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2024-02-13 | DOF 5716666

Added 2026-08-26 · Updated 2026-08-27

Resolution modifying the General Provisions applicable to Popular Savings and Credit Entities, Integration Organizations, Community Financial Societies, and Rural Financial Integration Organizations under the Popular Savings and Credit Law

The CNBV amends numerous articles and definitions within the General Provisions applicable to Popular Savings and Credit Entities, Integration Organizations, Community Financial Societies, and Rural Financial Integration Organizations to align terminology with the legal framework and ensure regulatory consistency. The resolution restructures the document by renaming Titles and Chapters, such as designating Title Two as 'On the Organization of Popular Financial Societies' and Title Five Chapter III as 'On Auxiliary Supervision,' while derogating Title Six. It also substitutes specific annexes, including Annex C for Councilor designation reports and Annex H for the registry of affiliated Popular Financial Societies, and adds a new paragraph to Article 183.

Mexico

Secretaria de Hacienda y Credito Publico

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DOF: 13/02/2024

RESOLUTION that modifies the General Provisions applicable to popular savings and credit entities, integration organizations, community financial societies, and rural financial integration organizations, referred to in the Savings and Popular Credit Law.

A seal with the National Coat of Arms, which reads: United Mexican States.- TREASURY.- Ministry of

Treasury and Public Credit.- National Banking and Securities Commission.

The National Banking and Securities Commission, based on the provisions of articles 3°, fractions VIII and XV; 10th, fractions V and VIII; 18, third paragraph; 19, second and third paragraphs; 23, fraction II and last paragraph; 31, first paragraph; 32, second and last paragraphs; 34, last paragraph; 35, penultimate paragraph;

36, fraction I, subsection h) and fourth paragraph; 36 Bis 1, last paragraph; 36 Bis 3, first and fourth paragraphs; 44,

first paragraph; 46 Bis 4, second paragraph; 46 Bis 20, last paragraph; 47, second paragraph; 51, first paragraph;

62, first paragraph; 65 Bis, second paragraph; 71, first paragraph; 73, second paragraph; 101, fraction II and

second paragraph; 101 Bis, second paragraph; 109, fraction VI; 110, second paragraph; 112, last paragraph; 115,

first paragraph; 117 Bis, first paragraph; 118, first and second paragraphs; 119 Bis 1; 122 Bis, third

paragraph; 124Bis 3; and 136 Bis 4; of the Popular Savings and Credit Law; 98 Bis of the Credit Institutions Law, as well as 4, fractions XXXVI and XXXVIII, and 16, fraction I of the National Banking and Securities Commission Law, and

CONSIDERATIONS

That, on June 4, 2001, the Popular Savings and Credit Law was published in the Official Gazette of the Federation, whose original text has undergone various reforms with the objective of strengthening its operational framework and providing the necessary elements for the organization and expansion of the economic activity of the social sector and updating the bases to regulate and supervise popular savings and credit entities;

That, on December 18, 2006, the General Provisions applicable to popular savings and credit entities, integration organizations, community financial societies, and rural financial integration organizations, referred to in the Popular Savings and Credit Law, were published in the Official Gazette of the Federation, which have been updated in certain matters in accordance with some of the reforms to the Popular Savings and Credit Law;

That, in order to strengthen the content of the secondary regulation of popular savings and credit entities, it is considered necessary to carry out a formal adjustment throughout the regulatory instrument, in order to adjust terms and make adjustments to avoid inconsistencies with the legal framework, promoting its better understanding and compliance, as well as legal certainty for entities and organizations, it has resolved to issue the following:

RESOLUTION MODIFYING THE GENERAL PROVISIONS APPLICABLE TO POPULAR SAVINGS AND CREDIT ENTITIES, INTEGRATION ORGANIZATIONS, COMMUNITY FINANCIAL SOCIETIES AND RURAL FINANCIAL INTEGRATION ORGANIZATIONS,

TO WHICH THE POPULAR SAVINGS AND CREDIT LAW REFERS

SOLE.- Articles 1, first paragraph, fractions I, III, X, XI, XII, XV, XVI, XVII, XXIII,

XXIV, XXV, XXVI, XXVII, XXVIII, XXXII, XXXVII, XXXIX, XLI, XLII, XLV, LII, LVI, LVII subsection a), LXIII, LXVI,

LXXII, LXXVII, LXXVIII and LXXXI; 2, first paragraph and fractions VII and IX; 2 Bis, first paragraph; 2 Bis 1, first

paragraph; 3, first paragraph, as well as fraction I, subsections a), h) and k); 4; 5, first paragraph; 6, first paragraph; 7;

8, first paragraph and fractions I and II; 9; 10, first paragraph; 12; 13; 14, first paragraph, fraction II and paragraph

third; 15; 16; 20; 21; 22; 23; 24; 25; 26; 27; 28; 29; 31, first paragraph; 32; 33; 34, first paragraph; 35; 36;

37, first paragraph; 39; 40; 41; 42; 44; 48; 49; 52; 53; 54, fraction II, subsections a) and b); 54 Bis 1; 55, fraction III and

paragraphs second and third; 56, fractions I and V, subsection d); 57; 58, first paragraph and fraction II; 59; 60; 61,

fraction I; 62; 63, fraction I, fourth paragraph; 63 Bis; 65; 67, fraction III; 68, first paragraph; 70; 71; 74; 75; 76,

paragraphs second and third; 77; 78, paragraphs second and third; 79, first paragraph and fraction II; 80, fractions

I and II, as well as fifth paragraph; 81; 82, fractions I and II; 84, fraction II, subsection b); 85 second paragraph; 86; 87; 88,

first paragraph, as well as fraction I, subsection a), numeral 2 and fraction VI paragraphs fourth and fifth; 89; 90; 91 Bis

1; 93; 94; 95; 95 Ter, to become 95 Bis 1; 96; 97, fraction I, seventh paragraph; 97 Bis; 98, first

paragraph; 100; 102, fraction III, fifth paragraph; 103; 105; 106; 109; 110, first paragraph and fraction I; 111; 112,

113, third paragraph; 114, fraction IV; 115, fraction I and second paragraph; 116, fraction I and second paragraph;

117; 118, first paragraph and fraction II; 119, fractions II and III, as well as fifth paragraph; 120; 121, fractions I and

II; 123, fraction II, subsection b), as well as second paragraph; 124; 125; 126, fractions I and II; 127, fractions I and V;

128; 129; 130, first paragraph, fraction I, subsection a) numeral 2, as well as VI, paragraphs fourth and fifth; 131; 132;

133 Bis 1; 135; 136; 137 Bis, fraction I; 143; 146, fraction I, seventh paragraph; 146 Bis; 147, first paragraph;

149; 151, fraction III, fifth paragraph; 152; 154; 155; 158; 159, first paragraph and fraction I; 160, first paragraph

and fractions I and II; 161, first paragraph and fractions VI, VII and VIII; 162; 163, fraction IV; 164; 165, paragraph

second; 166; 167; 169, first paragraph and fractions II and III; 170; 171, first paragraph and fraction I; 172,

fractions III and VI; 173, first paragraph; 174, first paragraph and fraction I; 176, first paragraph and fractions I and

II; 177, first paragraph and fractions II and III; 178; 179, fractions I and II; 181, fraction II, subsection b); 182; 183,

fourth paragraph; 184, fraction VII, subsection c); 185, first paragraph and fractions I, III and VI; 188; 189; 190; 191; 192,

first paragraph and fraction VI, paragraphs third and fourth; 193; 194; 196; 196 Bis 1; 198; 199, first paragraph;

199 Bis; 201; 202, fraction I; 204, fraction I, seventh paragraph; 204 Bis; 205, first paragraph; 205 Bis 8, fraction

II, subsection a); 206; 207; 208, paragraphs first and second; 209; 209 Bis, fraction III; 209 Bis 3, fraction I, subsection

e), numeral iii and second paragraph; 209 Bis 4, first paragraph; 209 Bis 7, first paragraph; 210, second paragraph;

211, first paragraph; 211 Bis 1, fractions I and II; 211 Bis 3; 211 Bis 4; 212, fractions I, second paragraph, III,

subsections a), b), c) and d), VI, paragraphs fourth and fifth, VII, second paragraph and IX, subsections h) and i); 238; 239, first

paragraph; 242, paragraphs first and second; 243, fraction I; 247; 249, first paragraph; 250, first paragraph;

251, first paragraph; 252; 254; 255; 257; 258; 260; 262; 265; 265 Bis 1; 265 Bis 2, fraction II; 265 Bis 4,

fraction III, second paragraph; 265 Bis 6, first paragraph; 265 Bis 7; 265 Bis 8, paragraphs first, seventh and

eighth; 265 Bis 9, fraction I; 265 Bis 10, paragraphs second, third and fourth; 265 Bis 13, paragraphs third and

fourth; 265 Bis 14, fraction III; 265 Bis 15; 265 Bis 16, fraction III and second paragraph; 265 Bis 17; 265 Bis 20;

265 Bis 21, fractions I, first paragraph and III, third paragraph; 265 Bis 22, second paragraph; 265 Bis 34; 265 Bis

35, first paragraph, as well as fractions I, second paragraph and III, subsection a); 265 Bis 36, fractions II and III; 265

Bis 37, paragraphs first and third, as well as fractions I and VII, subsection c); 265 Bis 38; 265 Bis 39, paragraph

first, as well as fractions I, paragraphs sixth and seventh and II, second paragraph; 265 Bis 40; 265 Bis 41; 265 Bis

42, fraction I; 265 Bis 44, first paragraph and fraction I; 265 Bis 45, paragraphs second and third, as well as

fraction III, subsection d); 265 Bis 46, second paragraph; 265 Bis 48, second paragraph; 265 Bis 52, second paragraph;

266, first paragraph, as well as fraction I; 267, fraction XI; 268, fraction I; 270; 275, first paragraph; 276; 277,

first paragraph; 278; 279; 280; 281; 283; 284; 288; 295;

296; 298; 301; 310; 326; 330, first paragraph; 332,

first paragraph; as well as the names of Title Two, to be called "On the Organization of Popular Financial Societies"; of Title Three, to be called "On the Operations of Popular Financial Societies" and its Chapter II, to be called

"On the Operations that Popular Financial Societies May Carry Out"; and in Title Five its Chapter II, to be called "On the Registration of Popular Financial Societies and Federations"; Article 183 is ADDED, with a

second paragraph, shifting the subsequent paragraphs; likewise, Title Five with a Chapter III called "On Auxiliary Supervision" comprising articles 275 to 284; Article 2, fraction X is DEROGATED; as well as Title Six, whose Single Chapter, including its articles 275 to 284, becomes Chapter III "On Auxiliary Supervision" of Title Five; and Annexes C, H,

T, and U of the "General Provisions applicable to popular savings and credit entities,

integration organizations, community financial societies, and rural financial integration organizations,

referred to in the Popular Savings and Credit Law", published in the Official Gazette of the Federation on October 18

of 2006, are SUBSTITUTED, to read as follows:

INDEX

TITLE FIRST

...

TITLE SECOND

On the Organization of Popular Financial Societies and Integration Organizations

Chapters I and II...

TITLE THIRD

On the Operations of Popular Financial Societies

Chapter I

...

Chapter II

On the Operations that Popular Financial Societies May Carry Out

Sections First to Fourth

...

TITLE FOURTH

...

TITLE FIFTH

...

Chapter I

...

Chapter II

On the Registration of Popular Financial Societies and Federations

Chapter III

On Auxiliary Supervision

TITLE SIXTH

(Derogated)

TITLES SEVENTH to NINTH...

TRANSITORY

LIST OF ANNEXES

Annexes A and B

...

Annex C

Report on the designation of Councilors, Members of the Supervisory Council or

Commissary, Director or General Manager, Members of the Supervisory Committee, Regulatory Comptroller

and Legal or Internal Auditor, as applicable, of Popular Financial Societies,

Federations and Confederations referred to in the Popular Savings and Credit

Law.

Annexes D to G

...

Annex H

Registry of Popular Financial Societies

affiliated, or over which auxiliary supervision

functions are exercised.

Annexes I to T

...

Annex U

Format of protest letter for persons who intend to participate in the

paid ordinary capital of a Popular Financial Society or intend

constitute themselves as secured creditors with respect to the paid ordinary capital

of a Popular Financial Society

" Article 1.- For the purposes of these provisions, the definitions set forth in

article 3 of the Popular Savings and Credit Law shall apply and, additionally, it shall be understood as:

Commission Agent Administrator, to the commission agents operating under the provisions

of article 265 Bis 52 of these provisions.

II.

...

III.

Internal Auditor, to the person responsible for the internal audit area referred to in article 185 of

these provisions.

IV. to IX.

...

Encryption, to the mechanism that the Popular Financial Society must use to protect the

confidentiality of information through cryptographic methods in which

algorithms and encryption keys are used.

XI.

Credit Committee, to the Credit Committee or its equivalent referred to in article 26 of the

Popular Savings and Credit Law;

XII.

Remuneration Committee, to the committee constituted by the Board of Directors of the

Popular Financial Societies in accordance with article 209 Bis 5 of these

provisions, in order to support the aforementioned governing body in its functions related

to the Remuneration System, and whose object shall be the implementation, maintenance and

evaluation of the Remuneration System, with the powers described in article

209

Bis 6 of these provisions.

XIII. and XIV.

...

XV.

Councilors, to the members of the Board of Directors of the Popular Financial Societies

or of the Integration Organizations referred to in the Popular Savings and

Credit Law;

XVI.

Board of Directors, to the Board of Directors of the Popular Financial Societies,

and of the Integration Organizations referred to in articles 18 and 63 of

the Popular Savings and Credit Law;

XVII.

Supervisory Council or Commissary, to the Supervisory Council or Commissary of the Popular

Financial Societies and of the Integration Organizations referred to in articles 23 and

70 of the Popular Savings and Credit Law;

XVIII to XXII.

...

XXIII.

Accounting Criteria, to the Accounting Criteria for Popular Financial Societies,

Community Financial Societies and Rural Financial Integration Organizations

referred to in Section First of Chapter V of Title Four of these

provisions, and which are contained in Annex E of the same provisions.

XXIV.

Collective Account, to an account with more than one holder, which may be Joint or Several;

XXV.

Deposit Account, to the account referred to in subsection a) of fraction I of article 36 of

the Law.

XXVI.

Destination Account, to the account receiving monetary resources in Monetary Operations.

XXVII.

Recurring Destination Account, to the Destination Account that meets the requirements provided for by

article 265 Bis 9 of these provisions.

XXVIII.

Individual Account, to accounts with a single holder;

XXIX. to XXXI.

...

XXXII.

Director or General Manager, to the Director or General Manager of the Popular Financial Societies,

of the Community Financial Societies and of the Rural Financial Integration Organizations

referred to in articles 18, 23 and 63 of the Popular Savings and Credit

Law.

XXXIII. to XXXVI.

...

XXXVII.

Financing, singular or plural, to any act or contract that implies the carrying out of an

active operation, direct or contingent, through the granting, restructuring,

renewal or modification of any loan or credit, also including, in

case, investments in shares or securities that should not be subtracted from the net capital of the

Popular Financial Societies in question.

Mortgage credits related to housing, consumer credits for individuals

made available through the use of credit cards, those used for the

acquisition of durable consumer goods and personal ones destined for consumption,

which are granted by Popular Financial Societies, whose amount does not exceed the equivalent

in national currency to 50,000 UDIs at the date of their agreement, shall be excluded from what

is stated in the previous paragraph;

XXXVIII.

...

XXXIX.

Investment Grade, to that obtained by investment companies that hold the

qualifications referred to in article 300 of these provisions;

XL.

...

XLI.

Business group, the set of legal entities organized under schemes of

direct or indirect participation in share capital, in which the same company maintains the

control of said legal entities. Likewise, financial groups constituted in accordance with article 12 of the Law to Regulate

Financial Aggregations shall be considered as a business group.

XLII.

Auxiliary Supervision Guide, to the minimum aspects that, in relation to what is provided by the

Single Chapter of Title Six, the Supervisory Committees of the

Federations must observe in the elaboration of their respective auxiliary supervision manuals, which is attached to these provisions as Annex I;

XLIII. and XLIV. ...

XLV.

Sensitive Information or User Sensitive Information: the information of Clients and

public users that contains names, addresses, phone numbers or email addresses,

or any other data that identifies said persons together with numbers

of credit or debit cards, account numbers, credit limits, balances, amounts and

other data of a financial nature, as well as User Identifiers or information of

Authentication.

XLVI. to LI.

...

LII.

Electronic Media, to equipment, optical media or any other technology, systems

automated data processing and telecommunications networks, whether public

or private, referred to in article 45 Bis of the Law.

LIII. to LV.

...

LVI.

Members of the Supervisory Council or Commissary, to the persons who make up the Supervisory

Council, or who hold that position in the Popular Financial Societies,

Federations or Confederations;

LVII.

...

Micro Payments: operations up to the equivalent in national currency to 70 UDIs daily.

b) to d)

...

LVIII. to LXII.

...

LXIII.

Mobile Basic Services or Mobile Payment, to the Electronic Service in which the Access Device

is associated with unique correspondence to the User Identifier,

through any unique information or data of the Access Device itself, the Society Financiera Popular must obtain the information or data automatically from the

corresponding Access Device and only balance inquiries may be made

with respect to accounts or cards associated with the service, Monetary Operations limited to

transfers of monetary resources and payments for goods or services, in both cases,

up to the equivalent in national currency to the Monetary Operations of Medium Quantity

per User, charged to the cards or bank accounts they have associated.

LXIV. and LXV.

...

LXVI.

Internet Service, to the Electronic Service carried out through the Internet, at the site

corresponding to one or more domains of the Popular Financial Society, including access

through the WAP protocol or any equivalent.

LXVII. to LXXI.

...

LXXII.

Society, singular or plural, to the Anonymous Societies and other societies that have

intention to be subject to the terms established in the Law, or to groups of persons who

intend to constitute said societies;

LXXIII. to LXXVI.

...

LXXVII.

In-situ Supervision, to the inspection phase of the auxiliary supervision process that will be

carried out with the physical presence of Auxiliary Supervisors directly in the

facilities of the Popular Financial Society, through the carrying out of inspection visits in the offices, branches and other establishments of the same;

LXXVIII.

Auxiliary Supervisor, singular or plural, to those members of the Supervisory Committee who,

in terms of what is provided by Chapter Three of Title Five of these

provisions, are designated to carry out the auxiliary supervision activities of the

Popular Financial Societies;

LXXXI.

Point of Sale Terminal, to the Access Devices to Electronic Services, such

as computer terminals, Mobile Phones and computer programs, among others,

operated by merchants or Users, as part of the services provided by acquirers

or aggregators, according to said terms are defined in the General Provisions applicable to the networks of

disposition media, issued jointly by the Bank of Mexico and the National Banking and Securities Commission, or those that replace them, to instruct the

payment of goods or services charged to a card or account, or for the carrying out of the operations referred to in article 265 Bis 36 of these provisions.

LXXXII to LXXXVI

...

TITLE SECOND

On the Organization of Popular Financial Societies and Integration Organizations

Chapter I

...

Section First

...

Article 2.- Authorization requests to operate as Popular Financial Societies must

be submitted to a Federation, in writing and in duplicate, accompanied by the documentation and

information mentioned in article 10 of the Law, in addition to the following:

I. to VI.

...

VII.

...

Likewise, for those Societies that on the date of the authorization request had

recognized in their financial statements, inflation effects, they must recognize the net effect,

both of the update of share capital as well as historical amounts and the update of

items belonging to equity capital other than share capital, within the aforementioned item, which may be capitalized or destined to the constitution of other reserves in

equity capital, as resolved by the assembly once the Popular Financial Society

is authorized.

...

In the case of those Societies that on the date of the authorization request had not

recognized in their financial statements, inflation effects, they must recognize the net effect of

the items belonging to equity capital other than share capital, within the referred item

"Effect by incorporation into the popular savings and credit entity regime", whose amount may

be capitalized or destined to the constitution of other reserves in equity capital, as resolved by the

assembly once the Popular Financial Society is authorized.

Regarding this, the Societies must present information related to the adjustments resulting from the

initial application of the Accounting Criteria for Popular Financial Societies,

Community Financial Societies and Rural Financial Integration Organizations referred to in

Section First of Chapter V of Title Four of these provisions. For

these purposes, they must disclose in a clarifying note, which will form an integral part of their

financial statements, a comparative table that includes: (i) the items of the balance

sheet that will be affected by the initial application of the Accounting Criteria mentioned,

with the figures that the Society would show prior to the application of said Criteria (corresponding to the date of preparation of its balance sheet); (ii) the adjustments made to each of the cited items, as well as their total effect on the item called "Effect by

incorporation into the popular savings and credit entity regime", and (iii) the figures of said items

once the adjustments derived from the recognition of the aforementioned Criteria are included.

Likewise, they must include in the cited note, a detailed explanation of the differences between the

accounting treatment the Society had been applying and the corresponding Accounting Criterion,

with respect to each of the items for which the accounting adjustment was made, as a result of

the initial application of the Accounting Criteria for Popular Financial Societies, Community Financial Societies and Rural Financial Integration Organizations referred to in the First Section of Chapter V of Title IV of these provisions.

...

Societies that, in accordance with the applicable legal provisions, are obliged to present to the Commission audited financial statements issued by an external auditor, in accordance with the Accounting Criteria established in Annex E that correspond to them to apply in accordance with what is provided by the respective Section of Chapter V of Title IV of these provisions, will not be obliged to present the opinion referred to in the previous paragraph, provided that they prove that they have delivered to the Commission the audited financial statements, corresponding to the exercise immediately prior to that of the date of presentation of the respective authorization request. This is without prejudice to the obligation to present the financial statements, in accordance with this Section;

VIII.

...

IX.

In its case, project for the application of the social work fund;

(Repealed)

XI.

and XII. ...

...

Article 2 Bis.- Authorization requests to organize and operate as a Popular Financial Society in terms of what is stated in article 10 of the Law, in addition to what is provided by the previous article, must be accompanied with respect to each of the natural or legal persons who intend to subscribe to the social capital of said Popular Financial Societies, the documentation and information indicated below:

I. and II.

...

Article 2 Bis 1.- Persons who intend to obtain authorization to acquire directly or indirectly through one or more simultaneous or successive operations more than five percent of the paid ordinary social capital of a Popular Financial Society, or to constitute themselves as creditors with guarantee with respect to the shares that represent said percentage, must present with the respective authorization request, the information and documentation referred to in fractions I and II of the previous article 2 Bis.

...

Article 3.-

Authorization requests to operate as Integration Organizations must be submitted to the Commission, in writing and in duplicate, accompanied additionally by the documentation and information indicated in article 53 of the Law, as follows:

Regarding Federations:

The documentation that accredits the personality and powers of the person promoting the request, granted by the corresponding Popular Financial Societies, indicating an address to hear and receive all types of notifications, as well as the name of the person or persons authorized for such effects;

b) to g) ...

Description of the characteristics of the system that allows them to integrate their databases to follow up on the credit behavior of the accredited persons of the Popular Financial Societies, the risk rating, and, in general, their operation;

i) to j) ...

Description of the form and means through which they will provide to their affiliates, in terms of article 56 of the Law, information on the services they offer.

II. ...

Article 4.- The governing bodies of Popular Financial Societies, Federations and Confederations, within the scope of their competence, must evaluate and verify prior to the appointment of their Councilors, Director or General Manager, members of the Supervisory Committee, Regulatory Comptroller and Legal or Internal Auditor, as applicable, that the person in question complies with the requirements established by the Law, for which they must request the following information and documentation:

...

II.

Report issued by an authorized Credit Information Society in accordance with the Law to Regulate Credit Information Societies, containing antecedents of at least five years prior to the date on which the exercise of the position is intended to begin, or of the period that comprises the information with which, in its case, the Credit Information Society in question has, whose date of issuance does not exceed 180 natural days in relation to the date of presentation of the same before the Popular Financial Society, Federation or Confederation respectively;

III.

...

IV.

Recommendation letters issued by legal entities in which the person has provided professional services whose performance requires knowledge in financial and administrative matters, for a minimum of three years or the time that the Law requires depending on the position to be held, said period being prior to the date of its presentation before the Popular Financial Society, Federation or Confederation, as applicable.

The accreditation of the cited experience must be related to the operation and functioning of Popular Financial Societies, Federations or Confederations as applicable, or with the specific area in which they will provide their services.

In the event that the person cannot accredit their experience in the aforementioned matters through the cited letters, the Popular Financial Societies, Federations or Confederations, as applicable, may take into account the records, degrees, certificates, diplomas or any other type of document, in which the recognition of the quality or technical or professional capacity of the person in question is stated, in the operation and functioning of the Popular Financial Societies, Federations or Confederations as the case may be, or with the specific area in which they will provide their services, issued by higher education institutions, public or private, national or foreign of recognized prestige, or well, certificates of technical capacity issued by bodies recognized by the Commission.

In the absence of any of the requirements indicated in the preceding paragraphs, regarding persons who would serve as Councilors, Director or General Manager of the Popular Financial Societies, they may accredit knowledge in financial and administrative matters through an evaluation carried out before the Supervisory Committee of the corresponding Federation; when it comes to persons who will occupy positions in the Federations or Confederations, the exam will be presented before bodies recognized by the Commission, and

Written declaration under oath,

in which they state that they do not maintain property, liability or kinship ties, with partners or shareholders, Councilors,

Members of the Supervisory Council or Comptroller, with the Director or General Manager or with the Regulatory Comptroller of the Popular Financial Society, Federation or Confederation that appoints them.

Regarding Members of the Supervisory Council or Comptrollers of the Popular Financial Societies, the previous fractions will apply, with the exception of fraction IV.

Article 5.- Popular Financial Societies and Integration Organizations must contemplate in their statutes or constitutive bases, the form and terms to carry out the replacement of the members of the Boards of Administration and Surveillance. Such appointment may be made through the direct designation of a substitute member for each owner member, or in accordance with the following:

I. and II.

...

Article 6.- Without prejudice to what is provided by the previous article 4, Popular Financial Societies, Federations and Confederations will establish policies that allow them to evaluate the Economic Solvency of the persons referred to in said article, based on the information they obtain from Credit Information Societies. To this effect, said policies will take into account, at least:

I to III.

...

Article 7.- Members of the Supervisory Committee, in addition to the information and documentation indicated in the previous article 4, with the exception of what is provided by the third paragraph of fraction IV of the same article 4, must present a certificate issued by a specialized institution recognized by the Commission.

Article 8.- Persons designated as Councilors, Members of the Supervisory Council or Comptroller, Director or General Manager, Members of the Supervisory Committee, Regulatory Comptroller and Legal or Internal Auditor, must state in writing and under oath to the Popular Financial Society, Federation or Confederation as applicable:

Regarding members of the Supervisory Committee, that they are not in the circumstances referred to in fractions II to VIII

of article 67 of the Law; for the other persons indicated in the previous paragraph, that they are not in the circumstances referred to in fractions I to

VIII of article 21 of the Law.

For the purposes of what is provided by

fraction IV of article 67 of the Law, the Director or General Manager, and the officials who hold positions with a hierarchy of up to two immediate levels below that of the latter, will be considered as officials;

II.

If they have conflicts of interest or an interest opposed to that of the Popular Financial Society, Federation

or Confederation that appoints them;

III. and IV.

...

Article 9.- Popular Financial Societies, Federations and Confederations must integrate for each Councilor, Director or General Manager, Member of the Supervisory Committee, Member of the Supervisory Council or Comptroller, Regulatory Comptroller and Legal or Internal Auditor, a file that will contain the documentation and information referred to in articles 4, 7, 8 and 10 of these provisions.

Article 10.- Popular Financial Societies, Federations and Confederations,

must

establish permanent communication mechanisms that allow them to continuously verify the compliance of the requirements, as well as the absence of legal impediments for their Councilors,

Members of the Supervisory Council or Comptroller, Director or General Manager, Members of the Supervisory Committee, Regulatory Comptroller and Legal or Internal Auditor, to continue in the performance of the functions for which they have been appointed.

...

" Article 12.- Popular Financial Societies, Federations and Confederations must designate

the Director or General Manager, as the person responsible for the integration of the files referred to in

this Section, as well as for implementing the permanent communication mechanisms and providing

the information to which this Section alludes.

Article 13.- In any case, the Commission may request from Popular Financial Societies,

Federations or Confederations, the information it deems convenient regarding the files referred to in

article 9 of these provisions.

Article 14.- Popular Financial Societies with Level of Operations I and II must designate

at least one independent Councilor to participate in the work of the Board of Administration.

Popular Financial Societies with Level of Operations III and IV must comply with the minimum percentage

of Independent Councilors referred to in the second paragraph of article 18 of the Law.

...

II.

Not have any of the impediments indicated in articles 15 and 16 of these provisions,

as applicable, and

III.

...

For each Independent Councilor, a substitute must be designated, who must meet the requirements

established in this article and not have the impediments referred to in articles 15 and 16 of the

present provisions, as applicable.

Article 15.- In no case may they be Independent Councilors of Popular Financial Societies:

Persons who have any of the impediments indicated in fractions I to VIII of

article 21 of the Law;

II.

Employees, officials or executives of the Popular Financial Society;

III.

Partners or shareholders who have Command Power and/or persons who are in any of the

circumstances provided for in article 35 of the Law

IV.

Partners or employees of societies or associations that provide auditing, advisory or

consulting services to the Popular Financial Society itself, as well as to the Federation that supervises it

in an auxiliary manner or the Confederation that administers the Protection Fund and whose income

depends significantly on this relationship.

...

Clients, suppliers, debtors or creditors of the Popular Financial Society, as well as

clients, suppliers, debtors, creditors, partners, councilors or employees of a society

that is an important client, supplier, debtor or creditor of the Popular Financial Society.

A client or supplier is considered important when the services provided by the Society

Financial or the sales made to it represent more than 10 percent of the

services or total sales of the client or supplier, respectively. Likewise, it is considered

that a debtor or creditor is important when the amount of the credit is greater than 15 percent of

the assets of the Popular Financial Society or its counterparty;

VI.

Employees, officials or executives of a foundation, civil association or civil society,

that grant or receive important donations from the Popular Financial Society.

...

VII.

General directors or first and second-level officials of a society in whose board of

administration participates the Director or General Manager or a high-level official of the Society

Financial or the Federation that supervises it in an auxiliary manner or the Confederation

that administers the respective Protection Fund;

VIII.

...

IX.

Those who have held a management or administrative position in the Popular Financial Society,

or in the Federation that supervises it in an auxiliary manner or in the Confederation that administers

the Protection Fund in which they participate, during the year prior to the moment in which it is intended

to make their designation;

...

XI.

Persons who perform regulatory, inspection or surveillance functions of the Societies

Popular Financial, Federations or Confederations.

Article 16.- ...

Persons who have any of the impediments indicated in fractions I to VIII of the

article 21 of the Law;

II.

Employees or officials of the Federation itself, as well as Councilors, Members of the

Supervisory Council or Comptroller, employees or officials of the Popular Financial Societies

that it supervises in an auxiliary manner or of the Confederation that administers the Fund

of Protection respectively;

III.

Representatives before the general assembly of affiliates, representatives before the general assembly of

the respective Confederation as well as partners or shareholders of the Popular Financial Societies

that have Command Power;

IV.

Partners or employees of societies or associations that provide auditing, advisory or

consulting services to the Federation itself, as well as to any of the Popular Financial Societies

that it supervises in an auxiliary manner or the Confederation that administers the Protection Fund

respectively, and whose income depends significantly on this relationship;

...

V. and VI.

...

VII.

General directors or first and second-level officials of a society in whose board of

administration participates the General Manager or a high-level executive of the Federation, the Director

or General Manager or a high-level official of any Popular Financial Society that it

supervises in an auxiliary manner, or the General Manager or a high-level official of the

Confederation that administers the respective Protection Fund;

VIII.

...

IX.

Those who have held a management or administrative position in the Federation, in any of the

Popular Financial Societies that it supervises in an auxiliary manner or in the Confederation

that administers the respective Protection Fund, during the year prior to the moment in which it is intended

to make their designation;

...

XI.

Persons who perform regulatory, inspection or surveillance functions of the Societies

Popular Financial, Federations or Confederations. "

" TITLE THIRD

Of the operations of Popular Financial Societies

Chapter I

...

" Article 20.- Regarding the opinion regarding societies that are not considered newly

created in terms of the previous article 19, the corresponding Federation will propose to the Commission the Level

of Operations of the probable Popular Financial Society, considering the amount of total assets with which they have, net of their corresponding depreciations and estimates, according to the following table

and what is provided by article 21 of these provisions:

[Table] ...

This is without prejudice to the geographic scope of the operations and the number of Clients of the probable

Popular Financial Society.

Article 21.- The Federation, in addition to what is stated in the previous articles 19 and 20, will take into

account, for the purposes of proposing to the Commission the Level of Operations that, in its case, may be assigned to

the society or association that is intended to be authorized as a Popular Financial Society, the analysis it performs

on the amount of assets or the projection of these, using for this the format referred to in the first

paragraph of fraction VII of article 2 of these provisions, which integrates Annex A, in relation to the accounting capital of the interested party.

Likewise, the Federation must analyze the compliance with the legal requirements of the members of its

Boards of administration and surveillance, comptrollers and officials, in terms of what is provided by the Section

Second of Chapter I of Title II of these provisions, as well as the bases relative to the

organization and internal control that the society or association that is intended to be authorized presents in terms

of article 10, fraction III, of the Law, as well as the aspects indicated in the following fractions:

I. to III.

...

If, once the previous aspects have been evaluated, in the opinion of the Commission, the Popular Financial Society does not

have the technical and operational capacity to carry out the operations corresponding to the Level of

Operations proposed, the Commission may modify said Level of Operations and assign a lower level.

Article 22.- Popular Financial Societies may only change to the next Level of Operations

immediately, provided that they prove to the Commission that they meet the necessary prudential requirements associated with the asset size corresponding to the Level of Operations requested. The

Commission may deny the request in question when the requesting Popular Financial Society has

less than six months of operation since the date of assignment of the previous Level of Operations.

This is without prejudice to the fact that the Commission, in the exercise of its inspection and surveillance functions

directly or through the auxiliary supervision carried out by the corresponding Supervisory Committees,

may assign a Popular Financial Society a different lower Level of Operations than originally

assigned, for not meeting the necessary criteria and requirements, or order the temporary suspension of

all or some of its operations, when said Popular Financial Societies infringe in a

serious or repeated manner what is provided by the Law and these provisions.

Chapter II

Of the Operations that Popular Financial Societies may carry out

Article 23.- Attending to the Level of Operations assigned to them, Popular Financial Societies

may carry out the following operations:

Popular Financial Societies

with Level of Operations I:

...

The above operations may be carried out with minors in terms of the

applicable common legislation.

Receive loans and credits from national or foreign credit institutions, as well as

from institutions that are part of the Federal or State Public Administration and public trusts,

constituted by the Federal or State Government for economic promotion, that

perform financial activities, international financial organizations, and

their national or foreign suppliers;

Grant to affiliated and non-affiliated Popular Financial Societies that it supervises

in an auxiliary manner its Federation, prior approval of the Board of Administration of the latter and

charged to its capital surpluses, liquidity loans, which must

deduct from their capital, subject to the requirements and conditions established in the

Chapter II of Title IV of these provisions;

Receive credits from the Federations to which they are affiliated, in terms of

article 52 fraction III of the Law;

Conclude, as lessees, financial leasing contracts on equipment

computing, transport and others that are necessary for the fulfillment of their corporate object, and acquire the goods that are the object of such contracts;

Conclude leasing contracts on movable and immovable property for the

achievement of their object;

Grant their guarantee in terms of article 92 of the Law;

Receive and issue payment orders and transfers when these are in national

currency. Societies may issue payment orders and transfers when these are in foreign currency and receive the latter only for credit to an account

in national currency, being prior authorization of the Commission necessary in these cases;

Discount, pledge or negotiate credit instruments and affect the rights arising from

financing contracts that they carry out with their Clients or from operations

authorized with the persons from whom they receive financing, only with

public trusts, constituted by the Federal or State Government for economic promotion, or with credit institutions and auxiliary credit organizations. When the resources received through discount operations in terms of this numeral are

destined to grant loans or credits, and there is congruence between the terms of both operations, the loans or credits granted by the Popular Financial Society may

be up to 60 months; provided that the term does not exceed the limit established in the

last paragraph of letter a) of fraction I of article 25 of these provisions;

Constitute demand or time deposits in credit institutions and in financial entities

of the exterior;

Grant to their Clients, loans or credits for a maximum term of 60 months, except for what is established by letter a) of fraction I of article 25 of these provisions;

Invest their excess cash, directly or through repos, in government securities, Pagarés with Yield Payable at Maturity, subscribed by

institutions of credit and investment companies whose investment assets are solely the aforementioned securities;

n) Acquire the movable and immovable property necessary for the realization of their purpose and dispose of them when appropriate;

ñ) Act as a payment receiver for services on behalf of third parties, provided that the foregoing does not imply for the Popular Financial Society the acceptance of direct or contingent obligations;

o) Grant labor-related credits or loans to their employees;

p) Receive donations;

q) Issue and operate debit cards and reloadable cards;

r) Make investments in the social capital of the Federation to which they are affiliated;

s) Carry out the distribution and payment of products, services, and programs, all of which are governmental;

t) Carry out the purchase and sale of foreign currency at the counter, on behalf of third parties, or for their own account;

u) Offer and distribute, among their Clients, insurance policies which shall be formalized through adhesion contracts, on behalf of any insurance institution duly authorized in accordance with the Insurance and Surety Institutions Law and subject to what is established in article 102 of the referenced law.

v) Accept mandates and commissions from financial entities, related to their purpose.

w) Make permanent capital investments in other commercial societies, provided that they provide auxiliary, complementary, or real estate-type services.

x) Distribute surety bonds, in terms of the provisions applicable to such operations.

II.

Popular Financial Societies with Level II Operations, in addition to the operations indicated in the preceding fraction I, may carry out the following:

a) Discount, pledge, or negotiate credit titles and affect the rights arising from the financing contracts they carry out with their Clients or from the operations authorized with the persons from whom they receive financing, solely with public trusts, constituted by the Federal or state Governments for economic promotion, or with credit institutions and auxiliary credit organizations. When the resources received through discount operations in terms of this subsection are destined to grant loans or credits, and there is congruence between the terms of both operations, the loans or credits granted by the Popular Financial Society may be for terms exceeding 96 months, provided that the term does not exceed the limit established in the last paragraph of subsection a) of fraction I of article 25 of these provisions;

b) Carry out financial factoring operations with their Clients or on their behalf;

c) Grant loans or credits to their Clients for terms of up to 96 months, except for what is established by subsection a) of fraction I of article 25 of these provisions;

d) . . .

e) Provide safe deposit box services;

f) . . .

III.

Popular Financial Societies with Level III Operations, in addition to the operations indicated in fractions I and II above, may carry out the following:

a) Grant loans or credits to their Clients for terms exceeding 96 months;

b) Invest their cash surpluses, directly or through repurchase agreements, in securities, which they are permitted to invest in accordance with the Law and these provisions, always adjusting to the limits and requirements established in said regulations;

c) Celebrate, as lessor, financial leasing contracts with their Clients,

d) Provide cash and treasury services.

e) Act as Trustee in the guarantee trusts referred to in the General Law of Credit Titles and Operations.

IV.

Popular Financial Societies with Level IV Operations, in addition to the operations indicated in fractions I, II, and III above, may carry out the following:

a) to e) . . .

f) Issue credit cards based on credit line opening contracts to their Clients;

g) and h) . . .

i) Make investments in shares of Investment Fund Operating Companies, prior authorization of the Commission, and

j) Offer and distribute, among their Partners, the shares of the investment companies operated by the Investment Fund Operating Companies referred to in the preceding subsection or, in its case, by those in whose capital they participate indirectly through, among others, the Federation to which they are affiliated;

k) Make investments in shares of Retirement Fund Administrators and Specialized Investment Societies for Retirement Funds, prior authorization of the Commission;

l) Offer and distribute, among their Partners, the shares of the Specialized Investment Societies for Retirement Funds referred to in the preceding subsection or by those in whose capital they participate indirectly through, among others, the Federation to which they are affiliated, as well as promote the affiliation of workers to Retirement Fund Administrators in whose capital they participate directly or indirectly through, among others, the Federation to which they are affiliated. "

" Article 24.- Popular Financial Societies, in the contracting of the passive operations indicated by the previous article 23, shall be subject to the applicable provisions, as well as to the following terms and conditions:

. . .

Popular Financial Societies may freely agree with their account holders, the amounts and minimum balances to which they are willing to receive and maintain these deposits, applying the policies generally used.

. . .

In interest-bearing deposits, Popular Financial Societies may freely agree with their clientele the interest rates that accrue on them, which may be different for different types of account holders. Popular Financial Societies must invariably reserve the right to adjust the agreed rate daily. The rates will be applied to the average daily balances of the period in which they have been in effect. Popular Financial Societies may freely agree on the frequency of interest payment.

. . .

Popular Financial Societies must provide depositors, with the frequency they freely determine, a statement of account or its equivalent, in which the movements carried out in the corresponding period appear, the average daily balances of each interest period, the corresponding yield for each interest period in amount and percentage, as well as, in its case, the charges. Popular Financial Societies may agree with depositors that the aforementioned statements of account be available at their branches for a determined period.

II.

. . .

Popular Financial Societies may freely agree with their clientele the interest rates that accrue on these deposits, which may be different for different types of account holders and must reserve the right to adjust the agreed interest rate daily. The rates will be applied to the average daily balances of the period in which they have been in effect.

Popular Financial Societies may freely agree on the frequency of interest payment.

. . .

At the counter in the offices or branches of the Popular Financial Society;

Through automated equipment and systems, up to the daily amount previously indicated by the depositing Popular Financial Society;

Through the acquisition of goods and services and, in its case, cash withdrawals up to the daily amount that the Popular Financial Society has agreed with the businesses affiliated to the card service; and/or well,

. . .

The acquisition of goods and services, as well as withdrawals at businesses affiliated to the card corresponding to this type of deposit, will be made in the terms provided for in fraction V of article 25. The amount of the documents with which these operations are formalized must be charged to the depositor's account on the same day that, in turn, the Popular Financial Society covers them to affiliated establishments, provided that the Popular Financial Societies have the authorization of the Client in question and that the same authorizes the provider of goods or services directly and that this in turn instructs the Popular Financial Society to make the respective charge, in the terms provided in article 36 Bis of the Law.

. . .

To avoid possible overdrafts, when allowing the acquisition of goods and services in affiliated establishments, the depositing Popular Financial Society may grant credits to the account holders. The characteristics of these credits may be freely determined by the accrediting Popular Financial Society.

. . .

III.

. . .

Popular Financial Societies may freely agree with their account holders, the amounts and minimum balances to which they are willing to receive and maintain these deposits.

Popular Financial Societies must invariably reserve the right not to receive new deposits in the account in question.

. . .

Popular Financial Societies may freely agree on the interest rates that accrue on these deposits, which may be different for each type of investor that the Popular Financial Society itself determines.

. . .

Popular Financial Societies may freely agree on the frequency of interest payment.

. . .

Popular Financial Societies may agree in the respective contracts that, if the scenario provided for in the preceding paragraph occurs, the deposit can be withdrawn on the immediate preceding banking business day. The contracts may also establish that the withdrawal can be made at the depositor's choice in either of the two mentioned options.

Popular Financial Societies shall refrain from attending withdrawals on days other than those expressly indicated in the respective contract.

Notwithstanding, Popular Financial Societies may agree that these deposits be also withdrawable with prior notice. In this case, the corresponding contract must establish the term with which the prior notice must be given for withdrawals and the maximum amount thereof.

IV.

. . .

Popular Financial Societies may freely agree with their account holders, through general policies, the amounts and minimum balances to which they are willing to receive and maintain these deposits.

. . .

These deposits will accrue interest at the rate freely determined by the depositing Popular Financial Society. The rate thus determined will be applied uniformly to all depositors.

. . .

At sight, of the amount equivalent to 30 UMAS or 30 percent of the account balance when the sum corresponding to this percentage is greater than said amount; between one sight withdrawal and another, at least 30 days must elapse;

. . .

Notwithstanding, what is established in this numeral, the Popular Financial Society may pay at sight up to 100 percent of the amount of the account.

. . .

Popular Financial Societies may freely agree with their account holders, the minimum amounts from which they are willing to receive these deposits.

. . .

Popular Financial Societies will freely determine the frequency with which they will pay interest.

Regarding automatic renewals, the rate applicable in each renewal must be the one indicated by the Popular Financial Society for deposits with the same characteristics on the value date of the renewal.

. . .

The deposits documented in certificates may be automatically renewed upon maturity, and the rights that cover such certificates must not be assigned to credit institutions or to other Popular Financial Societies.

VI.

. . .

Popular Financial Societies may freely agree with their account holders the amounts and minimum balances to which they are willing to receive and maintain these deposits.

Popular Financial Societies must invariably reserve the right not to receive new deposits in the account in question.

c) Yields.

Popular Financial Societies may freely agree on the interest rates that accrue on these deposits, which may be different for each investor.

. . .

Popular Financial Societies may freely agree on the frequency of interest payment.

. . .

VII.

. . .

The resources assigned to such cards will constitute a liability of the Popular Financial Societies themselves.

Reloadable cards may be issued with the characteristics that each Popular Financial Society freely determines and it will not be necessary to sign a contract with the card acquirer, but in all cases the cards must clearly show on their front the denomination or any other expression, symbolism, emblem, or logo of the issuing Popular Financial Society.

. . .

To obtain resources at the counter in the offices of the Popular Financial Society;

and 3.

. . .

The cash withdrawal at affiliated businesses, as well as the acquisition of goods and services, will be subject in the relevant aspects to what is provided in the Rules to which Popular Financial Societies must be subject in the issuance and operation of credit cards, which are indicated in fraction V of article 25.

. . .

Popular Financial Societies may distribute the cards in their branches. In all cases, Popular Financial Societies must deliver a receipt of the operation to the acquirer.

. . .

In no case may the balance of each reloadable card be greater than the equivalent to 1,500 UDIS. In the case of cards in which the acquirer is identified, Popular Financial Societies may freely establish the amount.

. . .

Popular Financial Societies are obligated to return the balance of the resources assigned to the card in question in case the acquirer cancels the card or once its validity has ended. Such resources must be returned in accordance with what is established in the terms and conditions that for the operation of these cards the Popular Financial Societies deliver to their acquirers.

. . .

The cards may be successively credited. Resources may only be credited or transferred from one card to another when the information of the respective credit or transfer operation is registered in the issuing Popular Financial Society. In all cases, a receipt of the operation must be delivered or made available to whoever has made the respective credit or transfer.

h) Yields.

Popular Financial Societies may pay yields on the undispersed balances of the cards.

. . .

Popular Financial Societies, prior to the acquisition of the cards, must make known to the acquirers the amounts, concepts, and frequency of the commissions applicable to them.

Popular Financial Societies must inform the acquirers of the modifications to the commissions provided in the current terms and conditions, in posters, cardboards, or brochures, at least thirty days in advance of the date on which they intend for them to take effect. Acquirers may cancel the cards without any commission within the referred term.

. . .

Popular Financial Societies will freely determine the physical characteristics and security measures of the cards.

. . .

Popular Financial Societies may issue statements of account for the cards, in which case they must establish in the respective terms and conditions their frequency and the manner in which they may be consulted.

. . .

Popular Financial Societies are obligated to make known to the acquirers, prior to the acquisition of the cards, the terms and conditions of their operation, as well as to deliver them a copy of these at the time of acquiring them.

. . .

to 8.

. . .

For any type of deposit described in fractions I to VII of this article, Popular Financial Societies may freely determine, through general policies, the amount of the commissions charged to the account holder.

. . .

Likewise, Popular Financial Societies must inform the different types of account holders, through notices placed in a visible place in the branches, the interest rate and the commissions of each of the respective instruments.

VIII.

. . .

Popular Financial Societies may accept bills of exchange in national currency, which may be drawn by the Popular Financial Societies themselves, or by individuals or legal entities.

. . .

The acceptances that are drawn by individuals or legal entities must be subscribed based on credit lines that the accepting Popular Financial Society grants to them. These acceptances will be drawn to the order of the drawer itself.

. . .

The yield of the acceptances will refer to their placement at discount. Popular Financial Societies will freely determine the respective discount rate.

. . .

The acceptances may be issued at the term that the subscribing Popular Financial Society freely determines, not being less than one day.

. . .

2 .

. . .

Guarantees on credit titles will be granted based on credit lines that the guarantor Popular Financial Society grants to the subscriber of the titles.

In view of what is provided in article 15 of the General Law of Credit Titles and Operations, it is not necessary that, precisely on the date of subscription of a promissory note, the name of the beneficiary is indicated. Therefore, institutions may guarantee credit titles without the mention of the beneficiary as long as, also in accordance with the cited provision, this requirement is met prior to the presentation of the titles for payment.

. . .

and 4 . . . .

. . .

The guaranteed credit titles will be any credit in national currency that a person grants to a company or to an individual who carries out business activities, provided that said credit is documented with promissory notes on which the Popular Financial Societies grant their guarantee. For the purposes of this fraction, a company will be understood as any commercial society or decentralized organism that predominantly carries out business activities.

IX.

. . .

Popular Financial Societies may issue subordinated obligations that are not susceptible of being converted into shares or contribution certificates, of those provided for in articles 36, fraction IV, subsection c), and 36 Bis 1 of the Law. Such obligations must be placed by the issuing Popular Financial Society with the intermediation of a brokerage house.

. . .

Financial entities of any type, when acting on their own behalf. This prohibition is excepted for the following financial entities: i) investment companies in debt instruments and common ones, as well as in investment companies specialized in retirement funds, ii) brokerage houses that acquire the obligations for their subsequent placement in the public investor market, and iii) insurance mutual institutions and surety institutions, solely when they acquire the referred obligations as an investment object of their technical reserves and for value fluctuations.

National or foreign societies in which the issuing Popular Financial Society: is owner of shares with voting rights, representing at least fifty-one percent of the paid capital; has control of the general shareholders' meetings, or is in the position to name the majority of the members of the Board of Directors.

. . .

Popular Financial Societies are prohibited from:

Acquiring on their own behalf the subordinated obligations issued by them, as well as those issued by other Popular Financial Societies.

Granting credits or loans with guarantee of subordinated obligations under their charge or under the charge of other Popular Financial Societies.

. . .

In accordance with what is provided in article 36 Bis 1 of the Law, the issuing Popular Financial Society may defer the payment of interest and principal, as well as cancel the payment of interest that generate the obligations it subscribes, provided that it is established in the relative issuance act, in the informative prospectus, in any other type of publicity relative to the characteristics of the issuance in question, and in the titles that are issued, the cases, terms, and conditions in accordance with which it will carry out such acts.

. . .

The term of the obligations will be freely determined by the issuing Popular Financial Society.

. . .

The issuer may, prior authorization of the Commission, pay in advance the obligations it issues, provided that in view of what is provided in article 36 Bis 1 of the Law, in the issuance act, in the informative prospectus, in any other propaganda or publicity directed to the public, relative to the characteristics of the issuance in question, and in the respective titles, the terms, dates, and conditions of early payment are clearly described.

The authorization referred to in the preceding paragraph will be granted always that, once the payment is made, the Popular Financial Society in question maintains a Capitalization Level greater than 131 percent, calculated in terms of what is provided by the Capitalization Requirements established in the respective Sections of the

Chapter III of Title IV of these provisions, according to the amount of their assets.

. . .

Regarding preferred subordinate obligations, that their payment in the event of liquidation or commercial bankruptcy of the issuer shall be made pro rata, without distinction of issuance dates, after covering all other debts of the Popular Financial Company, but before distributing to the holders of shares or contribution certificates, as applicable, the social equity and regarding non-preferred subordinate obligations, that said payment shall be carried out under the same terms indicated above, but after having paid the preferred subordinate obligations;

That the issuer shall not acquire for its own account the subordinate obligations issued by itself, nor shall they be received as collateral by other Popular Financial Companies;

and 5.

. . .

The provisions in paragraphs 2 and 3 above must be stated in the account statements that Popular Financial Companies provide to the holders of the obligations for this purpose.

Popular Financial Companies must include in the corresponding credit instruments, in the issuance minutes, in the informative prospectus, as well as in any other instrument that documents an issuance of subordinate obligations, that in the event that, in terms of what is provided by article 73 of the Law, the issuing Popular Financial Company is classified in "category two" in terms of article 74 of the Law, the Popular Financial Company must defer the payment of the principal of the subordinate obligations it has issued whenever these count as part of the net capital of the issuing Popular Financial Company itself.

. . .

Popular Financial Companies wishing to issue subordinate obligations must present their authorization request to the Vice Presidency in charge of their supervision by the Commission, accompanied by the drafts of the issuance minutes and the titles to be issued in terms of what is provided by articles 208, 209 and 210 of the General Law of Credit Instruments and Operations, indicating likewise the conditions under which they will place said titles.

. . .

Popular Financial Companies may receive loans or credits from international financial organizations and institutions, subjecting themselves for such effects to the contracts, programs, policies or guidelines that document said operations. The loans or credits in question must be denominated in national currency.

XI.

. . . "

" Article 25.- Popular Financial Companies, in the contracting of the active operations indicated by article 23, must be subject to the provisions that result applicable, as well as to the following terms and conditions:

Loans or credits for terms up to 60 months, more than 60 and up to 96 months and superior to 96 months to their Clients.

. . .

Without prejudice to the foregoing, Popular Financial Companies may grant loans or credits to their Clients, for terms superior to those indicated in this fraction, when the loans or credits are granted with resources coming from credit institutions, institutions belonging to the public administration and public trusts, constituted by the Federal or state Government for economic promotion, that carry out financial activities, provided that said institutions and trusts are constituted as holders or co-holders of the respective credit rights and assume total or partially the risk of default in payment, in which case, the terms will adjust to the policies and guidelines that, for this effect, establish the development banking institutions or trusts in question.

In no case may Popular Financial Companies grant credits for terms superior to 30 years.

. . .

to 5.

. . .

Popular Financial Companies may not agree on alternative rates.

Regarding credit openings in which Popular Financial Companies have not waived the right to denounce them at any time, the parties may agree in the legal instruments that document said credit openings, that the applicable interest rate will be fixed at the moment that each of the disbursements of the respective credit is made. In the determination of said interest rate, Popular Financial Companies must strictly adjust to what is provided in this subsection.

. . .

Popular Financial Companies must abstain from agreeing in the legal instruments that document their credits, mechanisms to modify during the validity of the contract, the formula to determine the interest rate as well as the other financial accessories.

. . .

In the event that Popular Financial Companies agree on the interest rate based on a reference rate, they must also agree that said reference rate must be the last published during the period agreed for the determination of the interest rate or that resulting from the arithmetic average of said rates, published during the referred period. This understanding that the interest rate determination period does not necessarily have to coincide with the period in which interests accrue.

e) and f)

. . .

Popular Financial Companies must agree on one or more substitute reference rates, for the event that the originally agreed reference rate ceases to exist.

Popular Financial Companies that agree on substitute reference rates must additionally agree on the number of percentage points or their fractions that, as applicable, are added to the corresponding substitute rate, as well as the order in which said substitute reference rates would replace the originally agreed one.

. . .

II.

. . .

a) and b) . . .

. . .

For the effects of what is provided by subsection b) of fraction III of article 23 of these provisions, values shall be understood as: shares, bonds, debentures, certificates and other credit instruments and documents that are issued in series or in mass in terms of the laws that govern them, destined to circulate in the securities market, including bills of exchange, promissory notes and optional titles that are issued in the aforementioned manner and, as applicable, under the protection of an issuance minutes, when by legal provision or by the nature of the acts contained in the same, this is required.

Popular Financial Companies with Level of Operations I, II and III may only carry out investments as indicated in subsection l) of fraction I; d) of fraction II, and b) of fraction III, respectively, of article 23 of these present provisions, so they may not make them for speculative purposes.

III.

. . .

Popular Financial Companies may assign or discount their credit portfolio with or without their responsibility, with public trusts, constituted by the Federal or state Government for economic promotion, or credit institutions.

IV.

. . .

Popular Financial Companies may assign or discount their credit portfolio, without their responsibility, with any national or foreign natural or legal person, with the exception provided in subsection k) of this fraction.

In the contracts that document the assignment or discount operations of portfolio referred to in the immediate preceding paragraph, mechanisms of charge to the assigning or discounting Popular Financial Company by virtue of which the payment of the assigned or discounted portfolio is secured, nor any other type of stipulation that implies the guarantee of the Popular Financial Company in question for the payment of the portfolio object of the assignment or discount, or the assumption of the risk of recovery of the assigned or discounted credits by the assigning or discounting Popular Financial Company may be agreed.

Popular Financial Companies that carry out assignments or discounts of portfolio with national or foreign natural or legal persons, must observe the following guidelines:

The assigning or discounting Popular Financial Company may not grant, directly or indirectly, any financing for the acquisition or discount of said portfolio, except that:

and 2.

. . .

The assigning or discounting Popular Financial Company is prohibited from agreeing as part of the assignment or discount operation of the corresponding portfolio, the obligation to acquire or reacquire, as applicable, the assigned or discounted portfolio;

. . .

Assignment or discount transactions of portfolio that have as object operations that on the date of the transaction are considered as operations with related persons defined in terms of what is provided by articles 35, 35 Bis and 35 Bis 1 of the Law, as well as those that are celebrated with any of the persons referred to in said articles, must be previously approved by the Board of Directors of the assigning or discounting Popular Financial Company, in conformity and with adherence to the requirements for the celebration of said operations established in articles 35, 35 Bis and 35 Bis 1 of the Law;

d) to e)

. . .

The Popular Financial Company must make known to the Federation to which it is affiliated or that supervises it in an auxiliary manner, the credits that are assigned or discounted, indicating the status in which said credits are on the date of the respective assignment or discount;

The assigning or discounting Popular Financial Company must agree in the contracts that instrument each assignment or discount of portfolio the obligation incumbent on the assignee or discounter to inform timely, periodically and in writing to the Credit Information Societies the situation of the credits object of the transaction, in terms of the provisions or stipulations applicable to said societies;

Popular Financial Companies must obtain from the person who intends to act as assignee or discounter, prior to the celebration of the transaction, written evidence in which the prospective discounter or assignee declares, under oath, by himself or through a person legally authorized to carry out administrative acts, the following:

and 2.

. . .

Popular Financial Companies must corroborate with the Credit Information Societies what is stated in paragraph 1, of subsection h) of this fraction and abstain from carrying out the corresponding assignment or discount operation of portfolio, when they detect that the prospective assignee has not timely provided the referred societies with the corresponding information;

The assigning or discounting Popular Financial Company must notify by written communication, the assignment or discount of portfolio in question, to those persons who by virtue of the credits object of the assignment or discount are its debtors, provided that the credits in question are considered valid in accordance with the corresponding accounting regulations, and

. . .

Popular Financial Companies that intend to carry out operations of assignment or discount of portfolio without their responsibility, according to what is established in this fraction, must give notice of the general terms and conditions of the operation to the Federation to which they are affiliated or to that which exercises auxiliary supervision powers over them, with an advance of 5 banking business days to the date on which they intend to carry out the transaction. Regarding operations of assignment or discount of portfolio with responsibility, they must give notice additionally to the Commission, within the term indicated above.

Popular Financial Companies wishing to assign or discount their portfolio or in general transmit or affect the ownership of it in terms different from those established in this Chapter, must request authorization from the Commission, through the Vice Presidency of Normativity.

. . .

Popular Financial Companies must observe the "Rules to which multiple banking institutions and limited object financial companies must be subject in the issuance and operation of credit cards", issued by the Bank of Mexico, as well as its modifications

VI.

. . .

Popular Financial Companies may only carry out investments in the social capital of the Federation to which they are affiliated, in titles representing the social capital of the Bank of Well-being, S.N.C., Development Banking Institution, as well as in shares of Administrators of Funds for Retirement, Specialized Investment Societies in Funds for Retirement and Operating Societies of Investment Societies, prior agreement of their Board of Directors and charged to their social capital.

Popular Financial Companies wishing to carry out investments in Administrators of Funds for Retirement, Specialized Investment Societies in Funds for Retirement and Operating Societies of Investment Societies, must present their request for authorization to the Vice Presidency in charge of their supervision by the Commission, in which the corresponding investment amount is detailed.

In all cases, the investments referred to in this fraction that Popular Financial Companies carry out may not amount in their entirety, to 20 percent of their minimum capital. "

" Article 26.- Popular Financial Companies, may receive payment for services on behalf of third parties, provided that the foregoing does not imply for the society the acceptance of direct or contingent obligations.

Popular Financial Companies may receive payments regarding services that third parties provide to their Clients, for which they must celebrate with said third parties, service provision contracts for the situation of funds.

Likewise, Popular Financial Companies when receiving resources from their Clients must inform them of the character with which the resources are received, which must be stated in the receipt that they issue for such effects.

. . .

Article 27.- Popular Financial Companies, may carry out the purchase and sale of foreign exchange, on behalf of third parties

Popular Financial Companies in the realization of purchase and sale of foreign exchange on behalf of third parties are prohibited from assuming any type of exchange risk.

Article 28.- Popular Financial Companies will freely determine, based on their costs and policies, the amount of the fees and honors corresponding to the following services:

Payments on behalf of their Clients;

II. and III.

. . .

Popular Financial Companies must inform their Clients, prior to the provision of the service in question, the amount of the fees and honors corresponding.

Popular Financial Companies must maintain information relative to the amount of commissions they charge for the services they offer to the public related to their active, passive and service operations in their branches either in posters, cardboard or brochures, or allow that it is obtained through an electronic medium located in said branches, so that any person who requests it is in the possibility of consulting it gratuitously. "

" Article 29.- Popular Financial Companies, in order to carry out any of the operations provided in the Law and in this Title, in terms different from those indicated here, must have the prior authorization of the Commission, for which they must present their respective request for authorization with favorable opinion of the Federation that supervises them auxiliarily. "

" Article 31.- Popular Financial Companies, in their policy and procedure manuals for the granting of credits, must establish mechanisms to detect, prior to the celebration of any financing operation, if the applicant person has any relation with the Popular Financial Company in question, in terms of articles 35, 35 Bis and 35 Bis 1 of the Law.

. . .

Article 32.- Popular Financial Companies, in their policy and procedure manuals for the granting of credits, must establish mechanisms that allow them to identify those cases in which the persons with whom they have celebrated operations and that at the time had not been considered as related, are located subsequently in any of the cases provided by articles 35, 35 Bis and 35 Bis 1 of the Law.

Likewise, in the aforementioned manuals, Popular Financial Companies must establish the necessary measures to avoid that, in the case indicated in the preceding paragraph, new operations exceed the limit established in the seventh paragraph of article 35 Bis of the Law.

. . .

Article 33.- Operations with related persons that must be submitted to the approval of the Board of Directors in terms of what is provided by articles 35 and 35 Bis of the Law, will be presented through and with the favorable opinion of the Credit Committee or whoever performs its functions in the Popular Financial Company in question, if approved, a certified copy of the agreement in which the approval of the operation is stated must be presented to the Commission, within the 15 banking days subsequent to the session of the Board of Directors of the Popular Financial Company in which the cited operation was approved, informing it in writing of the characteristics of the credit granted, the way in which its payment will be made and, as applicable, its renewal or its extinction.

Article 34.- The Board of Directors may delegate the powers provided by article 35 of the Law and by this Chapter, to a committee of councilors, whose function will be exclusively the approval of individual operations with related persons, in which the amount of each one does not exceed seventy-five thousand investment units or the zero point five percent of the net capital of the Popular Financial Company, whichever is less. Said committee will be integrated by a minimum of four and a maximum of seven Councilors, of which, at least, one third must be Independent Councilors, in terms of what is provided in article 19 of the Law

and article 14 of these present provisions.

In said committee there may not be more than one councilor who, at the same time, is an official or employee of the Popular Financial Company, of the members of the financial group to which it belongs, or of the controlling society itself.

. . .

Article 35.- . . .

The report referred to in the preceding paragraph must contain, at least, the following information:

. . .

II.

List of the persons to whom the respective committee authorized operations, indicating the amount and general characteristics, as well as the date of approval and the nature of the relationship in conformity with articles 35, 35 Bis and 35 Bis 1 of the Law;

III.

List of the persons to whom the respective committee rejected operations, indicating the requested amount and general characteristics, as well as the date of the resolution and the nature of the relationship in conformity with articles 35, 35 Bis and 35 Bis 1 of the Law;

IV. and V.

. . .

Article 36.- Popular Financial Companies, in their policy and procedure manuals for the granting of credits, must foresee the existence of the necessary information mechanisms so that all instances involved in the granting and authorization of operations referred to in this Chapter, have knowledge of the operations carried out prior to a term equal to that established by the Law to Regulate Credit Information Societies for the conservation of the information that, in relation to natural persons, is provided by the Users referred to in the own law. The foregoing, with the object that said instances act in strict adherence to what is provided by the Law and by this Chapter.

Article 37.- Popular Financial Companies must have available to the Commission and to the Federation that supervises them in an auxiliary form, all the information relative to the operations they have celebrated with related persons, including the reports delivered to the Board of Directors and the information that supports them, as well as the respective individual files.

" Article 39.- Popular Financial Companies may request to the Federation to which they are affiliated or with which they have celebrated a contract of auxiliary supervision, to authorize them the granting of liquidity loans at the charge of one or more Popular Financial Companies that supervise in an auxiliary manner the same Federation, proposing for this effect the amount, destination, term, interests, guarantees and other characteristics of the operation in question.

Article 40.- Federations must establish general guidelines and policies, as well as the format of the framework contract, for the granting of liquidity loans that are granted to Popular Financial Companies that they supervise in an auxiliary manner. Said guidelines must contain as minimum the following:

Destination: Loans may only be granted with the object of attending transient liquidity problems presented by accredited Popular Financial Companies. For this, the Board of Directors of the Federation must evaluate, in each case, the financial situation of the Popular Financial Companies and verify that the destination of said loans is expressly stated in the respective contracts;

II.

Term: Loans will be granted for a term not greater than 180 days, including the renewals that, as applicable, are granted. Notwithstanding, the Federation, taking into consideration the market circumstances and the particular situation of the requesting Popular Financial Company, may authorize a renewal for up to 180 additional days, provided that the accrediting and the accredited do not incur in a solvency risk, for which they must be located within Category 1 of capitalization, and

III.

Guarantees: Loans must be guaranteed to the satisfaction of the accrediting Popular Financial Company

Article 41.-

It will correspond to the Board of Directors of the Federations, as applicable, to approve the requests that Popular Financial Companies present to them for the granting of liquidity loans that they supervise in an auxiliary manner; the general guidelines and policies, as well as the framework contracts, referred to in article 40 of these present provisions.

Without prejudice to what is provided

in article 40 cited above, the amount of each of the liquidity loans of

liquidity granted under the respective contract must be previously authorized by the

Board of Directors of the corresponding Federation.

. . .

All liquidity loans must be granted or renewed against the excess of the minimum required net capital of the accrediting Popular Financial Society, so the Popular Financial Society must deduct it from its capital;

II.

The amount of the liquidity loan or set of liquidity loans that an accrediting Popular Financial Society keeps active may not exceed 10 percent of its net capital.

III.

The amount of the liquidity loan or set of liquidity loans granted or renewed by a Popular Financial Society may not place said Popular Financial Society below the liquidity coefficient that, in accordance with applicable provisions, it must maintain.

Article 42.- In the event of late payment of a liquidity loan, the accrediting Popular Financial Society must notify the Federation no later than the next business day following maturity, which shall proceed to conduct an investigation in the debtor Popular Financial Society to identify and evaluate the causes of the default and adopt, if applicable, the appropriate measures in terms of what is established in articles 73 to 80 of the Law. This is without prejudice to the exercise of the actions corresponding to the accrediting Popular Financial Society for the recovery of the credit. "

" Article 44.- Popular Financial Societies must have a minimum capital, which shall be integrated with the sum of the share capital plus the capital reserves and, if applicable, the item referred to as "Effect from incorporation into the savings and credit entity regime" as referred to in fraction VII of article 2 of these provisions. The share capital must be fully subscribed and paid. The minimum capital for Popular Financial Societies subject to this regulation shall be 100,000 (one hundred thousand) UDIS.

When the financial situation of a Popular Financial Society requires it, the Commission may grant, on a one-time basis, a period of 6 months to said Popular Financial Society to adjust to what is established in this Section, independent of what is stated in the previous article 43.

Popular Financial Societies must suspend the payment of dividends or the distribution of capital remnants to their partners, and in general any other mechanism that implies a transfer of patrimonial benefits to partners, while they have a shortfall in their minimum capital.

Partners of Popular Financial Societies may request the withdrawal of their contributions, provided that such withdrawal does not affect the minimum capital or the Capitalization Level that Popular Financial Societies must observe in accordance with this Section. "

" Article 48.- The Popular Financial Society must monthly compute the capitalization requirements, which must be sent within the following 30 days from the date of the computation to the Federation that supervises it in an auxiliary manner, in the form and terms established by said Federation. The capital requirements and net capital shall be determined based on balances on the last day of the month in question.

Article 49.- The corresponding Federation, in addition to carrying out and verifying the calculation of the requirements and integration of capital, may require that the computation of the capital requirements be sent with greater frequency and on any date for a specific Popular Financial Society, when it judges that between the days that pass between one computation and another, such Popular Financial Society is assuming risks notably higher than those shown by the closing figures of each month. "

" Article 52.-

. . .

Credit risk: to possible losses for the Popular Financial Society due to the failure to pay by a borrower;

II.

Operational risk: to possible losses for the Popular Financial Society due to errors or failures in the development of administrative and operational business activities, and

III.

Internal control system: to the set of objectives, policies, procedures, and records that the Popular Financial Society establishes, with the purpose of:

. . .

Delimiting the different functions and responsibilities of personnel within the Popular Financial Society;

. . .

Article 53.-

. . .

It shall be responsible for defining the internal control guidelines for the prudent management of the Popular Financial Society, for which it must approve and review at least every two years the internal control manual and the credit manual of the Popular Financial Society.

Additionally, it shall be responsible for defining and approving the guidelines, policies, and objectives of the Popular Financial Society;

II.

. . .

III.

Regarding the internal control manual, it shall be responsible for approving the organizational structure of the Popular Financial Society and monitoring compliance with corrective measures, which derive from the reports issued by the Supervisory Council or Comisario;

IV.

In the credit manual, it must establish limits regarding the granting of credit, as well as the type of borrowers and credit products that the Popular Financial Society will offer;

. . .

VI.

It must appoint the person responsible for the Popular Financial Society, to document in manuals, the policies and procedures related to the operations proper to its object, which must be consistent with the guidelines, policies, and objectives established by the same Council and once the corresponding manuals are concluded, they must be sent for authorization by the Director or General Manager. Such appointment may fall to the Technical Assistance area of the Federation that supervises it in an auxiliary manner.

The Board of Directors may constitute a risk committee whose object is the administration of the risks to which the Popular Financial Society is exposed, as well as to monitor that the execution of operations complies with the internal control guidelines in matters of credit and operational risk, for the prudent management of the Society approved by the council itself. For such purposes, the risk committee must be subject to what is established by article 164 of these provisions.

Likewise, the Board of Directors may integrate an audit committee, whose object is to support the council itself in the definition of the general guidelines of the internal control system, as well as in the verification and evaluation of said system, acting as a communication channel between the Board of Directors and supervisory authorities. Said committee must adjust to what is established by article 183 of these provisions.

The risk committee and the audit committee that, if applicable, are constituted, may perform any of the functions referred to in articles 165 and 184 of these provisions, as applicable, as well as other activities related to the function in question and that in terms of these provisions are in charge of the aforementioned committees.

Popular Financial Societies must present a notice to the Commission regarding the constitution of the committees referred to in this article, in which they indicate the functions that said committees will carry out, within five business days following their constitution. "

Article 54.-

. . .

II.

. . .

Promotion and granting of credit: The methods of approval and granting of credit,

among which the procedure for automatic authorizations referred to in

article 58 of this Section must be included

. . .

Likewise, when concluding credit operations with the persons referred to in

articles 35, 35 Bis and 35 Bis 1 of the Law, they must indicate in the respective credit files

that it is an operation concluded with related persons in the

terms of the cited articles, clearly identifying such condition in the

file, accompanying the declaration and corresponding information provided and

signed by the applicants.

c) and d)

. .

. "

" Article 54 Bis 1.- Popular Financial Societies in order to accredit to the Federation that

supervises them in an auxiliary manner that they have the necessary technology and infrastructure to carry out the

granting of Microcredits must present a document signed by the Director or General Manager of the

Popular Financial Society, which includes the following:

The statement that they have carried out a self-evaluation regarding the technology and

infrastructure of the Popular Financial Society in question, from which it is clear that

it has the capacity and necessary means to carry out the granting of

Microcredit;

II.

The description of the policies and procedures that the Popular Financial Society will use for

the granting of Microcredits, approved by the competent persons or collegiate bodies, and

III.

. . .

However, the Commission, as well as the Supervision Committee of the Federation that supervises in an auxiliary manner the Popular Financial Society in question, may issue observations regarding the policies and procedures, as well as the internal control mechanisms implemented for this purpose by the Popular Financial Society itself.

Article 55.-

. . .

I. and II.

. . .

III.

Likewise, it shall be responsible for establishing the functions of comptrollership, directly or through

the persons it considers appropriate, which will imply the establishment and daily monitoring

of necessary measures to review that the activities of the Popular Financial Society

are consistent with its objectives, as well as to verify strict compliance with laws,

internal regulations, manuals, and other applicable provisions, and

IV. to VII. . . .

In the event that Popular Financial Societies have a risk committee integrated in accordance with

what is provided by article 164, second paragraph of these provisions, they may

assign to said committee the attributions and obligations indicated in fractions V and VII of this article.

In the event that the Societies have an audit committee constituted in accordance with article 183 of

these provisions, the attribution indicated in fraction VI of this article may be entrusted to said committee. In the case referred to in article 209 Bis 7, first paragraph of this instrument, and in case

that Popular Financial Societies have an audit committee in the terms mentioned above, said committee shall be responsible for presenting the report referred to in fraction V of this

article.

. . .

Article 56.-

. . .

The daily execution of the internal control system as established by the Board of

Directors, within which will be implementing action measures in case of contingencies

that may affect the operation or information systems of the Popular Financial Society;

II. to IV.

. . .

a) to c) . . .

The most important borrowers of the Popular Financial Society in terms of the amount of

their credits, as well as the respective amounts.

. . .

Article 57.- The Credit Committee or its equivalent shall be the body responsible for the approval of credits requested from the Popular Financial Society and for such approval it must follow the guidelines established for this purpose in the manuals.

The Popular Financial Society that complies with the capitalization requirements for credit risk corresponding and in general with what is established in this Section, shall be relieved of the obligation to have the approval of the Credit Committee or its equivalent, when the total amount of credits granted by said Popular Financial Society to the applicant person, including their economic dependents, is not greater than 5,000 (five thousand) UDIS, and provided that its credit manual provides for automatic authorization processes, in accordance with what is established in the following article 58.

Regarding credits for which the Popular Financial Society has guarantees for

100 percent constituted with cash in terms of what is provided in Section IV of Annex D of these provisions, the Popular Financial Societies shall be relieved of the obligation to have the approval of the Credit Committee or its equivalent. This, based on the limits established for this purpose by its Board of Directors.

Article 58.- Popular Financial Societies may establish in the credit manuals

processes for automatic authorization of credits that allow granting the corresponding credit to

any applicant, provided that the conditions indicated below are met:

. . .

II.

Identification of the applicant, as well as the purpose for which the credit is requested or, if applicable,

characteristics of the deposits that the applicant maintains in the Popular Financial Society;

III. and IV.

. . .

. . . "

" Article 59.- Popular Financial Societies must qualify and constitute preventive estimates for credit risks corresponding to their credit portfolio in accordance with the methodology established in the Sections contained in Annex D of these provisions in accordance with the type of credit that corresponds.

Popular Financial Societies may opt to apply to the entirety of their portfolio the methodology established in numeral I of Annex D, or the methodology in accordance with the type of credit that corresponds.

Article 60.-

. . .

The constitution of additional preventive estimates, if in their judgment so appropriate, taking into

account the credit risk assumed by the Popular Financial Society in its operations, in

case that such Popular Financial Society departs from applicable regulations or from the

policies and procedures established in credit matters, and/or

II.

The suspension in the granting of new credits by those Societies

Popular Financial Societies whose credit activity, in general, presents serious deficiencies

in accordance with applicable provisions. "

" Article 61.-

. . .

In the case of receivables and movable goods, including securities in accordance with what is

established in fraction II of article 25 of these provisions, the estimates shall be constituted as follows:

[Table] . . .

. . .

II.

. . .

. . . "

" Article 62.- Popular Financial Societies must maintain minimum liquidity levels in

relation to their short-term liability operations.

. . .

Popular Financial Societies must maintain a position of at least the equivalent to

10 percent of their short-term liabilities, invested in bank deposits of demand money, as well as in

bank securities, government securities, other investments in debt securities, and in cash availability, whose maturity term is equal to or less than 30 days. This, in accordance with the investments they can make according to their Level of Operations.

The Commission or the corresponding Federation, provided that the latter informs the Commission itself,

may increase the liquidity coefficient when in their judgment and taking into account the risks assumed by

the Popular Financial Society in question, such measure is justified. "

" Article 63.-

. . .

Such limits shall not be applicable in cases where a Popular Financial Society

grants liquidity loans to Popular Financial Societies affiliated with its Federation,

as well as to those Popular Financial Societies not affiliated that supervise in an auxiliary manner

the Federation itself, provided that such credits have been deducted from their

capital, in accordance with what is provided in subsection h), fraction I of article 36 of the Law.

. . .

II. and III.

. . .

Article 63 Bis.- Popular Financial Societies will not have to identify the credits that

represent a "Common Risk" in the terms provided by fraction I of article 63 above, provided that

the sum of the twenty credits with the largest outstanding balance granted by the Popular Financial Society

does not represent more than 10 percent of the total portfolio of the Popular Financial Society and no credit is

greater than 3.5 percent of its net capital. For these limits, the covered part in the terms indicated

in article 63 fraction I, penultimate paragraph is not considered.

For such purposes, Popular Financial Societies will only carry control regarding the links

patrimonial and kinship of the borrowers that exceed 2 percent of their net capital.

However, if the Popular Financial Society had evidence allowing it to infer the existence

of links between borrowers that, collectively, could exceed the diversification limits provided by

fraction I of article 63 above, they must establish monitoring procedures for the follow-up of the

behavior of the persons in question. "

" Article 65.- Popular Financial Societies must have a minimum capital, which shall be

integrated with the sum of the share capital plus the capital reserves and, if applicable, the item referred to as "Effect

from incorporation into the savings and credit entity regime" as referred to in fraction VII of

article 2 of these provisions. The share capital must be fully subscribed and paid. The

minimum capital for Popular Financial Societies subject to this regulation shall be 500,000

(five hundred thousand) UDIS.

When the financial situation of a Popular Financial Society requires it, the Commission may

grant it, on a one-time basis, a period of six months to adjust to what is established in this Section, with

independence of what is stated in the previous article 64.

Popular Financial Societies must suspend the payment of dividends or the distribution of

capital remnants to their partners, and in general any other mechanism that implies a transfer of

patrimonial benefits to partners, while they have a shortfall in their minimum capital.

Partners of Popular Financial Societies may request the withdrawal of their contributions, provided

that such withdrawal does not affect the minimum capital or the Capitalization Level that must be observed by

Popular Financial Societies in accordance with this Section. "

" Article 67.-

. . .

I. and II.

. . .

III.

. . .

[Table] . . .

. . .

Regarding repo operations, Popular Financial Societies must determine

in advance of the credit risk weighting, the result of subtracting from the debtor's balance

for repo, the corresponding fair value of the collateral received in each operation, to which

the Accounting Criteria contained in Annex E of these Provisions refer.

In case that the result obtained is positive, such difference will be multiplied by the weighting

corresponding to the risk group of the counterparty.

. . .

Article 68.- The capital requirement for market risk shall be that obtained by applying 1 percent to the total amount resulting from the sum of the credit portfolio granted by Popular Financial Societies, net of the corresponding preventive estimates for credit risks, and the total of investments in securities.

. . . "

" Article 70.- The Popular Financial Society must monthly compute the capitalization requirements, which must be sent within the following 30 days from the date of the computation to the Federation that supervises it in an auxiliary manner, in the form and terms established by said Federation. The capital requirements and net capital shall be determined based on balances on the last day of the month in question.

Article 71.- The corresponding Federation, in addition to carrying out and verifying the calculation of the requirements and integration of capital, may require that the computation of the capital requirements be sent with greater frequency and on any date for a specific Popular Financial Society, when it judges that between the days that pass between one computation and another, such Popular Financial Society is assuming risks notably higher than those shown by the closing figures of each month.

The Commission, in terms of the second paragraph of article 36 of the Law, will resolve regarding the risk weighting percentages and procedure to determine the conversion value, which will be applicable regarding analogous or related operations to those referred to in the cited article. "

" Article 74.-

. . .

Credit risk: to possible losses for the Popular Financial Society due to the failure to pay

by a borrower.

II.

Operational risk: to possible losses for the Popular Financial Society due to errors or failures

in the development of administrative and operational business activities.

III

In the administration of credit risk, Popular Financial Societies must as a minimum:

Regarding credit risk in general, establish policies and procedures that

contemplate the following aspects:

Risk limits that the Popular Financial Society is willing to assume;

If applicable, economic sector and geographic zone in which the Popular Financial

Society may conclude operations;

Risk limits attributable to a person or group of persons that represent a

"Common Risk", in accordance with the definition established in fraction I

of article 97 of these provisions, and

. . .

IV.

According to the complexity of their operations, Popular Financial Societies must

carry out with the frequency that their Council determines the analysis of maturity gaps of their

assets and liabilities, which allow them to manage their liquidity and for cases where it is identified that the

sensitivity to movements in market rate levels is affecting income and

costs associated with said assets or liabilities, they must additionally evaluate the convenience of

adding to the gap analysis the repricing dates, which allow them to manage better the market risk.

Article 75.- In matters of risk administration, the Board of Directors of each Popular Financial Society shall have the following responsibilities:

Establish the general objectives regarding the risk exposure of the Popular Financial Society,

specifying, among others, the market segments it will attend, the type and characteristics of the

main operations it will conclude, and other aspects related to the risk profile that

intended;

II.

Approve the policies and procedures for the administration of credit risk and other risks of the Popular Financial Company, as well as the exposure limits to credit risk and others, and

III.

Designate the person who will be responsible for the risk administration of the Popular Financial Company, upon proposal of the Director or General Manager.

The policies and procedures mentioned in fraction II of this article must be included in a risk administration manual and reviewed at least once a year. The Board of Directors may hear the opinion of the technical committee referred to in article 80 of these provisions, or, if applicable, the Technical Assistance area of the Federation that supervises it auxiliarily, for the purposes of approving said manual, as well as its modifications.

The Board of Directors may constitute a risk committee whose object is the administration of the risks to which the Popular Financial Company is exposed, as well as to oversee that the execution of operations complies with the policies and procedures for risk administration approved by the aforementioned council. For such purposes, the risk committee must adhere to what is established by article 164 of these provisions and may perform any of the functions indicated in article 165 of this instrument, as well as other activities related to the function in question and which, under these provisions, are under the charge of said committee.

. . .

Article 76.-

. . .

The Federation that carries out the auxiliary supervision of the Popular Financial Company may, in turn, provide the risk administration service through the Technical Assistance area, which will perform the functions mentioned in this article. For such purposes, the Federation may contract with specialized third parties for the aforementioned risk administration.

In the event that Popular Financial Companies have a risk committee integrated in accordance with what is provided by article 164 of these provisions, they may assign to said committee the function indicated in fraction VI of this article. In the case referred to in the first paragraph of article 209 Bis 7 of this instrument, and in the event that Popular Financial Companies have an audit committee constituted in terms of article 183 of these provisions, said committee will be responsible for presenting the report referred to in fraction VI of this article.

Article 77.- The Director or General Manager must propose to the Board of Directors the designation of the person who will be responsible for the risk administration of the Popular Financial Company, guaranteeing the independence of said person with respect to business areas.

Likewise, the Director or General Manager will be responsible for implementing action measures in case of contingencies that may affect the operation or information systems of the Popular Financial Company, as well as spreading a greater culture in terms of risk administration, designing training programs in this matter for personnel involved in the operation or risk administration of the Popular Financial Company.

Article 78.-

. . .

Popular Financial Companies may assign the functions of fractions I to III of this article to an internal audit or comptroller area, independent of the business, administrative, and comptroller areas they may maintain, or entrust them to an independent specialized third party.

In the event that Popular Financial Companies have an audit committee constituted in terms of article 183 of these provisions, they may assign to said committee the function referred to in fraction IV of this article.

" Article 79.- For the purposes of this Section, internal control system shall be understood as the set of objectives, policies, procedures, and records that the Popular Financial Company establishes with the object of:

. . .

II.

Delimiting the different functions and responsibilities of personnel within the Popular Financial Company;

III. and IV.

. . .

Article 80.-

. . .

It must appoint the responsible person for the Popular Financial Company, to document in manuals the policies and procedures related to its own operations, which must be consistent with the guidelines, policies, and objectives established by the same Board, and once the corresponding manuals are concluded, they must be sent for authorization of the Director or General Manager. This person may be assisted by the Technical Assistance area of the Federation that supervises it auxiliarily, without this being understood as the aforementioned Technical Assistance area being responsible for the cited policies and procedures. The foregoing with the exception of those related to risk and credit administration, which will be the responsibility of the Board to approve.

II.

Approve the organizational structure of the Popular Financial Company;

III. to V. . . .

. . .

The Board of Directors may constitute an audit committee whose object is to support the council itself in the definition of the general guidelines of the internal control system, as well as in the verification and evaluation of said system, acting as a communication channel between the Board of Directors and the external auditor or supervisory authorities. For such purposes, the audit committee must adhere to what is established by article 183 of these provisions and may perform any of the functions indicated in article 184 of this instrument, as well as other activities related to the function in question and which, under these provisions, are under the charge of said committee.

. . .

Article 81.- Popular Financial Companies must adequately document the policies and procedures of all their activities, in operation manuals. These manuals will be the basis of operation, as well as the reference to evaluate the effectiveness and performance of internal controls.

Operation manuals must be reviewed and, if applicable, updated at least once a year in accordance with what is provided in article 80 above, and must be made known to the Councilors, Members of the Supervisory Council or Comisario, and to the officials and employees of the Popular Financial Company who, due to their functions, require knowing them.

Article 82.-

. . .

The organizational and functional structure of each area of the Popular Financial Company, as well as the individual responsibilities assigned;

II.

The communication channels and information flow between the different areas of the Popular Financial Company;

III. to V. . . . "

" Article 84.-

. . .

II.

. . .

There is a clear delimitation of functions and responsibilities between the units of the Popular Financial Company, as well as the independence between the areas or functions that require it.

III. and IV. . . .

. . .

Article 85.-

. .

The Comisario will be responsible for performing the comptroller functions referred to in this article, which may be delegated to the personnel that the Comisario considers appropriate and must contemplate, at least, the following aspects:

I. to IV.

. . .

Article 86.- Popular Financial Companies must implement a code of ethics, approved by the Board of Directors or, if applicable, by the technical committee referred to in article 80 of these provisions, in which appropriate and prudent rules are established that govern the conduct and adequate behavior of their Councilors and Members of the Supervisory Council or Comisario, officials and employees, in their interaction with clients and within the Popular Financial Company itself. The code of ethics must contemplate, as a minimum, the following aspects:

. . .

II.

Respect the confidentiality of clients, the operations of the Popular Financial Company and, in general, institutional information.

The code of ethics must be reviewed at least once a year in accordance with what is provided in article 80 of these provisions, and must be made known to the councilors, officials and employees of the Popular Financial Company. "

" Article 87.- For the purposes of this Section, credit activity shall be understood as the placement by Popular Financial Companies of resources, both own and those captured from third parties, through guarantees, loan operations, or any operation that directly or indirectly may generate credit rights in its favor. "

Article 88.-

Popular Financial Companies must have a credit manual approved by the Board of Directors, to which the Credit Committee or its equivalent must adhere. The Board of Directors may hear the opinion of the technical committee referred to in article 80 of these provisions, for the purposes of approving said manual, as well as its modifications. The manual must contain credit policies and procedures, with the minimum guidelines in the stages of the credit process as follows:

. . .

Identification of the applicant, as well as the purpose for which the credit is requested or, if applicable, characteristics of the deposits that the applicant maintains in the Popular Financial Company;

and 4.

. . .

b) to d) . . .

. . .

II. to V.

. . .

VI.

. . .

In the case of borrowers representing a "Common Risk", in accordance with the definition established in fraction I of article 97 of these provisions, the file formed must be combined with those of those persons who represent the "Common Risk".

Likewise, said Popular Financial Companies, when celebrating credit operations with the persons referred to in articles 35, 35 Bis and 35 Bis 1 of the Law, must indicate in the respective credit files that it is an operation celebrated with related persons in the terms of the cited articles, clearly identifying said condition in the file, accompanying the declaration and corresponding information provided and signed by the applicants.

. . .

a) to g) . . .

. . .

. . . "

" Article 89.-

In addition to the minimum guidelines established in fractions I to VI of article 88 above, Popular Financial Companies must delimit the different functions and responsibilities in the development of credit activity, striving at all times for independence in their activities to avoid conflicts of interest, taking into account, among others, the following measures:

I. and II.

. . .

III.

The control and review of compliance with credit norms, policies, and procedures, in accordance with fraction II of article 88 above, and

IV.

The evaluation and follow-up of the credit risk of the Popular Financial Company, in accordance with fraction III of article 88 above.

Article 90.- The credit manual must be reviewed at least once a year by the Credit Committee or its equivalent, together with the Director or General Manager and, if applicable, the modifications must be submitted for authorization of the Board of Directors, which may hear the modification proposals made by the technical committee referred to in article 80 of these provisions. "

" Article 91 Bis 1.- Popular Financial Companies, in order to certify to the Federation that supervises them auxiliarily that they have the necessary technology and infrastructure to carry out the granting of Microcredits, must present a document signed by the Director or General Manager of the Popular Financial Company, which includes the following:

The statement that they have carried out a self-evaluation regarding the technology and infrastructure of the Popular Financial Company in question, from which it is evident that it has the capacity and necessary means to carry out the granting of Microcredit;

II.

The description of the policies and procedures that the Popular Financial Company will use for the granting of Microcredits, approved by the competent persons or collegiate bodies, and

III.

. . .

Nevertheless, the Commission, as well as the Supervision Committee of the Federation that supervises the Popular Financial Company in question auxiliarily, may issue observations regarding the policies and procedures, as well as the internal control mechanisms implemented for this purpose by the Popular Financial Company itself. "

" Article 93.-

. . .

Order the constitution of additional preventive provisions to those that Popular Financial Companies must create as a result of their credit portfolio rating process, in the event that said Popular Financial Companies do not comply with applicable regulations or the policies and procedures established in credit matters, and/or

II.

Order the suspension in the granting of new credits by those Popular Financial Companies whose credit activity, in general, presents serious deficiencies. "

" Article 94.- Popular Financial Companies must rate and constitute preventive estimates for credit risks corresponding to their credit portfolio in accordance with the methodology established in the Sections contained in Annex D of these provisions in accordance with the type of credit that corresponds.

Popular Financial Companies may opt to apply to the entirety of their portfolio the methodology established in numeral I of Annex D, or the methodology in accordance with the type of credit that corresponds.

Article 95.- The Commission, as well as the corresponding Federation, prior opinion of the first, may order the constitution of additional preventive estimates, if in their judgment so warranted, taking into account the credit risk assumed by the Popular Financial Company in its operations. "

" Article 95 Bis 1.- Popular Financial Companies must constitute semi-annually, in the months of June and December of each year, additional estimates that recognize the potential loss of value due to the passage of time of assets adjudicated judicially or extrajudicially or received in dation in payment, whether movable or immovable assets, as well as collection rights, according to the following procedure:

In the case of collection rights and movable assets, including securities in accordance with what is established in fraction II of article 25 of these provisions, the estimates will be constituted as follows:

ESTIMATES FOR COLLECTION RIGHTS AND MOVABLE ASSETS

TIME ELAPSED SINCE

ADJUDICATION OR DATION IN PAYMENT (MONTHS)

RESERVE PERCENTAGE

Up to 6

0 %

More than 6 and up to 12

10 %

More than 12 and up to 18

20 %

More than 18 and up to 24

45 %

More than 24 and up to 30

60 %

More than 30

100 %

The amount of estimates to be constituted will be the result of applying the corresponding percentage according to the table above, to the value of the collection rights or to the value of the movable assets received in dation in payment or adjudicated, obtained in accordance with the Accounting Criteria.

II.

Regarding immovable assets, estimates will be constituted according to the following:

ESTIMATES FOR IMMOVABLE ASSETS

TIME ELAPSED SINCE

ADJUDICATION OR DATION IN PAYMENT (MONTHS)

RESERVE PERCENTAGE

Up to 12

0 %

More than 12 and up to 24

10 %

More than 24 and up to 30

15 %

More than 30 and up to 36

25 %

More than 36 and up to 42

30 %

More than 42 and up to 48

35 %

More than 48 and up to 54

40 %

More than 54 and up to 60

50 %

More than 60

100 %

The amount of estimates to be constituted will be the result of applying the corresponding percentage according to the immediate previous table, to the adjudication value of the immovable assets, obtained in accordance with the Accounting Criteria.

In the event that valuations subsequent to the adjudication or dation in payment result in the accounting record of a decrease in the value of collection rights, as well as of movable or immovable assets, the percentages of preventive estimates referred to in this article may be applied to said adjusted value. "

" Article 96.- Popular Financial Companies must maintain minimum liquidity levels in relation to their short-term passive operations.

. . .

Popular Financial Companies must maintain a position of at least equivalent to 10 percent of their short-term liabilities, invested in bank deposits of money at sight, as well as in bank securities, government securities, other investments in debt securities, and in availabilities, whose maturity term is equal to or less than 30 days.

The Commission or the corresponding Federation, provided that the latter informs the Commission itself, may increase the liquidity coefficient when in their judgment and taking into account the risks assumed by the Popular Financial Company in question, such measure is justified. "

" Article 97.-

. . .

These limits will not be applicable in cases where a Popular Financial Company grants liquidity loans to Popular Financial Companies affiliated with its Federation, as well as to those Popular Financial Companies not affiliated that are supervised auxiliarily by the Federation itself, provided that such credits have been discounted from its capital, in accordance with what is provided in clause h), fraction I of article 36 of the Law.

. . .

II. and III. . . .

Article 97 Bis.- Popular Financial Companies will not have to identify credits that represent a "Common Risk" in the terms provided by fraction I of article 97 above, provided that the sum of the twenty credits with the largest outstanding balance granted by the Popular Financial Company does not represent more than 10 percent of the total portfolio of the Popular Financial Company and no credit is greater than 3.5 percent of its net capital. For these limits, the portion covered in the terms indicated in article 97 fraction I, penultimate paragraph is not considered.

For such purposes, Popular Financial Companies will only keep control regarding the property and kinship links of the borrowers referred to in the previous paragraph, that exceed 2 percent of their net capital.

Nevertheless, if the Popular Financial Company had evidence that allowed it to infer the existence of links between borrowers that, collectively, could exceed the diversification limits provided by fraction I of article 97 above, they must establish monitoring procedures for the follow-up of the behavior of the persons in question. "

" Article 98.- Popular Financial Companies must inform the public, at least once a year, together with their closing financial statements of the fiscal year, and with greater periodicity if market conditions so require, the information relative to:

I. and II.

. . . "

" Article 100.- Popular Financial Companies must have a minimum capital, which will be integrated with the sum of the social capital plus the capital reserves and, if applicable, the item called "Effect for incorporation into the regime of popular savings and credit entities"

referred to in fraction VII of article 2 of these provisions. The social capital must be fully subscribed and paid.

The minimum capital for Popular Financial Companies subject to this regulation will be 4,000,000 (four million) UDIS.

When the financial situation of any Popular Financial Company requires it, the Commission may grant for a single occasion a term of six months to said Popular Financial Company to adjust to what is established in this Section, regardless of what is indicated in article 99 above.

Popular Financial Companies must suspend the payment of dividends or the distribution of capital remnants to their partners, and in general any other mechanism that implies a transfer of patrimonial benefits to the partners, while they have a shortage in their minimum capital.

The partners of Popular Financial Companies may request the withdrawal of their contributions, provided that such withdrawal does not affect the minimum capital or the Capitalization Level that Popular Financial Companies must observe in accordance with this Section. "

" Article 102.-

. . .

I. and II.

. . .

III.

. . .

[Table] . . .

. . .

Regarding repo operations, Popular Financial Companies must determine prior to the risk-weighted credit calculation, the result of subtracting from the repo debtor balance, the corresponding fair value of the collateral received in each operation, referred to in the Accounting Criteria contained in Annex E of these Provisions. In the event that the obtained result is positive, said difference will be multiplied by the corresponding weighting for the risk group of the counterparty.

. . .

Article 103.- The capital requirement for market risk will be that obtained by applying 30 percent to the total amount resulting from the calculation of the capital requirement for credit risk determined in accordance with what is established by article 102.

Popular Financial Companies may opt to use the "Procedure for the determination of capital requirements for market risk" referred to in Annex O of these provisions, provided that said Popular Financial Companies have the authorization of the Commission, prior opinion of the Federation that supervises it auxiliarily. The foregoing, on the understanding that once the methodology provided by the aforementioned Annex O is used, the Popular Financial Company will not be able to determine its capitalization requirements for market risks in accordance with what is provided in this article.

The Commission or the corresponding Federation may demand the application of the capital requirement procedure for market risk contained in Annex O

of these provisions,

when in the exercise of their supervisory powers, they detect that a Popular Financial Company departs from what is provided in Section C of this Section.

. . . "

" Article 105.- The Popular Financial Company must carry out monthly the computation of the

. . ."

capitalization requirements, which must be sent within the following 30 days from the date of the calculation to the Federation that supervises it in an auxiliary manner, in the form and terms established by said Federation. The capital requirements and net capital will be determined based on balances on the last day of the month in question.

Article 106.- The corresponding Federation, in addition to carrying out and verifying the calculation of the requirements and integration of capital, may require that the calculation of the capital requirements be sent with greater frequency and on any date for a specific Popular Financial Society, when it deems that between the days that pass between one calculation and another, such Popular Financial Society is assuming risks notably higher than those shown by the closing figures of each month. The Commission, in terms of the second paragraph of Article 36 of the Law, will resolve regarding the risk weighting percentages and procedure to determine the conversion value, which will be applicable in the case of operations analogous or related to those referred to in the cited article.

" Article 109.-

. . .

Risk management, to the set of objectives, policies, procedures, and actions that are implemented to identify, measure, monitor, limit, control, report, and disclose the risks to which Popular Financial Societies are exposed;

II.

Credit risk, to the potential loss due to the failure to pay by a borrower or counterparty in the operations carried out by Popular Financial Societies;

III.

Liquidity risk, to the potential loss caused by the mismatch in the terms of the active and passive positions of Popular Financial Societies;

IV.

. . .

Operational risk: to the possible losses for the Popular Financial Society due to errors or failures in the development of the administrative and operational activities of the business.

Article 110.- In the management of credit risk, Popular Financial Societies must, as a minimum:

. . .

Risk limits that the Popular Financial Society is willing to assume;

In its case, the economic sector and geographic zone in which the Popular Financial Society may carry out operations;

Risk limits attributable to a person or group of persons representing a "Common Risk", in accordance with the definition established in fraction I of Article 146 of these provisions, and

. . .

II.

. . .

Article 111.- In the management of liquidity risk, Popular Financial Societies must, as a minimum:

Measure and monitor the risk caused by the mismatch derived from differences in cash flows projected on different dates, considering for such effect all the assets and liabilities of the Popular Financial Society;

II.

Evaluate the diversification of the funding sources to which the Popular Financial Society has access, and

III.

. . .

Article 112.-

. . .

II.

Designate the person who will be responsible for the risk management of the Popular Financial Society, upon proposal of the Director or General Manager, as well as monitor that the carrying out of operations complies with the objectives, policies, and procedures for risk management approved by said Council.

The policies and procedures mentioned in the preceding fraction I must be included in a risk management manual and be reviewed at least once a year. The Board of Directors may hear the opinion of the technical committee referred to in Article 119 of these provisions or, in its case, of the Technical Assistance area of the Federation that supervises it in an auxiliary manner, for the purposes of approving said manual, as well as its modifications.

The Board of Directors may constitute a risk committee whose object is the management of the risks to which the Popular Financial Society is exposed, as well as monitor that the carrying out of operations complies with the policies and procedures for risk management approved by said council. The risk committee must observe what is provided by Article 164 of these provisions and may carry out the functions indicated in Article 165 of this instrument, as well as the other activities that are related to the function in question and that in terms of these provisions are in charge of said committee.

. . .

Article 113.-

. . .

In the event that Popular Financial Societies have a risk committee integrated in accordance with what is provided by Article 164 of these provisions, they may assign to said committee the function indicated in fraction VIII of this article. In the case referred to in Article 209 Bis 7, first paragraph of this instrument, and in the event that Popular Financial Societies have an audit committee constituted in terms of Article 183 of these provisions, said committee will be responsible for presenting the report referred to in fraction VIII of this article.

Article 114.-

. . .

I. to III.

. . .

IV.

The type of reports that will be prepared, as well as the form and periodicity with which information must be provided to the Board of Directors, to the Director or General Manager, and to the business units, regarding the risk exposure of the Popular Financial Society;

V. to VIII.

. . .

Article 115.- . . .

The designation of the person who will be responsible for the risk management of the Popular Financial Society, guaranteeing the independence of said person with respect to the business areas;

II. to IV.

. . .

The Director or General Manager will be responsible for implementing action measures in case of contingencies that may affect the operation or information systems of the Popular Financial Society, as well as spreading a greater culture in terms of risk management by designing training programs in this matter for the personnel involved in the operation or risk management of the Popular Financial Society.

Article 116.- . . .

The registration, documentation, and settlement of operations, which imply risks in accordance with the policies and procedures established in the risk management manuals of the Popular Financial Society, and

II.

. . .

Popular Financial Societies may assign the functions referred to in this article to an internal audit or internal comptroller area, independent of the business, administrative, and comptroller areas that, in their case, they maintain, or entrust them to an independent specialized third party.

Article 117.- The Comptroller of the Popular Financial Societies in question, in addition to what is indicated in the previous article, must carry out, at least annually, a risk management audit that contemplates, among others, the following aspects:

I. to VI.

. . .

Popular Financial Societies may opt to assign the functions provided for in fractions I to V of this article to an internal audit or internal comptroller area, independent of the business, administrative, and comptroller areas that, in their case, they maintain, or entrust them to an independent specialized third party.

In the event that Popular Financial Societies have an audit committee constituted in terms of Article 183 of these provisions, they may assign to said committee the function referred to in fraction VI of this article. "

" Article 118.- For the purposes of this Section, internal control system will be understood as the set of objectives, policies, procedures, and records that the Popular Financial Society establishes with the object of:

. . .

II.

Delimiting the different functions and responsibilities of the personnel within the Popular Financial Society;

III. and IV.

. . .

Article 119.- . . .

. . .

II.

Approve the organizational structure of the Popular Financial Society in which the adequate delimitation of functions and assignment of responsibilities is ensured;

III.

Verify at least annually that the direction or general management of the Popular Financial Society complies with its objective of continuously monitoring the effectiveness and functionality of the internal control systems;

IV. and V.

. . .

The Board of Directors may constitute an audit committee whose object is to support the council itself in the definition of the general guidelines of the internal control system, as well as in the verification and evaluation of said system, acting as a communication channel between the Board of Directors and the external auditor or supervisory authorities. For such purposes, the audit committee must be subject to what is established by Article 183 of these provisions and may carry out any of the functions indicated in Article 184 of this instrument, as well as the other activities that are related to the function in question and that in terms of these provisions are in charge of the audit committee.

. . .

Article 120.- Popular Financial Societies must adequately document the policies and procedures of all their activities, in operation manuals. These manuals will be the basis of the operation, as well as the reference to evaluate the effectiveness and performance of internal controls.

The operation manuals must be reviewed and, in their case, updated at least once a year in accordance with what is provided in Article 119 of these provisions, and must be made known to the Councilors, Members of the Supervisory Council or Comptroller, and to the officials and employees of the Popular Financial Society who by their functions require knowing them.

Article 121.- . . .

The organizational and functional structure of each area of the Popular Financial Society, as well as the individual responsibilities assigned;

II.

The communication channels and information flow between the different areas of the Popular Financial Society;

III. to V.

. . . "

" Article 123.- . . .

. . .

II.

. . .

There is a clear delimitation of functions and responsibilities between the units of the Popular Financial Society, as well as the independence between the areas or functions that so require, and

III.

. . .

Likewise, the Director or General Manager or, in its case, the technical committee referred to in Article 119 of these provisions, must submit to the approval of the Board of Directors, the operation manuals indicated in Article 120 of these provisions, except those related to risk management and credit; and the adoption of a code of ethics.

Article 124.- . . .

Identify and evaluate internal and external factors that may affect the achievement of the strategies and objectives of the Popular Financial Society;

II.

Implement the strategies and policies of the Popular Financial Society, ensuring that activities at all levels are developed in line with said objectives and strategies, and

III.

Establish control and administrative mechanisms in accordance with the laws, and other applicable provisions, including the internal regulation issued within the Popular Financial Society itself.

Article 125.- In order to contribute to the functioning of the internal control system, Popular Financial Societies must ensure that comptroller functions are carried out. These functions, in charge of the Supervisory Council or Comptroller or of whom they designate, will imply the establishment and daily monitoring of measures to monitor that the activities regarding the operation of the Popular Financial Society are consistent with its objectives and are carried out in strict compliance with the laws and other applicable provisions.

Article 126.- . . .

The establishment of measures aimed at verifying the correct compliance of the different processes, operations, and transactions with the regulation applicable to the Popular Financial Society;

II.

Establish norms, procedures, and measures to monitor that the processes of documentation and daily settlement of operations and transactions are carried out adequately and in accordance with the objectives and guidelines of the Popular Financial Society, and

III.

. . .

Article 127.- . . .

Evaluate the operational functioning of the different areas of the Popular Financial Society, as well as their compliance with the manuals of policies and procedures;

II. to IV.

. . .

Inform the Board of Directors, at least once a year, about the situation of the internal control system of the Popular Financial Society.

. . .

Article 128.- Popular Financial Societies must implement a Code of Ethics, approved by the Board of Directors or, in its case, by the Technical Committee referred to in Article 119 of these provisions, in which appropriate and prudent rules are established that govern the conduct and adequate behavior of their councilors, officials, and employees, in their interaction with clients and within the Popular Financial Society itself. The code of ethics must contemplate, as a minimum, the following aspects:

. . .

II.

Respect the confidentiality of clients, of the operations of the Popular Financial Society and, in general, of institutional information.

The code of ethics must be reviewed at least once a year in accordance with what is provided in Article 119 of these provisions, and must be made known to the councilors, officials, and employees of the Popular Financial Society. "

" Article 129.- For the purposes of this Section, credit activity will be understood as the placement by Popular Financial Societies of resources, both own and those captured from third parties, through guarantees, loan operations, or any operation that directly or indirectly may generate credit rights in its favor. "

" Article 130.- Popular Financial Societies must have a credit manual approved by the Board of Directors, to which the Credit Committee or its equivalent must be subject. The Board of Directors may hear the opinion of the technical committee referred to in Article 119 of these provisions, for the purposes of approving said manual, as well as its modifications. The manual must contain the credit policies and procedures, with the minimum guidelines in the stages of the credit process as follows:

. . .

Identification of the applicant, as well as the purpose for which the credit is requested or, in its case, characteristics of the deposits that the applicant maintains in the Popular Financial Society;

and 4.

. . .

b) to d) . . .

. . .

II. to V.

. . .

VI.

. . .

In the case of borrowers representing a "Common Risk", in accordance with the definition established in fraction I of Article 146 of these provisions, the file that is formed must be joined with those of those persons representing the "Common Risk".

Likewise, said Popular Financial Societies, when carrying out credit operations with the persons referred to in Articles 35, 35 Bis, and 35 Bis 1 of the Law, must indicate in the respective credit files that it is an operation carried out with related persons in terms of the cited article, clearly identifying said condition in the file, accompanying the declaration and corresponding information provided and signed by the applicants

. . .

. . . "

" Article 131.- In addition to the minimum guidelines established in fractions I to VI of Article 130 above, Popular Financial Societies must delimit the different functions and responsibilities in the development of credit activity, striving at all times for independence in their activities to avoid conflicts of interest, taking into account, among others, the following measures:

. . .

II.

The promotion, granting of credit, and recovery of the credit portfolio, in accordance with fractions I and IV of Article 130 above;

III.

The control and review of compliance with credit norms, policies, and procedures, in accordance with fraction II of Article 130 above, and

IV.

The evaluation and monitoring of the credit risk of the Popular Financial Society, in accordance with fraction III of Article 130 above.

Article 132.- The credit manual must be reviewed and updated at least once a year by the Credit Committee or its equivalent, together with the Director or General Manager and, in its case, the modifications must be submitted to the authorization of the Board of Directors, which may hear the opinion of the technical committee referred to in Article 119 of these provisions.

" Article 133 Bis 1.- Popular Financial Societies in order to certify to the Federation that supervises them in an auxiliary manner that they have the necessary technology and infrastructure to carry out the granting of Microcredits must present a written document signed by the Director or General Manager of the Popular Financial Society, which includes the following:

The statement that they have carried out a self-evaluation regarding the technology and infrastructure of the Popular Financial Society in question, from which it is clear that it has the capacity and necessary means to carry out the granting of Microcredit;

II.

The description of the policies and procedures that the Popular Financial Society will use for the granting of Microcredits, approved by the competent persons or collegiate bodies, and

III.

. . .

However, the Commission and the Supervision Committee of the Federation that supervises in an auxiliary manner the Popular Financial Society in question, may issue observations regarding the policies and procedures, as well as the internal control mechanisms implemented for such effect by the Popular Financial Society itself. "

" Article 135.-

. . .

Order the constitution of additional preventive provisions to those that Popular Financial Societies must create as a result of their credit portfolio qualification process, in the event that said Popular Financial Societies do not comply with the applicable regulation or the policies and procedures established in credit matters, and/or

II.

Order the suspension in the granting of new credits by those Popular Financial Societies whose credit activity, in general, presents serious deficiencies. "

" Article 136.- Popular Financial Societies must qualify and constitute the preventive estimates for credit risks corresponding to their credit portfolio in accordance with the methodology established in the Sections contained in Annex D of these provisions in accordance with the type of credit that corresponds. "

" Article 137 Bis.- . . .

In the case of receivables and movable goods, including securities in accordance with what is established in fraction II of Article 25 of these provisions, the estimates will be constituted as follows:

[Table] . . .

. . .

II.

. . .

. . . "

" Article 143.- The Commission, as well as the corresponding Federation, prior opinion of the first, may order the constitution of additional preventive estimates, if in their judgment so proceeds, taking into account the credit risk assumed by the Popular Financial Society in its operations. "

" Article 146.- . . .

. . .

These limits will not be applicable in cases where a Popular Financial Society grants liquidity loans to Popular Financial Societies affiliated with its Federation, as well as to those Popular Financial Societies not affiliated that are supervised in an auxiliary manner by the Federation itself, provided that said credits have been discounted from their capital, in accordance with what is provided by clause h), fraction I of Article 36 of the Law.

. . .

II. and III.

. . .

Article 146 Bis.- Popular Financial Societies will not have to identify the credits that represent a "Common Risk" in the terms provided by fraction I of Article 146 above, provided that the sum of the twenty credits with the largest outstanding balance granted by the Popular Financial Society does not represent more than 10 percent of the total portfolio of the Popular Financial Society and no credit is greater than 3.5 percent of its net capital. For these limits, the covered part in the terms indicated in Article 146 fraction I, last paragraph, is not considered. "

For such purposes, Popular Financial Societies will only keep control regarding the property and kinship links of the borrowers referred to in the previous paragraph, that exceed 2 percent of their net capital.

However, if the Popular Financial Society had evidence that allowed it to infer the existence of links between borrowers that, collectively, could exceed the diversification limits provided by fraction I of Article 146 above, they must establish monitoring procedures for the follow-up of the behavior of the persons in question. "

" Article 147.- Popular Financial Societies must inform the public, at least once a year, together with their closing financial statements of the fiscal year, and with greater periodicity if market conditions so require, the information relating to:

I. and II.

. . . "

" Article 149.- Popular Financial Societies must have a minimum capital, which will be integrated with the sum of the social capital plus the capital reserves and, in its case, the item called "Effect by incorporation into the regime of popular savings and credit entities"

referred to in fraction VII of Article 2 of these provisions. The social capital must be fully subscribed and paid.

The minimum capital for Popular Financial Societies subject to this regulation will be 22,500,000 (twenty-two million five hundred thousand) UDIS.

When the financial situation of a Popular Financial Society so requires, the Commission may grant for a single occasion a period of six months to said Popular Financial Society to adjust to what is established in this Section, independent of what is indicated in Article 148 above.

Popular Financial Societies must suspend the payment of dividends or the distribution of

remaining capital to its partners, and in general any other mechanism that implies a transfer of patrimonial benefits to the partners, while they have a shortfall in their minimum capital.

The partners of the Popular Financial Societies may request the withdrawal of their contributions, provided that such withdrawal does not affect the minimum capital or the Capitalization Level that the Popular Financial Societies must observe in accordance with this Section."

" Article 151.-

. . .

II.

. . .

III.

. . .

[Table] . . .

. . .

Regarding repo operations, Popular Financial Societies must determine, prior to the risk-weighted credit risk calculation, the result of subtracting from the debtor's balance for the repo, the corresponding fair value of the collateral received in each operation, as referred to in the Accounting Criteria contained in Annex E of these Provisions. In the event that the obtained result is positive, such difference will be multiplied by the weighting corresponding to the risk group of the counterparty.

. . .

Article 152.- The capital requirement for market risk will be that obtained by applying 30 percent to the total amount resulting from the calculation of the capital requirement for credit risk determined in accordance with what is established by Article 151.

Popular Financial Societies may opt to use the "Procedure for the determination of capital requirements for market risk" referred to in Annex O of these provisions, provided that such Popular Financial Societies have the authorization of the Commission, prior opinion of the Federation that supervises them auxilially. This is understood that once the methodology provided for in the cited Annex O is used, the Popular Financial Society cannot determine its capitalization requirements for market risks in accordance with what is provided in this article.

The Commission or the corresponding Federation may require the application of the procedure for capital requirement for market risk contained in Annex O of these provisions, when in the exercise of their supervisory powers, they detect that a Popular Financial Society deviates from what is provided in Section C of this Section.

. . . "

" Article 154.-

The Popular Financial Society must carry out the calculation of capitalization requirements monthly, which must be sent within the following 30 days from the date of the calculation to the Federation that supervises it auxilially, in the form and terms established by said Federation. The capital requirements and net capital will be determined based on balances as of the last day of the month in question.

Article 155.- The corresponding Federation, in addition to carrying out and verifying the calculation of the requirements and integration of capital, may require that the calculation of the capital requirements be sent with greater frequency and on any date for a specific Popular Financial Society, when it judges that between the days that pass between one calculation and another, such Popular Financial Society is assuming risks notably greater than those shown by the closing figures of each month.

The Commission, in terms of the second paragraph of Article 36 of the Law, will resolve regarding the risk weighting percentages and procedure to determine the conversion value, which will be applicable regarding analogous or related operations to those referred to in the cited article. "

" Article 158.-

. . .

Risk Management, to the set of objectives, policies, procedures and actions that are implemented to identify, measure, monitor, limit, control, inform and disclose the risks to which Popular Financial Societies are exposed;

II.

Credit or credit risk, to the potential loss due to the failure to pay by a borrower or counterparty in the operations carried out by Popular Financial Societies;

III.

Liquidity risk, to the potential loss due to the impossibility of renewing liabilities or contracting others under normal conditions for the Popular Financial Society; due to the early or forced sale of assets at unusual discounts to meet its obligations, or well, by the fact that a position cannot be timely alienated, acquired or covered by establishing an equivalent opposite position;

IV.

. . .

Operational risk: to possible losses for the Popular Financial Society due to errors or failures in the development of administrative and operational business activities.

Article 159.- In the management of credit risk, Popular Financial Societies must, as a minimum:

. . .

Risk limits that the Popular Financial Society is willing to assume;

In its case, economic sector and geographic zone in which the Popular Financial Society may carry out operations;

Risk limits charged to a person or group of persons that represent a "Common Risk", in accordance with the definition established in section I of Article 204 of these provisions;

. . .

Prepare an analysis of the global credit risk of the Popular Financial Society, considering for this effect both credit granting operations and financial instruments. Such analysis must be compared with the established exposure limits to risk.

II. and III.

. . .

Article 160.- In the management of liquidity risk, Popular Financial Societies must, as a minimum:

Measure and monitor the risk caused by the mismatch derived from differences between cash flows projected on different dates, considering for such effect all assets and liabilities of the Popular Financial Society;

II.

Evaluate the diversification of funding sources to which the Popular Financial Society has access;

III. and IV.

. . .

Article 161.- Popular Financial Societies in the management of market risk, must, as a minimum:

I. to V.

. . .

VI.

Obtain historical information on the risk factors that affect the positions of the Popular Financial Society, in order to calculate market risk, and

VII.

Have monitoring systems that allow estimating potential losses generated by gaps in interest rates of the active and passive positions of the Popular Financial Society.

VIII.

According to the complexity of their operations, Popular Financial Societies must carry out, with the frequency determined by their Board, the analysis of maturity gaps of their assets and liabilities, which allow them to manage their liquidity and for the cases where it is identified that sensitivity to movements in market rate levels is affecting the income and costs associated with said assets or liabilities, they must additionally evaluate the convenience of adding to the gap analysis the repricing dates, which allows them to manage market risk better.

Article 162.- The Board of Directors of each Popular Financial Society must approve the policies and procedures for risk management, as well as establish limits on exposure to risk. To this effect, the cited Board must approve, upon proposal of the Risk Committee, the applicable manual. The Board must review at least once a year the objectives, policies and procedures for the risk management of the Popular Financial Society. The Board of Directors may hear the opinion of the Audit Committee referred to in Article 183 of these provisions, for the purposes of the approval of said manual, as well as its modifications.

Article 163.- . . .

I. to III.

. . .

IV.

Training programs for personnel responsible for the comprehensive management of risks and for all those involved in operations that imply risk for the Popular Financial Society.

Article 164.- The Board of Directors of each Popular Financial Society must constitute a committee whose object will be the management of the risks to which the Popular Financial Society is exposed, as well as to monitor that the carrying out of the operation adjusts to the objectives, policies and procedures for risk management approved by the cited board.

The risk committee must be integrated by at least two members of the Board of Directors, one of whom must preside over it, the Director or General Manager, the person responsible for the comprehensive management of risks and those of the different business units involved in the taking of risks that the council itself indicates, the latter, participating with voice but without vote. Said committee will have the presence of the internal auditor of the Popular Financial Society, who will be appointed by the Board of Directors of the latter, who will attend as a guest without voice or vote. The risk committee must meet at least once a month, additionally all sessions and agreements of the risk committee must be recorded in duly detailed minutes signed by each and every one of its members.

Article 165.- . . .

This is without prejudice to what is provided in Article 184, section VII, second paragraph, of these provisions.

Article 166.- The risk committee may adjust or, in its case, authorize exceeding the risk exposure limits, when the conditions and environment of the Popular Financial Society so require, informing the Board of Directors in a timely manner about the exercise of the powers mentioned.

Article 167.- The risk committee to carry out risk management, will be supported by specialized personnel whose object will be to identify, measure, monitor and inform the quantifiable risks that the Popular Financial Society faces in its operations, such as credit, market and liquidity risks. The personnel responsible for the comprehensive management of risks will be independent of the business units, in order to avoid conflicts of interest and ensure an adequate separation of responsibilities. "

" Article 169.- To carry out the measurement, monitoring and control of risks and the valuation of the positions of the Popular Financial Society, the personnel responsible for the comprehensive management of risks must:

. . .

II.

Carry out estimates of the risk exposure of the Popular Financial Society, linked to results or to the value of its capital;

III.

Ensure that the information on the positions of the Popular Financial Society used in the risk measurement models and systems is accurate, complete and timely;

IV. and V. . . .

Article 170.- The systems referred to in section I of the previous Article 169, must:

Allow the measurement, monitoring and control of the risks to which the Popular Financial Society is exposed, as well as the generation of reports on the same;

II.

. . .

The risk factors such as interest rates and price indices, considering their impact on the capital value and the income statement of the Popular Financial Society;

The risk exposure, by line and business unit and by type of risk of the Popular Financial Society;

The risk concentrations, incorporating a special treatment for operations with financial instruments that may affect the consolidated position of the Popular Financial Society, and

The adequate measurement techniques for the required analysis and that allow identifying the assumptions and parameters used in such measurement;

III.

Evaluate the risk associated with the assets, liabilities and off-balance sheet positions of the Popular Financial Society.

The personnel responsible for the comprehensive management of risks will complement their risk measurement with the carrying out of stress tests, which allow identifying the risk that the Popular Financial Society would face under such conditions and recognize the positions or strategies that make the Popular Financial Society more vulnerable.

Article 171.- Popular Financial Societies must have internal reports or reports that are based on complete, accurate and timely data related to the management of their risks and that contain as a minimum:

The consolidated risk exposure, by line and business unit and by type of risk of the Popular Financial Society;

II. to V.

. . .

Article 172.- . . .

I. and II.

. . .

III.

The powers and responsibilities based on the employment or position held, when the latter implies the taking of risks for the Popular Financial Society;

IV. and V. . .

VI.

The type of reports that they will prepare, as well as the form and frequency with which they must inform the Board of Directors, the risk committee, the Director or General Manager and the business units, about the risk exposure of the Popular Financial Society and of each business unit;

VII. to IX.

. . .

Article 173.- Popular Financial Societies must have an independent internal comptroller area, which establishes and gives permanent follow-up to control measures that govern the daily operation process, relative to:

I. and II.

. . .

Article 174.- Popular Financial Societies must have an independent internal audit area or entrust it to an external auditor, to carry out at least once a year or with a greater frequency according to the conditions of the markets in which they participate, a risk management audit that contemplates, among others, the following aspects:

The implementation of risk management mechanisms in accordance with what is established in this Section and in the own manual of policies and procedures for the comprehensive risk management of the Popular Financial Society;

II. to VII.

. . . "

" Article 176.- For the purposes of this Section, internal control system will be understood as the set of objectives, policies, procedures and records that the Popular Financial Society establishes with the object of:

Procure adequate operation mechanisms, in accordance with the strategies and purposes of the Popular Financial Society, which allow identifying, monitoring and evaluating the risks that may arise from the development of business activities, minimizing possible losses that may be incurred by the carrying out of voluntary or involuntary acts or facts;

II.

Delimit the different functions and responsibilities of the personnel inside the Popular Financial Society;

III. and IV.

. . .

Article 177.- In matters of the internal control system, it will be the responsibility of the Board of Directors of each Popular Financial Society to define and design the guidelines for the prudent management of the Popular Financial Society. Likewise, the Board must supervise the establishment and monitor the adequate functioning of the internal control system, for which it must apply among others, the following measures:

. . .

II.

Approve the organizational structure of the Popular Financial Society in which the adequate delimitation of functions and assignment of responsibilities is ensured;

III.

Verify at least annually, that the direction or general management of the Popular Financial Society, fulfills its objective of continuously monitoring the effectiveness and functionality of internal control systems;

IV.

Review the objectives, policies and internal control procedures, at least once a year, for which it may hear the opinion of the audit committee referred to in Article 183 of these provisions, and.

. . .

Article 178.- Popular Financial Societies must adequately document the policies and procedures of all their activities, in operation manuals. These manuals will be the basis of operation, as well as the reference to evaluate the effectiveness and performance of internal controls.

The operation manuals must be reviewed and, in its case, updated at least once a year and must be made known to the Councilors, Members of the Supervisory Board or Comisario, and to the officials and employees of the Popular Financial Society who by their functions require knowing them.

Article 179.-

. . .

The organizational and functional structure of each area of the Popular Financial Society, as well as the individual responsibilities assigned;

II.

The communication channels and information flow between the different areas of the Popular Financial Society;

III. to V. . . . "

" Article 181.-

. . .

II.

. . .

There is a clear delimitation of functions and responsibilities between the units of the Popular Financial Society, as well as the independence between the areas or functions that so require.

Article 182.- To comply with the responsibilities mentioned in the previous Article 181, the Director or General Manager must ensure that among other actions, the following are carried out:

Identify and evaluate internal and external factors that may affect the achievement of the strategies and objectives of the Popular Financial Society;

II.

Implement the strategies and policies of the Popular Financial Society, ensuring that activities at all levels are developed in line with said objectives and strategies, and

III.

Establish control and administrative mechanisms in accordance with the laws, and other applicable provisions, including the internal regulation issued in the Popular Financial Society itself.

. . .

Article 183.- . . .

Among the supervision activities of the internal audit functions mentioned in the previous paragraph, the audit committee will supervise that the financial and accounting information is formulated in accordance with the guidelines and provisions to which Popular Financial Societies are subject, as well as with the accounting postulates applicable to them.

. . .

Said committee will have the presence of the internal auditor and the comptroller, who will attend the sessions as guests, with the right to voice, but without the right to vote. It will also have the faculty to invite any other person if it considers it necessary. The presiding councilor of the audit committee must not be, in turn, an official of the Popular Financial Society.

Article 184.- . . .

I. to VI.

. . .

VII.

. . .

In addition to the above, in the event that Popular Financial Societies assign to the risk committee the functions that correspond to the Remuneration Committee, in terms of Article 209 Bis 7 of these provisions, the audit committee must prepare and present to the Board of Directors the annual report on the performance of the Remuneration System referred to in Article 165, section VI of these provisions.

. . .

Article 185.- Popular Financial Societies must have an internal audit area independent of the business, administrative and comptroller areas, whose responsible or, in its case, responsible, will be designated by the Board of Directors.

. . .

Evaluate through substantive, procedural and compliance tests, the operational functioning of the different areas of the Popular Financial Society, as well as their adherence to the policies and procedures manuals applicable to them, including the compliance with the code of ethics by Councilors, Members of the Supervisory Board or Comisario, officials and employees;

II.

. . .

III.

Monitor the flows of all types of transactions or operations carried out in the Popular Financial Society, in order to identify potential failures in any aspect of the internal control system;

IV. and V. . . .

VI.

Verify the effective segregation of functions and exercise of powers attributed to each business unit, in the organizational structure of the Popular Financial Society. "

" Article 188.- In order to contribute to the functioning of the internal control system, Popular Financial Societies must ensure that comptroller functions are carried out. These functions, in charge of the Supervisory Board or Comisario or of whom he designates, will imply the establishment and daily follow-up of measures to monitor that the activities regarding the operation of the Popular Financial Society are consistent with the objectives of said society and are carried out in strict adherence to the laws and other applicable provisions.

Article 189.-

. . .

The establishment of measures aimed at verifying the correct adherence of the different processes, operations and transactions to the regulation applicable to the Popular Financial Society;

II.

Establish norms, procedures and measures to monitor that the processes of documentation and daily settlement of operations and transactions are carried out adequately and in accordance with the objectives and guidelines of the Popular Financial Society, and

III.

. . .

Article 190.- Popular Financial Societies must implement a formal code of ethics, approved by the Board of Directors, in which appropriate and prudent rules are established that govern the conduct and appropriate behavior of their Councilors, Members of the Supervisory Board or Comisario, officials and employees, in their interaction with clients and inside the Popular Financial Society itself. The Code of Ethics must contemplate, as a minimum, the following aspects:

. . .

II.

Respect the confidentiality of clients, of the operations of the Popular Financial Society and, in general, of institutional information.

The code of ethics must be reviewed at least once a year in accordance with what is provided in Article 177 of these provisions, and must be made known to the councilors, officials and employees of the Popular Financial Society. "

" Article 191.- For the purposes of this Section, credit activity will be understood as the placement by Popular Financial Societies of resources, both own and those captured from third parties, through guarantees, loan operations, or any operation that directly or indirectly can generate credit rights in its favor. "

" Article 192.- Popular Financial Societies must have a credit manual approved by the Board of Directors upon proposal of the audit committee referred to in Article 183 of these provisions"

provisions, to which the Credit Committee or its equivalent shall be subject. The manual must contain credit strategies, policies, and procedures, with the minimum guidelines in the following stages of the credit process:

I. to V.

. . .

VI.

. . .

In the case of borrowers representing a "Common Risk," in accordance with the definition established in fraction I of article 204 of these provisions, the file formed must be combined with those of those persons representing the "Common Risk."

Likewise, said Financial Societies, when concluding credit operations with the persons referred to in articles 35, 35 Bis, and 35 Bis 1 of the Law, must indicate in the respective credit files that it is an operation concluded with related persons in the terms of the cited article, clearly identifying said condition in the file, accompanying the declaration and corresponding information provided and signed by the applicants.

. . .

. . . "

" Article 193.- In addition to the minimum guidelines established in fractions I to VI of article 192 above, Popular Financial Societies must delimit the different functions and responsibilities in the development of credit activity, striving at all times for independence in their activities to avoid conflicts of interest, taking into account, among others, the following measures:

. . .

The promotion, granting of credit, and recovery of the credit portfolio, in accordance with fractions I and IV of article 192 above;

III.

The control and review of compliance with credit norms, policies, and procedures, in accordance with fraction II of article 192 above, and

IV.

The evaluation and monitoring of the credit risk of the Popular Financial Society, in accordance with fraction III of article 192 above.

Article 194.- The credit manual must be reviewed and updated at least once a year by the Credit Committee or its equivalent, together with the Director or General Manager, and, if applicable, the modifications must be submitted for authorization by the Board of Directors, which may hear the opinion of the Audit Committee referred to in article 183 of these provisions. "

" Article 196.- In the development of the functions and responsibilities referred to in article 193 of these provisions, independence must be sought at all times in the performance of their respective activities, in order to avoid conflicts of interest. "

" Article 196 Bis 1.- Popular Financial Societies, in order to prove to the Federation that supervises them in an auxiliary manner that they have the necessary technology and infrastructure to carry out the granting of Microcredits, must present a document signed by the Director or General Manager of the Popular Financial Society, which includes the following:

The statement that they have carried out a self-evaluation regarding the technology and infrastructure of the Popular Financial Society in question, from which it is evident that it has the capacity and necessary means to carry out the granting of Microcredit;

II.

The description of the policies and procedures that the Popular Financial Society will use for the granting of Microcredits, approved by the competent persons or collegiate bodies, and

III.

. . .

Notwithstanding, the Commission, as well as the Supervision Committee of the Federation that supervises the Popular Financial Society in question in an auxiliary manner, may issue observations regarding the policies and procedures, as well as the internal control mechanisms implemented for this purpose by the Popular Financial Society itself. "

" Article 198.-

. . .

Order the constitution of additional preventive provisions to those that Popular Financial Societies must create as a result of their credit portfolio rating process, in the event that said Popular Financial Societies do not comply with the applicable regulations or the policies and procedures established in credit matters.

II.

Order the suspension in the granting of new credits by those Popular Financial Societies whose credit activity, in general, presents serious deficiencies. "

" Article 199.- Popular Financial Societies must qualify and constitute preventive estimates for credit risks corresponding to their credit portfolio in accordance with the methodology established in Annex D of these provisions and in accordance with the type of credit corresponding. Except for commercial credits referred to in the following article.

. . .

Article 199 Bis.- Popular Financial Societies must individually qualify the commercial credits in their credit portfolio whose balance is equal to or greater than an amount equivalent in national currency to nine hundred thousand UDIs at the date of qualification, including those credits under the same debtor whose sum as a whole is equal to or greater than said amount, must be individually qualified every three months applying the non-parametric methodology applicable to credit institutions issued by the Commission, without the possibility of certifying internal models. "

" Article 201.- The Commission, as well as the corresponding Federation, prior opinion of the first, may order the constitution of additional preventive estimates, if in their judgment so warranted, taking into account the credit risk assumed by the Popular Financial Society in its operations. "

" Article 202.-

. . .

In the case of receivables and movable property, including securities in accordance with what is established in fraction II of article 25 of these Provisions, the estimates will be constituted as follows:

[Table] . . .

. . .

II.

. . .

. . . "

" Article 204.- . . .

. . .

These limits will not be applicable in cases where a Popular Financial Society grants liquidity loans to Popular Financial Societies affiliated with its Federation, as well as to those Popular Financial Societies not affiliated that are supervised in an auxiliary manner by the Federation itself, provided that such credits have been discounted from its capital, in accordance with what is provided by subsection h), fraction I of article 36 of the Law.

. . .

II. and III.

. . .

Article 204 Bis.- Popular Financial Societies will not have to identify credits that represent a "Common Risk" in the terms provided by fraction I of article 204 above, provided that the sum of the twenty credits with the largest outstanding balance granted by the Popular Financial Society does not represent more than 10 percent of the total portfolio of the Popular Financial Society and no credit is greater than 1 percent of its net capital. For these limits, the covered part in the terms indicated in article 204 fraction I, last paragraph, is not considered.

For these purposes, Popular Financial Societies will only maintain control regarding the property and kinship links of the borrowers referred to in the previous paragraph, that exceed 1 percent of their net capital.

Notwithstanding, if the Popular Financial Society had evidence that allowed it to infer the existence of links between borrowers that, as a whole, could exceed the diversification limits provided by fraction I of article 204 above, they must establish monitoring procedures for the follow-up of the behavior of the persons in question. "

" Article 205.- Popular Financial Societies must inform the public, at least once a year, together with their closing financial statements of the fiscal year, and with greater frequency if market conditions so require, information relating to:

I. and II.

. . . "

" Article 205 Bis 8.-

. . .

II.

. . .

The Popular Financial Society in question will calculate the difference between the minimum Capitalization Level required to be classified in category 1 and its Capitalization Level as follows:

. . .

[Table] . . .

. . .

III.

. . . "

" Article 206.- Popular Financial Societies must constitute additional preventive provisions to those they must create as a result of the qualification process of their credit portfolio, up to the amount required to provision 100 percent of those that are granted without there being in the respective credit files, documentation that proves having made a prior consultation to a Credit Information Society regarding the credit history of the applicant corresponding and, if applicable, of the persons acting as guarantors, sureties, or joint and several obligors in the operation. Regarding this, Popular Financial Societies will only consult the credit history of the persons acting as guarantors, sureties, or joint and several obligors in the operation when the applicant's report presents debts with more than 15 percent of the total balances overdue for periods longer than 90 days.

Popular Financial Societies, for the purposes of this article, will consult the credit history of both natural and legal persons applying for credit. Popular Financial Societies with Operational Levels II, III, and IV, will have a term of up to 180 calendar days counted from the date their authorization to organize and operate as a Popular Financial Society takes effect, to implement the actions, mechanisms, and internal processes that are necessary to carry out said consultations with Credit Information Societies. This is understood to mean that during said term they will not be obliged to constitute the additional preventive provisions referred to in the first paragraph of this article.

Regarding Popular Financial Societies with Operational Level I, the term referred to in the previous paragraph will be up to 270 calendar days counted from the date their authorization to organize and operate as a Popular Financial Society takes effect.

Popular Financial Societies may only release the additional preventive provisions constituted in accordance with what is stated in the first paragraph of this article, three months after they obtain the report issued by a Credit Information Society regarding the borrower in question and integrate it into the corresponding credit file.

Article 207.- Popular Financial Societies will be exempt from what is provided in Article 206 above, regarding:

Credits whose applicants have an employment relationship with the granting Popular Financial Society and give their irrevocable consent for payment to be made through deductions that are made to their salary;

II.

. . .

III.

Credits regarding which Popular Financial Societies have guarantees constituted at 100 percent in cash in terms of what is provided by Section IV of Annex D of these provisions, which can ensure the application of said resources to the total amount of the credit in question, and

IV.

. . . "

" Article 208.- Popular Financial Societies must have policies and procedures approved by the Board of Directors that allow implementing control measures to identify, evaluate, and limit in a timely manner the taking of risks in the granting of credits, based on the information they obtain from Credit Information Societies, in which it is provided, at least, the following:

I. to VI.

. . .

Popular Financial Societies will incorporate the mentioned policies and procedures into their credit manuals, observing what is provided by Title Three, Chapter Three of this Title, in accordance with the asset level of each Popular Financial Society

Article 209.- Popular Financial Societies will send to the corresponding Supervision Committee the policies and procedures contained in the credit manual referred to in article 208 above, approved by the Board of Directors of the Popular Financial Society in question.

The Commission, in exercise of its supervisory and surveillance powers, may veto or order modifications to said policies and procedures, when they do not comply with what is provided in this Chapter, within 30 calendar days following the date of receipt. "

" Article 209 Bis.-

. . .

I. and II.

. . .

III.

Permanently review payment policies and procedures and make necessary adjustments when the risks assumed by the Popular Financial Society, or their materialization, is greater than expected, and represent a threat to the liquidity, solvency, stability, and reputation of the Popular Financial Society itself. "

" Article 209 Bis 3.- Popular Financial Societies will make known through their Internet page, as well as in the report referred to in fraction IX, third paragraph of article 212 of these provisions, information regarding their Remuneration System, updating said information annually, and including at least the following:

. . .

a) to d)

. . .

i. and ii.

. . .

iii.

Analysis of the measures put into practice to adapt remunerations in case the result of performance measurements indicates weaknesses.

f) and g)

. . .

II.

. . .

The information classified as quantitative contained in this article must be revealed at least for the two years prior to the one reported, whenever there is information regarding it.

Article 209 Bis 4.- The Board of Directors will be responsible for the approval of the Remuneration System, the policies and procedures that govern it, and its modifications. Likewise, it must monitor the adequate functioning of the Remuneration System based on the semi-annual reports of the Remuneration Committee referred to in fraction V of article 209 Bis 6 of these provisions, as well as the annual report on the performance of the Remuneration System and the report on the consistency in the application of said system presented by risk and audit committees, as applicable.

. . . "

" Article 209 Bis 7.- Popular Financial Societies that have a risk committee integrated in terms of article 164 of these provisions, may assign to this the functions attributed to the Remuneration Committee, provided that at least one of the members of the Board of Directors that make up the risk committee is independent, and another has extensive experience in risk management or internal control. For the case of Popular Financial Societies with a total assets amount equal to or less than 280,000,000 UDIs, that do not have a risk committee in terms of this paragraph, the Board of Directors may perform the functions of the Remuneration Committee.

. . . "

" Article 210.-

. . .

Regarding this, the terms defined in article 1 are not applicable to this chapter nor to Annex E of these provisions. Likewise, the terms defined in Annex E are not applicable to the rest of the provisions in question.

. . .

Article 211.-

Popular Financial Societies must keep their accounting in accordance with the Accounting Criteria attached to these provisions as Annex E, which are divided into the series and criteria indicated below:

Series A.

. . .

Series B.

. . .

Series C.

. . .

Series D.

. . .

. . . "

" Article 211 Bis 1.-

. . .

Statement of Account, singular or plural, to the document referred to in article 13 of the Law for Transparency and Ordering of Financial Services, in which the balances are presented and the movements observed in the investment operations contracted by a Popular Financial Society are detailed.

II.

Consultation Medium, singular or plural, to the means to carry out the consultation of the Statements of Account by Popular Financial Societies agreed with financial entities, where those maintain the investment accounts referred to in article 13 of the Law for Transparency and Ordering of Financial Services.

III. to V.

. . . "

" Article 211 Bis 3.- Popular Financial Societies will consider as the fair value of the Securities that make up their balance sheet, the Updated Price for Valuation obtained from the financial entities in which they maintain investment accounts in accordance with what is provided in article 211 Bis 2 of these provisions.

Article 211 Bis 4.- Popular Financial Societies will recognize daily the Updated Prices for Valuation that are made known to them by the financial entities in terms of what is stated by article 211 Bis 2 of these provisions, proceeding consequently to make the corresponding records in their accounting. "

" Article 212.-

. . .

Popular Financial Societies must formulate their basic financial statements in accordance with the Accounting Criteria referred to in article 211 above, or those that replace them.

. . .

II.

. . .

III.

. . .

" This balance sheet was formulated in accordance with the Accounting Criteria for Popular Financial Societies, Community Financial Societies, and Rural Financial Integration Organizations established in Annex E of these provisions, issued by the National Banking and Securities Commission, based on what is provided by articles 117, 118, and 119 Bis 4 of the Popular Savings and Credit Law, of general and mandatory observance, applied consistently, with the operations carried out by the Popular Financial Society up to the aforementioned date reflected, which were carried out and valued in compliance with sound financial practices and applicable legal and administrative provisions.

. . .

" This income statement was formulated in accordance with the Accounting Criteria for Popular Financial Societies, Community Financial Societies, and Rural Financial Integration Organizations established in Annex E of these provisions, issued by the National Banking and Securities Commission, based on what is provided by articles 117, 118, and 119 Bis 4 of the Popular Savings and Credit Law, of general and mandatory observance, applied consistently, with all income and expenses derived from the operations carried out by the Popular Financial Society during the aforementioned period reflected, which were carried out and valued in compliance with sound financial practices and applicable legal and administrative provisions.

. . .

" This statement of changes in equity was formulated in accordance with the Accounting Criteria for Popular Financial Societies, Community Financial Societies, and Rural Financial Integration Organizations established in Annex E of these provisions, issued by the National Banking and Securities Commission, based on what is provided by articles 117, 118, and 119 Bis 4 of the Popular Savings and Credit Law, of general and mandatory observance, applied consistently, with all movements in equity accounts derived from the operations carried out by the Popular Financial Society during the aforementioned period reflected, which were carried out and valued in compliance with sound financial practices and applicable legal and administrative provisions.

. . .

" This statement of cash flows was formulated in accordance with the Accounting Criteria established in Annex E of these provisions for Popular Financial Societies, Community Financial Societies, and Rural Financial Integration Organizations, issued by the National Banking and Securities Commission, based on what is provided by articles 117, 118, and 119 Bis 4 of the Popular Savings and Credit Law, of general and mandatory observance, applied consistently, with all cash inflows and cash outflows derived from the operations carried out by the Popular Financial Society during the aforementioned period reflected, which were carried out and valued in compliance with sound financial practices and applicable legal and administrative provisions.

. . .

IV. and V. . . .

VI.

. . .

The Supervision Committee will prepare a brief explanation of the concept of Capitalization Level, as well as the capitalization category corresponding to the Popular Financial Society in terms of article 74 of the Law, in order to include it in the notices, in the branches, or in the publications referred to in the following fraction, as applicable, in order to facilitate its reading and interpretation.

In addition to the above, Popular Financial Societies must send their financial statements to the Commission within the same deadlines, in terms of what is stated by article 331 of these provisions, in order for this to publish them through its Internet page.

VII.

. . .

Regardless of the notices and publications referred to in the previous fraction VI, Popular Financial Societies must observe, if applicable, what is provided by article 177 of the General Law of Commercial Societies.

VIII.

. . .

IX.

. . .

a) to g) . . .

Amount and destination of resources prescribed in favor of public charity patrimony in terms of article 33 Bis of the Law.

To the point that it is considered relevant, the Popular Financial Society must explain the changes occurred in the main items of the balance sheet of the last fiscal year, as well as a general explanation in the evolution of these in the last three fiscal years. "

" Article 238.- Documentation of a purely informative nature that is not related to that referred to in articles 236 and 237 above, must be preserved for a minimum term of 6 months after they have fulfilled their purpose. It is at the discretion of each Popular Financial Society

determine the documentation of this type that must be microfilmed or recorded, remaining under their absolute responsibility to resolve on the destruction of said information.

Article 239.- Popular Financial Societies, prior to using microfilming or recording mechanisms, must deposit with the Commission a document certified by the official responsible for the area and by the Director or General Manager, in which the institutional procedures to be followed for microfilming or recording are described, which must include the norms contained in this Chapter, as well as a description of the system established for the control of microfilmed or recorded documents referred to in articles 254 and 265, respectively.

. . . "

" Article 242.- All aspects related to the processes of microfilming and destruction of documents, must be under the charge and responsibility of the official or officials expressly designated by the Popular Financial Society, who will act as operators for each office where such work is carried out, which include:

I. to IV.

. . .

The Popular Financial Society must ensure that the "original camera negative" of each microfilmed roll is never subject to any cutting or addition. Once the certification established in article 249 of these provisions has been issued, the "original camera negative" will remain under the custody of the official or officials expressly designated by the Popular Financial Society, who will act as custodians and will be responsible, in turn, for its conservation in a duly controlled and conditioned place to ensure its effective protection against theft, accidents, and destruction by natural elements and to facilitate its consultation, for which they must be properly classified and integrated into the corresponding file index.

Article 243.-

. . .

The name or corporate name of the Popular Financial Society and, if applicable, the area or department in question;

II. and III.

. . . "

" Article 247.- Once the filming of a film roll is completed, it may be sent for development to a specialized establishment, or it may be developed with equipment and personnel of the Popular Financial Society itself, provided that in either case such development is carried out through systems that guarantee an optimal level of quality and preserve the confidentiality mentioned in article 34 of the Law. "

" Article 249.- Once the rolls are developed, the "original camera negatives" will be reviewed to verify that there are no images reproduced defectively, nor cuts or splices in the film. If the review is satisfactory, the responsible verifying official will issue the certification to that effect and keep the original in their possession, delivering another copy to the official designated pursuant to article 242. Otherwise, all pertinent observations resulting from the faults or anomalies found during the review must be noted in a special document, among which reference must be made to each of the blank spaces that have not been explained in article 243.

. . .

Article 250.- The "original camera negative" referred to in the second paragraph of article 242 of these provisions cannot be subject to any cutting or addition, so the microfilming that may be done, if applicable, of the certification referred to in the previous article 249, as well as that carried out to correct the faults determined after the respective roll is developed, cannot be added to it, but must be contained in special rolls of "original camera negatives", which must satisfy the same requirements established for ordinary ones and with respect to which the necessary references will be established so that they can be easily related to the roll in question, and care will be taken that the corrections to the observed faults are microfilmed in the same order in which the latter were recorded in the certification referred to in the previous article.

. . .

Article 251.- If for any cause a roll of "original camera negative" mentioned in the second paragraph of article 242 of these provisions were to break or deteriorate, a record must be drawn up signed by the responsible verifying official or officials, and by another person designated for the effect, in which it will be stated:

I. to IV.

. . .

Article 252.- The destruction of books and documents that Popular Financial Societies carry out under their exclusive responsibility, pursuant to what is provided in this Chapter, must be done by incinerating them or by any other procedure that ensures their total destruction, drawing up a record for this purpose, signed in all cases by the person designated by the Popular Financial Society and the responsible official referred to in article 242 of these provisions, who will keep a copy in their possession and deliver another to the official referred to in the second paragraph of the aforementioned article.

In said record, the type of books and documents that were incinerated or destroyed will be stated; as well as the numbers and other references that identify the rolls in which the books or documents were previously microfilmed.

The foregoing shall also apply for the purposes of the recording process provided for in the following Third Section. In this case, the official responsible for signing the record referred to in the previous paragraph will be the one mentioned in the first paragraph of article 257 of these provisions and will deliver a copy of the record to the official indicated in the last paragraph of the same article. "

" Article 254.- Popular Financial Societies that use microfilming procedures must establish a control system through which they can locate and identify with ease, at any time, the microfilmed documents. "

" Article 255.- The storage media used for recording documents must guarantee the confidentiality, integrity, and availability of the information contained in them, taking into account their estimated lifespan. The format of the files with the recorded images will be at the free choice of the Popular Financial Society, considering that it be an existing standard in the technological market. "

" Article 257.- All aspects related to the processes of recording and destruction of documents, must be under the charge and responsibility of the official or officials expressly designated by the Popular Financial Society who will act as operators for each office where such work is carried out, which will include:

I. to IV.

. . .

The Popular Financial Society must ensure that each medium in which the digital image is stored contains a faithful copy of the original documentation.

Once the certification established in article 262 of these provisions has been issued, the recorded documentation will remain under the custody of the official or officials expressly designated by the Popular Financial Society, who will act as custodians and will be responsible, in turn, for its conservation, in a duly controlled and conditioned place, to ensure its effective protection against theft, accidents, and destruction by natural elements, as well as to facilitate its consultation, for which they must be properly classified and integrated into the corresponding file index.

Article 258.- Each recording process must generate an index of the documents recorded in which it indicates, at least, the name of the file, storage path, size, date and time of creation, number of images in the file, and a descriptive reference of its content, as well as the key of the medium where the documentation was recorded. At the end of the index, the total number of files and directories or subdirectories existing, the total space of the storage medium, and the total occupied space will be noted. The index must have, as a header, the name of the Popular Financial Society and at the bottom of the page it will contain the name of the operator and the official who verified the preparation of the documents and the place and date on which the recording was made. This information must be printed and signed by the aforementioned officials and stored as a digital image within the same medium. On the other hand, the physical storage medium must be duly identified containing, at least, the name of the Popular Financial Society, place and date of storage, internal control key, name and signature of the operator and the verifying official. "

" Article 260.- The recording process may be carried out with equipment and personnel of the Popular Financial Society itself or sent for its elaboration to a specialized establishment that carries out this type of work, provided that in either case said process is carried out through systems that guarantee an optimal level of quality and the confidentiality mentioned in article 34 of the Law. "

" Article 262.- Once the documents are recorded, the files will be reviewed to verify that there are no recorded images in a defective manner (lack of quality, incomplete, illegible, or damaged, etc.), with respect to the original document, nor physical damage to the storage medium. If the review is satisfactory, the responsible verifying official will issue the certification to that effect, accompanied by the respective index, which they will keep in their possession, delivering another copy of both documents to the official designated pursuant to article 257 of these provisions. Otherwise, all pertinent observations resulting from the faults or anomalies found during the review must be noted in a special document. Such notes will constitute the antecedent of the certification that the responsible verifying official must also issue, stating the existence of such anomalies, as well as their causes, and providing the necessary references to locate and identify with complete precision both the observed fact and, if applicable, the correction of this. "

" Article 265.- Popular Financial Societies that use recording procedures must establish a control system through which they can locate and identify with ease, at any time, the recorded documents. "

" Article 265 Bis 1.- The Popular Financial Society, for the contracting of Electronic Services with Users, in addition to what is provided in the previous article 265 Bis, shall be subject to the following:

. . .

Those contracted through ATMs and Point of Sale Terminals, provided that these services are used to carry out Monetary Operations up to Medium Amount. For such contracting, the Popular Financial Society must request from Users a second Authentication Factor of Categories 3 or 4 referred to in article 265 Bis 4 of these provisions. Likewise, the Popular Financial Society must assume the risks and therefore the costs of the operations carried out through the aforementioned services that are not recognized by Users. Claims derived from these operations must be paid to Users no later than forty-eight hours after the claim.

II.

They may allow their Users to contract services and additional operations to those originally agreed upon or modify the previously agreed conditions with the User, when contracting the use of Electronic Services, provided that the Popular Financial Society requires a second Authentication Factor of Categories 3 or 4 referred to in article 265 Bis 4 of these provisions, in addition to the one used, if applicable, to start the Session.

In these cases, the Popular Financial Society must send a notification in terms of what is provided by article 265 Bis 13 of these provisions and the corresponding service will be enabled for use in the period determined by each Popular Financial Society, which cannot be less than thirty minutes counted from when the contracting was made.

III.

Regarding the services mentioned in paragraphs a) and b) of fraction I above, the contracting may be carried out in accordance with fractions I and II above, or through telephone operators of the Popular Financial Society itself, subject to what is stated in fraction I of article 265 Bis 4 of these provisions. In all cases, for the Mobile Payment service, the Popular Financial Society must authenticate Users using procedures that ensure that the User themselves is the one requesting the service.

a) and b) . . .

. . .

IV.

The Popular Financial Society must request from its Users at the time of contracting, data of some communication medium, such as their email address or Mobile Phone number for the receipt of SMS Text Messages, in order for the Popular Financial Society to deliver the notifications referred to in article 265 Bis 13 of these provisions. "

" Article 265 Bis 2.- The Popular Financial Society, to allow the start of a Session, must request and validate at least:

. . .

II.

An Authentication Factor of Categories 2 or 4 referred to in article 265 Bis 4 of these provisions.

. . .

. . . "

" Article 265 Bis 4.-

. . .

I. and II.

. . .

III.

. . .

a) to d) . . .

The Popular Financial Society may provide its Users with means or devices that generate dynamic one-time Passwords, which use information from the Destination Account and, in the case of non-monetary operations, any other information related to the type of operation or service in question, so that said Password can only be used for the requested operation. In these cases, what is provided in paragraph c) of this fraction, as well as what is established in the fourth paragraph of article 265 Bis 8 of these provisions regarding the time in which Destination Accounts must remain enabled, will not apply.

. . .

IV.

. . . "

" Article 265 Bis 6.- Popular Financial Societies may request from Users only a Category 1 Authentication Factor, according to what is established in article 265 Bis 4 of these provisions, in the following cases:

I. to III.

. . .

Article 265 Bis 7.- Popular Financial Societies must request from Users, for the celebration of operations or provision of services through Electronic Means, a second Authentication Factor of Categories 3 or 4 referred to in article 265 Bis 4 of these provisions, in addition to the one used, if applicable, to start the Session and on each occasion when each of the following operations and services are intended to be carried out:

. . .

When Destination Accounts have been registered in offices of the Popular Financial Society or before an official or representative of this duly accredited to the User, using the User's autograph signature, prior to their identification or, if the User has requested that said accounts be considered as Recurring Destination Accounts pursuant to what is stated in article 265 Bis 9 of these provisions, Popular Financial Societies may allow Users to carry out said operations using a single Authentication Factor of Categories 2, 3 or 4 referred to in article 265 Bis 4 of these provisions. Likewise, Popular Financial Societies must provide what is necessary so that Users can deactivate or cancel the Destination Accounts registered in the Electronic Services in question;

II.

. . .

III.

Establishment and increase of amount limits for Monetary Operations referred to in article 265 Bis 10 of these provisions, for the service in question or other Electronic Services;

IV.

. . .

Registration and modification of the notification medium referred to in article 265 Bis 13 of these provisions, except for what is provided in the last paragraph of said article;

VI.

. . .

Popular Financial Societies may allow Users to consult account statements, requiring only a Category 2 Authentication Factor referred to in article 265 Bis 4 of these provisions, provided that such consultations concern credit operations and the notification referred to in article 265 Bis 13 of these provisions is made. In these cases, Popular Financial Societies must request a Category 2 Authentication Factor referred to in article 265 Bis 4 of these provisions, to comply with what is provided in fraction V of this fraction;

VII.

Contracting of Electronic Services or additional operations and services to those originally agreed upon, pursuant to what is provided in article 265 Bis 1 of these provisions;

VIII. and IX.

. . .

Popular Financial Societies will not be obligated to request from Users an Authentication Factor of Categories 3 or 4 referred to in article 265 Bis 4 of these provisions, when it comes to Monetary Operations carried out through Mobile Payment. Such operations may be carried out using at least a Category 2 Authentication Factor referred to in article 265 Bis 4 of these provisions, Popular Financial Societies must ensure that Monetary Operations are carried out through the line number associated with the service.

. . .

Likewise, Popular Financial Societies may send, at the request of Users, account statements via email, provided that the information is transmitted in encrypted form or with mechanisms that prevent its reading by unauthorized third parties, and require a Category 2 Authentication Factor referred to in article 265 Bis 4 of these provisions, for the User to have access, which must be different from the one used to access the Internet Service. Popular Financial Societies must establish measures that protect the confidentiality of the transmitted data and the Authentication Factor used.

Regarding Internet Services provided to Users who are legal entities, Popular Financial Societies may implement mechanisms through which a person authorized by the User makes the request to carry out the operations, and another person distinct from the one designated by the User themselves, authorizes its execution. In these cases, Popular Financial Societies may be exempted from the obligation that the Internet Service comply with the account enablement time, as well as regarding the use of a second Authentication Factor for each operation, provided that Popular Financial Societies implement controls that allow differentiating the functions applicable to the person requesting an operation, from those applicable to the person authorizing its execution. In the case established in this paragraph, Popular Financial Societies must obtain prior authorization from the Commission, in whose request they must expose the controls that will allow Users to carry out operations securely.

. . . "

" Article 265 Bis 8.- For the celebration of Monetary Operations provided for in fractions I and II of the previous article 265 Bis 7, through Electronic Services, Popular Financial Societies must ensure that Users register the Destination Accounts in the Electronic Services in question prior to their use, either to be used within the same service or, if they so agree with Users, in other Electronic Services.

. . .

Regarding electronic payments through a scheme in which the payment is requested by the recipient of the funds and the payer authorizes it from a mobile device, through an application that the Popular Financial Society makes available to its Users, with the objective of accessing the Internet Service and there is a third party that implements validation controls of the recipient of funds for the validation of the beneficiary Users' accounts, prior registration of Destination Accounts nor the minimum time period referred to in this article will be required when such operations are up to the equivalent of Medium Amount. For operations for amounts greater than Medium Amount, the minimum waiting period will not apply.

Popular Financial Societies, based on available information, must validate at the time of registration, the structure of the Destination Account number of the contract, whether it be deposit accounts, service payments, credit and debit cards, or other payment means.

. . .

Article 265 Bis 9.-

. . .

Use, at the time of the request for registration of the Recurring Destination Account, a second Authentication Factor of Categories 3 or 4 referred to in article 265 Bis 4 of these provisions.

II. and III.

. . .

Article 265 Bis 10.- . . .

Popular Financial Societies may allow their Users to reduce the limits previously established in such Electronic Services, using a Category 2 Authentication Factor referred to in article 265 Bis 4 of these provisions. For the case of Voice Telephone Services, Popular Financial Societies may employ a Category 1 Authentication Factor referred to in the aforementioned article 265 Bis 4.

Likewise, Popular Financial Societies must provide what is necessary so that Users establish amount limits for the Monetary Operations provided for in fractions I and II of article 265 Bis 7 of these provisions, for Internet Services, Voice Telephone Services, Audio Response Telephone Services, and Advanced Mobile Services.

Regarding ATMs, the accumulated daily amount of Monetary Operations that represent a charge to the Client's account, cannot exceed the equivalent in national currency to Medium Amount Monetary Operations per account, with the exception of those operations between own accounts and the deposits made to preregistered accounts pursuant to what is provided in article 265 Bis 8 of these provisions; in such cases, the limit will be determined by the Popular Financial Society

Popular Financial.

. . .

. . . "

" Article 265 Bis 13.

. . .

Notifications regarding the execution of the operations indicated in fractions I and II of Article 265 Bis 7 of these provisions, carried out through Mobile Payment, ATMs, and Point of Sale Terminals, must be sent when the daily accumulated total of said operations for the Electronic Services in question exceeds the equivalent in national currency to 600 UDIs, or when the Monetary Operations individually exceed the equivalent in national currency to 250 UDIs. In the latter case, provided that Popular Financial Societies have specific fraud prevention schemes in order to continuously review those operations that may constitute unauthorized use of the Electronic Services.

Under no circumstances shall Popular Financial Societies allow the modification of the notification method through ATMs and Point of Sale Terminals. Popular Financial Societies must allow Users to modify the notification method for the Electronic Services offered at ATMs or Point of Sale Terminals through telephone attention, using a Category 1 Authentication Factor as referred to in Article 265 Bis 4 of these provisions.

. . .

Article 265 Bis 14.

. . .

I. and II.

. . .

III.

In the event that Popular Financial Societies offer third-party services through links in Electronic Services, they must communicate to Users that, upon entering said services, the session opened with the Popular Financial Society in question will automatically close and they will enter another whose security does not depend on nor is the responsibility of said society.

Article 265 Bis 15.

. . .

Popular Financial Societies may unlock the use of Authentication Factors that have previously been blocked in the cases contemplated in the preceding fractions I and II, for which they may use a Category 1 Authentication Factor as referred to in Article 265 Bis 4 of these provisions, in terms of what is provided in fraction III of Article 265 Bis 6 of these provisions, or ask Users secret questions, the answers to which must be kept stored in encrypted form. For the purposes of what is provided in this paragraph, a secret question shall be understood as the questioning defined by the User or the Popular Financial Society, during the Electronic Services contracting process, regarding which information is generated as a response. Each secret question defined may only be used on one occasion.

Regardless of the foregoing, Popular Financial Societies must allow the User to Reset Passwords and Personal Identification Numbers (PINs) using the service contracting procedure described in Article 265 Bis of these provisions.

Article 265 Bis 16.

. . .

I. and II.

. . .

III.

They are prohibited from requesting from Users, through their officials, employees, representatives, or agents, partial or complete information on the Authentication Factors of Categories 2 or 3 as referred to in Article 265 bis 4 of these provisions.

The provisions of this section are exempted for operations carried out via Voice-to-Voice Telephone Service, provided that the User has initiated the call, partial information of the Authentication Factor of Categories 2 or 3 as referred to in Article 265 bis 4 of these provisions is required, and this is used exclusively for Electronic Services.

Article 265 Bis 17.

. . .

The temporary deactivation of the use of the Electronic Services mentioned in the previous paragraph must be carried out at all times within a Session in the same service, or through another service contracted by the User, requiring in both cases an Authentication Factor of any of the categories provided in Article 265 bis 4 of these provisions.

For the reactivation of the use of Electronic Services mentioned in the first paragraph of this article, Users may use the same mechanisms indicated in Article 265 Bis of these provisions, or a Category 1 Authentication Factor as referred to in Article 265 bis 4 of these provisions. Popular Financial Societies must observe what is stated in the Second Section of this Chapter to initiate a Session once the service has been reactivated. "

" Article 265 Bis 20.- Popular Financial Societies that offer Electronic Services through ATMs and Point of Sale Terminals, whether their own or those of third parties contracted by said societies, must ensure that these have readers that allow obtaining the information of Credit or Debit Cards with Integrated Circuits, understanding that the information must be read directly from the circuit or chip itself.

. . .

In all cases, Popular Financial Societies must comply with what is provided in fraction III of Article 265 Bis 4 of these provisions. "

" Article 265 Bis 21.

. . .

Encrypt messages or use encrypted communication means, in the transmission of the User's Sensitive Information processed through Electronic Means, from the Access Device until its receipt for execution by Popular Financial Societies, in order to protect the information, including that related to User identification and Authentication such as Passwords, Personal Identification Numbers (PINs), any other Authentication Factor, as well as the information of the answers to the secret questions referred to in the penultimate paragraph of Article 265 Bis 15 of these provisions.

. . .

II.

. . .

III.

. . .

Likewise, the information of Category 2 Authentication Factors as referred to in Article 265 Bis 4 of these provisions, used to access account statement information, may be communicated to the User through automatic audio response devices, as well as by mail, provided that it is sent using security mechanisms, upon the User's request and the corresponding Authentication processes have been carried out.

IV.

. . .

Article 265 Bis 22.

. . .

I. to IV.

. . .

The obtaining of information stored in the databases and files referred to in this article, without the corresponding authorization, or the improper use of said information, will be sanctioned in terms of what is provided in the Law, even in the case of third parties contracted under what is established in Article 36 bis 3 of said legal instrument. "

" Article 265 Bis 34.- Popular Financial Societies may contract with third parties, including other financial entities, the provision of services necessary for their operation, as well as commissions to carry out the operations provided in Article 36 of the Law according to their Level of Operations in accordance with said article, subject to what is stated in this chapter.

. . .

Professional or advisory services including mandates and commissions, except if the latter are for the execution of the operations indicated in Article 36 of the Law.

II.

Auxiliary and complementary services that Popular Financial Societies obtain from the societies in which they invest under Article 36 of the Law.

In the case of Popular Financial Societies, the services contracted with members of the Financial Group to which said societies belong in accordance with Article 12 of the Law to Regulate Financial Groupings shall not be applicable.

III. to VIII.

. . .

IX.

Receipt of payments of federal, state, municipal contributions and those corresponding to the Mexico City, in cash or charged to credit or debit cards.

However, in both the services referred to in the preceding fractions and those regulated in this chapter, Popular Financial Societies must ensure at all times that the persons providing them services maintain the due confidentiality of the information related to active, passive, and service operations entered into with their Clients, as well as that related to the latter, in case they have access to it.

Likewise, said Popular Financial Societies must keep the data of the persons providing them with the services mentioned in the first and second paragraphs of this article, in the registry referred to in Article 265 Bis 50 of these provisions.

Article 265 Bis 35.- Popular Financial Societies, with the exceptions provided in fractions I to IX of the previous Article 265 Bis 34, to contract any of the services or to enter into any of the commercial commissions referred to in this chapter, must comply with the following requirements:

. . .

Likewise, in no case may such agents carry out approvals and openings of active, passive, and service operation accounts, except if it concerns operations provided for in Article 265 Bis 36, fraction IX of these provisions.

II.

. . .

III.

. . .

Receive home visits by the external auditor of the Popular Financial Society, the Supervision Committee or the Commission or third parties designated by the Commission itself in terms of what is provided in Article 120 of the Law, for the purpose of carrying out the corresponding supervision, with the exclusive purpose of obtaining information to verify that the services or commissions contracted by the Popular Financial Society allow the latter to comply with the provisions of the Law applicable to it.

For the visits referred to, Popular Financial Societies may designate a representative.

b) to e) . . .

. . .

IV. to VII.

. . .

. . . "

" Article 265 Bis 36.

. . .

II.

Receipt of payments of federal, state, municipal contributions and those corresponding to the Mexico City, in cash or charged to credit or debit cards.

III.

Cash withdrawals made by the Client holder of the respective account themselves, or by persons authorized in terms of the first paragraph of Article 36 Bis of the Law.

IV. to IX. . . .

. . .

Article 265 Bis 37.- Popular Financial Societies will require authorization from the Commission to enter into commercial commissions that have as their object to carry out the operations referred to in fractions I, II and IV to IX of the previous Article 265 Bis 36.

. . .

Said business strategic plan must contain, for each of the operations referred to in the previous Article 265 Bis 36, the following:

The documentation that accredits compliance with the requirements indicated in fractions II, IV, V, VI and VII of the previous Article 265 Bis 35.

In the case of operations carried out through Administrators of Agents, Popular Financial Societies must establish that the latter, in their capacity as attorneys-in-fact, will accredit compliance with the requirements indicated in fractions II, IV, V and VI of Article 265 Bis 35 regarding the operations carried out by the agents they administer.

II. to VI. . . .

VII.

. . .

a) and b) . . .

Security for the prevention of operations referred to in Article 124 of the Law.

. . .

Likewise, Popular Financial Societies must indicate the measures they will implement in the cases provided for in fraction VII of Article 265 Bis 35 of these provisions.

VIII. to X

. . .

Article 265 Bis 38.- Popular Financial Societies must present to the Commission, a notice signed by the Director or General Manager, when they intend to contract commercial commissions that have as their object to carry out the operations referred to in fraction III of Article 265 Bis 36 of these provisions, with an advance of at least twenty business days prior to said contracting.

In all cases, for the contracting of said operations, Popular Financial Societies must have the business strategic plan referred to in the previous Article 265 Bis 37, which must be kept available to the Commission.

Article 265 Bis 39.- Popular Financial Societies in the execution of any of the operations referred to in Article 265 Bis 36 of these provisions, must adhere to the following:

. . .

In the case of the operations referred to in fraction V of Article 265 Bis 36 of these provisions, the operations may be carried out without the resources being transferred online, provided that the Popular Financial Society in question, through its agent, indicates in the respective operation receipt, the date or term in which the payment made will be credited. Said operation receipt will have probative value for any clarification purposes and must be recognized as such by the Popular Financial Societies that issue them.

Likewise, in the case of the operations referred to in fraction VI of Article 265 Bis 36 of these provisions, when carried out in cash to accounts of Popular Financial Societies other than the principal, the latter must transfer the corresponding resources, in the same way that said operations are carried out in their branches, provided that the Popular Financial Society in question so agrees with its Clients through its agents and it is indicated in the respective operation receipt, the date or term in which the respective operations will be credited.

. . .

II.

. . .

Additionally, Popular Financial Societies must provide their Clients and the public with a telephone number to which they can call to know the agents with which the Popular Financial Society has contracted in terms of this section. Likewise, Popular Financial Societies must ensure that their agents place the aforementioned telephone number visibly in their establishments.

III. to V. . . .

Article 265 Bis 40.

. . .

In the case of the operations referred to in fraction III of Article 265 Bis 36 of these provisions, per agent, they may not exceed a daily amount equivalent in national currency to 1,500 UDIs, for each type of investment and account.

II.

In the case of the operations referred to in fraction IV of Article 265 Bis 36 of these provisions, per agent, they may not exceed:

a) and b)

. . .

The limits referred to in this article will not be applicable with respect to the commissions that Popular Financial Societies contract with entities of the Federal, State and Municipal Public Administration; credit institutions, brokerage houses, other Popular Financial Societies and Community Financial Societies, as well as with respect to commissions for the execution of operations related to debit and reloadable cards considered as payment means by the Bank of Mexico.

Article 265 Bis 41.- Popular Financial Societies, in the commercial commission contract they enter into for the execution of the operations referred to in this section, in addition to what is provided in fraction III of Article 265 Bis 35, must provide for the following:

. . .

In the case of operations carried out through Administrators of Agents, Popular Financial Societies must provide in the commercial commission contracts, the operations that the Administrator of Agents will contract on behalf of the Popular Financial Society with the agents it will administer, as well as, if applicable, the operations and services that, in addition to those provided in fraction IX of Article 265 Bis 36 of these provisions, the Administrator of Agents itself will carry out.

II.

. . .

III.

. . .

In the case of operations carried out through Administrators of Agents, Popular Financial Societies must provide in the commercial commission contracts, the joint and several obligation of the Administrator of Agents regarding compliance by the agents subject to its administration with what is provided in fraction I of Article 265 Bis 39 of these provisions.

IV.

. . .

The sanctions and, if applicable, conventional penalties for breaches of the contract, including what is provided in Articles 265 Bis 47 and 265 Bis 48 of these provisions.

VI.

. . .

In the case of operations carried out through Administrators of Agents, Popular Financial Societies must provide in the commercial commission contracts, the obligation on the part of said administrator to accredit compliance with the requirements indicated in fractions II, IV, V and VI of Article 265 Bis 35 regarding the operations they carry out with their administered agents.

VII.

. . .

VIII.

. . .

Condition the execution of the operation on the acquisition of a product or service, in the case of the operations referred to in fractions I to IX of Article 265 Bis 36 of these provisions.

b) to g)

. . .

IX.

The terms and conditions referred to in the penultimate paragraph of subsection b) of fraction II of Article 265 Bis 40 of these provisions, if applicable.

The power of the Popular Financial Society to suspend operations or terminate the respective contract without liability, in terms of what is provided in Article 265 Bis 48 of these Provisions.

XI.

In the case of the operations referred to in fraction IX of Article 265 Bis 36 of these provisions, the obligation of the agent or, if applicable, the Administrator of Agents to collect from the Client the necessary information in order to comply with what is provided in Article 124 of the Law and the provisions emanating from said provision.

To this end, said agents or, if applicable, the Administrators of Agents must transmit in a timely manner to the Popular Financial Society the information related to the mentioned operations, so that the society itself complies with the cited Article 124 of the Law and the provisions emanating from it.

Popular Financial Societies, in the execution of the operations referred to in this section, may contract with agents in order for them to provide their services exclusively, except for what is stated in subsection g) of the preceding fraction VIII of this article. However, Popular Financial Societies may not contract with third parties who, during the 12 months immediately preceding the date on which the respective commission takes effect, have served as exclusive agents of other Popular Financial Societies.

Article 265 Bis 42.

. . .

Financial entities, with the exception of those within the operations they are authorized to carry out in accordance with applicable regulations, the power to receive mandates or commissions is included, as well as those allowed to carry out the operations object of the mandate or commission in question, including other Popular Financial Societies, credit institutions and Community Financial Societies.

II.

and III.

. . . "

" Article 265 Bis 44.- The notice referred to in the previous Article 265 Bis 43 must be signed by the Director or General Manager of the Popular Financial Societies and meet the following requirements:

Contain the report referred to in fraction II of Article 265 Bis 35.

. . .

II.

. . .

Article 265 Bis 45.

. . .

Popular Financial Societies must request the authorization referred to from the Commission, at least twenty business days in advance of the date on which they intend to contract the services or the corresponding commission, accompanying for this purpose the documentation that accredits compliance with the requirements indicated in Article 265 Bis 35 of these provisions, and the following:

I. and II.

. . .

III.

. . .

a) to c) . . .

The measures they will implement in the cases provided for in fraction VII of Article 265 Bis 35 of these provisions.

For the request of authorization for the contracting of the services or commissions referred to in this article, what is provided in Articles 265 Bis 43, penultimate and last paragraphs and 265 Bis 44 of these provisions will be applicable. Likewise, the Commission will have the power to require the Popular Financial Society the contract entered into, with its translation into the Spanish language. "

" Article 265 Bis 46.

. . .

The Director or General Manager of the Popular Financial Society in question, will be responsible for following up on the application of the policies referred to in Article 265 Bis 35, fraction VII, to render to the Commission the annual report provided in Article 265 Bis 37, as well as to present the notice indicated in Article 265 Bis 43, all of these provisions.

. . .

. . . "

" Article 265 Bis 48.

. . .

In the case of the services or commissions referred to in the Second Section of this chapter, Popular Financial Societies must inform the Commission regarding any reform to the corporate purpose or internal organization of the third party or agent that could affect the provision of the service object of the contracting, within five business days following the receipt of the notification referred to in subsection d) of fraction III of Article 265 Bis 35 of these provisions. "

" Article 265 Bis 52.

. . .

In this case, Popular Financial Societies must establish that it will correspond to the Administrators of Agents to accredit, in their capacity as attorneys-in-fact, compliance with the requirements indicated in fractions II, IV, V and VI of Article 265 Bis 35 regarding the operations they carry out with the agents they administer. "

" Article 266 .- In addition to what is stated in Articles 63 and 70 of the Law, as well as in the bylaws of the Federation or Confederation, the Regulatory Comptroller will have, as appropriate, the following attributes:

Review the functioning of the Popular Financial Society, including the performance of executives and officials;

II. to IV.

. . .

Article 267 .- . . .

I. to X.

. . .

XI.

. . . "

Regarding General Managers of Federations, issue and make known to the affiliated Popular Financial Societies and those over which the corresponding Federation exercises auxiliary supervision powers, the financial statements of the latter; regarding General Managers of Confederations, issue and make known to the affiliated Federations and those in whose Protection Fund the affiliated Popular Financial Societies participate or those over which the Federation exercises auxiliary supervision powers, the financial statements of the corresponding Confederation, in the terms determined by the Board of Directors, in both cases.

Article 268 .-

Review the affiliation contracts or, where applicable, the auxiliary supervision contracts of the Popular Financial Societies;

II.

...

III.

...

IV.

...

..."

" Chapter II

Of the registration of Popular Financial Societies by Federations

Article 270 .-

Federations must provide the Commission with the Registry of Popular Financial Societies over which they exercise auxiliary supervision powers, in the following terms:

Only once and with respect to each Popular Financial Society over which they exercise auxiliary supervision powers, within a period of 30 days counted from the date on which the Commission authorizes said Popular Financial Societies to operate in accordance with the Law, and

II.

... "

" TITLE SIXTH

(Repealed) "

Chapter III

Of auxiliary supervision

Article 275.- Auxiliary supervision of the Popular Financial Societies referred to in article 47 of the Law, shall be exercised by the Supervisory Committee of each Federation, with respect to those Popular Financial Societies that are affiliated with it or that have entered into an auxiliary supervision contract with it in terms of what is provided in Title Three, Chapter Two, Fourth Section of the Law.

...

Article 276.- Auxiliary supervision shall aim to review, verify, check, and evaluate the resources, obligations, and equity of Popular Financial Societies, as well as their operations, functioning, control systems, and in general, everything that could affect the financial position and legal situation of Popular Financial Societies, which is or should be recorded in their records, in order that they comply with the provisions governing them and with sound financial practices.

...

Verify the degree of compliance of the Popular Financial Society with the current regulations issued by the authorities;

II.

Evaluate the financial condition of the Popular Financial Society;

III.

Evaluate the degree and risk profile of the operations carried out by the Popular Financial Society, including comprehensive risk management policies;

IV.

Evaluate the processes, systems, and internal controls of the Popular Financial Society, verifying compliance with the policies established by its governing bodies, including the credit process and measures to prevent money laundering operations, and

Detect possible irregularities in the operation of the Popular Financial Society, including the detection of possible money laundering operations. "

Article 277 .- For the fulfillment of the objectives established in the previous article 276, the auxiliary supervision process will be carried out in accordance with the policies and guidelines established by the Supervisory Committee, complying at minimum with what is established in the Auxiliary Supervision Guide, and will be divided into the following two phases:

I and II ...

...

Article 278 .- Auxiliary Supervisors will carry out the functions of Off-site Supervision using the information sent by Popular Financial Societies at the request of the Commission and the Supervisory Committee of the corresponding Federation.

The follow-up tasks will consist of maintaining continuous monitoring of the most relevant aspects of the performance of Popular Financial Societies, with the aim that Auxiliary Supervisors can timely determine the existence of non-compliance with applicable regulations, the use of unsound financial practices, or the presence of inconsistencies or financial difficulties.

The analysis tasks will consist of periodically examining and comparing the main financial indicators of Popular Financial Societies, as well as carrying out more detailed studies of the institution's financial situation, so that Auxiliary Supervisors have an objective evaluation of the financial condition maintained by Popular Financial Societies under auxiliary supervision.

Article 279 .- ...

Verify that Popular Financial Societies deliver on time and in the proper manner, in accordance with applicable regulations, the information required by the authorities, as well as by the respective Federation and/or Confederation, taking all necessary actions to assist in such compliance;

II.

Verify the accuracy, integrity, and consistency of the information delivered by Popular Financial Societies, instructing necessary corrections and ensuring their compliance;

III. and IV.

...

Permanently examine the performance and evolution of the Popular Financial Society, in order to know its situation and timely detect possible anomalies, legal or administrative non-compliance, or problematic or risky situations;

VI.

...

VII.

Maintain habitual contact with Popular Financial Societies regarding inquiries and clarifications;

VIII.

Carry out a periodic evaluation of the overall financial condition and risk profile of the Popular Financial Society;

IX.

Carry out a monthly financial analysis of the situation of the Popular Financial Society, through individual and comparative study against the Level of Operations corresponding to the same, of the value and trend of the main financial ratios of the Popular Financial Society, covering aspects of liquidity, profitability, stability, and solvency;

...

XI.

...

A report containing the monthly financial analysis of each Popular Financial Society subject to auxiliary supervision, observing at minimum the standards established by the Commission in the Auxiliary Supervision Guide, and

A quarterly Off-site Supervision report of each Popular Financial Society subject to auxiliary supervision, which must include the financial analysis of the respective quarter and a report on the follow-up of observations derived from the entire auxiliary supervision process, both Off-site and In-situ.

...

Article 280 .- In-situ Supervision will be carried out with the physical presence of Auxiliary Supervisors, directly at the facilities of the Popular Financial Society, through inspection visits to its offices, branches, and other establishments. Auxiliary Supervisors will carry out the functions of In-situ Supervision using the information sent by Popular Financial Societies at the request of the Commission and the Supervisory Committee of the corresponding Federation and any additional information that is deemed necessary to specifically request to carry out the inspection visit.

...

The purpose of the planning stage will be for Auxiliary Supervisors to determine, before starting the inspection, what will be the purpose, strategy, scope, duration, organization, and control of the visit. In this stage, Auxiliary Supervisors will incorporate the results provided by Off-site Supervision and, where applicable, detect possible specific points of concern based on the available information on the Popular Financial Society and the results of previous visits.

The inspection visit stage will aim for Auxiliary Supervisors to obtain a detailed and objective knowledge of the administration, operation, and marketing activities of the Popular Financial Society, as well as its operations, procedures, systems, internal controls, and degree of compliance with current regulations.

Article 281 .- ...

Review the information generation procedure, verifying the correct application of current Accounting Criteria for the recording, valuation, disclosure, and presentation of operations;

II.

Corroborate the existence of adequate documentation supporting the active and passive operations of the Popular Financial Society;

III.

...

IV.

Review the organizational structure of the Popular Financial Society, verifying that it adheres to applicable regulations and the internal policies of the Popular Financial Society itself, and corroborate that officials of the Popular Financial Society are duly accredited and meet the requirements established in applicable norms;

Verify the existence of adequate internal control systems and corresponding manuals, reviewing compliance with said controls and manuals, as well as the observance of sound practices in the operation and functioning of Popular Financial Societies;

VI.

Examine the internal procedures and systems of the Popular Financial Society, with special emphasis on aspects related to the credit process, risk management, and the prevention of money laundering operations;

VII.

Verify that the automated systems and computer support available to the Popular Financial Society are reliable and adequate to the characteristics of the operations it carries out;

VIII. and IX.

...

An inspection report of each visit made to a Popular Financial Society subject to auxiliary supervision, observing the minimum standards established by the Commission in the Auxiliary Supervision Guide. "

" Article 283 .- To comply with the tasks and objectives indicated by articles 280 and 281 of these provisions, the Supervisory Committee will be empowered to schedule and carry out visits of different nature or type. These visits will be the following:

Ordinary comprehensive inspection visit.- It will be understood as such that during which at least all aspects indicated by the Commission in the Auxiliary Supervision Guide and specific matters detected during Off-site Supervision and the planning of the visit, or those derived from previous visits, are reviewed. These visits will be scheduled previously considering the Level of Operations and financial situation of the Popular Financial Societies under auxiliary supervision.

II.

...

III.

Extraordinary inspection visit.- It will be understood as such that carried out outside the regular schedule of visits with the aim of reviewing determined problematic situations, verifying compliance with instructions issued by the Commission or the respective Federation. These visits will be motivated when during the auxiliary supervision of the Federations or during the direct supervision of the Commission, any exceptional risk is detected in a Popular Financial Society, understood as exceptional risk the presence of certain aspect that affects or could significantly affect the financial structure of said Popular Financial Society and the attention of complaints or reports from its administration or competent authorities.

...

Annually, the Supervisory Committee must carry out, at least, one ordinary specific visit, as well as the extraordinary visits it deems necessary, to those Popular Financial Societies over which it exercises auxiliary supervision functions. However, every 2 years an ordinary comprehensive visit must be carried out to each of said Popular Financial Societies, the carrying out of an ordinary specific visit during the year in which said visit is carried out not being mandatory.

Regarding Popular Financial Societies of recent creation, it will be mandatory for the Supervisory Committee to carry out an ordinary comprehensive visit in the first year of operations of said Popular Financial Societies.

...

Article 284.- In carrying out the inspection visits referred to in articles 280 and 281 of these provisions, the Auxiliary Supervisors designated by the Supervisory Committee for this purpose must comply, at minimum, with the rules of conduct protocol established in the Auxiliary Supervision Guide, in order to guarantee that their performance adjusts to the attributes proper to their function and that Popular Financial Societies will collaborate with Auxiliary Supervisors as indicated by the Law.

The Commission, in exercise of its supervision powers, may participate when it deems appropriate or convenient in the carrying out of the inspection visits referred to in articles 280 and 281 of these provisions, informing such determination to the corresponding Federation, and designating the officials who will integrate with the Auxiliary Supervisors of said Federation. "

" Article 288.-

...

II.

...

III.

Persons who have pending litigation with any Popular Financial Society, Federation or Confederation related to the corresponding Protection Fund;

IV.

...

Persons who perform regulation, inspection, or surveillance functions of Popular Financial Societies, Federations or Confederations; as well as spouses, concubines or concubines, and relatives by blood, affinity, or civil law up to the third degree with respect to said persons;

VI.

...

VII.

Persons who by their patrimonial relations or responsibility with respect to the Popular Financial Society, and corresponding Federation, or Confederation related to the respective Protection Fund, in the judgment of the Board of Directors of the Confederation that administers said fund, could present a conflict of interest in their performance as members of the Technical Committee in question. "

" Article 295.- Popular Financial Societies, regardless of the Level of Operations assigned to them, must pay monthly to the Confederation that administers the Protection Fund in which they participate, quotas equivalent to the twelfth part of 3 per thousand on the balances at the last day of the month of their money deposits of the month in question.

Article 296.- For the purposes of what is provided in the previous article 295, Popular Financial Societies must observe the following:

I. to III.

... "

" Article 298.- The Technical Committee must inform the respective Federation of the amount of the quotas that each Popular Financial Society participating in the Protection Fund must cover, no later than the tenth business day of the month immediately following that with respect to which payment must be made, for the purpose that said Federation makes it known to each of the corresponding Popular Financial Societies.

The Popular Financial Society must pay to the respective Confederation the monthly amount of the corresponding quota, no later than the last business day of the month immediately following that with respect to which payment must be made, provided that the amount to be covered has been made known to it in accordance with what is indicated in the previous paragraph. If not, from this latter date, late interest that had been agreed upon in the constitutive contract of the respective trust will begin to accrue.

In the event that the Federation does not inform the corresponding Popular Financial Society of the amount of the quota to be covered within the period indicated in the first paragraph of this article, the Popular Financial Society must pay no later than the last business day of the month immediately following that with respect to which payment must be made, the same amount paid with respect to the immediately preceding month.

The Federation will have a period of 10 business days from the date on which the Popular Financial Society makes the payment indicated in the previous paragraph, to inform the latter the definitive amount that it was supposed to cover, making the corresponding adjustments. In the event that the amount paid by the Popular Financial Society is greater than that which it was supposed to cover, the excess must be considered for the calculation of the quota that it is supposed to cover in the immediately following month. "

" Article 301.-

...

The Technical Committee must inform the president of the Board of Directors of the Popular Financial Societies that participate in the Protection Fund, about the resolutions agreed upon in accordance with what is indicated in the previous paragraph, sending them a copy of the respective minutes. At all times, the Technical Committee must keep said minutes available to the Board of Directors of the Popular Financial Societies that participate in the Protection Fund. "

" Article 310.- Officials of the branches or public service offices of the Popular Financial Society in question and of financial entities enabled in terms of article 307 of these provisions, will receive and validate in terms of the previous article 309, the information contained in the payment request, assign it a folio number, and issue to the Interested Party a receipt of receipt which must include said folio, the date and time of presentation of the respective request. "

" Article 326 .- Without prejudice to the obligation to carry out the sending in accordance with what is indicated in article 324 of these provisions, the R13 Series financial statements must be sent in pesos, with figures to the months of March, June, September, and December of each year, within the month immediately following that of their date. The financial statements must be delivered to the Commission in printed form, duly signed at least by the General Manager and the Regulatory Comptroller of the Federation in question. "

" Article 330 .-

With the exception of what is provided by article 331 following, Popular Financial Societies must send to the Commission the information mentioned in these provisions, through their electronic transmission using the SITI. In the event that there is no information for any report, Popular Financial Societies must carry out the empty sending, functionality that is available in said system. The user keys and passwords necessary for access to said system must be requested from the Commission, who will instruct Popular Financial Societies in their correct operation.

...

... "

" Article 332.- The Commission may open concepts and levels that are not contemplated in the series indicated in article 327 of these provisions, when in terms of applicable legislation, it authorizes a Popular Financial Society to carry out new operations, exclusively for the sending of information of said operations.

...

... "

TRANSITORY PROVISIONS

FIRST.- This Resolution will enter into force the day following its publication in the Official Journal of the Federation.

Sincerely

Mexico City, January 31, 2024. - President of the National Banking and Securities Commission, Dr. Jesús de la Fuente Rodríguez.- Rubric.

ANNEX C

NATIONAL BANKING AND SECURITIES COMMISSION

REPORT ON THE DESIGNATION OF BOARD MEMBERS, MEMBERS OF THE SURVEILLANCE BOARD OR COMMISSAR, DIRECTOR OR GENERAL MANAGER, MEMBERS OF THE SUPERVISORY COMMITTEE, REGULATORY COMPTROLLER AND LEGAL OR INTERNAL AUDITOR, AS APPLICABLE, OF THE POPULAR FINANCIAL SOCIETIES, FEDERATIONS AND CONFEDERATIONS REFERRED TO IN THE POPULAR SAVINGS AND CREDIT LAW

NAME OF THE FINANCIAL ENTITY PRESENTING THE INFORMATION

PHOTOGRAPH
PATERNAL SURNAME MATERNAL SURNAME NAME(S)
APPOINTMENT (JOB, POSITION OR COMMISSION)

Board Member

Member of the Supervisory Committee

Independent Board Member

Regulatory Comptroller

Member of the Surveillance Board

Legal or Internal Auditor

Commissar

Director or General Manager

In its case, name of the official being replaced, indicating date of resignation, removal or dismissal.

POPULAR FINANCIAL SOCIETY, FEDERATION OR CONFEDERATION THAT DESIGNATES IT AND DATE OF DESIGNATION

Date of designation:

Date of start of management:

Date of hiring:

OFFICE WHERE THE JOB, POSITION OR COMMISSION IS PERFORMED (FULL ADDRESS)

PERSONAL DATA:

TAX ID NUMBER (WITH HOMOCODE)
CURP (OPTIONAL)
DATE OF BIRTH AND AGE
RESIDENCE ADDRESS (STREET, NO., NEIGHBORHOOD, CITY, STATE AND ZIP CODE)
RESIDENCE TELEPHONE (ELECTRONIC MAIL OPTIONAL)
MARITAL STATUS
MAIDEN NAME OF SPOUSE
MARITAL REGIME
MEXICAN NATIONALITY

BY BIRTH ________ BY NATURALIZATION ___________

FOREIGN NATIONALITY INDICATE __________ MIGRATORY STATUS _____________

KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND ADMINISTRATIVE MATTERS, AS WELL AS ECONOMIC SOLVENCY AND MORAL SOLVENCY:

MAXIMUM DEGREE OF STUDIES
PROFESSION
EDUCATIONAL INSTITUTION
STUDIES CARRIED OUT
PROFESSIONAL EXPERIENCE (DETAIL THE LAST 5 YEARS, STARTING WITH CURRENT EMPLOYMENT OR ACTIVITY):

COMPANY AND POSITION FROM MONTH YEAR TO MONTH YEAR BRIEF DESCRIPTION OF FUNCTIONS

PATRIMONIAL LINKS OR RELATIONSHIPS

BOARD MEMBERS, MEMBERS OF THE SURVEILLANCE BOARD OR COMMISSAR, DIRECTOR OR GENERAL MANAGER, MEMBERS OF THE SUPERVISORY COMMITTEE, REGULATORY COMPTROLLER AND INTERNAL AUDITOR:

PATRIMONIAL LINKS WITH THE POPULAR FINANCIAL SOCIETY, FEDERATION OR CONFEDERATION

PARTNERS OR SHAREHOLDERS, BOARD MEMBERS, MEMBERS OF THE SURVEILLANCE BOARD OR COMMISSAR, WITH THE DIRECTOR OR GENERAL MANAGER OR WITH THE REGULATORY COMPTROLLER OR EXECUTIVES OF THE SAME

INVESTMENTS

COMPANY % SHAREHOLDING

CREDITS

GRANTOR TYPE OF CREDIT

CREDIT HISTORY

Overdue debts YES ____ NO _____ Has generated losses to third parties YES____ NO______ Abusive behaviors in credit restructuring YES _____ NO_____

OBSERVATIONS

HONORABILITY

BOARD MEMBERS, MEMBERS OF THE SURVEILLANCE BOARD OR COMMISSAR, DIRECTOR OR GENERAL MANAGER, MEMBERS OF THE SUPERVISORY COMMITTEE AND LEGAL OR INTERNAL AUDITOR

Convicted by final judgment for any crime YES___ NO_____. In its case, indicate which

Disqualified or suspended from exercising commerce or any position, commission or employment in public service, in the Mexican Financial System or in the Savings and Credit System YES ____ NO_____
Pending litigation with the respective Popular Financial Society, Federation, or Confederation, YES _____

NO _____

Declared in civil or commercial bankruptcy/concursus, YES____

NO_____

Commercial or business ties with the respective Popular Financial Society or Federation, YES____

NO____

Commercial or business ties with partners, shareholders, directors, members of the supervisory board or auditor, with the director or general manager, or with the regulatory comptroller of the respective Popular Financial Society or Federation, YES____

NO_____. In such case, indicate with whom and of what type

Kinship or responsibility ties with partners, shareholders, directors, members of the supervisory board or auditor, with the director or general manager, or with the regulatory comptroller of the respective Popular Financial Society or Federation, YES____

NO_____. In such case, indicate with whom and of what type

Public office, popularly elected position, or party leadership, YES____ NO____

OBSERVATIONS

THE DATA CONTAINED HEREIN COINCIDE WITH THE INFORMATION ON FILE AT THE POPULAR FINANCIAL SOCIETY OR FEDERATION REGARDING THE PERSON IN QUESTION.

NAME AND SIGNATURE OF THE APPOINTED PERSON

NAME AND SIGNATURE OF THE REPRESENTATIVE OF THE POPULAR FINANCIAL SOCIETY OR FEDERATION

ANNEX H

NATIONAL BANKING AND SECURITIES COMMISSION

A).- REGISTER OF AFFILIATED POPULAR FINANCIAL SOCIETIES OVER WHICH AUXILIARY SUPERVISION FUNCTIONS ARE EXERCISED

DATE

GENERAL DATA

Name of the Popular Financial Society

Acronyms

Federal Taxpayer Registry (RFC)

Date of Commencement of Operations

Federation contracted for auxiliary supervision

1.1 NUMBER OF PARTNERS OR CLIENTS

Partners

Clients

1.2 NUMBER OF OFFICES

Head Office

Branch Office

Branches

Others (specify)

1.3 NUMBER OF EMPLOYEES

Employees at head office

Employees at branch offices

Employees at branches

Employees at other types of offices

1.4 SOCIAL ADDRESS

Street:

Exterior Number

Interior Number

Neighborhood

Between street

And street

City

Municipality/Delegation

Postal Code

State

Telephones

Fax

Website

PARTNERS (Only in the case of a Popular Financial Society)

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Date of incorporation into the Popular Financial Society

Participation in share capital (amount)

Participation in share capital (%)

Telephones

Fax

POPULAR SAVINGS AND CREDIT INSTITUTIONS

Director or General Manager

NATIONAL BANKING AND SECURITIES COMMISSION

DATE

COMPOSITION OF THE BOARD OF DIRECTORS: PRESIDENT, SECRETARY, DIRECTORS, AND OTHER MEMBERS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Popular Financial Society

Frequency of Board meetings

Telephones

Fax

SUPERVISORY BOARD (PRESIDENT, SECRETARY, DIRECTORS, AND OTHER MEMBERS) OR AUDITOR

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Popular Financial Society

Frequency of Board meetings

Telephones

Fax

CREDIT COMMITTEE: PRESIDENT, SECRETARY, AND OTHER MEMBERS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of start in the Popular Financial Society

Frequency of Committee meetings

Telephones

Fax

EXTERNAL AUDITOR: LAST FISCAL YEAR

6.1 FIRM

Firm

Federal Taxpayer Registry (RFC)

Date of hiring

Tax identification card

Registration in the General Administration of Federal Tax Audit

Telephones

Fax

Website

POPULAR SAVINGS AND CREDIT INSTITUTIONS

Director or General Manager

NATIONAL BANKING AND SECURITIES COMMISSION

DATE

6.2 RESPONSIBLE PERSON

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Professional license number

Telephones

Fax

OFFICIALS: DIRECTOR OR GENERAL MANAGER AND FIRST-LEVEL OFFICIALS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Popular Financial Society

Telephones

Fax

Report if there is any financial, labor, or kinship link between the main partners of this Society and the partners of the Entity

BRANCH AND OFFICE MANAGEMENT IN OPERATION

8.1 BRANCH OR OFFICE

Name of the branch

Street:

Exterior Number

Interior Number

Neighborhood

Between street

And street

City

Municipality/Delegation

Postal Code

State

Telephones

Fax

8.2 BRANCH OR OFFICE MANAGER

First Name(s)

Paternal Surname

Maternal Surname

Position and date of appointment

Date of incorporation into the Popular Financial Society

POPULAR SAVINGS AND CREDIT INSTITUTIONS

Director or General Manager

NATIONAL BANKING AND SECURITIES COMMISSION

B).- REGISTER OF AFFILIATED FEDERATIONS

DATE

GENERAL DATA

Social Name of the Organization

Acronyms

Federal Taxpayer Registry (RFC)

Date of Commencement of Operations

Confederation of affiliation

1.1 NUMBER OF OFFICES

Head Office

Branch Office

1.2 OFFICE ADDRESS

Street:

Exterior Number

Interior Number

Neighborhood

Between street

And street

City

Municipality/Delegation

Postal Code

State

Telephones

Fax

Website

GENERAL ASSEMBLY OF AFFILIATES

2.1 POPULAR FINANCIAL SOCIETY

Represented Popular Financial Society

Percentage of votes represented

2.2 REPRESENTATIVE OF THE POPULAR FINANCIAL SOCIETY

First Name(s)

Paternal Surname

Maternal Surname

Frequency of assembly meetings

COMPOSITION OF THE BOARD OF DIRECTORS: PRESIDENT, SECRETARY, DIRECTORS, AND OTHER MEMBERS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Position and date of appointment

Date of incorporation into the Organization

Frequency of Board meetings

Telephones

Fax

Telephones

Fax

Website

ANNEX H

NATIONAL BANKING AND SECURITIES COMMISSION

SUPERVISORY BOARD: REGULATORY COMPTROLLER, SECRETARY, DIRECTORS, AND OTHER MEMBERS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Organization

Frequency of Board meetings

Telephones

Fax

OFFICIALS: GENERAL MANAGER AND FIRST-LEVEL OFFICIALS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Organization

Telephones

Fax

SUPERVISION COMMITTEE: MEMBERS

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Position and date of appointment

Date of incorporation into the Organization

Telephones

Fax

Report if this Supervision Committee is shared with other Federations

LEGAL AUDITOR

7.1 FIRM

Firm

Federal Taxpayer Registry (RFC)

Date of hiring

Exercises examined

Telephones

Fax

ANNEX H

NATIONAL BANKING AND SECURITIES COMMISSION

7.2 RESPONSIBLE PERSON

First Name(s)

Paternal Surname

Maternal Surname

Federal Taxpayer Registry (RFC)

Unique Population Registry Key (CURP)

Professional license number

Telephones

Fax

GENERAL DATA OF POPULAR FINANCIAL SOCIETIES OVER WHICH AUXILIARY SUPERVISION FUNCTIONS ARE EXERCISED

8.1 AFFILIATED POPULAR FINANCIAL SOCIETIES

Name of the society

Acronyms

Date of affiliation

8.2 NON-AFFILIATED POPULAR FINANCIAL SOCIETIES UNDER AUXILIARY SUPERVISION

Name of the society

Acronyms

Date of affiliation

ANNEX T

FORMAT FOR INFORMATION FOR PERSONS WHO INTEND TO PARTICIPATE IN THE SHARE CAPITAL OF A POPULAR FINANCIAL SOCIETY OR PRETEND TO CONSTITUTE THEMSELVES AS CREDITORS WITH GUARANTEE REGARDING THE PAID-IN SHARE CAPITAL OF A POPULAR FINANCIAL SOCIETY

Name or possible name of the society.

Date of preparation (dd/mm/yyyy).

This information is part of the application submitted to the National Banking and Securities Commission, its content is confidential and will be subject to review and verification.

Filling Instructions.

This format must be duly filled out by:

a) Persons who, within the application process for authorization to organize and operate as Popular Financial Societies under the terms provided for in article 44 of the Popular Savings and Credit Law, intend to subscribe to more than two percent of the paid-in ordinary share capital of the said society.

b) Persons who intend to obtain authorization to acquire directly or indirectly through one or more simultaneous or successive operations, more than five percent of shares representing the paid-in ordinary share capital of a Popular Financial Society.

c) Persons who intend to constitute themselves as creditors with guarantee regarding five percent or more of shares representing the paid-in ordinary share capital of a Popular Financial Society.

d) Each of the members of a group of persons who, collectively, intend to obtain more than 20% or control of a Popular Financial Society.

No blank spaces should be left. In all cases, mention: None, No, I do not have, Not applicable.

All required names and data must be expressed in full (e.g., persons with two first names).

SECTION 1

PERSONAL IDENTIFICATION DATA

NATURAL PERSONS

First Name(s).

Paternal Surname.

Maternal Surname.

Nationality.

RFC (with homoclave).

CURP.

Address for hearing and receiving notifications

Street and exterior and/or interior number.

Neighborhood.

Delegation or Municipality.

Federal Entity.

Postal Code.

Country.

Marital status.

Name of spouse, concubine or concubinary, as well as economic dependents.

Name of relatives in ascending and descending line up to the first degree.

IDENTIFICATION DATA

LEGAL ENTITIES, TRUSTS OR INVESTMENT VEHICLES

Name or trade name.

Main activity.

Nationality.

RFC (with homoclave).

Date of constitution.

Name of the general director or legal representative.

Profession of the general director or legal representative.

Work background of the general director or legal representative.

Address for hearing and receiving notifications.

Street and exterior and/or interior number.

Neighborhood.

Postal Code.

Delegation or Municipality.

Federal Entity.

Country.

Name of shareholders or persons who participate with 10% or more of the share capital of the legal entity, or of the trust or investment vehicle.

Shareholder

(%)

*In the case of legal entities, trusts, or other investment vehicles, the direct and indirect participations of natural persons in the capital of these must be related and broken down in a manner that allows the identification of the natural persons who are the ultimate beneficiaries of such participations.

According to statutes, can it invest in societies?

Yes ______

No _____

Has the investment in question been approved by its board of directors?

Yes ______

No _____

Does it have or have had investment in financial entities?

Yes ______

No _____

Specify:

___ % equity.

Name: __________________________

SECTION 2

PARTICIPATION OF THE PERSON IN THE POPULAR FINANCIAL SOCIETY

Shareholder.

___ % current shareholding.

___ % shareholding after acquisition.

Position (if applicable).

President of the board of directors.

Proprietary Director.

Independent:

Yes

Alternate Director.

Independent:

Yes

Secretary of the board of directors.

General Director.

Legal Director.

Finance Director.

Commercial Director.

Other(s).

Specify:

SECTION 3

FINANCIAL RELATIONSHIP

a) Assets and rights.

AMOUNT

(thousands of pesos)

1.- Real estate of the applicant, their spouse, concubine or concubinary, as well as their economic dependents.

Total:

2.- Movable property (including motor vehicles, aircraft, and vessels) of the applicant, their spouse, concubine or concubinary, as well as their economic dependents.

Total:

3.- Balances in bank accounts of national or foreign financial entities (including deposits and debt securities).

Total:

4.- Others, including investments and other types of securities in the share capital of financial entities or legal entities with profit-making purposes, national or foreign.

4.1.- Specify the name of the financial entity or legal entity:

4.2.- Specify the percentage of shareholding: _______.

Total:

5.- Share participation in the share capital of national or foreign financial entities or legal entities of the applicant, their spouse, concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

Total:

6.- Sponsorships, courtesies, and donations received by the applicant, their spouse or concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

Total:

7.- Total assets and rights (gross wealth).

b) Debts and obligations.

8.- Mortgages, financial obligations, and loans of the applicant, their spouse, concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

Total:

9.- Others, including economic and financial interests.

Total:

10.- Total debts and obligations.

11.- Wealth (Subtract 10 from 7).

12.- Guarantees and sureties granted.

13.- Insurance policies.

14.- Total net income of the applicant.

Amount

(thousands of pesos)

Main source(s) of income

Last year 20_ _.

Penultimate year 20_ _.

Antepenultimate year 20_ _.

15.- Total net income of the spouse, concubine or concubinary and economic dependents of the applicant.

Amount

(thousands of pesos)

Main source(s) of income

Last year 20_ _.

Penultimate year 20_ _

Antepenultimate year 20_ _.

16.- Comments and clarifications.

SECTION 4

ORIGIN OF RESOURCES 2

Source

Entity or person

Exact amount to contribute to share capital, price of the shares or amount of the obligation for which guarantee is received, as the case may be

(%)

Own resources. Specify:

N/A

Others. Specify: (indicate if they come from loans granted by national or foreign financial entities).

Total resources:

100 %

Comments and clarifications.

2 / In the case of those persons who intend to constitute themselves as creditors with guarantee regarding ten percent or more of shares representing the paid-in ordinary share capital of a Popular Financial Society, the origin of the resources subject to the guaranteed obligation must be indicated.

SECTION 5

POSITIONS OR ACTIVITIES INFORMATION (NATURAL PERSONS)

1.- Positions and offices held in public or private entities by the applicant, their spouse, concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

2.- Professional or business activities carried out by the applicant, their spouse, concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

3.- Honorary positions and offices held by the applicant.

4.- Participation in councils and philanthropic activities of the applicant, their spouse, concubine or concubinary, as well as their economic dependents and relatives by blood, affinity, or civil law up to the first degree.

SECTION 6

ADDITIONAL INFORMATION

If you consider that there is any other relevant information not contemplated in the previous sections, you must list the information and comment in the following box.

Section

Information

SECTION 7

DECLARATIONS AND SIGNATURES

By this document, the undersigned authorizes the National Banking and Securities Commission, regarding the information provided here, to:

a) Verify it as deemed appropriate, as well as to obtain from any other authority deemed convenient information about me, in connection with the authorization application submitted to said Commission.

b) Share it on a confidential basis with the National Insurance and Surety Commission, the National Retirement Savings System Commission, the Bank of Mexico, the Tax Administration System, the Attorney General's Office and other authorities, for the exclusive fulfillment of their functions.

I confirm that I have carefully read this format and that I understand its content and legal implications. I understand that providing false data will be grounds for exclusion of the undersigned, without prejudice to criminal penalties or legal sanctions that may apply depending on the case.

I DECLARE UNDER OATH THAT THE DATA CONTAINED IN THIS DECLARATION ARE TRUE.

Signature of the person or legal representative

Name

Date

SECTION 8

DOCUMENTS THAT MUST ACCOMPANY THE APPLICATION

NATURAL PERSONS:

Copy of valid official identification (voter ID or valid passport and in the case of foreign nationals, migration form or passport).

In such case, copy of the tax identification card.

Copy of the Unique Population Registry Key (CURP).

Copy of the professional license or certificate of studies or of the document that accredits the highest degree of studies achieved.

Financial situation of the last three years.

Report prepared by legal entities that provide auditing or business research services of recognized prestige, in the judgment of the National Banking and Securities Commission, on the veracity of the statements regarding the origin of the resources that make up the person's wealth, for which the respective documentary support must be held in view. Likewise, documentary evidence related to the said origin of resources must be attached to the authorization application.

Copy of the contract for the provision of auditing or business research services that the applicant has closed with the legal entity referred to in the previous paragraph, which contains the terms and conditions agreed between the parties for the preparation of the report contained in the previous paragraph, regarding which the National Banking and Securities Commission may require modifications.

Copy of annual tax returns for the last three fiscal years.

LEGAL ENTITIES:

Certified copy of the current social statutes.

Copy of the tax identification card.

Authenticated copy by the sole administrator or by the secretary of the board of directors, of the annual audited financial statements and of the external auditor's report, if obliged to do so, approved by its administrative body for the last three fiscal years, or those corresponding in accordance with the date of their constitution.

In such case, authenticated copy by the secretary of the board of directors of the resolution of the administrative body that approves the subscription and payment of the shares of the Popular Financial Society to be constituted or in which it is intended to participate.

Financial statements of the last three years or those corresponding in accordance with the date of their constitution.

Copy of annual tax returns for the last three fiscal years.

In the case of legal entities that are not obliged to audit their financial statements in terms of the applicable provisions, a report prepared by legal entities that provide services of auditing or business research of recognized prestige, in the judgment of the National Banking and Securities Commission, on the veracity of the statements regarding the origin of the resources that make up the wealth of the person, for which the respective documentary support must be held in view. Likewise, it must be attached to the authorization application documentary evidence related to the said origin of resources.

ANNEX U

PROTEST LETTER FORMATS FOR PERSONS WHO INTEND TO PARTICIPATE IN THE PAID-IN ORDINARY SHARE CAPITAL OF A POPULAR FINANCIAL SOCIETY OR PRETEND to constitute themselves as creditors with guarantee regarding the paid-in ordinary share capital OF A POPULAR FINANCIAL SOCIETY

PERSONS WITHIN THE APPLICATION PROCESS FOR AUTHORIZATION FOR THE ORGANIZATION AND OPERATION OF POPULAR FINANCIAL SOCIETIES WHO INTEND TO SUBSCRIBE MORE THAN TWO PERCENT OF THE PAID-IN ORDINARY SHARE CAPITAL OF THAT SOCIETY

PROTEST LETTER FORMAT FOR NATURAL PERSONS

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

The undersigned, ( name of the person signing ), by my own right and with the object of providing the information that may be necessary in relation to the authorization application [to be submitted] submitted to that National Banking and Securities Commission for the organization and functioning of the Popular Financial Society to be named ____________ I declare under oath as follows:

That I have a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and I am current in the fulfillment of my credit obligations, including in the case of loans that have been subject to restructuring. Attached hereto, please find the report

special credit report from the undersigned, in which that Commission may verify that there is no non-compliance with my credit obligations, or if there is any prevention key in this regard, it can be appreciated from the report itself:

The existence of a favorable resolution for the debtor regarding the challenge of the record in question, due to errors attributable to the users of the credit information societies that are financial entities subject to the supervision of the National Banking and Securities Commission;

The existence of payment of overdue debts as of the date of the inquiry and evidence of sustained payment over a period of 1 year;

Payment of losses caused to a financial entity, regardless of the amount, voluntarily promoted by the accredited party, or

The existence of favorable judicial resolutions for the accredited parties, in litigation with the creditors.

I also declare that I do not have and have not had control, nor do I exercise or have exercised command power over an issuing company that has failed to meet its debt securities payment obligations in the securities market.

II.

That I have not been and am not subject to criminal proceedings for intentional crimes punishable by imprisonment of more than one year, and that, if I had been, this concluded with an acquittal.

III.

That I have not been subject to administrative investigation or inquiry proceedings before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or from other countries, or that if I had been, these concluded with a final and definitive resolution or agreement/convention in which my exoneration was expressly determined.

IV.

That I have not been declared in civil or commercial bankruptcy, or that even if I had been, it was terminated due to the causes indicated in fractions I, II, or V of article 262 of the Commercial Bankruptcy Law or, in the case of civil bankruptcy, by having paid creditors in full or entered into an agreement with them, in accordance with local laws.

That I am or have been a subject or party in proceedings before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, even in other countries, individually and, where applicable, in my capacity as legal representative, councilor, official, employee, or agent of any legal entity, which are indicated below: (1)

Type of procedure Body before which the procedure is carried out Capacity in which I intervened Status of the procedure, including start date and, where applicable, conclusion Sense of the final resolution, where applicable

VI.

That I have not been a shareholder, councilor, auditor, general director, or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission, have denied the concession, authorization, or registration, nor has authorization been denied to me to acquire shares representing social capital in societies supervised by said National Commissions.

VII.

That I have not been a shareholder, councilor, auditor, or relevant executive in a financial entity whose concession or authorization has been revoked, or registration canceled, nor has authorization been denied to me to acquire shares representing social capital of societies that enjoy the concession, authorization, or registration of the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission.

The undersigned hereby authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies, the Bank Insurance Protection Institute, and any other competent authority, the truthfulness of the declarations contained in this document, regarding any type of operations, in terms and with the breadth referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law, and other related provisions that apply.

Likewise, I authorize said Commission to, during the time I serve as a shareholder of the popular financial society in question or maintain shares representing its social capital in guarantee, if said Commission learns by any means that I no longer meet the conditions of fractions I to IV and VI and VII above, or has news that I am in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose of the National Banking and Securities Commission having elements of judgment to evaluate the honorability and satisfactory credit and business history of the undersigned and to determine, where applicable, in the exercise of the discretionary power conferred by articles 9 and 10 of the Popular Savings and Credit Law on that authority, whether it is prudent and opportune for me to participate as a shareholder in the paid-in ordinary capital of the Popular Financial Society to be named ___________ with the proposed shareholding percentages [to be proposed] in the authorization request we are submitting.

Sincerely,

(Name and signature of the interested party)

Filling Instructions:

Fill in all blank spaces and provide the information indicated in parentheses, as appropriate.

Attach the credit information report, with the character of special credit report in terms of the Law to Regulate Credit Information Societies. In case the persons have not resided in national territory during a period of six years prior to the date of the authorization request, the equivalent document to the credit information report issued in their country of residence must be presented. The referred documents must have an issuance date no more than three months prior to the date of such request.

In the event that the interested party is unable to make any of the declarations referred to in fractions I to IV of this letter, they must express this circumstance in the corresponding numeral, detailing the facts, acts, and reasons that prevent them or for which they do not fall under the referred conditions.

In case the person has caused loss, damage, or financial detriment, directly or through an intermediary, to financial entities due to non-compliance with their obligations or due to discounts, forgiveness, or discounts received regarding credits, unless these were under general programs implemented by the financial entities themselves or the Federal Government, the interested party must declare this situation, indicating the terms and characteristics of the credit in question, with indication of the lending entity, as well as a detailed description of the circumstances under which the loss, damage, or financial detriment occurred.

For the purposes of the above, it will be understood that a natural person acted through the interposition of a legal entity when the former has or has had control of the latter, or when it exercises or has exercised command power over the society or association in question.

In case the person has caused loss, damage, or financial detriment to issuers in the securities market in which they exercise or have exercised control or have or have had command power, due to non-compliance with payment obligations contracted with them, the interested party must declare this situation, indicating the terms and characteristics of the operation in question, with indication of the issuing company, as well as a detailed description of the circumstances under which the loss, damage, or financial detriment occurred.

In case the person has been a shareholder, councilor, auditor, general director, or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission, have denied the concession, authorization, registration; or their concession or authorization has been revoked, or registration canceled, or authorization to acquire shares representing social capital of said legal entities has been denied, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization, registration, or authorization to acquire shares representing social capital was revoked, canceled, or denied.

Accompany a document issued by a legal entity of recognized prestige in the judgment of the National Banking and Securities Commission, which provides legal services and in which the information indicated in the previous fraction V is stated, noting that it had the supporting documentation for it, in case a procedure was declared.

Attach a copy of the legal services contract that the applicant has entered into with the legal entity referred to in the previous numeral, which contains the terms and conditions agreed upon by the parties for the issuance of the document contained in the previous numeral, regarding which the National Banking and Securities Commission may require modifications.

Attach their curriculum vitae in which the reasons or causes for the termination of the labor relationships presented in that information are detailed.

Attach the registry data report issued by the Attorney General's Office of the Republic or the General Prosecutor's Office that replaces it, as well as the criminal record letter issued by the Justice Prosecutor's Office or the State Prosecutor's Office of the place of residence and the State where the main business seat is located. In the case of persons residing in Mexico City, the criminal record letter will be the one issued by the Ministry of the Interior through the National Security Commission, and for persons who do not reside or have not resided in national territory for a period greater than three months, in substitution of the aforementioned report and letter, they must present the equivalent documents to those previously mentioned, issued in their country of residence. In the event that, to process the documents referred to in this numeral, the interested parties require a formal petition issued by the Commission, they must request it in writing from the Commission itself.

B. FORMAT OF PROTEST LETTER FOR LEGAL ENTITIES

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

(Denomination or corporate name of the legal entity), through its representative (name of the legal representative), personality accredited through power contained in (data of the deed and its registration in the Public Commerce Registry), declares under oath and with the object of providing the information that may be necessary in relation to the authorization request presented [to be presented] before that National Banking and Securities Commission for the organization and functioning of the Popular Financial Society to be named ____________ the following:

That it enjoys a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and is up to date in the fulfillment of its credit obligations, including regarding credits that have been subject to restructuring. Attached hereto, please find the special credit report in which that Commission may verify that there is no non-compliance with its credit obligations, or if there is any prevention key in this regard, it can be appreciated from the report itself:

The existence of payment of overdue debts as of the date of the inquiry and evidence of sustained payment over a period of 1 year;

Payment of losses caused to a financial entity, regardless of the amount, voluntarily promoted by the accredited party, or

The existence of favorable judicial resolutions for the accredited parties, in litigation with the creditors.

We also declare that our represented party has not failed to meet its debt securities payment obligations in the securities market, nor does it exercise or has exercised command power over an issuing company that has done so.

II.

That it has not been subject to administrative investigation or inquiry proceedings before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or from other countries, or that if it had been, these concluded with a final and definitive resolution or agreement/convention in which its exoneration was expressly determined.

III.

That it has not been declared in civil or commercial bankruptcy, or that even if it had been, it was terminated due to the causes indicated in fractions I, II, or V of article 262 of the Commercial Bankruptcy Law, or, in the case of civil bankruptcy, by having paid creditors in full or entered into an agreement with them, in accordance with local laws.

IV.

That it is or has been a subject or party in proceedings before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, which are indicated below: (2)

That it has not been a shareholder of a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission, have denied the concession, authorization, or registration.

VI.

That it has not been a shareholder of a financial entity whose concession, authorization, or registration has been revoked by the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission.

The undersigned on behalf of its represented party authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies, the Bank Insurance Protection Institute, and any competent authority, the truthfulness of the declarations contained in this document, regarding any type of operations, in terms and with the breadth referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law, and other related provisions that apply.

Likewise, I authorize said Commission to, during the time my represented party serves as a shareholder of the popular financial society in question or maintains shares representing its social capital in guarantee, if said Commission learns by any means that it no longer meets the conditions of fractions I to III and V and VI above, or has news that it is in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose of that National Banking and Securities Commission having elements of judgment to evaluate the honorability and satisfactory credit and business history of my represented party and to determine, where applicable, in the exercise of the discretionary power conferred by articles 9 and 10 of the Popular Savings and Credit Law on that authority, whether it is prudent and opportune for it to participate as a shareholder in the paid-in ordinary capital of the Popular Financial Society to be named ___________ with the proposed shareholding percentages [to be proposed] in the authorization request we are submitting.

Sincerely,

(Name and signature of the legal representative)

(Denomination or corporate name of the legal entity)

Filling Instructions:

Fill in all blank spaces and provide the information indicated in parentheses, as appropriate.

Attach the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, with an issuance date no more than three months prior to the date of request.

In the event that the interested party is unable to make any of the declarations referred to in fractions I to III of this letter, they must express this circumstance in the corresponding numeral, detailing the facts, acts, and reasons that prevent them or for which they do not fall under the referred conditions.

For the purposes of the above, it will be understood that a legal entity acted through the interposition of another legal entity when the former has or has had control of the latter, or when it exercises or has exercised command power over the society or association in question.

In case the person has caused loss, damage, or financial detriment to issuing companies in the securities market in which they exercise or have exercised control or have or have had command power, due to non-compliance with payment obligations contracted with them, the interested party must declare this situation, indicating the terms and characteristics of the operation in question, with indication of the issuing company, as well as a detailed description of the circumstances under which the loss, damage, or financial detriment occurred.

In case the person has been a shareholder in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission have denied the concession, authorization, or registration, or their concession has been revoked, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization, or registration was revoked or denied.

Accompany a document issued by a legal entity of recognized prestige in the judgment of the National Banking and Securities Commission, which provides legal services and in which the information indicated in the previous fraction IV is stated, noting that it had the supporting documentation for it, in case a procedure was declared.

II.

PERSONS SEEKING TO OBTAIN AUTHORIZATION TO ACQUIRE DIRECTLY OR INDIRECTLY MORE THAN FIVE PERCENT OF SHARES REPRESENTING THE PAID-IN ORDINARY CAPITAL OF A POPULAR FINANCIAL SOCIETY

FORMAT OF PROTEST LETTER FOR NATURAL PERSONS

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

The undersigned, (name of the person signing), by my own right and with the object of providing the information that may be necessary in relation to the authorization request presented [to be presented] before that National Banking and Securities Commission to acquire directly or indirectly more than five percent of shares representing the paid-in ordinary capital of the Popular Financial Society named ____________, declare under oath the following:

That I enjoy a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and I am up to date in the fulfillment of my credit obligations and, including regarding credits that have been subject to restructuring. Attached hereto, please find the special credit report from the undersigned, in which that Commission may verify that there is no non-compliance with my credit obligations, or if there is any prevention key in this regard, it can be appreciated from the report itself:

The existence of payment of overdue debts as of the date of the inquiry and evidence of sustained payment over a period of 1 year;

Payment of losses caused to a financial entity, regardless of the amount, promoted voluntarily by the applicant, or

The existence of judicial resolutions favorable to the applicants, regarding litigation with

creditors.

I also declare that I do not have nor have had control, nor do I exercise nor have I exercised command power over an issuing company that has failed to meet its debt securities payment obligations in the securities market.

II.

That I am not nor have been subject to criminal proceedings for intentional crimes punishable with corporal imprisonment of more than one year, and that, if I have been so, this concluded with an acquittal verdict.

III.

That I have not been subject to administrative investigation or inquiry procedures before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or of other countries, or that, having been so, these concluded with a final and definitive resolution or agreement/convention in which my exoneration was expressly determined.

IV.

That I have not been declared in civil or commercial bankruptcy, or that even if I had been, it was terminated due to the causes indicated in fractions I, II, or V of article 262 of the Commercial Bankruptcy Law, or, in the case of civil bankruptcy, by having paid creditors in full or entered into an agreement with them, in accordance with local laws.

That I am or have been a subject or party in processes before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, even in other countries, individually and, where applicable, in my capacity as legal representative, advisor, official, employee, or commissioner of some legal entity, which are indicated below: (3)

Type of procedure Body before whom the procedure is carried out Capacity with which I intervened Status of the procedure, including start date and, if applicable, conclusion Sense of the definitive resolution, if applicable

VI.

That I have not been a shareholder, advisor, auditor, general director, or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission, have denied the concession, authorization, or registration, nor has authorization been denied to me to acquire shares representing social capital of companies supervised by said National Commissions.

VII.

That I have not been a shareholder, advisor, auditor, or relevant executive in a financial entity whose concession or authorization has been revoked, or registration cancelled, nor has authorization been denied to me to acquire shares representing social capital of companies that enjoy the concession, authorization, or registration of the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission.

The undersigned hereby authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies, the Bank Savings Protection Institute, and any competent authority, the truthfulness of the declarations contained in this writing, regarding any type of operations, in terms and with the scope referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law, and other related provisions that apply.

Likewise, I authorize said Commission to, during the time that I serve as a shareholder of the popular financial society in question or maintain in guarantee shares representing its social capital, in case said Commission learns by any means that I ceased to be in the situations described in fractions I to IV and VI and VII above, or has news that I am in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose that the National Banking and Securities Commission has elements of judgment to evaluate the honorability and satisfactory credit and business history of the undersigned and to determine, if applicable, in exercise of the discretionary power conferred upon that authority by article 44 of the Popular Savings and Credit Law, whether it is prudent and opportune to directly or indirectly acquire more than five percent of shares representing the paid-in ordinary social capital of the Popular Financial Society named ____________, with the proposed [to be proposed] shareholding percentages in the authorization application we are submitting.

Sincerely,

(Name and signature of the interested party)

Filling Instructions:

Fill in the blanks and provide the information indicated in parentheses, as appropriate.

Attach the credit information report, with the character of special credit report in terms of the Law to Regulate Credit Information Societies. In case persons have not resided in national territory during a period of six years prior to the date of the authorization request, the equivalent document to the credit information report issued in their country of residence must be presented. The referenced documents must have an issuance date not older than three months prior to the date of such request.

In the event that the interested party is unable to make any of the declarations referred to in fractions I to IV of this letter, they must express in the corresponding numeral this circumstance, detailing the facts, acts, and reasons that prevent them or why they do not fit the referred situations.

In case the person has caused loss, damage, or patrimonial detriment, directly or through an intermediary person, to the detriment of financial entities due to non-compliance with obligations at their charge or with discounts, forgiveness, or reductions received regarding credits, unless these were under general programs implemented by the financial entities themselves or the Federal Government, the interested party must declare this situation, indicating the terms and characteristics of the credit in question, with indication of the accrediting entity, as well as a detailed description of the circumstances under which the loss, damage, or patrimonial detriment occurred.

For the purposes of the foregoing, it will be understood that a natural person acted through the interposition of a legal entity when the former has or has had control of the latter, or when it exercises or has exercised command power with respect to the society or association in question.

In case the person has caused loss, damage, or patrimonial detriment to the detriment of issuing societies in the securities market in which they exercise or have exercised control or have or have had command power, due to non-compliance with payment obligations contracted with these, the interested party must declare this situation, indicating the terms and characteristics of the operation in question, with indication of the issuing society, as well as a detailed description of the circumstances under which the loss, damage, or patrimonial detriment occurred.

In case the person has been a shareholder, advisor, auditor, general director, or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission, have denied the concession, authorization, registration; or their concession or authorization has been revoked, or registration cancelled, or authorization to acquire shares representing social capital has been denied, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization, registration, or authorization to acquire shares representing social capital was revoked, cancelled, or denied.

Accompany a document issued by a legal entity of recognized prestige judged by the National Banking and Securities Commission, which provides legal services and in which the information indicated in fraction V above is stated, noting that it had the supporting documentation for it, in case a procedure was declared.

Copy of the legal services contract that the applicant has celebrated with the legal entity referred to in the previous numeral, which contains the terms and conditions agreed between the parties for the issuance of the document contained in the previous numeral, regarding which the National Banking and Securities Commission may require modifications.

Attach your curriculum vitae in which the motives or causes for the termination of labor relationships presented in said information are detailed.

Attach the registry data report issued by the Attorney General's Office of the Republic or the General Prosecutor's Office that replaces it, as well as the certificate of no criminal records issued by the Justice Prosecutor's Office or the State Prosecutor's Office of the place of residence and of the State where the main business seat is located. In case of persons residing in Mexico City, the certificate of no criminal records will be the one issued by the Ministry of Interior through the National Security Commission, and for persons who do not reside or have not resided in national territory for a period greater than three months, in substitution of the aforementioned report and letter, they must present the equivalent documents to those previously mentioned, issued in their country of residence. In the event that, to process the documents referred to in this numeral, the interested persons require a formal petition issued by the Commission, they must request it in writing from the Commission itself.

AFFIDAVIT LETTER FORMAT FOR LEGAL ENTITIES

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

( Denomination or trade name of the legal entity ), through its representative ( name of the legal representative ), personality accredited through power of attorney contained in ( data of the deed and its inscription in the Public Registry of Commerce ), declares under oath and with the object of providing the information that is necessary in relation to the authorization request presented [to presented] before that National Banking and Securities Commission to acquire directly or indirectly more than five percent of shares representing the paid-in ordinary social capital of the Popular Financial Society denominated____________, the following:

That it enjoys a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and is up to date in the fulfillment of its credit obligations, including regarding credits that have been subject to restructuring. Attached hereto, please find the special credit report in which that Commission can verify that there is no non-compliance whatsoever with its credit obligations, or that if there is any prevention key in this regard, from the report itself it can be appreciated:

The existence of a favorable resolution for the debtor due to the challenge of the record in question, due to errors attributable to users of credit information societies that are financial entities subject to the supervision of the National Banking and Securities Commission;

The existence of payment of overdue debts as of the date of the inquiry and evidence of sustained payment over a period of 1 year;

Payment of losses caused to a financial entity, regardless of the amount, promoted voluntarily by the applicant, or

The existence of judicial resolutions favorable to the applicants, regarding litigation with

creditors.

Likewise, we declare that our represented party has not failed to meet its debt securities payment obligations in the securities market, nor does it exercise nor has it exercised command power over an issuing company that has done so.

II.

That it has not been subject to administrative investigation or inquiry procedures before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or of other countries, or that, having been so, these concluded with a final and definitive resolution or agreement/convention in which its exoneration was expressly determined.

III.

IV.

That it is or has been a subject or party in processes before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, which are indicated below: (4)

VI.

The undersigned on behalf of its represented party authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies, and any competent authority, the truthfulness of the declarations contained in this writing, regarding any type of operations, in terms and with the scope referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law, and other related provisions that apply.

Likewise, I authorize said Commission to, during the time that my represented party serves as a shareholder of the popular financial society in question or maintains in guarantee shares representing its social capital, in case said Commission learns by any means that I ceased to be in the situations described in fractions I to III and V and VI above, or has news that it is in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose that the National Banking and Securities Commission has elements of judgment to evaluate the honorability and satisfactory credit and business history of my represented party and to determine, if applicable, in exercise of the discretionary power conferred upon that authority by article 44 of the Popular Savings and Credit Law, whether it is prudent and opportune to directly or indirectly acquire more than five percent of shares representing the paid-in ordinary social capital of the Popular Financial Society named ____________, with the proposed [to be proposed] shareholding percentages in the authorization application we are submitting.

Sincerely,

(Name and signature of the legal representative)

(Denomination or trade name of the legal entity)

Filling Instructions:

Fill in the blanks and provide the information indicated in parentheses, as appropriate.

Attach the credit information report, with the character of special credit report in terms of the Law to Regulate Credit Information Societies, with an issuance date not older than three months prior to the date of request.

In the event that the interested party is unable to make any of the declarations referred to in fractions I to III of this letter, they must express in the corresponding numeral this circumstance, detailing the facts, acts, and reasons that prevent them or why they do not fit the referred situations.

For the purposes of the foregoing, it will be understood that a legal entity acted through the interposition of another legal entity when the first has or has had control of the second, or when it exercises or has exercised command power with respect to the society or association in question.

In case the person has been a shareholder in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Bonds Commission, or the National Retirement Savings System Commission have denied the concession, authorization, or registration, or their concession or authorization has been revoked, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization, or registration was revoked or denied.

Accompany a document issued by a legal entity of recognized prestige judged by the National Banking and Securities Commission, which provides legal services and in which the information indicated in fraction IV above is stated, noting that it had the supporting documentation for it, in case a procedure was declared.

Attach a copy of the legal services contract that the applicant has celebrated with the legal entity referred to in the previous numeral, which contains the terms and conditions agreed between the parties for the issuance of the document contained in the previous numeral, regarding which the National Banking and Securities Commission may require modifications.

III.

PERSONS WHO INTEND TO OBTAIN AUTHORIZATION TO CONSTITUTE THEMSELVES AS SECURED CREDITORS REGARDING MORE THAN FIVE PERCENT OF SHARES REPRESENTING THE PAID-IN ORDINARY SOCIAL CAPITAL OF A POPULAR FINANCIAL SOCIETY

AFFIDAVIT LETTER FORMAT FOR NATURAL PERSONS

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

The undersigned, ( name of the person signing ), by my own right and with the object of providing the information that is necessary in relation to the authorization request presented [to presented] before that National Banking and Securities Commission to constitute myself as a secured creditor on shares representing more than five percent of the paid-in ordinary social capital of a Popular Financial Society, I declare under oath the following:

That I enjoy a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and I am up to date in the fulfillment of my credit obligations, including regarding credits that have been subject to restructuring. Attached hereto, please find the special credit report of the undersigned, in which that Commission can verify that there is no non-compliance whatsoever with my credit obligations, or that if there is any prevention key in this regard, from the report itself it can be appreciated:

The existence of payment of overdue debts as of the date of the inquiry and evidence of sustained payment over a period of 1 year;

Payment of losses caused to a financial entity, regardless of the amount, promoted voluntarily by the applicant, or

The existence of judicial resolutions favorable to the applicants, regarding litigation with

creditors.

I also declare that I do not have nor have had control, nor do I exercise nor have I exercised command power

of an issuing society that has failed to meet its debt security payment obligations in the securities market.

II.

That I am not and have not been, subject to criminal proceedings for an intentional crime punishable by corporal imprisonment of more than one year and that, in the event I have been, this concluded with an acquittal.

III.

That I have not been subject to administrative inquiry or investigation proceedings before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or of other countries, or that, having been so, these concluded with a final and definitive resolution or agreement/convention in which my exoneration was expressly determined.

IV.

That I have not been declared in civil or commercial bankruptcy, or that even if I have been, this was terminated by the causes indicated in fractions I, II or V of article 262 of the Commercial Bankruptcy Law, or, in the case of civil bankruptcy, by having paid creditors in full or entered into an agreement with them, in terms of local laws.

That I am or have been a subject or party in proceedings before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, even in other countries, individually and, where applicable, in my capacity as legal representative, advisor, official, employee or agent of any legal entity, which are indicated below: (5)

Type of procedure

Body before which the procedure is conducted

Capacity in which I intervened

Status of the procedure, including start date and, where applicable, conclusion

Outcome of the definitive resolution, where applicable

VI.

That I have not been a shareholder, advisor, auditor, general director or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission, have denied the concession, authorization or registration, nor has authorization been denied to me to acquire shares representing social capital of societies supervised by said National Commissions.

VII.

That I have not been a shareholder, advisor, auditor or relevant executive in a financial entity to which the concession or authorization has been revoked, or the registration cancelled, nor has authorization been denied to me to acquire shares representing social capital of societies that enjoy the concession, authorization or registration of the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission.

The undersigned authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies, the Bank Insurance Protection Institute and any competent authority, the truthfulness of the declarations contained in this document, regarding any type of operation, in terms and with the scope referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law and others that are applicable.

Likewise, I authorize said Commission to, during the time I serve as a shareholder of the said popular financial society or, maintain in guarantee shares representing its social capital, in the event that said Commission learns by any means that I no longer meet the conditions of fractions I to IV and VI and VII above, or has news that I am in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose that that National Banking and Securities Commission has elements of judgment to evaluate the honorability and satisfactory credit and business history of the undersigned and to determine, where applicable, in the exercise of the discretionary power conferred by article 44 of the Popular Savings and Credit Law to that authority, whether it is prudent and appropriate to constitute me as a creditor with a guarantee on shares with respect to more than five percent of the paid-in ordinary social capital of the Popular Financial Society named ____________, with the proposed share percentages [to be proposed] in the authorization application we are addressing.

Sincerely,

(Name and signature of the interested party)

Filling Instructions:

Fill in the blanks and provide the information indicated in parentheses, as appropriate.

Attach the credit information report, with the character of special credit report in terms of the Law to Regulate Credit Information Societies. In the event that persons have not resided in national territory during a period of six years prior to the date of the authorization request, the equivalent document to the credit information report issued in their country of residence must be presented. The referred documents must have an issuance date no more than three months prior to the date of such request.

In the event that the interested party is not in a position to make any of the declarations referred to in fractions I to IV of this letter, they must express in the corresponding numeral this circumstance, detailing the facts, acts and reasons that prevent them or for which they do not fall under the referred conditions.

In the event that the person has caused loss, damage or financial detriment, directly or through an intermediary, to the detriment of financial entities due to the non-compliance with obligations on their part or of discounts, forgiveness or discounts received regarding credits, unless these had been under general programs implemented by the financial entities themselves or the Federal Government, the interested party must declare this situation, indicating the terms and characteristics of the credit in question, with indication of the accrediting entity, as well as a detailed description of the circumstances under which the loss, damage or financial detriment occurred.

For the purposes of the above, it will be understood that a natural person acted through the interposition of a legal entity, when the former has or has had control of the latter, or when it exercises or has exercised command power over the society or association in question.

In the event that the person has caused loss, damage or financial detriment to the detriment of issuing societies in the securities market in which they exercise or have exercised control or have or have had command power, due to non-compliance with payment obligations contracted with them, the interested party must declare this situation, indicating the terms and characteristics of the operation in question, with indication of the issuing society, as well as a detailed description of the circumstances under which the loss, damage or financial detriment occurred.

In the event that the person has been a shareholder, advisor, auditor, general director or relevant executive in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission, have denied the concession, authorization, registration; the concession or authorization has been revoked, or the registration cancelled, or authorization has been denied to acquire shares representing social capital of said legal entities, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization, registration or the authorization to acquire shares representing social capital was revoked, cancelled or denied.

Copy of the legal services contract that the applicant has entered into with the legal entity referred to in the previous numeral, which contains the terms and conditions agreed between the parties for the issuance of the document contained in the previous numeral, regarding which the National Banking and Securities Commission may require modifications.

Attach your curriculum vitae in which the reasons or causes for the termination of the labor relationships presented in that information are detailed.

Attach the registry data report issued by the Attorney General's Office of the Republic or the General Prosecutor's Office that replaces it, as well as the certificate of no criminal record issued by the State Attorney's Office or the Prosecutor's Office of the State of residence and of the State where the main business seat is located. In the case of persons residing in Mexico City, the certificate of no criminal record will be that issued by the Ministry of the Interior through the National Security Commission, and for persons who do not reside or have not resided in national territory for a period greater than three months, in substitution of the report and the letter mentioned, they must present the equivalent documents to those previously indicated, issued in the country of their residence. In the event that, to process the documents referred to in this numeral, the interested parties require a formal petition issued by the Commission, they must request it in writing from said Commission.

FORMAT OF PROTEST LETTER FOR LEGAL ENTITIES

Mexico City, on

NATIONAL BANKING AND SECURITIES COMMISSION

Present,

( Name or corporate name of the legal entity ), through its representative ( name of the legal representative ), personality accredited through power contained in ( data of the deed and its registration in the Public Commerce Registry ), declares under oath and with the object of providing the information that may be necessary in relation to the authorization request presented [to be presented] before that National Banking and Securities Commission to constitute myself as a creditor with a guarantee on shares representing more than five percent of the paid-in ordinary social capital of a Popular Financial Society, the following:

That it has a satisfactory credit history according to the credit information report with the character of special credit report in terms of the Law to Regulate Credit Information Societies, issued by the credit information society named _____, and is up to date in the fulfillment of its credit obligations, including regarding credits that have been subject to restructuring. Attached hereto, please find the aforementioned special credit report in which that Commission can verify that there is no non-compliance with its credit obligations, or that if there is any key of prevention in this regard, from the report itself it can be appreciated:

The existence of a favorable resolution for the debtor due to the challenge of the registration in question, due to errors attributable to the users of the credit information societies that are financial entities subject to the supervision of the National Banking and Securities Commission;

The existence of payment of overdue debts on the date of the consultation and evidence of sustained payment in a period of 1 year;

Payment of losses caused to a financial entity, regardless of its amount, promoted voluntarily by the accredited, or

The existence of favorable judicial resolutions for the accredited, before litigation with the creditors.

Likewise, we declare that our represented party has not failed to meet its debt security payment obligations in the securities market, nor exercises or has exercised command power of an issuing society that has done so.

II.

That it has not been subject to administrative inquiry or investigation proceedings before the National Banking and Securities Commission for violations of national or foreign financial laws, or before other Mexican supervisory and regulatory institutions of the financial system or of other countries, or that, having been so, these concluded with a final and definitive resolution or agreement/convention in which its exoneration was expressly determined.

III.

That it has not been declared in civil or commercial bankruptcy, or that even if it has been, this was terminated by the causes indicated in fractions I, II or V of article 262 of the Commercial Bankruptcy Law, or, in the case of civil bankruptcy, by having paid creditors in full or entered into an agreement with them, in terms of local laws.

IV.

That it is or has been a subject or party in proceedings before common or federal jurisdictional bodies, criminal investigations, as well as any other procedure, which are indicated below: (6)

Type of procedure

Body before which the procedure is conducted

Capacity in which I intervened

Status of the procedure, including start date and, where applicable, conclusion

Outcome of the definitive resolution, where applicable

That it has not been a shareholder of a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission, have denied the concession, authorization or registration.

VI.

That it has not been a shareholder of a financial entity to which the concession, authorization or registration has been revoked by the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission.

The undersigned on behalf of its represented party authorizes the National Banking and Securities Commission to verify, where applicable, before Mexican financial entities, credit information societies and any competent authority, the truthfulness of the declarations contained in this document, regarding any type of operation, in terms and with the scope referred to in articles 142 of the Credit Institutions Law, 192 and 295 of the Securities Market Law, 55 of the Investment Funds Law, 34 of the Popular Savings and Credit Law and others that are applicable.

Likewise, I authorize said Commission to, during the time my represented party serves as a shareholder of the said popular financial society or, maintain in guarantee shares representing its social capital, in the event that said Commission learns by any means that it no longer meets the conditions of fractions I to III and V and VI above, or has news that it is in a process before any jurisdictional body, verify and request the corresponding information.

The declarations under oath contained in this document are made for the purpose that that National Banking and Securities Commission has elements of judgment to evaluate the honorability and satisfactory credit and business history of my represented party and to determine, where applicable, in the exercise of the discretionary power conferred by article 44 of the Popular Savings and Credit Law to that authority, whether it is prudent and appropriate to constitute itself as a creditor with a guarantee on shares with respect to more than five percent of shares representing the paid-in ordinary social capital of the Popular Financial Society named ____________, with the proposed share percentages [to be proposed] in the authorization application we are addressing.

Sincerely,

(Name and signature of the legal representative)

(Name or corporate name of the legal entity)

Filling Instructions:

Fill in the blanks and provide the information indicated in parentheses, as appropriate.

Attach the credit information report, with the character of special credit report in terms of the Law to Regulate Credit Information Societies, with an issuance date no more than three months prior to the date of request.

In the event that the interested party is not in a position to make any of the declarations referred to in fractions I to III of this letter, they must express in the corresponding numeral this circumstance, detailing the facts, acts and reasons that prevent them or for which they do not fall under the referred conditions.

For the purposes of the above, it will be understood that a legal entity acted through the interposition of another legal entity, when the former has or has had control of the latter, or when it exercises or has exercised command power over the society or association in question.

In the event that the person has been a shareholder in a legal entity to which the Ministry of Finance and Public Credit, the National Banking and Securities Commission, the National Insurance and Surety Commission or the National Retirement Savings System Commission have denied the concession, authorization or registration, or the concession has been revoked, they must declare this situation, indicating a detailed description of the circumstances under which the concession, authorization or registration was revoked or denied.

Accompany a document issued by a legal entity of recognized prestige in the judgment of the National Banking and Securities Commission, which provides legal services and in which the information indicated in the previous fraction IV is stated, noting that it had the supporting documentation for it in case a procedure has been declared.

Attach a copy of the legal services contract that the applicant has entered into with the legal entity referred to in the previous numeral, which contains the terms and conditions agreed between the parties for the issuance of the document contained in the previous numeral, regarding which the National Banking and Securities Commission may require modifications.

Only for the case in which the undersigned has been subject to any process before common or federal jurisdictional tribunals, criminal investigations, as well as any other that by its relevance must be declared by the applicant. Otherwise, the fields must be filled with N/A.

Only for the case in which the legal entity has been subject to any process before common or federal jurisdictional tribunals, criminal investigations, as well as any other that by its relevance must be declared by the applicant. Otherwise, the fields must be filled with N/A.

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