National Banking and Securities Commission with voice, but without vote.

(8) The General Director of the Society shall abstain from participating in the sessions of the Committee, which have the object of issuing opinions or recommendations regarding their salary, economic benefits, and social security.

(8) This Committee shall opine and propose, salary scales and benefits, salary policy and for the granting of extraordinary perceptions for the fulfillment of goals subject to performance evaluation; promotion, advancement, and retirement policies; guidelines for selection, recruitment, and training; separation criteria; and the other economic benefits and social security established for the benefit of the public servants working in the Society.

(8) The Ministry of Finance and Public Credit shall establish criteria in matters of occupational structure, salary movements, extraordinary perceptions, and benefits, which must be observed by the Committee. Likewise, the Society shall provide the indicated Ministry with the information it requests.

(8) This Committee shall meet at the request of the General Director of the Society, who shall send the respective summons to its members, where it shall establish the agenda, as well as the place and date for the holding of the session. Its decisions shall be taken by majority of votes. The Undersecretary of Finance and Public Credit, who shall preside, shall have a casting vote in case of a tie. Likewise, the Committee shall have a technical secretary, who shall have voice, but without vote.

(8) Except for the independent councilor and the professional with experience in the area of human resources, the other members of the Committee shall have their respective substitutes, who shall preferably be public servants of the next lower level and must have at least general director level.

(8) In case of absence of the Undersecretary of Finance and Public Credit, without prejudice to the voting right of their substitute, the Head of the Development Banking Unit shall preside over the Committee and exercise the casting vote.

(3) Article 36. The Society shall grant its financing through private financial institutions that assume partial or total risk of recovery of these supports.

The provisions of the previous paragraph shall not be applicable to the following operations:

(3) I. Share investment and investments in the money market;

(3) II. Financing with a total amount equal to that determined by the Board of Directors, with prior authorization of the Ministry of Finance and Public Credit;

(3) III. Operations corresponding to labor benefits granted generally;

(3) IV. Operations carried out with the Federal Government, entities of the parastatal sector, federative entities, and municipalities, and

(3) V. Financing for infrastructure and public service projects derived from concessions, service provision contracts, public works, housing, and industrial parks, permits and authorizations from federal authorities, federative entities, and municipalities, as well as from their parastatal and paramunicipal entities.

(3) The financing referred to in this fraction may be granted only if it concerns projects related to its object in a majority form.

(9) Article 37.- The Society shall provide legal assistance and defense services to the members of its Board of Directors, committees established by the same or provided for by normative provision, and to the public servants who work or have worked in the institution itself, with respect to the acts that these persons carry out in the exercise of the functions entrusted to them by law and in accordance with the guidelines issued for this purpose by the Ministry of Finance and Public Credit.

(9) The aforementioned legal assistance and defense shall be provided even when the indicated persons cease to perform their functions or provide their services to the Society, provided that it concerns acts carried out in the performance of their functions or activities in service of the Society.

(9) Legal assistance and defense shall be provided from the resources available to the Society for these purposes. In the event that the competent authority issues a final resolution against the subject of legal assistance that becomes enforceable, such person must reimburse the Society for the expenses and any other disbursement that it has made on account of the legal assistance and defense.

(9) The provisions of this article shall apply without prejudice to the obligation that subjects of legal assistance and defense have to provide the reports required of them in accordance with applicable legal provisions as part of the performance of their functions.

TRANSITORY PROVISIONS
(Decree by which the Organic Law of Nacional Financiera is issued, published in the Official Gazette of the Federation on December 26, 1986)

FIRST ARTICLE. This Law shall enter into force the day after its publication in the Official Gazette of the Federation.

SECOND ARTICLE. This Law repeals the Organic Law of Nacional Financiera, Anonymous Society, issued on December 29, 1974, published in the Official Gazette of the Federation on January 2, 1975.

THIRD ARTICLE. The authorizations, powers, mandates, and other legal acts and administrative measures granted, dictated, or celebrated based on the Law that is repealed, shall remain in force until they are revoked or modified by the competent bodies or authorities.

FOURTH ARTICLE. The Organic Regulation of the Society must be issued within a period not exceeding 180 days, counted from the date of validity of this Law. Until then, the one issued on July 26, 1985, shall remain in force.

Mexico, D.F., December 17, 1986.- Rep. Reyes R. Flores Zaragoza, President.- Sen. Gonzalo Martínez Corbalá, President.- Rep. Eliseo Rodríguez R., Secretary.- Sen. Héctor Vázquez Paredes, Secretary. - Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States and for its due publication and observance, I issue this Decree in the residence of the Federal Executive Power in Mexico City, Federal District, on the eighteenth day of the month of December of one thousand nine hundred eighty-six.- Miguel de la Madrid H.- Signature.- The Secretary of the Interior, Manuel Bartlett D.- Signature.

TRANSITORY PROVISIONS
Decree by which various provisions of the Civil Procedures Code for the Federal District; of the Organic Law of Nacional Financiera; of the Commercial Code; of the General Law of Credit Instruments and Operations; and of the Civil Code for the Federal District in common matters and for the whole Republic in federal matters, published in the Official Gazette of the Federation on May 24, 1996

FIRST.- The reforms provided for in articles 1 and 3 of this Decree shall enter into force sixty days after its publication in the Official Gazette of the Federation and shall not be applicable to any person who has contracted credits prior to the entry into force of this Decree. Nor shall they be applicable regarding the novation or restructuring of credits contracted prior to the entry into force of this Decree.

SECOND.- The reform provided for in the second article shall enter into force at the same time as the respective legislation of the Superior Court of Justice of the Federal District that regulates the functioning of the Justice Administration Fund for the Federal District.

THIRD.- The reform provided for in the fourth article shall enter into force the day after its publication in the Official Gazette of the Federation and shall be applicable to trusts that are celebrated after said entry into force, and without these trusts being able to be instruments to novate credits contracted prior to the entry into force of this Decree.

FOURTH.- The reforms provided for in the fifth article shall enter into force the day after its publication in the Official Gazette of the Federation.

Mexico, D.F., April 29, 1996.– Sen. Miguel Alemán Velasco, President.- Rep. Claudia Esqueda Llanes, President.- Sen. Raúl Juérez Valencia, Secretary.– Rep. Jesús Carlos Hernández Martínez, Secretary. - Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States and for its due publication and observance, I issue this Decree in the residence of the Federal Executive Power in Mexico City, Federal District, on the twenty-first day of the month of May of one thousand nine hundred ninety-six.- Ernesto Zedillo Ponce de León.- Signature.- The Secretary of the Interior, Emilio Chuayffet Chemor.- Signature.

TRANSITORY PROVISIONS
Decree by which various provisions of the Credit Institutions Law; of the Organic Law of Nacional Financiera; of the Organic Law of the National Bank of Foreign Trade; of the Organic Law of the National Bank of Public Works and Services; of the Organic Law of the National Bank of the Army, Air Force and Navy; of the Organic Law of the National Savings Bank and Financial Services; and of the Organic Law of Federal Mortgage Society, published in the Official Gazette of the Federation on June 24, 2002.

FIRST ARTICLE.- This Decree shall enter into force the day after its publication in the Official Gazette of the Federation.

SECOND ARTICLE.- The Ministry of Finance and Public Credit shall make known the rules to determine the quotas referred to in Article 55 bis of the Credit Institutions Law, as well as the investment regime of the trusts that development banking institutions must constitute within the following ninety natural days counted from the entry into force of this Decree.

THIRD ARTICLE.- Development banking institutions shall be subject to the General Working Conditions in force, until new ones are issued and they enter into force.

FOURTH ARTICLE.- All provisions that oppose the laws that are reformed, added, and repealed in this Decree are repealed.

FIFTH ARTICLE.- Procedures that had been initiated prior to the entry into force of this Decree, in accordance with the laws that are reformed, added, and repealed, shall continue to be governed by the provisions in force on the date of publication of this Decree.

SIXTH ARTICLE.- The human resources and institutional development planning committee must be integrated and enter into functions within a period not exceeding ninety natural days counted from the date on which this Decree enters into force.

SEVENTH ARTICLE.- The comprehensive risk management committee must be integrated and enter into functions within 60 business days following the date on which this Decree enters into force.

EIGHTH ARTICLE.- With regard to the modification to Article 7 of the Organic Law of Nacional Financiera, the references contained in the legal orders where it is indicated that deposits of titles, securities, or cash sums that must be made by or before the administrative or judicial authorities of the Federation or by or before the administrative authorities of the Federal District, as well as the cash sums, titles, or values that the judicial or administrative authorities of the Federation seize and those that the administrative authorities of the Federal District seize, shall be constituted in

Nacional Financiera, Sociedad Nacional de Crédito, shall be understood to be able to be constituted as national credit societies, development banking institutions that are authorized by law for such effect.

ARTICLE NINTH.- The State and National Advisory Councils referred to in Articles 33 and 34 of the Organic Law of the National Bank of Public Works and Services shall be integrated and enter into functions within the 180 natural days following the date on which this Decree enters into force.

Mexico, D.F., April 30, 2002.- Dep. Beatriz Elena Paredes Rangel, President.- Sen. Diego Fernández de Cevallos Ramos, President.- Dep. Adrián Rivera Pérez, Secretary.- Sen. Sara Isabel Castellanos Cortés, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the Residence of the Federal Executive Power, in Mexico City, Federal District, on the twenty-first day of the month of June of two thousand two.- Vicente Fox Quesada.- Signature.- The Secretary of the Interior, Santiago Creel Miranda.- Signature.

TRANSITORY PROVISIONS

Decree by which various articles of the Organic Laws of Development Banking are reformed and added, published in the Official Gazette of the Federation on August 1, 2005.

First.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Second.- The provisions that contravene the provisions of this Decree upon its entry into force are hereby repealed.

Mexico, D.F., April 26, 2005.- Dep. Manlio Fabio Beltrones Rivera, President.- Sen. Diego Fernández de Cevallos Ramos, President.- Dep. Marcos Morales Torres, Secretary.- Sen. Sara I. Castellanos Cortés, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the Residence of the Federal Executive Power, in Mexico City, Federal District, on the thirty-first day of the month of May of two thousand five.- Vicente Fox Quesada.- Signature.- The Secretary of the Interior, Santiago Creel Miranda.- Signature.

TRANSITORY PROVISION

Decree by which various provisions of the Credit Institutions Law are reformed and added, and fraction X of Article 5 of the Organic Law of Nacional Financiera is reformed, published in the Official Gazette of the Federation on May 6, 2009.

Sole Article. This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Mexico, D.F., March 31, 2009.- Sen. Gustavo E. Madero Muñoz, President.- Dep. César Horacio Duarte Jáquez, President.- Sen. Gabino Cue Monteagudo, Secretary.- Dep. Santiago Gustavo Pedro Cortes, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the Residence of the Federal Executive Power, in Mexico City, Federal District, on twenty-seven of April of two thousand nine.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Lic. Fernando Francisco Gómez Mont Urueta.- Signature.

TRANSITORY PROVISIONS

(Decree by which various Federal Laws are reformed, with the object of updating all those articles that make reference to the Secretariats of State whose denomination was modified and to the Government of the Federal District insofar as applicable; as well as eliminating the mention of administrative departments that are no longer in force, published in the Official Gazette of the Federation on April 9, 2012)

First. This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Second. From the date on which this Decree enters into force, the provisions that contravene or oppose it are hereby repealed.

Mexico, D.F., February 21, 2012.- Dep. Guadalupe Acosta Naranjo, President.- Sen. José González Morfín, President.- Dep. Laura Arizmendi Campos, Secretary.- Sen. Renán Cleominio Zoreda Novelo, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the Residence of the Federal Executive Power, in Mexico City, Federal District, on thirty of March of two thousand twelve.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Alejandro Alfonso Poiré Romero.- Signature.

Transitory Provisions

(Decree by which various provisions in financial matters are reformed, added, and repealed, and the Law to Regulate Financial Groups is issued, published in the Official Gazette of the Federation on January 10, 2014)

ARTICLE TWENTY-FIRST.- With respect to the modifications referred to in Articles Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth, Sixteenth, Seventeenth, Eighteenth, Nineteenth, and Twentieth of this Decree, the following shall apply:

I. The Congress of the Union, when issuing the regulatory laws referred to in the second paragraph of the transitory article two of the Decree by which various provisions of the Organic Law of the Federal Public Administration are reformed, added, and repealed, published in the Official Gazette of the Federation on January 2, 2013, will provide a special control and evaluation system for development banking institutions that is consistent with their nature and functions, avoids duplication of supervision and monitoring mechanisms, and contributes to the efficiency of said institutions.

II. From the entry into force of this Decree, trusted workers of development banking institutions shall be excluded from the application of the general working conditions of the respective institution. Without prejudice to the foregoing, the acquired rights of trusted workers employed in a development banking institution on the date of entry into force of this Decree must be respected, with the appropriate provisions established in the remuneration and retirement manuals referred to in Article 43 Bis of the Credit Institutions Law, reformed in accordance with this Decree.

III. Within a period of sixty natural days following the entry into force of this Decree, national credit societies must extinguish the trust established in terms of Article 55 Bis of the Credit Institutions Law.

IV. The social banking functions provided for in the reform to Article 3 of the Organic Law of the National Savings and Financial Services Bank must be implemented by the institution starting January 1, 2014; therefore, the FEDERAL EXPENDITURE BUDGET FOR THE FISCAL YEAR 2014 must provide for the allocation of resources to strengthen the equity of the National Savings and Financial Services Bank so that it can fulfill its purpose as Social Banking.

V. Within a period of ninety natural days, the Ministry of Finance and Public Credit will conduct an evaluation of the subsidies, support, programs, funds, and trusts granted and administered by entities of the Federal Public Administration, with the purpose of diagnosing the feasibility of channeling them through a new single system of agricultural and rural financing and promotion.

VI. When this or other decrees, codes, laws, regulations, or legal provisions issued prior to this Decree, as well as all contracts, agreements, and other legal acts concluded by the institution, refer to Rural Financial, it shall be understood that they refer to the National Financial Institution for Agricultural, Rural, Forestry, and Fisheries Development.

TRANSITORY PROVISION OF THE DECREE

SOLE. This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, except for what is provided in ARTICLES TWENTY-FIFTH, fraction I; THIRTIETH, fractions IV and VI; FORTIETH, fractions I and II; and FIFTIETH, fractions I and II, which shall enter into force on the dates established in said provisions.

Mexico, D.F., November 26, 2013.- Dep. Ricardo Anaya Cortes, President.- Sen. Raúl Cervantes Andrade, President.- Dep. Javier Orozco Gomez, Secretary.- Sen. María Elena Barrera Tapia, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the Residence of the Federal Executive Power, in Mexico City, Federal District, on nine of January of two thousand fourteen.- Enrique Peña Nieto.- Signature.- The Secretary of the Interior, Miguel Ángel Osorio Chong.- Signature.

STATEMENT OF MOTIVES

(Decree of December 26, 1986)

The present Organic Law of Nacional Financiera initiative submitted to the consideration of that honorable Congress is guided by the principles of state economic leadership, mixed economy, and democratic planning, enshrined in the Supreme Law.

It is conceived, by legal imperative, within the general regime of the Regulatory Law of the Public Service of Banking and Credit, to which some provisions are incorporated that reflect its specialization for the promotion and financing of the industrial sector.

The general objective of government financing policy is to support structural change, through an economic and social strategy that takes into account restrictions on financial resources, the country's priorities, and the viability of investment processes and projects.

The currently in force Organic Law of Nacional Financiera states that it is responsible, among other functions, for the efficient and equitable channeling of resources, in order to support priority economic development activities for the country's industry and regional development.

The development finance system, restructured as a whole, must respond effectively to the new requirements of the economy, reaffirming its natural functions, specifying them at the level of each institution, and incorporating them into a scheme of congruence and coordination between development banks and development funds.

In this framework, it is the responsibility of development banking and development funds to allocate most of their resources to support the expansion of the productive infrastructure of priority activities and regions of the country.

Nacional Financiera's responsibility as a development banking institution has been, in addition to the function of financial intermediation and the granting of selective or preferential credits, to provide technical assistance and risk capital, promote the organization of companies, advise and evaluate projects of social interest, and in sum, constitute a facilitating medium for economic transformation, through financing, as solid support for industrial and regional development.

The initiative submitted to the consideration of that honorable Congress of the Union comprises, on the one hand, the regulation of the essential elements of Nacional Financiera as a National Credit Society; additionally, it regulates in detail its object, objectives, and operations, as well as in special sections, the composition of its capital and its administration and oversight.

In this way, Chapter I records the legal nature of Nacional Financiera, according to the system established by the new banking legislation, highlighting the generic object embodied in Article 2nd to promote savings and investment, as well as to channel financial and technical support to industrial development and, in general, to the national and regional economic development of the country. The scope of action that the institution has had is preserved, its specialization is emphasized, and it is granted the necessary flexibility and adaptation capacity required for the balanced development of the country.

Chapter II establishes the specific objectives of the society and enumerates the operations it is authorized to perform, to which a series of qualitative guidelines are incorporated that allow it to fulfill its mission better. Thus, Article 5th states that its promotion of the industrial sector must promote its integral development, promoting aspects of growing importance for the productive plant, such as efficiency and competitiveness.

Of the specific objectives expressed in the cited provision, the reaffirmation of some important functions, as well as some innovations of significance, are mentioned.

The character of Nacional Financiera as a financial agent of the Federal Government is reaffirmed, with respect to the negotiation, contracting, and management of credits whose objective is to promote economic development.

The legal category of the specific objective is elevated, the need to promote the restructuring of the country's productive plant, as an indispensable measure of its sound development, and the society is granted the responsibility to promote and coordinate joint development actions with other institutions and entities, as well as to be the administrator of trusts, mandates, and commissions constituted by the Federal Government, for the promotion of the industrial sector and the securities market, establishing the need to have, in different zones of the country, the necessary elements to satisfactorily fulfill its task of regional development.

On the other hand, the operations that the society can perform to achieve its objectives are recorded, establishing a broad framework of flexible action capable of responding to the changing situation of the economic environment.

Similarly, the exception to the general rule on trusts is consecrated, authorizing the double quality of trustee and fiduciary of the institution, in the trusts it administers.

In Chapter III, the modalities of social capital and net capital are treated. Unlike the current law and taking into account what is provided by banking legislation, social capital is integrated with contribution certificates of the "A" and "B" series; the first represents 66% of the total capital and will only be subscribed by the Federal Government; the "B" series, which represents 34%, may be subscribed by the Federal Government and by Mexican individuals or corporations, by the governments of the federative entities and municipalities. All matters regarding the form, proportions, and other conditions applicable to the subscription, holding, and circulation of these latter certificates are attributed to the Ministry of Finance and Public Credit.

Chapter IV regulates the administration and oversight of the institution, with the first falling to the board of directors and the general director, and the second to two auditors.

The initiative considers the integration of the board of directors with seven members, based on the fourth paragraph of Article 21 of the Regulatory Law of the Public Service of Banking and Credit, attending to the characteristics of the institution and based on the experience obtained.

Thus, and to guarantee a broad representation of high rank in this collegiate body, it is provided that the five members of series A will be the Secretaries of Finance and Public Credit, of Programming and Budget, of Commerce and Industrial Development, and of Energy, Mines, and State Industry, as well as the head of a Federal Public Administration entity linked to the industrial sector.

Additionally, it is provided that the two counselors of series B will be the presidents of two guild representations of the private industrial sector, formalizing a situation that has been beneficial and has allowed (sic) to link the institution better with the main sector under its responsibility.

Chapter V contains general provisions of which the following deserve special reference:

a) An adequate system of programming, budgeting, control, oversight, and evaluation is proposed for the effective functioning of the Society, as well as the principle of management autonomy common to the rest of the national credit societies.

b) The bases to which the institution must adjust in its participation in the social capital of companies with an orientation consistent with its development vocation are specified. In this way, such participations must be sought to be stimulation of priority activities and of a temporary nature, the latter to promote the revolving of resources that allows new investments to be made. Furthermore, and attending to the nature of such investments, it is provided that participations in supported companies do not count to consider them as state participation entities, and thus allow their operation to have flexibility analogous to the rest of companies of their (sic) type. All of this is based on the Federal Law of Para-State Entities.

In view of the foregoing, in exercise of the power conferred upon me by fraction I of Article 71 of the Political Constitution of the United Mexican States, in relation to what is prescribed by Articles 28, fifth paragraph, and 73, fraction X of the same supreme order, through your honorable channel, I submit to the consideration of the Honorable Congress of the Union the following:

STATEMENT OF MOTIVES

(Decree of May 24, 1996)

One of the highest aspirations of all Mexicans is to have a regime where the law is the only framework for social coexistence and norms regulate effectively the relations between the members of society, and between them and their authorities. For this reason, the Government of the Republic has undertaken a vast task aimed at achieving the development and strengthening of the Rule of Law.

This commitment requires acting on several fronts (sic). In addition to structural reforms on the organization, attributions, and functioning of judicial organs, the Rule of Law demands the existence of legal norms that guarantee the prompt and expeditious administration of justice.

The complexity of legal systems, the existence of procedures that are notoriously inappropriate, and the excess of procedures and procedural requirements foster legal insecurity for the governed and the feeling of injustice. Likewise, uncertainty derived from inadequate norms constitutes a problem that affects the country's development and inhibits private initiative.

Despite the undeniable advances that have been achieved in Mexico regarding the modernization of the legal framework, delays (sic) are still observed that prevent full legal security. We must recognize that today there still exist norms and practices (sic) that are flawed, which hinder access to justice for a significant number of Mexicans, giving rise to processes of great complexity, where even the Law itself can promote behaviors that distort the legislator's original intention.

For this reason, we must have legal orders that allow the application, in a prompt and expeditious manner, the norm to the specific case: ensuring that our laws propose just solutions; promoting (sic) that operations that should be agile and simple do not become difficult or unrealizable; as well as preventing inequality between the parties, derived from economic circumstances.

The levels of legal security required for economic development can only be achieved if we have judicial instruments that guarantee an agile application of the norms.

We must provide formulas to discourage lawsuits or defenses that are clearly inappropriate, with an effective condemnation in costs for those who engage in such conduct. Only those who consider having a legitimate right and wish to assert it should sue or defend themselves, and not those who, knowing that they will lose, seek exclusively to delay the judgment through maneuvers that delay the administration of justice.

In light of the above, in accordance with the National Development Plan 1999-2000, a deep analysis of the laws governing (sic) judicial procedures has been carried out. Institutions that have been incorporated over the years, in many cases attending to conjunctural problems and, on occasion, without a comprehensive vision of our procedural system, have been found. In this sense, it is necessary to evaluate what the purpose of establishing different incidents and stages in the knowledge phases of judicial procedures has been.

Likewise, we must consider that various interpretations in the application of figures not duly articulated have caused delays and the hindrance of trials. The judicial authority, facing multiple contradictory situations, is forced to maintain legal uncertainty over controversies that have been raised (sic), as through vicious practices, the continuation of procedures is prevented.

These abuses are based on provisions whose spirit has not been fully captured by the text of the Law.

The legal insecurity and uncertainty that, for the above reason, face those who are the legal channels requesting a binding resolution to their commercial, civil, or family disputes, have a significant economic and social repercussion in our country. For this reason, it is a constant concern of the Federal Government to implement and ensure conditions that allow companies and individuals to resolve conflicts in their environment without long, complicated, and costly procedures.

Civil Procedure Code for the Federal District
The reform to the Civil Procedure Code for the Federal District, submitted through this Initiative to the consideration of the Honorable Congress of the Union, aims to update and refine the norms governing and directing judicial activity, seeking at all times to restore the healthy balance that must exist between the parties in a State of Law.

To this end, it is fundamental to prevent the procedural system from being manipulated under fraudulent arguments, thereby obtaining undue advantages to the detriment of those who, in accordance with the law, turn to the judicial authority to seek a solution to a controversy. The use of institutions of procedural law to avoid fulfilling legally contracted obligations is reprehensible.

This initiative draws on forensic experience in the Federal District and addresses the concerns of magistrates, judges, and litigants who face endless trials due to the position of some professionals who make the obstruction of processes their profession, to the detriment of their counterparts and, in general, of the administration of justice. Special care has been taken to return to the origin and motivation of multiple figures that were distorted over the years, thereby restoring the just balance between co-litigants.

Indeed, it is provided that none of the procedural exceptions may suspend the procedure, which discourages litigants from filing frivolous and bad-faith motions to prolong the procedure. Furthermore, it is established that, except for the lack of jurisdiction of the judicial body, all exceptions must be resolved in the prior hearing, for conciliation and procedural exceptions, so that the respective trial proceeds without further prior obstacles.

A novelty in forensic practice is incorporated, which is the fact that a duplicate of the file will be integrated, which will bring important benefits both in terms of the replacement of records and in the processing of appeals.

For the benefit of litigants and the general public, the hours for receiving documents at the Common Clerk's Office are extended, which will remain open until 12:00 a.m.

It is provided that to obtain simple photostatic copies of the records, no judicial decree or agreement will be required, being sufficient the simple verbal request of an authorized person. Furthermore, the certification of copies will not incur any contribution.

In order to avoid improper practices that only delay the procedure, it is required that in the complaint and the answer thereto, the names of the witnesses who, if any, witnessed the facts be indicated, and furthermore, all founding documents of their action or exceptions and with which the parties intend to prove their statements must be attached. If they do not have such documents in their possession, and these are in public archives, it will be sufficient that they prove having requested them from the person in charge of such archive. The omission of this last step in the issuance of the document in question will give rise to monetary sanctions.

In this project, important changes were also made in the processing of letters rogatory, so that the requesting party is responsible for their fulfillment and does not leave room for the delays so commonly used by some litigants.

In accordance with advances in communication media, notifications may be made by telephone and facsimile, but only when so authorized by the parties.

The term for the expiration of the instance is modified so that it may be asserted after a period of 90 business days has elapsed. The foregoing is due to the large number of matters that, due to lack of interest by the parties, remain in the courts, thereby causing the unnecessary use of human and material resources.

The imposition of costs is regulated efficiently so that they are paid by the party who promotes in bad faith, or with actions or exceptions that are notoriously inappropriate.

Likewise, special emphasis was placed on the processing of objections to jurisdiction, both by declination and by inhibition, since a general complaint of the forum lies in the fact that such exceptions are promoted, in most cases, to delay the procedure with excessive procedures. In this way, if this initiative is approved, time limits will be established to file objections to jurisdiction, their processing does not suspend the respective procedure, and furthermore, if the judge realizes that a party raised a notoriously inappropriate objection to jurisdiction, he would impose a monetary sanction that would be applied in favor of the co-litigant.

Regarding irregularities that may arise in the personality of any of the parties, it is provided that the judge may grant a term to remedy them, if possible, which avoids that, due to a formal issue, the judge does not enter into the substantive solution of the controversy.

With regard to the admission and discharge of expert evidence, the initiative proposes modifications with the purpose of returning this evidence to its true nature, that is, a report issued by experts in some science, technique, art, or industry, and not simple diligences carried out by persons who are not true experts, render reports far from reality, solely with the intention of confusing the judge or delaying the procedure. Furthermore, it now contemplates the obligation of the parties to promote the expert evidence they promoted and whose discharge they seek, and in case they do not do so, only the report of the expert of the opposing party will be valued.

In this section, an agile and simple regulation is also introduced to process recusations to the third expert in disagreement, with monetary sanctions in the case of inappropriate promotions.

On the other hand, the regulation of auctions is simplified, making their processing faster and more economical.

Special mention deserves the inclusion of a Title dedicated to summary trials, which, due to their special characteristics, must be processed in a much more expeditious manner. Thus, we have that trials for the qualification of impediments to marriage, consignation in payment, matters related to contracts of transport and lodging, actions that have as their object the signing of a public instrument, trials for the collection of professional fees and civil liability, among others, could be processed in a summary manner to allow the parties to submit their differences to a judge who, in a short period and with a simplified procedure, decides the controversy.

It should be mentioned that the plaintiff may choose the summary route, the ordinary route, or, if applicable, the special route provided for in the current Code, the defendant being impeded from challenging the choice of any of them.

In this summary procedure, the parties must offer evidence precisely in the writings of complaint, answer, counterclaim, or answer to the latter. Immediately after, a hearing will be called in which the raised exceptions will be resolved, conciliation between the parties will be sought, and the offered evidence will be discharged, with the corresponding arguments being presented in the same hearing. Next, the judge will issue the judgment that is legally appropriate.

In another order of ideas, the initiative proposes that the processing of appeals be done in a brief term and in a more simplified manner, imparting speed to such resources without detriment to the guarantees of legal certainty.

Now it is intended, among other things, that when filing the appeal, grievances be expressed in the same writing, consequently extending the terms for the filing of said appeal.

Finally, justice of the peace must be an instrument that allows the resolution of controversies that, due to their amount or their own nature, can be resolved through agile, brief, and accessible procedures for all. In virtue of this, among other issues, the Initiative seeks to strengthen the principle of orality and speed in procedures that are pursued before justices of the peace, without prejudice to the rigor that must accompany every action of the administration of justice.

In this context, the aforementioned judges must issue judgments in a more formal manner, as occurs in the other procedures regulated by this Code, and not "as is known to be true," as currently happens, causing in multiple occasions various damages to individuals.

Organic Law of Nacional Financiera

We must advance not only in the field of norms. It is necessary to improve the professional quality of judges and magistrates and to equip the courts with quality technical and material elements. For this, the judicial system requires more resources. Also in this aspect, a step of extraordinary importance would be taken if this initiative is approved.

Our Political Constitution states that the Laws will establish the necessary means to guarantee the full independence of the tribunals. In congruence with this provision and with the increasingly greater autonomy that has been conferred to the organs and authorities of the Federal District, it is proposed to reform the Organic Law of Nacional Financiera with the object of eliminating the exclusivity that said legislation grants to that institution to act as a depository of titles, securities, or sums in cash that have to be made by or before the judicial authority of the Federal District.

This would allow such resources to be administered by the Superior Court of Justice of the Federal District, for the benefit of a more efficient administration of justice.

Commercial Code

The reforms proposed to this Code pursue the same ends as those described for the civil procedural legislation. Therefore, the great majority of the figures, terms, modifications, and additions contained in the procedural code for the Federal District are included in this project of reforms to the Commercial Code.

In addition, other important reforms are proposed, such as: expressly confirming that the supplementary application of this Code will be the local procedural laws of the place where the trial is held; incorporating more complete provisions regarding the preparatory means of the trial, to adapt such procedures to current dynamics; adding a norm that exempts the legalization procedure of public documents when there is a treaty or inter-institutional agreement that so provides.

It is also proposed to regulate in detail in case of challenge, falsity of a document, in order to clarify the situation and sanction, if applicable, the alleged responsible parties.

On the other hand, an essential chapter dedicated to the processing of appeals is added, which does not exist in the current text, and which contains the principles that regulate the proposed reforms and additions to the Civil Procedure Code for the Federal District.

General Law of Titles and Credit Operations

Reforms to the General Law of Titles and Credit Operations are submitted to the consideration of this Legislative Power, which aim to facilitate access to credit for merchants and entrepreneurs, contributing to the reduction of the differential between the interest rates paid for such financings and those granted by credit institutions when receiving deposits, as well as the proportion of guarantees, with respect to the amount of financing, which is usually required in these operations.

To this effect, it is necessary to establish a framework that provides legal certainty both to credit users and to those who facilitate financing, and to ensure an equitable relationship between the parties.

In order to achieve the foregoing, the use of the trust figure is proposed, whose use as collateral for credit granting mechanisms has not been generalized, because today it is costly.

With the object of reducing costs, it is allowed that in these trusts, the bank that grants the respective credit may act as the fiduciary institution. It should be noted that in the event of the alienation of assets, there will be no conflict of interest for said institution, as this will be carried out by a third party. For this reason, this initiative contemplates a procedure with clear and simple rules that equitably safeguard the interests of merchants and entrepreneurs and provide legal certainty to them and to those who grant them credits.

Civil Code for the Federal District in common matters, and for the entire Republic in federal matters

The Federal Government considers it fundamental to promote new mechanisms that contribute to simplifying the increase in credit resources, allowing more Mexicans to access decent housing with greater ease.

The growing housing demand in the Federal District caused, among other factors, by the high population growth rates of previous years, combined with constant migratory movements, has led to a high concentration of inhabitants in Mexico City. This problem requires innovative solutions that ensure their timely and adequate attention.

To achieve such purposes, it is indispensable to facilitate the regime for the assignment of mortgage credits. In this way, it is proposed to establish, by adding two paragraphs to article 2926 of the Civil Code and in a similar manner to other cases contemplated by said Code, that notification to the debtor, public deed, and registration in the Public Property Registry are not required to carry out said assignment.

The implementation of conditions that stimulate the development of financing forms such as the one intended to be carried out will help to better respond to the social claim for housing by the inhabitants of the Federal District.

Regardless of the foregoing, it has been considered appropriate to propose to that Honorable Senate Chamber a reform to article 750, fraction XIII of said Civil Code. This is due to the fact that, in the current text, railway rolling stock is considered -by a mere legal fiction- as an immovable property, despite the fact that by its nature said material is a movable property that can be transported from one place to another, as is the case with road vehicles, vessels, and aircraft. Furthermore, this legislation is the only one that grants such treatment to railway equipment.

This treatment makes it difficult to grant railway material as collateral to obtain financings, because for such effect a mortgage must be constituted, which is more costly. Additionally, in the specific case, the mortgage does not provide legal certainty to creditors, since due to the mobile nature of railway cars, it is feasible to register various guarantees on the same car in different States of the Republic, since public property registries are of a local nature.

All of this places the railway at a disadvantage compared to other means of transport, which can obtain financing under better conditions and with greater opportunity. Consequently, considering that it is a priority for the country to create the conditions that allow fostering investment in railways, and thereby promoting their modernization, it is deemed appropriate that the rolling stock of the same cease to be considered as immovable property.

For the aforementioned reasons and based on article 71, fraction I, of the Political Constitution of the United Mexican States, through the dignified channel of you, citizen Secretaries, I permit myself to submit to the consideration of the Honorable Congress of the Union, the present initiative of

STATEMENT OF REASONS
(Decree of June 24, 2002)

Development banking institutions have as their object to attend to those persons who, due to market imperfections, are not attended to by private financial intermediaries. In most cases, these are sectors and individuals who are not subjects of credit for financial intermediaries, due to cost reasons, level of risk, lack or insufficiency of guarantees, geographical reasons, adverse selection due to lack of experience, lack of credit history, among others.

These institutions are integrated into the coordination of a medium and long-term development policy directed by the Federal Government itself, oriented towards the channeling of financial resources to specific sectors and projects.

To fulfill this mandate and given the current highly dynamic and competitive environment, it is necessary to increase the operational capacity of development banking, as well as the efficiency in the services they offer, foster and strengthen financial intermediaries, and expand their coverage.

To achieve the foregoing, some modifications to various regulations are needed, as indicated below:

In the administrative sphere, the modernization and efficiency in the use of resources is sought. In this sense, it will correspond to the board of directors of each institution to approve the general budgets without having to go to various instances to obtain authorization, as long as they remain within the parameters of programmed spending, given that national credit societies do not use fiscal resources for their expenses and investments, and must observe the general norms in budget matters applicable to the concrete case.

With the aim of having greater capacity to act in response to the requirements of the different sectors served by development banking in the country and to face competition in the global environment in which they operate, it is necessary to direct the efforts of development banking to their substantive activities. For this, it requires adopting agile actions that allow it to make its acquisitions, hire services, leases, and works in a timely manner both in the country and abroad, for the correct functioning of said institutions, for which reason they will not be subject to the Law on Acquisitions, Leases, and Services of the Public Sector nor to the Law on Public Works and Related Services.

Notwithstanding the foregoing, this Decree records the need to establish the guidelines under which such activities will be carried out in compliance with what is provided in article 134 of the Constitution.

The board of directors will have additional powers in matters of budgets for expenses and investment, acquisitions, leases, services, public works, salaries, benefits, to make the reform consistent with administrative modernization. At all times, constitutional principles will be observed, where by rule the obligation to assign through public bidding in transparent processes will prevail, allowing each institution to obtain the best market conditions in terms of price, quality, financing, and opportunity. Likewise, it will be sought to ensure economy, efficiency, honesty, and impartiality in the respective processes.

Only in those cases where public bids are not suitable, they will be carried out through restricted invitation procedures or direct award, for which the board of directors itself, without departing from constitutional principles, will establish the bases, policies, and procedures that will regulate the contracts, agreements, orders, or accords that development banking concludes for its acquisitions, leases, services, and public works.

The administration body of the societies is granted the faculty to create salary and benefits committees and the comprehensive risk management committee. The first of them as a support body that will advise and propose to the board of directors of each institution, the terms and conditions under which the relationships between development banking institutions and their workers will be developed, according to market conditions and the possibilities of each development banking institution, in accordance with the sector, eliminating discretionary powers and providing greater legal certainty.

In risk management matters, the board of directors is authorized to create this type of committee, with the object that such risks are diversified and the maximum limits of direct and contingent liabilities are contained, in congruence with what various prudential provisions state.

The Ministry of Finance and Public Credit will establish global maximums for each institution to attend to its needs for current spending, physical investment, net debt levels, internal and external, net financing, and financial intermediation, with the object of controlling the impact of aggregate demand according to the established macroeconomic policy.

With the object of clearly establishing the competence of the Ministry of Finance and Public Credit to determine the characteristics of active, passive, and service operations and that of the Bank of Mexico, in the cases of passive operations that imply the collection of public resources, trusts, mandates, commissions, money market operations, as well as financial operations known as derivatives, a reform is incorporated in each organic law of the national credit societies in this sense, which seeks to clearly establish the scope of competence of each of the two institutions.

With the intention that development banking institutions only attend to the sectors corresponding to them according to their purpose and do not divert resources to specific sectors or persons or those belonging to groups with common interests, distinct from financial intermediaries, the board of directors of each institution will establish the limits for credit operations in this case.

With the purpose of avoiding the use of fiscal resources by development banking institutions to meet the guarantee granted to them by the Federal Government by virtue of the law, an obligation is incorporated for national credit societies to contribute resources to a trust whose purposes include supporting the fulfillment of their obligations derived from the capture they carry out from the general public, as well as contributing to the strengthening of the capital of said societies, in order to ensure their permanence in the medium and long term.

Better corporate practices are incorporated into the administration bodies of development banking, which aim to strengthen these decision-making bodies, since by granting greater powers to the board of directors, it is necessary at the same time to develop some measures that allow for better performance of its members.

In this sense, the figure of the independent director is incorporated, an appointment that must fall on persons who, due to their knowledge, experience, and professional prestige, are widely recognized; these directors will represent the "B" series of capital contribution certificates.

With the purpose that independent directors assume their responsibility, they will have no substitutes and in certain matters, their vote will be decisive, as some decisions must be qualified majorities determined by the vote of these directors.

It is important to highlight that independent directors must not have any link with the society that represents a conflict of interest, in addition to the confidentiality they must keep in matters that are debated within the respective collegiate body.

The reform also seeks to reaffirm the participation of development banking institutions through private financial institutions that assume total or partial risk of recovery of the support, notwithstanding that there are some exceptions in operations that, given their nature or special circumstances, must be attended to directly.

Undoubtedly, this reform implies greater freedom for development banking institutions, which will result in the optimization of resources. However, it is necessary to have information on the proposed goals, expenditure exercise, program compliance, information that will be delivered to the Federal Executive, through the Secretariat of Finance and Public Credit, which will also be sent to the Congress of the Union in an annex along with the Reports on the Economic Situation, Public Finances, and Public Debt.

For the above reasons, the Federal Executive under my charge, in the exercise of the power conferred by Article 71, Fraction I, of the Political Constitution of the United Mexican States, through that Honorable Chamber of Deputies, submits to the consideration of the Honorable Congress of the Union the following initiative.

EXPLANATION OF MOTIVES
(Decree of August 1, 2005)

On August 14, the Official Gazette of the Federation published the Decree of reform and additions to the Political Constitution of the United Mexican States in its articles 1, 2, 4, 18, and 115. From that date, the new legal framework for the protection, exercise, and respect for the rights and cultures of indigenous peoples in our country came into force.

With this reform, the Permanent Constituent Assembly took a historic, unprecedented step by recognizing the legal personality of indigenous communities, explicit social, economic, and cultural rights, and granting the highest legal value to their rights to self-determination and autonomy; as well as defining inescapable tasks for the Mexican State in favor of indigenous peoples and communities.

Conscious of the need to create favorable conditions to ensure the full application of the constitutional reform, in the Second Transitory Article of said Decree, the Legislator ordered the Congress of the Union and the various Legislatures of the federal entities to "make the adjustments to federal laws and local constitutions that are appropriate and regulate what is stipulated here."

This responds to the initiative now presented, in order to also inscribe Development Banking in the effort that different national institutions must make to contribute, from their respective areas of competence, to making the constitutional mandate a reality.

Inclusive, among the tasks and actions that the new Constitutional Article 2 in its Section "B" orders the State and that the different institutions of Development Banking can support, are the following:

"Promote the regional development of indigenous areas with the purpose of strengthening local economies and improving the living conditions of their peoples..." (Fraction I)

"Improve the conditions of indigenous communities and their spaces for coexistence and recreation, through actions that facilitate access to public and private financing for the construction and improvement of housing, as well as expanding the coverage of basic social services." (Fraction IV)

"Extend the communication network that allows the integration of communities, through the construction and expansion of communication and telecommunications routes..." (Fraction VI). And,

"Support productive activities and the sustainable development of indigenous communities through actions that allow them to achieve sufficiency of their economic income, the application of incentives for public and private investments that promote the creation of jobs, the incorporation of technologies to increase their own productive capacity, as well as to ensure equitable access to supply and marketing systems." (Fraction VII)

To that end, it is proposed to reform or add the respective organic laws of the BANRURAL System; of the National Bank of Public Works and Services; of Nacional Financiera and of the National Bank of Foreign Trade, such that, together, they facilitate indigenous communities' access to financing sources and, no less important, to the advisory, training, and commercial promotion systems offered by these banking institutions.

For the above and in order to give due compliance to what is provided in the new text of Article 2 of the Constitution, and in accordance with what is established in the Second Transitory Article of the Constitutional Reform Decree, we submit to the consideration of this Honorable Senate the following:

EXPLANATION OF MOTIVES
(Decree of May 6, 2009)

The business climate is disaggregated into a series of factors that make investment in a particular country attractive, such as the tax regime, productivity, security, the Rule of Law, deregulation, commercial links, and communication facilities.

Even with the level of insecurity, violence, and criminality in which we live in our country, to date, businessmen are still willing to continue investing and maintaining their investments, because the comparative advantages offered by Mexico due to its geostrategic location and the enormous potential of its human capital are proven.

Not without warning that we are regressing in the suitability of conditions for investment, because according to the business climate classification for the period 2006 to 2010 prepared by the analysis division of the Economist Group, Mexico slipped from position 40 to 42, which is headed by Denmark, followed by Finland, Canada, Singapore, Holland, Ireland, and the United Kingdom.

Among the most important factors for our country to qualify so low is the lack of financial instruments for the development of businesses in the medium and long term, in a business fabric of a little more than 4 million companies characterized by the preeminence of micro, small, and medium-sized enterprises that make up 99.8 percent of the total, which generate 79 percent of employment and contribute income equivalent to 23 percent of Gross Domestic Product, but whose life cycle is very short, because 75% of new Mexican companies close their operations barely after two years in the market, because in our country it is relatively easy to open small businesses, but the costs of access to labor and financing rise considerably for larger companies.

In addition, we must step up the pace, because what today represents an advantage, due to proximity to the largest economy in the world, can be reversed in the short term, if trends on the slowdown of the North American economy are confirmed, as has been pointed out by the International Monetary Fund in the report "World Economic Outlook 2007," where for every point of GDP that growth in the United States falls, Mexico will lose 0.4 points, unlike Latin America which has a lesser link with that country.

Although Mexico continues to capture foreign direct investment, it lacks quality, because it does not generate sufficient linkage with the productive sector of the economy nor is it destined to innovation and development projects.

Mexico can no longer detach itself from the impact that the economic slowdown in the US will have, but what it can do is strengthen its business climate to attract productive investments and speed up internal production.

Key to breaking this trend is development financing through a more stable national financial system, which provides better access to savings and investment sources, so that long and sustained growth occurs, allowing us to raise the welfare of the population and reduce poverty and inequality.

Venture capital as a source of financing for small and medium-sized enterprises has proven its effectiveness worldwide, where it has increasingly taken on greater relevance; in fact, in the last 5 years, venture capital investments grew on average 3.4% annually. Just in the year 2003 worldwide, 115 billion dollars were invested, a figure equivalent to 0.36% of world GDP. Nevertheless, the distribution of these investments has not been uniform. While 88% of resources are concentrated between North America and Western Europe, the remaining 12% is distributed in other countries. Latin America concentrates only 1% of the mentioned resources and among these, Mexico has 18%. Our country is lagging behind other Latin American countries and the venture capital resources that have been invested do not correspond to the size of its economy.

Since George Doriot founded the American Research and Development Corporation in the United States in 1946 and the Small Business Administration started the program to support investment in small businesses (Small Business Investment Companies) in 1958, the success of this instrument has been resounding in the main developed economies such as Japan, the United Kingdom, Germany, France, and in developing economies such as China, India, or Malaysia and particularly in Spain, where since 1986, 13 billion 421 million euros have been invested in a total of 3,381 companies.

The impact of Venture Capital on employment, investment, and savings obliges various governments to define a set of policies that stimulate the development of this sector so beneficial to the economy and the business fabric.

In our country, it is only in 2005, with the Reforms to the Securities Market Law, that conditions are given for the constitution of a venture capital market and it is then when the government decides to constitute the so-called Fund of Funds, as an investment instrument that would coalesce governmental efforts in a sector dominated by funds headquartered abroad such as Advent International Corporation, JP Morgan Partners, Darby Overseas Investments, and Carlyle Mexico Advisors, among others.

The business climate is strengthened with a solid venture capital market, because it is an investment of capital made for the launch, initial development, or expansion of a business, which provides equity capital to companies not listed on the stock exchange and can be used to develop new products or technologies, expand working capital, make acquisitions, or strengthen the balance sheet of companies, some of which have been Google, Skype, My Space, Intel, Hewlett Packard, and Federal Express.

With the object of integrating into a single effort the venture capital investments of the federal government, in March 2006, the Mexican Corporation of Venture Capital Investments, S.A. de C.V. was created, whose main partners are Nacional Financiera, with more than 50% of the investment, the Rural Sector Investment Capitalization Fund, the Foreign Trade Bank, and finally the National Bank of Public Works and Services.

The government administers the fund of funds through a corporation, which has the public sector as owner, but which will operate as a private company; this is feasible in virtue of the fact that it fits within the assumption of article 29 of the Federal Law of Parastatal Entities, not having the character of a parastatal entity of the Federal Public Administration because it is a commercial society in which national credit societies participate temporarily and in a majority form in its capital, in promotion operations.

This grants it enormous management freedom, avoiding the bureaucratization of its operations; however, there is a risk that discretion will take root in the Fund of Funds, and certain groups will be privileged, because to date, there is public knowledge of the first supports granted: the first support was 10.5 million dollars for Latin Idea of Humberto Zesati, (a fund of 300 million dollars oriented to technological projects), the second of 5 million was authorized for Clean Tech of Jean Paul Moscarela (a fund of 30 million dollars that supports energy projects such as wind cogeneration), another for 3 million was for Capital I, of Juan Carlos Braniff, (a fund of 15 million dollars, specialist in funding medium-sized housing developers) and finally to Nexus III of Luis Alberto Harvey and Arturo Saval, (a fund with 200 million dollars oriented to taking advantage of opportunities in the industry).

We know that the aforementioned Mexican Corporation of Venture Capital Investments only invests in funds with a minimum target capital of 12 million dollars, and its participation reaches up to 35 percent with a cap of 30 million dollars, that all its investments are sustained with a profitability approach and with administrators of proven experience and that it focuses on priority sectors such as automotive, agroindustry, electronics, education, software, chemistry, tourism, housing, aeronautics, commerce, health, and maquiladoras.

The question is the following: if there is no control body and it is not auditable by the Superior Audit Office of the Federation, what type of controls are in place to guarantee the proper orientation of the resources of this fund, how do we account for the correct application of them, and how do we make it so that more funds are formed that professionally direct venture capital?

Requesting the Federal Executive to expressly attribute the character of parastatal enterprise to the Corporation in accordance with the Federal Law of Parastatal Entities would seem contradictory, just when markets require certainty, through a professional and expeditious operation that releases investments based on market criteria and not bureaucratic proposals.

The international bet is for transparency and accountability that underpin the exercise of good governance everywhere; only with clear rules can it be verified that the public transcends organizations in favor of the common good, that is, if in the name of management autonomy, bureaucratic control is sacrificed, it is necessary that the Development Banking that operates this fund establish clear rules for the granting of support, in which users are given the possibility of knowing the amounts, requirements, deadlines, and conditions to be able to, on the one hand, operate a fund or propose projects subject to financial support, to strengthen the business climate and give certainty to the venture capital market.

However, management autonomy cannot constitute a blank check, due to the disastrous consequences that opacity causes to governmental efficiency and effectiveness, because beyond knowing why the Board of Directors is constituted by 4 government directors and how the 4 independent ones were selected, there is initially an overrepresentation of Nacional Financiera in this Board of Directors, by having two positions, one from Bancomext and one from NAFIN, which can negatively influence decision-making.

From Congress we have been advancing; we have already asked in this tribune that the President of the Republic name the General Director of Bancomext and avoid conflicts like the one we face.

In a highly unequal Mexico, we require a business climate with institutions and clear rules that contribute to reducing inequality gaps, to ending privileges for a few groups that tend to monopolize markets, in favor of a more competitive, strong, and integrated market, which, as has occurred in other latitudes, promotes development.

Therefore, and in merit of the above, I deem it appropriate to propose the following

EXPLANATION OF MOTIVES
(Decree of April 9, 2012)

In our country, at the federal level, in accordance with what is provided in article 80 of the Constitution of the Political Constitution of the United Mexican States, there is a Supreme Executive Power of the Union, which is deposited in a single individual whom we call President of the United Mexican States.

Article 90 of this same order provides that the Federal Public Administration will be Centralized and Parastatal in accordance with the Organic Law issued by Congress.

In this way, the Organic Law of the Federal Public Administration establishes the bases of the organization of the Federal Public Administration, centralized and parastatal.

According to this Law, the President of the Republic is assisted, in the exercise of its attributes and for the dispatch of administrative order business assigned to each of the State Secretariats and parastatal entities.

This Law states in its article 1, that the Centralized Public Administration is integrated by the Presidency of the Republic, the State Secretariats, the Administrative Departments, and the Legal Counsel of the Federal Executive.

On the other hand, decentralized organisms, state participation companies, national credit institutions, national auxiliary credit organizations, national insurance and surety institutions, and trusts make up the parastatal public administration.

Administrative centralization is the fundamental form in which public entities of an administrative nature are organized and its main quality is that centralized entities are related to each other by a constant hierarchical link. At the top of the centralized public administration is the President of the Republic and subordinate to him are all those lower public organs.

Currently, the Organic Law of the Federal Public Administration provides, in its article 26, that for the dispatch of administrative order matters, the Executive Power has the following Administrative dependencies:

Secretariat of the Interior.
Secretariat of Foreign Relations.
Secretariat of National Defense.
Secretariat of the Navy.
Secretariat of Public Security.
Secretariat of Finance and Public Credit.
Secretariat of Social Development.
Secretariat of Environment and Natural Resources.
Secretariat of Energy.
Secretariat of Economy.
Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food.
Secretariat of Communications and Transportation.
Secretariat of the Public Function.
Secretariat of Public Education.
Secretariat of Health.
Secretariat of Labor and Social Welfare.
Secretariat of Agrarian Reform.
Secretariat of Tourism.

Legal Counsel of the Federal Executive.

Throughout the history of our country, the federal public administration has been updated and transformed.
The organizational structure of public administration has evolved, such that the competencies of the administrative bodies that make it up have been redistributed or reassigned on several occasions.
Competence consists of a series of legal powers and obligations that legislation attributes to the organs of administration. This establishes the circumstances in which the organ is obligated to act or refrain from acting in a certain matter or area of administration, and determines the degree of action and the territorial surface in which the action of the organ must be circumscribed. And linked to competence is the designation received by each administrative organ, which establishes the attributes corresponding to each of these.

It is for this reason that the designation received by the organs of public administration must be consistent throughout our entire legal order. The lack of timely updating of the names of the dependencies in the different federal laws has had harmful consequences for the legal certainty that must prevail, both in inter-institutional relations and in the relationship of institutions with individuals.

In the conception of the economist, Douglass C. North, the function of institutions is to reduce uncertainty by providing a structure for daily life. Thanks to institutions, understood as rules and norms of coexistence, we can foresee the consequences of our conduct or the reactions of others and thus carry out human exchanges that constitute the subject of our daily life.

Institutions are mechanisms of social order and cooperation that order the behavior of a group of individuals through the elaboration and implementation of rules. It is thus, that institutions transcend human lives and intentions by identifying with the permanence of a social purpose: the giving order to society.

In any legal system, to be effective, not only must the normative assumption exist, but this must be consistent, clear, and explicit with reality to be applied, and to not create a difficulty in the sense of the provision itself.

In this way, it is necessary to keep updated the designation of the various dependencies of the Federal Public Administration in all laws and in the various legal instruments in which reference is made to them, since if this is not done, it promotes a lack of legal logic and certainty, not only by the simple designation of the dependency, but by the inconsistencies and possible contradictory effects when these entities do not respond promptly to the designations found in legal norms.

It is of great importance that at all times the legal security enshrined in articles 14 and 16 of the Political Constitution of the United Mexican States prevails in the relationship between government and governed.

The need for this legal security has been expressed in various jurisprudence theses that are transcribed below:

a. Jurisprudence Thesis P./J 10/94 of the Plenary Tribunal of the Supreme Court of Justice of the Nation, published in the Gazette of the Judicial Seminar of the Federation, Number 77, May 1994, page 12, heading:
"Competence, its justification is an essential requirement of the authority's act":
".... the guarantee of justification enshrined in article 16 of the Political Constitution of the United Mexican States, implies the idea of accuracy and precision in the citation of legal norms, that authorize the administrative authority to issue the act of annoyance in question, by attending to the value legally protected by the constitutional requirement, which is the possibility of granting certainty and legal security to the individual in front of the acts of authorities that affect or infringe their legal interest and, therefore, ensure the prerogative of their defense, before an act that does not meet the necessary legal requirements...".

b. Contradiction of Theses 94/2000-SS. Between those supported by the Third Collegiate Tribunal in Administrative Matter of the Sixth Circuit and the First and Fourth Collegiate Tribunals in Administrative Matter, both of the First Circuit. October 26, 2001. Unanimity of four votes. Absent: Juan Díaz Romero.
Relator Guillermo I. Ortiz Mayagoitia. Secretary: Lourdes Margarita García Galicia. Jurisprudence Thesis 57/2001. Approved by the Second Chamber of this High Tribunal, in private session on the thirty-first of October two thousand one, with the heading: "Administrative authorities. They are obligated to cite the legal provisions that justify their competence":
"Article 16 of the Federal Constitution prescribes that acts of annoyance, to be legal, must come from competent authority and meet the essential formalities that give them legal efficacy, which means that every act of authority must be issued by who is legitimized for it, expressed in the act itself of annoyance, the device, agreement or Decree that grants such legitimation, since if not otherwise, the governed is left in a state of defenselessness as they cannot examine if the action of the issuing authority is within the respective competence scope".

c. Appendix to the Judicial Seminary of the Federation 1917-1995, Volume VI, Common Matter, page 111, thesis 165
with heading: "Competence. Its justification is an essential requirement of the authority's act." Subjects:
Constitutional-Administrative, Type: Jurisprudence by repetition of criteria.
"...It is indispensable that both the attributes of the authority, as well as its competence and its name or identification as a moral entity remain clear and expressly contemplated in the norms that give it life and legal attributes for greater security and certainty of the governed..."

However, there are still gaps in the articles of many laws of a federal nature, in which reference is still given, validity and responsibility to dependencies and institutions that no longer exist; or to institutions that have changed their name and even their functions.

The primary legal framework must be adapted to the social and political conditions of the country and is a task of our legislative work, to give certainty and legal security to the citizen through the update of current legislation.

In addition, on November 13, 2007, the Decree by which articles 29, 73, 90, 92, 93, 95, 110 and 111 of the Political Constitution of the United Mexican States are reformed was published in the Official Journal of the Federation, through which the names of some State Secretariats were updated and Administrative Departments, which were mentioned in our Magna Carta, were eliminated.

The second transitional article of said Decree provided as follows: "The Congress of the Union at the beginning of the validity of this Decree will make the corresponding updates to federal legislation, in accordance with what is stipulated in this Decree. The states and the Federal District must adapt their laws in accordance with the provisions of this Decree no later than six months after its publication in the Official Journal of the Federation".

It is thus, that the purpose of the present initiative is to follow up and continue the task of the Mexican Congress, to update in all Federal Laws the current names of all State Secretariats that are cited in them.

Finally, it is important that the technological advances of our time become part of the tools that allow us to improve legislative work and therefore, in order that in the future any change in the name of state secretariats can be reflected in the respective laws, it is attached with this initiative in an electronic device, a database of federal laws in which in its articles reference is made to various institutions and dependencies, updated its names including the changes included in this initiative. This database will allow that the updates of the respective laws can be made, when for some reason it is decided to change the name of the State Secretariats, thus giving the legal certainty that is required to have in all laws.

For all the above explained and founded, the following is submitted to the consideration of this Sovereignty:

REFERENCES
1) Reformed by Decree published in the Official Journal of the Federation on May 24, 1996.
2) Reformed by Decree published in the Official Journal of the Federation on June 24, 2002.
3) Added by Decree published in the Official Journal of the Federation on June 24, 2002.
4) Repealed by Decree published in the Official Journal of the Federation on June 24, 2002.
5) Added by Decree published in the Official Journal of the Federation on August 1, 2005.
6) Reformed by Decree published in the Official Journal of the Federation on May 6, 2009.
7) Reformed by Decree published in the Official Journal of the Federation on April 9, 1012.
8) Reformed by Article Thirteen of the Decree published in the Official Journal of the Federation
on January 10, 2014.
9) Added by Article Thirteen of the Decree published in the Official Journal of the Federation
on January 10, 2014.

ORGANIC LAW OF NACIONAL FINANCIERA