Organic Law of the National Bank of Public Works and Public Services

ORGANIC LAW OF THE NATIONAL BANK OF PUBLIC WORKS AND PUBLIC SERVICES Published in the Official Gazette of the Federation on January 20, 1986.
Updated with reforms published in the same Gazette on June 24, 2002; August 1, 2005; February 1, 2008; April 9, 2012 and January 10, 2014

ORGANIC LAW OF THE NATIONAL BANK OF PUBLIC WORKS AND PUBLIC SERVICES INDEX
Chapter One
Of the Society, Name, Object and Domicile
Chapter Two
Objectives and Operations
Chapter Three
Social Capital
Chapter Four
Administration and Oversight
Chapter Five
General Provisions
Transitory Articles
Statement of Motives
References

ORGANIC LAW OF THE NATIONAL BANK OF PUBLIC WORKS AND PUBLIC SERVICES
CHAPTER ONE
Of the Society, Name, Object and Domicile
Article 1. This Law governs the National Bank of Public Works and Public Services, National Credit Society, a development banking institution, with its own legal personality and assets.
Article 2. The Society, in its capacity as a development bank, will provide the public service of banking and credit subject to the objectives and priorities of the National Development Plan, and especially of the National Development Financing Program, in accordance with sectoral and regional programs and state and municipal plans, to promote and finance the activities and sectors entrusted to it in this Law.
(7) Article 3. The National Bank of Public Works and Public Services, as a development banking institution, shall have as its object to finance or refinance projects related directly or indirectly to public or private investment in infrastructure and public services, as well as with the same operations to contribute to the institutional strengthening of the Federal, state and municipal governments, with the purpose of contributing to the sustainable development of the country. (1) The operation and functioning of the Institution shall be carried out in compliance with the applicable legal framework and sound banking practices and usages, seeking to achieve within the sectors entrusted with providing the public service of banking and credit, the general objectives indicated in Article 4 of the Credit Institutions Law.
Article 4. The domicile of the National Bank of Public Works and Public Services, National Credit Society, development banking institution, shall be that established in its Organic Regulations; it may establish or close branches or agencies or any other type of office and appoint correspondents, in the country or abroad, with prior authorization from the Ministry of Finance and Public Credit.
Article 5. The duration of the Society shall be indefinite.
CHAPTER TWO
Objectives and Operations
Article 6. The Society, in order to ensure the efficiency and competitiveness of the sectors entrusted in the exercise of its object, shall be authorized to:
(1) I. Contribute within the scope of its competence, to the strengthening of the federal pact and of free municipalities in accordance with Article 115 of the Constitution, to achieve balanced development of the country and decentralization of national life with the efficient and timely attention of regionally or sectorally priority activities; as well as to promote private investment and financing in infrastructure and public services; (1) II. Promote and finance the provision of infrastructure, public services, urban equipment, as well as modernization and institutional strengthening in States and Municipalities; (1) III. Finance and provide technical assistance to municipalities for the formulation, administration and execution of their urban development plans and for the creation and administration of territorial and ecological reserves, as well as to structure and coordinate investment projects;

(4) III Bis.- Promote financing programs to expand the coverage of public services and generate the necessary productive infrastructure to promote regional development of indigenous zones; (1) IV. Grant technical and financial assistance for the better use of credit resources and the development of local administrations, finance infrastructure and public services projects. The Society shall not administer public works and services carried out with its financing;
V. Support housing programs and the rational use of urban land;
VI. Finance the development of the communications and transport sectors; and
VII. Promote joint financing and assistance actions with other credit institutions, development funds, trusts, credit auxiliary organizations and with the social and private sectors.
Article 7. To comply with the objectives referred to in Articles 3 and 6 above, the Society may:
(7) I. Carry out the operations and provide the services referred to in Article 46 of the Credit Institutions Law.
(7) The operations indicated in the aforementioned Article 46, fractions I and II, shall be carried out in accordance with Article 47 of said legislation;
II. Issue development bank bonds. These titles shall seek to foster the development of the capital market and institutional investment, shall be susceptible to placement among the general investing public, in which case the respective legal provisions shall apply to them;
III. Grant credits to the subjects included in the scopes indicated in Article 3 of this Law;
IV. Take charge of or guarantee the issuance of securities and credit titles in series, issued or guaranteed by the dependencies and entities of the Federal Public Administration, of the Federal District, of the states and municipalities and those issued by the Society itself in the exercise of its fiduciary attributes, with prior authorization from the Ministry of Finance and Public Credit;
V. Grant guarantees and, where applicable, grant financing to Mexican companies for the elaboration of projects or the execution of public works abroad;
(7) VI. Grant sureties and guarantees;
VII. Promote and provide technical assistance for the identification, formulation and execution of projects of the credit subjects operating in the sectors entrusted to the Institution;
VIII. Contract credits whose resources shall be channeled to the sectors, in accordance with applicable legal provisions;
(1) IX. It may act at the request of the governments of the Federal District, of the States and Municipalities, as well as of their respective parastatal and paramunicipal entities, as a financial agent or as a technical advisor in the planning, financing and execution of programs, projects and public service works or works of social interest, related to the object of the Society;

(1) X. Temporarily participate in the social capital of companies linked to the object referred to in Article 3 of this Law, in accordance with the parameters established in the Organic Regulations of the Society; (8) X Bis. Carry out the investments provided for in Articles 75, 88 and 89 of the Credit Institutions Law; (2) XI. Guarantee third-party obligations, either through particular operations or through massive guarantee programs, without the limitations provided for in Article 46 fraction VIII of the Credit Institutions Law being applicable, and (2) XII. The other analogous and related activities to its objectives in the terms that the Ministry of Finance and Public Credit shall indicate for this effect, including those of financial agent of the Federal Government, in accordance with applicable legal provisions.
Article 8. The credits granted to the federative entities and to the municipalities and their respective parastatal and paramunicipal entities, as well as to the organizations and credit subjects of the sectors corresponding to its social object, must satisfy the requirements that are indicated, for each case, in the Organic Regulations of the Society or in the agreements of the Board of Directors.
(7) Article 9. In the 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.
(1) Article 10. 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 the collection of resources from the public 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 capacity as a development bank in this Law. (1) It corresponds to the Bank of Mexico, in accordance with its Law, to regulate through general provisions the characteristics of passive operations that imply the collection of resources from the public, trusts, mandates and commissions, operations in the money market, as well as financial operations known as derivatives that the Society enters into.
Article 11. The Federal Government shall respond at all times, for the passive operations contracted by the National Bank of Public Works and Public Services, National Credit Society, Development Banking Institution:
I. With national natural or legal persons; and
II. With foreign private, governmental and intergovernmental institutions.
CHAPTER THREE
Social Capital
Article 12. The social capital of the National Bank of Public Works and Public Services, National Credit Society, development banking institution, 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, shall be issued in a title that shall not carry coupons, which shall be non-transferable and at no time may change its nature or the rights it confers to the Federal Government itself.

Series "B" may be subscribed by the Federal Government, by the governments of the Federative Entities and of the municipalities and by Mexican natural and legal persons.
The Ministry of Finance and Public Credit may authorize entities of the Federal Public Administration and of the governments of the federative entities and municipalities to acquire certificates of the aforementioned series "B" in a proportion greater than that established in Article 15 of the Law Regulating the Public Service of Banking and Credit.
Article 13. The net capital referred to in Article 34 of the Law Regulating the Public Service of Banking and Credit shall be that established by the Ministry of Finance and Public Credit, hearing the opinion of the Bank of Mexico and of the National Banking and Insurance Commission.
Article 14. At no time may foreign natural or legal persons, 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 what is provided by 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 National Bank of Public Works and Public Services, National Credit Society, development banking institution, shall be entrusted to a Board of Directors and a General Director, in their respective spheres of competence.
(5) Article 17. The Board of Directors shall be composed of fourteen counselors designated as follows:
(1) I. Seven counselors shall represent series "A" of equity contribution certificates, who shall be:
a) The Secretary of Finance and Public Credit, who shall preside over the Board of Directors.
(7) b) The heads of the Secretariats of Social Development; of Tourism; of Communications and Transport; the Undersecretary of Finance and Public Credit; the Undersecretary of Expenditures, and a representative designated by the Governor of the Bank of Mexico within the 3 upper hierarchical levels of the central institute.
(1) The substitutes for the aforementioned counselors shall preferably be public servants of the immediately lower level.
(7) In the absences of the Secretary of Finance and Public Credit, the Undersecretary of Finance and Public Credit shall have the status 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 status of president, and in the absence of all the aforementioned, whoever the present counselors of series "A" designate among the counselors of series "A". (7) II. Five counselors of series "B" of equity contribution certificates, represented by three Governors or two of these and the Head of Government of the Federal District and two Municipal Presidents, who shall be designated among the Governments of the States and Municipalities.

(5) III. Two external counselors of series "B" designated by the Federal Executive, through the Ministry of Finance and Public Credit, who shall have the status of independent counselors. The appointment of independent counselors must fall on persons of Mexican nationality who, due to their knowledge, honorability, professional prestige and experience, are widely recognized.
(2) The Board of Directors may invite to its sessions persons whose activities are related to the object of the Society.
(2) In the agenda of the Board of Directors sessions, the matters to be addressed must be listed and general matters shall not be included.
(7) Article 18. The Board of Directors shall meet at least quarterly and shall validly sit with the attendance of six or more counselors, 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 counselors present, the President having a casting vote in case of a tie.
(2) The independent counselor shall have no substitute and must attend at least seventy percent of the sessions convened in a fiscal year and in case of failure, another may be appointed with the same characteristics in their place, provided that the absences are not justified in the judgment of the Board of Directors.
Article 19. The following may not be counselors:
(1) I. Persons who find themselves in the cases indicated in the penultimate paragraph of Article 41 of the Credit Institutions Law;
II. Two or more persons who have, between themselves, kinship up to the third degree by consanguinity or affinity.
If any of the designated counselors were to find themselves included, during the exercise of their office, in any of the above situations, they shall be replaced by their substitute for the entire time the impediment lasts and no appointment of the principal counselor is made.
(2) III. Additionally, the independent counselor must not have:
(2) a) Labor link or bond with the Society;
(2) b) Significant patrimonial link and/or labor link with a natural or legal person who is a creditor, debtor, client or supplier of the Society; (2) c) Conflict of interest with the Society, being clients, suppliers, debtors, creditors, important or of any other nature, and (2) d) The 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. (2) Counselors 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 regarding 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 Council shall direct the Society in accordance with what is provided by Article 20 and other related provisions of the Law Regulating the Public Service of Banking and Credit.
The Board of Directors may agree on the carrying out of operations inherent to the object of the Society.
Agreements that it may issue regarding the operations provided for in fractions VI and XI of Article 30 of the Law Regulating the Public Service of Banking and Credit must consider the proposal of the General Director.
Article 21. The following shall also be powers of the Board of Directors:
I. Approve the Annual Activities Report presented by the General Director; and
II. Approve the other specific programs and internal regulations of the society, presented by the General Director, in order to submit them to the authorization of the Ministry of Finance and Public Credit.
(2) III. Issue the norms and criteria to which the elaboration 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 be made during the exercise, once the global amounts of these concepts have been authorized by the Ministry of Finance and Public Credit, and (7) IV. 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 organizational structure, salary scales and benefits, salary 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; promotion and retirement policies; selection, recruitment and training guidelines; separation criteria; and the other economic and social security benefits established for the benefit of public servants working in the Society.
Article 22. The General Director shall be designated by the Federal Executive through the Secretary of Finance and Public Credit, such appointment falling on persons who meet the requirements established in Article 24 of the Law Regulating the Banking Service.
Article 23. The General Director shall be in charge of the administration and legal representation of the National Bank of Public Works and Public Services, National Credit Society, development banking institution, without prejudice to the attributes corresponding to the Board of Directors, for which purpose he shall have the following powers and functions:
(1) I. In the exercise of his legal representation attributes, he may celebrate or grant any type of acts and documents inherent to the object of the Society. He shall have for this purpose 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, and not limiting manner, he may issue, endorse and negotiate credit titles, file complaints and grant forgiveness, exercise and withdraw from judicial actions, including in the amparo trial; commit to arbitration and settle, grant general and special powers with all the faculties that pertain to him, even those that require a special clause, substitute them, revoke them and grant substitution faculties to attorneys, obtaining express authorization from the Board of Directors when it comes to granting general powers for acts of ownership; (8) I Bis. Inform the Ministry, prior to the authorization of the corresponding instances, of the operations that could be linked to the object of the other development banking institutions;

II. Execute the resolutions of the Board of Directors;
III. Carry the social signature;
IV. Act as General Fiduciary Delegate;
V. Those indicated in the Organic Regulations; and
VI. Those delegated by the Board of Directors.
(7) VII. Decide on the designation and hiring of 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 fiduciary delegates; administer personnel as a whole, and establish and organize the offices of the institution; (2) VIII. Authorize the publication of the institution's monthly balances, in accordance with the bases agreed by the Board of Directors, and (2) IX. Participate in the sessions of the Board of Directors with voice, but without vote. (7) Article 24. The oversight 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. (2) Article 24 bis. Causes for removal of series "B" counselors and independent counselors are:
(2) I. Mental incapacity, as well as physical incapacity that prevents the correct exercise of their functions for more than six months; (2) II. Not complying with the agreements of the Board of Directors or acting deliberately in excess or defect of their attributes; (2) III. Using, for their own benefit or that of third parties, the confidential information they possess by reason of their office, as well as disclosing said information without the authorization of the Board of Directors, and (2) IV. Knowingly submitting false information to the consideration of the Board of Directors. (2) In addition to the causes for removal indicated in this provision, series "A" counselors and the General Director shall be removed from their office when their responsibility is determined by a final resolution issued by a competent authority, by being in any of the situations contained in the Federal Law of Administrative Responsibilities of Public Servants. (3) Article 25. Repealed.
Article 26. Counselors, the General Director, directors, deputy directors, managers and fiduciary delegates of the Society shall only be obliged 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 indicated by the respective authorities.
CHAPTER FIVE
General Provisions

Article 27. The Ministry of Finance and Public Credit shall interpret this Law for administrative purposes and may issue the complementary provisions required for its application.

Article 28. The operations and services of the Corporation shall be governed by the provisions of this Law and, subsidiarily, by the Regulatory Law of the Public Service of Banking and Credit, by the Organic Law of the Bank of Mexico, and by other applicable legal provisions.

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

(1) The modalities in the allocation of resources shall be authorized by the Ministry of Finance and Public Credit, in accordance with the terms of Article 31 of the Credit Institutions Law; which shall seek the best use and most appropriate channeling of the institution's resources within the framework of the management autonomy required for its effective functioning in accordance with applicable legal provisions.

Article 30. With prior authorization from the Ministry of Finance and Public Credit, the Corporation must establish the reserves and funds necessary for the proper fulfillment of the object entrusted to it by this Law. The amounts that have been transferred to such reserves and funds shall not be considered operating surplus.

Once the amount of the surplus is determined and the amount corresponding to the respective tax and to the workers' participation in the institution's profits is separated, the balance shall be applied in the terms provided by the Organic Regulations.

(2) Article 31. The Corporation shall grant its financing through private financial institutions that assume partial or total risk of recovery of these supports.

(2) The provisions of the preceding paragraph shall not apply to the following operations:

(2) I. Shareholder investment and investments in the money market;

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

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

(2) IV. Operations carried out with the Federal Government, entities of the para-state sector, federative entities, and municipalities;

(2) 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 para-state and paramunicipal entities.

(2) The financing referred to in this section may be granted provided that they are projects related to its object in a majority manner.

(7) Article 32. The Corporation shall have a Human Resources and Institutional Development Committee, which shall be composed as follows:

(7) 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;

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

(7) The independent councilor;

(7) The General Director of the Corporation, and

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

(7) The General Director of the Corporation shall abstain from participating in Committee sessions that have the purpose of issuing opinions or recommendations regarding their salary, economic benefits, and social security.

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

(7) The Ministry of Finance and Public Credit shall establish criteria regarding occupational structure, salary movements, extraordinary allowances, and benefits, which must be observed by the Committee. Likewise, the Corporation shall provide the aforementioned Ministry with the information it requests.

(7) This Committee shall meet at the request of the General Director of the Corporation, who shall send the respective summons to its members, establishing the agenda, as well as the place and date for the holding of the session. Its decisions shall be taken by majority vote. 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.

(7) Except for the independent councilor and the professional with experience in the human resources area, 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 the level of General Director.

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

(2) Article 33. The Corporation shall establish State Advisory Councils, which shall be composed of at least the following persons: two public servants of the Corporation, designated by its General Director, from among whom the one with the highest hierarchy or seniority shall have the character of president of the respective advisory council; a public servant who represents the federative entity in question, designated by the Head of the Executive of the corresponding State; a person who represents the municipalities that make up said entity designated by the Head of the State Executive; as well as three representatives of the sectors to which the Corporation is directed, who shall be designated by the guild, association, or umbrella organization within the entity, of the sector each one of them represents.

(2) The State Advisory Councils shall have the following powers:

(2) I. To cooperate in the development of promotion programs for the sectors to which the Corporation is directed, as well as for the financial intermediaries that participate in the achievement of these programs;

(2) II. To make proposals that allow improving the quality of the products and services offered by the Corporation;

(2) III. To detect business areas within the federative entity in question, susceptible of support and financing by the Corporation;

(2) IV. To cooperate within the scope of their competence in the dissemination and promotion of the products and services offered by the Corporation, within the sectors to which it is directed;

(2) V. To receive information on credit placement figures, at the state and municipal level;

(2) VI. To advise on financing projects, regional and state development plans, and regarding the economic outlook of the Corporation;

(2) VII. To advise on the main projects of the Corporation;

(2) VIII. To create, when they consider it necessary, Regional Advisory Committees within the federative entity in question, in order to attend to the specific needs of the regions and municipalities that make it up, and

(2) IX. Those others conferred upon them by the Board of Directors of the Corporation.

(2) The State Advisory Councils shall have a secretary who must be chosen from among the councilors themselves, who shall carry out the corresponding designation through the voting process. The secretary shall be in charge of drawing up the minutes of the sessions, which shall be signed by those attending them.

(2) The positions of president and secretary shall last for one year counted from the date on which each is designated.

(2) The State Advisory Councils shall meet in ordinary form at least bimonthly or in extraordinary form if so required.

(2) The summonses and sessions of the State Advisory Councils, as well as the other corporate matters thereof, shall be adjusted to what is established for the Board of Directors of the Corporation.

(2) Article 34. The Corporation shall have a National Advisory Council composed of the 31 governors of the States of the Mexican Republic and the Head of Government of the Federal District, which shall have the object of proposing to the Board of Directors, through the General Director of the Corporation, financing projects and regional and state development plans, as well as knowing the results and compliance of the financial program carried out by the Corporation in the immediate previous exercise.

For such purposes, the General Director of the Corporation shall present to the National Advisory Council, in session, the reference information, within one hundred and twenty days following the closing of each exercise.

(2) The National Advisory Council shall have a president and a secretary who shall be elected from among its members, through the voting process. The secretary shall be in charge of drawing up the minutes of the sessions, which shall be signed by those attending them.

(2) The positions of president and secretary shall last for one year counted from the date on which each is designated.

(2) The summonses and sessions of the National Advisory Council, as well as the other corporate matters thereof, shall be adjusted to what is established for the Board of Directors of the Corporation.

(8) Article 35.- The Corporation 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 such persons carry out in the exercise of the functions entrusted to them by law and in accordance with the guidelines issued for such purpose by the Ministry of Finance and Public Credit.

(8) 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 Corporation, provided that it concerns acts carried out in the performance of their functions or activities in service of the Corporation.

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

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

TRANSITORY PROVISIONS
(Decree by which the Organic Law of the National Bank of Works and Public Services is issued, published in the Official Gazette of the Federation on January 20, 1986)

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

SECOND ARTICLE. This Law repeals the Organic Law of the National Bank of Works and Public Services, S.A. of December 27, 1980, published in the Official Gazette of the Federation on December 31 of the same year.

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

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

FIFTH ARTICLE. The corporate domicile of the National Bank of Works and Public Services, National Credit Corporation, development banking institution, shall be Mexico City, Federal District, until such time as the Organic Regulations referred to in the preceding Article are issued.

SIXTH ARTICLE. The credit titles that the institution withdraws from the market for their normal or early amortization shall be immediately and undoubtedly cancelled and incinerated.

Mexico, D.F., December 21, 1985. - Fernando Ortiz Arana, Dip. President.- Socorro Díaz Palacios, Sen. President.- Rebeca Arenas Martínez, Dip. Secretary.- Guillermo Mercado Romero.- Sen. Secretary.- Signatures.

In compliance with what is provided by fraction I of Article 89 of the Political Constitution of the United Mexican States and for its proper publication and observance, I issue this Decree in the residence of the Federal Executive Power, in Mexico City, Federal District, on the twenty-third day of the month of December of one thousand nine hundred and eighty-five.- Miguel de la Madrid H.- Signature.- The Secretary of Governance, Manuel Bartlett D.- Signature.- P.A. of the Secretary of Finance and Public Credit, the Acting Undersecretary of the Office, Francisco Suárez Dávila.- Signature.- The Secretary of the General Comptroller of the Federation, Francisco Rojas Gutiérrez.- Signature.- The Secretary of Communications and Transportation, Daniel Díaz Díaz.- Signature.- The Secretary of Urban Development and Ecology, Guillermo Carrillo Arena.- Signature.- The Secretary of Tourism, Antonio Enríquez Savigñac.- Signature.

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

FIRST ARTICLE.- This Decree shall enter into force the day following 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 establish 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 current General Conditions of Work, until such time as the new ones are issued and they enter into force.

FOURTH ARTICLE. All provisions that oppose the laws reformed, added to, 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 reformed, added to, 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 operation 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 operation within 60 business days following the date on which this Decree enters into force.

EIGHTH ARTICLE. With respect to the modification to Article 7 of the Organic Law of Nacional Financiera, the references contained in legal instruments 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 cash sums, titles, or securities that are seized by the judicial or administrative authorities of the Federation and those seized by the administrative authorities of the Federal District, shall be constituted in Nacional Financiera, National Credit Corporation, shall be understood that the same may be constituted in the national credit corporations, development banking institutions that are authorized by law for such purpose.

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

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

In compliance with what is provided by fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper 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 Governance, Santiago Creel Miranda.- Signature.

TRANSITORY PROVISIONS
(Decree by which various articles of the organic laws of Development Banking are reformed and added to, 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 rendered without effect.

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

In compliance with what is provided by fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper 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 Governance, Santiago Creel Miranda.- Signature.

TRANSITORY PROVISIONS
(Decree by which various provisions of the Credit Institutions Law, the General Law of Credit Titles and Credit Operations, and the Organic Law of the National Bank of Works and Public Services are reformed, added to, and repealed, published in the Official Gazette of the Federation on February 1, 2008)

FIRST ARTICLE.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, except for what is provided in the Ninth Transitory Article of this Decree.

SECOND ARTICLE.- In terms of Articles 7 and 28 of the Credit Institutions Law reformed by virtue of this Decree and the first paragraph of its Ninth Transitory Article, it shall correspond to the National Banking and Securities Commission, in substitution of the Ministry of Finance and Public Credit, to exercise the power to revoke those authorizations for the establishment in national territory of representation offices of foreign financial entities or for the organization and operation of multiple banking institutions that have been granted prior to the entry into force of this same Decree, in the event that such offices or institutions incur in the respective causes referred to in those same articles.

ARTICLE THREE.- Credit institutions that have entered into transactions with the persons referred to in fraction VI of Article 73 of the Credit Institutions Law, and that exceed the maximum limits referred to in said Article, must report them to the Vice Presidency of the National Banking and Securities Commission in charge of their supervision, no later than within thirty business days following the date of entry into force of this Decree, without which they may not increase them in the amount or limit established in Article 73 Bis, unless they derive from the capitalization of interest.

ARTICLE FOUR.- Multiple banking institutions must have the minimum capital referred to in Article 19 of the Credit Institutions Law that is amended in accordance with this Decree, no later than December 31, 2007. Until then, they must have the minimum capital made known by the National Banking and Securities Commission in the last publication in the Official Journal of the Federation, in terms of the applicable provisions prior to this Decree.

ARTICLE FIVE.- Multiple banking institutions that maintain amounts of available credit and have irrevocable credit opening lines in favor of related persons, will have a term of one hundred eighty natural days from the entry into force of this Decree to comply with what is provided in the seventh paragraph of Article 73 Bis of this Law. The amount of the credit lines that said institutions have granted prior to the entry into force of this Decree, which exceeds the limit provided in terms of the seventh paragraph of Article 73 Bis contained in Article One of this Decree, in no case may be increased.

ARTICLE SIX.- Until the Secretariat of Finance and Public Credit, the Bank of Mexico, and the National Banking and Securities Commission issue the general provisions referred to in the reforms contained in this Decree, those issued prior to its validity will continue to be applied in the corresponding matters, insofar as they do not oppose this Decree.
When the provisions referred to in this Article are issued, those that they replace or that are repealed will be expressly indicated.

ARTICLE SEVEN.- Without prejudice to what is provided in the "Decree by which various provisions of the General Law of Titles and Credit Operations, General Law of Organizations and Auxiliary Credit Activities, Credit Institutions Law, General Law of Insurance Mutual Institutions and Societies, Federal Law of Surety Institutions, Law to Regulate Financial Groupings, Popular Savings and Credit Law, Foreign Investment Law, Income Tax Law, Value Added Tax Law and the Federal Tax Code", published in the Official Journal of the Federation on July 18, 2006, the limited object financial societies referred to in fraction IV of Article 103 of the Credit Institutions Law will be subject to the following:

I. The authorizations to organize and operate as a limited object financial society that the Secretariat of Finance and Public Credit has granted will remain valid until the date of entry into force indicated in the fifth transitory article of the Decree referred to in the first paragraph of this transitory article, so that, on that same date, the aforementioned authorizations will become void by operation of law. Without prejudice to the foregoing, during the period between the date of entry into force of this Decree and that indicated in the fifth transitory article of the aforementioned Decree, the Secretariat of Finance and Public Credit, after hearing the limited object financial society in question, may revoke the authorization granted to it in terms of fraction IV of Article 103 of the Credit Institutions Law when said society is in any of the following situations:

a) It does not begin operations within the term of ninety days counted from the granting of the authorization; b) It does not have a minimum capital equivalent to that which, for said societies, the Secretariat of Finance and Public Credit makes known through general provisions; c) It carries out any of the operations or activities prohibited by the rules referred to in the third paragraph of Article 103 of the Credit Institutions Law; d) Its accounting and records do not comply with the applicable provisions; e) In the celebration of its operations, it does not comply with the Credit Institutions Law and other applicable provisions; f) It incurs a direct violation of the Law, the rules, or the authorization issued by the Secretariat of Finance and Public Credit by not adequately fulfilling its corporate purpose or by not granting credits for the activity or sector indicated in the authorization granted to it, for a period greater than one year; g) It is dissolved, enters a state of liquidation or commercial bankruptcy, or h) If the shareholders, in an extraordinary general assembly, resolve to request it. When, by virtue of the inspection and surveillance carried out by the National Banking and Securities Commission, it is found that the operations of some limited object financial society do not comply with the applicable provisions issued by the Secretariat of Finance and Public Credit, the Bank of Mexico, or the National Banking and Securities Commission, the latter will dictate the necessary measures to normalize them and will set a term for such effect that will not exceed ninety natural days from the notification of said measures. If, after said term has elapsed, the limited object financial society has not regularized the operations in question, the Secretariat of Finance and Public Credit may revoke the authorization. The revocation for the causes indicated in letters a) to f) of this fraction will put the limited object financial societies in a state of dissolution and liquidation in terms of the provisions of the General Law of Commercial Societies.

II. In accordance with what is provided in the eighth transitory article of the Decree cited in the first paragraph of this Article, limited object financial societies in which patrimonial links are maintained will be subject, as long as they maintain the status of limited object financial societies, to what is provided for credit institutions in Articles 4, fractions I to VI, and 6 of the Law of the National Banking and Securities Commission, and 24 Bis, 49, 50, 51, 65, 66, 67, 68, 69, 70, 73, 73 Bis, 73 Bis 1, 76, 93, 99, 101, 102, 115 and 115 Bis of the Credit Institutions Law, as well as the provisions that, under Article 103 of the same legal order, have been or will be issued by the Secretariat of Finance and Public Credit and the Bank of Mexico.
A patrimonial link, for the purposes of limited object financial societies, will be understood as established in Article 87-C of the General Law of Organizations and Auxiliary Credit Activities for multiple object financial societies.

III. Limited object financial societies must present the information and documentation that, within the scope of their respective competencies, is requested by the Secretariat of Finance and Public Credit, the Bank of Mexico, and the National Banking and Securities Commission, within the terms and through the means established by them.

ARTICLE EIGHT.- Upon the entry into force of this Decree, the National Banking and Securities Commission, in terms of Article 45-I of the Credit Institutions Law provided in Article One of this same Decree, may authorize Foreign Financial Institutions, Controlling Subsidiary Societies, or Subsidiaries referred to in said Article, to acquire shares representing the social capital of one or more limited object financial societies, provided that the requirements indicated in fraction I of said Article 45-I are met and the bylaws of the society whose shares are the subject of alienation are modified, in case it is intended to be converted into a Subsidiary, in order to comply with what is provided in Chapter III of Title Two of said Law.
The validity of what is provided in the previous paragraph will conclude when the provisions referred to in the fifth transitory article of the "Decree by which various provisions of the General Law of Titles and Credit Operations, General Law of Organizations and Auxiliary Credit Activities, Credit Institutions Law, General Law of Insurance Mutual Institutions and Societies, Federal Law of Surety Institutions, Law to Regulate Financial Groupings, Popular Savings and Credit Law, Foreign Investment Law, Income Tax Law, Value Added Tax Law and the Federal Tax Code", published in the Official Journal of the Federation on July 18, 2006, enter into force.

ARTICLE NINE.- The faculties that, prior to the entry into force of this Decree, corresponded to the Secretariat of Finance and Public Credit and that, by virtue of it, are assigned to the National Banking and Securities Commission will be conferred upon the latter, once the term of one hundred twenty natural days counted from the date of publication of this Decree has been fulfilled.
During the term referred to in the previous paragraph, the Secretariat of Finance and Public Credit will continue to exercise its faculties in accordance with the provisions in the matter in force until the entry into force of this Decree. Likewise, with respect to those requests for authorization or approval that said Secretariat receives within the term referred to in this Article, it will be for it to process and resolve what is appropriate, for which it may, even after the conclusion of said term, continue to exercise its faculties conferred on the basis of the provisions in the matter in force until the entry into force of this Decree. In any case, from the entry into force of this Decree, the requests presented to the Secretariat of Finance and Public Credit for processing and resolution that fall under any of the situations provided in this paragraph must comply with the provisions in the matter as amended, added, and repealed in accordance with this Decree.

ARTICLE TEN.- Until the National Banking and Securities Commission issues the general provisions referred to in Article 46 Bis 1 of the Credit Institutions Law that is added by this Decree, those issued by said Commission, in accordance with Article 46 Bis in force before the entry into force of this Decree, will continue to be applied, insofar as they do not oppose this Decree.

ARTICLE ELEVEN.- The portfolio assignments or discounts that, in accordance with the applicable provisions, credit institutions have entered into prior to the entry into force of this Decree, including those that, by virtue of the generic authorization of the National Banking and Securities Commission contained in the general rules issued by it, have been carried out with any natural or legal person, national or foreign, other than the Bank of Mexico, other credit institutions, or trusts constituted by the Federal Government for economic promotion, in which the first institutions have not assumed responsibility or risk associated with the collection of the respective portfolio, will continue to be valid and, consequently, will produce all the effects that correspond in law.
Likewise, those portfolio assignments or discounts of credit institutions in which they have assumed the responsibility or risk referred to in this Article and that, in this case, have been authorized specifically by the Commission in accordance with the provisions issued for that effect, will be included in the situation referred to in the previous paragraph.

ARTICLE TWELVE.- What is provided in Article 106 Bis of the Credit Institutions Law is established without prejudice to the consequences that may have derived from the violation of norms or general provisions issued or promulgated prior to the entry into force of this Decree.

ARTICLE THIRTEEN.- Until the Bank of Mexico issues the general provisions referred to in Articles 32 and 179 of the General Law of Titles and Credit Operations, what is provided in said Articles will continue to be applied in accordance with the text in force before the entry into force of this Decree.

ARTICLE FOURTEEN.- The following public trusts will be considered as part of the Mexican Banking System, and therefore will be subject to the supervision of the National Banking and Securities Commission and the regulation indicated in Article 134 Bis 4 of the Credit Institutions Law that is added by virtue of this Decree:

I. Guarantee and Promotion Fund for Agriculture, Livestock, and Poultry.
II. Guarantee and Promotion Fund for Fishing Activities.
III. Special Technical Assistance and Guarantee Fund for Agricultural Credits.
IV. Special Fund for Agricultural Financing.
V. Banking Operation and Financing Fund for Housing.
Without prejudice to the foregoing, until the publication provided for in Article 134 Bis 4 of the Credit Institutions Law is carried out, the National Popular Housing Trust Fund will be considered as part of the Mexican Banking System, and consequently, will be subject to the supervision and regulation of the Commission referred to in said Law.

ARTICLE FIFTEEN.- Article 112, fraction III of the Credit Institutions Law in force until the entry into force of this Decree will continue to be applied for facts carried out during its validity. Likewise, said provision will continue to be applied to persons prosecuted or sentenced for the crimes provided for and sanctioned by said Article.

ARTICLE SIXTEEN.- Multiple banking institutions will have a term of 120 natural days from the date of publication of this Decree to modify their bylaws and the titles representing their social capital, in accordance with what is provided therein. In the case of the modification of the bylaws, these must be submitted for approval to the Secretariat of Finance and Public Credit.

ARTICLE SEVENTEEN.- Credit institutions that have business links established with persons who, upon the entry into force of this Decree, are carrying out operations under Article 92, will have a term that may not exceed two months to adapt to what is indicated in said Article and in the general provisions referred to in Article 46 Bis 1 of this Law, from the day following the entry into force of said provisions.

ARTICLE EIGHTEEN.- Institutions that, upon the entry into force of this Decree, fall under any of the situations provided in fractions III and IV of Article 45-P, must comply with what is provided in Chapter IV of this Law, in a term that may not exceed twelve months counted from said date.

ARTICLE NINETEEN.- What is provided in the last paragraph of Article 45-R of this Law will not be applicable to future appointments of general director or officials or executives who occupy the two immediate lower hierarchies to that, of multiple banking institutions that fall under the situations provided in Chapter IV of Title Two of this Law, only with respect to the general director or officials or executives who occupy the two hierarchies cited, who on October 31, 2007, did not meet the requirements established in said last paragraph.

Mexico, D.F., December 11, 2007.- Dep. Ruth Zavaleta Salgado, President.- Sen. Santiago Creel Miranda, President.- Dep. Esmeralda Cardenas Sanchez, Secretary.- Sen. Adrián Rivera Pérez, 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 at the Residence of the Federal Executive Power, in Mexico City, Federal District, on January 14, two thousand eight.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Francisco Javier Ramírez Acuña.- Signature. TRANSITORIES (Decree by which various Federal Laws are amended, with the objective of updating all those articles that refer to State Secretariats whose denomination was modified and to the Government of the Federal District insofar as appropriate; as well as to eliminate the mention of administrative departments that are no longer in force, published in the Official Journal of the Federation on April 9, 2012) First. This Decree will enter into force the day following its publication in the Official Journal of the Federation. Second. From the date on which this Decree enters into force, provisions that contravene or oppose it are 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 at the Residence of the Federal Executive Power, in Mexico City, Federal District, on March 30, 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 amended, added, and repealed and the Law to Regulate Financial Groupings is issued, published in the Official Journal of the Federation on January 10, 2014)
ARTICLE TWENTY-FIRST.- With regard to the modifications referred to in Articles Eleventh, Twelfth, Thirteenth, Fourteenth, Fifteenth, Sixteenth, Seventeenth, Eighteenth, Nineteenth, and Twentieth of this Decree, the following will apply:

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

II. From the entry into force of this Decree, trusted workers of development banking institutions will 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 who are working in a development banking institution on the date of entry into force of this Decree must be respected, providing for what is appropriate in the remuneration and retirement manuals referred to in Article 43 Bis of the Credit Institutions Law, amended in terms of this Decree.

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

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

V. Within a term of ninety natural days, the Secretariat of Finance and Public Credit will carry out 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 unique 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 carried out by the institution, refer to Rural Finance, it will be understood that they refer to the National Rural, Forestry, and Fishing Development Financial Institution.

TRANSITORY OF THE DECREE
(Decree by which various provisions in financial matters are amended, added, and repealed and the Law to Regulate Financial Groupings is issued, published in the Official Journal of the Federation on January 10, 2014) SINGLE. This Decree will enter into force the day following its publication in the Official Journal 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 will 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 at the Residence of the Federal Executive Power, in Mexico City, Federal District, on January 9, two thousand fourteen.- Enrique Peña Nieto.- Signature.- The Secretary of the Interior, Miguel Ángel Osorio Chong.- Signature.

EXPOSICION DE MOTIVOS
(Decree of January 20, 1986)

In exercise of the faculty 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 said supreme order, through your dignified conduit, I submit to the consideration of the Honorable Congress of the Union the following initiative for the Organic Law of the National Bank of Public Works and Public Services, National Credit Society, a development banking institution, with the purpose of adapting the functions, structures, and operating regime of the institution to the general problems of the country and to the actions of the Government of the Republic in the areas of the bank's competence.

The transcendent measure of the nationalization of banking in September 1982 determined a structural change in the national banking system and in the consequent financial policy.

The transformation was numbered in a first Regulatory Law of the Public Service of Banking and Credit, supported in substance by article 28, fifth paragraph of the Constitution, and with respect to the faculties of Congress in article 73, fraction X of the copy of the Magna Carta.

Within the regulatory process of the new banking and credit measures, the National Development Financing Program was published on May 23, 1984, which, within the context of the National System of Democratic Planning, responds in its scope to the guidelines contained in the National Development Plan, the backbone of the actions of the Government of the Republic.

Subsequently, the Organic Law of the Bank of Mexico and a new Regulatory Law of the Public Service of Banking and Credit were published on December 31, 1984, and January 14, 1985, respectively.

Both provisions, fundamentally the second of the aforementioned, establish the general norms for the operation, functioning, and organization of institutions whose object is to provide the public service of banking and credit. The legislator, conscious that the provision of these services constitutes a new public right of a social nature, linked, in global congruence, to the financial sector with the rest of the economy and, particularly to the satisfaction of priority social needs of the country, in obligatory reference and consequence to the National System of Democratic Planning and to the National Development Financing Program.

Established the ordinary normative order, it is indispensable that national credit societies have their own regulation, a reflection of a new philosophy of financing. In this order of ideas, we submit to your sovereignty the present initiative for the Organic Law of the National Bank of Public Works and Public Services, National Credit Society, a development banking institution.

The project, which integrates into a more adequate and modern legislation, regulating the National Financial System, responds to the general principles of the Regulatory Law, of which it is a successor, and redefines in its nature and objectives the conception that the Mexican State has (sic) of development banking in the specific scope of the sectors within the institution's competence.

Applying the criterion of the legislator manifested (sic) in the banking legislation to which reference has already been made, the project tends to regulate a modern structure, an efficient and accessible operation, avoiding rigid requirements and devices that are easily bypassed by the constant and variable economic conditions of the country that could render negative the financial social action of the bank.

Without prejudice to making a general presentation of the project's chapters, the Executive, under my charge, considers it convenient to make a prior retrospective reference to the society that seeks to regulate and which has consolidated in the revolutionary process of our economy as the Bank of Federalism.

It seems relevant to signify that, in the stage of reconstruction of the country, starting from the armed movement of 1910, the Government of the Republic granted fundamental importance to the establishment of the National Urban Mortgage Bank and Public Works, S. A., as a financial instrument aimed at boosting the provision of urban public services, whose programs had been interrupted and deteriorated, and to satisfy the new needs that began to arise, as a consequence of a process of urbanization that would subsequently intensify.

Thus, at the initiative of the Federal Executive, on February 20, 1933, that bank was legally constituted, which comes to be the direct antecedent of the current National Bank of Public Works and Public Services, National Credit Society, which, along with the first agricultural banks, comes to incorporate the figure of the national credit institution in the financial context of the Mexican Revolution, underscoring the importance that has been given to urban infrastructure in the effort to transform the material and social life of the majority of the country's populations.

The increased volume of the bank's operations, as well as the importance of its functions, caused that from its first Organic Law issued in 1942, the Federal Legislative Power, at the initiative of the Executive, issued new organic laws in the years 1946 and 1949 and introduced several modifications in the latter order in the years 1953, 1956, 1966, and 1968, to facilitate and expand its field of activities.

Among these last ones, particular importance is acquired by the one made by decree of December 22, 1966, which enabled the bank to carry out financing operations in the field of passenger and goods transport and modified its name, from National Urban Mortgage Bank and Public Works, S. A., to National Bank of Public Works and Public Services, S. A., as it was considered more in accordance with its nature, attributes, and functioning.

Finally, on December 27, 1980, the Honorable Congress of the Union promulgated a new Organic Law of the Institution, which is currently in force, in which its field of activity is expanded (sic) and it is granted faculties to operate as multiple banking.

The initiative presented to that sovereignty is oriented, of course, by the principles of economic direction of the State, mixed economy, and democratic planning enshrined in the Magna Carta. Although it incorporates, by legal imperative, the general regime of the Regulatory Law of the Public Service of Banking and Credit, it establishes norms that reflect its specialization for the promotion and financing of the various sectors and activities assigned. The expansion of the country's economy and the growing need for credit for infrastructure and social interest works, concomitant to our development, has required increasingly imperiously that the (sic) bank expand and intensify its activity.

The National Development Financing Program is the option of viability of the economic and social objectives of the National Development Plan. With respect to the National Credit Society, whose regulation is presented to that high consideration, it corresponds, essentially, the most transcendent aspect from a social perspective. The promotion of urban development, the increase and effectiveness of public services, and the possibility of infrastructure and equipment to improve the living conditions of Mexicans.

Therefore, the task at the bank's disposal is visualized in parallel with its capacity to boost national development, through the most appropriate financial instruments, but also fostering in broader forms (sic) various technical assistance actions that allow compliance with the programs derived from the National Development Plan.

In this regard, the society's activity poses novel possibilities, which revive its identity as a development bank and which must be exploited within a coherent application of the programmatic priorities that indicate.

The strengthening of the Nation entails the decentralization of national life that allows giving greater validity to the Federal Pact: hence the decision to reform article 115

The Constitution to regulate the relations between the governments of the states and municipalities, ensure the presentation of services (sic) public, and assign them their own economic resources and participations according to the law.

It is the inescapable obligation of the State, the direction of the national economy.
The faculties, as possibilities and vocations, of the regions, the states, and the municipalities must be harmonized. Strengthening the national whole implies strengthening its basic component: the municipality. Article 115 of the Constitution, interpreted within the framework of this faculty of direction and of the public service of banking, must assume faculties that promote its full political, legal, and social development; it must also have the instruments and economic resources that make the exercise of its mission feasible.

The transformation of the National Bank of Public Works and Public Services, National Credit Society, a development banking institution, means that its responsibility is not limited to the function of financial intermediation or the granting of preferential credits; but implies providing technical assistance, promoting the organization of paramunicipal companies, advising and evaluating social interest projects, in short, constituting a facilitating means of transformation through progressive financing.

It becomes solid support for regional development. Therefore, it will be linked to a reality, to the priorities of each zone, and also for that reason it must adopt an active attitude of consultation with credit users, concertation with state and municipal governments, and decentralization of operations and decisions. The objectives included in articles 6 and 7 of the present initiative for the Law and the flexibility in the management of its resources as provided by the project itself, will make this transformation a daily reality.

The decentralization of national life is considered an indispensable condition to give greater validity to the Federal Pact.

Furthermore, from a population policy point of view, it is necessary to make the widest effort to equip certain cities with the purpose of turning them into migration attraction hubs, mitigating the dangerous growth of large concentrations and promoting the rooting of their inhabitants, by providing them with adequate infrastructure with urban services and opportunities for the development of their various capacities, without the need to have to comprehend the march towards other regions.

This is a fundamental premise to access the egalitarian society, which must be considered in all its transcendence within the credit policy (sic) applied by the National Bank of Public Works and Public Services, National Credit Society, in the sectoral area entrusted to it, framing the provision of its services in the context of a new public right of a social nature that corresponds to the performance of the banking activity of our time.

The bank's participation in this effort that strengthens political and social federalism also raises the need to incorporate in the broadest forms the federative entities and municipalities in the programmatic processes established at the national level, orienting them in the operation of services and in the execution of public works of community benefit; reintegrating the patrimony that corresponds to them and, to the extent of their economic, political, and social revaluation, increasing urban infrastructure, social equipment elements, and opportunities for work and development of each Mexican.

Additionally, the selective application of credit for urban areas must tend to the execution of programs that impact to a greater extent the creation of permanent jobs and solid infrastructure that allows regional development.

For the fulfillment of its function, the bank will constitute, within its scope, the channel for channeling credits under preferential conditions.

The fundamental criterion for granting them will be their social profitability, according to what is expressed in the National Development Financing Program, which states: "interest rates and criteria applicable to preferential credit will be reviewed, with the object of eliminating distortions and irregularities and improving their effectiveness as an instrument to boost development." In addition, the greater benefit of the resources channeled must be congruent with national priorities and take maximum advantage of the complementarity that must exist in the use of budgetary and credit resources.

On the other hand, by modifying operational policies and administrative structures, it is sought that the bank's action comes to constitute a trigger for development, allowing multiple complementary actions, sponsored by the public sector with the participation of social groups and private enterprise, which will base its dynamic participation on the possibility of having urban equipment that makes the concreteness of its projects possible. The convergence in times and spaces duly programmed of the actions of these sectors is, from a strategic point of view, of the greatest importance so that the actions of the Bank of Federalism achieve optimal results.

Based on these fundamental principles, the initiative for the Organic Law of the National Bank of Public Works and Public Services, National Credit Society, which is now presented to the consideration of that sovereignty, tends to adapt the institution to its new functions and responsibilities and presents substantive modifications in concrete, among which the following stand out fundamentally:

Chapter one deals with the denomination of the society, its object, domicile, and duration; in general terms, it specifies the new character of the bank as a National Credit Society and a development banking institution; as such, it records the imperative to link itself to the National System of Democratic Planning and especially to the National Development Plan and to the National Development Financing Program. As the bank's fundamental objective, the sectors towards which it must provide the public service of banking and credit to satisfy, in that scope, the priority financial needs of the federal governments, the entities, and the municipalities are established.

It reiterates, as in the text that will be repealed, the possibility to open or close agencies, branches, representations, etc., in a clear intention to continue with the policy of decentralization.

It is in chapter two, on objectives and operations, where the new structure and conception of the society as development banking is truly inscribed. In this regard, it is convenient to recall that the Regulatory Law of the Public Service of Banking and Credit, in its article 3, authorizes that the organic laws of development institutions, consign the specific objectives that imprint their distinctive, promotional, and fostering nature. In the initiative, it is intended to differentiate the objectives of the operations that the current law confuses. Articles 6, fractions I, II, III, and IV stand out, whose purpose is the strengthening of the municipality in the terms expressed in previous paragraphs.

The resolution of the housing problem is a preferential goal in government programs; financing for that sector for non-salaried workers is an objective of the bank's work in the past and again recorded in the project.

The coordination between the programs of the National Bank of Public Works and Public Services, National Credit Society, and the corresponding ones of the public treasury of other institutions of fostering funds, trusts, etc., constitutes an indispensable requirement to optimize national resources, avoid duplicities, and hasten the satisfaction of the country's financial needs. Hence fraction VII of the related article.

In article 7, within the same second chapter, the operations that the bank must carry out to achieve its objectives are recorded. It is estimated that this device together with numerals 8, 9, and 10 must be linked to the specific objectives by the close cause-and-effect relationship that exists between them; in this way, the order gains in legislative technique and ease of interpretation.

Fractions IV, V, VI, and VIII record operations contemplated by the current law.

However, they are distinguished in various fractions, according to their purpose, the credit and financial activities that the institution can carry out.

It is important to highlight fraction I, whose second paragraph imposes carrying out the receipt of bank deposits and the acceptance of credits and loans, seeking to make the use of credit accessible to individuals to foster savings.

With respect to the passive credit operation par excellence, which is the issuance of collection instruments, regardless of their nomenclature, through which resources are gathered to finance operations and public services or social interest that constitute its primary object, in fraction II of this article 7, a broad regime is established, without limitation as to the nature of the resource collection instrument.

Unlike the current order and applying the thesis of accessibility in credits, article 8 transfers to the Organic Regulation or to the agreements of the Directing Council the requirements for their granting. This avoids constant reform to the law and, if necessary, that measures are taken or credits granted that could contravene the express norm.

Article 9 consecrates the exception to the general rule on trusts, authorizing the double quality of trustor and trustee of the bank, in trusts constituted to guarantee its rights.

With the purpose of empowering the Ministry of Finance and Public Credit to set interest rates, commissions, permits, discounts, or other analogous concepts, amounts, terms, and other characteristics of the active operations of the service, which the society performs in fulfillment of its object as development banking, the corresponding attribution is recorded. This exception regime must be expressly fixed by virtue of what is provided by articles 14 of the Organic Law of the Bank of Mexico and 32 of the Regulatory Law cited.

Unlike the current law, the social capital is integrated with participation certificates of the "A" and "B" series. The first of them, which presents 66% of the total capital, will only be subscribed by the Federal Government; series "B", which represents 34% of the capital, may be subscribed by the Federal Government, by the governments of the federative entities and municipalities, or by their respective para-state or paramunicipal entities.

This formula of capital integration is compatible with the essential nature (sic) of the society and with its social object, which fully justify that these entities, benefited by the bank's work, participate in its patrimony. The explicit indication of this form of composition of social capital seems recommended by its virtue of the specialization of the activities attributed to this society.

The administration and supervision of the society are treated in chapter four. It is reiterated that the administration of the society corresponds to the Directing Council and the general director in their respective scopes of competence. The former is integrated by nine councilors, six representatives of series "A" who will be the holders of the Ministries of Finance and Public Credit, who will preside over this body, of Urban Development and Ecology, of Tourism, of Communications and Transportation, the general director of the Bank of Mexico, and a representative of the Ministry of Finance and Public Credit. Regarding the councilors of series "B", the Organic Regulation will dictate the norms for their designation.

Likewise, the structure of the institution's Directing Council is indicative of the intention (sic) that the holders of the State Ministries that sectorially attend to the matters in which the society participates, headed by the Ministry of Finance and Public Credit, as responsible for the financial sector, are able to direct the institutional policy of the society and ensure, in this

form, the coherence and continuity that must be given to the bank's actions based on the guidelines underlying national planning.

Social oversight is the premise of Articles 24 and 25. The first provides for the existence of two auditors (comisarios), one appointed by the Secretariat of the General Comptroller of the Federation, based on the generic attribution belonging to this dependency; the other auditor will be appointed by the "B" series counselors. In fulfilling their duties, the auditors will have all the powers and obligations set forth in the applicable Regulatory Law and the Organic Regulations.

The Advisory Commission referred to in Article 27 of the ordinance regulating the public banking and credit service is introduced into provision number 25 with a reference to the substantive norm. The last provision of this chapter preserves the procedural regime of absorbing positions and giving testimony when formulated ex officio, to which a written response will be given.

Chapter five groups various general provisions that are understood as different premises. The regime of legal suppletoriness refers, in order, to financial legislation and applicable provisions without making an exhaustive reference to them.

The power of the Secretariat of Finance and Public Credit to interpret the law and issue the provisions required for its adequate application is reiterated.

Article 29 authorizes the Secretariat of Finance and Public Credit to issue guidelines according to which the programs, budgets, and estimates of the society will be formulated. Specific attribution is granted to said dependency to authorize resource allocations, reflecting the philosophy of flexibility and management autonomy indispensable for the efficient functioning of the bank, as previously expressed.

The obligation to direct the resources collected by the bank, coming from reserves that institutions of Credit, Insurance, Surety, and others diverse, must constitute, towards the financing of works and services in the sectors under the society's competence, is preserved with greater clarity.

Articles provide for the start of the validity of the law in question, the abrogation of the current ordinance, and the obligation to publish the Organic Regulations within a term of 180 days.

In view of the foregoing, and based on the constitutional provisions already invoked, through your dignified channel, I submit to the consideration of the Honorable Congress of the Union the following initiative of

EXPLANATION OF MOTIVES
(Decree of June 24, 2002)
Development banking institutions have the objective of attending 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, risk level, lack or insufficiency of guarantees, geographic 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 channeling financial resources to specific sectors and projects.

To fulfill this mandate and given the current environment, highly dynamic and competitive, 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 above, some modifications to various ordinances are needed, as indicated below:

In the administrative sphere, modernization and efficiency in the use of resources are sought. In this sense, the governing council of each institution will approve general budgets without needing to resort to various instances to obtain authorization, provided they remain within programmed spending parameters, considering that national credit societies do not use fiscal resources for their expenses and investments, and must observe general norms in budgetary matters applicable to the concrete case.

With the aim of having greater capacity to act regarding 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 acquisitions, hire services, leases, and works in a timely manner both in the country and abroad, for the correct functioning of said institutions, which is why 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 above, this Decree records the need to establish the guidelines under which such activities will be carried out, subject to what is provided by Article 134 of the Constitution.

The governing council will have additional powers in matters of budgets for expenses and investment, acquisitions, leases, services, public works, salaries, benefits, to make the reform consistent regarding administrative modernization. At all times, constitutional principles will be observed, where generally the obligation to assign through public bidding will prevail, in transparent processes that allow each institution to obtain the best market conditions regarding price, quality, financing, and timeliness.

Likewise, economy, efficacy, honesty, and impartiality will be sought to be ensured in the respective processes.

Only in those cases where public bids are not suitable, procedures of restricted invitation or direct award will be carried out, for which the governing council 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 former as a support body that will advise and propose to the governing council of each institution, the terms and conditions under which the relationships between development banking institutions and their workers will develop, according to market conditions and the possibilities of each development banking institution, in accordance with the sector, eliminating discretionary powers and providing greater legal security.

In matters of risk management, the governing council is authorized to create this type of committee, with the object that such risks are diversified and the maximum limits of direct and contingent responsibilities are bounded, in congruence with what various prudential provisions indicate.

The Secretariat of Finance and Public Credit will establish global maxima for each institution to attend to its needs for current expenditure, 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 establishing clearly the competence of the Secretariat of Finance and Public Credit to determine the characteristics of active, passive, and service operations and that of the Bank of Mexico, in the case of passive operations that imply collection of resources from the public, 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 establish clearly 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 object and do not divert resources to specific sectors or persons or those belonging to groups with common interests, distinct from financial intermediaries, the governing council 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 that the Federal Government grants them by virtue of law, an obligation is incorporated on the part of national credit societies to contribute resources to a trust that will have among its ends supporting the fulfillment of their obligations derived from the collection they carry out from the general public, as well as to contribute to the strengthening of the capital of said societies, to ensure their permanence in the medium and long term.

Better corporate practices are incorporated into the administration bodies of development banking, which have the end of strengthening said decision bodies, since by granting greater powers to the governing council, it is necessary at the same time to develop some measures that allow better performance of its members.

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

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

It is important to highlight that independent counselors 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 ventilated within the respective collegiate body.

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

Without doubt, 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, exercise of spending, compliance with programs, information that will be delivered to the Federal Executive, through the Secretariat of Finance and Public Credit, which will also be remitted to the Congress of the Union in an annex together with the Reports on the Economic Situation, Public Finances, and Public Debt.

For the aforementioned reasons, the Federal Executive under my charge, in the exercise of the faculty conferred upon him 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 of

EXPLANATION OF MOTIVES
(Decree of August 1, 2005)
On August 14 of last year, 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 entered into force.

With this reform, the Permanent Constituent Assembly took a historic, unprecedented step, by recognizing indigenous communities with their own legal personality, 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 different Legislatures of the federal entities, “to make adjustments to federal laws and local constitutions that proceed and regulate what is stipulated here.”

This responds to the initiative now presented, with the aim of also inscribing Development Banking in the effort that different national institutions must make to contribute, from their respective scopes of competence, to make the constitutional mandate a reality.

Inclusive, among the tasks and actions that the new Constitutional Article 2nd 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 zones 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 sustainable development of indigenous communities through actions that allow achieving sufficiency of their economic income, the application of incentives for public and private investments that promote job creation, the incorporation of technologies to increase their own productive capacity, as well as to ensure equitable access to supply and marketing systems.” (Fraction VII)

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

Therefore, and with the aim of giving due compliance to what is provided in the new text of Article 2nd of the Constitution, and according to what is established in the Second Transitory Article of the respective Constitutional Reform Decree, we submit to the consideration of this Honorable Senate Chamber, the following:

EXPLANATION OF MOTIVES
(Decree of February 1, 2008)
Among the strategies to responsibly conduct the economic course of the country, are those related to promoting effective regulation and supervision schemes in the financial system, as well as to boost a solid and efficient commercial banking, so that it can adequately fulfill its function.

There are some aspects of the Law of Credit Institutions that, if adjusted to the current conditions of the financial sector, could improve the functioning and development of the banking sector. On the other hand, there is a variety of administrative procedures that, having to be fulfilled before various authorities, translate into a high regulatory cost for credit institutions.

For this reason, it is planned to simplify and adjust the law, in order to identify procedures, requirements, and steps. This also intends to achieve an important reduction of costs for participants in the market, for the State, as well as for users of the financial services provided by these entities.

In this sense, financial authorities have undertaken the task of identifying those norms in which it is possible to perform a labor of flexibilization, simplification, and cost reduction, as well as those in which it is necessary or convenient to strengthen and improve the authorization processes for important corporate acts and supervision of intermediaries.

On the other hand, the current regime of operation and regulation of multiple banking institutions does not distinguish between entities that carry out partially or totally the operations and activities permitted by the law. This situation generates that institutions that opt to carry out certain types of operations allowed in general incur unjustified regulatory costs.

The initiative intends to modify a wide range of articles of the Law of Credit Institutions. It is an effort to update said law in order to eliminate figures that have fallen into disuse, adjust the authorization processes to organize and operate as a multiple banking institution to make them clearer and more efficient, flexibilize the regime relative to the operations and activities that said institutions can perform and the regulation applicable to them, as well as review the attributions of financial authorities to foresee a more efficient system.

I. Banking and Credit Activities

It is established the possibility that credit institutions, in relation to the type of operations they carry out, can be located in any of the following situations: i) institutions authorized to carry out all the operations permitted by the law, that is, as provided in the current scheme, or ii) institutions authorized to perform, at their choice, only some of the operations permitted by the law, with the possibility of increasing or decreasing the number of said operations. With the above, it

seeks that the regulatory burden for credit institutions be proportional to the type of operations they carry out.

For the purposes of the proposed scheme, it is important to consider that currently, the entire regulatory framework applicable to all multiple-banking institutions applies in an integral manner to all activities and operations that a bank may perform, regardless of whether, in practice, it does not carry out some of them. That is, the current scheme assigns identical regulatory burdens and costs to all multiple-banking institutions, without recognizing the differences that exist in their operations.

In effect, some banks, known as "regional" or "niche" banks, carry out only certain types of specialized operations or directed at a specific sector, such as, for example, some subsidiary banks that carry out wholesale banking operations. Nevertheless, the same regulatory burden and cost apply to all those multiple-banking institutions as to those that carry out all operations permitted by law. For this reason, it is proposed to provide that banking institutions that carry out some of the operations permitted by law be subject only to the regulation corresponding to those operations, with the possibility of increasing or decreasing the operations they choose at any given time, subject to the corresponding authorization.

In addition, at the international level, the banking structure of various countries contemplates different types of licenses or banking authorizations, or the establishment of branches of foreign banks with differentiated regulation by type of license or authorization. In the particular case of Mexico, reforms have been made to the regulatory framework of the financial system in order to implant structures of this nature, such as popular savings and credit entities and, in the new Securities Market Law, to brokerage houses.

The proposed scheme will allow reducing entry barriers, as well as transaction costs, since costs and regulation would be consistent with the operations carried out. In this context, banking institutions must be subject to the regulation corresponding to the nature of their operation. This will incentivize the entry of new participants into the banking system, generating greater competition and market penetration.

II. Realignment of Powers

As mentioned above, one of the main reforms proposed in this initiative is to transfer to the National Banking and Securities Commission (CNBV) various powers currently exercised by the Ministry of Finance and Public Credit. Such functions consist mainly of granting authorizations for the organization and operation of multiple-banking institutions, their mergers, spin-offs, and various corporate acts, as well as the power to revoke said authorization to organize and operate as such.

The assignment of powers provided for in the initiative aims to achieve greater efficiency and speed in the administrative procedures to which multiple-banking institutions are subject, and at the same time, to eliminate or reduce, as much as possible, procedures that can become redundant.

Therefore, it is proposed that, for the authorization of various acts that involve the review of technical requirements, it be the National Banking and Securities Commission that grants it, hearing the opinion, when appropriate, of the Bank of Mexico. It is worth noting that given the relevance of certain authorizations and their impact on the banking system, in certain cases the National Banking and Securities Commission will require the favorable opinion of the Bank of Mexico.

Similarly, there are powers to issue secondary regulation currently exercised by the Ministry of Finance and Public Credit, such as the rules for determining the classification of the credit portfolio, for the capital requirements of credit institutions. Regarding this regulation, given the technical capacity and specialization that the National Banking and Securities Commission has acquired, it is to this commission that the issuance should correspond because it has the technical elements for it.

With the above, it is sought to have a solid body that covers the complete regulatory and supervisory cycle, from the entry of the intermediary to its revocation; that is capable of adapting regulation quickly and flexibly to the national economic context; that is the only responsible for the regulation and supervision of the intermediary; and that acts through clear and efficient processes.

The above is consistent with the experience prevailing in the international arena, where it is frequently observed that attributes related to the regulation and supervision of banking institutions are concentrated in a single authority. Such is the case of Brazil, Argentina, Japan, Australia, China, Singapore, Korea, Italy, and the United Kingdom.

Regarding this, there are other cases within the regulation of the Mexican financial system where authorities maintain attributes over the complete cycle of regulation and supervision. Such is the case of the National Banking and Securities Commission itself, with respect to entities regulated by the Popular Savings and Credit Law, as well as the National Retirement Savings System Commission, with respect to pension fund administrators.

III. Supervision of External Auditors

It is proposed to grant powers to the National Banking and Securities Commission to carry out inspection and supervision activities on companies that provide credit institutions with external audit services. Among the main powers intended to be conferred are those to require any kind of information and documentation, conduct inspection visits, require the appearance of partners, representatives, and other employees of companies that provide external audit services, and recognize audit norms and procedures that external auditors must observe when issuing opinions or opinions regarding the financial statements of credit institutions.

In addition, in order to protect the interests of the public user, better controls are proposed regarding the financial information presented by credit institutions to the National Banking and Securities Commission, so that the authority has greater certainty regarding said information.

IV. Contracting of Services with Third Parties

It is also proposed to update the regulatory framework regarding the contracting with third parties of services necessary for the operation of credit institutions, for which, in a clear manner, the cases in which the National Banking and Securities Commission can order the partial or total, temporary or definitive, suspension of the provision of said services are established. In this way, it is intended to provide greater legal certainty to the institutions that hire them.

Likewise, it is proposed that the National Banking and Securities Commission may request information and documentation from service providers, through the credit institutions, regarding the services they provide based on said contracts, as well as conduct inspection visits and decree the measures it deems necessary to ensure the continuity of the services that credit institutions provide to their clients.

The above with the objective that the rule be clear and delimit the powers of the authority regarding the aforementioned contracting, which contributes to the legal certainty of the transaction, both for the credit institution and for the corresponding third party.

V. Transactions with Related Parties

Likewise, various aspects regarding the treatment of operations carried out by multiple-banking institutions with the so-called related parties are added and specified. Regarding this, on the one hand, the concept of "transactions with related parties" is detailed, as well as the subjects who can carry them out, and on the other hand, it is proposed to adjust the parameters for calculating the limits applicable to said operations.

This update is fundamental in order to modernize and clearly detail the controls and actions that allow financial authorities to avoid or reduce, as much as possible, the carrying out of operations that could put the stability of credit institutions or even the financial system as a whole at risk. Likewise, it is proposed to establish more appropriate limits for transactions with related parties, as well as to achieve greater clarity in indicating what type of operations will be subject to said limits.

VI. Investments of Credit Institutions and Risk Diversification

The parameters for calculating the limits to which the investments carried out by credit institutions in different areas are subject are adjusted, so that they are consistent with the risks implicit in said operations. In this way, it is intended to foster greater consistency and efficiency in the investment scheme provided for in the current law. This is achieved with more appropriate limits for said investments carried out by credit institutions. In the specific case, it is proposed that the limit be established as a percentage of the basic part of net capital referred to in Article 50 of the law.

For this reason, Article 50 specifies that the net capital of credit institutions will be composed of a basic part and a complementary part, and will be determined in accordance with the provisions established by the National Banking and Securities Commission.

Similarly, it is planned to modify the investment limits in non-financial companies, so that the implicit risk is recognized according to the percentage of investment and the type of company involved, whether companies that trade or do not trade on stock exchanges.

Additionally, an adjustment to the risk diversification regime is contemplated, in order to specify the types of risks with respect to which it is advisable for banks to avoid concentrating them in relation to a person or group of persons that could represent the same risk, whether credit, market, or operational.

VII. Authorization for the Constitution of Multiple-Banking Institutions

It is intended to recognize in law all the stages of the authorization procedure for the organization and operation of a multiple-banking institution. Likewise, the requirements that must be satisfied for the authorization for the organization and operation of a multiple-banking institution are updated and clarified.

VIII. Self-Regulatory Banking Bodies

The initiative contemplates providing for the first time in the banking system, the figure of self-regulatory banking bodies. Such bodies would be trade associations of credit institutions that obtain recognition from the National Banking and Securities Commission, and their purpose would be the implementation of various standards of conduct and operation among the credit institutions that are members of them.

The legal recognition of said bodies aims to promote greater efficiency and transparency in the activities and operations carried out by credit institutions, thereby contributing to the healthy development of the financial system.

IX. Opening and Restructuring of Credits

Since in practice multiple-banking institutions are limited in matters of opening and restructuring of credits, in the proposed modifications, general rules are provided for both figures, as well as the requirements and procedures for the specific case of restructurings, including the possibility of providing for the granting of additional guarantees, modification of interest rates, partial payments, and studies that support the payment viability of the added debt under the new conditions, in case additional resources are required for the restructuring.

The above, attending the need to implant mechanisms that allow increasing the possibilities of credit portfolio recovery by credit institutions, with respect to restructuring processes.

X. Partial Suspension of Operations of Credit Institutions

It is proposed to grant additional powers to the National Banking and Securities Commission that allow it to suspend or limit partially the active, passive, and service operations carried out by credit institutions, when they do not have the necessary infrastructure or internal controls to carry out the operations that were authorized to them, when any of the requirements established by the Credit Institutions Law for the start of their operations is not met, when they carry out operations different from those authorized, or when they are declared by the judicial authority in a state of commercial bankruptcy.

These powers are established in order to update and improve the supervisory functions of the National Banking and Securities Commission, in protection of the interests of the public users of credit institutions and of the financial system in general, in accordance with the new specialized banking scheme mentioned above.

XI. Independent Directors, Executives, and Commissioners of Multiple-Banking Institutions

It is proposed to update the provisions applicable to the figures of independent directors, executives, and commissioners of multiple-banking institutions, for which it is foreseen to reinforce in law the characteristics that such subjects must meet to perform said functions.

Through the update of the requirements that must be met to serve as an independent director, director, and commissioner of a multiple-banking institution, it is sought to decrease the possibilities of conflicts of interest or mismanagement in the administration of said institutions, and in this way, increase the protection of the public and the financial system.

XII. Merger and Spin-off of Multiple-Banking Institutions

It is proposed to eliminate legal gaps that exist in the text of the current law, for which the exact moment in which the merger of multiple-banking institutions takes effect is clearly indicated, and it is clarified that the same leaves without effect the authorization to organize and operate as a multiple-banking institution originally granted to the merged society, which disappears as a consequence of said corporate act.

In this sense, the proposal seeks to provide greater clarity regarding the procedure through which the mergers of credit institutions are carried out, provides greater legal certainty to participants, and reduces regulatory costs by eliminating the need for credit institutions that disappear to consider it necessary to go before the authority to request the revocation of the authorization granted to them to organize and operate as such.

Likewise, as a consequence of the realignment of powers established in this initiative, it is intended to eliminate the current text regarding the power that the Ministry of Finance and Public Credit has, when authorizing a merger, to ensure at all times the adequate protection of the interests of the public, as well as of the workers of the societies. The above, given that said text is unnecessary, since the National Banking and Securities Commission, the body that, in accordance with said realignment, will be in charge of authorizing the referenced mergers, already has among the obligations established by the law that regulates it, the duty to carry out said protection and supervision of the interests of the public and of the workers of the societies. It should be noted that the same treatment is applied to the figure of the spin-off of multiple-banking institutions.

XIII. Participation in the Share Capital of Multiple-Banking Institutions

It is proposed to establish the obligation that persons who intend to constitute a multiple-banking institution or acquire shares of one that is in operation, demonstrate that they have, among other aspects, honorability and satisfactory credit and business history and that they have not been sentenced for intentional patrimonial crimes.

Through this modification, it is intended to prevent losses in credit institutions and increase the levels of protection of the saving public, by establishing stricter controls regarding the persons who could be shareholders of said institutions, excluding those persons who generally have negative records in these aspects.

XIV. Letters of Credit

The reform proposal aims to update the current banking legislation to be in accordance with banking practices and usages in matters of letters of credit, both at the national and international levels. The current text is insufficient as it only refers to the commercial letter of credit, and is silent regarding contingent guarantees that are currently common in both domestic and international operations.

For this reason, exclusively with respect to operations carried out through the use of letters of credit by credit institutions, it is proposed to establish the supplementary application of the usages and practices explicitly indicated by the contracting parties of this type of service, based on international standards, as well as to clearly delimit the responsibility of credit institutions in said operations.

Likewise, the existence of the commercial letter of credit and contingent guarantees is recognized, naming them generically as "letters of credit." Furthermore, and in order to increase the legal certainty of the beneficiary of the letter of credit, it is proposed to establish the possibility that it can be modified or canceled exclusively with the express acceptance of the issuing institution, the beneficiary, and, if applicable, the confirming institution, thus defining its irrevocable nature.

The above is relevant since this type of instrument is used with increasing frequency in the international arena. In light of this, it is necessary that the regulatory framework with which our country operates responds to the demand of users of this type of instrument, with clear rules, in accordance with international usages and practices, and with the responsibilities of participants clearly delimited. The proposed modifications seek that the use of this instrument be more generalized, practical, agile, and secure.

XV. Strengthening in Supervision

It is sought to update and detail the powers of the National Banking and Securities Commission and, especially, in its capacity as supervisor of credit institutions. For this, the types of visits that the commission can carry out to said institutions are specified, and it is clearly stated that supervision will be carried out through the analysis of accounting, legal, economic, financial, administrative, process, and procedure information that it obtains, with the purpose of evaluating compliance with the regulations governing credit institutions, as well as their stability and correct functioning.

With the above, the corresponding regulatory framework is updated in order to make the supervisory work of the National Banking and Securities Commission more efficient, thereby providing greater legal certainty to credit institutions and their users.

XVI. Regulation of Derivative Operations

The current Credit Institutions Law establishes that credit institutions may carry out financial operations known as derivatives, provided they comply with the provisions issued by the Bank of Mexico after hearing the opinion of the Ministry of Finance and Public Credit and the National Banking and Securities Commission. Through the proposed reform, that central institution is authorized to, in the exercise of the powers granted to it by the law regulating it, issue the aforementioned provisions without the need to hear the opinion of the other financial authorities. The aforementioned reform will allow greater flexibility and speed when it is necessary to modify such regulation, in order to meet the needs of the market. It should be noted that the modification is consistent with what is provided in Article 176 of the new Securities Market Law, published in the Official Gazette of the Federation on December 30, 2005, which authorizes the central bank to regulate the matter without requiring the opinion of other authorities.

XVII. Publication of Regulation
The initiative provides that the National Banking and Securities Commission may directly request the publication in the Official Gazette of the Federation of provisions and general rules, as well as administrative acts issued by said decentralized body within the scope of its competence, in accordance with the relevant laws of the Mexican financial system. The purpose of this is to expedite the publication procedure in the aforementioned Journal, since, given the nature of these acts, it is imperative to make them known to their recipients in a prompt and timely manner. Thus, the procedure currently followed through the Ministry of Finance and Public Credit, within whose scope the commission itself is attached, would be replaced; at the same time, this will facilitate for the user public the identification and consultation of the aforementioned provisions, rules and acts emanating from the aforementioned commission, since they will be published within a special section corresponding to that body and not to that of the aforementioned ministry.

XVIII. Protection of Third Parties
In order to protect the interests of the public, mechanisms are contemplated that allow credit institutions themselves to react, to the extent possible, against acts that could represent a fraudulent attack on their clients' resources.
Additionally, a new procedure for the attention of client clarifications is incorporated.

XIX. Development Banking
The reform also seeks to strengthen the corporate governance of development banking institutions, through the creation of an audit committee and a human resources and institutional development committee. The audit committee may submit to the board of directors the projects, programs and other matters related to its powers.
The human resources and institutional development committee, among other powers, will recommend to the board of directors the amount of remuneration corresponding to external councilors with the status of independent and to commissioners who are designated by the holders of the series B capital contribution certificates.
The Organic Law of the National Bank of Public Works and Public Services is modified in order for all development banking institutions to have at least two external councilors with the status of independent in their board of directors.
As for the framework of action of the external councilors of this type of institution, it is provided that they must abstain from participating in matters that imply a conflict of interest for them, in addition to maintaining absolute confidentiality of the matters in which they participate with that status.

Likewise, the non-delegable powers of the governing body in each of the development banking institutions are specified and updated.

XX. Authorizations to Third Parties to Carry Out Payment Domiciliation, Expanding Means for the Disposition of Resources
In the initiative, the reference figures are updated in order to grant greater breadth in their use, while establishing the possibility that holders of deposit accounts who wish to object to charges made through the payment domiciliation of goods and services, have a procedure that, for this purpose, will be established by the Bank of Mexico, through provisions of a general nature.
With the issuance of the aforementioned provisions, flexibility is sought for the procedures established therein, since, as they are not directly established in the Credit Institutions Law, their update, complementation or perfection can be carried out in an agile and timely manner, given that it is a secondary regulation.

XXI. Acquisition of Shares Representing the Social Capital of Certain Intermediaries by Foreign Financial Entities or Their Subsidiaries
It is proposed to modify the requirements established in Article 45-I of the Credit Institutions Law, relating to the acquisition of shares representing the social capital of credit institutions or limited object financial companies, by foreign financial institutions, controlling subsidiary companies or subsidiaries referred to in the same law. The foregoing is intended to allow the possibility that the aforementioned institution or company whose shares are the object of acquisition may or may not become a subsidiary and that, in addition, it may operate as a subsidiary of a subsidiary. With respect to this, in accordance with the decree by which various provisions of commercial, financial and tax laws are reformed, repealed and added, published in the Official Gazette of the Federation on July 18, 2006, the aforementioned Article 45-I would remain reformed from June 18, 2013 as part of the elimination of references to limited object financial companies provided by said decree. In this sense, in order to ensure the greatest legal certainty regarding the text of the aforementioned Article 45-I that would remain in force from 2013, the present initiative provides for the repeal of the reforms to said article provided in that other decree, and, in turn, a transitional provision is contemplated so that the case of that same article that is reformed in the terms provided in the present initiative is applicable to limited object financial companies for the time in which they continue to be recognized in law.

XXII. General Law of Titles and Credit Operations
In the initiative, it is proposed to reform the General Law of Titles and Credit Operations, in order to update the limits of the maximum amounts for the issuance of bearer checks, as well as for the blank endorsement of checks, so that the respective amounts are not very high, and with this, illicit acts that are currently carried out with said instruments are discouraged.
The foregoing would be achieved through provisions of a general nature, for which purpose the Bank of Mexico will issue, which must be published in the Official Gazette of the Federation.
On the other hand, the possibility is added that fiduciary institutions may terminate, without any responsibility, the trust contract, in cases where the due consideration has not been covered, for a period equal to or greater than three years.

Considerations of the Commission
The one that dictates coincides with the initiative in considering as a priority the promotion of legal certainty in the various areas of national development with which it is intended to promote the regulation and supervision scheme of the financial system in a more efficient manner.

It is established in the initiative the possibility that credit institutions, in relation to the type of operations they carry out, can be located in any of the following situations: i) institutions authorized to carry out all the operations allowed by the law, that is, as provided in the current scheme, or ii) institutions authorized to carry out, at their choice, only some of the operations allowed by the law, with the possibility of increasing or decreasing the number of said operations. With the foregoing, it is sought that the regulatory burden for credit institutions be in accordance with the type of operations they carry out. Various powers currently exercised by the Ministry of Finance and Public Credit are transferred to the National Banking and Securities Commission. Such functions consist mainly in granting authorizations for the organization and operation of multiple banking institutions, their mergers, spin-offs and various corporate acts, as well as the power to revoke said authorization to organize and operate as such. Likewise, it coincides with the proposal to grant powers to the National Banking and Securities Commission to carry out inspection and supervision activities on companies that provide credit institutions with external audit services (sic). Among the main powers conferred, are those to request all kinds of information and documentation, conduct inspection visits, require the appearance of partners, representatives and other employees of companies that provide external audit services (sic) and recognize audit norms and procedures (sic) that external auditors must observe when issuing opinions regarding the financial statements of credit institutions. It is also proposed to update the regulatory framework regarding the contracting with third parties of services necessary for the operation of credit institutions, for which, in a clear manner, the cases in which the National Banking and Securities Commission can order the partial or total, temporary or definitive suspension, of the provision of said services are established. In this way, greater legal certainty is intended to be granted to the institutions that contract them. This commission that dictates, this (sic) agrees to add and specify various aspects related to the treatment of the operations carried out by multiple banking institutions with the so-called related persons. With respect to this, on the one hand, the concept of "operations with related persons" is detailed, as well as the subjects who can carry them out, and, on the other hand, it is proposed to adjust the parameters to calculate the limits applicable to said operations. The parameters for the calculation of the limits to which the investments made by credit institutions in various areas are subject are considered necessary, in order for them to be consistent with the risks implicit in said operations. In this way, greater consistency and efficiency in the investment scheme provided for in the
current law is sought to be promoted. The foregoing is obtained with more appropriate limits for said investments that credit institutions carry out. In the specific case, it is proposed that the limit be established as a percentage of the basic part of the net capital referred to in Article 50 of the law. The law recognizes all the stages of the authorization procedure for the organization and operation of a multiple banking institution. Likewise, the requirements that must be satisfied for the authorization for the organization and operation of a multiple banking institution are updated and clarified. The one that dictates contemplates including the figure of self-regulatory banking organizations. Such organizations would be guild associations of credit institutions that obtain the recognition of the National Banking and Securities Commission, and would have as their objective the implementation of various standards of conduct and operation among the credit institutions that are affiliated with them.

In view of the fact that, in practice, multiple banking institutions are limited in matters of credit opening and restructuring, the modifications provide general rules for both figures, as well as the requirements and procedures for the specific case of restructuring, including the possibility of providing for the granting of additional guarantees, modification of interest rates, partial payments, and studies that support the payment viability of the debt added under the new conditions, in case additional resources are required for the restructuring. The one that dictates agrees to grant additional powers to the National Banking and Securities Commission that allow it to suspend or limit partially the active, passive and service operations carried out by credit institutions, when they do not have the necessary infrastructure or internal controls to carry out the operations authorized for them, if any of the requirements established by the Credit Institutions Law for the start of their operations are not met, if they carry out operations different from those authorized, or if they are declared by the judicial authority in a state of commercial bankruptcy. It is proposed to update the provisions applicable to the figures of independent councilors, executives and commissioners of multiple banking institutions, for which it is provided to reinforce in law the characteristics that such subjects must meet to perform said functions. It is proposed to eliminate legal gaps that exist in the text of the current law, for which the exact moment in which the merger of multiple banking institutions takes effect is clearly stated, and it is clarified that the same leaves without effect the authorization to organize and operate as a multiple banking institution originally granted to the merged society, which disappears as a consequence of said corporate act. It is proposed to establish the obligation that persons who intend to constitute a multiple banking institution or acquire shares of one that is in operation, certify that they have, among other aspects, honorability and satisfactory credit and business history and that they have not been sentenced for intentional patrimonial crime. It is recognized that the current text is insufficient as it only refers to the commercial letter of credit, and is omitted regarding contingent guarantees that are currently commonly used in both domestic and international operations, therefore, the dictating commission considers it necessary to update the current banking legislation to be in concordance with banking practices in matters of letters of credit, both at the national and international level. Through the modifications, it is sought to update and detail the powers of the National Banking and Securities Commission and, especially, in its capacity as supervisor of credit institutions. For this, the types of visits that the commission can make to said institutions are specified, and it is clearly stated that supervision
will be carried out through the analysis of accounting, legal, economic, financial, administrative, process and procedure information that it obtains, with the purpose of evaluating compliance with the regulations governing credit institutions, as well as their stability and correct functioning. The current Credit Institutions Law establishes that credit institutions may carry out financial operations known as derivatives, provided they comply with the provisions issued by the Bank of Mexico after hearing the opinion of the Ministry of Finance and Public Credit and the National Banking and Securities Commission. Through the proposed reform, that central institution is authorized to, in the exercise of the powers granted to it by the law regulating it, issue the aforementioned provisions without the need to hear the opinion of the other financial authorities. It is also provided that the National Banking and Securities Commission may directly request the publication in the Official Gazette of the Federation of provisions and general rules, as well as administrative acts issued by said decentralized body within the scope of its competence, in accordance with the laws relating to the Mexican Financial System. The purpose of this is to expedite the

publication procedure in the aforementioned Journal, since, given the nature of these acts, it is imperative to make them known to their recipients in a prompt and timely manner.
Likewise, it is recognized as an objective the strengthening of the corporate governance of development banking institutions, through the creation of an audit committee (sic) and a human resources and institutional development committee. The audit committee (sic) may submit to the board of directors the projects, programs and other matters related to its powers.
The commission considers it prudent to reform the General Law of Titles and Credit Operations, in order to update the limits of the maximum amounts for the issuance of bearer checks, as well as for the blank endorsement of checks, so that the respective amounts are not very high and, with this, illicit acts that are currently carried out with said instruments are discouraged.
Notwithstanding the foregoing, this commission considers making some clarifications and adjustments to the initiative in the following articles of the Credit Institutions Law:
1) Article 7 Bis 2. A second paragraph is added to the article in reference in order to establish the characteristics of the provisions in which the requirements and the documentation that must accompany the request to obtain the recognition of a self-regulatory organization will be indicated, with which greater legal certainty is granted to the associations or guild societies of credit institutions that are interested in requesting the recognition in question, satisfying in this way the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.
2) Article 12. It is added with the intention of establishing that in the case that the National Banking and Securities Commission authorizes that shares be paid in kind, said authorization is issued, taking care of the liquidity and solvency of the institution in question, with which an element is added that grants greater legal certainty to the participants.
3) Article 17. It is added with the intention of establishing that the general rules issued by the National Banking and Securities Commission in order to detail the information that must be provided in the case that it is intended to acquire directly or indirectly more than five percent of the paid ordinary social capital, or to grant guarantees on the shares that represent said percentage, must have as their purpose the preservation of the sound development of the banking system in Mexico, satisfying in this way the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.
4) Article 19. Adjustments are made to the text in order to give it greater clarity. Likewise, it is established that the provisions and criteria that are issued in accordance with the article in question must take into account for their elaboration or issuance, as appropriate, the procurement of the solvency of the institutions and of a sound development of the banking system, as well as the protection of the payment system and the public saver, satisfying in this way the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.
5) Article 22 Bis. It is added and modified with the intention of having a more adequate wording, relocating the reference to control and relevant executive as new sections II and III, respectively.
Likewise, the reference to "business group or consortium" is included instead of "financial group", in order to establish a more (sic) complete and adequate reference that allows identifying also those individuals or legal entities that are linked through legal entities other than financial groups.

6) Article 27. It is reformed to provide that for the merger of two or more multiple banking institutions, in addition to the opinion of the Bank of Mexico, the opinion of the Federal Economic Competition Commission will be required.

7) Article 27 Bis. It is added with the intention of establishing that the related documentation that the National Banking and Securities Commission may require in its case must be based on the fulfillment of its supervision and regulation functions, thereby providing legal clarity on the elements that must be considered in the aforementioned application.

Likewise, it is stated that in cases where the aforementioned commission grants the authorization referred to in the article in question, consideration must be given to the non-impact on the interests of the counterparties of the institutions, monitoring that there is no opposition from creditors.

8) Article 28. It is reformed to provide that for the revocation of the authorization of a multiple banking institution, in addition to the opinion of the Bank of Mexico, the opinion of the Bank Savings Protection Institute will be required.

9) Article 29 Bis 2. It is reformed to provide that to abstain from revoking the authorization of a multiple banking institution under the terms of the article and that it is under a conditional operation regime, in addition to the opinion of the Bank of Mexico, the opinion of the Bank Savings Protection Institute will be required.

10) Article 30. It is added to the original project to clearly establish the legal framework applicable to the various acts carried out by national credit societies in the contracting of operations and services, precisely delimiting the cases in which the Law on Acquisitions, Leasing and Services of the Public Sector will be applicable.

11) Article 41. It is modified with the intention of establishing that the institutional development committee of development banking institutions will also propose the remunerations corresponding to the experts who participate in the support committees constituted by its board of directors.

12) Article 42. It is added to grant the faculty to the labor unions of the workers of the development banking institutions to participate in the determination of the general working conditions of the aforementioned institutions, thereby granting greater legal protection to their workers.

13) Article 45-H. It is added with the intention of stating that the provisions to which the authorizations granted by the National Banking and Securities Commission under the reference article will be subject must have as their purpose to promote the sound development of the banking system, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

14) Article 45-O. It is added to establish provisions especially designed for those institutions that maintain business or patrimonial links with legal entities that carry out business activities, with which a more complete and efficient regulatory framework will be available that contemplates the new business options currently being developed.

15) Article 45-P. It is added to establish definitions of some of the concepts used in the reference chapter, thereby granting greater legal certainty to intermediaries regarding the scope of the mentioned concepts.

16) Article 45-Q. It is added with the intention of clearly delimiting the limits to which credit institutions that maintain business or patrimonial links with legal entities that carry out commercial business activities must be subject, establishing the obligation to maintain operational independence notwithstanding the existing link.

17) Article 45-R. It is added with the object of clearly establishing the guidelines to which multiple banking institutions that maintain business or patrimonial links with legal entities that carry out business activities must adhere, regarding the integration of their boards of directors, as well as for the designation of their general managers or officials occupying the two immediate lower hierarchies to that, with which it is sought to minimize the influence of persons who for any of the reasons detailed in the same article could influence the administration and direction of the institutions in question.

18) Article 45-S. It is added to establish the parameters under which multiple banking institutions will carry out operations of any type with the members of the consortium or business group to which they belong, through obligations such as carrying out operations under market conditions, carrying out transfer pricing studies, and submitting reports to the National Banking and Securities Commission, with which it is intended that the operations carried out by the aforementioned institutions be carried out in strict compliance with the legal framework, avoiding regulatory arbitrage.

19) Article 46. It is added with the intention of clearly establishing the legal approach of the provisions that the Bank of Mexico will issue in accordance with what is stated in the reference article, as well as to state that they will seek to promote the development and proper functioning of payment systems, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

In addition to the above, acting as insurance agents is included within the catalog of operations that credit institutions can perform, provided that what is established in the General Law of Insurance and Mutual Society Institutions and the general provisions emanating from it are complied with.

20) Article 46 Bis. It is added with the aim of increasing protection for the public saver, establishing the obligation for multiple banking institutions to certify, both at the start of their operations and in the case that they intend to carry out operations additional to those originally authorized, that the governing bodies and corporate structure they have are adequate to carry out the operations they intend to perform, also stating that the provisions that, by virtue of the reference article, the National Banking and Securities Commission issues must have as their purpose the procurement of the proper functioning of multiple banking institutions, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

21) Article 46 Bis 1. It is added to state that the general provisions, in matters of contracting of services or commissions necessary to carry out the operations provided for in Article 46 of this law, issued by the National Banking and Securities Commission, must have as their purpose the establishment of technical and operational guidelines, as well as the protection of the information of users of the banking system, which may establish individual and aggregate limits for the celebration of operations and the types of services to which they will be applicable.

In addition to the above, it is established that the financial secrecy referred to in Article 117 of the law will be applicable to the third parties contracted under the terms of this article, as well as to their representatives, executives, and employees.

Likewise, it is complemented by establishing that prior to the ordering of the partial or total, temporary or definitive, suspension of the provision of services or commissions through the third party in question, the National Banking and Securities Commission must hear the arguments that, if applicable, it considers pertinent from the institution in question, thereby guaranteeing respect for the constitutional order.

22) Article 46 Bis 3. The present provision is relocated to give the legal body greater order and coherence in the topics regulated. Likewise, the restriction relative to the celebration of operations in which their officials or employees or persons holding any position, mandate, commission, or any other title, their ascendants or descendants in the first degree, as well as their spouses, may become debtors of the credit institutions is eliminated, due to being considered an excessive limitation for the aforementioned persons.

23) Article 46 bis 4. The present provision is relocated to give the legal body greater order and coherence in the topics regulated.

24) Article 46 Bis 5. It is relocated so that the text of the new reference article, previously established in Article 106 of the Law of Credit Institutions (Prohibitions to credit institutions), adjusts to the current criteria of the Supreme Court of Justice of the Nation, avoiding that, in a contradictory manner, the original scope attached to the cited article by the legislator is modified, by enabling an authority or organism other than, on a discretionary basis, to determine cases of exception to a conduct prohibited by the text of the same article.

25) Article 46 Bis 6. It is added with the purpose of recognizing payments made through foreign payment systems, so that the legal tender currency in the United Mexican States can be operated in the CLS system.

26) Article 47. It is added with the intention of granting greater stability and legal certainty to the workers of the development banking institutions, limiting them in the contracting of services provided by third parties or other credit institutions, for the carrying out of the banking operations and services provided for in Article 46 of the Law of Credit Institutions, and in their respective organic laws.

27) Article 50. It is added with the intention of establishing that the provisions issued based on the present article, in addition to being general, must have as their base the safeguarding of the solvency and financial stability of credit institutions, as well as the protection of the interests of the public saver, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

28) Article 55. It is modified to establish that for the purposes of computing the limits referred to in fraction III of the article in question, the basic part of the net capital must be considered without diminishing the investments that the institution in question has made based on what is provided by Article 89 of the Law of Credit Institutions, thereby providing greater clarity to the computation of the aforementioned limits.

29) Article 57. It is modified to state that through general provisions, the term for the cancellation of domiciliation services to take effect will be established, which shall not exceed ten days, thereby adapting the mentioned term so that in practice it allows credit institutions to fully comply with what is provided in the present article.

30) Article 65. It is added to establish that the prudential provisions, in matters of credit and risk management, issued by the National Banking and Securities Commission must have as their purpose the procurement of the solvency of credit institutions, as well as the protection of the interests of the public, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

31) Article 66. It is added to the original project so that the text of the reference article adjusts to the current criteria of the Supreme Court of Justice of the Nation, in matters of general administrative rules, avoiding that, in a contradictory manner, the original scope attached to the cited article by the legislator is modified, by enabling the administrative authority, on a discretionary basis, to determine cases of exception to a conduct prohibited by the text of the same article.

32) Article 72 Bis. It is modified to state that through general provisions, the term for the cancellation of domiciliation services to take effect will be established, which shall not exceed ten days, thereby adapting the mentioned term so that in practice it allows credit institutions to fully comply with what is provided in the present article.

33) Article 73. It is added to provide greater legal clarity to the text of the reference article, regarding the definition of operations with related persons, within which the term of availabilities is included instead of deposits, as it is a broader and more adequate term for the purposes of the reference provision.

34) Article 75. The text of the article is added to expand the universe of operations that credit institutions can carry out with societies other than those indicated in Articles 88 and 89 of the Law of Credit Institutions, including the possibility of acquiring purchase or sale obligations of titles representative of capital, as well as carrying out future capital contributions.

Likewise, it is established that in the general provisions issued under the terms of this article, it may be determined the cases in which it will be considered outside the limit for investments or obligations on shares of companies listed on stock exchanges, belonging to fraction I of the reference article, the net positions of the titles representative of the capital of the same, including the obligations on them, with which a more adequate provision is available to current market conditions, which delimits with greater clarity the limits to carry out the referred investments.

35) Article 76. It is added with the intention of clearly establishing the legal approach of the provisions that the National Banking and Securities Commission will issue in accordance with what is stated in the reference article, as well as to state that they will seek to ensure the solvency and stability of the institutions and the reliability of their financial information, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

36) Article 81. Adjustments are made to the wording of the article in question and the content of the provisions that, in accordance with what is stated therein, the Bank of Mexico will issue is detailed, thereby establishing a foundation strictly adhering to the law, taking into consideration that these are rules of general observance in its branch of a technical-operational nature, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

37) Article 88. It is added with the intention of clearly establishing the parameters to which the elaboration of the general rules referred to in the article we occupy will be subject, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

Likewise, it is established that the prohibition referred to in the last paragraph of Article 96 of this law will not be applicable to the services that institutions obtain from societies in which they invest under the auspices of the aforementioned article, as well as those they contract with their subsidiaries or other financial entities that are part of the financial group to which the institution itself belongs.

38) Article 92. It is added with the intention of establishing the obligation that persons with whom credit institutions have established a business link for the receipt of monetary resources for deposit in account, must always act before the public as service providers or commission agents of the aforementioned institutions, thereby avoiding any type of confusion or abuse regarding the use of this type of services.

39) Article 93. It is modified so that the text of the reference article adjusts to the current criteria of the Supreme Court of Justice of the Nation, avoiding that, in a contradictory manner, the original scope attached to the cited article by the legislator is modified, by enabling the administrative authority, on a discretionary basis, to determine cases of exception to a conduct prohibited by the text of the same article.

40) Article 94. It is added so that multiple banking institutions that associate in any way with legal entities that carry out business activities, carry out the acts that are necessary so that the content of the advertising they disseminate avoids generating confusion among the clients of the aforementioned institutions, regarding the independence between the institution and the legal entity in question.

41) Article 94 Bis. It is added to equip the National Banking and Securities Commission with the faculty to issue provisions that establish the sound commercial practices that credit institutions must follow in the provision of their financial services.

42) Article 96. It is modified and added to establish the obligation that credit institutions ensure that the establishments that use persons who, if applicable, have contracted to carry out operations on their behalf, have the basic security measures that, in accordance with the article in question, will also be applicable to them.

43) Article 99. It is added with the intention of clearly establishing the parameters to which the elaboration of the general rules referred to in the article we occupy will be subject, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

44) Article 101. It is added with the intention of clearly establishing the parameters to which the elaboration of the general rules referred to in the article we occupy will be subject, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

45) Article 101 Bis 1. The National Banking and Securities Commission is allowed, in addition to recognizing the external audit norms and procedures that legal entities provide to credit institutions, to issue them.

46) Article 102. It is added with the intention of stating the parameters to which the establishment of the rules referred to in the article we occupy will be subject, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.

47) Article 106. It is added with the intention of clearly establishing that the authorization referred to in fraction XII of the reference article can be carried out through general provisions, thereby granting greater transparency and legal certainty regarding its application.

48) Article 119. It is added with the purpose of establishing the terms under which the existence of market concentrations will be considered in terms of the Federal Competition Law

Economic (conditioning access to the provision of goods or services by one or the other economic agent, to the celebration of operations with the respective multiple banking institution or exclusive establishment or imposing the opening of accounts or the use of payment means of the multiple banking institution linked to the respective legal entity). Likewise, to protect sound market practices, it is established that the National Banking and Securities Commission shall notify the Federal Economic Competition Commission when it detects the existence of any of the practices mentioned in the aforementioned article.

49) Article 134 Bis 1. It is modified in order to eliminate a drafting error by referring to guaranteed obligations, it should read subordinated obligations.
Likewise, the scope of application of the corrective measures referred to in the aforementioned article is detailed with greater clarity, thereby providing greater clarity and legal certainty regarding its application.

50) Article 137 Bis. It is added with the intention of indicating that the suspension of operations that, based on the article in question, the National Banking and Securities Commission determines, must be carried out only when the purpose is to safeguard the solvency of credit institutions, thereby satisfying the design required by the constitutional order for general administrative rules, in accordance with the current criteria of the Supreme Court of Justice of the Nation.
In addition to the above, it is proposed to modify the following article of the General Law of Credit Instruments and Operations, regarding the initiative presented by the Executive:

51) Article 392 Bis. It is reformed with the aim of establishing that the conversion into liquid resources that fiduciary institutions may carry out, shall be among the available options that maximize recovery, and that expenses arising from the same may be deducted from said resources.

The following additional transitional articles are also proposed to the initiative presented by the Executive:

52) Transitional Sixteenth. A deadline is established for credit institutions to carry out the modification of their corporate bylaws that this decree implies.

53) Transitional Seventeenth. It is incorporated in order to establish the deadline by which credit institutions that have established business links with persons who, upon the entry into force of the aforementioned decree, are carrying out operations under the protection of Article 92, must adapt to what is stated in said article and in the general provisions referred to in Article 46 Bis 1 of the aforementioned draft.

54) Transitional Eighteenth. It is included with the purpose of establishing the deadline by which institutions that fall under the circumstances of links with legal entities that carry out business activities must adjust to what is provided in Chapter IV of this decree.

55) Transitional Nineteenth. It is included to establish the terms of application of what is provided in the last paragraph of Article 45-R, in order that the acquired rights of multiple banking institutions are not affected. With this, persons who currently work in them and who have extensive experience in the financial sector, will not have the aforementioned provision applied retroactively. Likewise, it is foreseen that for future appointments exclusively for the positions currently occupied by officials who do not comply with what is provided in Article 45-R, the restrictions provided in the aforementioned provision will not be applicable to them, so as not to apply it retroactively.

For all the above, the Commission that reviews the bill considers that it should be approved and submits it to the consideration of the Plenary Session the following

STATEMENT OF MOTIVES
(Decree of April 9, 2012)
In our country, in the federal sphere, 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 vested in a single individual who is called President of the United Mexican States.

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

In this way, the Organic Law of the Federal Public Administration establishes the bases for the organization of the Federal Public Administration, centralized and para-state.

According to this Law, the President of the Republic is assisted, in the exercise of his attributes and for the management of administrative affairs of order that are entrusted to each of the State Secretariats and para-state 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,

For its part, decentralized agencies, state participation companies, national credit institutions, national auxiliary credit organizations, national insurance and surety institutions and trusts, make up the para-state 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 management of administrative affairs, the Executive Power has the following Administrative dependencies:

Ministry of the Interior.
Ministry of Foreign Affairs.
Ministry of National Defense.
Ministry of the Navy.
Ministry of Public Security.
Ministry of Finance and Public Credit.
Ministry of Social Development.
Ministry of Environment and Natural Resources.

Ministry of Energy.
Ministry of Economy.
Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food.
Ministry of Communications and Transportation.
Ministry of Public Function.
Ministry of Public Education.
Ministry of Health.
Ministry of Labor and Social Welfare.
Ministry of Agrarian Reform.
Ministry 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 the public administration has evolved, such that the competencies of the administrative organs that make it up have been redistributed or reassigned on several occasions.

Competence consists of a series of legal powers and obligations that the legislation attributes to the organs of the administration. This, fixes the circumstances in which the organ has the obligation to act or abstain 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 will be circumscribed. And linked to competence is the denomination that each administrative organ receives, which establishes the attributes that correspond to each of these.

It is for this reason, that the denomination that the organs of the public administration receive must be consistent throughout our legal order. The lack of timely updating of the denominations of the dependencies in the different federal laws has had harmful consequences on 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 everyday 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 the human exchanges that constitute the matter 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: to give 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 denomination of the various dependencies of the Federal Public Administration in all laws and in the various instruments in which reference is made to them, since if this is not done, a lack of legal logic and certainty is promoted, not only by the simple denomination of the dependency, but by the inconsistencies and possible contradictory effects when these entities do not respond punctually to the denominations that are found in the 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 of rubric: "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 exactness and precision in the citation of legal norms, which empower the administrative authority to issue the act of annoyance in question, by attending to the legally protected value by the constitutional requirement, which is the possibility of granting certainty and legal security to the individual before the acts of the authorities that affect or injure 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. Reporter 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 of October 31, two thousand one, with the rubric: "Administrative authorities. They are obliged 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 a competent authority and comply with the essential formalities that give them legal efficacy, which means that every act of authority must be issued by whoever is legitimized for it, expressing in the act itself of annoyance, the device, agreement or Decree that grants such legitimation, since if not, the governed is left in a state of defenselessness by not being able to examine if the action of the issuing authority is within the respective competency scope".

c. Appendix to the Judicial Seminar of the Federation 1917-1995, Volume VI, Common Matter, page 111, thesis 165 of rubric: "Competence. Its justification is an essential requirement of the authority's act." Matters: 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 legal 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 federal laws, in which reference, validity and responsibility are still given to dependencies and institutions that no longer exist; or to institutions that have changed their denomination and even their functions.

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

In addition to the above, 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 denominations of some State Secretariats were updated and the Administrative Departments, from which mention was made 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 this initiative is to follow up and continue the task of the Mexican Congress, to update in all Federal Laws the current denominations of all the State Secretariats 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 denomination of the state secretariats can be reflected in the respective laws, it is attached with this initiative in an electronic device, a database of the federal laws in which its articles make reference to various institutions and dependencies, updated their denominations including the changes included in this initiative. This database will allow the respective laws to be updated, 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 stated and founded, it is submitted to the consideration of this Sovereignty the following:

STATEMENT OF MOTIVES
(Decree of January 10, 2014)
Development Banking over the years has been a promoter of savings and investment in the development of the financial system, the growth of the industrial plant and projects of great regional impact, as well as large infrastructure works, companies and sectors key to national development. However, it is necessary that Development Banking has better tools to expand access to credit for those who have financing needs since, even having the ability to pay, they are not given the facilities to obtain resources that allow them to acquire the necessary support to raise their economic development.

Development Banking has been a complementary alternative to the private financial sector. The promotion system has as one of its functions, completing markets seeking to promote the participation of the private sector without competing with said sector. The resources of the federal government are not sufficient to finance the total development of the country, hence the need to potentiate them and use them as inducers of the participation of the private sector, efficiently.

In addition to this, regarding control mechanisms, professional administrations are available that adhere to sound banking practices and observe a regulation similar to that of commercial banking. Nevertheless, Development Banking must achieve a greater impact on the economy, consolidate the capabilities it has to resolve the problems of the sectors it attends and advance in the promotion of financing for small and medium-sized enterprises, support Mexican exporting companies and the opening of new markets, allowing, in turn, the importation of capital goods to make the country more productive.

For this reason, it is necessary to support Development Banking with a regulatory framework that, attending to the strength of its balance sheet, allows it at the same time to instrument policies that add to both the creation and preservation of jobs and investments, and that also contributes, in an effective and efficient manner, to the productive activity of the country, the creation of value and growth of the countryside and that, in turn, allows and supports popular savings for the benefit of the well-being of Mexican families.

The main objective of this initiative is to flexibly regulate the framework governing Development Banking, in order to contribute to the development of the financial system and strengthen the institutions themselves.

The strength of Development Banking comes mainly from the support it grants the Federal Government, which allows to trigger credit in productive and strategic activities that would not otherwise receive it. For this effect, it is required: (i) that in the legal framework its mandate is clearly defined, (ii) that unnecessary restrictions are not imposed on it and (iii) that it allows it to obtain the indispensable elements for its compliance, in order to manage its resources effectively for the benefit of the country.

In this sense, this initiative strengthens Development Banking by clarifying its mandate, in which it is specified that this is the promotion of the economy through the attention of strategic sectors that face limitations to having access to financing alternatives; likewise, unnecessary restrictions for its development are eliminated; and thirdly, the regulatory framework is modified to ensure that Development Banking can obtain the resources it requires for the fulfillment of its mandate, mainly human capital, necessary for good management, granting it flexibility to manage them appropriately. With these elements, clear and solid bases are laid for good management.

The success of Development Banking will be determined by the capacity of its administrators and governing bodies, to carry out adequate diagnoses of the sectors fixed as objectives that must be attended, as well as their capacity to generate programs and products, complementary to public policies that adequately resolve the specific problem that afflicts at each moment the strategic sectors. The proposed regulatory framework lays the foundations for this management to be successful and productive, but it does not replace the effort that must accompany it, which must be demanded from Development Banking at all times.

In order for Development Banking to be able to fulfill its object more efficiently and agilely, its operation must be modernized, so it is considered necessary to make modifications to various legal instruments, in order to strengthen its action and operation, endowing it with greater management autonomy, facilitating the granting of credit by its institutions, flexing its investments and freeing it from additional restrictions to those of multiple banking.

1.- Mandate of Development Banking institutions: Inclusion, Promotion of Innovation and Gender Perspective.

Currently the mandate of Development Banking establishes that in the development of its functions it must preserve and maintain its capital, which has led to inhibiting the granting of credit by confusing a restriction that must be imposed on the fulfillment of its mandate to seek a prudent management of entrusted public resources; with the very object of Development Banking. Regarding this, it is proposed that institutions have as their fundamental mandate to facilitate access to credit and financial services, determining rates, terms, risks of operations and types of business.

It is privileged as an objective, to strengthen Development Banking to expand credit with special emphasis on priority areas for national development, in accordance with what is provided in commitment 62 of the Agreements for economic growth, employment and competitiveness of the Pact for Mexico. The expansion of access to financing and financial services will generate the conditions for greater economic activity and, therefore, an economic growth, generating a virtuous circle of investment and growth.

Without prejudice to the foregoing, the importance is recognized that institutions ensure their sustainability through the efficient, prudent, and transparent channeling of resources. In this way, officials and Boards of Directors of Development Banking will be allowed to formulate programs for their target sectors that involve incurring measurable and predictable risks, as well as projects with longer maturation periods, without affecting medium-term sustainability.

Additionally, it is proposed to add a fraction IX Ter to article 42 of the Credit Institutions Law, through which the authority will be granted to determine rates, terms, risks of operations, and types of business, among others, which will allow them to adjust their strategic plans to make more efficient use of resources and support sectors that, in terms of said policies, require financing.

Additionally, in accordance with what is provided in numeral 2.7 of the Pact for Mexico “Transforming banking and credit into a lever for the development of households and businesses,” and aware of the importance that human development represents, that access to financing be generalized for men and women and that the generation of new ideas be promoted; it is established that Development Banking must create programs for the attention of the priority areas of national development that promote financial inclusion.

Likewise, it is foreseen that Development Banking offer financial services that foster innovation, the creation of patents, the generation of other industrial property rights, and provide technical assistance and training in the matter.

Consequently, it is proposed to establish specific programs and products to address the gender perspective and promote equality between men and women.

2.- Human Resources

In addition to the explicit and implicit capital and backing that the Government provides to Development Banking, which allows it to absorb risks and thus boost economic activity, the main element with which these institutions have is their human capital. Quality human resources are those that will allow Development Banking to effectively and agilely fulfill its mandate.

A limitation to expanding the financing of Development Banking to new sectors and operations has been the ability to recruit and, above all, to organize in an agile and effective manner the human resources that have the necessary profile to create new tools, programs, or conduct in-depth credit analysis, as this requires experience in various specialized sectors. Likewise, difficulties have been found in retaining the talent developed within the institutions themselves, as when this talent matures, it is often recruited by private sector institutions that offer career opportunities against which Development Banking is impossible to compete.

In this regard, it is considered necessary that development banking institutions provide remunerations that aim to recognize labor effort and contribution to the achievement of the institution's objectives, establishing for this purpose a manual of remunerations, pensions, rights, and obligations specific to the trusted workers in the proposal for reform to article 43 Bis of the Credit Institutions Law and to article 3 of the Regulatory Law of Fraction XIII Bis of Section B, of Article 123 of the Political Constitution of the United Mexican States; since these perform qualified technical work and with specialization in their various functions aligned with the institution's objectives, they will allow delivering better results to society. Thus, development banking institutions will have high-level professional workers whose incentive is the various benefits in order to deliver high-level results, remaining within the institution.

Additionally, as a transparency measure, it is established that development banking institutions must include their approved pay scales in their respective budget proposals and report on the amounts allocated for the payment of remunerations, pensions, and other benefits when rendering the Public Account.

2.1.- Human Resources and Institutional Development Committees.

It is proposed to have human resources committees that can propose adequate structures and remunerations and that take into account the situation of the labor market in the Mexican financial system according to the criteria determined by the Ministry of Finance and Public Credit, who will preside and have a casting vote; this will allow banks to have greater autonomy to organize their internal structures while the participation of government departments will occur in the context of their participation in governing bodies, thus ensuring that their decisions are always oriented toward procuring the best functioning of the bank.

Likewise, it is intended that the General Director of the Society abstain from participating in Committee sessions that aim to issue opinions or recommendations regarding their salary, economic benefits, and social security.

This Committee will advise and propose in terms of general working conditions, salary and benefit scales, wage policy, and the granting of extraordinary perceptions for the fulfillment of goals subject to performance evaluation; promotion and advancement policies; selection, recruitment, and training guidelines; separation criteria; and other economic and social benefits established for the benefit of public servants working in each Society.

The Ministry of Finance and Public Credit will establish criteria regarding occupational structure, salary movements, extraordinary perceptions, and benefits, which must be observed by the Committee; likewise, the Society will provide the aforementioned Ministry with the information it requests.

It is proposed that, in order to homologate the legal framework of Development Banking, the Undersecretary of Finance and Public Credit be the one who presides over the Committee, having a casting vote in case of a tie; in the absence of the Undersecretary, the Head of the Development Banking Unit will preside over the Committee and exercise the casting vote.

2.2.- Authority of the Board of Directors to Approve the General Working Conditions of the Institution and the Manual of Remunerations, Pensions, Rights, and Obligations.

In the current text, fraction XVIII of article 42 of the Credit Institutions Law establishes as the authority of the Board of Directors the approval of General Working Conditions, while according to fraction XIX of the cited article, said governing body can only issue an opinion regarding this matter.

In this sense, it is proposed to reform the aforementioned fractions, in order for the Board of Directors to approve General Working Conditions proposed by the Human Resources and Institutional Development Committee, taking into account the opinion of the union where applicable, which will provide legal certainty to public servants working in Development Banking institutions.

Likewise, fraction XIX Bis of article 42 of the Credit Institutions Law is incorporated as the authority of the Board of Directors to approve the manual of remunerations, pensions, rights, and obligations of trusted workers, also proposed by the Human Resources and Institutional Development Committee.

3.- Flexibilization of the operation of development banks.

3.1.- In matters of human resources.

It is proposed to reform fraction XVIII of article 42 of the Credit Institutions Law in order to establish that the Board of Directors approves, without requiring additional authorizations from any dependency of the Federal Public Administration, the organizational structure, wage policy, salary and benefit scales, as well as the granting of extraordinary perceptions for the fulfillment of goals subject to performance evaluation and other actions it has, attending to the proposals of the Human Resources and Institutional Development Committee; this will allow the Board of Directors to focus its decisions on strategic operational matters of the institution.

In order to extend and make congruent the modification to the Credit Institutions Law, this attribution is reflected in each of the corresponding organic laws.

3.2.- Restrictions of Multiple Banking unnecessarily extended to Development Banking.

The restrictions contained in article 106, fractions XVI and XVII, of the Credit Institutions Law, were established in order to prevent resources destined to capitalize banks from originating in the institution itself or that such resources remain in the same group, as this discourages the contribution of resources, seeking thereby to ensure better capitalization of credit institutions.

However, the prohibitions contained in the aforementioned fractions, by providing that they apply to credit institutions, have an impact on Development Banking, preventing them from taking shares of financial institutions as collateral or acquiring certain titles or securities issued by them.

As a result of the foregoing, it is proposed to add a paragraph to article 47 establishing that these restrictions are not applicable to Development Banking, and that there will be no concentration of capital whatsoever, except by the Federal Government, as they are public entities and by virtue of being the Government's own capital.

With this reform, the financing options provided by Development Banking will be expanded to facilitate the extension of credit to companies in which it may eventually be necessary to take control in unfortunate events such as the collection of collateral, in order to safeguard the payment of credit.

The prohibition on acquiring shares of other credit institutions or receiving them as collateral aims to prevent such institutions from artificially increasing their capital through cross operations; however, in the case of Development Banking, there is no motivation to perform such operations. Maintaining the prohibition would imply that Development Banking could not support financial entities in case they required capitalization, as has proven necessary in other countries.

3.3.- Of the investments of Development Banking.

Articles 75, 88, and 89 of the Credit Institutions Law provide that Development Banking institutions may make investments in the social capital of various types of societies if they are authorized to do so in their respective legislation.

The foregoing constitutes an additional unnecessary regulation to which Development Banking is subject compared to multiple banking and that affects its operation, due to the fact that private banking can make the aforementioned investments by provision of the Credit Institutions Law itself.

Therefore, it is considered necessary to carry out a reform to articles 75, 88, and 89 first paragraph of the Credit Institutions Law to establish that credit institutions, including both multiple banking and development banking institutions, may make investments in the companies referred to in said legal provisions.

Regarding the investments of Development Banking in the companies provided for in article 75 of the Credit Institutions Law, fraction III of the same article provides that in the case of investments by percentages greater than 15% of the capital of the company in which participation exists and for terms greater than three years “when it concerns companies that develop new long-maturity projects or carry out activities susceptible to promotion,” authorization from the National Banking and Securities Commission will be required; however, the second paragraph of the same article establishes that when the investments of Development Banking institutions are made regarding companies that carry out “activities susceptible to promotion,” the authorization will correspond to the Ministry of Finance and Public Credit, and for this purpose, this dependency will determine which activities are promotional.

In this sense, in the current text of this fraction, it is not clearly determined the investments that Development Banking can make to support venture capital, as the phrase “activities susceptible to promotion” applies by definition to all general activities carried out by Development Banking or promotion banking, as it is also called.

For this reason, it is proposed to add a fraction IV to the cited article 75 of the Credit Institutions Law to establish that in the case of development banking institutions, investments by percentages and terms greater than those previously stated may be made when it concerns companies that carry out activities related to their object. With this precision in the text of the law, greater legal certainty will be granted by indicating in which cases Development Banking can make this type of investment.

3.4.- Empower the Board of Directors to issue norms or general bases for the contracting of services, as well as for the assignment of assets and liabilities of the institution.

Currently, it is established in article 42, second paragraph, of the Credit Institutions Law, that the Board of Directors, representing the institution, may agree to carry out all operations inherent to its object.

In this sense, it is proposed to reform fraction X of article 42 of the Credit Institutions Law, in which it is established as an authority of the Board of Directors the approval of policies and general bases for the contracting of services required by the institution to carry out its operations.

The foregoing will allow the governing body to be expressly authorized to determine the most efficient way to carry them out, and if possible, contract some operations with third parties or consolidate the operation of areas among various development banks.

On the other hand, fraction XI Bis of article 42 of the Credit Institutions Law establishes the authority of the Board of Directors to approve the assignment of assets and liabilities of the institution, which obligates these operations to be conditioned to the consent of the governing body, so it is proposed to reform said fraction, in order for the Council to approve the norms or general bases for the assignment of assets and liabilities of the institution, determining in case, the particular operations that must be submitted to the Council itself, thus avoiding that it have to authorize each of the operations.

4.- Transparency in the collection of fees from development banking institutions.

In article 10, fifth paragraph, of the 2013 Federal Revenue Law, it is established that when the Ministry of Finance and Public Credit establishes a fee due to the sovereign guarantee of the Federal Government or in the case of recoveries of capital from development banks, the resources obtained can be destined to their capitalization or to promote actions that allow fulfilling the mandate of said banking.

In order to hear the institutions previously within the procedure for the collection of fees, it is planned to include the authority of the Board of Directors to propose to the Ministry of Finance and Public Credit the terms and dates for the payment of fees that arise, for which it is proposed to add to article 42 a fraction VIII, in which the proposal of terms and dates for the payment of fees that arise due to the sovereign guarantee of the Federal Government will be agreed, which will be presented to the Ministry of Finance and Public Credit, as well as the capital requirements of the institution.

5.- Financial Intermediation.

In article 31 of the Credit Institutions Law, it is established that development banking institutions will formulate annually their operational and financial programs, their general budgets of expenses and investments, as well as income estimates.

Likewise, it is established that National Credit Societies must submit to the authorization of the Ministry of Finance and Public Credit, the limits of net external and internal indebtedness; net financing and the limits of financial intermediation. For the purpose of the foregoing, the Ministry of Finance and Public Credit must make known the concepts that integrate financial intermediation in the Report on the economic situation, public finances, and public debt, as applicable.

In this regard, it is proposed that financial intermediation be defined in article 31 of the Credit Institutions Law and contain at least the net constitution of preventive credit reserves plus the operational deficit of development banking institutions.

6.- Functioning of Development Banking

6.1.- Control and Surveillance.

It is proposed to add an article 44 Bis to the Credit Institutions Law, regarding the surveillance of development banking institutions in order that the Public Function Secretariat and internal control bodies only have competence to carry out control and surveillance of development banking institutions and Rural Financial, in the following matters:

• Budget and fiscal responsibility;
• Contracting derived from the Laws on Acquisitions, Leasing, and Services of the Public Sector and Public Works and Related Services;
• Conservation, use, destination, affectation, alienation, and write-off of movable and immovable property;
• Administrative responsibilities of public servants, provided that it is not the competence of the National Banking and Securities Commission, and
• Transparency and access to public information.

This system of control and surveillance in banking matters, in accordance with best practices, will avoid duplication of functions and unnecessary administrative burdens. The National Banking and Securities Commission, the Bank of Mexico, and the Ministry of Finance and Public Credit would review the banking part within their competence, and the Public Function Secretariat through its internal bodies will have competence to carry out control, evaluation, and surveillance of the administrative provisions applicable to development banking institutions in the aforementioned administrative matters.

In congruence with the foregoing, what relates to the surveillance of the society in the various Organic Laws of development banks is reformed, to provide that it will be carried out in terms of the Credit Institutions Law and the provisions issued by the National Banking and Securities Commission.

Finally, it is established in the transitional regime that the Congress of the Union will provide a control system for development banking institutions in accordance with their nature and functions, when it issues the regulatory laws referred to in the second paragraph of the transitional article 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.

6.2.- Sessions of the Board of Directors.

It is foreseen that the Board of Directors will focus on strategic matters, eliminating operational matters that it cannot currently delegate and meeting in ordinary sessions at least six times a year.

In this sense, the proposal aims for the meetings of the Board of Directors to be once every two months, validly meeting with at least half of the number of councilors who make up the Board of Directors in each of the banks and Rural Financial; this is always provided that two-thirds of the councilors are met from among the councilors, representing series “A.”

6.3.- Powers of the General Director to Remove Fiduciary Delegates of the Institution and Obligation to Inform the Ministry of Finance and Public Credit on Relevant Operations.

In this point, it is proposed to reform article 43, second paragraph of the Credit Institutions Law, adding the procedure for the designation of special fiduciary delegates of public trusts that are considered paraestatal entities; these designations must be granted by the institution, without procedure before its respective Board of Directors and at the request of public servants or competent bodies of the corresponding public trust, in terms of federal or state legal provisions.

In this sense, in order to extend this authority in the organic laws, the designation and removal of fiduciary delegates, the administration of personnel as a whole, and the establishment and organization of the institution's offices are incorporated.

In addition to the foregoing, it is intended that the General Director of the institution inform the Ministry of Finance and Public Credit prior to the celebration of the governing body sessions, on operations in which potential competence conflicts may arise between the various development banking institutions, in order to determine the applicable policy.

6.4.- Of legal assistance and defense.

In this rubric, it is intended that National Credit Societies be authorized to provide legal assistance and defense services to members of their Board of Directors, committees established by the same or provided by normative provision, as well as to public servants who work or have worked in the institution itself; with respect to the acts that these persons perform 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.

These services will be provided even when the indicated persons cease to perform their functions or provide their services to the Society, provided that it concerns acts performed in the performance of their functions or activities in service of the Society.

The mentioned services will be provided from the resources with which the Society has for these purposes.

In the event that the competent authority issues a definitive resolution against the subject of legal assistance that becomes final, such person must reimburse the Society for the expenses and any other expenditure that the latter has made due to legal assistance and defense.

Finally, it is proposed that the subjects benefited by these services will be obligated to provide reports when requested for this purpose, in terms of applicable legal provisions and considering that these reports are contemplated as part of their functions.

6.5.- Credit analysis.
Development Banking has the priority function of serving sectors that do not have access to financing for various reasons, including risk levels; however, it is currently restricted by the measure provided for in Article 65 of the Credit Institutions Law, which provides that institutions must estimate the payment viability of credits by borrowers or counterparties through a quantitative and qualitative analysis, which allows establishing their credit solvency and payment capacity, which must be observed without prejudice to considering the monetary value of the guarantees offered. With the reform, it is intended to add a fourth paragraph to the cited article, in order to maintain the operation of the productive plant and that in those cases where immediate attention is required, they can be granted considering the viability of the credit against the guarantee, supporting the sectors of the economy that do not have access to financial services and especially, in extraordinary situations such as the current ones where immediate actions are required for the preservation of employment. Likewise, it is highlighted that the recovery of credits is secured with the guarantee exhibited and a prudent operation will be maintained based on current regulation.

6.6.- Constitution of trust to strengthen capital.
The Credit Institutions Law provides for the constitution of a trust in development banking institutions with resources captured by them and aimed at strengthening their capital.
Currently, Development Banking is regulatorily obligated to have high levels of capitalization adjusted to international standards, so it is unnecessary to have the aforementioned trusts. In this sense, the proposal is to repeal Article 55 Bis of the aforementioned Law.

7. Additional reforms to the Organic Laws of development banking institutions.

7.1.- Of the National Bank of the Army, Air Force and Navy, National Credit Society, Development Banking Institution.
Of loans
For the particular case of the National Bank of the Army, Air Force and Navy, National Credit Society, Development Banking Institution, it is proposed to include medium-term loans, the terms and conditions for granting loans and other powers of the Board of Directors; eliminate the maximum caps on short-term loans as well as the prohibition that prevented the granting of another loan while a previous one remained outstanding. With this reform, the institution will be endowed with the faculty to administer the resources affected to the savings and labor funds, which will be destined for the granting of loans in accordance with the terms and conditions authorized by the Board of Directors and the requirements provided for in this Law. The unused amounts will be invested, to foster and finance the activities that have been entrusted to the society in its capacity as a development bank.

7.2.- Of the National Bank for Public Works and Public Services, National Credit Society, Development Banking Institution.
Of the object of the society
In the case of the National Bank for Public Works and Public Services, National Credit Society, Development Banking Institution, (BANOBRAS), the proposal is directed so that, in addition to financing and refinancing, support is given to projects related directly or indirectly to public or private investment.
In that sense, Article 3 of the Organic Law of the National Bank for Public Works and Public Services is reformed.
Of guarantees and sureties
For BANOBRAS to be able to grant guarantees and sureties without the need to obtain authorization from the Secretariat of Finance and Public Credit on equal legal footing with the other entities of Development Banking, it is proposed to reform fraction VI of Article 7 of its organic law.
Trust contracts
It is proposed to empower BANOBRAS to act as trustee and beneficiary and to carry out operations with the society itself in compliance with trusts, the foregoing in accordance with what is established by Article 46, fraction XV of the Credit Institutions Law.

7.3.- Of the Federal Mortgage Society, National Credit Society, Development Banking Institution It is proposed to update the reference made in Article 4, fraction VI of the Organic Law of the Federal Mortgage Society, National Credit Society, Development Banking Institution (SHF), since the current text refers to the fact that the society may carry out the celebration of contracts to cover, totally or partially, the risks assumed by the Society for the provision of consulting services, it should refer to the operations established in fractions V and V Bis of the same article. Sovereign Guarantee In accordance with the fourth paragraph of the second transitory article of the Decree by which the Organic Law of the Federal Mortgage Society is issued, added on June 24, 2002 (errata of July 8, 2002), it was established that the obligations contracted by the SHF from January 1, 2014, would not have the guarantee of the Federal Government. Regarding this, it is considered that for the SHF to fulfill its purpose, it will require continued funding through the issuance of securities in financial markets, for which it must have the guarantee of the Federal Government, which will allow it to access better conditions (e.g. rates and terms). To this end, the Federal Government must respond for the passive operations contracted by the society, both with national natural and legal persons and with foreign private, governmental and intergovernmental institutions. To this effect, it is proposed to add an Article 8 Bis to the Organic Law of the Federal Mortgage Society through which this case is provided for and thus have the same guarantee as the other development banking institutions.

7.4.- Of the Rural Financial Institution.
Vice-presidency of the Board of Directors
It is proposed that in the absence of the Secretary of Finance and Public Credit who will serve as president of the Board of Directors, it will be the Secretary of Agriculture, Livestock, Rural Development, Fishing and Food; in the absence of the first two, the council would be presided over by the Undersecretary of Finance and Public Credit or the substitute for the Secretary of Finance and Public Credit and, in the absence of all the above, those designated by the present councilors. The foregoing makes it necessary to reform Article 30 of the Organic Law of the Rural Financial Institution.

8.- OTHER REFORMS.
8.1.- General Law of Negotiable Instruments and Credit Operations

Of appraisals
The General Law of Negotiable Instruments and Credit Operations is supplementary in the legal framework of development banking institutions, in accordance with the Credit Institutions Law.
Regarding this, it is proposed that the total nominal amount of an issuance of participation certificates will be fixed by an opinion formulated by a National Credit Society, prior to an appraisal carried out on the fiduciary assets subject to that issuance.
The National Credit Society, when formulating its opinion and fixing the total nominal amount of an issuance, will take as a basis the commercial value of the goods and if they are amortizable certificates, it will estimate on this a prudent margin of security for the investment of the corresponding holders. The opinion formulated by these institutions will be definitive.

For the foregoing and in exercise of the faculty conferred upon me by Article 71, fraction I, of the Political Constitution of the United Mexican States, I submit to the consideration of the Honorable Congress of the Union, the following Initiative of:

REFERENCES
1) Reformed by Decree published in the Official Journal of the Federation on June 24, 2002.
2) Added by Decree published in the Official Journal of the Federation on June 24, 2002.
3) Repealed by Decree published in the Official Journal of the Federation on June 24, 2002.
4) Added by Decree published in the Official Journal of the Federation on August 1, 2005.
5) Reformed by Decree published in the Official Journal of the Federation on February 1, 2008.
6) Reformed by Decree published in the Official Journal of the Federation on April 9, 2012.
7) Reformed by Article Fifteen of the Decree published in the Official Journal of the Federation on January 10, 2014.
8) Added by Article Fifteen of the Decree published in the Official Journal of the Federation on January 10, 2014.