Resolution No. CD-SIBOIF-622-1-ABR7-2010
Dated 07 April 2010

STANDARD FOR THE REFORM OF ARTICLES 3 AND 6 OF THE STANDARD ON PURCHASES AND SALES OF CREDIT ASSETS

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

WHEREAS

I That articles 16 and 55, numeral 4, literal b, of Law 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, empowers the Board of Directors of the Superintendency of Banks and Other Financial Institutions to issue general standards with respect to the substantial purchase and sale of loan portfolios;

II That based on the powers conferred by article 3, numeral 13, and article 10, numeral 1, of Law No. 316, Law of the Superintendency of Banks and Other Financial Institutions, reformed by Law 552, Law of Reforms to Law 316; and article 53 of Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups

In use of its powers,

HAS ISSUED

The following,

CD-SIBOIF-622-1-ABR7-2010 STANDARD FOR THE REFORM OF ARTICLES 3 AND 6 OF THE STANDARD ON PURCHASES AND SALES OF CREDIT ASSETS

FIRST: Reform articles 3 and 6 of the Standard on Purchases and Sales of Credit Assets, contained in Resolution No. CD-SIBOIF-563-1-DIC3-2008, dated 3 December 2008, which must be read as follows:

Art. 3 Purchase of credit assets.- Financial institutions may, with prior authorization of the Superintendent, purchase credit assets, provided they comply with the following provisions:

a) That the credit assets are to be acquired at a value not higher than their fair value as defined in the International Financial Reporting Standards - IFRS 18, to the satisfaction of the Superintendent;

b) That the credit assets to be acquired have not been previously sold by the purchasing financial institution to the selling entity. c) That in the case where the selling entity is a related party to the purchasing financial institution, the credit assets purchased are classified in risk category "A", to the satisfaction of the Superintendent. d) In addition to complying with the provisions of the preceding literals, they must attach to the authorization request, the following information:
1) General data of the selling entity;
2) Detail of the credit assets to be purchased including, among others: the Unique Code of the debtor: No. of
identity card for natural persons, No. RUC for legal persons, type of guarantee, balance, date of maturity, status of the debt, provision constituted, if any, and total amount;
3) Business purposes justifying the purchase;
4) Purchase price including its calculation memorandum;
5) Certification of the minute of the Board of Directors of the selling entity, stating the agreement of
sale of the asset;
6) In case the selling entity is related to the purchasing financial institution, certification
issued by the Board of Directors of the purchasing financial institution, that the classification of the portfolio to be acquired corresponds to risk category "A" in accordance with the criteria established in the regulations that regulate the matter on Credit Risk Management, issued by the Board of Directors of the Superintendency of Banks.
7) Evidence of notification to the debtors, about the sale of the credits, when required.
8) Draft purchase contract.

The purchasing financial institution authorized for the purposes set forth in this article must have under its custody the credit files of the acquired portfolio, which will be subject to the evaluation criteria established in the regulations that regulate the matter on Credit Risk Management issued by the Board of Directors of the Superintendency of Banks.

Art. 6 Substantial sales of credit assets.- In accordance with the provisions of numeral 1 of article 16 of the General Law of Banks, the substantial sale of credit assets will require prior authorization of the Superintendent. For these purposes, in addition to complying with the provisions of articles 4 and/or 5 of this standard, the following must be complied with:

a) The request for authorization to sell a substantial part of the balance of the selling entity;

b) General data of the purchasing entity;

c) Detail of the credit assets to be sold including, among others: the Unique Code of the debtor: No. of identity card for natural persons, No. RUC for legal persons, type of guarantee, balance, date of maturity, status of the debt, provision constituted, if any, and total amount;

d) Characteristics of the sale;

e) Business purposes justifying the sale;

f) Sale price including its calculation memorandum

g) Certification of the minute of the Board of Directors of the selling entity, stating the sale agreement;

h) Certification issued by the general accountant stating the percentage of credit assets to be sold;

i) In the cases that apply, draft of the public deed of sale.

SECOND: This standard enters into force from its notification, without prejudice to its publication in the Official Gazette, La Gaceta.

(f) Antenor Rosales B. (f) V. Urcuyo V. (f) Fausto Reyes (f) illegible (Silvio Moisés Casco Marenco) (f) Gabriel Pasos Lacayo (f) Antonio Morgan P. Secretary Ad hoc.

URIEL CERNA BARQUERO
Secretary Board of Directors SIBOIF