TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY

-CCIT-

FINANCIAL SYSTEM STABILITY DEPARTMENT
FINANCIAL STABILITY AND PUBLIC POLICIES MANAGEMENT

MARCH 2024

INDEX

GENERALITIES ........................................................................................................... 1
1.1 BACKGROUND ..................................................................................................... 1
1.2 LEGAL BASIS .......................................................................................................... 1
1.3 SCOPE OF APPLICATION ...................................................................................... 1
OBJECTIVE .................................................................................................................. 1
DEFINITIONS ........................................................................................................... 1
GENERAL STANDARDS ............................................................................................... 3
SPECIFIC STANDARDS .............................................................................................. 4
5.1 CCIT OPERATION APPLICATION ................................................................... 4
5.2 CONDITIONS OF CCIT OPERATIONS .................................................. 5
5.3 APPROVAL OF CCIT OPERATION APPLICATIONS ...................... 5
5.4 CCIT OPERATION GUARANTEES ............................................................ 6
5.5 TRANSFER OF SECURITIES ............................................................................ 6
5.6 DISBURSEMENT AND CANCELLATION OF CCIT OPERATIONS ............................... 7
5.7 SPECIAL CONDITIONS DURING VALIDITY ......................................... 7
5.8 MONITORING AND REPORTS ............................................................................... 8
SPECIAL PROVISIONS .................................................................................. 8
VALIDITY, DISTRIBUTION AND DISCLOSURE ........................................................... 8
MODIFICATION CONTROL TABLE .......................................................... 10
ANNEXES

1 GENERALITIES

1.1 BACKGROUND

The Central Bank of Reserve of El Salvador aims to maintain the most favorable financial conditions for the liquidity and stability of the financial system.

In February 2011, reforms to the Organic Law of the Central Bank of Reserve of El Salvador entered into force, according to Legislative Decree No. 595 of January 20, 2011, under which the Central Bank was authorized to acquire documents from loan and investment portfolios temporarily or definitively, expanding the authority to do so also with Cooperative Banks, Savings and Credit Societies, among others, under the conditions determined by the Central Bank's Board of Directors.

1.2 LEGAL BASIS

These technical standards are issued based on what is stipulated in Articles 3, letters d), e), g) and j); 23, letters g) and j); 49 letter b) and 71 of the Organic Law of the Central Bank of Reserve of El Salvador.

1.3 SCOPE OF APPLICATION

These technical standards will be applied by the Presidency, the Financial Stability and Public Policies Management, the Financial Operations Management, the International Management, the Financial Risks Management, the Compliance Office, and the Legal Management in their relations with Banks, Cooperative Banks, Savings and Credit Societies, and Federations of Savings and Credit Cooperatives regulated, arising from temporary investment portfolio purchase operations.

2 OBJECTIVE

To regulate the temporary acquisition of investment portfolio operations that the Central Bank of Reserve of El Salvador carries out with solvent subject institutions, in order to protect banking liquidity, as provided in Article 49 letter b) of the Organic Law of the Central Bank of Reserve of El Salvador, with the values determined in these technical standards.

3 DEFINITIONS

3.1 BCR: Central Bank of Reserve of El Salvador.

3.2 CCIT: Temporary Purchase of Investment Portfolio.

3.3 Board of Directors: The highest direction and administration of the BCR to which will correspond to exercise the attributions and functions entrusted to it by the Law.

3.4 International Custodian: Institution responsible for the custody and settlement of securities abroad.

3.5 GOF: Financial Operations Management.

3.6 GEFP: Financial Stability and Public Policies Management.

3.7 IGD: Deposit Guarantee Institute.

3.8 Subject Institutions: Banks, Cooperative Banks, Savings and Credit Societies, and Federations of Savings and Credit Cooperatives supervised by the Financial System Superintendence.

3.9 Solvent Subject Institutions: A subject institution will be considered solvent if it presents a ratio of at least 12% between its Equity Fund and its Risk-Weighted Assets, according to the latest Equity Fund requirement report published by the SSF on its website, or 14.5% for banks that have just started operations, according to what is established in Article 20 of the Banks Law and Article 25 of the Cooperative Banks and Savings and Credit Societies Law.

3.10 LDA/FT/FPDAM: Money Laundering and Asset Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction.

3.11 Compliance Office: Advisory department of the Central Bank of Reserve of El Salvador.

3.12 Required Equity: The amount equivalent to 12% on Risk-Weighted Assets of each subject institution, or 14.5% for banks that have just started operations, according to what is established in Article 20 of the Banks Law and Article 25 of the Cooperative Banks and Savings and Credit Societies Law.

3.13 SSF: Financial System Superintendence.

3.14 Dematerialized Value: term that applies to the value represented by means of an account entry.

4 GENERAL STANDARDS

4.1 The resources that the BCR will use to carry out CCIT operations will come from the BCR, from international or regional financial organizations, from Central Banks and other States.

4.2 A subject institution may request liquidity support for a maximum balance of up to 100% of its required equity. For this maximum, other existing liquidity assistance modalities with the BCR and assistance with resources coming from the State will also be counted.

4.3 The BCR will determine the amount and term to be granted according to compliance with the requirements contained in these standards and in accordance with resource availability.

4.4 Prior to carrying out each CCIT operation, the BCR will request the SSF to issue a report on the financial situation of the requesting bank that addresses solvency, liquidity risk, credit risk, profitability, and other relevant aspects that the SSF considers necessary for the purpose of providing liquidity assistance, including its recommendation to grant or not grant such assistance. This report will be requested by the GEFP and the SSF must send the respective response no later than the second calendar day counted from the receipt of the request.

4.5 The BCR will verify compliance with the requirements contemplated in these technical standards.

4.6 Subject institutions that wish to carry out CCIT operations must have previously signed a framework agreement with the BCR in which the bank's, cooperative bank's, savings and credit society's, or federation's disposition to provide coverages, the general identification of these, the assumption of all financial costs incurred by the BCR to carry out the operation, as well as all necessary information for the signing and monitoring of the contract will be established.

4.7 The values offered for CCIT operations must meet the characteristics described in these standards.

4.8 These operations, being of last resort, will be granted at penalized interest rates.

4.9 The subject institution may withdraw in writing at any time from the request made, which will automatically suspend the evaluation process. In this case, the GOF will carry out the corresponding calculation and debit to the subject institution's account for the value of the costs, commissions, penalties, and all those incurred or to be incurred in the future by the BCR, as a consequence of the suspension. The notification of the decision taken by the subject institution must be directed to the Presidency of the BCR with a copy to the GEFP and the SSF.

4.10 All CCIT operations imply the temporary purchase and sale of securities, which entails an obligation to repurchase them at the end of the stipulated term, for the value at which they were sold by the subject institution to the BCR, plus the repurchase price stipulated in the contract.

4.11 All CCIT operations will be carried out directly with the BCR, in accordance with the corresponding laws, and may be carried out, in their case, with national or foreign physical securities or foreign dematerialized securities.

4.12 In CCIT operations, values issued in United States Dollars by the BCR, the IGD, and foreign debt values that meet the parameters established in the BCR's International Reserves Investment Policy, valued at market prices, will be used.

5 SPECIFIC STANDARDS

5.1 CCIT OPERATION APPLICATION

5.1.1 In the event that a Subject Institution wishes to use this mechanism, it must send the request to the BCR when it is using the resources of the second tranche of its Liquidity Reserve.

5.1.2 The BCR's Compliance Office will carry out due diligence on subject institutions and any of the related counterparties in this operation. If it is identified that any of these represents a level of exposure to LDA/FT/FPDAM risk that cannot be mitigated or managed or is on lists issued by the Office of Foreign Assets Control (OFAC), lists issued by the United Nations Security Council of sanctioned persons, or public lists issued by international organizations and binding for El Salvador related to terrorism or affiliated groups, or possess a conviction or sentence against them for crimes related to LDA/FT/FPDAM; the procedures established in the Manual for the Prevention of Money and Asset Laundering and Terrorism Financing and the Proliferation of Weapons of Mass Destruction risk must be carried out.

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CENTRAL BANK OF RESERVE OF EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	FINANCIAL SYSTEM STABILITY DEPARTMENT
5.1.3. Subject institutions must present a certification signed by the legal representative of said entity based on the confirmation of the origin and destination of the CCIT funds and the application of prevention controls executed by their compliance units. The latter must be signed by the Compliance Officer of each institution.
5.1.4. Subject institutions must direct their request, according to Annex No. 1, to the Presidency of the BCR, with a copy to the GEFP and the SSF, indicating the amount and term required.
5.1.5. Subject institutions may send their request on any calendar day through a written request and to the email address asistencia_liquidez@bcr.gob.sv
5.2 CONDITIONS OF CCIT OPERATIONS
5.2.1 The price for the repurchase of securities in CCIT operations will be the financial cost (including interest rates, commitment commissions, disbursement commissions, and other commissions and surcharges) for the BCR plus 500 basis points.
5.2.2 The term of CCIT operations will be up to 30 calendar days, with a maximum of six consecutive CCIT requests.
5.2.3 To request a new CCIT operation, the subject institution must send no later than six calendar days before the expiration of the operation, the corresponding request in accordance with the format presented in Annex No. 1, except for the documentation of paragraphs 7 to 10 if there have been no changes.
5.3 APPROVAL OF CCIT OPERATION APPLICATIONS
5.3.1 Prior to the approval of the CCIT operation, the GEFP within the report to be prepared, will verify compliance with the general and specific standards listed above, in coordination with the GOF, International Management, Financial Risks Management, Compliance Office, and Legal Management.
5.3.2 The BCR's Board of Directors will decide whether to approve or not the CCIT operation request and the general conditions of the operation, taking into consideration the proposal of the GEFP which will include the opinions of the
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CENTRAL BANK OF RESERVE OF EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	FINANCIAL SYSTEM STABILITY DEPARTMENT
Legal Management, the GOF, the International Management, and the Compliance Office.
5.3.3 The secretary of the Board of Directors will communicate to the subject institution the approval or denial of the requested CCIT operation.
5.4 CCIT OPERATION GUARANTEES
5.4.1 The CCIT operation must be backed by values equivalent to an additional ten percent (10%) of the amount requested, in the case that they are foreign debt values that meet the parameters established in the BCR's International Reserves Investment Policy, and an additional five percent (5%) in the case that they are values issued by the BCR and the IGD, all valued at market prices. These values must have a maturity date later than the term of the requested CCIT operation.
5.4.2 The values received must meet the conditions to execute the operation securely, must exist and be in the name of the subject institution, and free of any type of encumbrance.
5.5 TRANSFER OF SECURITIES
5.5.1 The transfer of physical values received in CCIT operations will be made in favor of the BCR, in accordance with common law standards.
5.5.2 When the subject institution has custody of the titles, it must transfer and deliver them in the name of the BCR. The endorsement or delivery will be made at the time of signing the contract and in the case of registered securities, the entry will be made subsequently.
5.5.3 When the values to be purchased are dematerialized and foreign, the subject institution will instruct the international custodian to proceed to transfer to the BCR's international custodian the sold values, prior to the presentation of the request. The transfer of foreign values will be carried out in the jurisdiction where said values are custodied.
5.5.4 When the securities are custodied by the BCR, the subject institution must transfer them in its name whose endorsement will be made at the time of the contract.
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CENTRAL BANK OF RESERVE OF EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	FINANCIAL SYSTEM STABILITY DEPARTMENT
5.6 DISBURSEMENT AND CANCELLATION OF CCIT OPERATIONS
5.6.1 Once the request is approved by the BCR's Board of Directors, the Legal Management will proceed to review the CCIT contract and other pertinent documents. Once done, the contract will be signed by the President of the BCR or an agent with powers to do so.
5.6.2 The disbursement of resources will be carried out by the GOF by crediting the deposit account that the subject institution maintains at the BCR.
5.6.3 The day after the expiration date of the CCIT operation, the GOF will proceed to debit, through the Real-Time Gross Settlement System (LBTR), the subject institution's account, for the agreed repurchase price, the subject institution will have previously authorized this debit in the CCIT contract.
5.6.4 After the payment referred to in the previous point is made, the necessary actions will be carried out to transfer the received values to their original holder.
5.7 SPECIAL CONDITIONS DURING VALIDITY
5.7.1 The destination of the CCIT funds will be to attend deposit withdrawals and cannot carry out operations that negatively affect its liquidity, especially:
5.7.1.1. Granting new credits.
5.7.1.2. Granting additional financing to societies of its financial conglomerate or to its parent company.
5.7.1.3. Making advance payments of obligations.
5.7.1.4. Making extraordinary expenses or purchases.
5.7.1.5. Making luxurious expenses or purchases.
5.7.1.6. Granting bonuses, benefits, or additional remuneration to its employees, different from those established in the respective contracts, internal regulations, or work appointments.
5.7.1.7. Decreeing and paying dividends.
5.7.1.8. Direct or indirect payments or financing to related parties by ownership or administration with the institution.
5.7.2 The provisions established in paragraph 5.7.1 must be recorded in the CCIT contract. Likewise, in said contract, it must be included
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CENTRAL BANK OF RESERVE OF EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	FINANCIAL SYSTEM STABILITY DEPARTMENT
that for the purpose of verifying compliance with these provisions, support from the SSF may be requested. The contract must also stipulate that in case of non-compliance with the special conditions, the respective CCIT will become due.
5.8 MONITORING AND REPORTS
5.8.1 The subject institution is obliged to inform the GEFP weekly about the use of the funds, the way in which it will generate income to fulfill the operation, and that it is not failing to comply with paragraph 5.7.1 of these standards.
5.8.2 Once the CCIT operations are carried out, the GEFP will continue with the daily monitoring of the subject institution's liquidity to analyze the effect generated by the CCIT operations, for which it will prepare a weekly report to that effect.
6 SPECIAL PROVISIONS
6.1 Operational and contingency difficulties that arise in the execution of these technical standards will be resolved by the Presidency of the BCR upon proposal of the GEFP, GOF, International Management, Legal Management, Financial Risks Management, and Compliance Office, in their respective areas of competence. All of the above will be reported to the Board of Directors in the next session to the event.
6.2 Cases or situations not contemplated in these technical standards will be resolved by the Board of Directors.
7 VALIDITY, DISTRIBUTION AND DISCLOSURE
7.1 These technical standards will enter into force on March 15, two thousand twenty-four. These Standards repeal and render ineffective those approved in Session CD-10/2022 of APRIL 29, 2022.
7.2 The Board of Directors will keep a copy of these technical standards as support for the approval act and will deliver the original to the Risk and Strategic Management Management for custody. Likewise, it will deliver an electronic copy to the Financial System Stability Department and the authorization to deliver electronic copies of these technical standards to the following units:
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CENTRAL BANK OF RESERVE OF EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	FINANCIAL SYSTEM STABILITY DEPARTMENT
7.2.1 Presidency
7.2.2 Vice Presidency
7.2.3 GEFP
7.2.4 GOF
7.2.5 International Management
7.2.6 Legal Management
7.2.7 Payments and Values Department
7.2.8 Financial Department
7.2.9 International Reserves Management Department
7.2.10 Compliance Office.
7.3 The Board of Directors will deliver a copy of these technical standards to the SSF and to the subject institutions, following the already established distribution and sending control mechanisms.
7.4 The Risk and Strategic Management Management is authorized to publish these technical standards in the Administrative Instruments System, for general consultation.
7.5 These technical standards will be disclosed under the responsibility of the GEFP, through the Financial System Stability Department.
7.6 These technical standards will be published in full on the BCR's Web page, for the knowledge of the general public.
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BANCO CENTRAL DE RESERVA DE EL SALVADOR	TECHNICAL STANDARDS FOR TEMPORARY INVESTMENT PORTFOLIO PURCHASE OPERATIONS TO PROTECT BANKING LIQUIDITY	DEPARTMENT OF FINANCIAL SYSTEM STABILITY
MODIFICATION CONTROL TABLE
Revision No.	Previous Version (Section Identification and Content)	Approved Version (Section Identification and Content)	Approver and Date

ANNEXES
Annex No. 1
REQUEST FOR TEMPORARY PURCHASE OF INVESTMENT PORTFOLIO TO PROTECT BANKING LIQUIDITY

San Salvador, XX of XXX of 20XX

Licensed Professional, Doctor, Engineer

President
Central Bank of Reserve of El Salvador
Present.

Dear Licensed Professional, Doctor, Engineer:
Based on the provisions contained in Article 49, subsection b) of the Organic Law of the Central Bank of Reserve and the Technical Standards for Temporary Investment Portfolio Purchase Operations to Protect Banking Liquidity approved by the Board of Directors of the Central Bank of Reserve of El Salvador in Session No. CD-10/2022, dated April 29, 2022, and as the legal representative (or authorized agent) of the Bank (or authorized agent) , in compliance with Board Agreement No. XXX, taken in session XXXX, on XXXXXX of the month of XXXXX of 20xx, I request an amount of US$__________, (amount in letters)_________, for a term of ____ calendar days, for which I propose to temporarily transfer the securities detailed below:
1. Issuer:
2. Issuance Code:
3. Nominal Value:
4. Issuance Date:
5. Maturity Date:
6. Interest Rate:
7. Interest Payment Method:
8. Representation Method:
9. Custodian:
Attached please find:
1. Certification of the minutes of the Board Agreement stating the agreement to carry out the temporary investment portfolio purchase operation, accompanied by the credential of Board election duly registered in the Commerce Registry.
2. List of securities issued abroad proposed for sale, signed by the Legal Representative and certified by the Internal Auditor, which have been transferred to the international custodian of the BCR.
3. In the case that the securities proposed for sale are under the custody of the regulated institution, they will be presented along with the request.
4. Original certificate of legitimization of the securities proposed for sale, issued by a specialized society in the deposit and custody of securities.
5. Latest audited and published financial statements, as well as the latest published quarterly financial statements.
6. Compliance Plan specifying how the resources will be used, how the necessary income will be generated to fulfill the liquidity credit operation, and the measures that will be taken to overcome the liquidity shortage situation.
7. Copy of the Legal Representative's credential or copy of the power of attorney, certified by a notary, accrediting the signatory of the request.
8. Photocopy of DUI (Unique Identity Document) and Tax Identification Card of the legal representative or authorized agent.
9. Photocopy of NIT (Tax Identification Number) of the regulated institution.
10. Certified copy of the Deed of Incorporation and Modifications, if any, duly registered in the Commerce Registry.
11. Copy of the document informing the Superintendent about the assets to be pledged, in terms of what is stipulated in Article 57 of the Banks Law.
12. Certification issued by the legal representative regarding the confirmation of the source and destination of the funds.
13. Certification of the application of AML/CFT/FPDAM controls signed by the Compliance Officer.
14. Balance of all encumbered assets held by the entity as of the date of the day prior to the request.
15. Weekly equity fund with figures as of the last closing date of the day prior to the request, as well as a projection thereof.

I declare under oath that the securities are not pledged, seized, or encumbered and that the requested amount does not violate section 4.2 of the Technical Standards for Temporary Investment Portfolio Purchase Operations to Protect Liquidity.

Sincerely,

Legal Representative or Authorized Agent

ANNEX 2
TEMPORARY INVESTMENT PORTFOLIO PURCHASE CONTRACT

We: _______________, of _______________ years of age, _______________, from the domicile of San Salvador, with unique identity document number _______________, acting in name and representation, in my capacity as _______________ of the BANK _______________, ANONYMOUS SOCIETY, Banking Institution, from the domicile of San Salvador, with tax identification number _______________, which in this instrument may be referred to as "the Regulated Institution" or "selling party"; and _______________ of _______________ years of age, _______________, from the domicile of _______________, with unique identity document number _______________, acting in name and representation, in my capacity as _______________ of the CENTRAL BANK OF RESERVE OF EL SALVADOR, an autonomous public institution of a technical nature, from the domicile of San Salvador, with Tax Identification Number zero six one four – zero one zero seven seven four – zero zero six – two, which in this instrument may be referred to as "the Central Bank", "BCR" or "the purchasing party", by means of this instrument GRANT:

TEMPORARY INVESTMENT PORTFOLIO PURCHASE CONTRACT

I) OBJECT
The object of this contract is to regulate the liquidity assistance that the Central Bank will carry out through Temporary Investment Portfolio Acquisition operations with regulated institutions obligated to repurchase, in order to provide assistance aimed at protecting banking liquidity, in accordance with Article 49, subsection b) of the Organic Law of the Central Bank of Reserve and the Technical Standards for Temporary Investment Portfolio Purchase Operations to Protect Banking Liquidity.

II) DECLARATION OF OWNERSHIP
That the regulated institution is the owner and current possessor of the Investment Portfolio detailed below:
(Table, list, etc. of offered portfolio, or table or list of securities, as applicable) This is proven by the Statement of Account of the Securities issued by an international custodian in the case of foreign securities, with the Certificate of the Legal Representative of the regulated institution in the case of having them under own custody; or certificate issued by the Central Bank if they were custodied by it. Such certificate forms part of the annexed documents of this contract as an integral part thereof.

III) SALE OF PORTFOLIO
That for the price of _______________ DOLLARS OF THE UNITED STATES OF AMERICA, which at this act, the regulated institution declares to have received materially, it sells temporarily to the Central Bank, the Investment Portfolio described in the previous Roman numeral, whose balances are calculated as of the day _______________ of the current year.

IV) REPURCHASE PRICE OF SECURITIES
Access to this liquidity mechanism will generate a rate of --- percent (such rate will be defined at the time of authorization of the temporary portfolio sale).

V) TERM
The term of this Temporary Investment Portfolio Purchase Contract is _______________ calendar days. Its maturity will always be on a banking business day and may not be later than the maturity date of the offered securities.

VI) TRANSFER OF OWNERSHIP
The transfer of ownership of the physical securities received in Temporary Investment Portfolio Purchase operations will be made in accordance with the norms of common law (through endorsement, public deed, etc.)
If the Regulated Institution has custody of the titles, it must transfer them in the name of the Central Bank.
When the securities to be purchased are foreign, the Regulated Institution will instruct the international custodian to transfer ownership of the securities to the Central Bank; on its part, the Central Bank will send a copy of this contract to the Depositary of the securities. The Regulated Institution must inform the Financial Operations Management of the Central Bank hereinafter "the Management" about the transfer of the securities.

VII) DISBURSEMENT AND SETTLEMENT OF OPERATIONS The disbursement of resources will be carried out by the Management through a credit to the deposit account that the Regulated Institution maintains at the Central Bank and will be effective only if the Central Bank can verify that the International Custodian has transferred ownership of them to it or that the physical securities are in its possession.

VIII) ACCEPTANCE BY THE CENTRAL BANK
The representative of the Central Bank, on behalf of his principal, accepts the sale made by the regulated institution, having received at this act, the tradition of ownership, the assignment of rights, and the physical delivery of the Investment Portfolio described.

IX) REPURCHASE OBLIGATION
The regulated institution undertakes to buy back the investment portfolio sold to the Central Bank through this contract, upon completion of the term related in Roman numeral IV of this instrument, for the value at which it was sold by the regulated institution, plus the stipulated repurchase price, all of the above after verifying compliance with the obligations undertaken in this contract, which must be formalized through the corresponding legal instrument. The institution expressly agrees to proceed according to these terms.

X) GUARANTEE
This contract will be guaranteed by securities eligible by the Central Bank and that comply with the International Reserves Investment Policy managed by it; such guarantee must be backed by a document signed by the President or Executive Director and certified by the Internal and External Auditors of the Regulated Institution, which forms an integral part of this contract.

The Regulated Institution commits that the amount of the Investment Portfolio sold will be backed by securities equivalent to 10% additional to those sold, in the case of foreign debt securities that comply with the parameters established in the Central Bank's International Reserves Investment Policy, and 5% additional to those sold in the case of securities issued by the Central Bank or the Deposit Guarantee Institute.

XI) AUTHORIZATION
The regulated institution authorizes the Central Bank to debit, through the Real-Time Gross Settlement system, the agreed amount from its deposit account, which will include principal, interest, and commissions, if any, in the case that it does not make the corresponding payment for the repurchase of the Temporary Investment Portfolio, object of this contract.

XII) DEFAULT
In the event that the repurchase payment is not made by the regulated institution, or if it does not have sufficient funds in the Central Bank deposit account to effect the payment of the operation, the restitution of the sold securities will not be processed; therefore, ownership of them will be understood to be in favor of the Central Bank, under the terms established in clause V of this contract.

XIII) SPECIAL CONDITIONS
The regulated institution, during the validity of this Temporary Investment Portfolio Purchase Contract, may not liquidate or alienate the securities given as collateral, nor carry out operations that negatively affect its liquidity such as:
a) Granting new credits; b) Granting additional financing to entities within its conglomerate or to its parent company c) Making advance payments of obligations d) Making extraordinary expenses or purchases e) Making luxury expenses or purchases f) Granting bonuses, benefits, or additional remuneration to its employees, other than those established in the respective employment contracts or appointments g) Declaring and paying dividends h) Direct or indirect payments or financing to natural or legal persons related by ownership or administration with the Regulated Institution.

For the purpose of verifying compliance with the aforementioned conditions, the Central Bank may request support from the Financial System Superintendence. The carrying out of any of the aforementioned operations will be considered a breach of the contract and will give rise to the execution of the guarantees in accordance with clause X of this contract.

XIV) JURISDICTION AND APPLICABLE LAW
For the jurisdictional purposes of this contract, the parties submit to the current legislation of the Republic of El Salvador, the application of which will be carried out in accordance with the Organic Law of the Central Bank of Reserve of El Salvador and the Technical Standards for Temporary Investment Portfolio Purchase Operations to Protect Banking Liquidity. Furthermore, they designate as special domicile this city, subject to the jurisdiction of whose courts they submit.

XV) NOTIFICATIONS
All notifications regarding the execution of this contract will be valid only when made in writing to the addresses of the contracting parties, for which purposes the parties designate as the place to receive notifications the following:
a) Bank XXXX in _________________________ b) Central Bank of Reserve of El Salvador, in Juan Pablo II Building, Juan Pablo II Avenue, between 15th and 17th North Avenue, San Salvador.

IN WITNESS WHEREOF, we sign, in triplicate, this instrument, in the city of San Salvador, on the __________ day of the month of ___________ of the year two thousand ____________.

Bank XXXXX
Central Bank of Reserve of El Salvador

In the city of San Salvador, at ___________ hours on the day ___________ of ___________ of two thousand ___________. Before me, _______________, notary, from this domicile, appear, on the one hand, Mr. ______________, of ___________, ___________, from the domicile of ___________, whom I know, with unique identity document number _______________, acting in name and representation, in his capacity as _______________ of the BANK _______________, ANONYMOUS SOCIETY, banking institution, from the domicile of San Salvador, with tax identification number _______________, and on the other hand _______________, of ___________ years of age, (profession) from the domicile of ___________, whom I know, with Unique Identity Document number _______________, acting in name and representation, in his capacity as _______________, of the CENTRAL BANK OF RESERVE OF EL SALVADOR, an autonomous public institution of a technical nature, from the domicile of San Salvador, with tax identification card number zero six one four – zero one zero seven seven four – zero zero six – two, and THEY SAY: That the signatures placed at the foot of the preceding TEMPORARY INVESTMENT PORTFOLIO PURCHASE CONTRACT, are AUTHENTIC, having been placed in my presence by the appearing parties, who in the capacity in which they act recognize them as their own, as well as all obligations, conditions, stipulations contained in the instrument preceding, granted in this city, on the day of today, drafted in _________ sheets of bond paper, which I have signed and sealed, in which the appearing parties literally DECLARE: "We: __________, of __________ years of age, __________, from the domicile of San Salvador, with unique identity document number __________, acting in name and representation, in my capacity as __________ of the BANK ___, ANONYMOUS SOCIETY, Banking Institution, from the domicile of San Salvador, with tax identification number ________, which in this instrument may be referred to as "the selling party"; and -, of __________ years of age, __________, from the domicile of __________, with unique identity document number __________, acting in name and representation, in my capacity as __________ of the CENTRAL BANK OF RESERVE OF EL SALVADOR, an autonomous public institution of a technical nature, from the domicile of San Salvador, with tax identification number zero six one four – zero one zero seven seven four – zero zero six – two (or it may be the Vice President or a Special Agent), which in this instrument may be referred to as "the Central Bank" or "the purchasing party"; by means of this instrument GRANT:

I, the undersigned notary, GIVE WITNESS: A) That the signatures at the foot of the preceding document are AUTHENTIC, having been placed in my presence by the appearing parties, who also recognized as their own the obligations contained therein. B) That the authority with which the __________ acts, in the indicated capacity BANK __________, ANONYMOUS SOCIETY, is legitimate and sufficient having had to hand: 1) __________; C) That the legal authority with which __________ appears, (authority representative of the CENTRAL BANK OF RESERVE OF EL SALVADOR.) is legitimate and sufficient. Thus the appearing parties expressed themselves, to whom I explained the legal effects of this notarial act, which consists of __________ sheets and having been read by me the entire written text in a single act without interruption, they ratify its content and we sign.- GIVE WITNESS.-

Bank xxxxxx
Central Bank of Reserve of El Salvador

Technical Standards for Temporary Investment Portfolio Purchase Operations to Protect Banking Liquidity