Rules for the Operation of Branches of Domestic and Foreign Banking Institutions in Free Trade and Industrial Zones

Objective. The objective of these Norms is to establish the general criteria that national or foreign banking institutions shall observe for the opening or closing of branches and the provision of financial services in free zones and industrial processing zones for exports, in accordance with the legal provisions in force on the matter.

Scope. The provisions of these Norms are applicable to national public and private banks, as well as to foreign banks.

Definitions. For the purpose of applying the provisions contained in these Norms, the following shall be understood as:

• a)

  Restricted Area: The territorial extension under fiscal control and surveillance, without resident population, comprised within the limits established by the Executive Branch;

• b)

  BCH: Central Bank of Honduras;

• c)

  Commission: National Commission of Banks and Insurance;

• d)

  Institutions: Those institutions that develop economic and financial activities; understood as such: national public and private banks and foreign banks;

• e)

  Law: Law of the Financial System;

• f)

  Branches: Those that carry out financial service activities, and that are established in free zones or industrial processing zones for exports, serving as direct or indirect support to the users of the same;

• g)

  Users: Any natural or legal person, national or foreign, established in a free zone or industrial processing zone for exports, as well as others that reside outside the national territory and that engage in performing the operations permitted by the legislation in force on the matter; and,

• h)

  Zones: The restricted area that is denominated as a free zone (Zoli) or industrial processing zone for exports (Zip).

Of the Opening. The institutions authorized by the Commission to operate in the national territory may carry out the opening of branches in accordance with the legal provisions in force on the matter, in order to facilitate in the zones the means for providing financial services.

Of the Operations. The branches that operate in the zones may only provide their financial services to the users of the zones recognized by the administrative authorities of the same, which shall be governed by the legal provisions in force. Without prejudice to the foregoing paragraph, banking branches may provide the window service for assistance to the general public. Said service shall strictly comprise typical cash operations, which must be separated from the operations of the branch, and all accounting records for control purposes shall depend on the nearest banking agency or branch to the same.

Of the Reserve Requirements. The deposits captured by branches located in the zones shall be subject to legal reserve requirements and mandatory investments, in accordance with the provisions issued by the BCH.

Of the Information. Branches shall maintain information related to accounting records, in a manner separate from their head offices, so that the Commission and the BCH may obtain the data and information necessary for the effective fulfillment of their objectives, as well as to determine the source and destination of resources in cases where it may be necessary. Consequently, the head offices shall submit to the Commission within the corresponding timeframes and means, the balance sheets and detailed reports of the operations carried out by the branches, as well as provide other periodic or occasional data and information that may be required of them. The information that the administrative authorities of the zones require, regarding the financial services offered by the branches, must be brought to the knowledge of the head office, which shall bring it to the knowledge of the Commission. In that sense, if there is no objection, the branch may provide it provided that it does not affect the particular interests of the users and depositors of the institutions, related to passive operations.

Of the Transfers. Operations carried out through transfer of resources between branches located in the zones and users located outside the national territory shall be carried out freely; however, they must give strict compliance with the provisions in force, especially those issued on the prevention of money laundering and financing of terrorism.

Of the Charges for Financial Services. The interest rates, fees and commissions charged in the branches located in the zones shall be subject to what is provided in Articles 55 and 56 of the Law; as well as other prudential regulations issued by the Commission and the BCH.

Of the Closing. The closing of the branches that operate in the zones, as resolved by the competent body of the institutions, must inform in writing the Commission, the administrative authorities of the zones and the users of the same, with at least thirty (30) days in advance. The Commission shall request that the respective institution present a plan for the return of captured resources, which must be executed within a maximum period of sixty (60) days following the closure.

Of the Supervision. The Commission, based on international norms and practices, and in accordance with its legal framework, shall have the powers of supervision, surveillance and control over the operations of the branch, just as it exercises over the banking institutions in the rest of the country.

Of the Sanctions. The non-compliance incurred by branches located in the zones with the provisions established in the Law, in these Norms and other provisions issued by the Commission or the BCH, shall be sanctioned in accordance with what is provided in the Sanctions Regulation issued by the Commission.

Effective Date. These Norms are of immediate execution. 2. Ratify the content of Resolution 1009/07-07-2009 issued by the National Commission of Banks and Insurance, and communicated through Circular CNBS No.042/2009. 3. Communicate this Resolution to the National Banking Institutions and Branches of Foreign Banks, for the corresponding legal effects. 4. Communicate the resolution to the CENTRAL BANK OF HONDURAS for the corresponding effects. 5. This Resolution is of immediate execution. 6. Instruct the Secretariat to proceed to publish this Resolution in the Official Gazette La Gaceta. F) VILMA C. MORALES M., President, FRANCISCO ERNESTO REYES, Secretary. FRANCISCO ERNESTO REYES Secretary 26 M. 2011. NATIONAL COMMISSION OF BANKS AND INSURANCE RESOLUTION SB No. 392/03-03-2011.- The National Commission of Banks and Insurance.

Object and Scope. These Norms have as their object to establish the requirements that external auditors must meet in order to be registered in the Register of External Auditors (RAE) maintained by the National Commission of Banks and Insurance, hereinafter the Commission; as well as to establish the general provisions that coordinate the contracting of external audit work, with respect to the financial statements of supervised institutions and financial groups. These norms indicate a minimum scope that external auditors must observe when certifying the financial statements of those supervised by the Commission.

Mandatory Provisions. In accordance with the legal and regulatory provisions in force, the financial statements of supervised institutions and financial groups shall be audited by an external audit firm registered with the Commission. For this purpose, supervised institutions shall inform the Commission annually of the external audit firm that will fulfill the functions indicated in the preceding paragraph. The external audit firm must be registered in the Register of External Auditors (RAE) maintained by the Commission. The financial statements of all companies in the financial group shall be audited by the same external audit firm, including consolidated financial statements, in accordance with what is established in Article 82 of the Law of the Financial System. The branches and representative offices shall present audited financial statements of their head office, in order to ascertain the financial situation of such entities.

Definitions For purposes of application of these Standards, the following shall be understood as: 1. Commission: National Commission of Banks and Insurance 2. External Audit: The professional service whose main purpose is to issue an independent report on the reasonableness of basic financial statements, in accordance with international auditing standards. CHAPTER III REGISTRATION

Registry of External Auditors (RAE) The Commission shall maintain a registry in which External Audit Firms must be registered, registration that allows them to provide professional external audit services to supervised institutions and financial groups. The registration of External Audit Firms shall include their partners, directors, administrators, legal representatives or professionals to whom the Firm entrusts the direction and execution of audits and those responsible for signing the respective reports. Firms, in accordance with their installed capacity and volume of their operations, shall be classified in categories. The RAE shall establish for what type of supervised institution the Firms shall be authorized to provide audit service; for such purpose, they shall be registered in categories A, B, C or D, in accordance with the methodology described in Annex 1.

Requirements for Registration in the RAE The Commission shall approve in the RAE the registration of External Auditor Firms that meet the following requirements: 1. Be legally constituted as a commercial company and that has as its main activity the provision of external audit services for the certification of basic financial statements of supervised institutions. 2. The capital of the commercial company must belong at least 51% to professionals of Public Accounting, and that are authorized to perform auditing functions of financial statements. 3. External Audit Firms must have collegiate and qualified professionals to direct audits of financial statements and sign the respective reports, with solid knowledge of their business, and of the current legal framework that governs the supervised institutions by the Commission. 4. The partners, directors, administrators, legal representatives of the Firm and persons authorized to direct audits or sign reports shall not have direct or indirect linkage through third parties in the ownership or management of supervised institutions by the Commission or other audited companies. 5. The partners, directors, administrators, legal representatives and persons in charge of directing and executing audits or signing reports, must be suitable persons, of recognized solvency and honorability that strictly observe the ethical principles of their profession. As evidence of this, they must comply with the following: That they have not been convicted of crimes involving lack of integrity, willful crimes or financial crimes. That they have not been declared bankrupt or are unrehabilithed failures, or have been convicted of crimes against property linked to the execution of audit services. That they are not in any circumstance that affects their solvency, provided this affects the provision of audit services. That the company, partners, directors, administrators, legal representatives and persons in charge of directing and executing audits or signing reports, are not direct or indirect debtors in the supervised institutions by the Commission, for credits classified in categories III, IV and V in accordance with the Standards for Evaluation and Classification of Credit Portfolio, issued by the Commission.

Procedures for registration in the RAE A. To register in the RAE, External Audit Firms must submit to the Commission a written request, attaching the following information:

• 1)

  Address of offices, telephone, fax, and email, the latter shall be used for purposes of receiving communications issued by the Commission related to these Standards;

• 2)

  Photocopy of the Tax Registry, and Photocopy of the Identity Card of the partners, directors, administrators, legal representatives and persons authorized to direct and execute audits or sign reports;

• 3)

  Copy of the articles of incorporation and its amendments;

• 4)

  Information on the financial capacity of the firm;

• 5)

  Certificate of registration in the Honduran College of University Professionals in Public Accounting and/or College of Commercial Experts and Public Accountants, for both the commercial company and for the professionals in charge of directing and executing audits or signing reports;

• 6)

  Curriculum vitae of the partners, directors, administrators, legal representatives and persons authorized to direct and execute audits or sign reports, accrediting with copies of documents, studies conducted, experience and other knowledge acquired. 7. Description of the Organization: Historical overview of the Firm; Capital ownership structure; Detail of partners, directors, administrators and legal representatives; Organizational structure and job profile; Detail of technical personnel in charge of directing and executing audits or signing reports, administrative and logistics support personnel, in accordance with the model in Annex 2; Description of the Quality Control Evaluation System on audits conducted by the Firm, both locally and internationally; Detail of office equipment and data processing system, indicating which is used for the development of audit work; Overall detail by sector of the client portfolio, in accordance with the format in Annex 3; 8. Sign and present a copy of a bond policy or Professional Civil Liability insurance, equivalent in Lempiras, of US$60,000.00 for Category "A" Firms and US$20,000.00 for Category "B" or "C" Firms, which covers any damages to third parties due to malpractice, errors or omissions in the development of their work. The Commission may update the aforementioned amounts, when it deems necessary. 9. Sworn Statement, in accordance with the format in Annex 4. B. The Commission, in accordance with due process established in Honduran positive law, may reject any request submitted that does not comply with the requirements established or whose background, once evaluated, does not guarantee the economic independence, professional quality and seriousness that is deemed essential for auditing institutions supervised by the Commission. C. The requirements and information declared may be verified by the Commission jointly with the Firm requesting registration. D. Once requirements for registration are evaluated and satisfied, the External Auditor Firm shall proceed to be registered and to be informed by resolution of what has been resolved. E. If during the process of verifying the information presented and prior to registration or in the course of time, it is determined and conclusively proven the inclusion of false information, the company and the partners that constitute it shall be barred from submitting new requests, for a period of up to three (3) years, based on the seriousness of what occurred. These cases, once administrative proceedings that guarantee the right to defense set forth in numeral 1) have been exhausted, shall be brought to the attention of the professional college where the company and partners are registered, for the pertinent effects. F. Registration requests shall be received at any time. Registration shall have indefinite validity. The Firm shall inform the Commission annually of significant changes it has had in its structure, organization, professional personnel or others, attaching the relevant documentation that keeps its registration file updated. If there are no significant changes, in January of each year, with a simple note it shall communicate such situation to the Commission. G. External Audit Firms may request reclassification to the next higher category or the one initially assigned in the RAE, and must present the updated information detailed in Literal A of this Article 6.

Evaluation and Classification of the Firm The Commission reserves the right to verify on-site the documentation presented by the Firm for its registration and reclassification in the RAE. Once the documentation of the registration request is verified, the Commission shall proceed to evaluate and classify the request based on the criteria, factors and guidelines established in the methodology of the internal evaluation of the RAE, in accordance with what is established in Annex 1 of these Standards.

Infractions and Sanctions The Commission shall apply sanctions to the Firm when it commits the following infractions: A. Minor infractions 1) Does not comply with the requirements established in Article 12 of these Standards; 2) Elaborates work papers that impede verification with the content of the independent report; 3) Provides services incompatible with Article 14 of these Standards; Minor infractions shall be sanctioned with written reprimand without publication. B. Serious infractions 1) Issues reports while included in some of the incompatibilities established in Article 14 of these Standards; 2) Does not maintain confidentiality regarding information known in the exercise of its activity; 3) Does not perform the rotation indicated in Article 20 of these Standards; 4) Commits three (3) minor infractions in the period of two (2) years; 5) Fails to comply with any of the registration requirements established in Article 5 of these Standards. Serious infractions shall be sanctioned with reclassification to the next lower category immediately below the one the Firm has at the time of the infraction. C. Very serious infractions 1) Does not communicate to the Commission facts that in the execution of its work are determined to affect the financial stability of the supervised institution as indicated in Article 75 of the Law of the Financial System; 2) Violation of the requirement of professional independence; 3) Issues report without adhering to International Standards on Auditing (ISAs); 4) When in the report intentionally:

• I)

  Relevant information is omitted that the auditor has knowledge of;

• II)

  False information is incorporated or information that induces error or alters the result in order to present a situation different from reality;

• III)

  It is subject to, accepts and does not pronounce upon, fosters or proposes that a specific transaction be recorded in a manner different from the accounting criteria established by the Commission and significantly alters the financial statements of the supervised institution. Very serious infractions shall be sanctioned with suspension of registration for a period of two (2) years and if it is a recidivist in this same type of infractions, it shall be sanctioned with definitive cancellation of the registry of external auditors (RAE).

Sanction Procedures When the Commission determines that a Firm has committed any of the infractions detailed in the previous Article, before being sanctioned, the Firm shall be notified so that in the exercise of the right of defense enshrined in the Constitution of the Republic it may submit within the period of ten (10) business days the corresponding responses. If the Firm does not submit responses or the same do not dispel the infraction determined, the Commission through resolution shall proceed to impose the corresponding sanction. The Commission, once the administrative procedure of cancellation or suspension of a Firm in the RAE is concluded, shall notify the supervised institution and the professional colleges of Public Accountants and, if the seriousness of the infraction warrants it, shall also inform the Public Ministry. The Commission shall publish on its website the Firms that have been registered and those that have been suspended or cancelled in the RAE. The Firm that has requested its cancellation in the RAE may request registration again, presenting all the information required in Article 5 of these Standards. CHAPTER IV CONTRACTING OF EXTERNAL AUDITS BY SUPERVISED INSTITUTIONS

Contracting of External Auditors Supervised institutions must contract the Firm that shall conduct the audit of the financial statements for the current year, no later than five (5) months before the close of its accounting period.

Designation of the Firm The selection of the Firm that shall examine and issue opinions on the financial statements of supervised institutions shall be subject to the approval of the Board of Directors or Administrative Board. Supervised institutions must inform the Commission of the reasons that may motivate a change of Firm after the respective contract is signed, attaching certification of the board minute where such change was agreed. The contracting of the Firm, as well as the rescission of contracts must be communicated to the Commission within a period of ten (10) business days counted from the date on which the respective agreement was taken, attaching the certification of the board minute. When the contracting of the Firm has been notified to the Commission by the company responsible for a Financial Group authorized by the Commission, it shall not be necessary for each of the supervised institutions that make up said Group to do so, except in the case that a different firm is used for any of the Institutions.

Minimum Content of the Contract The contract executed between supervised institutions and the Firm must contain as a minimum express clauses that clearly specify the following: 1. That the Firm declares knowing and accepting what is established in the RAE. 2. That supervised institutions authorize the firm and that in turn it obligates itself to allow the Commission access without limitations to work papers or other means of documentation of audit evidence, starting from ninety (90) calendar days after the date of closing of the annual period, and to facilitate copies thereof in required cases and address inquiries regarding the audit conducted. 3. That the audit shall be conducted in accordance with International Standards on Auditing (ISAs). 4. That in the application of the ISAs, the prudential accounting provisions issued by the Commission shall be verified, insofar as they are applicable to the supervised institution. The Commission shall make available to the Firms, when they so request, all standards it issues and the technical information necessary to comply with the requirements established. 5. The Firm must verify the control and prevention processes established in the Law on Money Laundering and Financing of Terrorism. 6. The Firm commits to deliver to the audited entity the corresponding audit reports, within ninety (90) calendar days following the date of closing of the period. The audit must begin by common agreement with the contracting institution with proper advance notice in order to comply with the deadline mentioned above. 7. The supervised institution commits to notify the Firm of the reports and resolutions issued by the Commission.

Requirements for the Contracting of the Firm The Firm contracted by the supervised institution by the Commission, must comply with the following requirements: 1. Be registered in the RAE. 2. Not be a shareholder of the institution that hires its services; furthermore, the partners, directors, administrators, legal representatives of the Firm and persons authorized to direct audits or sign reports, may not be shareholders, directors, administrators or employees of the institution to which it provides the external audit service nor have any family relationship with the directors of said institution according to the fourth degree of consanguinity or second of affinity. 3. That the company, partners, directors and other audit professionals of the Firm do not have direct or indirect obligations in preferential conditions with the institutions where it provides its services. 4. Not be in any circumstance that could affect its independence as indicated by International Standards on Auditing (ISAs).

Incompatible Services The supervised institution may not contract financial statement audit services with a Firm that during the same accounting period provides the following services to the entity or to the financial group: 1. Accounting or other services related to accounting records. 2. The design and implementation of information technology systems; 3. Assessment or valuation services; 4. Legal services, from which elements shall arise that shall be subject to the accounting or audit opinion; 5. Actuarial services, when used in the accounting of the audited institution; 6. Direct or indirect internal audit services; 7. Managerial functions and selection and recruitment of personnel of the supervised institution to occupy managerial positions and the two immediate levels below such positions; 8. Investment consulting services; 9. The Firm may conduct consulting that is not related to the preceding numerals of this article.

Scope of Audit Work In the scope of work determined by the Firm, it must include as a minimum the following: 1. Evaluation of the Internal Control System. 2. Tests of compliance with accounting and financial standards contained in resolutions issued by the Commission and the Central Bank of Honduras, applicable to the audited entity. 3. Evaluation of the Information Technology System.

Reports Audit reports shall include the following: 1. The report on whether the basic financial statements; Balance Sheet, Income Statement, Cash Flow Statement and Statement of Changes in Equity, fairly present the financial position, financial performance and cash flows of the audited institution, in accordance with the accounting standards issued by the Commission. The supervised entity must disclose in the notes to the financial statements the accounting differences between IFRSs and the standards issued by the Commission, as well as all other disclosures necessary for the understanding of the financial statements. The basic Financial Statements must be prepared under the responsibility of the administration of the supervised entity. 2. A report on the credit portfolio based on the Standards for Evaluation and Classification of Credit Portfolio issued by the Commission in accordance with ISA 805 "Special Considerations, Audits of Single Financial Statements and Elements, Accounts or Specific Items of a Financial Statement". For this report, external auditors must verify the criteria and procedures applied by supervised institutions in credit operations that represent at least 40% of the total amount of the credit portfolio.

Custody of Work Papers The work papers and/or audit evidence, electronic or printed, shall be preserved for a minimum period of five (5) years; however, in case of litigation, they must be preserved until resolution thereof. Access to work papers must be without restrictions for the Commission, with prior approval of the supervised entity.

Obligations of Supervised Institutions to the Firm. The Board of Directors or Board of Administration and the General Management of supervised institutions are responsible for providing the Firm that contracts with them all necessary information so that it may express its opinion independently and without limitations. The Commission shall make available to registered External Auditors all current and future standards between the Commission that apply to supervised institutions and the technical information necessary to comply with established requirements.

Special Reports. After exhausting the right to defense that the Firm issuing a report on Financial Statements has, where the Commission has detected situations that in its judgment constitute material errors or omissions in the audit of such financial statements, this information shall be provided to the supervised entity and the Commission may require that another Firm be contracted to issue a second independent report on the same matters or an additional special examination to those mentioned previously, the cost of which shall be borne by the supervised institution.

Rotation of External Auditors. In order to strengthen the independence of external auditors, it shall be the responsibility of supervised institutions to require the rotation of the partner of a particular institution, after at least seven (7) years of continuous audit services, and may be designated again after a minimum interruption of two (2) years.

Planning. In planning audit work, in addition to compliance with International Standards on Auditing (ISAs), the Firm shall include tests on compliance with prudential standards issued by the Commission through Resolution, which are detailed as follows:

• A)

  Financial Intermediaries. Legal reserve requirements; Credits to related parties and economic groups, as established by the Central Bank of Honduras on the matter; Capital requirements; Capital Adequacy Ratio - CAR; Credit and Investment Portfolio Management Standard; Asset Matching Standard; Contingent Assets; Money Laundering and Terrorism Financing;

• B)

  Insurance Institutions. Technical and mathematical reserves; Solvency margin; Investments; Premiums receivable; Reinsurance contracts; Money Laundering and Terrorism Financing;

• C)

  General Warehouse Depositories. Deposit certificates and pledge bonds; Use of Authorized Warehouses;

• D)

  Stock Exchanges - Brokerage Houses. Stock market operations; Money Laundering and Terrorism Financing;

• E)

  Exchange Houses. Purchase and sale of foreign currency; Money Laundering and Terrorism Financing;

• F)

  Pension Fund Administrators. Technical reserves; Investments; Actuarial valuation; Equity solvency; Money Laundering and Terrorism Financing;

• G)

  Public Pension Funds. Technical reserves; Investments; Actuarial valuation; Money Laundering and Terrorism Financing;

• H)

  Private Financial Development Organizations - OPDF. Capital requirements; Credit and Investment Portfolio Management Standard; Contingent Assets; Money Laundering and Terrorism Financing;

• I)

  Second-Floor Institutions. Credit and Investment Portfolio Management Standard; Asset Matching Standard; Investments;

• J)

  Credit Card Issuer Societies. Credit and Investment Portfolio Management Standard; Provisions; Money Laundering and Terrorism Financing;

• K)

  Money Remittance Societies. Liquid assets position; Money Laundering and Terrorism Financing; It is understood that prudential standards related to Standards for the Evaluation and Classification of the Credit Portfolio shall be evaluated in accordance with the procedures required for the issuance of the report on the credit portfolio referred to in Article 16 numeral 2 of these standards. Additionally, the Firm shall review regulations applicable to other supervised institutions not included in this Article, which must submit audited financial statements to this Commission.

Supervision and Quality Control. 1. External auditors must perform quality control of their work in accordance with their own standards, which shall be made known to the Commission when it so requests. 2. The work papers or the audit filing systems in place at the Firm shall present evidence regarding: Execution of the audit plan; Criteria and methodology for sample selection and scope thereof; Evidence of review by the Partner and Manager in charge of the audit; Summary of audit adjustments and/or reclassifications; and, Audit conclusions. 3. If during the audit of financial statements, the Firm encounters limitations for the development of the work, detects a fact or condition that constitutes a serious risk to the financial stability of the audited institution, or determines the existence of illegal operations, it must immediately notify the audited institution and report directly to the Commission.

Evaluation of External Auditors' Work. The evaluation of external auditors' work shall be based on compliance with International Standards on Auditing, the deficiencies found in the Firm's performance, so that it may present the replies it deems appropriate. If based on the corresponding evaluation and after the administrative proceedings that grant the right to defense, it is determined that the Firm's work does not meet the minimum requirements of quality and application of current regulations, sanctions shall be applied in accordance with Article 8 of these standards.

Audit Committee. Supervised institutions, in order to provide adequate follow-up to the Commission's institutions and to external and internal audit observations, shall establish an Audit Committee. For such purposes, they shall observe the standards issued by the Commission regarding Corporate Governance and internal auditors. CHAPTER V GENERAL AND FINAL PROVISIONS

Repeal. As of the effective date of the present Standards, Resolutions Nos. 684/29-06-2004, 840/24-08-2004, and 1028/13-10-2006 issued by the National Commission of Banks and Insurance are repealed, as well as any other provision that opposes them.

Effective Date. The present Standards shall take effect as of March 31, 2011 and for audits of Financial Statements contracted as of the year 2011. 2. Matters not provided for in the present Standards shall be resolved by the Commission. 3. This Resolution is of immediate execution. 4. Direct the Secretariat to proceed with the publication of this Resolution in the Official Gazette La Gaceta. F) VILMA C. MORALES M., President, FRANCISCO ERNESTO REYES, Secretary."

Purpose. The purpose of these guidelines is to establish uniform criteria that shall be observed by financial system institutions for accounting for the provision of the financial service known as "Salary Advances" or equivalent treatments, hereinafter referred to as "Salary Advances".

Definitions. For purposes of these guidelines, the following shall be understood as: a. Salary Advance: Pre-approved credit to natural persons who receive their salary compensation through payroll, through partial advance of the next salary, via deposits in savings accounts or checking accounts previously opened in an institution, with the obligation of the client to make the corresponding payment. b. Commission: National Commission of Banks and Insurance. c. Institutions: Financial System Institutions; and, d. Applicant: Natural person who directly requests the salary advance service and who receives their salary or wage payment from companies or legal entities that use the Institution's payroll payment service.

Definition, Analysis and Formalization of the Service. Institutions shall maintain policies that clearly define the administration of this financial service, the authorization requirements, existence of contracts for the formalization of the service, calculation procedure, disbursement and payment.

Accounting Control. In order to establish guidelines for the accounting record of operations arising from the provision of the salary advance service, institutions shall open the divisional accounts corresponding to the 103101.05 "Loans, Discounts and Negotiations" account - Fiduciary Loans, in accordance with what is indicated in the Accounting Manual for Financial Institutions currently in effect. Likewise, when the salary advance maintains an age greater than thirty (30) days, it shall be reclassified accounting-wise to account 103103.05 "Loans, Discounts and Negotiations" - Fiduciary Loans using the corresponding divisional account. Institutions shall pay attention to the provisions of the Accounting Manual regarding accounting records in accordance with the situation of default or reference in the accounting records.

Constitution of Reserves for Uncollectibility. Institutions shall create a reserve for the amount of the salary advance disbursed, in accordance with what is established in the Standards for the Evaluation and Classification of the Credit Portfolio currently in effect.

Legal Reserve Requirement. Institutions shall establish the necessary controls to ensure that operations arising from "Salary Advances" do not affect the balances of deposit liabilities subject to legal reserve requirements.

Sanctions. The determination and application of sanctions for non-compliance with the provisions contained in these Guidelines shall be carried out in accordance with what is established in the Financial System Law and the Sanctions Regulations.

Adaptation Period. Institutions that prior to the entry into force of these Guidelines are offering loans in the concept of "Salary Advances" shall adapt to these provisions within a maximum period of sixty (60) calendar days.

Effective Date. These guidelines are of immediate execution and shall be published in the official journal "La Gaceta".

Other Provisions. Institutions shall frame the "Salary Advances" service according to the general regulation applicable to them.

Unforeseen Cases. Matters not provided for in these guidelines shall be resolved by the Commission, in accordance with sound practices. 2. Communicate this Resolution to the Institutions of the Financial System, for the corresponding effects. 3. This Resolution is of immediate execution. F) VILMA C. MORALES M., President, FRANCISCO ERNESTO REYES, Secretary". FRANCISCO ERNESTO REYES Secretary 26 M. 2011. NOTICE OF SUPPLEMENTARY TITLE The undersigned, Secretary by law, of the Court of First Instance of Ocotepeque, to the general public and for purposes of law, CERTIFIES: That ROSA LINDA VALLE has requested a Supplementary Title for the following real property: A) A parcel of land, consisting of thirty manzanas of SURFACE AREA, located in the place called Las Vega Vieja, municipality of Fraternidad, Ocotepeque, with the following boundaries: On the North, with property of Santos Portillo; on the South and West, with property of Anita Portillo; and, on the East, bordering with SANTOS VALLE. Which I have possessed quietly, peacefully and uninterruptedly for more than ten years, united to the possession of my seller. Legal Representative Atty. JORGE ORLANDO CHACÓN PACHECO. Ocotepeque, January 28, 2011. CARLOS ENRIQUE ALDANA. SECY. DEPARTMENTAL COURT OF FIRST INSTANCE OF OCOTEPEQUE 26 F., 26 M. and 26 A. 2011. BOOKLETS PAMPHLETS TRIFOLDS CONTINUOUS FORMS POSTERS INVOICES BUSINESS CARDS DEED COVERS CALENDARS BOOK BINDING MAGAZINES.