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SECOND SUPPLEMENT

Year II - No. 332
Quito, Friday 12
September 2014

CODE
ORGANIC
MONETARY
Y
FINANCIAL

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2 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 3

REPUBLIC OF ECUADOR

REPUBLIC OF ECUADOR

NATIONAL ASSEMBLY Of. Not.

NATIONAL ASSEMBLY
THE FULL

SAN-2014-1305
Quito, September 5, 2014

CONSIDERING:

Engineer

That, in accordance with article 261 numeral 5 of the

Hugo del Pozo Barrezueta

Constitution of the Republic, the central State will have
exclusive powers over economic policies and

Director of the Official Registry

monetary, among others;

At his office

That, article 283 of the Supreme State Charter
establishes that the economic system is social and supportive;
recognizes the human being as subject and end; tends to a

My considerations:

dynamic and balanced relationship between society, State and
The National Assembly, in accordance with the powers

Market, in harmony with nature; has as purpose

conferred by the Constitution of the Republic of Ecuador

ensure the production and reproduction of the conditions

and the Organic Law of the Legislative Function, discussed and

materials and intangibles that make Good Living possible; Y

approved the Draft MONETARY ORGANIC CODE

prescribes that the economic system is made up of the

AND FINANCIAL.

forms of economic, public, private, mixed organization,
popular and solidary, and the others that the Constitution

In a session of September 2, 2014, the Plenary of the

determine;

National Assembly learned about and ruled on the
partial objection presented by the President

That, article 284 of the Constitution of the Republic

Constitutional of the Republic.

provides that economic policy will have the following
Objectives: 1) To ensure an adequate distribution of the

For the exposed; and, as provided in article 138 of the

income and national wealth; 2) Incentivize production

Constitution of the Republic of Ecuador and article 64 of

national, systemic productivity and competitiveness,

the Organic Law of the Legislative Function, I accompany the

accumulation of scientific and technological knowledge,

text of the ORGANIC MONETARY CODE AND

strategic insertion in the world economy and

FINANCIAL, so that it may be published in the Registry

complementary productive activities in integration

Official.

regional; 3) Ensure food and energy sovereignty;
4) Promote the incorporation of added value with

Sincerely,

maximum efficiency, within the biophysical limits of the

f.) DR. LIBIA RIVAS ORDÓÑEZ, Secretary General.

nature and respect for life and cultures; 5) Achieve
a balanced development of the national territory,
integration between regions, in the field, between the field and the
city, economically, socially and culturally; 6) Promote the
full employment and value all forms of work with
respect for labor rights; 7) Maintain stability
economic, understood as the maximum level of production

REPUBLIC OF ECUADOR

and sustainable employment over time; 8) Promote
fair and complementary exchange of goods and services in
transparent and efficient markets; 9) Promote a

NATIONAL ASSEMBLY

CERTIFICATION

socially and environmentally responsible consumption;
That, in accordance with article 302 numerals 2 and 3 of the
Constitution of the Republic, monetary policy,
credit, exchange and financial objectives will be:

I allow myself to CERTIFY that the National Assembly

establish global liquidity levels that guarantee

discussed and approved the DRAFT ORGANIC CODE

adequate margins of financial safety and guide the

MONETARY AND FINANCIAL, in the first debate of 8

surplus liquidity towards the investment required for the

July 2014; in second debate on July 22 and 24,

development of the country, respectively;

2014; and, his partial objection on September 2, 2014.
That, Article 303 of the Political Charter of the State
Quito, September 2, 2014.

prescribes that the formulation of monetary policies,
credit, exchange and financial is the exclusive power of the
Executive function to be implemented through the Bank
Central and that the execution of the credit policy and

f.) DR. LIBIA RIVAS ORDÓÑEZ, Secretary General.

Financial will also be exercised through public banks;

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4 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

That, Article 308 of the Constitution of the Republic
mandates that financial activities are a service of

2. Ensure that the exercise of monetary activities,

public order and may be exercised with the prior authorization of the

financial, securities and insurance is consistent and

State, in accordance with the law;

integrated;

That article 309 of the Constitution of the Republic

3. Ensure the liquidity levels of the economy to
contribute to the fulfillment of the economic program;

provides that the national financial system is made up of
the public, private and popular and solidarity sectors, which
mediate resources from the public and prescribes that each

4. Ensure the sustainability of the financial system
national and insurance and securities regimes and

of these sectors will have standards and entities of

guarantee compliance with the obligations of each

specific and differentiated control, which will be in charge of

one of the sectors and entities that make them up;

preserve its security, stability, transparency and solidity;
That, Article 312 of the Constitution of the Republic

5. Mitigate systemic risks and reduce fluctuations
economic;

establishes that the institutions of the financial system
private, its directors and main shareholders may not

6. Protect the rights of service users

be holders, directly or indirectly, of shares and

financial, securities and insurance;

holdings in companies outside the activity
financial;

7. Deepen the process of constitution of a system
economic, social and solidarity, in which the beings

That, according to article 338 of the Constitution of the

humans are the end of public policy;

Republic, the State will promote and protect savings
internal as a source of productive investment in the country;

8. Strengthen strategic insertion at the regional and
international;

That, it is necessary to systematize within a legal body
9. Encourage, promote and generate incentives in favor of

all provisions of laws related to

entities of the Popular and Solidarity Economy; Y,

monetary, financial, credit and exchange rate policies, such as
part of the new Ecuadorian financial architecture;

10. Promote access to credit for people on the move
human, disabled, young, single mothers and

That, it is necessary to determine the responsible institutions

other people belonging to the care groups

of policy formulation in the monetary sphere,

priority.

financial, credit and exchange rate, as well as regulation
of public order financial services and their control;
Y,

Article 4.- Principles. The principles that inspire
provisions of the Organic Monetary and Financial Code

In exercise of the powers established in article 120
Numeral 6 of the Constitution of the Republic, issues the

They are:
1. The prevalence of the human being over capital;

following:
2. The subordination of the monetary, financial, and
ORGANIC MONETARY CODE AND

securities and insurance as an instrument at the service of

FINANCIAL
PRELIMINARY TITLE

real economy;
3. The exercise of monetary and financial sovereignty and the
international strategic insertion;

COMMON PROVISIONS
4. Inclusion and equity;
CHAPTER 1
5. Building trust; Y,
General principles
6. The protection of citizens' rights.
Article 1.- Purpose. The Organic Monetary Code and
Financial aims to regulate the monetary and

Article 5.- Policy. Policy formulation and

financial, as well as the securities and insurance regimes of the

regulations on monetary, credit, exchange,

Ecuador.

financial, as well as insurance and securities, is the faculty
exclusive of the Executive Function and has as objectives the

Article 2.- Scope. This Code establishes the framework for
policies, regulations, supervision, control and accountability
accounts governing the monetary and financial systems, as well

determined in articles 284 and 302 of the Constitution
of the Republic and those established in the National Plan of
Developing.

such as securities and insurance regimes, the exercise of
its activities and the relationship with its users.

EPISODE 2

Article 3.- Objectives. The objectives of this Code are:
1. Promote the generation of work, the production of
wealth, its distribution and redistribution;

Of the entities
Article 6.- Integration. They integrate the monetary and
national financial entities responsible for the

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 5

policy formulation, regulation, implementation,

The superintendents indicated in this Code may not

supervision, control and financial security and the entities

resolve or intervene in those matters in which he, his

public, private and popular and solidarity that exercise

spouse or partner or their relatives up to the third degree

monetary and financial activities.

of consanguinity or second of affinity, or his partner or
de facto or legal partners have interests of a nature

The securities and insurance regimes are made up of entities

patrimonial.

responsible for the formulation of policies, regulation,
implementation, supervision and control, in addition to

The conflict of interest of a patrimonial nature referred to in

public and private entities that carry out operations with

this article will be configured by the ownership of 1% or

securities and carry out insurance activities.

more than the subscribed and paid capital of the regulated entity or
controlled or the equivalent of one thousand unified basic salaries,

Article 7.- Conflict of interests. They cannot be

whichever is greater. In this case the member, officer or

officials or members of regulatory entities or

server of the regulatory and control bodies must

control of the national financial system or the regimes

get rid of the titles that originate the conflict of

insurance and securities who have interests of character

patrimonial interests.

patrimonial in the areas to be regulated, supervised or
controlled companies, or represent or advise third parties that

If any member, official or servant of the organizations

have, within the scope of this Code.

of regulation and control owns shares in
any of the entities regulated or controlled by a

The public servants of the regulatory entities

amount less than that determined in the preceding paragraph, is

or control will refrain from acting in cases where

obliged to disclose the fact in writing to his authority

your interests conflict with those of the body or

nominator. In the same way, it will inform if you have a spouse

entity in which they provide their services or it is evidenced or

or relative within the third degree of consanguinity or

an event that causes a conflict of interest occurs.

second of affinity, or father or adoptive son, who is
are working in these entities. The

The members of the Policy and Regulation Board

Non-observance of this provision will be grounds for removal.

Monetary and Financial and the superintendents in charge
control of the national financial system and the

There is no conflict of interest when they decide and vote

insurance regimes and values ​indicated in this Code,

matters with general effects.

Before assuming their positions, they must declare in
public instrument, under oath, that neither he or she, his

It will be grounds for separation from office to incur in conflict

spouse or partner are in conflict

interest.

of interests nor do they have a kinship relationship within the
second degree of consanguinity and second degree of affinity

The provisions of this article are not applicable in the

with people with patrimonial property with influence and

regulation and control of the companies referred to in the Law

with administrators of private financial institutions and

of Companies.

popular and solidarity, insurance and private securities, in the
scope of their respective competence. In the case of

Article. 8.- Officials of the agencies of

entities whose participation is greater than 3% of the total

regulation and control. No member, officer or

assets of the national financial system, are

server of the regulatory and control bodies on

those persons who have a conflict of interest

monetary, financial, insurance and securities matters,

have a kinship relationship within the fourth degree of

while he is in the exercise of his functions,

consanguinity and second of affinity with people with

may be a director, officer or employee of any of

patrimonial property with influence and with administrators

private financial institutions or popular economy

of private and popular financial entities and

and solidarity or private entities of securities and

solidarity, insurance and private securities, within the scope of their

insurance.

respective competence.
The servers and officials of the indicated organizations,
Before the start of a session in which they are to be treated

with the exception of those that are subject to the Code

regulatory or control issues, the members of the Board of

of Labor, they will not be able to grant guarantees or contract

Monetary and Financial Policy and Regulation and

credits with the entities of the national financial system,

superintendents indicated in this article, must

unless they have the express authorization of their

report the existence of a conflict of interest

highest authority.

supervening, a fact that should be incorporated into the
corresponding record, and excuse yourself from acting.

The members of the regulatory bodies and the
heads of control bodies will make public in the

No member of the Board of Policy and Regulation

website of your institution the balance of the credits that

Monetaria y Financiera may intervene or vote in those

remain in force, on a quarterly basis.

matters in which he, his spouse or partner, his
relatives up to the third degree of consanguinity or

The members, servants and officials that are part

second of affinity, or its partner or partners in fact or

of the organisms that carry out regulatory activities,

right have patrimonial interests. In these

supervision and control, they will be prevented from providing their

In these cases, the member must withdraw from the session while

services in regulated entities or in which they are

Address the matter on which you have a conflict of interest.

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6 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

under its scope of control, as appropriate, under any

Private Insurance Fund, the entities of the sector

contractual modality, and to intervene or manage directly or

public finance and public securities and insurance will be

indirectly before these organs, for the benefit of such

subject to citizen oversight and social control, to

regulated and controlled entities until after two (2)

through the control mechanisms provided in the

years of terminating their duties, without prejudice to the

current legislation.

limitations that article 153 of the Constitution
Section 1

determines. Violation of this impediment will constitute

Of the Board of Policy and Monetary Regulation and

serious infringement by the regulated entity or

Financial

controlled, which will be sanctioned in accordance with Section 11 of the
Chapter 3 of this Code, to article 208 of the Law of
Stock Market or article 40 of the General Law of

Article 13.- Formation. Create the Policy Board and
Monetary and Financial Regulation, part of the Function

Insurance, as appropriate according to nature
of the offending entity. This prohibition applies

Executive, responsible for formulating policies
regulations and monetary, credit,

exclusively for the case of regulated entities,
controlled or supervised within the scope of this

exchange, financial, insurance and securities.

Code. Workers subject to the Labor Code of
Regulatory, supervisory or control bodies do not
are subject to this prohibition.

The Board will be made up of full rights by the
heads of the ministries of State responsible for the
economic policy, production, finance

Article 9.- Coordination. Regulatory bodies and
control and the Deposit Insurance Corporation, Fondo de
Liquidity and Private Insurance Fund, will have the duty of
coordinate actions for the fulfillment of its purposes and
make effective the enjoyment and exercise of rights
recognized in the Constitution, for which purpose

public authorities, the head of State planning and a
delegate of the President of the Republic. They will participate in the
deliberations of the Board, with voice but without vote, the
Superintendent of Banks, the Superintendent of
Companies, Securities and Insurance, the Superintendent of
Popular and Solidarity Economy, the General Manager of the
Central Bank of Ecuador and the President of the Board of

exchange data or reports related to
entities subject to its regulation and control. Information
subject to secrecy and reservation will be treated in accordance with
the provisions of this Code.

the Deposit Insurance Corporation, Liquidity Fund
and Private Insurance Fund.
The Monetary and Financial Policy and Regulation Board

Article 10.- Coercive jurisdiction. Give yourself to
superintendencies, to the Insurance Corporation of

You can invite any other person to participate in your sessions.
public authority, private or popular and solidarity entity that
deems necessary for your deliberations.

Deposits, Liquidity Fund and Insurance Fund
Private, to the Central Bank of Ecuador, to the entities of the
public financial sector, the coercive jurisdiction for the
collection of credits and any type of obligations to your
favor or third parties, which will be exercised by the representative
legal of said entities.

Article 14.- Functions. The Board has the following
functions:
1. Formulate and direct monetary, credit, and
exchange rate and financial, including insurance policy
and of values;

The exercise of coercive jurisdiction may be delegated to
any server of the entity through the act

2. Regulate the implementation of the

correspondent.

monetary, credit, exchange and financial policies,
including insurance and securities policy, and monitor

The coercion will be exercised matching any title of

your application;

credit of those determined in the law.
The coercive procedure to be followed will be determined

3. Regulate through regulations the financial activities that
are exercised by the entities of the national financial system and

In the law.

the activities of insurance and securities entities;

Article 11.- Support of the Public Force. The
superintendencies referred to in this Code, such as

4. Regulate the creation, constitution, organization, operation
and liquidation of financial, insurance and

part of its control actions to the activities

of values;

financial, insurance and securities, in order to safeguard
the value of the assets of such entities and to preserve
the integrity of the corresponding information, will request

5. Know about the results of the control carried out by
the superintendencies referred to in this Code, of the

directly and motivated to the Public Force the support for

supervision and surveillance by the Central Bank of the

that delegated officials join an entity,

Ecuador and on the reports presented by the

remain in it and guard it, being mandatory for

Deposit Insurance Corporation, Fund

the Public Force provide the immediate assistance that is

Liquidity and Private Insurance Fund, in the field of

I requested.

their powers;
Article 12.- Oversight and social control. The
superintendencies, the Central Bank of Ecuador, the

6. Apply the provisions of this Code, the regulations
regulatory and resolve unforeseen cases;

Deposit Insurance Corporation, Liquidity Fund and

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 7

7. Approve the monetary and credit programming,

financial, securities and insurance, in line with the
macroeconomic objectives;

exchange rate and financial system, which will be aligned with the program
government economic;

16. Establish the levels of liquidity reserves, of
domestic liquidity, equity, technical equity and

8. Authorize the investment policy of the surpluses of

the risk weights of the assets, their

liquidity and international reserves;

composition, calculation method and modifications, to the
9. Know and resolve the challenges that are presented

to be submitted by financial institutions,

to the acts of the Board itself, in accordance with the Statute

securities and insurance;

of the Administrative Legal Regime of the Function
17. Determine the quotas of the entities of the sectors

Executive;

private and popular and supportive financial
contract with the Central Bank of Ecuador to

10. Present to the President of the Republic proposals for
modification of monetary, credit legislation,

rediscount or investment window operations

exchange, financial, insurance and securities;

domestic, subject to this Code, on the basis of
of its solvency, patrimonial relations and the policy

11. Establish, within the framework of its powers, any

economic to be determined for the effect;

as I contributed to:
18. Establish for non-financial legal entities
that carry out credit operations over the
a) Prevent and discourage fraudulent practices,

limits determined by the Board, reserve requirements

including money laundering and financing of

minimum, equity and liquidity requirements and

crimes such as terrorism;

others that guarantee its adequate management and solvency,
as well as its form of calculation, within the framework of the policy

b) Protect the privacy of individuals in relation to

economic;

with the dissemination of your personal information, as well
such as national security information;
c) Protect the integrity and stability of the system
national financial system and the sustainability of the regime

19. Establish means of payment;
20. Regulate the national payment system;
21. Regulate the management of electronic currency and provide the

monetary and securities and insurance regimes;

Central Bank of Ecuador its implementation,
monitoring and evaluation, as well as currency

d) Safeguard economic performance in

national metal, in accordance with the provisions of this

emergency situations;

Code;

e) Encourage regional integration processes;

22. Determine the requirements applicable to the entities
financial, securities and insurance, consistent with

f) Pre-caution the sustainability of the balance of

the economic policy objectives;

payments, economic planning for Good Living
and the defense of the nascent industry;

23. Establish credit levels, interest rates, reserves
liquidity, reserve requirements and provisions applicable to

g) Generate incentives for the institutions of the system

credit, financial, commercial and other operations,

financial support for the creation of products aimed at

that can be defined by segments, activities

promote and facilitate the economic inclusion of

economic and other criteria;

priority care groups such as
people in human mobility, with disabilities,

24. Regulate the growth of financial entities,

young people and single mothers.

securities and insurance, to reduce the vulnerability of the
economy;

12. Determine for the national economy the level of

25. Establish rules for the operation of payments

global liquidity consistent with strategic objectives

and transfers to and from Ecuador;

defined for the exercise of economic policy;
26. Establish moratoriums for the constitution of new
13. Plan, regulate and monitor liquidity levels of

financial, securities and insurance entities;

the economy;
27. Comply with the functions that the Market Law of
14. Define the criteria to be followed for the management of the

Values ​granted, as well as regulating the constitution,

surplus liquidity, in order to stimulate the

operation and liquidation of funds and trust businesses;

domestic investment, its sustainability, its consistency
with the objectives of economic growth, generation

28. Establish the charges for the services provided by the

of work, sustainability of the balance of payments,

financial, securities and insurance entities as well as

reduction of inequality and distribution and

non-financial entities that grant credit and

income redistribution;

expenses with third parties derived from operations
assets incurred by the users of these entities;

15. Issue the regulatory framework for management, solvency and
prudence to which entities must abide

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8 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

29. Establish the maximum limit of costs and commissions

41. Regulate the constitution, organization, operation,

that can be agreed for the use of the collection service

settlement and registration of complementary funds

with credit card, debit card and other similar means

pension plans and their investments, as well as the requirements

nature to commercial establishments.

minimum to exercise the position of administrators;

These costs and commissions may not exceed the limits

42. Appoint the administrative secretary of the Board;

maximums established by the Board, considering
In addition to other operational factors, the rate

43. Appoint the General Manager of the Central Bank of the
Ecuador;

effective maximum issued by the Central Bank of
Ecuador;

44. Approve the Statute of the Central Bank of Ecuador and its
reforms, after compliance with the requirements

30. Regulate the maximum levels of remuneration and others

determined in the Organic Law of the Public Service;

economic, social benefits and compensation of
administrators of financial institutions, of
securities and insurance, considering profitability,

45. Approve the budget of the Central Bank annually

risk, assets and capital of the entity compared

Ecuador and financial sector entities

with the rest of the system;

public, insurance and public securities, its reforms,
as well as regulate its execution;

31. Establish credit and investment policy guidelines
and, in general, on assets, liabilities and operations

46. ​Annually approve the Bank's financial statements

contingents of the financial system entities

Central del Ecuador and the Insurance Corporation of

national, in accordance with this Code;

Deposits, Liquidity Fund and Insurance Fund
Private;

32. Determine the type of entities that may have
current and securities accounts at the Central Bank of the

47. Regulate participation as shareholders in entities
of the national financial system, of individuals or

Ecuador;

legal entities domiciled in tax havens;
33. To dictate the rules that regulate insurance and
48. Present to the President of the Republic a report on

reinsurance;

accountability during the first quarter of
each year with respect to the previous fiscal year,

34. Regulate the fiduciary management of the sector entities

when required by the Chief Executive or when the

public financier;

Board considers it relevant;
35. Establish the segmentation of the sector entities
49. Issue the general rules for the payment of

popular and solidarity financier;

the coverage of the Private Insurance Fund;
36. Determine the banking operations of the
Central Bank of Ecuador subject to the control of the

50. Determine the percentages and destination in which

Superintendency of Banks and operations of the

divide the tax on the net premiums of

Trusts of the Deposit Insurance Corporation,

direct insurance established in the law at the time of

Liquidity Fund and Private Insurance Fund

contract private insurance policies;

subject to the control of the respective superintendencies;
51. To dictate rules of transparency and disclosure of
information for all entities of the system

37. Authorize the Central Bank of Ecuador and the
financial, securities and insurance entities, new

national financial and securities regimes and

activities that, without being prohibited, are necessary

insurance;

for the fulfillment of the policy objectives
monetary, financial, credit, exchange, securities and

52. Require external auditors and rating agencies
risk the necessary information;

insurance, in accordance with the regulations issued
for the effect;

53. Determine the value of the coverage that is paid with
charge to the Private Insurance Fund;

38. Require the suspension of the application of the rules
issued by control bodies;

54. Regulate the instrumentation of the alternation of the
administrators of financial sector entities

39. Establish units of account;

popular and supportive; Y,
40. To know the reports that they present, in the field of
its powers, the Central Bank of Ecuador, the
control bodies and the Insurance Corporation of
Deposits, Liquidity Fund and Insurance Fund
Private, on the state of the monetary and

55. Exercise the other functions assigned by law.
For the fulfillment of these functions, the Board will issue
the rules in the matters of its competence, without
that may alter the legal provisions. Board

financial and financial entities, insurance

may issue regulations by segments, activities

and values;

economic and other criteria.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 9

The Board may directly request the information that

The Administrative Secretary of the Board will keep a list

deems necessary, without any restriction, to the Bank

orderly of all files and reserved information, in

Central del Ecuador, to the superintendencies described in

which will include the qualification date and reservation period

this Code, to the Internal Revenue Service, to the Service

and the reasons behind it. The person who spreads

National Customs, to the State portfolio in charge of the

reserved information will be sanctioned in accordance with the

public finances, to the Insurance Corporation of

law.

Deposits, Liquidity Fund and Private Insurance Fund
Article 18.- Advisory Council. It is the instance of

and to the Financial Analysis Unit.

advisory character for policy feedback
public.

The Board may, through the respective bodies
control, require information from the system entities
national financial, securities and insurance and all

This instance will have representation from civil society; from
the productive sectors; of the popular and solidarity sectors

non-financial entity that grants credit over the
limits established by the Board, being the obligation of these
entities provide it within the deadlines established

and private of the national financial system, whose election,
participation and requirements of people and organizations
They will be determined in the regulations issued by the Board.

set for the effect.

The Board may have the advice and consultancies that
deems necessary for the effective fulfillment of its
functions.

Article 19.- Operation. The Board will meet from
ordinary way every month and extraordinary way
when called by its president, ex officio or at the request of
at least two of its members, to discuss issues

Article 15.- Macroeconomic powers. The Board of
Monetary and Financial Policy and Regulation may
establish conditions and limits to the position in assets

specific.
The quorum required for the installation of the Board is
three voting members.

external entities that financial, securities and
insurance, as well as non-financial entities that

The decisions of the Board will be taken by simple majority,

grant credit over the limits established by the

Unless the law establishes, for certain matters,

Board, keep on the outside.

different treatments. In the event of a tie, the President
of the Board will have a casting vote.

The Monetary and Financial Policy and Regulation Board
may establish conditions and limits to indebtedness

The votes of the members of the Board will be expressed in

external than financial, securities and insurance entities

positive or negative form and abstention is not allowed. The

and non-financial entities that grant credit for

Votes will represent the institutional point of view.

on the limits that the Board establishes, the country contracts
abroad. In addition, you may establish conditions and

The Board shall issue the rules that regulate its

limits to the amounts of surety bonds, guarantees, guarantees or

operation, based on the provisions of this

any other contingent granted by the entities of the

Code.

national financial system to any natural person or
Article 20.- Jurisdiction. The members of the Board will enjoy

legal.

Jurisdiction of the National Court of Justice for the acts and
The Monetary and Financial Policy and Regulation Board

administrative decisions taken in the exercise of their
functions.

may provide that foreign exchange from
operations that she determines, enter in a
mandatory to the country and will establish fines up to the amount
of unpaid currencies, in the event of a breach of
such obligation. Said fines will be imposed by the Bank
Central of Ecuador. In case of not being able to collect these
obligations through bank debits, we will proceed to
collection through coercive means.

Article 21.- Acts of the Meeting. The acts of the Board
enjoy the presumption of legality and will express themselves
through resolutions that will have binding force and
They will come into force from the date of their publication in the
Official Registry, except those with respect to which the
Board itself, by reason of the matter, order that they govern
from the date of issue, without prejudice to its

Article 16.- Proposals to the Meeting. The organisms of
control, the Central Bank of Ecuador and the Corporation of
Deposit Insurance, Liquidity Fund and Fund of
Private Insurance, within the scope of their respective
competencies, may prepare and propose to the Board or
request for it, plans, studies, analysis, reports and
policy and regulatory proposals.

subsequent publication in the Official Registry. In these cases,
Those resolutions will be published on the website of the
Monetary and Financial Policy and Regulation Board, in the
maximum period of twenty-four hours from its issuance,
except those classified as reserved.
The Board, for the formation and expression of its will
political and administrative, does not require the participation of a

Article 17.- Reserved information. With the objective of
safeguard the monetary, financial sustainability, of
insurance and securities, the Board may reasonably qualify
as reserved the information related to the areas
of its management, in accordance with the procedure

a different entity or the approval of its actions by
other organs or institutions of the State.
Article 22.- Claims and resources. The acts
administrative or regulatory of the Board may be subject to

set for effect.

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10 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

of challenge, modification, revocation or repeal, of

Article 28.- Heritage. The Central Bank of Ecuador

conformity with determined rules and procedures

will have its own patrimony, which will be constituted by the

in the Statute of the Administrative Legal Regime of the

capital, general reserve fund, reserves

Executive function, according to the nature of the act.

special, the reserve for revaluation of the patrimony, the
operating reserve, the valuation surplus and the

Article 23.- Chairman of the Meeting. Will act like

results of the bank's management.

President of the Board of Monetary Policy and Regulation and
Finance the head of the Ministry of State in charge of the

The Monetary and Financial Policy and Regulation Board

economic policy, strategic entity responsible for

may establish, in coordination with the governing body of the

processes necessary for the organization and management of the

public finances, the inclusion of other items

economic policy and macroeconomic programming and its

patrimonial.

consistency.
Article 29.- Capital. The capital of the Central Bank of
In the absence of the Chairman of the Board, he will assume the

Ecuador is exclusive property, non-transferable and

presidency the delegate of the President of the Republic.

unattachable from the Republic of Ecuador and is

Article 24.- Functions of the Chairman of the Board. The
Chairman of the Board will have the following functions:

constituted by the contributions in money or in kind made
the governing body of public finances.
Article 30.- Utilities. The Bank's profit or loss

1. Exercise the representation of the Board;

Central del Ecuador is the net result obtained in the
2. Execute and comply with the decisions of the

management of the institution during a financial year, the
which will correspond to the duration of a calendar year.

Council;
3. Summon, preside over and direct the sessions of the Board;

At the end of each fiscal year, they will be credited to the
general reserve net profits, until the amount of

4. Inform the Board about the execution and application of
policies and regulations; Y,

said account is equal to 500% of the paid capital of the
Central bank of Ecuador. When this percentage is

5. Any other tasks entrusted to it by the Board.

complies, up to 100% of the profits may be transferred
to the General Budget of the State.

Article 25.- Administrative Secretary of the Meeting. The
Administrative Secretary will be appointed by the Board and

If 100% has not been transferred, the balance will be

will have the following functions:

may transfer to the general reserve fund, prior
approval of the Monetary Policy and Regulation Board and

1. Carry out the summons to the meetings of the Board;

Financial

2. Keep the minutes of the sessions;

If there are losses at the end of a year, they will be
compensated with the general reserve fund or if this is

3. Attest to the resolutions of the Board;

insufficient, they will be charged to capital.

4. Maintain the files of the Board; Y,

The Monetary and Financial Policy and Regulation Board
will arrange the capitalization of the Central Bank of Ecuador

5. The others assigned by the Board and this Code.

when needed. For this purpose, a report will be required
favorable of the governing body of public finances.

To be Secretary of the Board, it will be required to have a title
professional of at least third level in the subjects

Article 31.- Financial statements. At the end of each

related to the functions of the Board.

exercise, the Central Bank of Ecuador will prepare the balance
Bank Section 2

Central of Ecuador

situation and profit and loss statement of the
institution. The elaboration of the aforementioned states
financial will be carried out in accordance with the principles of general

Article 26.- Nature. The Central Bank of Ecuador is
a legal person governed by public law, part of the
Executive function, of indefinite duration, with autonomy
administrative and budgetary, whose organization and
functions are determined in the Constitution of the
Republic, this Code, its statute, the regulations
issued by the Monetary Policy and Regulation Board and
Financial and internal regulations.

acceptance in the matter, in accordance with the regulations
to be issued by the Policy and Regulation Board for this purpose
Monetary and Financial.
Article 32.- Quarterly report. The Central Bank of
Ecuador will present to the Policy and Regulation Board
Monetary and Financial a quarterly report on its
financial situation, reserves and asset position
external, accompanied by the respective states

Article 27.- Purpose. The Central Bank of Ecuador has

financial documents that must be delivered to the

by purpose the implementation of monetary policies,

course of the following month, signed by the Manager

credit, exchange and financial state, through the

General and the General Accountant of the bank.

use of the instruments determined in this Code and the
Article 33.- Balance of the Central Bank. The Board of

law.

Monetary and Financial Policy and Regulation shall
establish policies aimed at ensuring quality and

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 11

liquidity of assets on the balance sheet of the Central Bank of

open market, forex trading, between

Ecuador, to appropriately support its liabilities, and

others;

will issue the necessary regulations for the chart of accounts,
accounting records and the preparation of statements

9. Promote financial inclusion, increasing the
access to quality financial services, in the field

of the Central Bank of Ecuador.

of your competition;
The operations with financial derivatives carried out by the
Central Bank of Ecuador must abide by the rules
on accounting, financial and operational aspects that

10. Direct and promote monetary and financial integration
regional;

issued by the Monetary Policy and Regulation Board and
Financial

11. Manage the financial assets of the Central Bank of the
Ecuador in the country and abroad;

Article 34.- Budget. The Bank's budget
Central del Ecuador will be financed with the income

12. In coordination with the control bodies, evaluate

obtained by their own management and will be prepared based on the

and manage monetary and financial systemic risk,

guidelines issued by the Policy and Regulation Board

for macro prudential supervision purposes;

Monetary and Financial and other laws related to the
matter.

13. Exercise the sanctioning authority, in accordance with
this Code;

The budget of the Central Bank of Ecuador will be
approved by the Monetary Policy and Regulation Board and
Financial

14. Know and resolve claims and resources
administrative by acts of the institution itself;

In the event that the income from the management of the Central Bank
of Ecuador are not sufficient for the operation, the
rector ministry of public finances will assign the
corresponding budget items, in accordance
with the procedures provided in the Organic Code
of Planning and Public Finance.

15. Prepare, in coordination with the ministry in charge of the
economic policy, forecasts and estimates
economic-financial;

16. Prepare, in coordination with the ministry in charge of the
economic policy, sustainability report

Article 35.- Privileged credits. The credits and
Obligations owed to the Central Bank of Ecuador
they will enjoy preference, in the terms of this Code.
Article 36.- Functions. The Central Bank of Ecuador
has the following functions:

to the Monetary Policy and Regulation Board
and Financial;
17. Project, in coordination with the governing body of the
public finances and the ministry in charge of policy
economic, the global liquidity levels of the
economy and monitor it;

1. Implement and execute policies and regulations
issued by the Monetary Policy and Regulation Board
and Financial for the monetary and financial systems,
monitor and supervise its application, sanction its
non-compliance, within the scope of its powers, and
report your results;

18. Provide the means of payment necessary for the
economic system operates efficiently,
compliance with the standards issued by the Board;
19. Determine the characteristics and manage the provision,
minting, circulation, exchange, withdrawal and demonetization
of coins;

2. Administer the national payment system;
3. Monitor and supervise the auxiliary payment systems;

20. Provide exclusively national metallic currency,
as well as electronic currency, within the framework of the policy

4. Guarantee the supply and distribution of species

issued by the Monetary Policy and Regulation Board
and Financial;

monetary and money in the country;
5. Acquire titles and obligations issued by the governing body
of public finances, in accordance with the
Board regulations;

21. Authorize correspondents;
22. Operate the central payment system;
23. Monitor compliance with the standards of

6. Issue securities;

performance issued by the Board for the system
7. Carry out rediscount operations with entities

national payments;

of the national financial system that comply with the
requirements determined by this Code and the Board of
Monetary and Financial Policy and Regulation;

24. Exercise surveillance and supervision of the systems
payment auxiliaries, ensuring compliance with the
regulations to which they are subject;

8. Manage the liquidity of the economy to boost the
development objectives of the country, using instruments

25. Monitor compliance with interest rates
approved by the Board;

direct and indirect, such as operations

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12 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

26. Manage reservations, optimizing profit

Article 37.- Contracting of the Central Bank of the

national economy of domestic investments and

Ecuador. The contracting of the services required by the

external, subject to safety principles,

Central Bank of Ecuador that contribute to the investment of

liquidity and profitability;

reserve, asset and liability position management
external, monetary and non-monetary gold and the

27. Implement domestic investment, subject to the
established in the policies approved by the Board;

sustainability of the monetary system, will be subject to
special regime determined in article 2 numeral 10
of the Organic Law of the National Contracting System

28. Act as depositary of the resources of third parties, in

Public.

the cases in which the law orders that there be a deposit;
Article 38.- External credits. The Central Bank of
29. Act as fiscal, financial and depositary agent of
public resources;

Ecuador, on behalf of the Ecuadorian State, may contract
external credits to finance the balance of

payments and to meet liquidity needs, with the
30. Service the external public debt and

approval of the Debt and Financing Committee.

internal, legal and legitimate, and retain resources
necessary for your service, in accordance with the

Article 39.- Representation of the State. The bank

stipulations of the respective contracts;

Central del Ecuador, on behalf of the State
Ecuadorian in its relations with the organisms

31. Act as a centralized clearinghouse and

international monetary institutions, will subscribe the contributions and

settlement of securities;

will acquire the shares and securities of those institutions.

32. Act as trustee;

Article 40.- Public sector deposits. The resources
public institutions, organizations and companies of the

33. Commercialize gold from small mining

non-financial public sector will be kept on deposit in

and artisanal mining, directly or through

the Central Bank of Ecuador, in accordance with the

intermediary of public and private economic agents,

regulations issued by the Board.

which must be previously authorized by the
Central bank of Ecuador;

The entities of the national financial system will participate
in the collection of public resources, through

34. Carry out operations and implement instruments

collecting accounts in the name of public entities not

that have a monetary or financial nature and are

financial, in accordance with the regulations that

necessary for the fulfillment of the objectives of

issued by the Board. The balance of these accounts will be transferred from

monetary politics;

automatically to the accounts that correspond to the
respective public institutions in the Central Bank of the

35. Present the reports required by the Board;

Ecuador, in accordance with the regulation issued
for the effect.

36. Offer debt collection services between
public sector entities and between governments

The entities of the national financial system may not

Decentralized Self-Employed with private entities;

open, on behalf of public institutions, another type of
accounts, unless they have the authorization granted by

37. Offer financial services and investments to the
international community of central banks;

board. This prohibition will apply especially to
accounts with turning capacity.

38. Be accountable for their management to the Board and to the
citizenship;

The entities of the national financial system will identify
clearly in their records the ownership of the

39. Establish procedures and mechanisms for

accounts of the preceding paragraph and will send to the Central Bank

hedging exchange risk in operations that

of Ecuador the balances and movements made with

perform in foreign currency; Y,

charge to those, with the periodicity that it determines.

40. The others assigned by law and the Board of Policy and

The non-observance of this article will be sanctioned according to

Monetary and Financial Regulation.

to the law.

The Central Bank of Ecuador, for the fulfillment of its

Article 41.- Financial operations of the public sector

purpose, you can perform all acts, contracts and

not financial. Institutions, organizations and companies

operations in the country or abroad that are necessary

of the non-financial public sector must carry out through

and request background, status or general information

of the Central Bank of Ecuador, or its accounts, all

or special to public and private institutions,

the payments they have to make, as well as all the

organizations of the popular and solidarity economy and

financial operations that require, in accordance with the

State control agencies, in accordance with the

regulations and exceptions issued by the Policy Board and

functions granted by the Constitution of the Republic,

Monetary and Financial Regulation.

this Code, its Statute and the other compatible functions
with its nature as a central bank that are assigned

Non-financial public sector entities may not

by legal mandate.

make financial investments, with the exception of the entity

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 13

rector of public finances, security entities

functional. The functional organic must be processed in

social, the Decentralized Autonomous Governments, and the

in accordance with the provisions of the Organic Law of the

Deposit Insurance Corporation and Liquidity Fund,

Public service.

Unless expressly authorized by the Board.
Article 48.- General Manager. The General Manager of the
Operations carried out by public institutions or

Central Bank of Ecuador will be appointed by the Board of

public companies, through the Central Bank of Ecuador,

Monetary and Financial Policy and Regulation.

as a financial agent of the State, either in the country or in the
Article 49.- Functions of the General Manager. Manager

exterior, are public in nature.

General of the Central Bank of Ecuador will have the
Non-observance of the provisions of this article will be

following functions:

sanctioned according to the law.
1. Exercise the legal, judicial and extrajudicial representation of the
Article 42.- Correspondence agreements. The bank

Central bank of Ecuador;

Central del Ecuador can enter into agreements
2. Direct, coordinate and supervise the technical and operational management

correspondent with the entities of the financial system
national or foreign, for the collection, collection and payment

and administrative authority of the Central Bank of Ecuador, for

of public resources and for other financial operations.

which

will issue

the

regulations

corresponding;
Article 43.- Information on currency trading
3. Select and hire the qualified external auditor

other than the dollar. The entities of the financial system

previously by the Superintendency of Banks;

authorized to trade in currencies other than the
dollar will be communicated to the Central Bank of Ecuador, in

4. Act as the appointing authority;

form and with the periodicity determined by the Board, the
amounts and exchange rates of the operations carried out

5. Monitor compliance with the regulations issued by the

and they will provide you with the information that the Bank requires

Monetary and Financial Policy and Regulation Board,

about the movement of your currency accounts. The

within the scope of its competence;

failure to comply with this provision will be sanctioned as
very serious infraction in accordance with this Code.

6. Authorize the operations of the Central Bank of Ecuador
that are not expressly reserved for the Board of

Article 44.- Guarantee deposits in favor of the State.

Monetary and Financial Policy and Regulation;

Deposits in guarantee, sureties or bonds in money to
favor of the State or any other institution,

7. Act, within their powers, in relationships or

public sector organizations and companies and all

negotiations with foreign banks, with other

other money deposits that must be constituted in

central banks and financial institutions

Guarantee by legal or judicial mandate will be made in the Bank

international; Y,

Central del Ecuador or in correspondents authorized by
this.

8. The others that correspond to it in accordance with this
Code.

Article 45.- Special accounts. The Board of Policy and
Monetary and Financial Regulation may authorize

Article 50.- Requirements for General Manager. To be

entities other than those that make up the Budget

appointed General Manager of the Central Bank of Ecuador

General of the State the creation of special accounts

the following requirements must be met:

within the Single Current Account of the National Treasury.
1. Ecuadorian citizen;
The special accounts of all public companies
nationals are part of the Single Treasury Account

2. Third-level professional degree in economics, finance,

National.

administration, law or related areas;

Article 46.- Unattachable. Deposits of

3. Professional experience in related areas of at least

public entities and the resources of the Corporation of

minus five years;

Deposit Insurance, Liquidity Fund and Fund of
4. Not be involved in conflicts of interest; Y,

Private Insurance in the Central Bank of Ecuador or in its
accounts, both in the country and abroad, are

5. Meet the requirements to be a civil servant or

unattachable, enjoy sovereign immunity and cannot

public server.

be subject to any type of pressure or preventive measure or
precautionary.

Article 51.- Labor Regime. The functionaries,
The Ecuadorian State will grant equal treatment to the assets

servers and workers of the Central Bank of Ecuador

deposited or entrusted in the country by banks

will be subject to the provisions of the Organic Law of the

central or monetary authorities of other countries, under the

Public Service and Labor Code, as the case may be.

principle of reciprocity.
Article 52.- Jurisdiction. The General Manager, the Assistant Manager
Article 47.- Administrative structure. The structure

general, directors and officers appointed to participate

administrative office of the Central Bank of Ecuador will be established

in the monetary and financial supervision processes

in the statute and in the respective organic

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14 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

National Payment System, will enjoy Court jurisdiction

public sector companies, under any modality,

National Justice, for acts and decisions

Except for the implementation of contingents of the

administrative that they adopt in the exercise of their functions

public enterprises;

specific.
3. Grant with resources from the Central Bank of Ecuador
Article 53.- Prohibitions. The General Manager and

grants, donations or contributions in favor of

Servants of the Central Bank of Ecuador may not

any natural or legal person, public or private,

integrate the boards or organizations that take their place

Except for own property, whose transfer to other

in private financial entities, in private entities

public sector entities free of charge may

of the stock market, in insurance companies and

carry out as provided by law; Y,

private reinsurance or in financial sector entities
popular and supportive. The General Manager may not

4. Guarantee and counter-guarantee operations in the sector

perform other public functions, with the exception of

private. This prohibition does not apply to

delegations conferred by the President of the Republic and

counter-guarantees in operations that affect the balance

university teaching.

commercial, provided they have a deposit
monetary for 100% of its value in the Central Bank

The General Manager and the servers of the Central Bank of the

of Ecuador, in accordance with the regulations that

Ecuador, are subject to the limitations provided in the

issued by the Board.

Article 8.
Article 54.- Claims and resources. The acts

Article 57.- External control. The Central Bank of

administrative or regulatory issued by the Bank

Ecuador is subject to the following external controls:

Central del Ecuador will be subject to the rules and
procedures determined by the Statute of the Regime

1. Of the Office of the Comptroller General of the State, for the use of

Administrative Law of the Executive Function, regarding

public resources, in the part corresponding to the

its challenge, modification, revocation or repeal, in

administrative management of the Bank;

Their case.
2. From the State Comptroller General's Office for verification

Article 55.- Publications. The Central Bank of Ecuador

compliance with regulations and resolutions

will prepare and publish on its website and / or by any

issued by the Monetary Policy and Regulation Board

other means, with the periodicity determined by Management

and Finance and the Central Bank of Ecuador itself, from

General, the following information:

the execution of monetary policy instruments
indicated in this Code, of asset management

1. The figures corresponding to the indicators

financial, the operation of the central system of

monetary, financial, credit and exchange rates;

payments and the evaluation of the management system
2. The macroeconomic synthesis statistics of the country;

risks of the Central Bank of Ecuador.

3. Interest rates;

The Board may additionally determine other types of
reports and their periodicity.

4. Authorized payment systems and institutions
authorized to operate; Y,

External audit reports will be reserved; Y,

5. The additional information required by the Board.

3. Of the Superintendency of Banks in the scope of its
competence.

To comply with this provision, the Bank may
require natural and legal persons of law
public and private the information it deems necessary.

Article 58.- Internal control systems. The bank
Central del Ecuador must have control systems

The publication of the balance sheet of the Central Bank of Ecuador

internal to ensure the effectiveness and efficiency of its

it will be done at least monthly.

activities, the reliability of the information and the
compliance with applicable laws and regulations.

Article 56.- Prohibitions. The Central Bank is prohibited
from Ecuador the following:

Likewise, it will have an internal auditor appointed by the
Comptroller General of the State, who will carry out

1. Acquire or accept company shares as collateral

exclusively the internal control of public resources

of any kind and participate, directly or indirectly,

in the part corresponding to the administrative management of the

in companies or societies, with the exception of

Bank, in accordance with the regulations issued by said body

shares or participations that you acquire in institutions

control, and an internal auditor, qualified by the

international monetary or financial;

Superintendency of Banks, designated by the bank, which
will be in charge of the internal control of operations

2. Assume with Bank resources direct obligations or
indirect, subsidies, aid or transfers that

determined by the Board, in accordance with the

correspond to the national government and other entities and

article 14 numeral 36.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 15

Section 3 Of the

its operation, the financial activities that

Superintendency of Banks

provide, through permanent preventive supervision
extra on-site and on-site inspection visits, without restriction

Article 59.- Nature. The Superintendency of Banks

some, according to best practices, that

is a technical body governed by public law, with

make it possible to determine the economic and financial situation

legal personality, part of the Transparency Function

of the entities, the management of their businesses, evaluate the

and Social Control, with administrative, financial,

quality and control of risk management and verify the

budgetary and organizational, whose organization and

veracity of the information they generate;

functions are determined in the Constitution of the
Republic and the law.

8. Establish intensive supervision programs at
controlled entities, without any restriction;

Article 60.- Purpose. The Superintendency of Banks
9. Require controlled entities to submit and adopt

will carry out the surveillance, audit, intervention, control and
supervision of the financial activities carried out by the

the corresponding corrective measures and

public and private entities of the Financial System

sanitation;

National, with the purpose that these activities are
10. Provide controlled entities with increases in

subject to the legal system and serve the interest

capital subscribed and paid in cash, as a measure

general.

of a preventive and prudential nature;
Article 61.- Budget. The budget of the
11. Take care that the information of the entities under its

Superintendency of Banks will be part of the Budget

control, which must be public knowledge, are

General of the State and will be subject to the norms and

clear and truthful for your full understanding;

procedures established in the Organic Code of
Planning and Public Finance and its regulations

12. Answer inquiries about the matters of your

high school.

competence;
Article 62.- Functions. The Superintendency of Banks

13. Channel and verify the delivery of information submitted

has the following functions:

secrecy and secrecy, required by the Board of Policy and
Monetary and Financial Regulation. Same function

1. Exercise surveillance, audit, control and supervision of the

will comply with the information required at

compliance with the provisions of this Code and

public and private financial entities, for the use of

the regulations issued by the Policy Board and

other State institutions;

Monetary and Financial Regulation, in what
corresponds to financial activities carried out by

14. Establish the amounts and procedures that allow

the entities that make up the financial sectors

investigate the origin and provenance of the resources of

public and private;

currency exchange operations or any
currency collection mechanism;

2. Authorize the organization, termination and liquidation of
the entities that make up the Financial Sector

15. Authorize the total transfer of assets, liabilities and of the

Public;

rights contained in entity contracts
financial entities subject to its control;

3. Authorize the constitution, denomination, organization and
liquidation of the entities that make up the Sector

16. Protect the rights of customers and users

Private Financial;

financial issues and resolve disputes in the field
administrative that are generated with the entities under their

4. Authorize the activities of the entities that

control, for which you may request or practice ex officio,

make up the public and private financial sectors;

as the case may be, the necessary control actions
5. Inspect and sanction natural persons or

for its clarification;

legal entities that are not part of the popular economy and
17. Establish mandatory clauses and prohibitions

solidarity and that they exercise, contrary to the provisions of this

of contracts whose object is the provision of

Code, financial activities reserved for
entities

of

System

Financial

financial services;

National,

especially the capture of resources from third parties.
18. Approve the bylaws of the entities of the

For this purpose, it will act on its own initiative or by

public and private financial sectors and

complaint;

modifications that occur in them;
6. Exercise the sanctioning power over entities
19. Carry out the necessary investigations to authorize

under its control and over natural persons or
that violate the provisions of this

inscriptions in the Book of Shares and Shareholders of

Code, within the scope of its competence;

private financial entities, in cases
indicated in this Code;

7. Ensure stability, solidity and correct
20. Remove administrators and other officials from

operation of the entities subject to its control and,

the entities under its control and initiate, when the

in general, ensure that they comply with the rules that govern

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16 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

case, legal actions against you, for infractions

Article 65.- Labor Regime. The functionaries,

to this Code and to current regulations for reasons

Servants and workers of the Superintendency of Banks

duly motivated;

will be subject to the provisions of the Organic Law of the
Public Service or the Labor Code, as the case may be.

21. Control that the entities of the financial system
public and private comply with the decisions taken

Article 66.- Jurisdiction. The mayors, directors,

by the Monetary Policy and Regulation Board and

temporary administrators, liquidators, auditors and

Financial;

officials appointed by the Superintendency of Banks
to participate in the processes of supervision, exclusion and

22. Propose policies and regulations to the Policy Board

transfer of assets and liabilities and liquidation, will enjoy

and Monetary and Financial Regulation, in the field of

jurisdiction of the National Court of Justice, for the acts and

their powers;

administrative decisions adopted in the exercise of
its specific functions.

23. Report to the Monetary Policy and Regulation Board and
Financial control results;

Article 67.- Superintendent. The Superintendency of
Banks will be directed and represented by the

24. Qualify natural and legal persons who

Superintendent.

perform supervisory support work, such as
internal auditors, external auditors, experts

Article 68.- Designation and requirements. The designation of the

risk appraisers and rating agencies, among others;

Superintendent of Banks and the duration of his
position are those established in the Constitution of the

25. Appoint temporary administrators and

Republic, the law and the respective regulations.

liquidators of the entities under their control;
The requirements to be a Superintendent of Banks are the
26. Provide the reports or certifications of any

following:

entity subject to its control, in order to obtain
loans from international organizations for the

1. Ecuadorian citizen;

development of economic programs, at the request of those
2. Third-level professional degree in economics, finance,

agencies or during its term, in accordance with

administration, law or related areas;

the regulation established by the Board;

3. Professional experience of at least ten years in

27. Impose the sanctions provided for in this Code; Y,

related areas;
28. Others assigned by law.
4. Not be involved in conflicts of interest; Y,
The superintendency, for the fulfillment of these
5. Meet the requirements to be a civil servant or

functions, may issue all acts and contracts that

public server.

are necessary. Likewise, it may issue the rules in
the subjects of their competence, without being able to
alter or innovate the legal provisions or the

Article 69.- Functions of the Superintendent. The

regulations issued by the Policy and Regulation Board

Superintendent has the following functions:

Monetary and Financial.
1. Exercise the legal, judicial and extrajudicial representation of
the Superintendency;

Article 63.- Power to request information. The
Superintendency is empowered to request at any

2. Direct the actions of surveillance, auditing, supervision and

moment, to any entity under its control, the

control of competition of the Superintendency;

information that you consider pertinent, without any limit, in
the scope of its competence.

3. Direct, coordinate and supervise the administrative management of
the Superintendency, for which it will issue the

Similarly, the Superintendency of Banks may

corresponding internal regulations;

request information from shareholders, members of the
directory and legal representatives of the institutions

4. Agree, celebrate and execute, on behalf of the

subject to your control.

Superintendency of acts, contracts, agreements and
legal business that requires institutional management and

Article 64.- Management and structure. The Superintendency

the obligations that you contract;

of Banks may establish regional governments within
of the national territory.

5. Act as the appointing authority;

The administrative structure of the Superintendency will have

6. Prepare, approve, prior to its submission to the governing body of the

with the instances, municipalities specialized in the

public finances, and execute the annual budget of the

public and private financial sectors, units, divisions

Superintendence;

technical and advisory bodies established in the
respective organic statute by processes, which must be

7. Exercise and delegate coercive jurisdiction; Y,

approved in accordance with the provisions of the Law
Organic of the Public Service.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 17

8. Exercise the other functions assigned by law.

of legality, and its execution will not be suspended by the
filing, admission to processing or substantiation of

Article 70.- Rendering of accounts. The Superintendency

claims or resources.

of Banks will establish mechanisms for the rendering of
accounts about their activities.

The normative acts may be amended or repealed
at any time, by the body that issued it or

Article 71.- Acts of control. The Superintendency of

party petition, by filing a claim

Banks, in the fulfillment of their functions, may use

administrative.

any modality, mechanism, methodology or
control instruments, on-site or off-site, internal or

Administrative acts that produce legal effects

external, considering the best practices, being able to

individuals directly, issued by any

require that all

organ of the Superintendency, they may be revoked or

values,

books,

vouchers

from

accounting,

reformed only by the Superintendent of Banks,

correspondence and any other related documents

prior filing of the appeal within the

with the business or with controlled activities, without

within ten days of the notification of the resolution

may claim reservation of any nature or provide the

contests. The pronouncement in this case will cause status.

practice of any other action or diligence.
There is no appeal to what was resolved by the
The Superintendency of Banks, within the acts of

Superintendent of Banks, not even in the event that the act

control, you may order the application of any measure

that it is intended to challenge has been known and resolved

contemplated in this Code that leads to correcting the

by him in the first administrative instance.

observations evidenced by the control body and
Extraordinarily, by review, the Superintendent

apply sanctions in case of non-compliance.

of Banks may revoke or amend any act
The control acts of the Superintendency of Banks

administrative, either ex officio or on the occasion of the presentation

enjoy the presumption of legality, they will have force

of the respective appeal, within a period of one year, which is

mandatory and will take effect from the date of their

will count from the notification of said act. The revision

notification.

will only take place if the contested administrative act
was dictated with evident error of fact or of

The Superintendency of Banks, for training and

right that appears from the documents that appear in the

expression of their political and administrative will, not

file or express legal provisions or when,

requires the assistance of a different entity or approval

later, valuable documents appear

of their acts by other bodies or institutions of the

transcendental ignored when issuing the act or resolution

Condition.

in question.

Article 72.- Reports. The

The Superintendency will regulate the content and procedure

audit reports, inspection, analysis and documents

to be observed in the matter of challenge,

qualify as such by the Superintendent, with the

repeal, revocation and reform of these acts.

purpose of safeguarding the stability of entities
public and private financial institutions, and those who issue

Section 4

Servants and officials of the Superintendency in the

Of the Superintendency of Popular Economy and

exercise of its control functions. The superintendency,

Solidarity

if deemed necessary and if there are observations, it will transfer
the reports to the knowledge of the authorities

Article 74.- Scope. The Superintendency of the Economy

corresponding of the examined entity. These reports

Popular and Solidarity, in its organization, operation and

will not be disclosed to third parties, in whole or in part, by the

control and supervision functions of the financial sector

Superintendency, by the entity examined or by any

popular and supportive, will be governed by the provisions of this

person to act for them, except when required by the

Code and the Organic Law of the Popular Economy and

Monetary and Financial Policy and Regulation Board or in

Solidarity.

the case of having determined indications of responsibility
criminal, which must be brought to the attention of the

The Superintendency of Popular and Solidarity Economy,

State Attorney General's Office.

in addition to the powers granted by the Organic Law
of Popular and Solidarity Economy, will have the functions

These reports will lose their reserved status

determined in article 62, except numerals 18 and

after one hundred and eighty days from the date of the

19. Numeral 10 of the cited article will apply

resolution that provides for the liquidation of an entity.

recognizing that the entities of the popular economy and
solidarity have unlimited capital.

When an investigation process had begun in
an institution of the financial system, the reports of

The acts issued by the Superintendency of the Economy

audit will not be reserved or enjoy

Popular and Solidarity shall enjoy the presumption of legality and

of bank secrecy before the National Assembly, Prosecutor's Office

will be subject to the provisions of article 73 regarding

General of the State and General Comptroller of the State.

its challenge, reform or termination.

Article 73.- Claims and resources. The acts issued

Article 75.- Labor Regime. The functionaries,

by the Superintendency of Banks enjoy the presumption

servers and workers of the Superintendency of

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18 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Popular and Solidarity Economy will be subject to the

Legal persons that are not part of the System

provisions of the Organic Law of Public Service and

Financiero Nacional, and that are not under the control of the

Labor Code, as the case may be.

Superintendency of Popular and Solidarity Economy, which
as part of the specific line of business they carry out

Article 76.- Jurisdiction. The mayors, directors,

credit operations over the limits established

temporary administrators, liquidators, auditors and

the Monetary and Financial Policy and Regulation Board,

officials appointed by the Superintendency of

will be controlled by the Superintendency of Companies,

Popular and Solidarity Economy to participate in the

Securities and Insurance, in accordance with this Code.

processes of supervision, exclusion and transfer of
assets and liabilities and liquidation, will enjoy Court jurisdiction

Section 6

National Justice, for acts and decisions

From the Deposit Insurance Corporation, Fondo de

administrative that they adopt in the exercise of their functions

Liquidity and Private Insurance Fund

specific.
Article 79.- Nature. The Insurance Corporation
Article 77.- Reports. Audit reports,

Deposits, Liquidity Fund and Private Insurance Fund

inspection, analysis and those issued by the servers and

It is a legal person of public law, not financial,

officials of the superintendency, in the exercise of the

with administrative and operational autonomy.

control and surveillance functions, will be written and
reserved, as well as the documents that the

Article 80.- Functions. The Insurance Corporation

Superintendent qualify as such under

Deposits, Liquidity Fund and Private Insurance Fund

safeguard the stability of its controlled. The

has the following functions:

Superintendency, if the case is believed and if
observations, will transfer the reports to the knowledge of

1. Manage the Deposit Insurance of the sectors

the corresponding authorities of the examined entity.

private financier and the popular and solidary and the
resources that constitute it;

These reports will not be disclosed to third parties, in whole or in
part, by the Superintendency, by the entity examined or

2. Manage the Liquidity Fund of the sectors

by any person acting for them, except when

private financier and the popular and solidary and the contributions

required by the Monetary Policy and Regulation Board and

that constitute it;

Financial or when indications of
criminal responsibility, which must be reported to the

3. Manage the Private Insurance Fund and resources

State Attorney General's Office.

that constitute it;

These reports will lose their reserved status

4. Pay the deposit insurance;

after one hundred and eighty days from the date of the
resolution that provides for the liquidation of the entity.

5. Pay for private insurance insurance;

When an investigation process had begun in

6. Establish, at the request of the control body and in

an institution of the financial system, the reports of

a period not exceeding ten days, the rule of lesser

audit will not be reserved or enjoy

cost, for which you may request the information that

of bank secrecy before the National Assembly, Prosecutor's Office

considers relevant to the control body and / or the

General of the State and General Comptroller of the State.

entity, having to deliver the information of
mandatory way;

Section 5
Of the Superintendency of Companies, Securities and

7. Within the process of exclusion and transfer of

Insurance

assets and liabilities, acquire assets or rights at their value
nominal or perform any other procedure that

Article 78.- Scope. The Superintendency of Companies,

allow the least cost rule to apply

Securities and Insurance, among other attributions in the matter

regarding the payment of deposit insurance. If they exist

corporate, will exercise surveillance, audit, intervention,

differences between nominal value and market value,

control and supervision of the securities market, of the

the Deposit Insurance Corporation will be established

insurance and private law legal entities

as a creditor of the shareholders and administrators of the

non-financial, for which it will be governed by the provisions

financial entity and administrators of the entities of

of the Companies Law, Securities Market Law, Law

the popular and solidarity economy.

General Insurance, this Code and the regulations that
issued by the Monetary Policy and Regulation Board and

The Corporation may exercise against them all the

Financial

corresponding legal actions;

The acts issued by the Superintendency of

8. Dispose of the assets and rights acquired by the

Companies, Securities and Insurance, within all areas

application of the provisions of the preceding paragraph. The

of their competence, they will enjoy the presumption of legality and

Board will issue the rules that regulate said

will be subject to the provisions of article 73 regarding

alienation;

its challenge, reform or termination, except when the law
regulate another procedure in specific matters.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 19

9. Present to the Monetary Policy and Regulation Board

Article 84.- Designation and requirements. The delegates of

and Financial regulation proposals in relation to

the public entities that are members of the board of directors will be

deposit insurance;

designated by administrative act and must comply
with the following requirements:

10. Cover the risks of private insurance companies
legally constituted in the country that enter

1. Ecuadorian citizen;

forced liquidation; Y,
2. Third-level professional degree in economics, finance,

11. Other functions assigned by law.

administration, law or related areas;

The Corporation will pay the insured deposits in case
3. Professional experience in related areas for

of forced liquidation of a financial institution and

minus five years;

will manage the recovery of insurance resources
tanks used in this process.

4. Not be involved in conflicts of interest; Y,
The Deposit Insurance Corporation and Fund
Liquidity, for the fulfillment of its functions, may

5. Meet the requirements to be a civil servant or

carry out all acts, contracts and operations that are

public server.

necessary.
Article 85.- Functions of the board of directors. The directory of the

The acts issued by the Corporation shall be subject to the

Deposit Insurance Corporation, Liquidity Fund and

rules and procedure determined by the Statute of the

Private Insurance Fund will have the following functions:

Administrative Legal Regime of the Executive Function,
regarding its challenge, modification, revocation or

1. Execute the policies defined by the Policy Board and

repeal, if applicable.

Monetary and Financial Regulation for Insurance

Article 81.- Budget. The budget of the

Deposits, Liquidity Fund and Insurance Fund

Deposit Insurance Corporation, Liquidity Fund and

Private;

Private Insurance Fund will be part of the Budget
2. Approve extraordinary liquidity credits;

General of the State. Deposit insurance resources
that it administers may not be used to finance the

3. Approve the return of contributions to the Fund

Corporation budget.

Liquidity, in accordance with this Code and in accordance
Article 82.- Management and structure. The structure

with the procedure established by the Board;

administration of the Deposit Insurance Corporation,
Liquidity Fund and Private Insurance Fund are

4. Report semiannually or at the request of the Board of

will establish in its bylaws and in the organic bylaws

Monetary and Financial Policy and Regulation on its

by processes, which will be approved in accordance with the Law

activities;

Organic of the Public Service.
5. Select the external audit firm;
Article 83.- Of the directory. The Insurance Corporation
Deposits, Liquidity Fund and Private Insurance Fund

6. Approve the annual budget of the Corporation, prior to

will have a board of directors made up of three full members: a

its submission to the governing body of public finances;

delegate of the President of the Republic, who will preside over it, the
head of the secretary of state in charge of politics

7. Appoint the General Manager;

economic or its delegate and the head of the secretariat of
State in charge of public finances or its delegate.

8. Qualify as reserved the information that could
endanger the normal development of the system

The Superintendent of Banks, the Superintendent of

national financial;

Popular and Solidarity Economy, the Superintendent of
Companies, Securities and Insurance and the General Manager of the

9. Issue administrative regulations and issue manuals

Central Bank of Ecuador or its delegates will participate in

operations that will govern its operation;

Board sessions within the scope of their
powers with voice and without vote.

10. Set annually the amount of the aliquot for the premium
sets and periodically the risk-adjusted premium, to

The General Manager will act as secretary of the board of directors

the Private Insurance Fund;

of the Corporation, who will participate in the deliberations
with voice, without the right to vote.

11. Propose to the Monetary Policy and Regulation Board
and Financial the amount of insurance coverage

When the board deals with issues related to the Fund

private insurance; Y,

of Liquidity, two
additional delegates representing the sector

12. Others that are necessary for compliance

private financial sector and the popular and solidarity financial sector,

of its functions.

respectively, with voice, who will be designated by
in accordance with the regulations issued by the Board.

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20 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

1. Exercise the legal, judicial and extrajudicial representation of

Article 86.- Operation. The board will meet from

the corporation;

ordinarily every two months and so
extraordinary when called by the president or at the request

2. Arrange for the payment of the Deposit Insurance and the

of any of the members to discuss specific issues.

Private Insurance;
The quorum required for directory installation is with
3. Execute the policies established by the Policy Board and

all its members.

Monetary and Financial Regulation and its directory;
The decisions of the board of directors will be taken by majority
4. Authorize the purchase of assets in the exclusion process

simple.

and transfer of assets and liabilities, respecting the rule
the lowest cost;

The votes of the members of the board of directors will be expressed in
positive or negative form and abstention is not allowed.

5. Direct, coordinate and supervise administrative management
The operation of the board of directors will be regulated by the

of the Corporation;

directory.
6. Celebrate on behalf of the Corporation the acts, contracts,
Article 87.- Of the General Manager. The Corporation of the

agreements and legal businesses that the management requires

Deposit Insurance, Liquidity Fund and Fund of

institutional and the obligations that it contracts;

Private Insurance will be directed and represented by the
General Manager.

7. Act as the appointing authority;

Article 88.- Designation and requirements. Manager

8. Prepare and execute the annual budget of the
Corporation;

General of the Deposit Insurance Corporation, Fund
Liquidity and Private Insurance Fund will be designated

9. Exercise and delegate coercive jurisdiction; Y,

by the board of directors and must comply with the following
requirements:

10. Exercise the other functions assigned by law.

1. Ecuadorian citizen;

Article 92.- Jurisdiction. The members of the board of the
Deposit Insurance Corporation, Liquidity Fund and

2. Fourth level professional title in economics,

Private Insurance Fund or its delegates and the Manager

finance, administration, law or related areas;

General will enjoy the jurisdiction of the National Court of Justice for
the administrative acts and decisions taken in the

3. Professional experience in related areas of at least

exercise of their specific functions.

minus five years;

Article 93.- Information to the public. Directory

4. Not be involved in conflicts of interest; Y,

develop and execute a public communication program
in order to disseminate information about the

5. Meet the requirements to be a civil servant or

Mechanisms, benefits and limitations of the Insurance

public server.

Deposits to depositors and the general public.
The General Manager of the Insurance Corporation
Deposits, Liquidity Fund and Private Insurance Fund

Likewise, the board of directors will issue the regulations on

You will not be able to carry out any other public or private activity

information to be provided by financial institutions

paid, except for university teaching.

about insurance coverage, exclusions and payments
of deposits.

Article 89.- Obligations. The members of the board of directors, the
General Manager and other officers of the Corporation

Reports related to financial entities

Deposit Insurance, Liquidity Fund and Fund of

will lose their reserved status after one hundred

Private Insurance must observe, at all times, the

eighty days from the date of the resolution that provides the

principles of prudence and reserve and keeping the secret

liquidation of an entity.

professional regarding the information they handle in the
Title I SYSTEM

fulfillment of its specific functions.
MONETARY
The reports related to the loans of the Fund of

CHAPTER 1 Of the

Liquidity will be reserved.

coin and money
Article 90.- Prohibition. The General Manager of the
Article 94.- Of the currency in the Republic of Ecuador.

Deposit Insurance Corporation, Liquidity Fund and
Private Insurance Fund and the servers of said

All transactions, monetary operations,

institution are subject to the limitations provided in

financial statements and their accounting records, made in the
Republic of Ecuador, will be expressed in US dollars

Article 8.

United States of America, pursuant to this
Code.

Article 91.- Functions of the General Manager. Manager
General will have the following functions:

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 21

Article 98.- Prohibitions. It is generally prohibited:

The circulation, exchange, withdrawal and demonetization of US dollars
the United States of America, currency in the Republic

1. The emission, reproduction, imitation, falsification or

of Ecuador, correspond exclusively to the Bank

total or partial simulation of currency and money, as well as

Central del Ecuador, in accordance with the provisions of

its circulation by any means, support or form of

this Code and with the regulation issued by the Board of

representation;

Monetary and Financial Policy and Regulation.

2. The alteration or transformation of the metallic currency into
The Central Bank of Ecuador is the only authorized entity

circulation, by casting or any other

to provide and manage national metallic currency or

procedure that aims to take advantage of your

electronics in the Republic of Ecuador, equivalent and

metallic content. This prohibition does not apply to

convertible to United States dollars, from

Central bank of Ecuador; Y,

in accordance with the provisions of this Code and with the
regulation and authorization of the Policy Board and

3. The circulation and receipt of currency and money are not

Monetary and Financial Regulation.

authorized by the Board of Policy and Regulation
Monetary and Financial.

The currency determined in this article is the means of payment.
The violation of these prohibitions will be sanctioned
The currency has liberating power and legal tender in the

as provided by the Comprehensive Organic Criminal Code and

Republic of Ecuador within the framework of the regulations that

with the confiscation of said currency and money and of the products

issued by the Monetary Policy and Regulation Board and

acquired with this currency or money.

Financial In no case may the State compel a
natural or legal person with private right to receive

EPISODE 2

currency other than the United States dollar of

Media

America.

pay

Article 95.- Obligation to provide liquidity. The bank

Article 99.- Other means of payment. They are means of payment

Central del Ecuador will be obliged to satisfy

currencies other than the United States dollar of

timely demand for liquidity in the Republic of

America, checks, transfers by means

Ecuador in order to guarantee the development of

electronic or digital, credit and debit cards and

economic transactions.

others of a similar nature, under the terms determined and
regulate the Monetary Policy and Regulation Board and
Financial

For this purpose, it is empowered to make the remittances that
are necessary, which will not be considered operations
import or export. These operations you perform

Article 100.- Obligations in other means of payment. I know

the Central Bank of Ecuador will not be subject to tax

may agree to obligations in means of payment other than

some in the country.

those of article 94, in accordance with the regulations that
issued by the Monetary Policy and Regulation Board and
Financial

Article 96.- Remittances of physical money to guarantee the
circulating. Remittances of physical money to guarantee the
circulating in the national economy, from and to the

If by the act by which a

Ecuador, can only be made by the Central Bank

obligation in which it has been agreed to pay with foreign currency

Ecuador and, exceptionally, by the entities of the

other than the United States dollar, it is

national financial system, in accordance with the regulations

will fulfill the obligation by delivering the agreed currency or

for the purpose dictates the Board of Policy and Regulation

currency determined in article 94, at the exchange rate in force

Monetary and Financial. These operations must comply

the place and date of expiration of the obligation.

with the provisions of the Prevention, Detection and
Article 101.- Electronic currency. Electronic currency

Eradication of the Crime of Money Laundering and

will be put into circulation exclusively by the Bank

Financing of Crimes.

Central del Ecuador, backed with its liquid assets,
based on the policies and regulations issued by the

Article 97.- Currency exchange. The exchange of the currency, to

Monetary and Financial Policy and Regulation Board.

the one referred to in article 94, of any kind or
denomination will be made by the Central Bank of the

Article 102.- Obligations of monetary deposits.

Ecuador, to the bearer and at sight, without charge of any

Only the Central Bank of Ecuador and the entities

nature, by currency of higher or lower denomination

authorized national financial system may contract

as requested. If the Central Bank of Ecuador does not
will arrange

temporarily

from

currency

on

the

required denominations, you can deliver currency in

obligations that have the character of deposits
monetary with third parties.

values ​that are closest to those requested.

CHAPTER 3 Payments and
payment systems

The entities of the national financial system will be
obliged to provide currency exchange services from

Article 103.- National payment system. The system

in accordance with the terms established by the Board of

national payments includes the set of policies,

Monetary and Financial Policy and Regulation, with the

standards, instruments, procedures and services by

exceptions to be determined.

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22 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

means of which are carried out, directly or

In effect, they are legally enforceable and will have equal value

indirect, transfers of managed resources to

legal than written documents.

through means of payment and the settlement of securities between
No judicial order, arbitration decision, act

its various participants.

administrative, precautionary measure or embargo may
The national payment system is made up of the system

suspend, revoke or cancel a payment previously

central payment and auxiliary payment systems. The

ordered by the participant and accepted by the administrator

Central Bank of Ecuador will establish the requirements of

of the system. These measures will only apply to the future and will

operation, authorization, registration and disclosure of

effect from the notification of the competent authority

services and information. The corresponding tariff regime

to the respective entity of the National Financial System or

will be regulated by the Board of Policy and Regulation

of the stock market, the participant or the administrator

Monetary and Financial.

system, as applicable.

The Central Bank of Ecuador will promote the participation of

Electronic signatures and the use of official keys for

the entities that make up the national financial system

transactions channeled through the national system of

in the national payment system, and will have the duty to

payments will have the same validity and the effects will be recognized

promote financial inclusion by expanding the

legal than holographic signatures.

access and use of formal financial services to
Article 107.- Responsibility. The participants of the

segments of the population excluded or with limited access

national payment system must properly maintain

to them.

all supporting documents have been archived and will be
administratively, civilly and criminally responsible for the

The reports issued by the servers and officials of the

requests made based on inaccurate information,

Central Bank of Ecuador, in the exercise of the functions

incomplete or false.

supervision of the national payment system, will be
written and reserved, as well as the documents that the

Article 108.- Compensation and settlement. The bank

General Manager qualify as such under

Central del Ecuador is the clearinghouse and liquidator of

safeguard the stability of the system.

resources in the central payment system and liquidator of
resources in auxiliary payment systems. These

These reports will not be disclosed to third parties, in whole or in

auxiliary systems, as well as system entities

part, by the bank, by the supervised entity or by

national financial institution, they will send with the periodicity and in the

no person to act for them, except when

form determined by the Central Bank of Ecuador the detail

required by the Monetary Policy and Regulation Board and

and the results of the compensation processes to be

Financial or when indications of

liquidated.

criminal responsibility, which must be reported to the
State Attorney General's Office.

The deficiencies in the clearing houses and
liquidation of the central payment system of the entities

Article 104.- Central payment system. The system

that contribute to the Liquidity Fund of the financial system

central payments is the set of policies, regulations,

national will be covered with the resources of said fund.

articulated instruments, procedures and services and
coordinated, by the Central Bank of Ecuador, to

Article 109.- Supervision of the auxiliary systems of

through which resource transfers are made

Payments. The Central Bank of Ecuador will carry out the surveillance

of its participants, as well as their compensation and

and supervision of auxiliary payment systems and their

settlement.

administering entities as well as any
payment infrastructure or resource transfers

The Monetary and Financial Policy and Regulation Board

monetary entities that act in the market, duly

establish the requirements and conditions for access

authorized by the competent authority, to ensure the

to the central payment system.

correct operation of the channels, instruments and
means of payment that are processed through you.

Article 105.- Auxiliary payment systems. The systems
payment aids are the set of policies, regulations,

Administrators of auxiliary payment systems

articulated instruments, procedures and services and

including any payment infrastructure or

coordinated, public or private, authorized by the Bank

transfers of monetary resources, they will be obliged to

Central del Ecuador, interconnected with the central system

send to the Central Bank of Ecuador the information that this

of payments, established to make transfers of

required and within the deadlines that you determine.

resources and compensation among its various participants.
Article 110.- Corrective measures. The Central Bank of
Auxiliary service entities of the financial system

Ecuador will order the application of corrective measures to

that carry out transactional activities and

ancillary payment systems that have breached the

companies that remit money and money orders,

corresponding regulations.

for their operation will require the prior authorization of the
Article 111.- Infractions. The Central Bank of Ecuador

Central bank of Ecuador.

will sanction the entities in charge of the systems
Article 106.- Payments and their irrevocability. The payments

payment assistants and their administrators, when

ordered and accepted through the national system of

applicable, for the following reasons:

payments have the quality of irrevocable, binding and
opposable to third parties, they may not be suspended or left without

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 23

1. Not adjusting the internal regulations to the regulations that

seriousness of the fault, damages caused to third parties,

issued by the Monetary Policy and Regulation Board and

negligence, intentionality, recidivism or any other

Financial;

aggravating or mitigating circumstance.

2. Failure to make changes to the regulations

If the same fact constitutes two or more

internal required by the Central Bank of Ecuador

administrative offenses, the

within the period to be determined;

More serious. If the two offenses are equally serious,
the one that entails a sanction of

3. Modify internal regulations without having the

higher pecuniary value.

prior authorization from the Central Bank of Ecuador;
Firm financial penalties will cause interest
4. Not presenting the information that the Central Bank of the

corresponding.

Ecuador requires or presents it inaccurately,
incomplete or extemporaneous;

The Central Bank of Ecuador will apply the procedure
administrative sanctioning provided in article 277.

5. Provide the Central Bank of Ecuador with information
false related to the respective payment system;

Article 115.- Civil and criminal liability. The
sanctions provided for in this title will be imposed without

6. Failure to comply with corrective measures; Y,

prejudice to civil and criminal liabilities that
correspond and the entity's obligation to correct the

7. Failure to comply with any other obligation provided in this

breach.

Code or in the regulations that regulate the systems of
Payments.

Article 116.- Centralized Deposit of Securities. The
Central Bank of Ecuador will perform the Deposit function

The infractions contained in numbers 1, 2 and 3 will be

Centralized Clearing and Settlement of Securities,

considered serious. Violations of numerals 4,

with securities and intermediaries registered in the Registry of the

5, 6 and 7 will be considered very serious.

Stock market. It will also perform the function of unique
Centralized Deposit for Clearing and Settlement of

Article 112.- Sanctions. For the commitment of the

Securities for the securities that have been issued by the

infractions indicated in the preceding article, the Bank

Central Bank of Ecuador, the governing body of finance

Central del Ecuador will impose the following sanctions:

public and other entities of the public sector.

1. For the serious infractions typified in the numerals

Article 117.- Compensation and settlement systems

1, 2 and 3 a fine of up to three hundred will be applied

of commercial obligations. The Board of Policy and

unified basic wages; Y,

Monetary and Financial Regulation will define the policies and
regulations that will govern the operation of the instruments

2. For the very serious offenses typified in the

that allow non-financial sectors of the economy

numerals 4, 5, 6 and 7, a fine of no less than

the country to access immediate liquidity mechanisms, to

three hundred unified basic salaries, not more than a thousand

through the clearing and settlement of obligations

unified basic wages.

commercial activities generated in the activities of the business
of the business, through the transfer and / or termination of

These sanctions will be applied without prejudice to the obligation

a commercial obligation between the members of the system.

that the entity has to correct the breach that
motivated such sanction. In case of not correcting such

The Board may consider the constitution of a fund, with

non-compliance, the Central Bank of Ecuador will request the
superintendence

respective

the

removal

of

charge to the budget of the Central Bank of Ecuador, to
cover the gaps that arise in the operation of the

internal

corresponding legal representative or, if applicable,
system. The fund may be satisfied with resources of order

suspend the entity in the payment system. The

public.

application of these sanctions does not relieve the responsibility
direct from administrators.

CHAPTER 4
Monetary policy instruments

Article 113.- Sanction for operations without authorization.
The Central Bank of Ecuador will sanction with a fine of

Section 1 Handling the

up to USD 800,000.00 (eight hundred thousand US dollars

liquidity of the economy

United States of America), amount that will be updated
by the Board in accordance with the price index at

Article 118.- Liquidity. The Board of Policy and Regulation

consumer, or up to the income level of the last fiscal year

Monetary and Financial will define the liquidity policies for

economic entity, and the suspension order

guarantee the effectiveness of monetary policy focused on the

immediate operations to the entities that carry out

achievement of the objectives established in this Code.

clearing or settlement without authorization

Likewise, it will establish and regulate the instruments of

respective.

monetary policy to be used, such as: reserves of
liquidity, proportion of domestic liquidity and

Article 114.- Application and sanctioning procedure.

composition of total liquidity, interest rates,

The sanctions will be determined in this Law, in attention to
the

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24 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

operations

open market and window of

rediscount,

among others. The implementation of these

instruments

Recurrence of non-compliance with the provisions

It will be done through the Central Bank of the

Ecuador.

indicated in the preceding paragraphs, in a calendar year,
will be punished as a serious sanction in accordance with article
264 numeral 2.

Article 119.- Reports on liquidity. The Central Bank

Financial entities that fail to comply with the reserves of

of Ecuador, in coordination with the governing body of the

liquidity but comply with the regulations dictated by the

public finances and the ministry in charge of policy

Board to access the credits of the window of

economic, you must submit at least semiannually to the

rediscount may receive a credit for the amount equal to the

Monetary and Financial Policy and Regulation Board a

deficiency with the interest rate and conditions that the Board

report on the liquidity of the country's economy, which will serve

determine.

as a basis for the adoption of the corresponding policies
Section 2 Operations of the

in the matter.
central bank of Ecuador
Article 120.- Proportion of domestic liquidity. The

Article 124.- Investment of surplus liquidity. The

entities of the national financial system, to preserve

Central Bank of Ecuador may invest the surpluses of

an adequate level of liquidity that promotes growth

liquidity of the economy in the entities of the sector

and work, are obliged to maintain in the country the

public financier, through financial instruments

proportion of total liquidity determined by the Board of

home investment repayable.

Monetary and Financial Policy and Regulation.

The Central Bank of Ecuador may invest the surpluses
Article 121.- Liquidity reserves. The entities of the

of liquidity of the economy in the entities of the sector

national financial system and non-financial entities

private financial or segment 1 entities of the sector

that grant credit over the limits issued by the Board

popular and solidarity financier, through instruments

of Policy and Monetary and Financial Regulation are

financial repayable domestic investment, prior

obliged to maintain liquidity reserves in the Bank

rendering of guarantees with titles issued by the governing body

Central del Ecuador regarding its assets and / or liabilities, of

of public finances, titles of the Central Bank of the

according to the regulations issued for this purpose,

Ecuador or loan portfolio with a rating of at least

which may be established by credit segment,

A. The resources that the financial institution maintains in the

type of entity, sector and activity, among others.

Liquidity Fund will be constituted as a guarantee of the last
instance on domestic investment operations.

Article 122.- Remuneration for excess reserves of
liquidity. The Central Bank of Ecuador will not recognize

The investment detailed in the preceding paragraphs is

any remuneration on the portion of the reserve

will give priority to promoting change in the pattern

liquidity deposited in the current accounts that the

of specialization of the national economy, innovation and

entities of the national financial system maintain in the

entrepreneurship to increase intensity

Bank.

technological and knowledge of national production, the
selective import substitution and the promotion of
exports.

Excess liquidity reserves deposited in
current accounts may, temporarily, be

The Central Bank of Ecuador, in coordination with the entity

remunerated as established by the Board. Is

rector of public finances and the ministry in charge of the

remuneration may not exceed the equivalent of the

economic policy, should quantify the surplus of

annual variation of the consumer price index for the year

liquidity that corresponds to allocate to domestic investment,

immediately preceding, for the period of excess reserves.

in order to direct it to the sectors of interest of the State. The
The Board will determine the financial conditions of the

Article 123.- Penalty for liquidity deficiencies. If the

domestic investment instruments, safeguarding the

proportion of domestic liquidity of a financial institution

domestic liquidity and the sustainability of this mechanism in

accused of deficiency, the Central Bank of Ecuador will apply

time.

a penalty equal to the legal maximum rate of interest
effective on the date of default, calculated on the

For the quantification of liquidity surpluses, the

amount of the deficiency, without prejudice to the obligation

public and private entities will provide in a way

has the financial institution to overcome the deficiency in the form

mandatory information that the Central Bank of Ecuador

immediate.

required for effect.

If a financial institution defaults on liquidity reserves and

Article 125.- Domestic investment plan. The Board of

the requirements established by the Board to receive a

Monetary and Financial Policy and Regulation will approve the

extraordinary credit from the Liquidity Fund to cover

domestic investment plan, which is the instrument that

said deficiency, a fine equivalent to the

makes the investment of surplus liquidity viable.

maximum legal interest rate in force on the date of
default, calculated on the amount of the deficiency,

The resources from the implementation of the

without prejudice to the obligation of the financial institution

domestic investment may not be used for purposes

to overcome the deficiency immediately.

other than those approved. Control of the use of these
resources will be in charge of the control bodies.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 25

Article 126.- Issuance of securities of the Central Bank of the

In the event that the financial entities receiving the

Ecuador. The Board of Policy and Monetary Regulation and

rediscount operations enter the process of

Financial, with the unanimous vote of its members,

settlement, portfolio securities or rediscounted securities

authorize the Central Bank of Ecuador, within the

will have priority of payment, according to the priority of

sustainability limits of the balance of payments, the issuance

payments determined in article 315, either through the

of securities called Central Bank Securities (TBC),

contributions to the Liquidity Fund of the financial institution that

that will be automatically renewed and backed up in your

appropriate, with assets that can be converted immediately to cash

fully with the assets of the Central Bank of Ecuador. The

owned by the entity or with direct cash payments.

Central Bank (TBC) securities will be issued by rates or

The appointed liquidator will have the obligation to comply with

series that may have different characteristics.

this provision.

These securities will be traded on the primary market

Article 129.- Limit to the granting of credits in the

only with the governing body of public finances, except

rediscount window and the investment of

express and unanimous exception of the Board, will serve for the

surplus liquidity. The quotas that the

payment of taxes and any other obligation towards the

Board so that the entities of the financial sectors

State, at face value, and will not be considered debt

private and popular and solidary carry out operations of

public. They are exempted from registration in the Registry of

rediscount or domestic investment window with the

Stock Market when its negotiation is carried out in the

Central Bank of Ecuador, will be determined on the basis

private market.

of the solvency ratio and equity ratios
determined by the Board based on the objectives of
economic policy. The added quota for these two

Article 127.- Open market operations. The bank

instruments may not exceed the accumulated sum

Central del Ecuador may carry out operations of

of: a) 100% of the position in securities issued by the entity

open market with financial system entities

rector of public finances and the Central Bank of the

national, through repurchase agreements with securities
securities issued by the governing body of public finances and

Ecuador; b) 70% of individual contributions do not

with securities issued by the Central Bank of Ecuador, of

committed by the financial institution in the Fund
Liquidity; and, c) the loan portfolio with a rating of at

in accordance with the resolutions issued by the Board.

less A that does not together exceed 30% of the equity
constituted technician of each entity.

Article 128.- Rediscount window. The bank
Central del Ecuador may carry out operations of

The collection will be made from the resources contributed by the

rediscount that may have the character of revolving, of

financial entities to the Liquidity Fund, up to the

loan portfolio and long-term securities issued by the

amount delivered to said fund.

governing body of public finances or Bank Securities
Central (TBC), with entities of the financial system

Section 3

national contributors to the Liquidity Fund previously

Of the interest rates and fees of the Central Bank of the

rated on their risk profile and requirements

Ecuador

minimum solvency. The credit quality of the portfolio of
credits to be rediscounted must have a grade no

Article 130.- Interest rates. The Board of Policy and

less than A.

Monetary and Financial Regulation may set the rates
maximum interest for active and passive operations

The Central Bank of Ecuador, in accordance with the

of the national financial system and other interest rates

regulations issued by the Board, may grant

required by law, in accordance with article 14

additionally credits through the window of

numeral 23 of this Code.

rediscount to cover deficiencies in the reserve of
Anatocism is prohibited.

liquidity. When this mechanism is applied, the entities,
within the term determined by the Board, which may not be
more than thirty days, they will deliver the loan portfolio and / or

Article 131.- Interest rates of the Central Bank of the

the titles to be re-counted.

Ecuador, The Board of Monetary Policy and Regulation and
Financiera will determine the interest rates applicable to the

The resources that the entity maintains in the Fund

active and passive operations of the Central Bank of the

Liquidity will be constituted as a guarantee of last resort

Ecuador and the fees that the Bank will charge for its

on rediscount operations.

services.
CHAPTER 5 Of the

In the event that the financial entities receiving the

external assets and liabilities

rediscount operations fail to comply with payments
established, the Central Bank of Ecuador will declare

Section 1 Assets and

term expired the whole of the rediscounted operation and

external liabilities

will require the Liquidity Fund to transfer it in a
immediate outstanding amounts owed, charged to

Article 132.- External assets of the Central Bank of the

the contributions of the corresponding financial institution, without

Ecuador. The external assets of the Central Bank of the

that there is any additional authorization. Non-compliance

Ecuador are made up of the following:

of the financial institution in the restitution of the securities to the
Liquidity Fund will be grounds for forced liquidation.

1. Currency;

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26 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

2. Net assets in foreign financial institutions;

Article 138.- Accounting of reserves. The
reservations will be accounted for according to practices

3. Units of account issued by agencies

Accountants of general acceptance adopted by the Board of

international monetary;

Monetary and Financial Policy and Regulation.

4. Monetary and non-monetary gold;
Article 139.- Investment of reserves. The Central Bank
Ecuador will invest the international reserves of

5. Reserve position with international organizations;

so that security is guaranteed, in order,
6. Balances in favor of the Central Bank of Ecuador in the

liquidity and economic profitability of such investments.

bilateral and multilateral agreements; Y,
The return on investment will constitute income from
7. Other foreign currency assets.

Central Bank of Ecuador and will be registered in the account of
results.

Article 133.- External liabilities of the Central Bank of the
Ecuador. The external liabilities of the Central Bank of

The returns on the investments made by the Bank

Ecuador are made up of the following:

Central del Ecuador with funds from the Ecuadorian Institute
Social Security will be transferred monthly to

1. Obligations abroad payable in foreign currency;

said institution and will not be part of the income
2. Credits granted by international organizations;

currents or profits of the Central Bank of Ecuador.

3. Balances to be paid by the Central Bank of Ecuador in the

The returns generated from the investments of the

bilateral and multilateral agreements; Y,

Single Account of the National Treasury will be restored to that
account in its entirety, except for the relevant commissions that

4. Other foreign currency liabilities.

authorized by the Board within financial operations.
These returns will not be part of the income of the

Article 134.- Accounting of assets and liabilities

Central bank of Ecuador. The same provision will apply

external. External assets and liabilities will be

for resources from the Liquidity Fund

accounted for according to accounting practices

when appropriate.

generally accepted, in accordance with the regulations that
issued by the Board.

CHAPTER 6 On the regime

Article 135.- Gold trading. The Central Bank of

exchange

Ecuador may intervene in the purchase, sale or negotiation
of gold and will be able to make operations in currencies or gold in the

Article 140.- Debt service. Corresponds to the Bank

through other derivatives, in the form and conditions that

Central del Ecuador acquire the foreign exchange to carry out the

authorized by the Monetary Policy and Regulation Board and

debt service and payments of sector entities

Financial

public.

Article 136.- Unattachable. Assets and resources

The Monetary and Financial Policy and Regulation Board

that make up the external assets of the Central Bank of

authorize the opening and maintenance of accounts in the

Ecuador are unattachable, enjoy sovereign immunity,

exterior, for use by public sector entities, prior

cannot be subject to any kind of pressure, measure

favorable reports from the governing body of public finances

preventive or precautionary or enforcement, and can only

and the Central Bank of Ecuador.

apply to the purposes set forth in this Code.

Article 141.- Purchase and sale of foreign currency. The Board of

Section 2 Of the

Monetary and Financial Policy and Regulation will regulate the

international reserves

purchase and sale of foreign currency and will determine the cases in which the
Article 137.- International reserves. It is understood by

sale of foreign currency is mandatory to the Central Bank of

international reserves to total foreign assets that

Ecuador.

owns the Central Bank of Ecuador in instruments
denominated in foreign currency and issued by non-financial

The other exchange transactions may be carried out in

residents, who are considered liquid and low

the free market.

risk.
The governing body of public finances will deliver to the Bank
Central del Ecuador programming transfers to the

The Central Bank of Ecuador will maintain reserves

exterior of the General State Budget.

international currencies in the currencies most used by the country in
your payments abroad, especially in diversified currencies and

Article 142.- Foreign trade policies. The Board of

easily accepted.

Monetary and Financial Policy and Regulation will agree with
the body responsible for the regulation of

In order to maintain the external financial solvency of the country, the

foreign trade, through a joint resolution, the goals

Monetary and Financial Policy and Regulation Board

mandatory compliance of net foreign exchange income

will issue the regulation so that the Central Bank of the

oil companies from the balances of goods and services; this

Ecuador maintains an international reserve adequate for

last body will be responsible for the

needs of international payments.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 27

fulfillment of said goals. The Board will present a

Expressions may not be used that due to a similarity

report on the fulfillment of this obligation to the Presidency

phonetic or semantic, lead to confusion with

of the Republic.

previous. The corresponding superintendency will qualify the
likeness.
TITLE II FINANCIAL SYSTEM
Article 145.- Revocation of the authorization. The

NATIONAL

control bodies may revoke the authorization for
the exercise of financial activities by the following
CHAPTER 1 Activities

Causes:

financial
1. Failure to carry out the minimum number of operations determined by the
Section 1 Of the activities

watchdog for a period of at least

financial and your authorization

least six consecutive months;

Article 143.- Financial activity. For the purposes of this

2. Having provided false or fraudulent information or

Code, financial activity is the set of operations and

omitted relevant information to obtain the

services that are carried out between bidders, applicants and

authorization; Y,

users, to facilitate the circulation of money and carry out
financial intermediation; have among their purposes

3. In the other cases provided for in this Code.

preserve deposits and meet the requirements of
financing for the achievement of the objectives of

The revocation may be resolved, totally or partially,

development of the country. Financial activities are a

regarding one or more authorizations. The revocation of

public order service, regulated and controlled by the

one or more authorizations, which at the discretion of the

State, which can be provided by the entities that

control put the economic-financial viability at risk

make up the national financial system, after

of the entity, will be grounds for forced liquidation.

authorization of control bodies, within the framework of the
Article 146.- Procedure for revocation. The

regulations issued by the Policy and Regulation Board

control body through standard will establish the

Monetary and Financial.

procedure for revocation of authorization,
Article 144.- Authorization. The Superintendency of

observing the constitutional guarantees of due

Banks and the Superintendency of Popular Economy and

process. The revocation resolution will not be suspended for

Solidarity, within the scope of their respective competences,

the filing of claims or administrative appeals or

authorize the entities of the national financial system

claims before the courts of justice or arbitration.

the exercise of financial activities. In authorization
Section 2

indicated, the active, passive, and

State responsibility

contingents and financial services that may exercise
entities, by segments, according to their purpose

Article 147.- Responsibility. It is the responsibility of the

social, line of business, specialties, skills and

State facilitate access to financial activities,

other requirements and conditions that for the purpose

promoting its democratization by formulating

establish the Monetary Policy and Regulation Board and

policies and regulations.

Financial

Article 148.- Prohibition of freezing. The State and

The authorizations determined in this article will consist of

their institutions may not, in any way, arrange

in a motivated administrative act and will be issued prior to the

any form of arbitrary freezing or retention and

compliance with the requirements determined in this Code

generalization of funds or deposits consigned in the

and in the standards issued for this purpose. The

entities of the national financial system.

Authorizations may be revoked for the reasons
indicated in this Code.

Non-observance of this prohibition will result in
criminal, civil and administrative responsibilities.

The entities of the national financial system, in addition to
this authorization and before the start of operations, they must

Article 149.- Credit guarantee system. Believe the

Obtain from the control body the respective permission of

credit guarantee system as a mechanism that

operation, in accordance with the procedure

is intended to secure credit obligations of the

set for effect.

people who are not able to specify
projects with the national financial system due to lack of

Only legal persons authorized by the

guarantees, such as first entrepreneurs, mothers

respective control bodies may use the
denominations:

"Bank",

"corporation

financial ”,

"General deposit warehouse", "exchange house", "services
auxiliaries of the financial system ”,“ savings cooperatives and
credit ”,“ mutual savings and credit associations for
housing "and" central boxes "and other specific
used in this Code and the regulations issued by the
Monetary and Financial Policy and Regulation Board.

single, people in human mobility, with disabilities,
young people and other people belonging to
priority attention.
The credit guarantee system may also strengthen the
investments in securities issued under the law of
stock market, of companies that underpin change
of the productive matrix.

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28 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

The credit guarantee may be granted by persons

Article 156.- Control. Respect for the rights of

legal public and private law.

clients and financial users will be monitored and protected by
the control bodies referred to in this Code.

The Monetary and Financial Policy and Regulation Board
regulate the credit guarantee system and determine the

Article 157.- Violation of rights. The users

public institution in charge of its management.

financial institutions may file complaints or claims before the
own entity, control body or the Defender of the

The credit guarantee system will be under the control of the

Client or raise any administrative, judicial or

Superintendency of Banks.

constitutional recognized in law to demand restitution
of their violated rights and due compensation for
the damages caused.
Section 3 Of the
regulation

Article 158.- Customer Ombudsman. Each entity
member of the national financial system will have a

Article 150.- Subject to regulation. The entities of the

client ombudsman, who will be independent of the

national financial system will be subject to regulation

institution and designated in accordance with the regulation that

issued by the Monetary Policy and Regulation Board and

issued by the Board.

Financial
The client ombudsman may not have any type of
Article 151.- Differentiated regulation. Regulation
must recognize the nature and particular characteristics
of each of the sectors of the national financial system.

relationship with shareholders or administrators of
the financial institution. Your role will be to protect the rights
and interests of financial users and will be regulated
by the Monetary Policy and Regulation Board and
Financial

Regulation may be differentiated by sector, by
segment, by activity, among others.

Section 5
Public cadastre
Section 4 Of the

financial users

Article 159.- Public cadastre. The Superintendency of
Banks, the Superintendency of Popular Economy and
Solidaria and the Superintendency of Companies, Securities and

Article 152.- Rights of the people. People
natural and legal have the right to have services
financial resources of adequate quality, as well as a
accurate and non-misleading information about its content and

Insurance will organize and maintain a public registry that
contains at least the following data:
1. List of entities created or constituted;

features.
2. List of entities authorized to practice
It is the right of financial users that the information and

financial, securities and insurance activities;

credit reports that appear on them in the bases of
data from financial institutions are accurate and
updated with the periodicity established in the standard.

3. List of non-financial legal persons that have
received authorization to carry out
credit;

The entities of the national financial system and those that
make up the securities and insurance regimes, they are
obliged to disclose to their customers and users the existence of

4. List of liquidated entities;
5. List of shareholders. In case of having like

conflicts of interest in activities, operations and

shareholders to legal entities that represent more

services offered to them. For this purpose, the Board

of 2% of the share capital, the registry will include the detail of

will establish the corresponding regulation.

shareholders to individuals
that represent, directly or indirectly, more than

Article 153.- Quality of services. The Board of

2% of the capital stock of such legal entities. The

Monetary and Financial Policy and Regulation will regulate the

Monetary and Financial Policy and Regulation Board

quality standards of financial services,

you can reduce this percentage and set exceptions

customer satisfaction measurement systems and

for entities listed below

users and the care and repair systems.

this percentage. For entities in the financial sector
popular and supportive, the registry will be the payroll of

Article 154.- Express acceptance. It is the right of the

representatives to the general assembly, in cases where

users that the charges that are imposed for services

apply;

financial and non-financial are made after they have
been expressly and previously accepted.

6. List of administrators that includes the members of the
board of directors or body to take their place and

Article 155.- Protection. In the terms provided by

legal representatives.

the Constitution of the Republic, this Code and the law, the
financial users have the right to have their information

The cadastre must be permanently updated,

staff is protected and confidentiality is maintained.

It will be public and easy to consult. Information from the cadastre
must be available on the web.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 29

CHAPTER 2 Integration of

Associative or solidarity entities, savings banks and banks
communal and savings banks will be governed by the

national financial system

provisions of the Organic Law of the Popular Economy and
Article 160.- National financial system. The system

Solidarity and the regulations issued by the Board of Policy and

The national financial sector is made up of the financial sector

Monetary and Financial Regulation.

public, private financial sector and financial sector
Article 164.- Subsidiaries or affiliates. They also form

popular and supportive.

part of the national financial system the subsidiaries or
Article 161.- Public financial sector. The sector

affiliates of financial entities domiciled in the

public financier is made up of:

Ecuador.

1. Banks; Y,

Subsidiary is a company with legal status
own, in which a bank, corporation, central bank,

2. Corporations.

credit union or mutual association of

Article 162.- Private financial sector. The sector
private finance is made up of the following

savings and credit for housing has a stake
direct or indirect shareholding, greater than 50% of the capital
subscribed and paid from the company.

entities:

Affiliate is that company with its own legal status,

1. Multiple banks and specialized banks:

in which a bank, corporation, central bank, cooperative
a) Multiple bank is the financial entity that has

savings and credit or mutual savings and loan association

authorized operations in two or more segments

credit for housing has a shareholding,

of credit; Y,

direct or indirect, less than 50% and not less than 20% of the
subscribed and paid capital of the company or in which it exercises

b) Specialized bank is the financial entity that
has authorized operations in a segment of

an influence on its management by the presence of shareholders,
directors, administrators or common employees.

credit and that in the other segments its
CHAPTER 3

operations do not exceed certain thresholds
by the Monetary Policy and Regulation Board and

Common provisions for the financial system
national

Financial

Section 1 Of the capital,
reserves and profits

2. Of financial services: general stores of
deposit, exchange houses and corporations of
development of secondary mortgage market; Y,

Article 165.- Capital. The entities of the sectors
public and private financial institutions will have an authorized capital and

3. Of auxiliary services of the financial system, such

a subscribed and paid capital.

such as: banking, transactional, transportation software
of monetary and securities species, payments, collections,

The authorized capital is the amount up to which the entities

networks and ATMs, accounting and

of the public and private financial sectors can

computing and others qualified as such by the

accept subscriptions or issue shares, as the case may be.

Superintendency of Banks in the field of its
The subscribed and paid capital will be at least 50% of the amount

competence.

of the authorized capital.
Article 163.- Popular and solidarity financial sector. The
popular and solidarity financial sector is made up of:

The capital stock of financial sector entities
popular and supportive will be variable and may increase from

1. Savings and credit cooperatives;

unlimited way.

2. Central boxes;

Article 166.- Capital increases. The entities of the
public and private financial sectors will be able to increase their

3. Associative or solidarity entities, savings banks and banks
communal and savings banks; Y,

authorized capital at any time, through reform to
its creation or constitution documents.

4. Of auxiliary services of the financial system, such

Increases in authorized capital will be resolved by the

such as: banking, transactional, transportation software

board of directors in the case of financial sector entities

of monetary and securities species, payments, collections,

public, and by the general meeting of shareholders in the case of

networks and ATMs, accounting and

private financial sector entities; after

computing and others qualified as such by the

Once the corresponding formalities have been completed, they will register

Superintendency of Popular and Solidarity Economy in

in the Mercantile Registry and will be notified to the

the scope of its competence.

Superintendency of Banks.

They are also part of the popular and solidarity financial sector

The payment of the subscribed and paid capital increases will be

mutual savings and credit associations for the

will do in the manner provided in this Code.

living place.

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30 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Notwithstanding that the private financial sector entity

Article 171.- Classes of merger. Mergers may be

account for the increase in subscribed and paid capital, the

ordinary and extraordinary.

control body may carry out investigations that
consider the case to verify the legality of the payment of the

The ordinary merger is the one agreed and carried out by

capital increases and the source of funds.

financial entities that are not in a situation of
technical heritage deficiency.

Yes from the verification of the legality of the capital increase
of a financial institution and the origin of the funds

The extraordinary merger occurs between an entity that

used for payment, it is established that they existed

is in a situation of capital deficiency

violations of this Code, the control body, prior

technician with another entity that is not in such situation;

the requirement of the discharge tests and through

in this case, express acceptance will always be necessary

motivated act, will render totally or partially unsubstantiated

of the legal representative of the entity that will not be found

said increase.

in a situation of deficiency, who for the purpose remains
empowered to make this decision. For this case, the board

Article 167.- Publicity of the capital. The entities of the

general shareholders or the body acting in its place

public and private financial sectors will announce

of the entity that is not in equity deficiency

only its subscribed and paid capital. Likewise,

technical, it will be considered called to resolve the merger

branches of foreign financial entities will announce

extraordinary. If the general meeting of shareholders or the

only the amount of capital and reserves allocated by the

body that takes its place does not attend this

parent financial institution.

call, the control body will arrange the meeting
mandatory for these collegiate bodies to resolve

Article 168.- Legal reserve fund. The entities of

what corresponds, with the members who are

the public and private financial sectors should constitute

present.

a legal reserve fund that will amount to at least 50%
of its subscribed and paid capital. To form this reserve

Article 172.- Merger process. The fusion process

legal, financial entities will allocate, at least the

Ordinary will be regulated by the control organisms.

10% of your annual profits.
The extraordinary merger process is exempted from
Likewise, in accordance with its statutes and by decision of

ordinary merger procedures and will be regulated by

the boards of directors or the general meeting of shareholders, when

the Monetary and Financial Policy and Regulation Board.

appropriate, they may constitute other reserves that will have the

This merger will be exempt from paying taxes. Same

character of special or optional, formed by the

credit unions will have exemption

transfer of profits to equity.

when they merge with others.

The entities of the popular and solidarity financial sector

Article 173.- Transfer of assets. In the event of a merger, the

will have an Irrepartible Legal Reserve Fund, in accordance with

Asset transfers will be subject to the regulations issued

the provisions of the Organic Law of the Popular Economy and

control bodies and accounting standards

Solidarity.

applicable. The process of transferring liabilities and
guarantees will not require the express acceptance of the

Article 169.- Persons with patrimonial property with

customers, who will be notified later by the

influence. For entities of the financial system

absorbing entity.

national, are considered people with patrimonial property
with influence to natural or legal persons that

Article 174.- Responsibility for liabilities. In the

have, directly or indirectly, the lesser value of the

case of merger by absorption, the financial institution

the following numerals:

The absorbing company will take over the liabilities of the absorbed.

1. 6% or more of the subscribed and paid capital or of the capital

Article 175.- Conversion. The conversion is the
modification or change of the corporate purpose or activity of a

Social; or,

financial institution to adopt the object and form of another
2. Shares or participations for an amount greater or equal

entity provided for in this Code within the same sector;

to six hundred basic fractions exempt from tax

this figure does not alter the existence as a legal person and

the rent.

it only grants him the faculties and imposes the
legal requirements and limitations specific to the species
Section 2 On mergers,

adopted.

conversions and associations
Article 176.- Approval. The merger and conversion will be
Article 170.- Merger. Fusion is the union of two or more

previously approved by the respective

entities of the national financial system in the same sector,

control, in accordance with current regulations.

by which they undertake to pool their assets and
form a new company, which acquires by title

In the event of an ordinary merger, the policies and

universal rights and obligations of societies

regulations regarding the control of the power of the

intervening parties. Fusion also occurs when one or

market, has issued the competent regulatory body and

more entities are absorbed by another that continues

a prior report from the Superintendency of

subsisting.

Market Power Control when it exceeds the limits by
financial sector and / or segment determined by the Board

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 31

of Monetary and Financial Policy and Regulation, in

Article 181.- Requirements. To establish branches u

coordination with the Market Power Control Board.

representative offices in Ecuador, the entity

In the event of an extraordinary merger, these

Interested foreign financial institution must:

requirements.
1. Show that it is legally established in accordance
Article 177.- Association. Association is the union of
two or more entities of the national financial system that are
are in current operation, for expansion or
provision of specific services, without each of the
associated entities lose their identity and legal status
legal. The association will be made by agreement of
association, with prior authorization from the

with the laws of the country where it is incorporated;
2. Show that in accordance with said laws and their own
statutes can agree and has no impediment to
create branches or representative offices in the
Ecuador;
3. Prove that your main address is not found

control.

established in tax havens or jurisdictions of
less tax than that of Ecuador, in accordance with the

The association agreement must establish the term of

Definitions established by the Revenue Service

duration, within the maximum terms determined by the

Internal;

Monetary and Financial Policy and Regulation Board, the
rules that govern it and the responsibility of each of

4. Comply with the requirements determined in this Code,
those provided by the Policy and Regulation Board

they face the risks they take.

Monetary and Financial and the control agencies,
Section 3 Of the
foreign investment

according to the nature of the entity;
5. Comply with the requirements that Ecuadorian legislation

Article 178.- Foreign investment. People

points out and demonstrate that the willingness to operate in the

foreign natural or legal entities and financial entities

Ecuador has been duly authorized by the

foreigners may establish financial entities or

government authority in charge of the control of

establish branches or representative offices in the

institution in your country of origin, if required according to
the law of that country;

Ecuador that will become part of the entities
financial in the terms recognized by the legislation
current.

6. Maintain permanently in the country an attorney-in-fact or
representative, whose power of attorney will be previously qualified

The foreign financial entity will respond jointly and severally
for the obligations contracted by the branch or office of
representation established in Ecuador.

by the respective control body and must
register in the Mercantile Registry. This proxy or
representative must have broad powers and
sufficient to carry out all the acts and contracts that

Article 179.- Branches and representative offices.

are to be held and take effect in Ecuador and,
especially, so that you can answer demands and

Foreign financial entities that propose

fulfill obligations. The power of attorney must be granted in

establish branches in Ecuador, to exercise

clearly and precisely, meeting the required requirements

financial activities or establish offices of
representation, must obtain prior authorization from the

both by Ecuadorian legislation and by the
legislation of the country of origin of the financial institution

national control bodies. Branches must

foreign;

previously domiciled in Ecuador.

7. Expressly acknowledge:
Branches of foreign financial entities and
representative offices will be subject to the

to. Submission to jurisdiction, laws, courts and

regulations issued by the Policy and Regulation Board

Ecuadorian authorities, in relation to the acts

Monetary and Financial.

you enter into and contracts you sign or that have
to take effect in the Ecuadorian territory;

Creditors of a foreign financial institution that
has established a branch in Ecuador, they will not be able to exercise

b. Waive the claim through diplomatic channels;

rights over the assets that the branch owns in the country.
c. The rights established in any treaty
Representative offices will only serve to act

commercial or investment protection do not limit

as information centers for their clients and to carry out

in no way the exercise of powers

the operations indicated in article 194 numeral 1

state regulations, the imposition of sanctions

literal a) numerals 1 and 3 of this Code.

and the establishment of responsibilities to which
referenced by this Code, so you accept in

Article 180.- Prohibition of denominations. The

at all times receive equal treatment to the national in

foreign financial entities may not adopt

similar circumstances; Y,

denominations belonging to financial entities
Ecuadorian or that lead to think that they are subsidiaries

d. The legislation of Ecuador and the jurisdiction and

or affiliates of said institutions when in reality it is not

competence of the Ecuadorian courts to

be. They must unequivocally indicate their quality of

know and resolve any controversy about the

foreign financial entity.

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32 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

interpretation, application, execution of any
measure taken by regulatory bodies

1. Present the consent of the country's control authority
where you will participate;

and control, and / or on the fulfillment of rights
and obligations derived from the application of this

2. Present the sworn statement of your representative
legal entity stating that participation is not

Code;

will be used for the purpose of facilitating the evasion of
8. All the requirements established in the literals
precedents will be mandatory. The non-presentation of
some will abort the process. The branch can only be
authorized if in the country where you are
established its parent company there is legislation that regulates
the risk of their operations, to the satisfaction of the
national control bodies, and it is feasible to
reciprocal exchange of information on these
financial entities between control bodies

taxes or capital flight;
3. Present the current regulations of the country where you will participate
as a shareholder related to requirements of
capital, risk asset rating,
provisions, credit concentration, consolidation of
financial statements, risk management, as well
as any information that allows evaluating the
supervision and control capacity of the country where
will participate; Y,

from both countries.
4. Expressly accept that the Superintendency may
Once the watchdog extends the

carry out the inspections it deems appropriate and

authorization indicated in article 185, the entity

request the information you consider necessary, without

foreign financial institution will proceed according to the provisions of the

any limit.

title II chapter 5.
In the case of participation in the capital of entities
already constituted foreign financial institutions, the

Article 182.- Representation abroad. The
entities of the public and private financial sectors
may establish offices abroad, prior
authorization from the Ecuadorian control body, and
maintain proxies who represent the interests of the
entity.

control, in addition to the requirements established in the
previous rales, may require the information that allows
assess the financial risks of the recipient entity.
In the event that for participation as shareholders in
the foreigner requires the authorization of the
Ecuadorian control, the Superintendency may provide

Article 183.- National financial entities in the
Foreign.

a provisional authorization.
Article 185.- Authorization. Fulfilled the conditions

Entities in the public, private and financial sectors
of the popular and solidarity financial sector, prior authorization
of the respective control body, may participate as
shareholders in the capital of financial entities
foreigners of the same nature, constituted or by
be constituted, subject to the conditions determined
this Code and the corresponding regulation that issues the
Council. The aforementioned financial entities and

indicated in this section, the control body may
issue the corresponding resolution by which
authorizes both foreign participation in Ecuador
such as national participation abroad.
The public or private financial entity must notify
immediately to the control body regarding
any changes related to participation
authorized.

shareholders of such entities with equity ownership
with influence, may not participate as shareholders in

Article 186.- Reports. The public financial institution or

financial entities constituted or to be constituted in

authorized private sector must submit to the control body

tax havens or jurisdictions with less taxation to the

certified copy of the authorization granted by the authority

of Ecuador, in accordance with the definitions that

of foreign control for participation as a shareholder.

established by the Internal Revenue Service, and not where
supervisory standards are lower than those

Subsidiaries directly or through the head of

nationals.

group, will present annually within ninety days
at the end of the financial year or when requested by the
superintendency, an up-to-date certified copy of the

Investment in capital in financial institutions
foreign companies that exceed 50% of the subscribed capital and

authorization for operation and balances

paid, will make it a subsidiary of the owner of the

audited. In case of not doing so or when the report

investment. Investing between 20% and 50% will convert you

contains comments suggesting the existence of

in affiliate.

a serious financial problem, the Superintendency may
revoke the authorization granted.

Article 184.- Participation as a shareholder or opening
of offices abroad. To obtain authorization
to participate as a shareholder in financial entities
foreign, constituted or to be constituted, or establish
offices abroad, the public financial institution or
private national must comply with the following

The head of the group or its subsidiary, at the request of the
Superintendency, must provide information regarding
potential money depositors who are
indicted for illegal activities, including money laundering
assets and financing of crimes such as terrorism.

terms:

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 33

For control purposes, the Superintendency may request in

5. Liquidity gaps.

any time the additional information required to
Article 190.- Solvency and technical assets. The

exercise their functions.

entities of the national financial system must maintain
Article 187.- Revocation of the authorization. The

capital adequacy to support operations

authorization granted for a financial institution

current and future of the entity, to cover the losses not

public or private participates in the capital of an institution

protected by provisions for risk assets and

foreign financial institution, may be revoked by the

to underpin adequate macroeconomic performance.

control body, by means of a reasoned resolution, in the
Entities of the public and private financial sectors

following cases:

nationals, individually, and financial groups,
1. When the authorized entity, at the discretion of the body

based on the consolidated financial statements and / or

control, has unilaterally modified the

combined, they are obliged to maintain at all times

conditions under which authorization was extended

a relationship between its technical assets and the sum

to invest;

weighted risk of its assets and contingents does not
less than 9%.

2. When you do not submit the reports or information
The entities of the popular and solidarity financial sector of the

indicated in the preceding article;

segment 1, individually, and popular groups and
3. When the consolidated supervision process and

joint and several, based on the financial statements

cross-border by the control body

consolidated and / or combined, they must maintain in all

Ecuadorian or from the information submitted the

time the relationship between its technical assets and the sum

existence of serious financial problems in the

weighted risk of its assets and contingents does not

foreign financial institution, or that credit lines

less than 9%. The Board will regulate the percentages of

business of said entity are not in accordance with

technical equity applicable to the rest of the segments of the

authorized by national control bodies or

popular and supportive financial sector.

Foreign; Y,
The total technical equity of financial institutions
4. For a very serious offense, in accordance with this
Code.

must cover at least the sum of the requirements
capital for credit risk, market risk, risk
operational and others that incur in the execution of

As a consequence of the revocation, the

financial activities in accordance with regulations that

control will order the corresponding divestment.

issued by the Board.

Section 4 On solvency and
financial prudence

The relationship between technical equity and total assets and
contingents of entities in the financial sectors
public, private and popular and solidarity of segment 1, not

Article 188.- Financial requirements for operation.

it may be less than 4%.

The entities of the national financial system must
comply, at all times, the financial and

The Board will regulate the percentages applicable to the rest of

operation established by this Code and those established by the Board

segments of the popular and solidarity financial sector.

Policy and Monetary and Financial Regulation, in accordance
with the activities they carry out.

The Board may set solvency percentages above the
minimums provided in this article.

Article 189.- Liquidity. System entities
national financial institutions must maintain sufficient levels

Article 191.- Composition of the technical heritage. The

high-quality liquid assets free of encumbrance or

technical patrimony will be constituted, among others, by:

restriction, which can be converted into cash in
certain period of time without significant loss of
its value, in relation to its obligations and contingents,
weighted as determined by the Board.
Liquidity levels and management will be determined
by the Monetary and Financial Policy and Regulation Board
and will be measured using, at least, the following
prudential parameters:

1. The sum of the subscribed and paid capital;
2. Reservations;
3. Total profits or surpluses for the year
current once the labor obligations have been fulfilled and
tributary;
4. The irreparable legal reserve fund;

1. Immediate liquidity;

5. Accumulated profits from previous years;

2. Structural liquidity;

6. Contributions to future capitalizations; Y,

3. Liquidity reserves;

7. Convertible bonds without specific guarantee, of
in accordance with the regulations issued by the Board.

4. Domestic liquidity; Y,

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34 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

The following will be deducted from the technical equity constituted:

per risk, less than 9% for more than two hundred and seventy
additional days to the ninety days indicated in the first

1. The deficiency of provisions, amortizations and

subsection of this article.

required depreciation; Y,
Asset values ​lower than 50% of the levels
2. Losses of other items than the financial institution
not recognized as losses.

established as patrimonial requirements will be grounds for
forced liquidation of the financial institution.

Technical heritage is subdivided into technical heritage

Article 193.- Solvency in entities abroad.

primary and secondary technical heritage.

The solvency of foreign financial institutions in the
that there is a shareholding of an entity

The primary technical patrimony is that constituted by

Ecuadorian financial institution for more than 20% of the capital will be the

liquid, permanent and value equity accounts

determined by the countries where they are located, but

certain. The secondary technical heritage is made up of

in no case may it be less than 9% of the ratio between

the rest of the equity accounts.

technical equity and risk-weighted assets,
calculated with the computational methodology applied for the

The total of the secondary technical patrimony will be limited in

financial groups in Ecuador, or less than the minimum that

its amount to a maximum of 100% of the total equity

determined by the Board, the greater of the two.

primary technician.
Section 5 Of the
operations

The Monetary and Financial Policy and Regulation Board,
By means of standards, it will determine the classification of
accounts that make up the primary technical equity and

Article 194.- Operations. Financial entities

secondary and establish the conditions for inclusion,

will be able to carry out the following operations, in accordance

exclusion and deduction of one or more items

with the authorization granted by the respective body

patrimonial, defining the set of relationships that

of control:

must be kept between them in order to safeguard the
solvency, sustainability and protection of resources

1. Public and private financial sector:

of the public.

to. Active operations:

Article 192.- Equity deficiency. The shortcomings of

1. Grant mortgage and pledge loans, with or

technical heritage presented by the entities of the system

without issuance of titles, as well as loans

national financial institution, without prejudice to the sanctions

unsecured and any other form of

correspond, may be paid within the program

loans authorized by the Board;

intensive supervision referred to in this Code, with
capital increases subscribed and paid and / or loans
subordinates, which must be executed within a period not
greater than ninety days. These deficiencies are also
they may hedge with convertible bonds into shares,
provided they maintain a general guarantee, their term of
maturity is greater than five years and are acquired
exclusively in currency.

2. Grant credits in current account, contracted or
not;
3. Constitute deposits in financial entities of the
country and abroad;
4. Negotiate bills of exchange, drafts, promissory notes,
invoices and other documents that represent

In the case of capital increases subscribed and paid by
new shareholders, these must be qualified

payment obligation created by credit sales, as well
such as the advance of funds backed by the
referred documents;

previously by the corresponding control body.
If the financial institution does not cover the equity deficiency
within the specified period, the superintendencies
shall provide that the majority shareholders or partners of the
financial institution constitute an unconditional guarantee,
irrevocable and of immediate collection, in favor of the Corporation
Deposit Insurance, Liquidity Fund and Fund of
Private Insurance, of at least the equivalent of 140%

5. Negotiate documents resulting from operations
foreign trade;
6. Negotiate securities and discount bills
documentaries on the outside or make advances
about them;
7. Acquire, keep and dispose of, on their own account or

of deficiency. This warranty must be in force

third parties, titles issued by the governing body of the

as long as the equity deficiency is maintained and

public finances and by the Central Bank of the

will be executed in case of non-compliance with the

Ecuador;

intensive supervision. Not constitute the guarantee or not
keep it in force as long as the equity deficiency exists
will be grounds for forced liquidation.

8. Acquire, keep or dispose of, on their own account,
fixed income securities, in accordance with the provisions of the
Securities Market Law, and other securities

It will be grounds for forced liquidation for an entity

credit established in the Commercial Code and

financial maintain a relationship of technical assets

other laws, as well as representative values ​of

constituted against weighted assets and contingents

rights over these;

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 35

9. Acquire, keep or dispose of forward contracts,

2. Popular and solidarity financial sector:

call or put options and futures; will be able
to. Active, passive, contingent and

also carry out other operations of the
money market, in accordance with

services determined in numeral 1 literal a

established in the corresponding regulations;

numbers 4, 7 and 10; literal b numerals 1, 2, 3 and 4;
literal c numeral 1; y, literal d numerals 1, 3 and 4

10. Make investments in the capital of an entity of

of this article;

financial services and / or a service entity
auxiliaries of the financial system to convert them into

b. Grant loans to its partners. The mutualists

its subsidiaries or affiliates;

they will be able to grant loans to their clients;

11. Make investments in the capital of entities

c. Constitute deposits in entities of the system

foreign financial institutions, under the terms of this

national financial;

Code; Y,

d. Act as issuer or operator of credit cards

12. Buy or sell precious minerals.

debit or payment cards. The entities of the
segment 1 of the popular financial sector and

Passive operations:

b. Passive operations:

solidarity may issue or operate credit cards;
1. Receive demand deposits;
and. Issue long-term obligations backed by
2. Receive term deposits;

your assets, equity, loan portfolio
mortgage or pledge, own or acquired,

3. Receive loans and accept credits from entities

provided that in the latter case they originate in

financial companies from the country and abroad;

active credit operations of other entities
financial;

4. Act as originator of processes of
securitization with the backing of the loan portfolio

F. Make investments in the capital stock of the

mortgage, pledge or unsecured, own or

central boxes; Y,

acquired; Y,

g. Carry out foreign exchange operations.

5. Issue long-term obligations and obligations
convertible into shares guaranteed with their
assets and equity; These obligations will be governed

The entities of the popular and solidarity financial sector

by the provisions of the Securities Market Law.

they will be able to carry out the operations detailed in this article,
according to the segment to which they belong, in the

Contingent operations:

terms of your authorization.

1. Assume obligations on behalf of third parties to
through acceptances, endorsements or endorsements of titles
credit, the granting of guarantees, sureties and
internal and external letters of credit, or any
another document; Y,
2. Trading financial derivatives on your own account.

The definition and actions that comprise the
operations determined in this article will be regulated
by the Monetary Policy and Regulation Board and
Financial

Financial entities, for all operations that
carry out, they must have the credit technology and
adequate services.

Services:
d. Services:
1. Carry out cash and treasury services;

Article

195.-

Cancellation

extraordinary

obligations. The entities of the financial system
national may, in an extraordinary way, receive as payment

2. Act as issuer or operator of credit cards

of credits or obligations constituted in their favor goods

credit, debit or payment cards;

furniture, real estate, shares or participations, among others,
3. Make collections, payments and transfers of

in dation in payment or by judicial adjudication.

funds, as well as issuing drafts against their own
offices or those of national financial entities or

Movable and immovable property and shares or
Participations may be kept for up to one year at

foreign;

receive value; after this period, they must be
4. Receive and keep objects, furniture, valuables and

disposed of in public auction, in accordance with the regulations

documents on deposit for safekeeping and

issued by the Monetary Policy and Regulation Board and

lease lockers or safes for

Financial If they could not be disposed of, the entity

securities deposits; Y,

financial shall constitute provisions at the rate of a
12th month of the book value, beginning with the

5. Carry out on your own account or for third parties,

month immediately after the expiration of the term. On

operations with currencies, contract repos and issue

In any case, they will not be able to keep said movable property,

or negotiate traveler's checks.

real estate and shares or participations for a period that

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36 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

exceeds one year in addition to the one-year term

may suspend or terminate the attention to the public without

originally granted. Movable and immovable property

prior notification to the respective superintendency and the

disposed of will be sold by the Superintendency in

general public at least five days in advance.

public auction.
The control bodies of the entities of the system
The rights to the shares or participations do not

national financial institution may provide or authorize the

disposed of within the specified period will be suspended and

temporary suspension of work in one or more of the

the Superintendency will order its sale by public auction.

offices of the entities under their control, upon request

Whoever acquires said shares or participations will have

justified of these.

right to receive the benefits that would have been
Article 202.- Attention in the event of a strike. In the case of

discontinued.

declaration of a strike by a financial institution, before
Article 196.- Other operations. The entities of the

the suspension of work, the authority that is knowing

national financial system may carry out other

the labor dispute will ensure that during the strike

operations that are necessary for its operation,

all offices remain open and continue

such as buying, building, conserving and disposing of assets

working in their functions the workers in a number

furniture and real estate necessary for its operation,

indispensable, in order not to affect the rights of

within the quotas established by the Board. Entities

financial users.

the national financial system will not be able to carry out
insurance and securities activities beyond which this
Section 6 Of assets, limits

Authorize code.
credit and provisions
Article 197.- Operations in other means of payment.
The entities of the national financial system may

Article 203.- Financial management of assets. The

carry out operations in other means of payment, in accordance

Entities of the national financial system are obliged to

with the rules issued by the Policy and Regulation Board

comply with the composition rules in the structure of

Monetary and Financial.

financial assets on their balance sheets and the requirements for
acquisition of financial investment instruments, of
in accordance with what the Board establishes.

Article 198.- Operations by persons
non-financial legal. Legal persons do not
financial companies that, as part of their business, carry out

Article 204.- Quality of assets, contingents and

term sales or carry out credit operations for over

constitution of provisions. System entities

the limits established by the Policy and Regulation Board

national financial institution, in order to reflect the true quality

Monetary and Financial, will be controlled by the

of assets and contingents, will qualify them

Superintendency of Companies, Securities and Insurance or by

permanently and will constitute the provisions that

the Superintendency of the Popular and Solidarity Economy

establishes this Code and the regulations issued by the Board

as appropriate and will be subject to the rules on

of Monetary and Financial Policy and Regulation to cover

this matter dictates the Board of Policy and Regulation

the risks of bad debts, the loss of the value of the

Monetary and Financial. For this purpose, forward sales

assets and to underpin adequate performance

they will be considered as credit operations.

macroeconomic.

Article 199.- Suspension of operations. The

Article 205.- Provision. System entities

control bodies of the entities of the system

national financial institution must constitute a valuation account

national financial institution may order the suspension of

of assets and contingents, including derivatives

operations of the entities under its control in cases

financial, to cover eventual losses on accounts

contemplated in the law.

uncollectible or due to impairment and to shore up the
adequate macroeconomic performance.

Article 200.- Offices. System entities
national financial institution may establish offices for the

Expected losses from risk assets will be covered

attention to the public observing the criterion of territoriality,

with provisions, while unexpected losses are

according to the regulations of the Board. These offices, before

they will cover with capital.

from the start of operations, they must obtain from the agency
Article 206.- Obligation to provision. Entities

control the respective operating permit,

public and private financial institutions shall constitute the

according to the procedure that it establishes.

following provisions:
The entities will exhibit in a public and visible place, both in
its headquarters as in each of its offices, the permission of

1. Specific provisions for impairment of assets and
contingents;

operation granted by the superintendencies.
Article 201.- Attention to the public. The entities of the
national financial system will serve the public from

2. Generic provisions;
3. Provisions by economic cycle; Y,

the date of the operating permit, within the
schedules established by the control bodies. I dont know

4. Any other provision determined by the Board of
Monetary and Financial Policy and Regulation.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 37

Financial entities, for the determination of the

entity. This limit will be raised to 20% if what exceeds the

provisions indicated above, will be subject to the rules that

10% corresponds to obligations guaranteed with guarantee

establish the Board.

of national or foreign banks of recognized solvency
or by adequate guarantees, in the terms dictated by the

The Monetary and Financial Policy and Regulation Board

Monetary and Financial Policy and Regulation Board. The

establish, by segment, the provisions for the

established credit limits will be determined to date

entities of the popular and solidarity financial sector, being

original approval of the operations or of each

mandatory for segment 1 those contemplated in the

reform carried out. In no case the adequate guarantee

numerals of this article.

it may have a lower value than the total value of the excess.

Article 207.- Punishment of obligations. The entities of the

The set of operations of the previous paragraph, neither

national financial system will punish all

may in no case exceed two hundred percent

loan, discount or any other obligation

(200%) of the credit subject's equity, unless

irrecoverable; this punishment does not free her to continue with the

there were adequate guarantees that cover, in what

collection of the sums committed, nor does it relieve the

exceed at least one hundred and twenty percent (120%),

responsible for the credit of your condition of delinquent debtor.

in accordance with the regulations issued by the Board.

The time in arrears that must elapse for a
financial institution punish these obligations will be

The limits determined in the preceding paragraph are not

determined by the Monetary Policy and Regulation Board

will apply with respect to active operations and

and Financial, based on the evaluation of non-compliance

contingents with titles issued by the Ecuadorian State

of payment of operations with credit risk of

and the Central Bank of Ecuador.

counterpart, which may not exceed three years.
The Monetary and Financial Policy and Regulation Board
Prior to the punishment of the obligations, these must be

establish percentages lower than those determined in

provisioned at 100% of their book value.

this article for financial entities that have a
risk profile in excess to the safest level of the system.

Article 208.- Relationships in active operations,
passive and contingent. The Board of Policy and Regulation
Monetary and Financial will dictate the regulations regarding the
relationships to be kept by financial institutions

The Monetary and Financial Policy and Regulation Board
establish the applicable limits for the rest of
segments of the popular and solidarity financial sector.

in its active, passive and contingent operations,
considering the risks derived from differences in

Article 211.- Exceptions to the limits for

terms, rates, currencies and others.

active and contingent operations. They are excepted from
limits determined in the preceding article of this

The Board will also dictate the rules regarding the

Code the following operations:

development of policies, technologies and procedures for
risk management.

1. The credits destined to the financing of the
exports after shipment, which

Article 209.- Orientation of credit operations.
The Monetary and Financial Policy and Regulation Board
may regulate the orientation and

had the guarantee of irrevocable credits, open
by banks classified by the control body as
of recognized solvency from abroad;

directing the credit operations of the
entities of the national financial system and entities

2. Confirmed import letters of credit and

non-financial companies that grant credits above the limits

guarantees that are issued with collaterals against

established by the Board. To this end, it will consider, between

sufficient guarantees, in accordance with regulation

others, the segments, interest rates, guarantees and limits

issued by the Monetary Policy and Regulation Board and

of credit. In no case may the Board intervene in the

Financial;

definition of the natural or legal person receiving the
credit operations.

3. The guarantees granted on behalf and risk of entities
private financial institutions from abroad, rated by the

For this purpose, the Board will consider the matching of terms

control body as of recognized solvency,

between the assets and liabilities of regulated entities.

provided they have documentary support
sufficient, in security and to the satisfaction of the entity,

The Board may establish incentives for the

in accordance with the regulation issued by the Board of

implementation of this provision.

Monetary and Financial Policy and Regulation; Y,

Article 210.- Limits for active operations and
contingents.

4. Active and contingent operations between entities
financial, with the restrictions determined by the Board
of Monetary and Financial Policy and Regulation.

Public and private financial entities and those of the
segment 1 of the popular and solidarity financial sector
may carry out active and contingent operations with a
same natural or legal person for a sum that exceeds,
together, 10% of the technical assets of the

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38 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Article 212.- Limits for financial group. When

equivalent to twenty-five basic fractions exempt from

for a financial group, the percentages provided for in the

income tax, for each person. For entities

Article 210, will be computed on the technical heritage

financial institutions of the popular and solidarity economy

consolidated financial group.

will observe the credit quotas established in this
Code.

Article 213.- Presumption of a single credit subject.
For the purposes of the limits determined in article 210,

Administrators of public financial institutions and

it will be presumed that the persons constitute a single subject

private and their relatives within the fourth degree of

individual natural or legal entities when:

consanguinity and second of affinity, they will be able to access
educational credit operations in the same entity in the

1. Are shareholders directly or indirectly in 20% or
more than the capital of the same legal entity;

that work, under market conditions, in accordance
with the limits determined by the Policy Board and
Monetary and Financial Regulation.

2. There are business relationships, capital or
administration that allow one or more of them
exert a significant and permanent influence on the
decisions of the others;

Article 216.- Related persons. Will be considered
persons linked to the ownership or administration of the
public or private financial entity, the following:

3. There are data or well-founded information that various
people have relationships of such a nature that
they are in fact a unit of economic interest;
Y,
4. The others defined by the control body through

1. The natural or legal persons who own, directly or
indirectly, the lesser of the following
literals:
to. 1% or more of the subscribed and paid capital of the
financial entity; or,

rule.
Article 214.- Guarantees of credit operations.

b. Subscribed and paid capital of the financial institution by

All credit operations must be

an amount greater than or equal to one hundred basic fractions

guaranteed. The Board of Policy and Monetary Regulation and

exempt from income tax.

Financial, in a motivated manner, will establish the cases in which
2. People with patrimonial property with influence of

which credit operations must have collateral
minimum, in terms of quality and minimum coverage.

a subsidiary or affiliated entity belonging to a
Financial group;

Article 215.- Prohibition of operations with
3. The legal persons in which the administrators

linked. Public financial entities are prohibited
and private companies and their subsidiaries or affiliates carry out

or officials who approve credit operations of

active, passive, contingent and service operations

a financial institution directly or indirectly owns

with natural or legal persons linked directly or

more than 3% of the capital of said companies;

indirectly with your administration. They are excepted from this
prohibition of operations determined in article 194

4. Spouses, partners or relatives within the

numeral 1 literal to numeral 7; literal b numerals 1 and 2; Y,

second degree of consanguinity and relatives up to

literal d, numerals 1 and 4. The aforementioned entities

the first degree of affinity of the shareholders who are

may issue debit and payment cards in favor of these

people with patrimonial property with influence and

linked persons.

administrators of a financial institution;
5. Relatives in third and fourth degree of consanguinity

Private financial entities are also
prohibited from carrying out operations with natural persons

and the relatives of the second degree of affinity of the

and legal entities directly or indirectly related to the

shareholders with more than 12% of the shareholding package and

owned by such entities, with the exception of

of the administrators of a financial institution;

operations excluded in the preceding paragraph. Same
6. Spouses, partners or relatives within the

prohibition will apply to financial entities
popular and solidarity, considering the provisions of the

second degree of consanguinity or first degree of affinity

Article 450.

of the officials of a financial institution that
approve credit operations; Y,

There is no capital of a financial institution
7. Legal persons in which the spouses, the

property bonding in financial entities

cohabiting, relatives within the second degree of

public and popular and solidarity.

consanguinity or first affinity of the
Public and private financial entities may

administrators or officials who approve

carry out credit operations in favor of its employees

credit operations of a financial institution,

that do not belong to the entity's administration,

own shares for 3% or more of the capital of said

only under market conditions and within the

societies.

limits determined by the Policy and Regulation Board
Monetary and Financial, which may not exceed the

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 39

For entities of the popular and solidarity financial sector,

The entities of the national financial system will be

there will only be a link in numbers 3 and 7 of this

obliged to give access to control bodies and the

article, and in operations that exceed the quotas of

Internal Revenue Service to accounting, books,

credit established in this Code and in the regulations that

correspondence, files or supporting documents of

issued by the Monetary Policy and Regulation Board and

your operations, electronically in real time and

Financial

physical, without limitation.

Article 217.- People linked by presumption. They are

Article 221.- Publication of the financial statements.

persons linked by presumption, in the entities of the

The entities of the national financial system will publish the

national financial system, the following:

financial statements, profit and loss, position of
technical assets and indicators of liquidity, solvency,

1. Those who have received credits under conditions

efficiency and profitability, which must contain

preferential terms, interest rates, lack of

additionally the opinion of the external auditor qualified by

surety or disproportionate to the patrimony

the respective superintendency and all explanatory notes

of the debtor or their ability to pay;

that complement the information included in your
opinion, at least once a year at the end of each financial year

2. Those who have received unsecured credits

as of December 31, or when the control bodies thus

adequately, without antecedents or domiciled in the

have it, in accordance with the established standards

foreigner and without available information about them;

for the effect.

3. Those who have received reciprocity credits with
another financial entity;

In the case of financial groups and popular groups and
solidarity, each of the member entities will present
to the superintendency and publish, together with the

4. Those that have preferential treatments in

reports of the internal auditors and the external auditor

passive operations; Y,

qualified by the respective superintendency, their states
individual financial statements, as well as financial statements

5. Those that are declared presumptive, in accordance with the

consolidated and audited of the group.

general norms dictated by the organisms
of control.

The publication will be made in a newspaper of the constituency
territory in which the entity has coverage and on the page
Section 7 Of the regime

website of each financial institution.

financial and accounting
Article 218.- Accounting standards. The entities of the
national financial system must submit to the
policies and regulations on accounting and statements
financial statements issued by the Board of Policy and Regulation

Article 222.- Publication of the superintendencies. The
control bodies will disclose and publish information
financial and statistical of the national financial system by
financial sector and each entity in particular.

Monetary and Financial, as well as the control standards
that on these matters dictate, in a supplementary way and not

Article 223.- Information on financial statements. If the
financial statements contain information allegedly

contradictory, the respective control bodies.

false, the superintendencies must denounce this
Article 219.- Financial statements. The states
financial institutions of the national financial system,
cut-off as of December 31 of each year, they must be
signed by the legal representative and the general accountant of
the entity and will have the opinion of the internal auditors
and external qualified by the superintendencies, according to
case.

particular to the Attorney General of the State.
Article 224.- Information on the situation of the
financial entities. The control bodies
periodically inform the general public regarding
of the financial situation of the entities subject to its
control. At least the structure will be reported
financial, asset quality, including results

The General Shareholders' Meeting or the body that makes
its times, until March 31 of each year it will approve the
audited financial statements of financial entities,
cut off as of December 31 of the previous year, which will be
submitted to the corresponding control body.

general reports of the last rating of your risk assets,
technical equity position and solvency indicators,
liquidity, efficiency and profitability.
Article 225.- File of the information. Entities
of the national financial system will keep their files

Article 220.- Presentation of financial statements to the
control organism. System entities
national financial institution will present the respective
control bodies the financial statements, including their
consolidated and combined balance sheets, subscribed by the
legal representative and the general accountant of the entity, and the
additional information that is required, in the formats and
with the periodicity determined by the superintendencies.

physical accounting, including the respective endorsements, by
within ten years from the conclusion of the
the corresponding operation and for fifteen years in the
digital format authorized by the superintendencies.
The information provided by financial entities
and certified copies and reproductions issued by a
authorized official of the financial institution will have
similar probative value as the original documents.

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40 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Section 8 Control and
audits

will proceed immediately to replace it. The financial institution
may not terminate the contract with the external auditor without
have the authorization of the control body.

Article 226.- Control of financial activities.
The superintendencies, in accordance with their powers,
control the financial activities of the system

Article 232.- Responsibility of the external auditor. The
external auditor will be responsible for performing

national financial.

external audits in each of the entities
financial The external audit includes, among others, the

Article 227.- Internal control systems. All

following actions:

entities of the national financial system must have
with internal control systems to ensure effectiveness
and efficiency of its activities, the reliability of the
information and compliance with laws and regulations
applicable.

1. Issue an independent opinion on the veracity or
accuracy of financial statements, reporting systems
accounting and its vouchers and supports and give an opinion if
the financial statements examined present
reasonably the financial situation of the entity at the

Article 228.- Audits. System entities
national financial institution will have an internal auditor and an auditor
external, registered and qualified as to their suitability and
experience by the corresponding superintendencies.

Internal and external auditors will be responsible
administratively, civilly and criminally for the reports and
opinions they issue.

December 31 and the results of its operations
during the fiscal year ended on that date, from
compliance with established accounting standards and
generally accepted accounting principles,
in what these are not opposed to the previous ones, thus
as about its uniform application;

2. To rule on the sufficiency and effectiveness of the

Article 229.- Internal auditor. The internal auditor is a
natural person appointed by the General Board of

internal control systems, structure and
administrative procedures, and evaluate them;

Shareholders or the body acting in their place, and may be
3. Give your opinion on whether the financial activities and their procedures

removed at any time by the organism that

comply with the applicable legislation, and the

appointed, for the reasons determined by the
superintendencies. In the event of permanent absence, the Board

instructions issued to this effect by the Superintendency;

General Shareholders or the body acting in its place
4. Give your opinion on the information related to

will proceed to designate his replacement.

investments that the financial institution maintains in
Article 230.- Responsibility of the internal auditor. The
internal auditor will verify that the activities and
the entity's procedures are in accordance with the

subsidiaries or affiliates, both in the country and in the
Exterior. In this case, you should comment on the
nature and amount of operations between
investor and recipient of the investment, their

provisions of this Code, the regulations issued
the Monetary and Financial Policy and Regulation Board, the
statutes and accounting principles dictated by the
superintendencies and those of general acceptance. In addition, the

existing relationships and the effects of
consolidation on the entity's equity
audited;

internal auditor will monitor the operation of the
internal control and compliance with the resolutions of the
control bodies, the General Shareholders' Meeting,

5. Give your opinion on compliance with the controls to avoid
illicit activities, including money laundering and

of the board of directors or of the organizations that act in their place

financing of crimes such as terrorism and others

issue an opinion on the proper functioning of the

crimes;

corporate or cooperative governance, among others.
6. Give your opinion on the fulfillment of the corrective measures
The internal auditor will present to the board of directors or the body

that had been recommended in the previous report

to take over from the control bodies, any

on the aspects indicated in the numerals

information that is requested and those that the auditors

previous; Y,

consider necessary.
7. Inform about the other requirements that the
Article 231.- External auditor. The external auditor of a

respective control body has, assuming

financial entity may be a natural or legal person,

full responsibility for the reports they issue,

will be selected by the General Shareholders' Meeting or the

conformity with the standards issued by the

body to take its place and may be hired by

superintendencies.

financial entities for consecutive annual periods
up to three years, observing the criteria of

The external auditor will act as commissioner of the entity

alternation and referential prices that the

financial, in the terms established in the Law of

control set for the effect. The superintendencies

Companies; will have the functions that are determined in this

may, at their sole discretion and in a motivated manner, provide the

Code and in the tax laws, as well as in the

termination of the contract with the external auditor; in this

provisions issued by the control body

case, the financial institution

correspondent.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 41

Article 233.- Limitation. The external auditor may only

national. The periodicity and relevance for the rest of

provide the audit services for which it was

entities of the popular and solidarity financial sector will be

contracted and may not provide any other service or

determined by the Monetary Policy and Regulation Board

collaboration with the audited entity through people

and Financial. The entities of the national financial system

natural or legal directly and indirectly related.

will be obliged to expose in a visible place, in all

Likewise, the external auditor may not, within the year

customer service agencies and on its website, the

following the termination of your contract, provide any

Last risk rating granted.

other service to the audited entity.
Only risk ratings can be published
The natural or legal person cannot be an external auditor

carried out by companies authorized by the

who had provided services, other than auditing

watchdogs.

external, to the financial institution in the year immediately
The members of the risk rating committee and the

previous.

technical staff involved in the processes of
In the case of financial groups and groups

rating, they will respond jointly with the rating agency

popular and supportive, the entities that make them up

risk for damages arising from their actions, without

they will necessarily have the same external auditor or signatures

prejudice to the criminal responsibility that may arise.

correspondents or associated with it.
Section 9 Of the
obligations

Article 234.- Review of audits. The organisms of
control will have full supervisory powers of the process
applied audit and the quality and consistency of the

Article 238.- Responsibility for solvency. The

results achieved by internal audits and

shareholders and partners of the entities of the sectors

external.

private and popular and supportive financier will answer for the
solvency of the entity up to the amount of its shares
or participations.

Article 235.- Audit reports. The reports of
audit are reserved to the public for a period of ten

In the event of forced liquidation of a financial institution

years.

private, shareholders who, directly or indirectly, are
Audit reports will not be reserved or enjoyed

people with patrimonial property with influence,

of secrecy and reserve in the investigation processes in charge

will respond even with their personal assets in case

of the State Attorney General's Office or the General Comptroller's Office

that they have incurred intent, gross negligence or slight fault.

of the State. Neither will the reports of

The trusts created to

audit when requested by the Policy Board and

manage shares, their constituents and

Monetary and Financial Regulation, which will observe the

administrators of the financial system entities

secrecy and confidentiality rules established in this Code.

national.

Article 236.- Control of the national financial system.

The related parties and

Control of public and private financial entities

the officials involved in the acts determined in the

it will be carried out in accordance with the provisions

Article 305.

specific for each financial sector constant in this
Article 239.- Financial indicators, liquidity, capital and

Code.

heritage. The entities of the national financial system
Article 237.- Risk qualifiers. Solvency and

They must comply, at all times, with the rules referring to

capacity of the entities of the national financial system

financial indicators, liquidity, capital and equity

to manage risks with third parties and comply with their

determined in this Code and the regulations issued by the

obligations to the public will be graded on the basis of

Monetary and Financial Policy and Regulation Board of

minimum parameters that include a uniform scale of

compliance with the type of entity, the control systems

risk rating by financial sectors, according to

internal and risk management appropriate to the size

with the regulations issued by the Policy Board and

and complexity of the financial institution.

Monetary and Financial Regulation.
Article 240.- Lace. The entities of the sectors
The risk rating may be carried out by companies

public and private financial institutions, without prejudice to the other

national or foreign risk rating agencies, or

reservations provided by this Code, are obliged to

associated with each other, with experience and recognized

maintain reserve requirements on deposits and deposits that

prestige, qualified as suitable by the

are in charge. The reserve will not be remunerated and

control. The hiring of these firms will be carried out

will keep in the Central Bank of Ecuador.

through selection procedures, guaranteeing the
In the event that public financial institutions and

alternation.

private do not comply with the required reserve levels,
The qualification will be carried out on December 31 of each

The Superintendency of Banks will order the entity to

year, and will be reviewed at least quarterly for the

immediate contribution of the necessary resources to cover the

entities of the public, private and financial sectors

disengagement.

popular and solidarity segment 1, and will be published by the
watchdogs in a newspaper circulating

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42 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

For entities of the popular and solidarity financial sector,

Article 245.- Information to shareholders and partners.

the Monetary and Financial Policy and Regulation Board

The entities of the national financial system must

will establish the conditions of differentiated reserve by

present to its shareholders and partners, as appropriate, at the

segments for this sector.

minus the following information:

Article 241.- Regulation of the reserve. The Policy Board

1. Management report;

and Monetary and Financial Regulation will regulate in a
differentiated reserve percentages, which may be by

2. Comparative balance sheets of the last two
years;

deposit structure, type of entity, among others.
Article 242.- Delivery of information. The entities of the
national financial system are obliged to deliver the

3. Statement of changes in financial situation
corresponding to the last year;

information that is required of them by the
control and the Internal Revenue Service, directly,

4. Profit and loss statement for the last two years;

without restriction, procedure or intermediation, in the
conditions and form that these entities provide,

5. Report of the internal and external auditors rated by
the respective superintendency;

exclusively for management purposes.
Legal, financial, accounting and any other information

6. Report from the risk rating agency, when
corresponds;

type that is required of entities subject to this
Code by the respective control bodies may be
dematerialized and signed by means of electronic signature

7. Position of the technical heritage;

duly certified by one of the entities
authorized, under the terms provided in the Law of
Electronic Commerce, Signatures and Data Messages. Each

8. Indicators of liquidity, solvency, efficiency and
cost effectiveness;

control body will establish, for its implementation,
the provisions inherent to each type of information.

9. Rating of risk assets for the last financial year
economic; Y,

The entities of the national financial system, in accordance
with the provisions of this Code, they have the obligation

10. Salaries, compensations and other benefits of
its administrators.

to provide through the control bodies
any information required by the Policy Board and
Monetary and Financial Regulation, in the times that

In the case of financial groups, the information must

set for the effect.

be presented in a consolidated and individual way
for each of the group's member entities.

The information requirements formulated by the Bank
Central del Ecuador, the Insurance Corporation of

The information determined in this article must be at

Deposits and Liquidity Fund, the National Council of

available to the general public through its page

Control of Narcotic and Psychotropic Substances

website and in its annual report, in the manner determined by the

CONSEP and the Financial Analysis Unit UAF, will be

watchdogs.

processed in accordance with the provisions of this
Article 246.- Information to the financial user. The

Code and the law.

entities of the national financial system have the
If by express legal provision, other institutions of the

obligation to inform financial users, in the

State have the need to request information from

formats defined by the control body, at least

financial entities, this requirement must be

following:

channeled through the control bodies, which,
After determining its cause and purposes, they will collect it and

1. Your main financial indicators;

will deliver.

2. The annual effective active and passive interest rates;

Article 243.- Money laundering and financing of

3. Charges for financial services;

crimes such as terrorism. Laundering offenses
of assets and financing of crimes such as terrorism,
sanctioned in accordance with the provisions of the

4. The general conditions of financial activities
that they provide;

Comprehensive Organic Penal Code and the Prevention Law,
Detection and Eradication of the Crime of Money Laundering and

5. The risk rating, when applicable;

Financing of Crimes.
6. The status of the operations that a user maintains
Article 244.- Control and prevention of laundering

with the entity;

assets. The entities of the national financial system
have the obligation to establish control systems
for the prevention of crimes, including money laundering

7. The benefits and limitations of the services provided
they are bidding;

assets and the financing of crimes such as terrorism, in
all financial operations.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 43

8. The procedure for handling claims before

Article 251.- Customer service. The entities of the

the financial institution;

National Financial System will have systems of
customer service regarding operations and services

9. A copy of the physical document, when the Institution
financial requires the user's signature; Y,

that they provide, that facilitate the resolution of disputes
arising with its financial users.

10. In case of agreeing that certain services as states

Unresolved controversies or claims before the entity

users' accounts are sent in a manner

financial institution may be filed before the

electronic, the physical bank certification that is

corresponding control, without prejudice to the actions

required will have no cost.

judicial that may be presented.

Article 247.- Charges for financial services. The

Article 252.- Adhesion contracts. Services

entities of the national financial system will not apply or

Financial can only be provided prior subscription of

charge fees for services that have not been rendered

an adhesion contract whose mandatory clauses and

by the entity, nor may they establish charges for services

prohibitions must be approved by the

financial institutions that are not authorized by the Policy Board

control.

and Monetary and Financial Regulation. Any charge
The contracts will not include those clauses prohibited by

made contrary to this provision shall be
returned to the financial user, without prejudice to the

the legislation. Any stipulation to the contrary or those
clauses that imply resignation or reduction of a

sanctions that may be applicable.

right of the financial user recognized by law, will be
Article 248.- Charges for non-financial services. The
entities of the national financial system may not
make any charge for the provision of services
other than financial, on behalf of third parties, if not
comply with the regulation issued by the Board for the
effect or do not have the prior and express acceptance of the
Username.

null and void.
Article 253.- Fraudulent advertising. The entities of the
national financial system will be responsible for their activities
financial and the deficient provision of their services,
when their conditions are not in accordance with the
advertising made or with the description that they incorporate.
Section 10 Of the

Acceptance must be verifiable in any way

prohibitions

recognized by law. Charges collected that do not count
with the express acceptance of the user must be

Article 254.- General prohibition. It is forbidden to

restored, without prejudice to any penalties

natural or legal persons that are not part of the

place.

national financial system attract resources from third parties or
carry out, on a regular basis, financial activities

Article 249.- Suspension of charges or payments for

defined in article 143 reserved for entities

lost. In case of loss, theft, robbery or theft of

that make up said system.

debit, credit, ATM, check or
any other instrument that has a similar objective, the

Nor may they advertise or use notices, posters,

entities of the national financial system will suspend

receipts, letterheads, titles or any other means that

any charge or payment on behalf of its clients, from

suggest that the aforementioned people's business is

of the time in which these events are notified, either by
written, by telephone or by any other means that
constitutes a means of proof, in accordance with the provisions of

financial nature.
Violations of the provisions of this article will be
sanctioned in accordance with the provisions of this Code.

the law.
The charges or payments made by the financial institution for
account of their clients, who have not taken into account the

Article 255.- Prohibitions to entities of the system
national financial. The entities of the
national financial system:

notification of loss, theft, theft or theft, will be
assumed by the entity.

1. Carry out financial activities that are not authorized

The entity will also assume the responsibilities that are
derive from computer fraud caused by the weakness or
defects in their systems.

by the control bodies, or that do not have the
authorization from the Board of Policy and Regulation
Monetary and Financial referred to in article 14
numeral 37;

The charges or payments made by the entities

2. Carry out operations that involve pyramiding of

financial services on behalf of their customers attributable to them
they will be your own responsibility.

capital, especially granting direct credit,
indirect and contingent so that your

Article 250.- Compulsory insurance. Before disbursement

product is destined, directly or indirectly, to the
subscription and payment of shares or participations of the

of credit operations, the entities of the system
national financial institution should require the contracting of
insurance determined by the Policy and Regulation Board

own entity or any other company in the group
financier or popular and solidarity group;

Monetary and Financial.

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44 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

3. Carry out direct and indirect credit operations and

20. Buy property owned by the administrators,

contingents, receiving as guarantee their own

officers or employees of the entity, or to persons

shares or participations, or companies

to act on his behalf and on his behalf; Y,

subsidiaries or affiliates belonging to the same group
financier or popular and solidarity group;

21. Deny the opening of any type of account, without
There is valid justification.

4. Arbitrarily freezing or withholding funds or deposits;
Non-financial entities that grant credit for over
5. Carry out active and contingent operations with

The limits established by the Board are subject to the

linked persons or over the established quotas

prohibitions determined in numbers 9, 11, 12, 14,

in this Code as appropriate;

15, 16, and 18 of this article.

6. Acquire fixed income securities issued, guaranteed or

Article 256.- Prohibition of participation as

guaranteed by the entity or companies that

shareholder. Private financial institutions and

join your financial group or popular and solidarity group

shareholders of a private financial institution who are

under conditions other than market conditions,

people with patrimonial property with influence, not

in accordance with the standards issued by the Board of

may be holders, directly or indirectly, of shares or

Monetary and Financial Policy and Regulation;

participations of companies, companies or societies
non-financial activities. This prohibition

7. Negotiate within the same financial group or group

it is also applicable to the shareholders of an entity

popular and solidary shares owned by

financial that, even when individually considered

any of its members;

are not people with patrimonial property with influence,
at the discretion of the control body maintain ties
economic, corporate business and / or family and in

8. Acquire debts for amounts greater than the
determined by the Board of Policy and Regulation

set exceed the percentage or values ​of article 169, or

Monetary and Financial;

that form a unit of economic interest, of
compliance with this Code. They will not be able to participate either
as shareholders in companies outside the activity

9. Carry out credit operations over the limits

financial administrators of financial institutions.

authorized in the regulation;
10. Issue short-term obligations or commercial paper,

It will be understood that the shareholders are indirect owners

with the exception of financial services entities

when they exercise their property right over 6% or more

and auxiliary services of the financial system;

of the securities representing the capital of companies
commercial activities outside of financial activity through

11. Charge interest over the established maximums;

trusts, economic and corporate ties, others
mechanisms or through these by means of their

12. Charging late payment interest or penalties on capital not

spouses or partners.

defeated;
Notwithstanding the foregoing, the control bodies
13. Violating confidentiality or confidentiality;

may establish other types of indirect ownership that
may be derived from investigations carried out.

14. Adulterate or distort financial statements;
Failure to comply with the prohibition established in this
15. Grant guarantees other than those determined by the

article by financial institutions, their

Monetary and Financial Policy Board, or request

shareholders or administrators, will be sanctioned as

lower guarantees in quality and quantity than

very serious infringement and with the suspension of your rights

established by said Board;

as partners or shareholders of the respective entity
financial and with the removal of their positions in the case of

16. Perform any form of misleading advertising,

administrators.

abusive or misleading in the choice of
services, which may affect the interests and rights of

The control body will also order the seizure

financial users;

of the shares or participations of the respective entity
non-financial and its subsequent sale at public auction. The

17. Constitute liens without authorization on property of
entity property;

values ​obtained from said sale, once
discounting the expenses incurred by the
State and the amount of the corresponding penalties, will be

18. Market the databases of its clients;

delivered to each of the shareholders or administrators

19. Dispose of or lease, in any way, the assets of

of private financial entities, their spouses or
cohabiting, involved in the prohibition.

owned by the entity or those who are
mortgaged or pledged to her, in favor of the
administrators, officers or employees, or

Article 257.- Impediments for shareholders and
administrators. The shareholders, administrators and

people acting on his behalf and on his

officials of private financial entities and

representation;

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 45

administrators and officials of financial institutions
popular and solidarity, on which has been established

10. Those who for any reason are legally
disabled.

responsibility with respect to an entity declared in
forced liquidation, by means of a conviction, not

The prohibitions contained in numbers 2 to 9 of

may be nominated for popularly elected positions, or

this article are applicable to legal representatives,

act as public servants, or be part of a

vice presidents, managers, assistant managers and internal auditors

entity of the national financial system.

of the entities of the national financial system, or who
will take his place, in the cases that correspond.

This prohibition will be in force for five years from
of the date they have served their sentence

No more than 40% of the directors or members of the board

damning.

management of an entity that controls a group
financial or popular and solidarity group may integrate

In case of incurring in this prohibition, the nominations,

also the directory of its subsidiaries.

appointments or contracts of these people will be left without
The prohibitions and inabilities indicated in this article

effect.

will be applicable except for numeral 7 also in the
This prohibition shall apply without prejudice to the provisions of the

cases in which it is a question of supervening events

Article 113 numeral 2 of the Constitution of the Republic.

exercise of functions.

Article 258.- Impediments for members of the

The appointment of the members of the board of directors or

board of directors and boards of administration and surveillance. Not

body acting as a system entity

may be members of the board of directors or of the councils of

national financial institution, will be communicated to the respective

administration or supervisory councils of an entity of the

control body for the qualification of the suitability of

national financial system:

this people; in the rating process the body
control will verify, among others, that those designated are not

1. Managers, general representatives, internal auditors

are subject to the indicated prohibitions. The

and external, and natural and legal persons that

member of the board of directors or of the body acting in his place,

perform supervisory support work and more

will take possession of your designation once you have

officers and employees of the entity, whatever

the qualification granted by the control organisms. On

its name and its subsidiaries or

in the event that the member of the board of directors or of the

affiliates;

management is not qualified, the financial institution
you will need to replace it.

2. The directors, members of the boards of
administration and surveillance, legal representatives,

Article 259.- Prohibitions for servers. The

general representatives, internal and external auditors of

public servants of the Board of Policy and Regulation

other entities of the same species. This prohibition

Monetary and Financial, of the control organisms, of the

does not apply between entities of the Financial Sector

Central Bank of Ecuador and the Insurance Corporation

Public;

Deposit, Liquidity Fund and Insurance Fund
Private will be subject to the general prohibitions

3. Those who are in default of their obligations for

determined in the Organic Law of the Public Service.

more than sixty days with any of the entities
of the National Financial System subject to this Code;

It is forbidden for these servers to reveal any
information subject to secrecy and confidentiality that is under

4. Who in the course of the last five years

his knowledge in the performance of his position.

had been removed by the control body;
Section 11 Of the
5. Who in the course of the last sixty days

Infringements and sanctions

have firm obligations with the Revenue Service
Internal or with the Ecuadorian Security Institute

Article 260.- Infractions. Infractions are scored

Social;

as very serious, serious and minor.

6. Who in the course of the last five years

Article 261.- Very serious offenses. They are infractions

would have incurred in punishment of their obligations for

very serious the following:

part of any financial entity;
1. Failure to observe the constant prohibitions in the article
7. Those who were litigating against the entity;
8. Those who have been convicted of a crime, while
the sentence is pending and up to five years after serving;

255 numerals 1, 2, 3, 4, 5, 6, 7, 8 and 9;
2. Failure to observe the rules of the Policy Board and
Monetary and Financial Regulation and standards and
provisions issued by the superintendencies;

9. The spouse or partner or the relative inside the room
degree of consanguinity or second of affinity of a
principal or alternate director, member and administrators of

3. Perform operations that are not inside the object
social entity of the entity;

the private or popular financial sector entity and
solidarity in question; Y

4. Simulate capital increases;

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46 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

5. Maintain shares in companies outside the activity

1. Breach the prohibitions determined in article 255

financial over the limits determined in the

numerals 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and

article 256;

twenty-one;

6. Failure to observe the internal control provisions on
crime prevention, including money laundering

2. Failure to observe the provisions related to
rights of financial users;

and financing of crimes such as terrorism,
determined in article 244;

3. Failure to observe the provisions regarding the regime
financial and accounting;

7. Failure to observe the provisions on capital, reserves and
solvency set forth in this Code;
8. Failure to observe the provisions on assets, limits of
credit, provisions and credit orientation;

4. Failure to observe the provisions on internal control;
5. Failure to observe the provisions on service charges
financial and non-financial;
6. Carry out association agreements without having the

9. Execute merge, conversion or exclusion operations

authorization from the superintendencies;

and transfer of assets and liabilities, excluding the
authorization of control bodies;

7. Modify the bylaws of the financial institution
without authorization from the control body;

10. Participate as a shareholder of financial entities
foreign companies incorporated or to be constituted, without the
authorization from the respective superintendency;

11. Deny, impede, hinder or hinder the control and

8. Failure to pay the contributions and contributions provided in the
Code;
9. Use adhesion contracts without respecting the

surveillance by the control bodies of the

minimum conditions and determined prohibitions

State, within the scope of its powers;

by the superintendencies;

12. Falsify documents and information or hide partial or
totally, by any act or means, the

10. Open offices without the respective permission of
functioning;

from

real situation of the financial institution;
11. Failure to pay the fine imposed for a minor infraction;
13. Failure to observe the provisions related to
delivery of information required by the institutions
of the State determined in this Code, in the field
of its powers;

12. Committing two or more minor offenses in the
one year term; Y,
13. The others provided in this Code.

14. Carry out acts of disposition of goods and values ​of
an entity subject to suspension of operations, of

Article 263.- Minor offenses. They are minor offenses,
the following:

in accordance with the provisions of article 292, or in causal
of forced liquidation, once arranged;

1. Unauthorized modification of the working hours
Public attention;

15. Granting credit operations to public entities
without observing the procedure established in the Code
Organic Planning and Public Finance;

2. Failure to provide shareholders or partners with the information
provided in this Code;

16. Failure to comply with the prohibitions determined in the
articles 40 and 41;

3. The presentation with errors and inconsistencies of the
reports to which the financial institution is obliged; Y,

17. Operate correspondents without the established authorization

4. The others provided in this Code.

in article 36 numeral 21;
Article 264.- Administrative sanctions. Settle down
18. Failure to pay the fine imposed for a serious offense;

the following sanctions:

19. The commission of two or more serious offenses in the

1. For very serious offenses, a fine of up to 0.01%

one year term;

of the assets of the offending entity, the removal of
the administrators and / or the revocation of the

20. Distributing advance dividends without authorization or

authorizations;

profits when the control body has
2. For serious infractions, fines of up to 0.005% of the

otherwise provided; Y,

assets of the offending entity, the suspension of
21. The others provided in this Code.

administrators for up to ninety days and / or
admonition; Y,

Article 262.- Serious offenses. They are infractions
serious the following:

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 47

3. For minor infractions, fines of up to 0.001% of the
assets of the offending entity.

The fines imposed will be deposited in the Single Account
of the National Treasury.

In no case a financial penalty for an entity

Article 268.- Subjects responsible for the offense.

financial infringing public, private or popular and solidarity,

The entities responsible for the infractions are

belonging to segment 1, may be less than thirty

financial institution, its shareholders, administrators, officials or

unified basic wages.

employees and other persons referred to in article 276
that, by action or omission, incur the infractions

Regarding the other popular financial institutions and
solidarity, the financial penalty may not be less than one
unified basic salary.

typified in this Code.
They are also responsible for natural persons and
non-financial legal persons that incur in the
violations determined in this Code, when

The amount of the fines will be consigned in the Single Account
of the National Treasury, in accordance with the provisions of the
Article 267 of this Code

corresponds.
The imposition of sanctions, in no case, will relieve the
violator of the fulfillment of the obligation whose

Article 265.- Grade and criteria. The sanctions are

non-compliance motivated the sanction.

will graduate in attention to the seriousness of the fault, damages
caused to third parties, negligence, intentionality,

Article 269.- Prescription of infractions. The

recidivism or any other aggravating circumstance or

very serious infractions prescribe in eight years, the

extenuating.

serious offenses within five years and minor offenses
prescribe in three years, counted from the date of the

In the case of very serious and serious offenses, the

infringement.

superintendencies, depending on the criteria indicated
in the preceding paragraph, in addition to the financial penalty,

The prescription will be interrupted with the start of the

may impose the other sanctions determined for

sanctioning procedure.

each type of offense.
Article 270.- Extinction of sanctions. The sanctions
imposed may be extinguished in the following cases:

If the same fact constitutes two or more
administrative offenses, the
More serious. If the two offenses are equally serious,
the one that entails a sanction of

1. For compliance with the sanction;
2. For the acceptance of claim or administrative appeal; Y,

higher pecuniary value.
3. By court ruling.
Firm financial penalties will cause interest
Article 271.- Sanction to officials and servants of

corresponding.

control bodies. The non-observance of the
Article 266.- Concurrence of sanctions. The

prohibition provided in article 259 will be sanctioned by

imposition of the sanctions provided in this Code is

the corresponding appointing authorities,

independent of any other sanction that could be
apply for acts that violate other provisions of the
Code and do not limit the application of civil penalties or
corresponding penalties, in accordance with the law.

in accordance with the provisions of the Organic Law of the
Public Service and Labor Code, as the case may be.
Article 272.- Penalty for disclosure of information.
The natural or legal persons that disclose, in all or
in part, information subject to secrecy or confidentiality, will be

In no case can a person be sanctioned

punished with a fine of twenty-five wages

administratively twice by the same body, for

unified basic principles, without prejudice to criminal responsibility

the same cause.

corresponding.

Article 267.- Form of application of sanctions. The
fines imposed on financial entities, once in

Article 273.- Civil liability. Without prejudice to the
administrative sanctions referred to in this section

firm, they will be made effective through account debits

and the corrective provisions ordered by the

owned by financial entities in the Central Bank

control bodies, financial institutions

of Ecuador.

They will respond civilly for the actions or omissions that
cause harm to financial users or

In case of not being able to make the debit indicated in the subsection

state agencies, in accordance with the law.

above, the control body will issue the certificate of
corresponding credit, which may be collected

Article 274.- Crimes. At any time, when

administratively by coercive or judicial means.

control agencies of the National Financial System, in
the exercise of their control functions, have

The fines imposed on administrators, officials or

knowledge of the perpetration of a related crime

employees of a financial institution will become effective

with financial activities, including money laundering

through titles that can be collected through the
coercive jurisdiction or by any other means.

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48 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

assets and financing of crimes such as terrorism,

The sanctions will appear in a motivated administrative act.

They will be obliged to report these facts to the Prosecutor's Office
General of the State, and in the latter case it will be notified

The superintendencies may adopt the measures

in addition to the Financial Analysis Unit UAF, for the

precautionary measures that they consider necessary in order to

consequent ends.

safeguard the interests of the people.

The exercise of criminal action will be independent of the

The superintendencies have the obligation to initiate the

civil and administrative penalties.

corresponding investigation procedures, within
of the period of thirty days counted from the receipt of

Article 275.- Sanction for unauthorized activities.

any complaint brought to your attention by the Board

The Superintendency of Popular and Solidarity Economy,

of Monetary and Financial Policy and Regulation. The

with respect to the entities of the popular economy and

non-observance

solidarity that are alleged violators of the prohibition

administrative, civil or criminal responsibilities that

determined in Article 254, will have the same

correspond.

from

is

obligation

will cause

the

powers of inspection conferred by this Code
with respect to the entities of the popular financial sector and
solidary.

Article

277.-

sanctioner.

The Superintendency of Banks will have, with respect to the
people who are not part of the popular economy and

Process
The

administrative

superintendencies

will sanction

observing the following procedure:
1. Identification of the offense;

solidarity and are alleged violators of the prohibition
determined in article 254, the same

2. Notification of the infringement within a period of up to ten

powers of inspection conferred by this Code

days from its identification, which begins the

with respect to financial entities.

administrative sanctioning procedure;

In these cases, the control bodies will provide the
immediate suspension of activities, closure of
offices, notify the Attorney General of the State and
will provide any other precautionary measure tending to
protect people's interests. These
transgressions will be administratively sanctioned with

3. Once notified, the alleged offender within the term of
ten days, you can present all legal evidence of
those that are created assisted. This term may be extended
for a single time and at the request of a party, for the term of
five additional days;

a fine between five hundred and two thousand five hundred wages
unified basic principles, without prejudice to civil liability and

4. The evidence presented will be processed by the
control body, who will assess them according to the

penal.

rules of sound criticism within the term of twenty
Article 276.- Competence of the superintendencies.

days, being able to require within this term

The competence to sanction the infractions of the

technical and legal reports that you consider necessary.

financial entities of the public and private sectors, their

This term may be extended only once, for

shareholders, administrators, officers or employees,

the term fifteen additional days;

internal and external auditors, risk rating firms,
appraisers and others who provide support services

5. Once the term indicated in the preceding paragraph has concluded,

supervision corresponds to the Superintendency of

the control body, in a motivated manner, will dictate the

Banks.

resolution that corresponds;

The competence to sanction the infractions of the

6. The resolution will be notified by the control body

entities of the popular and solidarity financial sector, their

within three days from the date of your

administrators, officers or employees, auditors

expedition; Y,

internal and external, risk rating firms, experts
appraisers and others who provide support services to the
supervision, corresponds to the Superintendency of the
Popular and Solidarity Economy.

7. During the conduct of the administrative procedure
sanctioner, the parties may access the file
without any restriction.

The competence to sanction the infractions of the
non-financial entities that grant credit, their
administrators, officers or employees and others who
perform supervision support services, corresponds to
the Superintendency of Companies, Securities and Insurance already
the Superintendency of Popular and Solidarity Economy,
depending on the case.

Failure to comply with the terms indicated in this article
will be grounds for dismissal of the responsible public servant.
Article 278.- Challenge. The sanctioning acts
may be challenged at the administrative headquarters or at the headquarters
judicial before the contentious administrative chambers, without
prejudice to other actions determined by law.

The superintendencies, within the scope of their functions,
they will have jurisdiction to sanction any person
natural or legal that, without having the qualities indicated in

The sole filing of a claim, appeal or an action
judicial does not suspend the effects of the sanctioning act.

the preceding paragraphs, commit infractions to this
Code, regulations issued by the Board or standards
issued by control bodies.

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For the presentation of a claim or appeal by the

its operations, which require significant improvements or which

imposition of financial penalties, the appellant must

present clear prospects of breaching the

previously enter the value of the fine imposed.

minimum solvency requirements or have not complied with them.

Article 279.- Sanction by other entities. The

Intensive supervision will also take place at

violation of the prohibitions indicated in the article

financial entities that record losses in the two

255 will be sanctioned by the respective control bodies,

last quarters or when the projection of their business

within the scope of its powers.

indicate that within the next two quarters they could
fall below the minimum level of technical equity
Section 12 Of the

required.

supervision
Article 284.- Intensive supervision program. The
Article 280.- Supervision. The control bodies

Superintendency of Banks or the Superintendency of

provided for in this Code, within the scope of its

Popular and Solidarity Economy will require for its approval

competencies, are required to carry out a process of

an intensive supervision program for entities with

permanent supervision, on-site and off-site, to entities

high and critical risk profile, which should include the

financial, which allows determining the economic situation

set of actions ordered by the body of

and financial management of the entities, the management of their businesses,

control aimed at solving problems in which

evaluate the quality and control of risk management,

incurred by an entity of the national financial system. The

internal control system, the appropriate governance framework

intensive supervision program will be imposed on the

corporate or cooperative, verify the veracity of the

entity by the control bodies in any

information they generate and the other aspects that

moment; the program must be prepared by the

guarantee the proper functioning of the entities and

respective

of the system.

corresponding control body for approval,

entity

financial

Y

presented

to the

within the term established for this purpose. If the entity
The determination of the types of supervision indicated in

financial institution has not presented the program within the

this section and its implementation will be reserved and

deadline, the control body will prepare it and

exclusive power of the control bodies and will not be

will enforce its implementation.

subject to challenge by entities
controlled.

In the case of a subsidiary, the supervision program
intensive must be submitted by the entity that makes

Article 281.- Preventive supervision. Consists of the

head of the financial group.

supervision applied to financial institutions
determined by the corresponding control body

The intensive supervision program will contain the

as very low or low risk profile, understanding

commitments, obligations and deadlines to carry out the

as such to those entities whose economic condition

activities provided therein, in no case may it have a

- financial, quality of corporate or cooperative governance and

term exceeding two years and must detail in a

risk management, among other conditions that

schedule the actions and measures that the entity will take

determined by the control body, they are considered

to solve your situation. The program must be viable,

sufficient for the size and complexity of your

with sustainable assumptions and must be approved by the

operations or presenting minor recommendations

Directory or the body that takes its place.

that do not generate significant concern for the
The Intensive Handicap Supervision Program

supervisor.

patrimonial may not exceed, under any circumstances,
Article 282.- Corrective supervision. Consists of the

the three hundred and sixty days, according to the deadlines

supervision applied to financial institutions

indicated in article 192. Once this period has elapsed, and

determined by the corresponding control body

the equity deficiency persists, this fact will constitute

as medium risk profile, understood as such as

cause of forced liquidation of the entity.

those entities whose economic-financial condition,
quality of corporate or cooperative governance, or management

Article 285.- Control of the supervision program

risk, among other conditions determined by the

intensive. Compliance with supervision programs

control body, show weaknesses of moderate

intensive will be verified by the control organisms of

significant compared to the size and complexity of its

on-site and / or off-site form.

operations and that merit strict monitoring of the
During the execution of the intensive supervision program,

supervisor recommendations.

the superintendencies may review and adjust it and
Article 283.- Intensive supervision. Consists of the

have all those preventive measures and

supervision applied to financial institutions

corrective measures that are necessary and impose the sanctions

determined by the corresponding control body

pertinent, without prejudice to civil and criminal actions to

as a high and critical risk profile, understood as

that there is place.

such to those entities whose economic condition financial, quality of corporate or cooperative governance, or

Article 286.- Termination of the supervision program
intensive. Intensive supervision program will end

risk management, among other conditions that
determined by the control body, they are considered

for the fulfillment of its objectives

inadequate to deficient for the size and complexity of

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50 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

within the specified period, in which case, the entity
financial institution will regain its normal functioning.

11. Grant deadlines, in accordance with article 192, for
that the entity resolves the capital increase and
reservations, which must be subscribed and paid within

The intensive supervision program may end

said deadlines;

in advance, by order of the control body,
when the financial institution fails to comply with the program.

12. Immediate removal of administrators and others
officials or employees that it deems pertinent. In the

Article 287.- Breach of the program of

popular and solidary financial sector, the removal

intensive supervision. The substantial breach of
intensive supervision program will be causal for
implement an extraordinary merger, order the exclusion

may also apply with respect to the partners who
act as representatives in the assembly
general; Y,

of assets and liabilities or the forced liquidation of the entity
financial

13. All other measures that you consider

Article 288.- Reserved nature of the programs of
intensive supervision. Supervision programs
intensive and all supporting information will be
reserved for a period of twenty-five years. The

convenient and that do not contravene the rules
issued by the Monetary Policy and Regulation Board
and Financial.
Article

290.-

Supervision

consolidated

superintendencies and financial entities will be

cross-border. The control bodies will carry out

obliged to keep the corresponding reservation.

consolidated and cross-border supervision of the entire group

The information of the preventive supervision processes and
corrective will be subject to reserve for a period of fifteen
years.

financial or popular and solidarity group, through a
adequate monitoring and enforcement of standards
prudential to all the activities carried out by the groups
locally and internationally, the transparency of its

Article 289.- Preventive and corrective measures.

operations, the treatment of conflicts of interest, the

While the intensive supervision program is being approved and

customer service and safety and identification of

During its execution, the control bodies may

risks in the solvency and liquidity position, so

arrange the following measures:

individual and consolidated level, as well as to avoid
regulatory arbitrations.

1. That increases in deposits, deposits or
investments are invested in domestic securities of

The local control bodies will carry out the supervision

high liquidity, solvency and profitability, in the way that

of the entity that acts as the head of the group and

the superintendencies have;

of its members, and will require the information that was
necessary, without any limit, directly or through it,

2. Prohibit the granting of new loans and / or the

to all members of the financial group or popular group

make new investments, except those ordered in the

and joint and several and will determine the requirement of patrimony

previous numeral;

consolidated technician of these groups.

3. Avoid credit concentration;

Consolidated and cross-border supervision may be

4. Prohibit the distribution of profits, dividends and / or

carried out in cooperation with control bodies
foreigners, on the basis of agreements signed

surplus;

for this purpose, which, under reciprocity criteria,
5. Deny the opening of new offices, in the country or in the

they should facilitate the exchange of information between them.

exterior, or order the closure of existing ones;
Section 13 Exclusion and
6. Prohibit investment in the capital of institutions

transfer of assets and liabilities

incorporated or to be constituted in the country or abroad;
Article 291.- Unviable financial entity. It is the entity
of the national financial system that incurs in one or more

7. Prohibit any type of investment abroad;

causes of forced liquidation.
8. Arrange for the divestment of assets abroad;
Article 292.- Resolution of suspension of
9. Order the liquidation of trusts and restitution

operations and exclusion and transfer of assets and

immediate of the assets contributed to the equity

Passives. In order to adequately protect the deposits

autonomous;

from the public and prior to declaring the liquidation
force of an unviable financial institution, the entity of

10. Immediately have the entity register

control, by resolution, will order the suspension of

accounting for the losses corresponding to the

operations, exclusion and transfer of assets and

partial or total provisioning of assets whose status

liabilities and appoint a temporary administrator. Is

of collectibility, realization or liquidity as required, to

resolution will become effective as of the date of its

only judgment of the superintendencies, and the reduction of

expedition.

their capital or allocation of reserves against them;
Article 293.- Excepted operations of the
suspension. The control body will determine the
operations that must be exempted from suspension and that

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 51

are essential for the preservation of assets

The measures ordered by the temporary administrator, in the

of the entity, the recovery of credits and payments of

process of exclusion and transfer of assets and liabilities,

workers' remuneration.

under any modality, they are exempt from taxes.

Article 294.- Loss of shareholders rights and

The process of exclusion and transfer of assets and liabilities

partners and cessation of administrators. From the

will be implemented by the temporary administrator within the

date of the resolution of suspension of operations and the

within fifteen days from the date of the

exclusion and transfer of assets and liabilities of the entity

resolution of suspension of operations. If within

financial unviable, the rights of their

indicated period, the agreements of the

shareholders or partners and automatically cease their

process of exclusion and transfer of assets and liabilities, the

functions of the administrators, without place to claim and

control body will order the forced liquidation of the

compensation, even if they have a relationship of

unviable financial entity and will request the Corporation

dependence with the entity; In addition, the

Deposit Insurance and Liquidity Fund the payment of

disposal of assets owned by shareholders with

insured deposits.

patrimonial ownership with influence, linked third parties and
administrators, for which the control body

In any case, the temporary administrator must

will carry out all pertinent actions.

reserve sufficient resources for the cancellation of
rediscount and investment window credits

Article 295.- Temporary administrator. The administrator

domestic liquidity surplus.

temporary will assume the functions of administrators and
will exercise the legal representation of the financial entity

Article 297.- Administrative and judicial actions. Not

unfeasible, safeguarding your assets.

administrative actions or
judicial over the assets of the financial institution whose

Article 296.- Process of exclusion and transfer of

operations have been suspended in accordance with the

actives and pasives. Within the exclusion process and

Article 292, nor can they be ordered or registered

transfer of assets and liabilities, the administrator

precautionary measures on those. In case it is

temporary, in coordination with the control body,

have ordered precautionary measures, the judge

will execute the following measures:

corresponding will order its immediate lifting.

1. Organize the information of the entity;

The acts ordered by the temporary administrator that
involve the transfer of assets and liabilities of the entity

2. The total or partial exclusion of assets and / or liabilities from the
unviable financial entity; Y,

financial unviable are not subject to judicial authorization
any nor can they be considered ineffective with respect to
the creditors of the financial institution that was the

3. The transfer of the excluded assets to another entity

owner of the excluded assets.

viable financial system, along with liabilities of equal value. But
the transfer of the excluded assets is feasible,

The creditors of the unviable financial institution will not have

the provisions of article 80 numeral may be applied

action or any right against the purchasers of the

7.

assets disposed of.

The exclusion and transfer process, including the

Article 298.- Termination of the exclusion process and

transfer of assets, liabilities, guarantees, will not require

transfer of assets and liabilities. In the event that the

express acceptance of customers and may be implemented

process of exclusion and transfer of assets and liabilities

through the constitution of a trust.

of an unviable financial institution has completed
satisfactorily, the forced liquidation of

The temporary administrator may punish the price of the
assets charged to the equity of the entity in liquidation,
as long as the value to be obtained by its transfer covers the
minus all the priorities included in the article

the financial institution, as well as its assets and liabilities not
transferred.
Likewise, in the event that the exclusion process and
transfer of assets and liabilities has not been completed

315, between numbers 2 and 11 inclusive, and the percentage
defined by the Deposit Insurance Corporation, Fund
Liquidity and Private Insurance Fund with respect to the

satisfactorily, we will proceed to the forced liquidation of
the financial institution, as well as all of its assets
and liabilities.

deposits indicated in numeral 1 of the article before
aforementioned. The application of this criterion will not cause

Section 14 Of the

civil liability to the temporary administrator.

settlement

The control body may grant entities

Article 299.- Liquidation. System entities

recipients of excluded assets and liabilities, exceptions

national financial institution are liquidated voluntarily or voluntarily

temporary to the application of the rules of character

forced, in accordance with the provisions of this

general issued by the Board of Policy and Regulation

Code.

Monetary and Financial, with prior authorization. The
Exceptions must be related to the amount of the

Article 300.- Transfer of assets. When a

assumed assets and liabilities and will avoid putting the

entity of the national financial system that is in

liquidity and / or solvency of the entity.

forced liquidation or whose general meeting of shareholders or

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52 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

body acting in its place has agreed to its dissolution

Article 303.- Causes of forced liquidation. The

voluntarily, dispose of all its assets or a part

entities of the national financial system are liquidated

substantial of them to another financial entity, said

forcibly, for the following reasons:

transfer will be made by public deed in the
which are indicated, by their amount and item, the goods that are
transferred according to the respective balance.

1. For the revocation of one or more of the authorizations
financial activities, when at the discretion of the
control body these affect the viability

In the cases contemplated in the preceding paragraph, as well

economic-financial of the entity;

As in any other case of cession, the tradition of the
goods and their corresponding guarantees and rights
accessories will operate fully, without the need for

2. Due to substantial breach of the program of
intensive supervision;

endorsements, notifications or registrations, except in the case of
the real estate. The sole merit of the public instrument of
Assignment will allow the registration of the guarantees, when appropriate,

3. For not covering the deficiencies in the technical heritage of
compliance with the provisions of article 192;

or exercise creditor rights in court.
4. For not raising the share capital or subscribed capital and
paid at the minimum established in this Code;

The property and mercantile registrars will be
obliged to expeditiously carry out the records and

5. For losses of 50% or more of the capital stock or capital

corresponding inscriptions.

subscribed and paid, that could not be covered with
Article 301.- Causes of voluntary liquidation. The

the entity's reserves;

entities of the national financial system are liquidated
voluntarily, when they are not involved in causes of

6. For not paying any of your obligations,
especially with depositors, in the chamber of

forced liquidation, for the following reasons:

compensation or failure to restore
1. Due to the expiration of the period of duration set in the
social position;

domestic investment operations or window of
rediscount, when the liquidity fund does not reach
cover such operations. In the case of entities
of the Popular and Solidarity Financial Sector, except

2. By merger;

of segment 1, which is geographically
3. By conclusion of the activities for which the
they formed; Y

located in areas of difficult access, this cause of
Forced liquidation is configured if within seventy-five
two hours of required payment of obligations, these
were not satisfied;

4. By transfer of the main domicile abroad.
The entities of the private and popular financial sectors
and solidarity will also be settled by agreement of the
shareholders or partners, as the case may be.
The entities of the public financial sector will be liquidated
also for reasons of public interest provided by the
Republic President.

7. When any of the solvency indicators is
less than fifty percent (50%) of the minimum level
required;

8. For accumulating two months of default in payment
of contributions and contributions to Deposit Insurance and / or
Liquidity Fund;
9. By termination of the exclusion and transfer process

Article 302.- Resolution of voluntary liquidation. The

of assets and liabilities referred to in article 296; Y,

decision to liquidate a financial system entity
nationally voluntarily, for any of the causes

10. For any other cause determined in this Code.

determined in this Code, will be made known
from the control body for approval. The organism

The entities that make up the financial sectors

control, after verification that the financial institution

private and popular and solidarity will be settled in a

is not involved in any of the causes of

forced, additionally, for the following reasons:

forced liquidation, which has the resources
necessary to meet all your financial obligations

11. Due to manifest impossibility of fulfilling the corporate purpose;

and non-financial and that their liquidation does not generate effects
negative on the functionality of the financial system

12. When the administrators of the entity leave

national or macroeconomic management of the country, may

their positions and it is not possible to designate their replacements

approve or deny voluntary liquidation, through the

within a period of no more than thirty days;

issuance of the corresponding administrative act.
13. Due to the reduction of the legal minimum number of shareholders
and by decreasing the number of its partners below

If the financial institution is in cause of
forced liquidation or does not have sufficient resources

of the legal minimum established; Y,

to meet all your financial obligations and not
financial statements, the voluntary liquidation will be denied and
the corresponding administrative actions.

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14. For not modifying its procedures, for the ineffectiveness
of the board of directors or by the non-adoption of the resolutions

The control body will supervise the integral management of the
liquidator.

determined in the last paragraph of article 412.
Article 308.- Validity. The settlement resolution will govern
The resolution of suspension of operations provided in the

from the date of its issue, without prejudice to its

Article 292 will cause the loss of property of the

publication in the Official Registry.

shares of all shareholders and participations
Article 309.- Advertising. The resolution of liquidation of

of the partners.

a financial institution must be published, by a single
Article 304.- Resolution of forced liquidation.

Once, in a newspaper of circulation of the place of domicile of

When the control body determines that the

the institution and in the Official Registry, without prejudice to its

financial entity is involved in one or more causes of

advertising in other media.

forced liquidation, and it was not possible or feasible to implement
a process of exclusion and transfer of assets and

Article 310.- Challenge. The act of liquidation of a

liabilities, will proceed to issue the settlement resolution

financial institution may be challenged at headquarters

force of the entity.

administrative or judicial. The challenge at headquarters
administrative will be done in accordance with the rules

Article 305.- Presumption of fraudulent bankruptcy.

dictates the control body. The challenge at headquarters

When a financial institution is put into liquidation

It will be carried out before the respective court of

forced, it will be presumed that it is the consequence of acts

administrative litigation.

intentionally committed by administrators, officials or
employees who have participated in any of the

The filing of an appeal or action will not suspend the

acts indicated by the Comprehensive Organic Criminal Code.

effects of the act of liquidation of a financial institution.
If the challenge is accepted, either at headquarters

Article 306.- Complaint. In the event that the
suspension of operations or the forced liquidation of a
financial institution, the control body is obliged to
Immediately file the corresponding complaint with the
State Attorney General's Office, in accordance with the Code
Organic Comprehensive Criminal, with the purpose of
establish the criminal responsibilities that may exist
place.

administrative or judicial of last instance, and was left without
effect of the act of liquidation of a financial institution,
proceed in accordance with the terms of the resolution or
sentence, as the case may be.
All acts celebrated by the liquidator in the fiscal year
of its functions will be valid, unless it was checked
judicially fraud, in which case the rules will apply

Article 307.- Content of the liquidation resolution.
In the resolution of voluntary or forced liquidation,
will provide, at least, the following:

corresponding.
Article 311.- Resources for the payment of the liquidation.
When an entity is in the process of
liquidation, all the resources on the

1. The liquidation of the financial institution;

which are entitled, in order to pay the

2. The revocation of the authorizations to carry out
financial activities;

obligations of the entity, except those whose
availability is restricted by a judicial measure
issued prior to the suspension of operations.

3. The withdrawal of operating permits;
Article 312.- Functions of the liquidator. The liquidator
4. The term for settlement, which in no case may

must carry out all activities leading to
carry out the assets of the financial institution in liquidation,

exceed two years;

in order to cancel existing liabilities. For the effect,
5. Appointment of the liquidator; Y,

the liquidator will exercise coercive jurisdiction.

6. The cessation of functions of the temporary administrator.

The main functions of the liquidator are:

In the case of forced liquidation, the resolution

1. Represent the entity, judicially and extrajudicially;

will request that the Deposit Insurance Corporation,
Liquidity Fund and Private Insurance Fund pay the
insurance to depositors.

2. Initiate the corresponding legal actions against
of any person who could be responsible
of the liquidation;

The resolution of liquidation of a financial institution will be
motivated, signed by the owner of the corresponding
control body, will enjoy the presumption of
legitimacy and must be fulfilled from the date of its

3. Take charge of the administration of the assets that
make up the entity's equity;
4. Comply with the provisions of article 306;

expedition.
5. Contract credits, for which purpose you can deliver in
The liquidation resolution must be registered in the

collateral for the assets of the entity in liquidation. These

corresponding records.

credits will enjoy privilege over any other
creditworthiness;

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54 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

6. Dispose of corporate assets;

The sums that they owe, for whatever reason, the
companies owned by those shareholders or

7. Collect and receive the amount of the entity's credits

administrators of the financial institutions concerned

and the balances owed by the shareholders, granting

this article, including those that are not required to the

the corresponding receipts or settlements;

date of suspension of operations, for these purposes,
shall be understood as expired, and therefore shall constitute, at
favor of the suspended entity that takes them in

8. Pay creditors;

administration, first-class privileged credit yet
in preference to mortgage loans,

9. Present liquidation statements;

structured in trusts or any other of diverse
nature other than the assets owed to the

10. Inform the control bodies;

workers or state institutions, including the
Ecuadorian Institute of Social Security. For the collection of

11. Present the reports to the control bodies
corresponding to the recovery of debts, with
the periodicity established for such purposes;
12. Receive, carry and safeguard books and correspondence
of the entity and ensure the integrity of its assets,
formulate monthly and annual balances, and a report
on the development of the liquidation, render an account
detailed administration and prepare the balance
final settlement or sign the certificate of absence of
heritage;

such assets, the entity of the National Financial System
suspended will initiate coercive on the basis of the
determination that is practiced on a substantiated basis, and
will provide the precautionary measures and constraints that fit,
even of a real nature on goods found
subject to tax of any kind or contributed to
trusts, which will be canceled by the
temporary administrator or liquidator of the entity, in order to
collect what is owed, so that with your product,
respecting the priority determined in this subsection,
credits are covered in accordance with article 315.

13. Negotiate or reduce bad or doubtful debts and
settle claims against the entity; Y,

The control bodies, at the justified request of the
liquidator, may order the cancellation in the Registry of

14. Distribute the remainder of the assets to the shareholders

Property of the registration of sales, donations

social, if any; otherwise, you must issue

in payment or any other title transferring or limiting of

credit notes for differences.

domain, including contributions to autonomous patrimonies,
with respect to those assets of companies linked to

The control body will determine the functions

people with patrimonial property with influence or

additional requirements that the liquidator must comply with, as the case may be.

administrators, held after the
suspension of operations of the financial institution, in order to

Assets, liabilities, equity and other obligations that are not

that these assets serve to collect what is owed from

may be liquidated in accordance with the provisions of this

according to the provisions and the determined procedure

article, may be transferred to a trust whose

in the preceding paragraph.

constituent will be the liquidator of the entity, in order to
to dispose of the remnants.

The third parties in good faith that may be affected by

The liquidator will not be able to carry out new activities
related to the corporate purpose of the entity, as well as
nor acquire, directly or indirectly, the assets of the

the cancellation of the transfer, will have action for damages
and damages exclusively against those who have
property transferred after suspension ordered
operations of the financial institution.

financial institution in liquidation. This prohibition is
extends to the spouse, partner and relatives within the
fourth degree of consanguinity or second degree of affinity.

Article 313.- Legal actions. Suspension resolved
operations provided for in article 292 or the liquidation
forced by the financial institution, it will not be able to initiate processes
judicial or administrative against said entity, nor

Article 314.- Interest and loan terms
granted.
All deposits, debts and other obligations of a
financial institution in favor of third parties, as of the date
of their forced liquidation, will not accrue interest against
the body of creditors, except as provided in article
following.

to decree liens or encumbrances, or to dictate other
measures on their assets, nor follow procedures of
enforcement of judgments due to court rulings or
administrative, because of the obligations contracted with
prior to the date on which the suspension of
operations to that financial entity and while such situation
remain in force, except for mortgages constituted by the
financial institution in favor of third parties, as a guarantee of
operations up to the amount, per natural person or
legal, equivalent to two hundred basic salaries
unified, which will be governed by article 2381 of the

Credits granted by a financial institution in
forced liquidation process will maintain the deadlines and
conditions originally agreed. However, the
credits that have the quality of linked will be understood
term expired.

Article 315.- Priority of payments in settlement
forced. The payments derived from the forced liquidation of
a financial institution will be carried out in the following order:

Civil Code.
1. Deposits up to the legally insured amount
charged to deposit insurance;

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 55

2. Those that are owed to workers for

administrative incurred by the State, the interests

salaries, indemnities, profits, funds of

generated on the liabilities referred to in the

reserve and retirement pensions charged to the employer,

preceding article of this Code and the penalties

up to the amount of the settlements

corresponding, as of the date of the resolution of

practice under the terms of the legislation that

forced liquidation, will be delivered to the shareholders or

protect, and obligations to the Institute

partners, administrators, natural and legal persons

Ecuadorian Social Security derived from the

linked, both by their actions and by any other

labor Relations;

type of credit.

3. Credits granted through the rediscount window and
domestic investment of surplus liquidity;

The order of priority of payments provided in this article
may not be modified in any way, under penalty of
embezzlement under the terms of article 278 of the Code

4. Deposits for amounts that exceed the value

Organic Comprehensive Penal.

insured from priority care groups, up to
for a value equal to (50%) additional to the value
insured;

Article 316.- Values ​not claimed during the
settlement. Values ​that have not been claimed
within the period set in the liquidation process of a

5. Other deposits for amounts that exceed the
insured value, in accordance with the standards that
dictates the Board of Policy and Monetary Regulation and
Financial, in the following order:

financial institution, may be used for the payment of the
receivables in the order set in the previous article.

Article 317.- Unclaimed values ​at the end of the
settlement. Monetary values ​that have not been

to. At least 90% of natural persons
depositors with smaller deposits; Y,

claimed after the settlement, must be
deposited by the liquidator in the Single Treasury Account
National. The rest of the assets will be transferred to the entity that

b. At least 90% of legal entities

is in charge of the real estate management of the State, for its

depositors with smaller deposits.

provision.
6. Other deposits for amounts that exceed the
insured value, in accordance with the standards that

Article 318.- Closing of the liquidation. Concluded on

dictates the Board of Policy and Monetary Regulation and

liquidation process, the liquidator will carry out the

Financial, in the following order:

reconciliation of accounts and closing of the balance sheet
settlement, as well as the final settlement report, the

to. The remaining natural persons depositors with
lower deposits; Y,

which will be presented to the control body and given to
know the shareholders and / or partners pending payment, of
conformity with the standards issued by the

b. The remaining legal persons depositors with

control.

lower deposits.
7. The rest of the liabilities for funds raised by the
financial institution under modalities not covered by the
previous numerals, with the exception of deposits

At the close of the liquidation, the control body will have
the extinction of the entity and will exclude the financial entity
of the Public Cadastre.

of those who have credits or other related assets
Section 15

in the entity in liquidation;

Deposit Insurance, Liquidity Fund and Fund
from

8. The amounts paid by the Insurance Corporation of

Private Insurance

Deposits and Liquidity Fund;
9. Those that are owed for taxes, fees and

Article 319.- Administration. Deposit Insurance

contributions;

the private and popular and solidarity financial sectors, it will be
administered by the Deposit Insurance Corporation,

10. The legal costs that are caused in the common interest

Liquidity Fund and Private Insurance Fund.

from creditors;
Article 320.- Obligation. The entities of the sectors
11. Suppliers of the financial institution, up to the
amount equivalent to deposit insurance; Y,
12. Other liabilities, according to the order and form
determined in the Civil Code, and the values ​do not
claimed from the previous numerals, within the
three months after notification of the collection call.

private and popular and supportive financiers are obliged to
participate with contributions and contributions to the Insurance
Deposits and Liquidity Fund and with the mechanisms of
warranty.
Article 321.- Resource management. The resources of the
Deposit Insurance will be managed through
independent trusts administered by the Bank

The remnants of private financial entities and
the entities of the popular and solidarity financial sector, in
if any, after discounting the expense

Central del Ecuador, whose constituent will be the Corporation
Deposit Insurance, Liquidity Fund and Fund of
Private Insurance.

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56 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Article 322.- Deposit insurance. Insurance

Deposit Insurance resources are of a nature

Deposits will protect deposits on a limited basis

are not part of the General Budget of the

carried out in the entities of the financial sectors

State, they are unattachable and may not be affected by

private and popular and solidarity authorized by the respective

the obligations of taxpayers. The operation of your

control bodies, in the form of current accounts,

trusts will be exempt from all kinds of taxes. The

savings, time deposits or other modalities

Creditors for loans or contingent lines may not

legally accepted, in accordance with the conditions that

enforce their credits against taxpayers, whose

establishes this Code for the payment of insurance.

Liability is limited to your contributions.

Article 323.- Exclusion of insurance. Will not be

Article 326.- Contributions. Contributions to

protected by Deposit Insurance:

Deposit Insurance and the periodicity of its payment by part
of the entities of the private financial sectors and

1. Deposits made by related parties

popular and solidarity, will be determined by the Board of

directly or indirectly to the financial institution, depending on

Monetary and Financial Policy and Regulation.

what is established by this Code;
2. Deposits in the same entity of the shareholders,
administrators and members of the supervisory board
from a popular or solidarity financial entity;

Contributions may be differentiated by each sector
financial and entity, and will consist of a fixed premium and
a variable premium, differentiated by the entity's risk.
Article 327.- Investments. The resources of the Insurance

3. The excess of the protected amount;

Deposits must be invested observing the principles of
4. Deposits in offices abroad;

security, liquidity, diversification and profitability, with
subject to the investment policies approved by the Board

5. Obligations issued by financial entities

of Monetary and Financial Policy and Regulation.

under the provisions of the Market Law of
Values; Y,

Article 328.- Protected amount. The amount protected by the
Deposit Insurance for each natural or legal person,

6. Deposits that do not meet the conditions

will be differentiated by each of the financial sectors

determined in this Code.

insured.

Article 324.- Deposit Insurance Trusts: The
Deposit Insurance Corporation, Liquidity Fund and
Private Insurance Fund will constitute the following
independent trusts, in the Central Bank of the
Ecuador, with the resources contributed by the entities of
each sector:

The insured amount of deposits in the entities
private and popular and solidarity finance companies, segment 1,
will be equal to twice the current exempt basic fraction of the
income tax, but in no case less than USD
32,000.00 (thirty-two thousand United States dollars
from America).

1. Deposit Insurance Trust of the entities
The insured amount of deposits for the remainder of

from the Private Financial Sector; Y,

segments of the Popular and Solidarity Financial Sector will be
equal to once the current exempt basic fraction of the

2. Deposit Insurance Trust of the entities
of the Popular and Solidarity Financial Sector.

income tax, but in no case less than USD
11,000.00 (eleven thousand United States dollars of

Article 325.- Deposit Insurance Resources. The

America).

Deposit Insurance will be nourished with the following resources,
The total amount to be paid for the Deposit Insurance in each

as far as each financial sector corresponds:

sector may not exceed the total equity of the respective
1. The contributions to be made by the entities of the

escrow.

private and popular and solidarity financial sectors,
compliance with the provisions of this Code;

Article 329.- Execution. The right to payment of the Insurance
Deposits will be effective from the date of

2. Return on Investments and Profits

notification of the resolution with the declaration of

of each annual exercise of the Insurance of

forced liquidation of the entities of the sectors

Deposits;

private and popular and supportive financial
control body to the Insurance Corporation of

3. The donations they receive;

Deposits, Liquidity Fund and Insurance Fund
Private

4. Those from loans or contingent lines
obtained for the financing of their activities;

Article 330.- Requirements and payment procedure.
The requirements and payment procedure of the Insurance

5. Those from loans between trusts

Deposits will be determined, in each case, by the

deposit insurance; Y,

Deposit Insurance Corporation, Liquidity Fund and
6. The remnants referred to in the article

Private Insurance Fund, in accordance with the standard

315.

issued for this purpose by the Corporation itself.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 57

For the payment of the deposit insurance made the

The resources of the Liquidity Fund are of a nature

Deposit Insurance Corporation, Liquidity Fund and

private, are unattachable and may not be affected by

Private Insurance Fund acquires, instead of

the obligations of the contributors, except for the payment of

creditor, the right to collect the credit for the value

credit operations through the window of

paid out.

rediscount and domestic investment of surpluses
of liquidity.

Article 331.- Subrogation of rights. The corporation
Deposit Insurance, Liquidity Fund and Fund

The operation of the trusts will be exempt from all

Private Insurance will be subrogated in the collection rights

class of tributes. Creditors of the Liquidity Fund for

Regarding the values ​covered by the Insurance of

loans or contingent lines will not be able to pay

Deposits

their credits against the contributors, whose responsibility is
limits to your contributions.

Article 332.- Control. The Insurance Trust
Deposits from the private financial sector will be subject to

Article 336.- Contributions. Contributions to the Liquidity Fund and

control of the Superintendency of Banks.

the periodicity of its payment by the entities of the
private and popular and solidarity financial sectors will be

The deposit insurance trust of the financial sector

determined by the Board of Policy and Regulation

popular and supportive will be subject to the control of the

Monetary and Financial.

Superintendency of Popular and Solidarity Economy.
The Comptroller General of the State will exercise control of the
use of public resources from the patrimonies of the
respective trusts.

The contributions will be differentiated by each financial sector.
Article 337.- Investments. The resources of the Fund
Liquidity should be invested observing the principles of
security, liquidity, diversification and profitability in the
framework of economic policy objectives and

Article 333.- Liquidity Fund. The shortcomings of
liquidity of private financial sector entities

preservation of deposits. These resources may not
be invested in bonds issued by the Ministry of Finance.

and popular and solidarity may be covered by the Fund
Liquidity, which will act as the last lender

The members of the Board of Directors of the Insurance Corporation

instance and grant liquidity loans to entities

Deposit, Liquidity Fund and Insurance Fund

financial institutions that meet the following conditions:

Private, will be responsible for the non-observance of the
parameters described in the previous paragraph.

1. That they keep their technical heritage within the
minimum levels required by article 190; Y,

Article 338.- Operations. The Liquidity Fund may
carry out the following active and passive operations:

2. That they have managed their liquidity in accordance with
the regulations issued for this purpose.
Article 334.- Trusts of the Liquidity Fund. I know
will constitute the following independent trusts:

1. Active operations, consisting of:
to. Ordinary credits, whose term will be one business day
renewable, which will be awarded within a line
credit to cover deficiencies in the chambers

1. Trust of the Liquidity Fund of the entities of the
Private Financial Sector; Y,
2. Trust of the Liquidity Fund of the entities of the
Popular and Solidarity Financial Sector.

compensation of the Central Payment System
administered by the Central Bank of Ecuador;
b. Extraordinary credits, which may not exceed
within three hundred and sixty-five days from
its concession; Y,

Article 335.- Resources of the Liquidity Fund. The bottom
Liquidity will be nourished with the following resources, in which
to each trust corresponds:
1. The contributions to be made by the entities, according to
compliance with the provisions of this Code;
2. Return on Investments and Profits
liquid of each annual exercise of the Liquidity Fund;
3. The donations you receive;
4. Those from loans or contingent lines

c. The operations indicated in article 335.
2. Passive operations: They may consist of loans and
securitizations; Y,
3. Contingent lines with financial entities
international
The Liquidity Fund may also be used to
cancel the obligations emanating from the
rediscount and domestic investment of surpluses
of liquidity, in accordance with this Code.

obtained for the financing of their activities; Y,
Article 339.- Conditions. In active operations,
5. Those from loans between trusts

will observe the following conditions:

Y

of the liquidity fund.

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58 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

1. Ordinary credits may be granted up to the

Article 343.- Return of resources. The resources

amount equivalent to the contribution that each of the

contributed by financial entities to the Fund

financial entities have made the Fund

Liquidity will be restored in the following cases:

Liquidity, which will guarantee the respective operation. The
1. Exclusion and transfer of assets and liabilities;

access to these credits will be automatic and their
interest will be established by the Policy Board and

2. Voluntary or forced liquidation of the entity; Y,

Monetary and Financial Regulation. The Central Bank
of Ecuador, in its capacity as trustee,

3. The excess of the contribution in case of mergers.

inform the corresponding control body of the
execution of these operations; Y,

Article 344.- Purpose of the Private Insurance Fund.
They will be protected by the coverage that is determined in

2. Extraordinary credits may be granted to

this legal body, the public sector policyholders and

the contributing financial entities, provided that

private companies that have valid policies, with the entire

maintain the minimum level of solvency determined

canceled premium, in the insurance system companies

by the Monetary Policy and Regulation Board and

private.

Financial The interest rate of these credits will be
Private Deposit Insurance will cover within the amount

established by the Board.

established by the Board the value of pending claims
payment on the date of forced liquidation.

The Monetary and Financial Policy and Regulation Board
must issue the eligibility rules, in which

Article 345.- Exclusion of Insurance. Will not be

establish the conditions that must be met by

protected by insurance guarantee coverage

financial entities to access this type of credit.

private:
Article 340.- Guarantee trust. Each of the

to. People who have been sentenced for crimes of

entities of the private and popular financial sectors and

drug trafficking or money laundering; Y,

jointly and severally must constitute a commercial trust of
collateral with an investment and portfolio portfolio that

b. People who have policies with insurance companies

will have as creditor beneficiary the Trust of the Fund

insurance that are not legally constituted in the

of Liquidity that corresponds. The minimum initial contribution to this

Ecuador.

trust will be at least fifty thousand dollars of the
United States of America USD 50,000.00 (fifty thousand

Article 346.- Protected Amount. To determine the amount

United States dollars) for the

protected by the coverage and its return to the insured or

private financial sector entities, and on each occasion

beneficiary, the totality of the policies that

that requires an extraordinary liquidity credit, the entity

register each natural or legal person, public or private,

must provide adequate guarantees for an amount not

in the company of the private insurance system, as of the date of

less than 140% of the amount of the extraordinary credit, of

initiation of the forced liquidation ordered by the agency

compliance with the standards issued by the Policy Board

of control.

and Monetary and Financial Regulation.
Article 347.- Coverage. The Private Insurance Fund
The minimum initial contribution to this trust for the

will be activated from the notification made by the

popular and solidarity financial entities, it will be

control to the Corporation, with the declaration of liquidation

determined by the Monetary Policy and Regulation Board

forced from a company of the private insurance system.

and Financial.
The receipt by the insured or beneficiaries,
of the values ​paid by the Corporation, will produce the

Article 341.- Exhibition. The total exposure of the

full subrogation in favor of the same, of the

resources contributed to the Liquidity Fund by way of

creditor's rights vis-à-vis the insurance company

all active operations granted to an entity

submitted to the forced liquidation process.

financial statements that remain in force may not exceed
30% of its assets, nor the equivalent of 100% of the

The resources that are recovered under that

technical assets of that financial institution.

subrogation, they will enter the Private Insurance Fund.

Article 342.- Control. Financial sector accounts

Article 348.- Insurance Fund Trust

private of the Liquidity Fund will be subject to the

Private For the implementation of the guarantee of

annual verification of an external audit previously

The Corporation will establish a fund through a

rated by the Superintendency of Banks, without prejudice

mercantile trust that will be controlled exclusively

of the powers of said institution to control them.

by the control body, with the exclusive purpose of
fulfill the purposes set forth in this Law.

The accounts of the popular and solidarity financial sector of the
Liquidity Fund will be subject to the annual verification of

The assets of the fund will be unattachable and may not be

an external audit previously qualified by the

affected by the obligations of the contributors. The

Superintendency of Popular and Solidarity Economy, without

constitution and operation of the fund will be exempt from all

prejudice to the powers of said institution to

tax class. The creditors of the fund by

control them.

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loans or contingent lines will not be able to pay

The other operations are subject to reservation and the

their credits against the contributors, whose responsibility is

Entities of the national financial system may only give them

limited to your contributions.

to know who shows a legitimate interest and always
that it is not foreseeable that the knowledge of this

Article 349.- Resources of the Private Insurance Fund.

information may cause harm to the client.

The Private Insurance Fund will be constituted with the
following resources that will be considered public:

The entities of the national financial system, in order to
facilitating conciliation processes, will give access to the

to. The contribution of 1.5% on the value of the premiums

detailed knowledge of the above operations and their

net of direct insurance, which will be carried out by the companies

background to the external audit firm hired by

of the private insurance system, and the proportion of

the entity, which will also be subject to secrecy and

the contribution determined in article 67 of the

reservation.

General Insurance Law;
The entities of the national financial system may give
b. Return on investments and profits

know the previous operations in global terms, not

liquid assets of each annual financial year of the Insurance Fund

personalized or biased, for statistical purposes only

Private;

or information, when there is a public interest.

c. Donations you receive; Y,

They may also provide general information regarding
of the behavior of particular customers, prior to their

d. Those from loans or contingent lines

authorization, for credit evaluation purposes, upon request

obtained to finance their activities.

establishment of another financial institution or establishments
authorized by customers, without implying

The resources of the Fund must be invested observing the

that the power to reveal individualized transactions.

principles of security, liquidity, diversification and
profitability and be part of investment policies

There will be no reservation regarding the total or partial extinction of

approved by the Board of Directors.

active operations, so they can be made public
dations of payment and their terms, compensation,

Fund resources may not be used to cover

waivers and prescriptions.

administrative expenses or for the payment of investments in
fixed assets of the Corporation.

No secrecy or reservation will be applied to the resources of the
public sector entities.

Article 350.- Unattachable. Contributions and their
interests will be unattachable and may not be subject to

Article 354.- Exceptions. The

no precautionary measure restricting its availability. The

provisions of the preceding article for the delivery of the

contributions to be made by insurance companies

following information that is requested from the

private may be debited from the accounts that

control or entities of the National Financial System:

maintained in the entities of the financial system, prior
requirement of the legal representative of the Corporation.

1. The background information on operations carried out by
who are part of or are investigated in causes that

Article 351.- Audit and Verification. The bottom of

are under the knowledge of a judge or the

Private Insurance will be subject to the annual verification of

State Attorney General's Office;

an external audit qualified by the control body,
2. The data of the holder of current accounts closed by
The control body may at any time verify

draft of checks without provision of funds, required by

the audit reports that are presented.

the legitimate holder of the checks;
3. Any information required by the agencies of
Section 16 Of secrecy and

control and the Internal Revenue Service, in the field of

reservation

your competition;

Article 352.- Protection of information. The data from

4. The information required by the Policy Board and

personal character of users of the financial system

Monetary and Financial Regulation, which must be

national that rest in the entities of said system and

channeled through the control body;

Your access is protected, and may only be delivered to
its owner or whom he authorizes or by provision of this

5. The information that must be provided by the

Code.

control to make the situation known to the public
patrimonial and financial of financial entities;

Article 353.- Secrecy and reservation. Deposits and others
catchments of any nature received by the

6. The reports required to the control bodies, in

entities of the national financial system are subject to

the scope of its competence, by governments or by

secrecy, so no information can be provided

competent authorities of the countries with which the

any related to said operations, but to their owner or

Ecuador maintains reciprocal and legitimate agreements

who has been expressly authorized by him or to whom

held to combat crime, in the

represent legally.

terms of said agreements;

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60 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

7. The financial information that constitutes

Article 359.- Delivery of information. The entities of the

exchange with banking control authorities,

national financial system, are obliged to supply the

financial and taxation of other countries, provided that

Credit Data Registry, through the agencies

there are reciprocal, valid and legitimately agreements

control, the information necessary to maintain it

celebrated; Y,

updated. This information will be previously validated by
the superintendencies, within the scope of their powers,

8. Others established by law.

before its delivery to the National Registry Office of
Public Data. In order to comply with this

The information provided will only be used for the

obligation, entities must observe the following:

purposes justified by the requesting institution. The delivery of
this information will be made with the same confidentiality protection

1. Deliver the information within the period determined by

and reserve; therefore, the requestors of this information

control bodies;

assume the inherent responsibility for secrecy and confidentiality.
The transfer of this responsibility does not apply in the case of

2. Deliver special reports to correct errors that

numbers 6 and 7. The violation of secrecy and reservation will be

have been committed, in order to achieve the

sanctioned in accordance with this Code, without prejudice

debugging this registry;

of the criminal actions that may arise.
3. The information submitted must contain, at least, the
Article 355.- Non-disclosure of information. None

following identification data, in case whoever

natural or legal person who came to know

has contracted the loan is a natural person:

of information subject to secrecy or confidentiality may disclose it

full names and surnames, the identification number of

in whole or in part. Failure to comply with these

identity and citizenship or passport and in case

provisions will be sanctioned by this Code, without prejudice

It is a legal person, the reason will be stated

of the respective criminal responsibility.

Social and the Unique Taxpayer Registry number
(RUC). Regarding the information regarding the

Article 356.- Obligation to report. When the

credit operation, the following data will be required,

control bodies, shareholders, administrators or

both for natural persons and for

officials of the financial system entities

legal persons: date on which the

national have knowledge of indications of the perpetration

obligation, the date from which it is due, the dates

of a crime related to the activities of the

of payment, the amount of capital as of the date of the report, the

financial entities, will be obliged, immediately afterwards, to

amount of interest accrued as of the date of the report, the

Report them to the State Attorney General's Office.

amount of interest on arrears as of the date of the report, and the
state of the credit, stating

Section 17 of the registry

expressly if, with respect to said credit, it has been

credit data

administrative claim filed or has been initiated
Judicial process; Y,

Article 357.- Credit data records. Register
Credit Data is in charge of the National Directorate

4. Failure to deliver the detail of values ​corresponding to

Public Data Registry.

concepts that have not originated in operations
direct and unsolicited credit

The National Directorate of Public Data Registry has

expressly by the client.

the obligation to manage the credit database and
you will be able to generate credit reference reports in the

Non-financial entities that grant credit for over

accurate and up-to-date, in accordance with the law.

the limits determined by the Board, are obliged to give
compliance with the provisions of this article and supply

Article 358.- Information for registration. The

the information directly to the National Directorate of

credit information in charge of financial institutions

Public Data Registry.

will be delivered to the Credit Data Registry through
the respective control bodies, which will establish

Article 360.- Responsibility. The National Directorate of

the policies, form and their periodicity.

Public Data Registry is responsible for the application
of the models jointly authorized by the

The entities of the national financial system

Superintendencies of Banks and Insurance, of the Economy

will only provide the Credit Data Registry

Popular and Solidarity, and Companies, used to

the data records of the information regarding the history

generate credit reports.

credit. It is prohibited to give this information to any
other entity other than those determined in this Code.

CHAPTER 4 Sector
Public Financial

Control bodies and the Internal Revenue Service
can access at any time, automatically, in

Section 1 Creation,

the formats and structures requested, to the credit data

denomination, organization and settlement

contained in the Credit Data Registry, to comply
their duties and obligations established in the Constitution

Article 361.- Creation. The entities of the sector

And the law.

public finances will be created by executive decree, in
which, at least, will be expressed:

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The bylaws will contain the institutional structure

1. Denomination;

General of the entity and must be known and approved
internally by its directory and later by

2. Purpose;

the Superintendency of Banks.
3. Authorized, subscribed and paid capital;

The content of the bylaws will be governed by the
Superintendency of Banks.

4. Heritage;

Section 3 Of the

5. Administration;

purposes and objectives
6. Duration; Y,
Article 369.- Purpose and objectives. Entities
public finance companies will carry out financial activities of
7. Address.

efficient and equitable sustainable manner. Financing
that they grant will seek to fulfill, among others, the following

Article 362.- Denomination. The denomination of the

objectives:

entities of the public financial sector will be differentiated from
rest of financial entities, having to make visible their

a) The change in the pattern of specialization of the economy

public nature.

national;

Article 363.- Organization. The entities of the sector

b) Innovation and entrepreneurship to increase

public finance will be organized in accordance with the

technological and knowledge intensity;

definitions and needs determined by the Board of
Monetary and Financial Policy and Regulation.

c) The increase in national production and sovereignty
food;

Article 364.- Liquidation. The president of the Republic
d) Selective import substitution;

by executive decree, for reasons of public interest,
may order the closure of the sector entities

e) Exports with emphasis on those of value

public financier. As a consequence of the closing arranged

aggregate;

will proceed to its voluntary liquidation in accordance with the
provisions of this Code.

f) Projects of the autonomous governments
decentralized;
Section 2
g) Housing especially of social interest;

Nature, corporate purpose, duration,
status and address

h) The economic inclusion of first entrepreneurs,
Article 365.- Nature. The entities of the sector

single mothers, people in human mobility, with

public financier will be constituted as legal persons

disability, youth and other people belonging

of public law, with administrative autonomy,

priority care groups.

financial and budgetary. In the exercise of their
Financial activities and services will be governed by the

Article 370.- Trusteeship. Entities

provisions of this Code, those issued by the Board, the

of the public financial sector will have the power to act

control bodies, their respective boards, the

as trustees.

applicable to financial institutions and otherwise,
They will apply the legislation that governs public institutions.
Section 4 Government
and administration

Article 366.- Object. The purpose of the sector entities
public financial will be determined in the decree

Article 371.- Structure. The government of the entities that

executive of its creation, in which its

make up the public financial sector will be made up of:

condition of public financial entity, the type of entity and
the segments and financial activities to which it is going to

1. Directory; Y

to dedicate.

2. General Management.
Article 367.- Heritage. The assets of the entities
of the public financial sector is autonomous and will

The organizational structure of the entity will appear in the

constituted by the goods that are determined in the decree

respective normative act, which will be approved

corresponding executive.

in accordance with the Organic Law of the Public Service.

Article 368.- Duration, bylaws and domicile. The

The members of the board of directors and the general manager will be

entities of the public financial sector will have the duration and

considered the administrators of the entity.

the address established in the respective statute
Social.

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Article 372.- Public policies. Public policies

3. Know and resolve on the content and compliance with

that govern the exercise of the activities of the entities of the

the communications of the Superintendency of Banks

public financial sector will be dictated by the Board of

referents

Monetary and Financial Policy and Regulation.

recommendations and initiatives on the progress of the

to

provisions,

observations,

entity;
Article 373.- Directory. Each of the entities
public financial institutions will have a directory constituted by the

4. Establish approval levels for operations

Following way:

active and contingent;
5. Approve the active and contingent operations that

1. A permanent delegate of the President of the

individually exceed 2% of technical assets, and

Republic, who will preside over it and will have the casting vote;

their guarantees, and know the passive operations that
2. The heads of three secretariats of State whose scope

exceed this percentage;

action is directly related to the
6. Analyze and approve the comprehensive management policy of

purposes and objectives of the respective entity

risks and follow up on their implementation;

financial, or its permanent delegates; Y,
3. The head of the Secretary of State in charge of the

7. Approve and issue an opinion, under its responsibility, on

economic policy or its permanent delegate.

financial statements and auditors' reports
internal and external, qualified by the superintendency. The

The President of the Republic in each executive decree of

The opinion of the board of directors must be sent to the body

creation will establish which ministers or secretaries of state

control following the instructions that it

participate in each directory, in accordance with this

determine;

Article.
8. Know and resolve in the last administrative instance the
The public financial entity will notify the respective
superintendence

the

designation

Appeals filed against the acts of the own
from

directors,

board of directors and the General Manager;

legal representatives and internal and external auditors, within
within eight days of their appointment.

9. Approve the bylaws and its reforms;

Article 374.- Appointment of delegates. The delegates

10. Approve the organic bylaws by processes of the entity;

permanent will be designated by the act
corresponding administrative; prior to starting their
functions, must have the qualification of suitability

11. Internally approve the budget, prior to its
sending to the Board;

issued by the Superintendency of Banks,
12. Approve the internal regulations;

accrediting the following requirements:

13. Appoint the General Manager of the entity;

1. Ecuadorian citizen;

14. Appoint the internal and external auditors, experts
2. Third level professional in economics, finance,
banking, law, administration, development or the like;
3. Professional experience in related areas of at least

appraisers and the risk rating firm subject to
previous qualification by the superintendency;
15. Appoint a secretary of the board of directors;

minus five years;
16. Present the reports that are required by the
4. Not be involved in conflicts of interest; Y,

Board and control bodies; Y,

5. Meet the requirements to be a civil servant or

17. Others assigned by law.

public server.
In the case of the public financial entity in charge of the
The person

financing

to

the

Governments

designated for the effect.

Decentralized, the functions of numeral 14 will be

Self-employed

resolved by the General Shareholders' Meeting.
Article 375.- Functions of the board of directors. The directory of
the public financial entities will have as functions

Article 376.- Functions of the President. The president of the
directory will have the following functions:

the following:

1. To dictate the management policies of the entity and control
its execution;
2. Know and authorize the contracting of loans or
operations in the national or international market, for

1. Convene and preside over the board sessions and subscribe
with the Secretary the corresponding minutes;
2. Inform the board of directors about the execution and application of
the decisions taken; Y,

on the limits authorized to the general manager;

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3. Exercise the other functions that correspond to him,
in accordance with this Code and the bylaws of the entity.

shall be recorded in the corresponding bylaws, and may not
be less than those determined in the regulations that
for the effect dictates the Board.

Article 377.- General Manager. The General Manager of the
entity will be appointed by the board of directors and will be free

Article 382.- Capital increase. The subscribed capital and

appointment and removal. You must comply with the

paid from public financial entities may

following requirements:

be increased by provision of the board of directors or by regulation
general character issued by the Policy Board and

1. Ecuadorian citizen;

Monetary and Financial Regulation.

2. Fourth level professional title in economics,
finance, administration, law or related areas;

When resources from the General Budget are committed
of the State for increases in subscribed and paid capital,

3. Professional experience in related areas of at least

A prior opinion from the governing body of finance will be required
public.

minus five years;
4. Not be involved in conflicts of interest; Y,

Capital increases will be notified to the

5. Meet the requirements to be a civil servant or
public server.

Superintendency of Banks for verification and
control.

The General Manager must meet the qualification of
suitability required for delegates to the board of directors.

Section 6 Of operations
of the public financial sector

Article 378.- Functions of the General Manager. Manager
Article 383.- Operations. Financial entities

General will exercise the following functions:

public entities will be able to carry out active, passive,
1. Legally, judicially and extrajudicially represent the
entity;

quotas and services determined in article 194,
prior authorization of the relevant control body.

2. Agree, execute and celebrate any act, fact,

The identification of the operations must be recorded in the

agreement, contract or legal business that leads to the

authorization issued by the control body, in accordance with

fulfillment of the purposes and objectives of the

the provisions of article 144.

entity;
To carry out those operations not determined in this
3. Comply with and enforce the resolutions of the board of directors;

Code must obtain the authorization of the Board of
Monetary and Financial Policy and Regulation.

4. Direct the operational and administrative management of the
entity;

Public financial entities, before the start of

5. Prepare the budget, plans and regulations of the
entity and submit them to the board of directors for consideration;

operations, must obtain from the control body the
respective operating permit, in accordance with the
procedure established for this purpose.

6. Present the reports required by the board of directors;
Article 384.- Investment in the capital of entities
7. Exercise coercive jurisdiction on behalf of the

private finance, insurance and securities. The
public financial entities that as of the effective date of

entity; Y,

this Code have investments in the capital of entities
8. The others assigned by law and statute.

financial, insurance and securities law by a
percentage greater than 50% of the capital, they may maintain

Article 379.- Administrative management. Management

said investments in accordance with the regulations that

administration of public financial sector entities

dictates the Board of Policy and Monetary Regulation and

it will be deconcentrated.

Financial in which case they must consolidate their statements
financial

Article 380.- Personnel. The officials and servants of
public financial sector entities will be subject to
the provisions of the Organic Law of Public Service and

Section 7 Of the

Labor Code, as the case may be.

prohibitions and exemptions
Section 5 Capital and

Bookings

Article 385.- Prohibitions. Entities are prohibited
public finance companies:

Article 381.- Capital and reserves. The capital and reserves of
the entities that make up the public financial sector

1. Carry out credit operations that are not framed in
the public policy established for the entity or in the
regulations issued by the Policy Board and
Monetary and Financial Regulation;

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64 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

2. Request real guarantees for operations whose
amount is less than that determined for the purpose by the

district attorneys or fiscal agents, depending on
corresponds.

Council;
If the control body presumes the commitment of the
3. Forgive debts;

crimes of embezzlement or illicit enrichment will communicate
to the Comptroller General of the State, in order to carry out the

4. Donate resources to people in private law. I know

audit that is the case.

exempts from this prohibition the use of resources from the
General State Budget within the framework of the

Article 388.- Scope of control. The areas of control

provided in article 104 of the Organic Code of

of the superintendencies and the Comptroller General of the

Planning and Public Finance; Y,

State will be expressly differentiated, in accordance with
the provisions of this Code, avoiding conflicts of

5. The others established by this Code.

competence.

The non-observance of the prohibitions indicated in the
numerals 1, 2 and 3 will be sanctioned as infractions
very serious and the non-observance of numeral 4 will be
sanctioned as a serious offense.

The acts of control, inspection, surveillance and auditing, as well
such as verifications, exams, evaluations,
recommendations and results obtained outside the scope and
competence of each control body, will be void of

Article 386.- Privileges and prerogatives. Entities
public financial institutions and the Central Bank of Ecuador,
that corresponds, will enjoy the following exemptions:
1. l. Of the payment in their acts and contracts of all kinds of
fiscal, municipal and special taxes with
exception of the value added tax for services;
2. On the payment of taxes for the issuance of titles and
financial obligations;
3. Of the alcabala tax, registration and their respective
additional for transfer of ownership of goods
real estate in which they intervene; Y,

full right, lacking legal effectiveness.
The Comptroller General of the State will exercise control
external in accordance with its law exclusively in the use
of public resources in the administrative management of
entities of the public financial sector. This control has no
scope nor does it cover the financial activities carried out by the
public financial sector. Internal control will be carried out by
means of the internal auditor appointed by the Comptroller's Office
General of the State.
Conflicts of jurisdiction in matters of control of
public financial entities will be resolved by the Court
Constitutional.

4. The others that the law grants to the institutions of
CHAPTER 5 Sector

public Law.

private financier
The entities of the public financial sector will enjoy the
Section 1

Civil, mercantile, procedural, and legal benefits and privileges

Constitution, denomination, organization

any other nature that correspond to the entities

and liquidation

financial companies operating in the country.
The prescription of actions for the recovery of their
credits will be operated in twice the established time
for the prescription of actions in general.

Article 389.- Constitution. The entities of the sector
private financial institution will be established before the Superintendency
of Banks as corporations, in accordance with
this Code, with a minimum of two promoters.

Section 8 Control and
of internal audit

A private financial entity may be established for
initiative of the interested promoters, founders or by

Article 387.- Control. The Superintendency of Banks
will be in charge of the control of financial activities
of public financial sector entities, with
exception of the public financial entity to which the
refers to the Law of Popular and Solidarity Economy, which will be
charge of the control of the Superintendency of the Economy
Popular and Solidarity.

public promotion.
Article 390.- Company name and commercial name.
For the constitution of a new financial institution
private, it will be required to previously have the reason
social, which will have to be reserved and authorized by the
Superintendency of Banks. The selected company name
by the promoters must ensure their nature and

The Superintendency of the Popular and Solidarity Economy,
will be in charge of the control of financial activities
of the entities of the Popular and Solidarity Financial Sector.
In the event that the control body presumes the

individuality, in order to avoid confusion. In reason
The type of entity that is intended will be stated
constitute.
Without prejudice to the authorized company name, the entities
may use trade names authorized by

committing a crime of public criminal action,
will report the antecedents to the Attorney General of the State,

the Superintendency of Banks. Denominations
commercial entities may only be used by entities
authorized by the Superintendency of Banks.

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Article 391.- Requirements for the constitution. The

verification, analysis, validation, evaluation and qualification of

promoters who intend to establish a financial institution

the requirements and opposition process, by third parties,

private must present, in the determined formats

within a period of one hundred and eighty days, and will require the

by the control body, the following:

objection of the Monetary Policy and Regulation Board and
Financial on the impact of the new entity on the

1. Request signed by the promoters, their attorney or
representative;

system. The Superintendency may request clarifications,
additional documentation or any other information that
complement the requirements for the constitution.

2. Documents in certified copy that certify the
identity, suitability, responsibility and solvency of the

Article 394.- Causes to deny the constitution. The

promoters;

Superintendency of Banks may deny the constitution of
a private financial institution for the following reasons, if

3. Document showing the reservation of the

would not have been corrected:

denomination or social reason;
4. The technical study signed by a professional in the
subject that contains at least the following: feasibility
economic-financial of the private entity by
be constituted and market analysis that demonstrates the

1. Failure to comply with the requirements of article 391 for the
Constitution;
2. By moratorium declared in accordance with the provisions
in article 14 numeral 26;

viability of its constitution and insertion, in accordance with the
chosen capacity and specialization and its impact on
the other entities of the system;

3. The objection of the Board of Policy and Regulation
Monetary and Financial on the constitution of the new
entity; Y,

5. The draft constitution contract, which must include
the bylaws of the entity, whose corporate purpose
must be specific, in accordance with the models

4. An opposition has been filed by a third party,
accepted by the Superintendency of Banks.

constitution contract and bylaws
regulated by the Superintendency of Banks; Y,

Article 395.- Approval of the constitution. Completed on
constitution process, the control body will approve the

6. Credit in the capital integration account,

constitution of the new private financial entity and

by means of the deposit slip at any

It will provide the corresponding marginalizations and records.

bank, of at least 50% of the minimum capital
required for constitution. This deposit will be made

The new private financial entity will have a period of

under a modality that accrues interest.

six months, counted from the date of approval of the
constitution, to implement all actions that are

Legal persons acting as promoters, as well

necessary to complete the constitution process and start

as its partners or natural shareholders, they will be

of activities. For such purposes, you must obtain the

qualified when their contribution to the financial institution by

necessary physical infrastructure, achieve the qualification of

be constituted is 6% or more of the capital.

its directors and its legal representative, have the
minimal organizational structure, including the factors

Article 392.- Minimum capital for the constitution. The

technological, processes and human resources required

The capital of the private financial institution will be divided into

for its operation, operation plans, controls

nominees actions. The minimum subscribed and paid capital

internal, according to the activities and markets in the

for the constitution of a financial sector entity

that you plan to participate and the risks that you intend to assume,

private, is:

in accordance with the standards issued by the

1. Banks: USD 11,000,000.00 (eleven million dollars
of the United States of America); Y,

Superintendency of Banks.
If the entity does not implement all the actions that are
necessary to complete the constitution process and start

2. The minimum capital and its composition of the entities of
financial services will be determined by the Board of
Monetary and Financial Policy and Regulation.

of activities within the indicated period, the approval of
Constitution will be without full right value, except that,
for duly justified causes, the Superintendency
of Banks, before the expiration of the indicated term,

Capital contributions from banks must be paid
totally in money, except that the Superintendency of
Banks authorize the capitalization of obligations for
credit compensation.

extend once for up to six months.
Article 396.- Authorization of financial activities.
The private financial entity will notify the
Superintendency of Banks compliance with the

The Board will update annually the values ​established in

actions required for its constitution and start of

the numerals 1 and 2 of this article, using for the effect

activities and will request the corresponding authorization. The

the variation of the consumer price index for the year
immediately preceding.

control body will verify compliance with these
shares, payment of 100% of the subscribed and paid capital, and
on the basis of its compliance, it will extend the authorization

Article 393.- Procedure for the constitution. One time

in accordance with the provisions of this Code.

presented the requirements determined in article 391,
the Superintendency of Banks will proceed to carry out the

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66 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

The authorization will be recorded in a motivated administrative act,

5. Natural persons who have been convicted in

in which the activities and operations will be determined

Enforceable sentence for crimes of embezzlement, laundering

financial statements that may be exercised by the entity

of assets and financing of crimes such as

private financial institution, according to its capacity and

terrorism;

specialization.
6. Natural and legal persons, managers and persons
The term of validity of this authorization will be equal to that of the

with equity ownership with influence from an entity

duration of the entity and may be renewed to the extent

private financial company declared in forced liquidation; Y,

that the duration of the entity is extended.
7. The others that the law indicates.
The authorization may not be assigned under any title and
may be revoked by the Superintendency of Banks for

Natural or legal persons that hold shares

the causes established by this Code.

in companies outside the financial activity, they may only
be a direct or indirect shareholder of an entity

The authorization will be effective from the date of its

up to below the criteria defined for

notification to the private financial institution. For the effect

be people with patrimonial property with influence.

It must also be registered in the Public Cadastre.
The control body will rate the suitability,
Article 397.- Operating permit. Notified the

responsibility and solvency of people with property

authorization of financial activities, the financial institution
The private sector will inform the Superintendency of Banks of the

patrimonial with influence, as well as legal entities
its partners or natural person shareholders, when their

start of operations, so that the control body

participation in the capital of the financial institution is

issue the operating permit.

6% or more.

The operating permit will be issued for each one
of the operational offices maintained by the entity and must
be exhibited for public knowledge in each of

Article 400.- Corporate purpose. The corporate purpose of the
private financial sector entities will be determined
in its bylaws, which will establish the type of

they.

entity and the activities to which it will be dedicated.

The corporate purpose will be specific to the type of recognized entity

Section 2
Nature, corporate purpose, duration,
status and address

in this Code and may not contain activities other than
financial activity.

Article 398.- Nature. The entities of the sector

Article 401.- Duration, statute and domicile. The

private financier will be constituted as legal persons

private financial sector entities will have the duration and

private law. In the exercise of its operations and

the domicile established in the bylaws.

financial services shall be governed by the provisions
The bylaws will contain the institutional structure

own and applicable to financial institutions.

General of the entity and must be known and approved
Article 399.- Shareholders. Financial entities

internally by the General Shareholders' Meeting and,

private companies must have at least two

later, by the Superintendency of

shareholders. They may not be holders, direct or

Banks. The statute will stipulate that the capital is divided

indirectly, of actions of the entities of the sector

in various classes of shares, with special rights to

private finance company, the following:

each class, without being able to exclude any shareholder of
participation in profits, it will also be determined

1. The entities of the private financial sector, with
exception of investment in subsidiaries or affiliates that

the nominal value of the shares, which may be one hundred or
multiple of one hundred.

form a financial group;
The reform of the bylaws will be approved by the Board
2. Private legal persons whose corporate purpose is
communication with national coverage, as well as its

General Shareholders and, subsequently, by the
Superintendency of Banks.

directors and main shareholders;
Section 3 Of the
purposes and objectives

3. The entities of the popular and solidarity financial sector,
with the exception of the provisions of article 443;

Article 402.- Purposes and Objectives. The entities that
make up the private financial sector, will have as

4. Natural or legal persons that are persons
with equity ownership with influence from an entity

purpose and objective the exercise of financial activities,

private bank may only be shareholders of another

which may exercise them, prior authorization from the State,

private banking entity as long as they do not become

in accordance with this Code, preserving the deposits and

people with patrimonial property with influence on the

meeting the requirements of financial intermediation

another entity;

of citizenship.

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Section 4 Capital,
reserves and profits

Article 406.- Advance dividends. The directory of
a private financial entity may resolve the payment of
Advance dividends, which consist of earnings

Article 403.- Capital. Private financial entities

generated by the entity before year-end

may increase their authorized capital, in accordance with

economic.

established in this Code.
For the distribution of advance dividends, the entity must
The subscribed and paid capital of financial entities
private will be increased in accordance with the regulations
issued by the Monetary Policy and Regulation Board and
Financial

previously comply with the conditions required for the
profit sharing and have the authorization of the
Superintendency of Banks. The amount of dividends
anticipated to be distributed may not exceed 40% of

The resources for the payment of the subscribed and paid capital
can only come from:

accumulated profits for the current year, nor be
greater than 80% of the amount of undistributed profits
from previous years. The maximum value for the cast

1. Contributions in money or for compensation of credits;

will be the lesser of the two options.

2. Due to capitalization of receivables to expire, prior

The administrators of a private financial institution that

valuation made by at least two companies

authorize the payment of advance dividends in

risk rating agencies;

contravention of the provisions of this article, will be
jointly and severally liable for such payment and will reimburse

3. Of the surplus of the legal reserve;

the entity, out of its own pocket, the amount of dividends
spread out. The Superintendency of Banks will make effective

4. From undistributed profits; Y,

this obligation through the exercise of jurisdiction
coercive.

5. Special reservations, provided they were
intended for this purpose.

Section 5 Government
The capitalization made by offsetting credits and

and administration

receivables to expire, without prejudice to prior approval
of the General Shareholders' Meeting, will require the authorization

Article 407.- Structure. The government of the entities

of the Superintendency of Banks.

private finance companies will be made up of:

Shareholders who appear registered as such in the

1. General Shareholders' Meeting;

book of shares and shareholders of the entity, as of the date in
the one that is published by the press the call for the increase of
capital, may exercise the preferential right for the

2. Directory; Y
3. Legal representative

subscription of shares, as well as to receive the certificate
preferably.

Board members and legal representatives
The administrators of the entity will be considered. Not

Article 404.- Legal reserve fund. Entities

The attorneys will be considered administrators

private financial institutions, must maintain the reserve fund

judicial acting on behalf of the entity.

legal under the terms of article 168.
Article 408.- General meeting of shareholders. Board
Article 405.- Distribution of profits. The utilities
generated by private financial entities may

general, formed by shareholders legally
summoned and assembled, it is the supreme organ of

be distributed in accordance with the provisions of the Board

administration, with powers to resolve all matters

General Shareholders, in compliance with the provisions of the

related to social business and to make decisions

Superintendency of Banks, and in accordance with the
regulations of the Monetary Policy and Regulation Board

that it deems convenient in defense of the entity and its
depositors and creditors.

and Financial, provided that the following are met
terms:

Among its functions will be:

1. All provisions, adjustments and

1. Approve the reports of the board of directors on the progress of the

required reserves, including those corresponding to

deal;

payment of taxes and profits corresponding to
2. Approve the financial statements and give an opinion on them,

Workers;

under its responsibility;
2. Compliance with the limits established in the
provisions relating to solvency, liquidity, equity

3. Approve the distribution of profits;

technical, linkage, assets, contingents and limits of
4. Send to the control body the reports indicated in

credit.

the preceding numerals, in accordance with the
standards that it issues;

Shareholders who are listed
as such in the book of shares and shareholders, to date
having been declared.

5. Approve increases in authorized capital;

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68 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

6. Appoint the internal and external auditors;

7. Appoint the legal representative;

7. Approve the annual reports of the internal auditors and

8. Appoint appraisers and the rating firm of

external; Y,

risks subject to prior qualification by the
Superintendency of Banks;

8. The other functions established by this Code.
The general shareholders' meeting will meet in the manner and
for the purposes determined in this article and in the
regulations issued for this purpose, within the

9. Issue an opinion, under your responsibility, on the statements
financial statements and the internal audit report, which must
include the auditor's opinion regarding compliance
of controls to prevent illegal activities,

ninety days after the close of each year.

including money laundering and financing of

The board will also, if applicable, know the report of the
external auditor on the financial group. Any choice that
hold the general meeting of shareholders it will be held by vote
writing, the scrutiny of which will be recorded in the minutes
respective.

crimes such as terrorism. The opinion of the board
must be sent to the control body observing
the instructions provided for that purpose;

10. Present the reports that are required by the
watchdogs; Y,

Article 409.- Directory. Each of the entities
private finance companies will have a board of directors, made up of a
odd number of members, with a minimum of five and one
maximum of fifteen principal directors, elected by a
period of up to two years by the general meeting of
shareholders, being able to be re-elected indefinitely. The
The Board will also appoint as many alternate directors
how many principals it has, for the same period.
For the appointment of the principal and alternate directors
of the board of directors of a private financial institution,
guarantee the right of the minority, in accordance with the

11. The others assigned by the respective social statute.

The members of the board of directors will be civil and criminal
responsible for their actions or omissions in the
fulfillment of their respective functions and duties.

Article 411.- Inoperation of the directory. The
directory inoperative when not completed
the quorum required in two successive calls to
board meetings and provided that it has been notified
in the statutory form to all members. In this case,
it will be renewed; for this purpose, the

rules issued by the Superintendency of Banks.

legal representative, at the request of the
The private financial entity will notify the

control, shall immediately call a general meeting of

control the appointment of directors, legal representatives

shareholders to elect all the members, according to the

and internal and external auditors, within a period of eight days

respective statute.

of your appointment.
Article 412.- Removal from the board of directors. The members of the
Article 410.- Functions of the board of directors. The directory of

directory of a private financial institution may be

the private financial entities will have as functions

removed, at any time, by the control body

the following:

for any of the following causes:

1. Know and resolve on the content and compliance

1. Being incurred in the impediments determined in the

of the communications of the Superintendency of

article 258;

Banks referring to provisions, observations,
recommendations and initiatives on the progress of the
entity;

2. Reluctance to comply with the provisions issued by the
control organism;

2. Analyze and approve the entity's policies, control

3. Adulterate or distort the financial statements;

its execution, and risk reports;
3. Approve the active and contingent operations that
individually exceed 2% of technical assets, and
their guarantees, and know the passive operations that
exceed this percentage;
4. Approve the subscribed and paid capital increases;

4. Obstruct control actions;

5. Carry out operations that promote or involve acts
illicit;

6. Carry out serious acts that cause fear for stability
Of the entity; Y,

5. Comply with and enforce the provisions of this
Code, Policy Board regulations and
Monetary and Financial Regulation, the norms of the
Superintendency of Banks, the resolutions of the
general meeting of shareholders and of the board of directors;

7. For any other cause determined in this Code.
The general meeting of shareholders, within three days,
will call a session for the appointment of the new
directors; if not, the control body
will proceed to summon it.

6. Approve the internal regulations;

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If after a period of thirty days from the date of
date on which the control body ordered the aforementioned

Section 7 Of the
financial groups

removals, the financial institution would not have modified its
procedures or if the competent body does not meet or

Article 417.- Financial group. It will be understood by group

did not take the corresponding agreements, it will be arranged without

financial to the one made up of a private national bank that

plus the forced liquidation of the entity.

owns the subsidiaries or affiliates, provided for in this Code.

Article 413.- Legal representative. The representation
legal entity will be exercised by the person or persons
designated by the competent body, in accordance with
established in the bylaws. The

A financial group may not be made up of more than one
national bank or by more than one service company
financial and auxiliary services of the financial system
national, dedicated to the same activity.

provisions of articles 258 and 412, in which
corresponds.

Foreign financial entities, subsidiaries or

affiliates of the national bank, will also be part of the

Article 414.- Functions of the legal representative. Without

financial groups established in this article.

prejudice to the functions assigned by the corporate statute and
compliance with other legal obligations, the
legal representative of a private financial entity will be

It will be understood that a financial group has been formed from

obligated to:

moment when the bank owns one or more of the
entities indicated in the preceding paragraphs.

1. Inform the board of directors, at least monthly, of the
credit operations, investments, operations

Article 418.- Prohibition of acquiring shares. The

liabilities, contingent and on their guarantees made

subsidiaries and affiliates of the entities of the

with the same person or persons related between

private financial system may not acquire or be

yes, they are greater than 2% of the technical assets of

owners of shares of the bank that is head of

the entity. A copy of such report shall be filed with the

financial group or any other group entity

minutes of the respective board meeting;

financial; They may not be shareholders or participate in the
capital of legal entities that are shareholders of

2. Make known to the directory, in the next

they will not be able to invest in people's capital

meeting held, all communication from the

commercial law that operate in a field other than

superintendency that contains observations and when

financial.

so requires, leaving a record of it in the minutes of the
session, which will also include the resolution

Article 419.- Presumption of financial group. I know

adopted by the board of directors. Certified copy will be sent

will presume the existence of a financial group for all

to the Superintendency of Banks within the term of

the purposes established in this Code, when

one day from the date on which the

the control body determines that between a bank and

session.; Y,

financial services or service companies
auxiliaries, determined in article 162, or with entities

3. Make known to the directory, in the next

abroad who carry out the activities foreseen in the

meeting that he holds, all communication

Article 194, there are business relationships, management or

from the Policy and Regulation Board

indirectly owned, or others, with the financial institution

Monetary and Financial, Insurance Corporation of

national or with its largest shareholders.

Deposits and Liquidity Fund and Central Bank of
Ecuador, related to the entity's activities.

The configuration of these assumptions will make these assumptions
foreign companies or entities, in members of the
financial group of the national bank.

Section 6
Of the operations of the Financial Sector
Private

The control body by regulation will determine the
criteria to presume the formation of a financial group.

Article 415.- Operations. Financial entities
private companies may carry out the operations determined in

Article 420.- Activities of the financial group. The

Article 194 that were previously authorized by the

Entities that are part of a financial group may:

Superintendency of Banks.
1. Act together in front of the public; Y,
To perform those operations not defined in this
Code, they must obtain the authorization of the Board of

2. Use the same or similar denominations as the

Monetary and Financial Policy and Regulation.

identify in front of the public as members of a
same group or keep the denomination that

Article 416.- Auxiliary services. Entities

they had before being part of that group, in all

private financial institutions in their operations may require

case, they should add the words: "Financial Group" and

auxiliary services provided by other companies not

its denomination.

financial, in accordance with the provisions of this
Code.

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The entities that make up the financial group may not

4. Create liens on your real estate,

carry out commercial, financial or

including those received in dation in payment, unless

provision of services to each other, under term conditions,

have the prior authorization of the

prices, rates, amounts, guarantees and commissions other than

superintendence; Y,

those used in similar operations with third parties.
5. The others established by law.
Article 421.- Responsibility of the head of the group.
The financial entity that makes the group head will respond

The prohibitions indicated in numbers 1, 2 and 3

for the capital losses of the group members

will be sanctioned as very serious offenses and the

financial up to the percentage value of your stake,

determined in numeral 4 will be sanctioned as

for which it will sign a responsibility agreement with

serious infringement, without prejudice to sanctions and corrective measures

each one of them, according to which it is obliged to:

provided and the nullity of the acts prohibited by
this Code.

1. Carry out the necessary capital increases
in the member entities or if this is not possible, give
all the facilities for third-party investors

Section 9 Of the control and

subscribe and pay said capital increases; Y,

of the audit

2. Dispose, at the request of the superintendency, shares

Article 425.- Control of the Superintendency of

of the other member entities or agree to the sale or

Banks. The Superintendency of Banks will be in charge of

disposal of assets of its subsidiaries, with the

control of private financial entities.

purpose of making capital contributions to the entity
that requires it.

Article 426.- Of the internal and external auditor. The
The aforementioned responsibilities will be foreseen

private financial entities will have an auditor

expressly or shall be understood to be incorporated in the

internal and external, in accordance with the provisions of title II,

bylaws of the parent entity of the investment.

Chapter 3, Section 8.

Article 422.- Solvency, prudence and control of the group
Section 10 Of the entities of

financial. The entities that make up a financial group,
financial services

as provided in this section, individually and
consolidated, will be subject to all the rules of
solvency, financial prudence and control determined

Article 427.- Financial services entities. The

in this Code and under the control of the Superintendency of

financial services entities are warehouses

Banks.

general deposit, exchange houses and
secondary market development corporations of

Article 423.- Solvency of financial groups. In order to

mortgages.

the determination of the solvency of financial groups,
will be deducted from the total technical equity of the head of

Article 428.- General. Service entities

group the capital invested in its subsidiaries and affiliates.

financial companies must be constituted in the form of companies
anonymous, subject to the procedure indicated in this Code

The Board will establish the provisions that must be applied

for the constitution of a private financial entity, and in

for the consolidation and / or combination of the statements

their legal life will be subject to the provisions that govern

financial groups of financial groups, due to the effects of

said entities. The corporate purpose of these companies

direct participation of the parent company or by its influence

anonymous will be specific to the type of entity.

significant in the member entities, as well as
establish the other deductions from the technical heritage

The provisions of

total of the matrix, from accounting items

this Title regarding exclusion and transfer of assets and

related to its subsidiaries or affiliates or the

liabilities, deposit insurance and liquidity fund, no

risks identified and not covered by them.

However, the provisions for the
entities of the national financial system in accordance

Section 8 Of the

with the regulations issued by the Policy Board and

prohibitions

Monetary and Financial Regulation.

Article 424.- Prohibitions. Entities are prohibited
Article 429.- Operations. Service entities

private finance companies:

financiers will carry out exclusively those operations
specific authorized by the Superintendency of Banks,

1. Be a member of an entity in the popular financial sector and

in accordance with its corporate purpose.

solidary;
2. Grant credit operations in favor of their

The definition and actions that comprise the

officials or employees, or their respective spouses,

operations in charge of service entities

Except as provided in article 215;

determined in this article, will be regulated
by the Monetary Policy and Regulation Board and

3. What is determined in article 255;

Financial

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Article 430.- Certificates of deposit. The warehouses

funds that the General Deposit Warehouse has to

general depository may issue securities under the

disposition of the certificate holder, they may only be

denomination of certificates of deposit, for an amount of

held by court order.

up to fifty times your estate.
Article 432.- Prohibition. Service entities
The general warehouses of deposit will issue in the form

financial resources will not be able to raise monetary

dematerialized or in physical format and in duplicate and with

public, except when they issue bonds, in the

successive numbering, the certificates of deposit. In case

terms of the Securities Market Law. The

of physical certificates, the original of the title will be delivered to the

Non-observance of this prohibition will be sanctioned as

depositor and the copy, non-negotiable, will be kept by the

very serious offense.

warehouse for its annotation, registration and accounting.
Section 11 Of the
auxiliary services

General deposit warehouses may not issue
certificates of deposit in your own favor or that of your

Article 433.- Auxiliary services. They are services

administrators, officers or employees. No

auxiliary to financial activities, the following:

certificate of deposit may be transferred in favor of the
warehouse that issued it or its administrators,

1. Of banking software;

officials or employees.
2. Transactional;
The content and other characteristics of the certificate of
3. Of transportation of monetary species and of values;

deposit will be defined by the Policy Board and
Monetary and Financial Regulation.

4. Of payments;
The things that are deposited in the Warehouses

5. Collection;

General Deposit, as well as the product of its sale or
the value of the compensation, in the event of a claim, does not

6. From networks and ATMs;

may be subject to seizure, kidnapping, retention or
7. Accountants;

prohibition of alienating. But the certificate of deposit
may be the subject of such judicial orders.

8. Computer;
The actions derived from the certificate of deposit for the

9. Ownership of buildings intended exclusively for the

withdrawal of the goods prescribe within a period of five

use of offices by a financial institution; Y,

years, from the date of issuance of the certificate.
10. Others that are determined by the Superintendency
Article 431.- Responsibility of the Warehouses

of Banks, in the orbit of its competence.

General Deposit. The General Warehouses of
Deposit will be responsible for the conservation, custody

Article 434.- Nature. Auxiliary services will be

and timely restitution of the goods that have been

provided by non-financial legal entities constituted

deposited. They will not be responsible for losses,

as corporations, whose legal life will be governed by

losses or breakdowns arising from force majeure or case

the provisions of the Companies Law. The corporate purpose

fortuitous.

of these companies will be clearly determined.

The costs and risks of internal movement of goods

Article 435.- Participation in the capital. Entities

and products are in charge of the General Warehouses of

private finance companies may participate in the capital of these

Deposit. The goods and products that are the object of the deposit

companies, in accordance with the provisions of this Code,

will be insured against the risks determined by the

converting them by this participation in subsidiaries or

Council.

affiliates.

If the goods or products have decomposed,

Article 436.- Qualification. The companies, to lend

the General Deposit Warehouses, with the intervention of

auxiliary services to the entities of the system

health authorities, may proceed to the sale

national financial institution, must be previously qualified before the

direct or to the destruction of those.

Superintendency of Banks, which as part of the
qualification may provide for the reform of the bylaws and the

Prior written notice to the depositor or the last endorsee

capital increase, in order to ensure its

in property, where appropriate, fifteen days in advance,

solvency.

at least, the General Deposit Warehouse may request
The capital of these companies must keep direct

to the competent judge, the hammer sale of the goods

proportion with the volume or amount of its operations.

when one year has elapsed from the date of
deposit, and the cost of

Article 437.- Operations. Definition and actions

storage, or when the goods are

comprising the operations in charge of the entities

threatened to perish or be destroyed for any reason.

auxiliary services of the financial system, will be
The goods or merchandise deposited, the product of their
sale, the value of the compensation in the event of a claim, the

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72 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

regulated by the Monetary Policy and Regulation Board and

2. Reluctance to comply with the provisions issued by the

Financial

control organism;
3. Adulterate or distort the financial statements;

These entities will provide services exclusively to
national financial system, in accordance with its purpose

4. Obstruct control actions;

Social. Exceptionally, they may provide services to
third parties, with the express authorization of the

5. Carry out or promote illegal operations;

Superintendency of Banks.
6. Carry out serious acts that cause fear for stability
Article 438.- Prohibition of investment. The companies

Of the entity; Y,

auxiliary services of the financial system, whose
7. For any other cause determined in this Code.

shareholders are private financial entities, they may not
Invest in the capital of another legal entity, owned or

The president of the entity or whoever statutorily

not to the national financial system. The non-observance of this
prohibition will be sanctioned by the Superintendency of

take your place, within three days from

Companies, Securities and Insurance as a very serious offense,

removal, will convene a general assembly to be held

without prejudice to its divestment.

will carry out within a maximum period of thirty days to inform and
if applicable, appoint the new members of the
Administration and Surveillance Councils. In case of no

Article 439.- Control. The corporate control of these

call the general assembly, the

companies is in charge of the Superintendency of

control body will proceed to summon it.

Companies, Securities and Insurance. Auxiliary services
related to financial activities that provide these

If after the period of ninety days from the date of

companies will be controlled by the Superintendency of

date on which the control body ordered the aforementioned

Banks, in accordance with the regulations issued for the

removals, the financial institution would not have modified its

effect.

procedures or if the competent body does not meet or
did not take the corresponding agreements, it will be arranged without
plus the forced liquidation of the entity.

CHAPTER 6 Financial Sector
Popular and Solidarity

Article 442.- Supplementary regulations. The entities of the
popular and supportive financial sector, in everything not foreseen

Section 1

specifically for this sector in this Code, will be governed

Common provisions

by the provisions of the Organic Law of the Popular Economy
and Solidarity.

Article 440.- Administration of the entities of the
popular and supportive financial sector. For the purposes of the
application of this Code, the members of the Board of

Article 443.- Investment in service entities

administration of savings and credit cooperatives and

financial and auxiliary services of the financial system.

mutual savings and credit associations for the

Popular and solidarity financial entities may

housing, the members of the board of directors of the

participate as shareholders or partners of the
financial services entities, with the exception of

central banks, and their legal representatives will be

exchange houses, and auxiliary service entities of the

considered administrators.

Finance system. In this case, all entities
must combine and / or consolidate their balances to

The surveillance councils will be jointly responsible for

present them to the control body under the group figure

performance of savings and credit cooperatives,

popular and supportive.

mutual savings and credit associations for the
housing and central savings banks and will be subject to

Article 444.- Regulation and control. Entities

responsibilities and sanctions that this code establishes

popular and solidarity finance companies are subject to

for the boards of directors.

regulation of the Monetary Policy and Regulation Board and
Finance and the control of the Superintendency of the Economy

They may not be legal representatives of the entities that

Popular and Solidarity, who in the policies they issue

make up the popular and solidarity financial sector who

will bear in mind the nature and characteristics of the

they are spouses or partners in common law or

solidarity financial sector.

relatives within the fourth degree of consanguinity or
second of affinity of members of the Councils of

Section 2 Of the cooperatives

Administration or Surveillance.

savings and credit

Article 441.- Removal of the Councils of

Article 445.- Nature and objectives. Cooperatives of

Administration and Surveillance. The members of the

savings and credit are organizations formed by people

Administration and Surveillance Councils may be

natural or legal entities that join voluntarily under the

removed, at any time, by the control body

principles established in the Organic Law of the Economy

for any of the following causes:

Popular and Solidarity, with the aim of carrying out activities
financial intermediation and

1. Being incurred in the prohibitions determined in the
article 412;

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3. Minimum of Liquidity;

social responsibility with its partners and, with prior authorization
of the Superintendency of Popular and Solidarity Economy,

4. Social Balance; Y,

with clients or third parties, subject to the regulations that
issued by the Monetary Policy and Regulation Board and

5. Transparency.

Financial
Article 450.- Quota of credits. Cooperatives of
The Monetary and Financial Policy and Regulation Board

savings and credit will establish a credit and guarantees quota

regulate taking into account the principles of territoriality,

group, which can be accessed by members of the

social balance, alternation in government and control

councils, management, employees who have decision or

democratic and social sector of the popular financial sector and

participation in credit and investment operations, their

solidary.

spouses or partners and their relatives inside the room
degree of consanguinity and second degree of affinity.

Article 446.- Constitution and legal life. The
constitution, government and administration of a cooperative

The credit quota for credit unions

savings and credit will be governed by the provisions of the Law

of segment 1 in the case of groups may not be higher

Organic of the Popular and Solidarity Economy.

10% of the technical patrimony; in the individual case no
may be higher than 1% calculated at the end of the year

A credit union, with the exception of the

annual immediately prior to the approval of the credits.

that belong to segment 1, you can have multiple

The quotas for the rest of the segments will be determined

non-financial activities as long as they are
linked

to the

by the Monetary Policy and Regulation Board and

growth

territorial,

keep

separate accounts for each non-financial activity

Financial The central savings banks will not apply the criteria of
linkage by administration, in the credit quotas.

and that they are executed with funds other than deposits of
The credit quota for credit unions

the partners

For the other segments, they will be regulated by the Board of
The liquidation of a credit union is

Monetary and Financial Policy and Regulation.

will be governed by the provisions of this Code and,
additionally, by those of the Organic Law of the Economy

The Monetary and Financial Regulation Board will regulate the

Popular and Solidarity.

percentages and quotas of the credits granted by the
savings and credit cooperatives for activities

Article 447.- Share capital and segmentation. Capital

economic activities related to the Economy sector

savings and credit cooperatives will be

Popular and Solidarity.

determined through regulation by the Policy Board and
Monetary and Financial Regulation. Cooperatives are

Credit applications from the persons indicated in

They will be located in the segments determined by the Board. The

this article will be resolved by the council of

segment with the largest assets of the popular financial sector

administration and reported to the supervisory council.

and solidarity is defined as segment 1 and will include the
entities with a level of assets greater than USD

Article 451.- Payment orders. Cooperatives of
savings and credit may issue payment orders in favor of

80,000,000.00 (eighty million United States dollars

its partners, against their deposits, which may be made

States of America.) This amount will be updated
annually by the Board applying the variation of the index of
consumer prices.

effective in other cooperatives of the same nature,
in accordance with the regulations issued by the Policy Board and
Monetary and Financial Regulation and the agreements
subscribe for the effect.

Article 448.- Capitalization. Capitalization is
will improve with the contribution of a new partner or with the
resolution of the general assembly that establishes the

Article 452.- Investments. Savings cooperatives and
credit should preferably invest, in this order:

capitalization of contributions for future capitalizations.
However, if compounding involves transferring

1. In the same financial sector; Y,

savings or deposits, will require written authorization
partner.

2. In the secondary securities market or in the entities
private finance companies.

Article 449.- Solvency and financial prudence. The
credit unions must maintain indexes

Article 453.- Redemption of certificates. None

solvency and financial prudence that allow meeting

credit union segment 1 may

your obligations and keep your activities in accordance

redeem the capital stock, in case of withdrawal of partners, by

with the regulations issued for this purpose,

sums that totally exceed 5% of the capital stock

considering the particularities of the segments of the

of the cooperative, calculated at the end of the year

Cooperatives of saving and credit.

previous economic.

The regulations shall establish standards, at least, in

In the event of the death of the partner, the redemption of the capital

the following aspects:

will be total and will not be computed within the 5% established in
the previous subsection; the return will be made in accordance with the

1. Patrimonial solvency;

provisions of the Civil Code.

2. Financial Prudence;

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74 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Compensation of contribution certificates with debts

work or personal services, direct or

to the cooperative will be allowed only in case of withdrawal of the

indirectly, with other people or organizations;

partner, always within the 5% limit.
5. Establish agreements, conventions or contracts with people
It will not be possible to redeem capital stock if it results

natural or legal entities outside the organization, which

infringement of the regulations regarding technical heritage and

allows you to participate directly or indirectly in the

solvency relationship or if the cooperative is

benefits derived from promotion measures,

subject to intensive supervision programs, in the

promotion and incentives granted by the Organic Law of

terms established by the superintendency.

the Popular and Solidarity Economy;

The redemption percentages of the capital stock of the

6. Profiting from or fraudulently benefiting from

savings and credit cooperatives of the rest of the segments

operations and activities of the organization and

will be regulated by the Board of Policy and Regulation

benefits granted by the Organic Law of the Economy

Monetary and Financial.

Popular and Solidarity. The same provision will apply to
administrators of the financial institutions of this

Article 454.- Control. The control of the activities of the

chapter.

savings and credit cooperatives will be made in accordance
with the segments in which they are located.

7. Hide, fraudulently alter or delete in any
operation report, data or facts regarding the

Article 455.- Audits. Savings cooperatives and

to which the superintendency and the public have the right

credit will have internal and external auditors when their

to be informed; Y,

assets exceed USD 5,000,000.00 (five million
United States of America dollars). This value is

8. The others established in this Code, in the Law

adjusted annually according to the price index at the

Organic of the Popular and Solidarity Economy and its

consumer.

Regulation.

Credit unions whose assets are

The prohibitions indicated in numbers 1, 5, 6 and 7

lower than the amount indicated in the preceding paragraph,

will be sanctioned as very serious offenses and

will have audits determined by the council of

determined in numbers 2, 3 and 4 will be sanctioned

administration, in accordance with the rules issued by the

as serious offenses, without prejudice to the penalties and

Monetary and Financial Policy and Regulation Board.

corrective measures and the nullity of the acts
prohibited by this article.

Article 456.- Auxiliary supervision. The organisms of
integration and other specialized entities may

Section 3

collaborate with the superintendency in the realization of one or

Of the associative or solidarity entities, boxes and

various specific supervisory activities, fulfilling

banks

the conditions and provisions dictated by the

communal and savings banks

superintendency for the effect. Assistant supervisors
will be administratively, civilly and criminally responsible for the

Article 458.- Associative or solidarity entities, savings banks and

supervision they carry out.

communal banks and savings banks. Entities
associative or solidarity, savings banks and communal banks and savings banks

Article 457.- Prohibitions. Savings cooperatives and

Savings are organizations that may opt for the

credit, in addition to the prohibitions, provided in this

legal personality, which are formed by the will of their

Code that were applicable to them, they are prohibited

partners within the limit and in the manner determined by the

following:

Monetary and Financial Policy and Regulation Board,
They will have their own structure of government, administration,

1. Acquire shares of entities in the financial sector

representation, social self-control and accountability and

private, except as provided in article 443;

will have the obligation to send the information that is
requested by the superintendency.

2. Grant, in any way, preferences or
privileges to partners, administrators, officials or

Associative or solidarity entities, savings banks and banks

employees;

communities and savings banks are formed with contributions
members' economic savings, as savings, without

3. Require new members of the organization to
subscribe a greater number of contributions, quotas or
contributions from those acquired by the founders

can attract funds from third parties, for the granting of
credits to its members under the regulations issued by the
Board, and will be registered in the corresponding registry.

since they joined the organization, or that
contract with the entity any obligation

Those who opt for legal status will observe for

extraordinary economic, who have not contracted it

its operation the requirements determined by the

said members;

Monetary and Financial Policy and Regulation Board and
may receive financing for their development and

4. The directors of the organizations are prohibited

strengthening granted by public entities,

to use their status and the entity's resources to

organizations of the popular and solidarity economy,

establish contractual, professional relationships,

support entities, national and international cooperation and
generally be favored with donations and grants.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 75

Article 459.- Applicable legislation. Entities

constitution, due to its characteristic of variable and

associative or solidarity, savings banks and communal banks and savings banks

unlimited, new members must pay upon their entry the

Savings will be governed by this Code, by the Organic Law

value of the contribution certificate established in the statute

of the Popular and Solidarity Economy and the regulations issued

of each entity.

the Monetary and Financial Policy and Regulation Board.
Article 464.- Minimum share capital, equity and
The entities mentioned in this article are subject to

segmentation. The minimum share capital of an association

accompaniment, not control, unless they carry out

mutual savings and loan for housing will be variable

operations outside its scope, in which case they will be

and unlimited and will be represented by certificates of

sanctioned by the Superintendency of Popular Economy

non-redeemable contribution paid by its partners. Capital

and Solidarity.

minimum social will be regulated by the Board of Policy and
Monetary and Financial Regulation. The mutualists are
Section 4

They will be located in the segments determined by the Board.

Of mutual savings and credit associations
for housing

The value of the contribution certificates will be established at
the constitution of a mutual savings association and

Article 460.- Nature and objectives. The associations

credit for housing and must be stated in your statute.

mutual savings and loan for housing are
entities that are part of the popular financial sector and
solidarity, whose objectives are to attract resources from the

Contribution certificates will have the quality of title
value.

public to allocate them to the financing of housing,
construction and the family well-being of its clients and partners,

The assets of mutual savings and

and are governed by the provisions of this Code.

credit for housing will be made up of capital
Article 461.- Constitution and legal life: The

social, irrepartible legal reserve and other reserves

mutual savings and credit associations for the

statutory and may not be less than USD 1,800,000.00 a

housing, in its constitution, will be governed by the provisions

million eight hundred thousand United States dollars of

applicable to prescribed credit unions

America. The members of the mutuals will be responsible

in the Organic Law of the Popular and Solidarity Economy and in

by the entity's equity up to the percentage of

its statute.

your contributions.

Activities, operations, liquidation and all others

To form their irreparable legal reserve, the mutualists

aspects inherent to its legal life, the associations

will allocate, at least, 10% of their annual profits,

mutual savings and credit for housing will be governed

until reaching an amount equal to 100% of the capital stock.

by the provisions of this Code referring to said
entities, and in matters not specifically regulated for

The surpluses and annual profits that exist in the

same, those applicable to savings cooperatives and

mutual savings and credit associations for the

credit prescribed in this Law, the regulations issued

currently existing dwelling, after deductions

the Board and its statute.

legal, will be distributed proportionally among the partners and
the accumulated irreparable legal reserve, pro rata to its

Article 462.- Government and administration. The government of

equity participation. For the purposes of what

mutual savings and credit associations for the

established in the Internal Tax Regime Law,

housing will be made up of a general meeting of

will have as reinvestment the increase of this legal reserve

partners, a board of directors, a board of

with surpluses and profits.

surveillance, legal representative, internal and external auditors.
Its internal organization will be stated in the bylaws, which
will be approved by the Superintendency of the Economy
Popular and Solidarity.

Existing mutuals will increase the legal reserve
irreparable with 10% of the annual profits, in the part
corresponding to its partners, only when it is

Article 463.- Partners. They are members of the associations
mutual savings and credit for housing the
people who maintain contribution certificates.

less than 100% of its share capital, and until reaching that
level.

Article 465.- Operations. Mutual associations
savings and credit for housing, within the scope of its

Contribution certificates represent participation
of the capital of the partners in the entity, they confer the right

objectives, they will be able to carry out the operations determined in
Article 194, prior authorization from the Superintendency

voice and one vote, regardless of the number of

of Popular and Solidarity Economy.

contribution certificates that each one pays. None
natural or legal person may possess in certificates of
contribution, directly or indirectly, more than 6% of the capital

These entities may invest directly in projects

Of the entity.

specific aimed at the development of housing and
construction, and in auxiliary service entities of the

In no case will the entry of new partners be restricted to

financial system for real estate or other entities

mutual savings and credit associations for the

auxiliary services qualified by the superintendency,

living place; once the minimum capital amount of

whose exclusive object is related to the activities
specific to the business line.

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76 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Own investments in specific projects oriented

Section 5 Of the boxes

to the development of housing and construction may not

central

exceed 100% of its technical assets. In no case
a single investment project may have 100% of the quota

Article 468.- Central Savings Banks. The Central Boxes are

assigned. The total quota must be distributed in several

entities that make up the popular financial sector and

investments.

solidarity, which are constituted with, at least, twenty
savings and credit cooperatives or mutual savings and

The public financial entity in charge of programs

home credit.

social housing, mutual associations of
savings and credit for housing and cooperatives

The central savings banks duly authorized by the

housing are exempt from tax taxes and

superintendency may carry out financial operations of

municipalities for the acts and contracts that they celebrate in

second floor, with credit unions and

relationship with social interest housing projects in the

mutual savings and credit.

country.
Article 469.- Constitution and legal life. The boxes
Centrals, in relation to their constitution and structure
The borrowers of the

internal will be governed by the provisions established in the

entities indicated in the previous paragraph, in all acts

Organic Law of the Popular and Solidarity Economy and its

and contracts by which the loans are applied

Regulation.

received for the purpose of purchasing land or housing,
construction, improvement, expansion, rehabilitation or

Article 470.- Activities. The Central Boxes preview

completion of social housing. This exoneration

authorization from the Superintendency of Popular Economy and

It is extended to natural or legal persons who

Solidaria may carry out with the savings cooperatives and

contract with the public financial entity in charge of

credit and with mutual savings and credit, the

social housing programs, Associations

activities described in article 194 and, additionally,

Mutualists and Cooperatives mentioned above or with the

the following:

borrowers of these entities, in the purposes before
1. Develop financial services networks among its

punctuated; and covers the loan contracts and the value
of the borrower's savings that are used to pay the installment

affiliates, such as shared windows,

entry for the purchase of land or housing,

fund transfers, remittances, service payments,

construction, improvement, expansion, rehabilitation or

among others;

completion of social housing.
2. To function as a clearinghouse between its
affiliates, with prior authorization from the Central Bank of
Ecuador, in accordance with the provisions of this Code;

Real estate that is acquired for purposes
housing and houses that are built, expanded or

3. Channel and intermediate resources for development

end up with mortgage loans granted by the

the Popular and Solidarity Financial Sector;

public financial entity in charge of housing programs
social interest, mutual savings associations and

4. Management of the investment portfolio, when

credit for housing, and housing cooperatives,

deal with securities issued by the governing body of the

constitute Family Patrimony, by ministry of the Law and

public finances and the Central Bank of Ecuador; Y,

will be subject to the general rules on
Family Patrimony establishes Title XI of Book 2 of the
Civil Code, and the special ones that appear in the present

5. Structuring of risk management products
financial.

article, those that will prevail over those.
Article 471.- Compulsory contributions. Partner entities
of the Central Banks must maintain at all times a
Article 466.- Solvency and financial prudence. The

amount of contribution certificates in accordance with the

mutual savings and credit associations for the

regulation issued by the Board for this purpose.

housing must maintain solvency rates and
financial prudence to meet your obligations

Article 472.- Differentiated regulation for contributions of

and maintain their activities in accordance with regulations

the central boxes. The Central Banks will contribute to the fund

issued by the Monetary Policy and Regulation Board and

of liquidity in accordance with the specific rules that

Financial, considering the aspects determined in the

to this effect, the Board dictates. They are not applicable to these

Article 449.

entities the credit quotas established in article
450, nor the criteria of connection.

Article 467.- Deposit Insurance, Liquidity Fund and

Section 6 Of the

Private Insurance Fund. The associations

auxiliary services

mutual savings and credit for housing will access
to deposit insurance, Liquidity Fund and Fund of

Article 473.- Auxiliary services. The entities of the

Private Insurance in accordance with the provisions of Title II,

popular and solidarity financial sector will be able to invest in

Chapter 3, Section 15.

auxiliary service entities of the financial system

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 77

national. These entities will be governed by the provisions

holder in a financial institution, orders said entity,

contained in Title 2, Chapter 5, Section 11.

called turned over, which pays a certain amount
of money to another person called a beneficiary.

Likewise, the entities of the popular financial sector and
solidarity may constitute organizations of the economy

The check issued, in accordance with the provisions of this

popular and solidary whose object is the provision of

Code, it has probative value.

auxiliary services that will be governed by the provisions of
the Organic Law of the Popular and Solidarity Economy.

Article 479.- Content and validity of the check. The check
must contain:

Article 474.- Qualification. Service entities
auxiliaries constituted in accordance with article

1. The check denomination, inserted in the text of the

above, in order to operate, they must be qualified

document and expressed in the language used for its

previously before the Superintendency of Popular Economy

drafting;

and Solidarity, which as part of the qualification may
provide for the reform of the bylaws and the increase of the

2. The pure and simple mandate to pay a sum

capital, in order to ensure its solvency.

determined of money;

The capital of these companies must keep direct

3. The name of the person who must pay or drawn;

proportion with the volume or amount of its operations.
4. The indication of the date of payment;
Article 475.- Prohibition of investment. The companies
auxiliary services of the financial system, whose

5. The indication of the place of issuance of the check; Y,

shareholders are popular financial institutions and
6. The signature of the person issuing the check or drawer.

solidarity, and organizations of the popular economy and
joint venture whose object is the provision of services
auxiliaries, may not invest in the capital of another person

The check in which any of the indicated requirements is missing

legal, whether or not it belongs to the national financial system. The

it will not be valid as a check.

Non-observance of this prohibition will be sanctioned by the
respective control bodies as a very infringement

Article 480.- Interests. The amount of the check does not generate

serious, without prejudice to its divestment.

interest, therefore any stipulation on interest is
is said to be non-existent.

Article 476.- Control. The corporate control of the
auxiliary service entities of the financial system to the

Article 481.- Signatures on checks. When a check

referred to in this section will be in charge of the

bear signatures of incapable persons, false signatures, of

Superintendency of Companies, Securities and Insurance and of the

imaginary people or signatures that for any other reason

Superintendency of Popular and Solidarity Economy, according to

cannot compel people for whom they have been

the case. Auxiliary services to financial activities

signed the check, or in whose name it is signed,

of the popular and solidarity financial sector will be controlled

the obligations of any other signatories will not leave,

by the Superintendency of Popular and Solidarity Economy,

therefore, to be valid.

in accordance with the regulations issued for this purpose.
Article 482.- Responsibility. Who signs a check
as a representative of a person who does not have
CHAPTER 7 Standards of
general character

power to act, binds itself by virtue of the
check, and, if you have paid, you have the same rights as you would
the represented assumption. The same rule applies to

Article 477.- The Monetary Policy and Regulation Board

representative who has exceeded his powers.

and Financial and control bodies, in the areas of
their functions, they will issue the necessary standards to

Article 483.- Responsibility of the drawer. The spinner

implement the provisions of this title.

Responds for the payment. Any clause by which the drawer
exempting yourself from this responsibility has no value.

TITLE III
Article 484.- Prohibition of duplicate checks.

RELATED PROVISIONS

Do not issue duplicate checks.

CHAPTER 1
Of the

Section 2 Of the

Checks

transmission

Section 1 Of the

Article 485.- Transferability and endorsement. The check is

emission and form

transferable through endorsement.

Article 478.- Check. It is a written means of payment

Endorsement is the transmission of a check to the order by

whereby a person called drawer, charged to

a formula written on the back of the document.

the deposits you keep in an account from which it is

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78 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

The endorsement must be pure and simple. It will be considered not

paid out. The entity that violates this prohibition will be

written all conditions to which the transmission is subordinated

sanctioned by the control bodies with a fine for

of the check.

the value of the corresponding check.

The partial endorsement is null.

Bounced checks are exempt from this provision.
for defects of form and those presented after the deadline

Checks may only be endorsed once and for the

maximum for payment of the check indicated in article 517,

amounts established by the Policy and Regulation Board

as well as the digitized images of the checks

Monetary and Financial.

entered the clearinghouse.

The signature stamped by the payee on the check to

Article 493.- Deadline for submission. The check's

presentation and collection effects, when drafted, it is not

drawn and payable in Ecuador must be presented

will be considered as an endorsement proper, so

for payment within a period of twenty days, counted

will not be included within the limitation to the

from the date of issue.

circulation provided in the previous paragraph.
Checks drawn abroad and payable in the
Article 486.- Signature of the endorsement. The endorsement must

Ecuador must be presented for payment within the deadline

be written on the check and must be signed by the

of ninety days, counted from the date of its issuance.

endorser.
Checks drawn in Ecuador and payable in the
Article 487.- Transmission of rights. Endorsement

exterior will be subject, for presentation to payment, to the

transmits all rights resulting from the check.

terms or terms determined by the law of the State where

Blank or bearer endorsements are prohibited.

the bank drafted is domiciled.

Article 488.- Payment guarantee. The endorser, except

Article 494.- Presentation for payment. The presentation

clauses to the contrary, guarantees payment.

of the check to a clearing house by the
financial institution, it is equivalent to the presentation for payment.

The Board will regulate the endorsement mechanisms.

Article 495.- Revocation of the check. The spinner may

Article 489.- Legitimate holder. The beneficiary of a
check, endorsable or not according to what is indicated in the
Article 485 is considered a legitimate holder.

revoke a check by communicating in writing to the drawee that
refrain from paying it, indicating the reason for such
revocation, without the disappearance of the
responsibility of the drawer.

Article 490.- Exceptions opposable to the bearer. The
persons sued under the check cannot

At the request of the bearer or holder who has lost the

oppose the bearer or holder the exceptions based on

check, the drawer is obliged, as a measure of

your relationships with the drawer or previous holders,

temporary protection, to suspend, in writing, the order of

unless the bearer or holder, when acquiring the check,

pay.

has knowingly acted to the detriment of the debtor.
Article 491.- Endorsement after the protest. Endorsement
post-protest or made after termination
of the submission period, does not produce other effects than the
of an ordinary assignment.

The revocation of the check will not take effect when it does not exist
sufficient provision of funds and, in this case, the bank
you will be obliged to protest the check.
The drawee must retain the amount of the revoked check

The undated endorsement is presumed done, except, evidence in
otherwise, before the protest or before the end of the

until a judge decides what is convenient, or until the
drawer annul the revocation, or until expiration
of the six-month statute of limitations, counted from the date of

term referred to in the preceding paragraph.

expiration of the submission period, or until
declare without effect the check for theft, deterioration,
loss or destruction, in accordance with the rules of

Section 3 Of the

general character dictated by the Board of Policy and

presentation and payment

Monetary and Financial Regulation.
Article 492.- Payment of the check. The check is payable to
the view.

Article 496.- Validity of the check. Neither death nor
supervening disability of the spinner affect the validity of the
check.

Upon presentation of the check, the drawee is obliged to
pay it or protest it. Otherwise, it will answer for

The drawee who has knowledge of the bankruptcy of the drawer,

the damages and losses caused to the bearer or holder,

must deny payment.

regardless of the other sanctions to which there may be
place.

Article 497.- Cancellation of the check. The drawee, when paying
the check will require the bearer or holder to cancel it.

Prohibit financial institutions to put instead of the
I protest any legend, dated or undated, that states
that the check was presented for payment and not

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 79

The bearer or holder may admit or refuse, at will,

business time, it is not paid, provided that the lack of payment

a partial payment, but the drawee is obliged to pay the

is credited by protest, in any of the ways

amount of the check up to the total amount of funds you have

following:

spinner layout.
1. By declaration of the drawee, dated and written in the
In the case of partial payment, the drawee may demand that

check;

mention such payment on the check and receipt is conferred, and
will be obliged on its part, to grant the bearer or holder

2. When the drawee refuses to extend the declaration

a receipt in which all the

mentioned in the previous numeral, a notary public

check specifications and unpaid balance. East

of the domicile of the financial institution, at the verbal request or

voucher will have the same effects as the check

written document of the bearer or holder, will require the entity to

protested as to the uncovered balance.

payment of the check, and, in case of refusal, will extend the
I protest stating the requirement, the refusal

Article 498.- Verification of signature. The drawee who pays a

the payment and the reason for it; Y,

check is obliged to check the regularity of the
endorsement and the identity of the person to whom you pay it, but

3. By dated statement of a chamber of

not the signature of the endorser.

compensation, stating that the check has been
sent in good time and has not been paid.

Article 499.- Fine for protested check. It establishes
the fine of 10% on the value of each protested check

Article 505.- Loss of the share. The carrier or fork

due to insufficient funds, which must be paid by the

that I will not present the check for payment within the deadline

drawer, fine that will be debited by the financial institution,

legal, you will lose your action against the endorser, and against the

of the drawer's accounts, up to the amount that remains

drawer, when, having had funds, they will reach

in deposit and transferred monthly to the Unique Account

lose, after the term has expired, for having

of the National Treasury.

declared in liquidation to the financial institution.
Section 4

Article 506.- Solidarity. All obligated persons

Of the crossed check and the check

By virtue of the check, they are jointly and severally with respect to the

not negociable

carrier or fork.

Article 500.- Crossed checks. The spinner or the carrier

The bearer or holder has the right to proceed against all

or holder of a check may cross it, in accordance with

these people, individually or collectively, without being able to

the standards issued by the Board.

be compelled to observe the order in which they are
would have forced.

Article 501.- Non-negotiable check. The check that
contains the expression "not to order" or another equivalent
such as "not endorsable", "not negotiable", "not transferable", not
is transferable except in the form and with the effects of a

The same right corresponds to every signatory of a check
you have paid.

ordinary assignment.
The action taken against one of the obligated parties does not prevent
The drafted bank that receives a check with any of the

proceeding against others, even those after

expressions indicated above, you can only prove your

the one against which it was proceeded in principle.

value in an account belonging to the beneficiary, or pay it
Article 507.- Values ​to claim. The carrier or fork

in currency to the beneficiary or the assignee.

You can claim from the person against whom you exercise your action:
Article 502.- Damages. The rotated who does not observe the
1. The amount of the unpaid check;

provisions of this section, will be liable for the damages
up to a sum equal to the amount of the check.

2. Your interests, at the maximum rate, as of the date of
I protest; Y,

Section 5 of the check
certificate

3. The expenses of the protest, the notifications and the
court costs.

Article 503.- Certified check. The check that
contains the word "certified", written, dated and signed

Article 508.- Claim to jointly obligated. The

for the drawee, forces him to pay the check to his
presentation and releases the drawer from the responsibility of the

who has paid the check can claim from the
jointly and severally bound:

pay.
1. The full sum paid by him;
Section 6 Of the
actions for non-payment

2. The interests of said sum, calculated at the rate
maximum, from the day of payment; Y,

Article 504.- Protest of checks. The carrier or fork
may exercise its actions against the drawer, the endorser

3. The procedural costs.

and the other obligated parties, when, presenting the check in

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80 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

Article 509.- Delivery of the protested check. Any

Section 9

obligated against whom an action is brought or who is

Rules

exposed to it, can demand against payment the delivery of the

common

protested check and receipt.
Article 515.- Term for presentation and protest of a
Article 510.- Force majeure or fortuitous event. When the

check. Presentation and protest of a check must

presentation of the check or the lifting of the protest does not

be carried out within the periods provided for in article 493 and

can be carried out within the prescribed periods, by force

on one business day for the respective diligence.

major or fortuitous event, these terms will be extended until
When the last day of the term is not a business day,

when such events have ceased.

it will be extended until the first following business day. The
The cases of force majeure will not be considered

Intermediate holidays will be included in the computation of the

purely personal facts of the bearer or holder or of

term.

the one who has been commissioned to present the
check or the lifting of the protest.

Article 516.- Executive title. The check not paid by
lack or insufficiency of funds and protested within the term

Article 511.- Alteration of the check. In case of

of presentation, constitutes executive title. Equally

alteration of the text of a check, subsequent signers

The voucher referred to in the

to the alteration will be obliged in accordance with the

Third paragraph of article 497.

terms of the text; but previous signatories will be
only according to the original text.

In all other cases, unless otherwise provided by law, the
payment of a check may be claimed in verbal trial

Section 7 Of the

summary.

prescription
Article 512.- Prescription.

The actions that

correspond to the bearer or fork against the spinner, the
endorsers and other obligated parties, prescribe at six

The civil action attempted for the payment of a check, not
harms the corresponding criminal action.
Article 517.- Maximum period for payment of check The

months, counted from the expiration of the term of

drafted can pay a check even after expired

presentation.

the terms established in article 493 and within the
thirteen months after the date of issue.

The actions that correspond to each other to the various
obliged to pay a check, prescribe at six

Article 518.- Loss caused by check payment

months, counting from the day an obligor has paid

counterfeit. Loss caused by paying a check

the check or from the day an action has been exercised

counterfeit not included in the numbering of the drawer,

against him.

corresponds to the drawee.
Article 513.- Interruption of the prescription. The
Loss caused by the payment of counterfeit checks,

prescription is discontinued in accordance with the

included in the numbering of the drawer, corresponds to

provisions contained in the law.

this or the drawee, depending on whether one or the other is at fault for the loss.
If neither of us were to blame, the loss
Section
Conflicts
laws

8

will correspond to the drawee.

from
If the drawer does not claim within six months of
presented by the drawee the statement of the current account, in

Article 514.- Conflict of laws. Regarding conflict

the one that shows the payment of counterfeit checks, the loss

statutes, the law of the state in which the check is to be paid,

caused by the payment of such checks will correspond to

determines:

drawer.

1. The term of presentation;

Any stipulation contrary to the provisions of this
Article.

2. If it can be accepted, crossed, certified or
confirmed, and the effects of those operations;

Article 519.- Regulation. The Board of Policy and
Monetary and Financial Regulation, will dictate the rules of

3. The rights of the holder over the provision of funds and

general nature necessary for the purposes of applying the

his, her nature;

Provisions regarding checks contemplated in this
Code.

4. The drawer's rights to revoke the check or
object to payment;

The Central Bank of Ecuador will regulate the processing of
checks digitized in the clearinghouse of

5. The necessity of the protest or other equivalent act to

checks.

retain rights against endorsers, the
drawer or other obligated; Y,

The digitized images of the checks processed in
the check clearing house, will have equal value

6. The other situations referring to the modalities of the

probative than the original.

check.

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 81

Financial entities are empowered to destroy the

quotation of twenty-five thousand (25,000.00) sucres per dollar, and

physical checks received in deposit, once the

new credit titles or collection orders will be issued

certain period of time to keep them in physical shape.

direct that will accrue an interest rate equivalent to the
16.82% annually, as of January 11, 2000. The

Article 520.- Sanctioning power. The organisms of

settlement will be notified to the taxpayer and will continue

control have the power to sanction non-compliance

with the actions provided for in the Tax Code.

of this chapter, by imposing fines that
will be between one and thirty basic salaries

Fourth.- Monetary and financial transactions to

unified.

through tax havens. The Board of Policy and
Monetary and Financial Regulation will regulate
monetary and financial transactions abroad,
GENERAL DISPOSITION

especially those carried out with tax havens or
jurisdictions of less imposition than that of Ecuador, of

First.- Limits of liability. The state does not

in accordance with the definitions established by the

will be responsible for the solvency of the entities of the

Internal Revenues.

private financial sectors; popular and supportive; nor of the
entities that make up the securities and

The Central Bank may request the entities of the system

private insurance and in no case can you assume your

national financial information on the complete chain

debts.

international payments of transactions
Regulation and control of the private financial sectors

monetary and financial. You may also request the

and popular and supportive, securities and insurance, will not transfer

livelihood information pertaining to individuals

State the responsibility of the solvency of the entities

natural and legal ordering of said transactions,

that integrate them.

that represent the most important accumulated amounts
in accordance with the regulations issued by the Board of
Monetary and Financial Policy and Regulation.

Second.- Functions of the Board. All functions in
policy and regulation matter that the laws in force at the
date of promulgation of this Code, grant to the Board

Fifth.- Temporary retention of deposits and investments.

Banking, Board of Directors of the Central Bank of Ecuador, Board

The superintendents, the State Attorney General, the

Regulation of the Popular and Solidarity Financial Sector,

Comptroller General of the State and the Attorney General of the State,

Stock Market Regulation Board, Board of Directors

exceptionally, for presumption of illegal acts and

the Deposit Insurance Corporation and Board of Directors

motivated and individually, they may order the retention

Liquidity Fund, will be assumed by the Policy Board

temporary deposits and investments in the entities of the

and Monetary and Financial Regulation, except in cases

National Financial System.

expressly delegated to the control bodies in
this Code.

The retention ordered will expire within fifteen days
counted from the notification to the respective entity

Third.- Conversion to United States dollars

financial, unless confirmed by a Judge

from America. In all current legislation and in the

competent. In this case, the withholding will be subject to the

pending payment obligations in which it is available

provisions of the Code of Civil Procedure.

that payments must be made in sucres, it will be understood that
must be made in United States dollars of

Sixth: Liabilities and immobilized balances. The liabilities that

America at a conversion rate of twenty-five thousand

have remained immobilized in any entity

(25,000.00) sucres per United States dollar of

of the national financial system for more than five years with

America.

a balance of up to the equivalent of 25% of a salary
unified basic, or for more than ten (10) years with a balance

In all current legislation and obligations

higher, for not having been claimed by your beneficiary

pending payment in which it is provided that the payments

From the date they are due, they will be transferred to

should be done in units of constant value (UVC) or in

the Single Account of the National Treasury, with the exception of

general minimum living wages, it shall be understood that each

immobilized liabilities by legal or judicial provision

constant value unit and each minimum living wage

duly notified to the financial institution.

they generally have a fixed and invariable value equivalent to,
respectively, two point six two eight nine (2.6289) and

Immobilized liabilities will be settled as of January 31,

USD 4.00 (four United States dollars of

every year.

America), respectively.
Financial entities may not transfer to profits,

The amounts pending payment for tax obligations

directly through transfer to provisional accounts or

constants of credit titles or direct collection orders,

in any other way, immobilized securities or balances,

as well as those corresponding to previous periods and that

belonging to other people, whatever the

are determined by the taxpayer himself or by the

quality of these.

Administration, will be settled by adding the interests of
arrears that were in force until January 10,

Every financial institution must present in January of each

2000, at the current rate for each quarterly period. The value

year a report to the control body regarding the

thus obtained and that of the fines, will be transformed into

existence of any security, dividend or balance not

United States of America dollars, at one

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82 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

claimed belonging to third parties that may have

General Insurance or by direct debit of the

remained immobilized as a liability under your charge for five

accounts that the entities obliged to contribute maintain

or ten years.

at the Central Bank of Ecuador.

Seventh.- Payment of the depository receivables of greater

Eleventh.- Contribution of the Ecuadorian Institute of

amount. In the processes of forced liquidation of the

Educational Credit and IECE Scholarships and Ecuadorian Service

entities of the national financial system, without prejudice to the

of Professional Training SECAP. The contribution of

priority of payments established in this Code, the liquidator

1% of the payroll to the Ecuadorian Institute of

In a motivated manner, you may request natural persons or

Social Security, which are being transferred to the Institute

legal entities that have credits over the value that

Ecuadorian Educational Credit and Scholarships, IECE (0.5%) and

determined by the Board, additional justifications on the

Ecuadorian Professional Training Service SECAP

origin of said resources.

(0.5%), based on Supreme Decree No. 623-A, of 3
of August 1976, referred to in article 13 literal a) of the

Eighth.- Competition. When the object or matter of a

Substitute Law for the Law of the Ecuadorian Credit Institute

claim or administrative appeal is under

Education and Scholarships, and in Art 14 literal a) and Art. 14-A of the

knowledge of ordinary justice, the organisms

Law of Creation and Operation of SECAP, will be

public regulated by this Code will refrain from following

deposited in the Single Account of the National Treasury as

knowing them as soon as they are informed of such

part of the General State Budget from 1

circumstance, and provided that it is the claimant or appellant

January 2015.

who intervenes as a plaintiff in the judicial process.
Twelfth.- Competence to sanction. The

The provisions are not applicable when the facts matter

competence to sanction infractions of the

of the claim or administrative appeal are also subject to

securities and insurance market entities, their

investigation or trial in the criminal field.

administrators, officers or employees, auditors
internal and external, risk rating firms, experts

Ninth.- Legal actions. Any legal action initiated

appraisers and others who provide support services to the

against the heads or delegates of the Policy Board

supervision, corresponds to the Superintendency of

and Monetary and Financial Regulation in a personal capacity, by

Companies, Securities and Insurance.

acts, resolutions or decisions taken within
said collegiate body, it will be ineffective and the judges that

Thirteenth.- Transferability. The Ecuadorian State

know they should discard them, except for those actions

will guarantee the free transferability abroad in foreign currency of

to initiate the State Attorney General's Office for the crimes

the periodic earnings or profits and returns of the

against the Public Administration and the judicial action of

foreign direct investment, once the

repetition.

tax and labor obligations and those established in the
legislation.

The Superintendents contemplated in this code do not
will be exempt from responsibility for the acts

Fourteenth: People who receive operations from

carried out in the exercise of their functions or by their

credit including deferred credit by credit card,

omissions and will be responsible for administrative, civil and

financing, portfolio purchase, discount

criminally for their decisions. The responsibilities

bills of exchange and repurchase agreements with entities

will be determined by the control bodies of the

of the private financial sector, controlled by the

State, the State Attorney General's Office and the judges

Superintendency of Banks, will pay a contribution from the

competent.

0.5% of the transaction amount. This rate may be
reduced in duly justified cases for reasons of

Legal actions brought against acts of

economic or social nature, by executive decree,

the Superintendencies will be filed against said

up to 0.01%, in general or by segments, at

entities. Any legal action against the

reasoned request of the Policy Board of

holders of such bodies in a personal capacity will be ineffective

Monetary and Financial Regulation. This contribution

and it will not be admitted to any procedure, except those filed

It will also apply to the financing made to the credits

by the State control bodies, the Comptroller's Office

overdue.

State General and the State Attorney General's Office, without
prejudice to the action of repetition established in the article

The State institutions defined in Article 225 of

11 numeral 9 of the Constitution of the Republic.

the Constitution of the Republic are not subject to the payment of
this contribution.

Tenth.- Contributions. Contributions to the
Private financial sector entities will act as

effective date of this Code are financing the

withholding agents for this contribution. Amounts

budgets of the control bodies will be

collected will be deposited daily, with a lag

directly consigned to the Single Treasury Account

up to 48 hours, by withholding agents in the

National.

Single Account of the National Treasury. The resources of this
The payment of these contributions will be made with

contribution will be used to finance the

direct transfers to the Single Treasury Account

comprehensive cancer care.

National with the exception of that corresponding to the Fund of
Financing in favor of the different nuclei of the

Private Insurance provided for in article 67 of the Law

Society for the Fight Against Cancer –SOLCA-, will be

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 83

transferred by the Ministry of Public Health in a

REFORMING PROVISIONS AND

quarterly and in advance.

REPEALS
CHAPTER 1

The transfer in favor of the different nuclei of
SOLCA is subject to compliance with the policies that

Reforms

for this purpose, the Ministry of Public Health dictates in
relation to comprehensive cancer care, co-payment for

First.- In the current legislation, make the

part of the users and the accountability of the

following reforms:

correct use of these resources based on the regulations that
1. Replace "Superintendency of Banks and Insurance" and

issued by the National Health Authority.

"Superintendent of Banks and Insurance" by
"Superintendency of Banks" and "Superintendent of

The use of resources will be subject to audit and control by

Banks ”, respectively;

part of the Ministry of Public Health and by the agencies
control, within the scope of its powers.

2. Replace "Superintendency of Companies and Securities" and
"Superintendent of Companies and Securities" by

The Society for the Fight Against Cancer –SOLCA-,

"Superintendency of Companies, Securities and Insurance" and

will continue to receive resources at least equivalent to

"Superintendent of Companies, Securities and Insurance",

those that he would have received as a result of the repealed Law of

respectively; Y,

Creation of the Financial Safety Network, subject to
compliance with the provisions of this provision.

3. Replace “Organic Law of Popular and Solidarity Economy
and the Popular and Solidarity Financial Sector "by" Law

This provision will take effect 30 days after the

Organic of Popular and Solidarity Economy ”.

entry into force of this Code.
Second.- In the Civil Code, replace it in article
1611 the text: "The Directory of the Central Bank of Ecuador"

Fifteenth: The State may transfer resources

by “The regulatory body of the monetary and

equivalent to those they would have received as a result of the

financial".

Repealed Law of Creation of the Safety Net
Financial to private law organizations that

Third.- In the Organic Code of Planning and

perform social work. Transfers will be subject to the

Public Finance, carry out the following reforms:

accountability for the use of these resources, on the
basis of the regulations issued for this purpose by the governing body

1. In article 74, replace numeral 22 with

of public finances.

next: “22. Use tools and operations
national and / or international financial markets,

Sixteenth: The Monetary Policy and Regulation Board

in order to optimize the financial management of the State; ”;

and Financiera will use the instruments established in this
Code to promote and facilitate access to credit to

2. In article 75, add the following final paragraph:

person in human mobility, considering their

“For the fulfillment of its duties and attributions, the

circumstances and specificities.

governing body of SINFIP will have coercive jurisdiction, which
it will be exercised in accordance with the law ”;

Seventeenth: Information exchange: The
3. In article 129, first paragraph, delete the following

State institutions, its agencies, agencies, and

text:

persons acting by virtue of a state authority,
they will be able to exchange information without restriction

"The public bank may do so only in favor of

that they have, and that is necessary for the fulfillment of

public companies in which the State has the

his objectives.

majority stake. ”;
Personal information is reserved and you will not lose such

4. After article 130, add the following

condition for exchange with other institutions of the

unnumbered item:

State, to whom said reservation will be transferred.
“Article… .- Pledge of income. Payments for everything
Eighteenth: Structure of the Code. Provisions

debt contract with entities of the Financial Sector

corresponding to the Monetary and Financial System

Public, held by public entities, including

contained in Titles I, II and III of this instrument

public sector companies will be supported

constitute Book 1, the Securities Market Law with

for the pledge of income of all income

its reforms incorporate as Book 2 and the General Law of

of the debtor entity in the Central Bank of Ecuador,

Insurance with its reforms, be incorporated as Book III of the

in accordance with the respective regulations ”;

Organic Monetary and Financial Code.
5. In article 137 modify the title of the article by the
In all cases in which it is provided that a term

next: “Contracts that help to specify

must elapse to perform a certain action or to

internal and external public debt operations

that a certain legal effect is produced, only
they will count the working or useful days.

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84 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

and / or hedges ”, and after the phrase“ repurchase of

with public resources. Except the collection of this contribution

titles issued by the State, ”add the word

exclusively income from loans

"coverage";

internal and external, donations, initial cash balances.
The Central Bank of Ecuador will automatically debit

6. In article 144 second paragraph, after the
text: "stock exchanges" add "and / or platforms of

monthly these resources from the accounts of the

negotiation";

entities named in the preceding paragraph, according to
the settlement that will be issued by the governing body of finance
public.

7. In article 157, first paragraph, replace the text:
"Financial entity of the Non-Financial Public Sector" by

TWENTY-FIFTH: The Unit for the Management and Execution of

"Public Sector body";

Public Law of the AGD-CFN Trust No More
Impunity will have coercive jurisdiction for the

8. In article 158 delete the text “non-financial”;

recovery and collection of the obligations in your favor. The
legal representative of the entity or its delegate will be the judge

9. In article 168 incorporate as second paragraph the
next: “The investment and operation of the assets

coercive, and will exercise coercive jurisdiction subject to

investment funds of the Central Bank of the

to the provisions of the Code of Civil Procedure.

Ecuador, including the International Free Reserve
Administrators, shareholders and representatives

Availability will be made without prior authorization. ”;

legal entities of financial institutions, which have
declared unreal technical assets, altered the figures

10. “Incorporate the following general provisions:

of their balances or charged interest rates on interest,
TWENTY-FIRST: Any contribution made

will guarantee with their personal assets the deposits of the

pending settlement by the State for the payment

financial institution, and the Management and Execution Unit of

of the contribution of 40% of retirement pensions from the

Public Law of the AGD-CFN Trust No More

promulgation of the Constitution of the Republic, with the

Impunity may seize those assets that are of

Ecuadorian Institute of Social Security, which has not been

public

transferred in the foreseen period will be settled by applying to the

administrators, shareholders and legal representatives.

knowledge

from

property

from

these

principal owed the interest rate equal to
weighted average performance of each year of the portfolio

The seizure may be challenged based on the

credit of the Bank of the Ecuadorian Institute of Security

regulations that have been issued or issued for the purpose

Social.

the Management and Execution of Public Law Unit of the
AGD-CFN Trust No More Impunity, after

Values ​that differ from the calculation methodology

which, if the seizure resolution had not been

above will be reviewed and will enter the process of

revoked or extinguished by the entity, the property of the

consolidation and liquidation. For this purpose,

seized assets will be transferred in full right to the

final consolidation minutes.

Ecuadorian State, through the aforementioned entity. In this
case, Property Registrars, Registrars

TWENTY-SECOND: The National Customs Service of the

Mercantile, and any other body or official that

Ecuador (SENAE), will collect and deposit in the Account

keep in charge of the goods transfer register,

Unique to the National Treasury the product of the auction

must register the transfer of ownership of the goods

merchandise of prohibited importation, that are

requested by the Law Management and Execution Unit

definitively seized.

Public Trust AGD-CFN No More Impunity,
being exempt from the payment of taxes, fees,
contributions, fines and expenses.

TWENTY-THIRD.- The resources that are charged for
concept of fines imposed by the courts and
Courts of the Republic, will be charged according to the

The value for the records of the seized assets will be the

technical standard that the governing body of public finances

cadastral in the case of real estate, the value established in the

dictate for the effect and will be transferred to the Single Account

registration in the cases of registered vehicles, or that

of the National Treasury, as part of fiscal resources that

determined by an expert hired for the effect on the

they are part of the General State Budget.

other cases, except for companies. The value of
These assets will be determined according to the date of
seizure.

TWENTY FOUR.- Due to the amendment to article 30
of the Organic Law of the Comptroller General of the State,

The value of the seized companies will be that of the

that eliminates the allocations in favor of the Comptroller's Office

assets declared to the Internal Revenue Service

General of the State, and in order to finance said

with respect to the fiscal year immediately prior to the

institution, they will be obligatorily transferred to the Budget

date of seizure. If this has not been done

General of the State, five per thousand of the income
budgeted

from

the

Governments

Self-employed

statement, the value of the company will be the face value
of their shares or participations.

Decentralized, Public Companies, Social Security,
Public Financial Entities, and in the proportional part

In the cases of seized shares or participations, which

of the legal persons of private law whose capital

do not correspond to the entire capital of the company,

social, patrimony, fund or tax participation this

its value will be that corresponding to the seized percentage

integrated,

based on the aforementioned declared patrimony. "

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Fourth.- In the Tax Code carry out the following

State, within the scope of their respective competences,

reforms:

those who in their supervisory and control actions
they should consider the nature of the venture capital.

1. In article 35, insert the following as numeral 5:
"5. The measures provided in the exclusion process

By executive decree the

and transfer of assets and liabilities, from an entity of the

Institutional framework and necessary operating mechanisms

National Financial System, in accordance with the Code

for the management of venture capital funds. ”;

Organic Monetary and Financial, under any
2. Delete articles 62 and 65;

modality;" and, as numeral 6 the following: “6. The
extraordinary merger process of the entities of the

3. In article 67, replace the following text: “The

National Financial System, in accordance with the Code

body with the competence of promotion and regulation

Organic Monetary and Financial ”, and re-enumerate the

of popular microfinance ”by the following“ La

following numerals. The same exemption will be

Monetary and Financial Policy and Regulation Board ”;

credit unions when they merge

and delete the second paragraph; Y,

other;

4. In article 94, replace the text: “The body

2. In article 43, after the phrase: “tax credit”,

financial sector of the public sector ”by“ The public entity or

add the following “, titles of the Central Bank of the

public property determined by the Policy Board

Ecuador ”and after the phrase:“ active subject ”add“ and the

and Monetary and Financial Regulation ”.

Central bank of Ecuador"; Y,

Sixth.- In the Labor Code, in article 36,

3. In article 220, enter as a final paragraph the

Incorporate as the last paragraph, the following: "Except

next: "The District Court of Contentious

of the solidarity indicated in the preceding paragraph to the

Tax will not be competent to know the

entities that make up the public sector and companies

challenges against credit instruments whose

public. Consequently, no measure may be ordered

content, this is the tax obligation, it was already

prevent or execute any sentence against the

known and resolved in court. "

legal representatives or administrators of the referred
entities or companies. "

Fifth.- In the Code of Production, Commerce and
Investments, carry out the following reforms:

Seventh.- In the Commercial Code as a final paragraph of the
Article 201, include the following text: “The companies of

"1. Replace article 12 by the following: "Art. 12.-

trade may dedicate themselves exclusively to the

Venture Capital.- The State will establish funds of

professional and regular performance of operations

venture capital with the contribution of public resources

factoring and its related operations, in accordance with

to finance the different stages of the process of

the regulations issued for this purpose by the Board of

innovation, from the fields of research and

Monetary and Financial Policy and Regulation. "

knowledgeable, and productive. These funds may, at their
once, establish collective investment funds and

Eighth.- In the Organic Law of the Comptroller General of the

trusts that may be invested inside and outside the

State, replace article 30, by the following: “Art. 30.-

stock market or contribute to existing funds, of

Budget.- The budget of the Comptroller General of the

compliance with the provisions of the Market Law of

State will be financed with:

Values ​and the regulations issued by the Board of
Monetary and Financial Policy and Regulation.

a) With the assignment delivered through the
General Budget of the State; Y

The investments and allocations of said funds
venture capital will be made in projects of

b) Self-management resources. "

specific research, incubation and production,
preferably of an innovative nature, which must

Ninth.- In the Organic Law of the Popular Economy and

be temporary and previously agreed.

Solidaria and the Popular and Solidarity Financial Sector,
carry out the following reforms:

The allocation of resources through the mechanisms
provided for in this article and in the regulations, will require

1. Replace the first subsection of article 45 by the

of the issuance of a feasibility analysis of the project,

next: “The manager is the legal, judicial representative

carried out by natural or legal persons,

and extrajudicial of the cooperative, being free

specialized.

appointment and removal by the Council of
Administration and will be responsible for the management and

The delivery of resources may be made in accordance

comprehensive administration, in accordance with the Law, its

to the provisions of article 104 of the Organic Code

Regulations and bylaws of the cooperative. ”;

of Planning and Public Finance. The fees of the
collective funds may be acquired by both the

2. In article 61, replace the last paragraph with the

public sector as well as the private sector.

following: "The liquidator may or may not be a server of the
Superintendence; if not, there will be no relationship

Control of risk capital fund management
will be in charge of the control bodies of the

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86 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

any labor dependency with the cooperative or with the

Tenth.- In the Organic Law of Regulation and Control of

Superintendency, and it will be of free removal, without right

Market Power, carry out the following reforms:

to any compensation.
1. In article 53, add the following final paragraph:
The liquidator in no case will be jointly and severally liable for

"In the case of entities of the Financial System

the obligations of the entity in the process of liquidation. ”;

National, from the beginning of the
investigation must have the Superintendency

3. In article 79, replace “the Central Bank of the

of Banks and the Superintendency of Popular Economy

Ecuador ”by“ the Board of Policy and Regulation

and Solidaria, in their areas. ”; Y,

Monetary and Financial ”;
2. In article 56, add the following final paragraph:
4. Replace article 95 by the following: “Article 95.-

"When the investigation refers to entities of the

Stealth and Reserve. The secrecy and reservation of deposits and

National Financial System, it must compulsorily

the deposits of the Sector's organizations

have the Superintendency of Banks and the

Financiero Popular y Solidario, will be governed by the

Superintendency of Popular and Solidarity Economy, in

provisions of the Organic Monetary Code and

their areas. ”.

Financial.";
Eleventh.- In the Organic Law of the National System

5. In article 140, replace the text: “the Bank grants

of Public Procurement, article 2 after the

Ecuadorian Housing and "for" grant the ";

numeral 9, insert another numeral of the following tenor: “10.
The contracting required by the Central Bank of the

6. In article 142, first paragraph, eliminate the two

Ecuador provided for in article 37 of the Organic Code

references that say: “and the Popular Financial Sector

Monetary and Financial. "

and Solidario ”;

Twelfth.- In the Organic Law Repealing the Law

7. Following the second paragraph of article 144
add: "For these purposes the aforementioned Ministry,

Credit Information Bureau, delete the articles

will have a Technical Secretariat, which also

4, 5, 6 and 7, and replace the First Transitory Provision

will exercise the powers granted in the Law of

by the following:

Popular and Solidarity Economy and its Regulations
"FIRST.- The Board of Policy and Monetary Regulation and

General."; also replace the third and fourth paragraphs

Financial will determine the date from which it will enter

of article 144, by the following: "The regulation of the

in full operation the Credit Data Registry to

Popular and Solidarity Financial Sector will be in charge of

position of the National Directorate of Data Registration

the Board of Monetary Policy and Regulation and

Public. The Credit Information Bureaus will continue

Financial, created in the Organic Monetary Code and

providing its services in accordance with the regulations

Financial";

established by the National Data Registry Directorate
Public and the Superintendency of Banks up to 90 days

8. In article 158, first paragraph, replace the text:
"As a body of public law, endowed" by the

after the entry into force of the Data Record

next: “as a financial institution of law

Credit. "

public, gifted ”; after the first paragraph,
Thirteenth.- In the Organic Law of Companies

add another of the following tenor: “The Corporation

Public, carry out the following reforms:

will have the power to act as Trustee. ”;

1. In article 38, add the following final paragraph: “The

9. In article 159, second paragraph, replace the text

operations carried out by public institutions or

which says: "may the Superintendency dictate", by the

public companies, either in the country or abroad, to

next: “provided in the Organic Monetary Code

through the Central Bank of Ecuador, as agent

and Financial, and in the regulations issued by the Board

financial state, are not commercial in nature

of Policy and Monetary and Financial Regulation ”;

but public. ”; Y,
10. In article 168, substitute literal d) for
2. In article 42, incorporate as second paragraph the

following; “Buy property owned by

next: “Public companies dedicated to

administrators, officers or employees of the

exploration, exploitation or commercialization of resources

entity or persons acting on its behalf and in its

non-renewable natural resources, or transportation and refining

representation and establish agreements, conventions or

of hydrocarbons, may issue certificates of

contracts with natural or legal persons, outside the

credit content, whose issuance amount will be in

organization, which allows them to participate directly or

function of the projection of future derived income

indirectly from the benefits derived from

of the activity of the public company. Your registration in

promotion, promotion and incentive measures that

the stock market cadastre will be subject to

granted this Law; ”; Y,

provided in article 21 of the Law on the Market of
Values.".

11. Delete articles 81, 82, 83, 84, 85, 86, 87, 88,
89, 90, 91, 92, 93, 94, 96, 97, 98, 99, 100, 101, 102,
103, 104, 105, 109, 110, 111, 112, 113, 114, 115, 116,

Fourteenth.- In the Organic Law of Defense of the

117, 118, 119 and 120.

Consumer, article 47, incorporate as a final paragraph the
next: “The fees charged by the institutions

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 87

financial or any other natural or legal person by

a) Insurance, will be USD 8,000,000 (eight million

all activities and services inherent to collection

dollars of the United States of America).

judicial or extrajudicial of an expired loan, they must be
previously agreed with the borrower at the time of

b) Reinsurance will be thirteen million dollars

granting of credit. The fees for judicial collection

the United States of America (USD $ 13,000,000,

or extrajudicial may not annually exceed the percentage

00). In the case of companies operating in

determined by the Monetary Policy and Regulation Board

insurance and reinsurance, the capital will be thirteen million

and Financial, which will be calculated on the remaining value of the

United States dollars (USD $ 13

original capital of the loan, taking into account criteria of

'000,000.00);

market, amounts, rates, segments, terms, among others. "
The paid capital must be contributed in money.
Fifteenth.- Eliminate the following pre- assignments
in the Special Telecommunications Law and in the Law of

The Board of Policy and Monetary Regulation and

Civil Aviation:

Financial, at any time, may increase
minimum capital requirements. ";

1. In the Special Telecommunications Law, replace
Article 37 by the following: "Article 37.- The

5. Incorporate after article 14 another

resources from the application of rates and fees

unnumbered of the following tenor:

by the use of radio frequencies, as well as the
resources of the funds that have been created by virtue of

"Art ... .- The paid-in capital may not be reduced to one

of laws and regulations, will be deposited in the Account

amount less than the legal minimum and will be increased by

Unique to the National Treasury. "

decision of the general meeting of shareholders or by disposition
of the Superintendent of Companies, Securities and Insurance.

2. In the Civil Aviation Law, replace article 31
by the following: "Art. 31.- Five percent (5%) on

The resources to increase the paid-in capital will come

the value of each gallon of fuel and lubricants

exclusively from:

aviation that are sold in the country for the use of
All aircraft in international commercial service will be

a) Contributions in money that cannot come from loans

deposited in the Single Account of the National Treasury ”.

or other type of direct or indirect financing that
have been granted by the company itself;

Sixteenth.- In the General Insurance Law, make
the following reforms:

b) Of the excess of the legal reserve;
1. In the entire text of the law replace "Superintendency of
c) Of accumulated profits; Y,

Banks and Insurance '' by "Superintendency of
Companies, Securities and Insurance "and" Superintendent of

d) Of the capitalization of reserve accounts, provided that

Banks and Insurance "by" Superintendent of

were intended for this purpose.

Companies, Securities and Insurance ";

The Superintendency of Companies, Securities and Insurance

2. In articles 52 replace "Banking Board" by "Board

will verify the legality of the payment of said capital, its

of Policy and Monetary and Financial Regulation ";

source and application of funds and to establish what
3. Replace article 67 with the following: "The funds for

otherwise, said capital increase will not subsist. "

meet the expenses of the control body of the area of
6. Replace article 22 by the following:

private insurance and contributions to the Insurance Fund
Private will be obtained from the 3.5% contribution

"Art. 22.- Insurance and reinsurance companies must

on the value of net direct insurance premiums,

maintain, at all times, the solvency requirements

which may be increased up to 5%, by resolution

general or by branches regulated by the Policy Board and

of the Board of Policy and Monetary Regulation and

Monetary and Financial Regulation, considering the

Financial and at the request of the head of this body of

following:

control, in accordance with the powers constant in the law
for the approval of the budget of the

a) Regime of technical reserves;

control. Insurance companies will act as
withholding agents for this contribution.

b) Risk management system;

4. Replace article 14 by the following:

c) Technical heritage; Y,

"Art. 14.- The minimum legal paid capital for the

d) Mandatory investments.

constitution of the companies that make up the
insurance system will be as follows:

Solvency requirements will be reviewed by the
Monetary and Financial Policy and Regulation Board.

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88 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

The Monetary and Financial Policy and Regulation Board

Board will define the maximum percentages of the others

will issue the regulations that are necessary to apply the

investments. ";

solvency regime provided for in this article; being able
8. Delete article 24;

determine the terms, conditions, measures and actions that
are necessary for your application; with the purpose of

9. Replace article 25 with the following:

avoid or mitigate risk exposure of investment companies
insurance and reinsurance companies for the benefit of

"Art. 25.- The Superintendency of Companies, Securities and

insured.

Insurance will determine the clauses that must be
They will contain the policies, as well as the prohibited clauses,

Insurance companies and reinsurance companies,

which will lack effects and will be considered unwritten

must constitute technical reserves for risks in

if it exists. Premium rates and technical notes

course, mathematical reserves, catastrophic reserves,

They will require prior authorization from the Superintendency.

reserves for pending obligations and reserves for

Copies of the policies, rates and notes will be forwarded to the

loss deviation; defined by the regulations that

Superintendency, at least thirty days before its

issued by the Board, who will determine its methodology.

use, for verification, control and sanction purposes.

Technical reserves must cover all of the

Policies must be subject to at least the following

risks assumed by insurance companies and

terms:

reinsurance companies.

a) Respond to standards of equality and equity among

The Board may create other types of technical reserves and / or

contracting parts;

modify existing ones and their calculation formula based on
of the dynamics of the development of the insurance business.

b) Stick its content to the legislation on the contract of
constant insurance in the Commercial Code, the Decree

The technical heritage regime includes the

Supreme No. 1147, published in the Official Gazette No.

determination of the minimum technical heritage required, the

123 of December 7, 1963 to this Law and to the

which is established based on a capital level

other provisions that may be applicable;

suitable intended to protect insurance companies
and reinsurance companies against the effects generated

c) Be clearly written, so that

due to deviation in the frequency and severity of the risk of

is easily understood by the insured;

subscription, as well as any other risk and especially
the credit risk derived from the operations of

d) The typographic characters must be easily legible;

reinsurance.
e) List the basic coverage and exclusions with
The requirements of the technical heritage regime

prominent characters in the policy;

established in this chapter, they must be complied with
in addition to the provisions relating to capital

f) Include the list of basic documents necessary for

minimum established by law, and other regulations

claiming a claim;

issued by the Monetary Policy and Regulation Board and
g) Include a clause stating the option of the

Financial about it.

parties to submit to arbitration decision or mediation the
Any insurance company and reinsurance company

differences arising from the contract or insurance policy

must establish efficient and effective schemes of

insurance; Y,

management and control of technical risks, market,
liquidity, credit and operations ”;

h) Indicate the currency in which the premiums will be paid and
sinister. The price at the sale value of the currency

7. Replace article 23 by the following:

foreign will be those in force on the effective date of payment
of premiums and indemnities.

"Art. 23.- Insurance companies and insurance companies
reinsurance companies must invest their technical reserves, at least

When the general conditions of the policies or their

sixty percent (60%) of the paid capital and the reserve

special clauses differ from the standards established in

legal, in securities of the stock market, funds of

the legislation on the insurance contract, shall prevail

investment, financial instruments and real estate, in the

the latter over those.

segments and percentages defined by the Policy Board and
Monetary and Financial Regulation, through

Premium rates will be subject to the following

general character, seeking an adequate combination of

beginning:

risks, liquidity, security and profitability. It is forbidden to
insurance companies and reinsurance companies

1. Be the result of the use of information

trade shares or convertible bonds with

statistics that meets the requirements of homogeneity and

institutions of the Financial System.

representativeness; or,

In no case investments in financial instruments
issued by institutions of the financial system may
exceed 10% of the total investment instruments; the

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2. Be the result of the support of reinsurers of

adequacy and sufficiency of the amounts contained in the

recognized technical and financial solvency.

financial reports, or on the methodology, or on the
assumptions assumed for these.

In every insurance contract, the
norms of the Organic Law of Consumer Defense. I know

The Superintendency of Companies, Securities and Insurance,

will have as unwritten any clause that opposes the

Regarding the actuarial studies carried out, it will have

laws, to the detriment of the insured, or the prohibitions that

full verification powers and will demand the requirements

determined by the Superintendency in accordance with the first paragraph

minimums that technical reports must meet. ";

of this article. "
14. Replace article 40 by the following:
10. Incorporate after article 27 the following

"Art. 40.- The fines imposed by the Superintendency of

unnumbered item:

Companies, Securities and Insurance, in no case, will be
less than thirty (30) unified basic salaries, nor

"Art ... .- The Board of Policy and Monetary Regulation and

greater than 5% of the sales reported by the entity

Financiera will issue the corresponding regulations for the

offending party, with the exception of those imposed on

contracting reinsurance, having to define the conditions

employees or officials, which may not be less than

and maximum percentages of assignment of insurance and reinsurance

three unified basic wages of the worker in general.

by branch, depending on the characteristics of the risks
covered, the profile of the portfolios, the loss ratio of the

The sanctions will be graduated according to the severity of the

itself and other necessary technical factors. In addition, you can

fault, damages caused to third parties, negligence,

define the cases in which it is not necessary to contract

intentionality, recidivism or any other circumstance

reinsurance. ”;

aggravating or mitigating.

11. Add after article 31 another

The imposition of the sanctions provided in this Law, is
independent of any other sanction that could be

unnumbered of the following tenor:

apply for acts that violate other provisions and not
"Art ... .- Insurance, reinsurance, advisory companies

limit the application of civil or criminal penalties that

insurance producers, risk inspectors, adjusters

correspond in accordance with the law.

claims and reinsurance intermediaries will have control
In no case can a person be sanctioned

in charge of an auditor qualified by the

administratively two (2) times by the same entity, by the

Superintendency of Companies, Securities and Insurance.

same cause, without prejudice to the criminal actions that
were relevant.

The internal auditor will present his control reports to the
company and the Superintendency of Companies, Securities and

The fines imposed on the company, its representative

Insurance, in accordance with the control standards issued

legal,

said organism.

administrators,

directors,

employees

officials, will be made effective through titles that may
be collected through coercive jurisdiction or by any

Natural persons who provide their services as

another way." ; Y ,

insurance producers advisers, risk inspectors,
claims adjusters and insurance intermediaries

15. Replace article 42 by the following:

must carry out its activity under criteria of seriousness,
truthfulness, efficiency and effectiveness ";

"Art. 42.- Insurance and reinsurance companies have the
obligation to pay the insurance contracted or the part

12. Replace the first paragraph of article 32 by the

corresponding to the duly proven loss,

following:

as the case may be, within a period of thirty (30) days
following the filing of the claim by the

"Insurance and reinsurance companies are obliged to

insured or beneficiary, accompanying the documents

hire external auditors as well as rating firms

determined in the policy.

of risk that must be legal persons which are
will be subject to the qualification and reporting standards

Insurance and reinsurance companies may object for

issued by the Superintendency of Companies, Securities and

written and motivated, within the term before

Insurance. '', ·

mentioned the total or partial payment of the claim, however
whether the insured or the beneficiary acquiesce to the objections
insurance company, it will immediately pay the

13. Add another article 33 below

agreed compensation.

unnumbered of the following tenor:

If the insured or beneficiary does not agree to the objections

"Art ....- Insurance and reinsurance companies must

may file a claim with the Superintendency of

have actuarial services, which may be

Companies, Securities and Insurance, so that it requires

provided by natural or legal persons,

the insurer that justifies your refusal to pay. Within

rated by the Superintendency of Companies, Securities

within 30 days of filing the claim, and

and Insurance, in order to generate the technical notes of the

completed the documents that

products offered and comment on the

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90 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

support it, the control body will decide

16. Replace the title of Chapter XI with the following. "From

administratively the controversy, accepting totally or

regularization and intervention ";

partially the claim and ordering the payment of the claim
17. Add the following unnumbered article to

within 10 days of notification of the resolution, or

continuation of article 53:

denying it.
The resolution may be challenged at the administrative headquarters

"Art.… .- The Superintendent may order the intervention

in accordance with article 70 of this Law.

of the companies subject to its control and surveillance according to this
Law, in accordance with the rules of section XI and related of

Failure to comply with the ordered payment will be grounds for

the Companies Law. "

forced liquidation of the insurance company. The
18. As the last paragraph of article 60, include the

filing of actions or judicial resources not

following:

will suspend the effects of the resolution that orders the payment.
In court, the insured whose claim has been

"As of settlement, they are considered past due and

denied may sue the insurer in court

active operations with people are required

Ordinary or resort to alternative procedures of

linked to the entity, without the need for a requirement. On

dispute resolution stipulated in the contract

case of non-payment, the liquidator will collect the obligation

insurance. The insurer, for its part, may demand the

through coercion, being able to be subject to the principles and

revocation or annulment of the resolution that obliged the

Procedures of the Law for the Defense of Rights

payment of compensation, in contentious jurisdiction

Labor.

administrative, only when you have honored the
obligation to pay. In case of revocation or

In relation to related liability operations, they will not be

annulled the resolution, to obtain the restitution of the

payable but after all others have been paid

compensation

paid,

the

insurance carrier

shall

creditors determined in article 62. It will be ineffective

necessarily also sue the insured or

any administrative or judicial decision that violates this

beneficiary who has collected it, who will intervene as

beginning."

party to the trial.
19. Add as the last paragraph in article 64 the
The presentation of the claim that regulates this article

following:

suspends the prescription of the action that the
the insured or the beneficiary against the insurer, until the

"In order to conclude the liquidation processes, the

notification of the resolution to the insurer.

Superintendent in accordance with the regulations issued by the
The Board may authorize or provide that the assets and liabilities

All claims of insured against insurers are

of entities that are in liquidation, be they

They will be subject to the preceding norms. It is not applicable to them, in

temporarily or irrevocably contributed to a trust of

Consequently, the procedure regulated by the Law

so that the

Organic Consumer Defense.

assets and liabilities from such entities, with the
commission to comply with the payment of obligations in the

Additionally, in the case of insurance policies of faithful

as assets are realized. The Superintendency

fulfillment of the contract and good use of the advance that is

will continue to exercise coercive jurisdiction on behalf of the

contract for the benefit of the entities provided for in the

trust, so that what is collected is delivered

Article 1 of the Organic Law of the National System of

to comply with those obligations. ";

Public Procurement, insurance companies must
issue them complying with the requirement that they be
unconditional, irrevocable and immediately collectible, therefore

20. Add as an unnumbered item after the
65, the following:

who have the obligation to pay the value of the insurance
contracted, within a period of ten (10) days following the

"Art ....- The legal or conventional representatives,

written request in which the insured or the beneficiary

board members, administrators, and shareholders with

require execution.

12% or more equity participation, or who exercise
significant influence on management, will be

Insurance companies are prohibited in the case

personally and financially responsible for the deficit that

of the aforementioned policies drawn for the benefit of the

determined to cover the liabilities of the entity in

entities provided for in article 1 of the Organic Law of the

settlement. For the collection of this obligation, the

National Public Procurement System, require the

The Superintendent may do so by means of coercion, prior

insured for the payment of the guarantee, documentation

duly motivated resolution whose challenge is not

additional or compliance with any administrative procedure,

suspend the collection order. "

other than that provided for in said law and its regulations.
Any clause to the contrary will be understood as no

21. Replace article 70 by the following:

written.
"Art. 70.- Of the resolutions issued by the body
Failure to comply with these provisions will result in,
also, to the forced liquidation of the company of

competent authority of the Superintendency of Companies, Securities
and Insurance, in the field regulated by this Law, may
file an appeal with the Superintendent,

insurance '';

within ten (10) days

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 91

from the date of notification of the resolution. The decision

Seventeenth.- In the Securities Market Law

that the Superintendent adopts will cause status, without prejudice

carry out the following reforms:

of contentious-administrative actions, and of what
1. Substitute throughout the text of the Law "Market Registry

stipulated in article 42 of this law. No appeal
any respect to what was resolved by the Superintendent of

of Securities ”by“ Public Registry of the

Companies, Securities and Insurance, or in the event that your

Values";

statement has been issued in the first instance
2. Substitute throughout the text of the Law “Board of Regulation

administrative.

of the Stock Market ”by“ Board of Policy and
Monetary and Financial Regulation ”;

Extraordinarily, by review, the Superintendent
of Companies, Securities and Insurance may revoke or reform
any administrative act, whether ex officio or on the occasion of
the presentation of the respective appeal, within the period of
one year, which will be counted from the notification of said
act.

3. Substitute throughout the text of the Law “Superintendency of
Companies and Securities ”by“ Superintendency of
Companies, Securities and Insurance ”;
4. Substitute throughout the text of the Law “Superintendent of
Companies and Securities ”by“ Superintendent of

The review will only take place if the administrative act

Companies, Securities and Insurance ”;

contested had been issued with obvious error of
fact or law that appears from the documents that

5. In article 2, replace the last paragraph with the

appear in the file or legal provisions

following: "Any limitation to free negotiation and

you express; or, when, later, they appear

circulation of securities not established by law, will not

documents of transcendental value ignored when issued

legal effects and will be considered unwritten. For the

the act or resolution in question. ".

negotiation and circulation of the securities issued by
public sector entities and institutions should

22. Replace article 62 by the following:

observe as applicable what is established in the
Organic Code of Planning and Public Finance. ”;

"Art. 62.- In any settlement, payments will be subject to the
6. In article 4, delete the third paragraph;

following order of preference:

7. Delete articles 5, 6, 7 and 8;

1. Debts arising from maturities, claims and
salvage values ​in the life line, in accordance with

8. In article 9 carry out the following reforms:

with the respective policies and court costs;
1. In numeral 12, replace the text “the regulation”
2. Obligations for claims in general lines are

by "standards"; Y,

will consider privileged over all credits and
common obligations. This priority does not affect

2. Eliminate numeral 9.

pledge creditors' rights over the assets
bent on. The Superintendent of Companies,
Seguros y Valores will apply the provisions that
In this regard, it contains the Code of Civil Procedure;

9. In article 11, replace the fourth paragraph with the
following: “The securities that are issued to submit them to
a public offering process must be
dematerialized. The securities issued by the
Public sector entities may be physical if

3. The amounts owed to workers for
wages, salaries, severance pay, reserve funds and
retirement pensions charged to the employer, up to
the amount of the settlements practiced in the
terms of the Labor Code, and the obligations to
with the Ecuadorian Institute of Social Security
derived from labor relations;

have the authorization of the Board of Regulation
Monetary and Financial. ”;
10. In article 21, incorporate the following subsection: “It is
except from the inscription detailed in the article
above the Securities of the Central Bank of Ecuador
TBC. ";

4. The amounts paid by the Insurance Corporation of

11. In article 57 delete the following; "And, in the

Deposits, Liquidity Fund and Insurance Fund

OTC market to general rules

Private; Y,

issued by the CNV "

5. Taxes and contributions.

12. In article 58, numeral 1, replace: “in the
stock and over-the-counter markets "by" in the market

Then the other credits will be taken care of in accordance with the

stock market ”;

order and form determined in the Civil Code, insofar as
13. In article 59, numeral 3, delete the following:

relevant.

"Except in the cases provided for in number 5, of the
The Superintendent of Companies, Securities and Insurance

Article 58 of this legal body or when they are carried out

may order partial payments, according to funds

through the mechanisms established in this Law "

available to the liquidation. "

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92 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

14. In the third unnumbered article “Constitution of the

and the Superintendency of Companies, Securities and

guarantee ”of Chapter II“ Of compensation and

Insurance, within the scope of its competences

liquidation ”added after article 73 of

determined in the Organic Monetary Code and

the Securities Market Law, delete the fourth

Financial, may authorize the Bank to exercise

subsection.

additional activities to those provided in this
Article."

15. In article 76, carry out the following reforms:
1. In literal b) delete the

following:

4. Replace article 8 by the following: “Article 8.- Of

"Exclusively for this type of

funds, the

directorio.- The Board of the Bank of the Institute

administrator may act as

issuer of

Ecuadorian Social Security, will be made up
by four (4) members: as permanent delegate

securitization processes. "

of the President of the Republic shall be the President of the
Board of Directors of the Ecuadorian Institute of

16. In article 79, literal a) after “merits
collective "include", quoted "; and, in literal b) a

Social Security who will preside over it and will have a vote

continuation of "collective funds" include "or of

diriment, the head of the Secretary of State in charge

traded funds ”;

of the economic policy or its delegate, one (1) delegate
of the active affiliates and one (1) delegate of the

17. In article 115, replace the last paragraph with the

retirees or their substitutes; these last two chosen

following: "For the fulfillment of its purpose, the

by public competition of opposition and merits with the

autonomous equity may obtain financing from

direction and oversight of the Participation Council

institutions of the financial system, by issuing

Citizen and Social Control, who will last 4 years in

of values ​established in this law, and through other

their functions from the date of their possession.

mechanisms that the Board regulates. ”; Y,
The main members, delegates and alternates will be

18. In article 197, delete the last paragraph.

qualified prior to their possession by the
Eighteenth.- In the Social Security Law, make

Superintendency of Banks. "

the following reforms:
5. In article 10 numeral 2, replace
1. Replace article 82 by the following: “Art. 82.-

"Superintendency of Banks and Insurance" by

RETENTION OF CREDITS OF THE IESS and BIESS.-The

"Superintendency of Banks"; and, in numeral 4

credits in favor of the Ecuadorian Security Institute

replace "Superintendency of Banks and Insurance"

Social and of the Bank of the Ecuadorian Institute of

by “Board of Policy and Monetary Regulation and

Social Security, including interest on arrears and

Financial ”;

fines, will be collected through withholdings of the
wages and salaries of the affiliates. At the request of
the respective institutions, employers and officials
payers are obliged to carry out the

6. In article 12, replace numerals 1, 4 and 7 with
the following: “1. Those established in the Code
Organic Monetary and Financial Law and in the Law of

corresponding withholdings under your responsibility
personal.";

Stock Market "," 4. Apply to the Policy Board
and Monetary and Financial Regulation, Superintendency
of Banks and the Superintendency of Companies,

2. Replace the last paragraph of article 306, by the
following: The Superintendency of Banks, according to
Article 213 of the Constitution, will control that the
economic activities and services provided by the
public and private social security institutions,
including supplementary pension funds

Securities and Insurance, the corresponding authorization for
implement new operations "," 7. Name and
remove the General Manager and the internal auditor. ”; in the
numerals 8 and 19 replace “Superintendency of
Banks and Insurance ”by“ Superintendency of Banks ”;
and, in numeral 18, delete: “or when it is

public or private, serve the general interest and
subject to current legal regulations. "
Nineteenth.- In the Law of the Bank of the Institute

require; ”;

7. In article 14, incorporate as second paragraph what

Ecuadorian Social Security, make the following

following: “The members of the board of directors will act

reforms:

only in the sessions to which they are
summoned and will participate in the committees that

1. Replace in the law "Banking Board" by "Policy Board

regulations are required. "

and Monetary and Financial Regulation ”;
8. Replace article 15 by the following: “Article 15.2. In articles 5, 19, 20 and fourth general provision

General Manager of the Bank.- The General Manager of the

replace "Superintendency of Banks and Insurance"

Bank will be appointed by the Board of Directors, The period, the

by "Superintendency of Banks".

powers, duties and functions will be established in
the Bank's Statute. The General Manager will act with

3. Replace the penultimate subsection of Article 4 with the

voice without vote in the Board of Directors. Before entering

next: "The Board of Monetary Policy and Regulation

functions, must be qualified by the Superintendency

and Finance, the Superintendency of Banks

of Banks. "

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9. Replace article 18 by the following: “Article 18.-

distribution of goods and services, solely for

Control.- The Bank will be subject to the control and

effects of the calculation of the advance in this activity,

supervision of the Superintendency of Banks and the

will consider as taxable income exclusively the

Superintendency of Companies, Securities and Insurance, of

value of commissions or similar received

according to the nature of the detailed activities

directly, or through discounts or margins

in article 4 of this Law. "

established by third parties; and as costs and expenses
deductible, those other than the cost of the goods or

10. Replace the second general provision by the

services offered. For the rest of the operations of

next: "SECOND.- The resources of the funds

these taxpayers, the totality of

public pension of the Ecuadorian Institute of

taxable income and deductible costs and expenses,

Social Security will be transferred to the Bank, in the form and

from these other operations. In exercise

with the periodicity established by the Policy Board and

of its powers, the Tax Administration will verify

Monetary and Financial Regulation, in the rules that

the effective compliance with this provision. "

will issue for the effect. "
5. In article 55, replace numeral 16 with
Twenty.- In the Codification of the Regime Law

next: “The gold acquired by the Central Bank of the

Internal Tax, carry out the following reforms:

Ecuador directly or through agents
public and private economic, duly

1. In numeral 3 of article 10 after the phrase “credit

authorized by the Bank itself. "

tax "add", nor the penalties established by
law";

6. Replace the last paragraph of article 44 of the Law
Organic of Internal Tax Regime by the following:

2. In numeral 9 of article 10 add the following
final paragraph: "In the case of administrators of the

"When it comes to interests of any kind

entities of the national financial system, will only be

financial returns, generated by operations of

deductible salaries and social benefits

mutual and, in general, all kinds of placements of

established by law. "

money, made by people other than banks or
other financial intermediaries, subject to the control of the

3. In numeral 11 of article 10, replace the following
text:

Superintendency of Banks, the paying entity
will make the withholding on the amount paid or
credited into account. Interest and income

“Provisions will be deductible up to the amount

finances paid to banks and other entities

that the Banking Board, for the Financial Sector or the

subject to the supervision of the Superintendencies of

Regulation Board of the Popular Financial Sector and

Banks and the Popular and Solidarity Economy, will be

Solidario, for the Popular and Solidarity Financial Sector,

subject to withholding tax, in the percentages already

set it.

through the mechanisms established by the Service of
Internal Income by resolution. ”.

If the Banking Board or the Sector Regulation Board
Financiero Popular and Solidario, in their respective

Twenty-first.- In the Law of Creation of the Service of

sectors, establish that provisions have been

Internal Revenue, delete article 19.

excessive, may order the reversal of the surplus;
this surplus will not be deductible ”, by the following:

Twenty-second.- In the Companies Law, make

“Provisions will be deductible up to the amount

the following reforms:

that the Board of Monetary Policy and Regulation and
a) In article 371, delete the first paragraph; Y,

Financial establish. ”;

b) Delete article 454.

4. In article 41, numeral 2, make the following
reforms:

Twenty-third.- In the Hydrocarbons Law, article 54,

a) In literal b) replace the fifth subsection with the
next: “Companies, undivided successions
obliged to keep accounts and natural persons
obliged to keep accounts that obtain income
agricultural activities or development of
real estate projects for housing of interest
social, will not consider in the calculation of the advance,
exclusively in the asset category, the value of the assets
land on which these activities are carried out. ”;
Y,

delete the following sentence: “designed to promote the
research, development and scientific services and
technology in the field of hydrocarbons and, in general
of Mining, by the Ministry of the Industry. "
Twenty-fourth.- In the Mining Law, make the
following reforms:
a) Replace article 49 by the following: “Art. 49.Right of free commercialization.- The holders of
Mining concessions can freely trade
its production inside or outside the country. However, in

b) Replace literal j) by the following: "The companies,
as well as undivided estates and persons

the case of gold from small-scale mining and
artisanal mining, the Central Bank of Ecuador

natural, obliged to keep accounts, whose
income is obtained under the form of commissions
or similar, for the commercialization or

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94 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

will carry out its commercialization directly or by

forest and fauna and flora use,

intermediary of public and private economic agents

industrialization, commercialization and others, according

previously authorized by the Bank.

to the provisions of this Law. What exceeds
financing of forestry programs

The Board of Policy and Monetary Regulation and

will enter the Single Account of the National Treasury;

Financial through regulation will establish the right
Preferential purchase of gold by the Bank

c) Income from fines, forfeitures, or

Central del Ecuador to public economic agents

compensation for infractions of this Law;

and private authorized by the Bank. ”; Y,
d) The proceeds from the sale of plants and material
b) Replace article 149 by the following: “Art. 149.-

vegetative from nurseries, as well as from

Gold purchases.- Gold purchases made by the

other forest products, harvested or

Central Bank of Ecuador directly or

industrialized by the Ministry of the Environment;

indirect, as well as purchases made by agents
e) National or international loans

public and private economic

intended for forestry development;

duly authorized by the Bank itself, will be
taxed with zero rate value added tax. "

f) Voluntary contributions from
any source, bequests and donations;

Twenty-fifth.- In the Law of the National System of
Public Data Registry, article 34, delete the literal

g) The resources obtained by the concession of

c) and add the following General Provision:
“FOURTH: The tariffs generated and collected by

patents for tourist operation in parks

Mercantile Registries at the national level, will be deposited in the

national and other similar permits;

Single Account of the National Treasury ”.
h) The proceeds from the sale of hunting licenses,
collection and marketing of wildlife;

Twenty-sixth.- In the Law of Modernization of the State,
Privatizations and Provision of Public Services by

i) The rights of entry of visitors to the areas

of the Private Initiative, delete article 39.

protected natural;
Twenty-seventh.- In the Law for Transformation
Económica del Ecuador (Trolley I) abolish the following

j) Resources from internal loans and
external;

chapters: I, II, III, IV, X, XI, XIII and XIV, article 99 literal b),
c), d), e), f) and j).

k) Bequests, donations and voluntary contributions
in favor of the Institute, as well as the funds generated

Twenty-eighth.- In the Law for the Promotion of

for the negotiation of the foreign debt in favor of

Investment and Citizen Participation (Trole II) deroguense

conservation of natural resources; Y,

the following titles: 2, 4, 14, 15, 16, 17, 18, 19, 20, 21, 25,
26, 27, 28, 29 and 31.

l) Other resources generated by the application of this
Law.";

Twenty-ninth.- In the Tourism Law, replace the
literal e of article 40 by the following:

3. Delete article 77; Y,

“E) A fee for the issuance of each air ticket for

4. Replace article 97 by the following: “ Art. 97.-The

travel from Ecuador to any place in the
Foreign. The value of this rate, its regulation and its
segmentation will be set by the National Authority of
Tourism."

seized forest products will be sold by the
own sanctioning authority immediately after
issued the first instance resolution, under its
personal responsibility. The value of the sale of the

Thirtieth.- In the Forest Law of Conservation of Areas
Natural and Wildlife, do the following

confiscation will be deposited in the Unique Account of the
National Treasure. The means of transport used for
these purposes, it will be retained until the end of the

reforms:

administrative or judicial procedure on the product
forest."

1. Delete the second paragraph of article 1;

Thirty-first.- In the Law of Substances

2. Replace article 76 by the following:

Narcotic and Psychotropic drugs, carry out the following
"Article 76.- For the financing of the programs

reforms:

forestry in charge of the Ministry of the Environment,
will have the following resources:

1. Delete paragraph 3 of article 9; Y,

a) The allocation of resources that will appear in the

2. Replace article 10 by the following: “Article 10.Destination of the fines.- The resources that are collected

General Budget of the State;

for the fines imposed for infractions to
b) The resources collected for the concept of
award of land, forests, contracts for

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 95

this Law, will be deposited monthly at the
Single Account of the National Treasury. "

2) Add the following provision after the sixth paragraph
of article 14 of the Organic Law for the Closing of the
1999 Banking Crisis:

Thirty-second.- In the Law of Prevention, Detection and
Eradication of the Crime of Money Laundering and

"For debtors who have availed themselves of the recalculation and

Financing of Crimes, carry out the following

that have two or more operations, at the request of the

reforms:

debtor, the remainder of a debt may be applied,
understood as the value of the payments made

1. Delete literal f) of article 6; Y,

minus the initial capital of the same debt, such as
payment of the principal of other debt that the debtor maintains

2. Incorporate as an eighth general provision the
following:

with any defunct financial institution. I dont know
will consider as payments made those from

"EIGHTH.- The resources that are collected by the
Fines imposed for infractions of this Law, will be
deposited in the Single Account of the National Treasury. ”.

of credits granted by financial institutions
extinct to pay dividends on other debts and that
they were not redeemed by debtors. This provision
will also apply to the rediscounted portfolio with the
National Finance Corporation. The ECB and the CFN

Thirty-third.- In the Law of Creation and

will make the corresponding compensations and

Operation of the Ecuadorian Training Service
SECAP Professional, article 14, delete literal a) and
b).
Thirty-fourth.- In the Special Law of the Sector
Coffee grower, in article 8, delete literal a).

will communicate to the control body for the purposes that
establishes the Law.
The provisions of the preceding paragraph shall apply only to
those debtors for whom the total sum of the
initial capital of its operations is a maximum of one hundred
fifty thousand dollars. "

Thirty-fifth.- Replace article 4 of the Law on
Free Maternity and Child Care by the
following article: “Art.- 4 The necessary resources for the
application of this Law, must be delivered by the
State charged to the General State Budget and not
will be less than those assigned in the immediately preceding year
to the effective date of this law, plus an estimated increase in
function of the increase in the coverage of the projected service.
The competent ministry, in accordance with the law, will present

3) Add the following subsection to the end of article 14 of the
Organic Law for the Closure of the Banking Crisis of
1999:
"Commercial leasing operations
entered into with defunct financial institutions
will receive the benefits set out below:
a) If due to lack of payment, the asset was returned to the

the corresponding budget planning ”.

liquidated financial institution or the Corporation
Financiera Nacional, the obligation will be extinguished.

Thirty-sixth.- In the Organic Law for the closing of the
Banking Crisis of 1999 carry out the following reforms:

b) If the good is within the goods
transferred to the Central Bank of Ecuador and the

1) Add the following provision after the fifth paragraph

debtor has paid the entire obligation, and

of article 14 of the Organic Law for the Closing of the

opted for the purchase option will proceed to the

1999 Banking Crisis:

transfer of the asset to the debtor.

"In the case of the debtors of the Central Bank of the
Ecuador, who have submitted within the deadline

c) If the asset is in usufruct of the debtor, at the request of the
The same will terminate the contract of

established in the law documentation that justifies

commercial lease and the same will be constituted

payments made that have not been recorded,

in a portfolio transaction for the amount of the

may submit invoices from legal studies,

pending obligation. Once the payment of

outsourcing companies in charge of carrying out

the obligation will proceed to the transfer of the

collection actions or attorneys who exercised

good to the debtor. In case of not complying with the

collection activities, account statements, receipts

recalculation agreement, the furniture will be finished and

payment, deposits or checks drawn and cashed in favor

the properties will be transferred to the entity that

of defunct financial institutions. The debtor

appropriate, as established by this law. "

must submit an affidavit at the
which will detail the documents attached and will indicate to

4) Add the following provision after subsection

what operation the payments correspond and will be done

second of article 15 of the Organic Law for the

responsible for their statements and the effects

Closure of the 1999 Banking Crisis:

these have in the recovery process and
liquidation, under penalty of perjury. The documentation is

"Recalculation contracts may be signed up to

You can file up to 30 days after the

ninety days after the publication of this

publication of this Code. The Central Bank of

Code. The 120-day period is null and void

Ecuador will respond up to 60 days from its

established in the second paragraph of

presentation."

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96 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

this article. In no case will they be received

2. Law of General Warehouses of Deposit;

claims requests that have not been
3. Check Law;

submitted within the original deadlinesmind in law. "

4. Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 13A,

5) Add the following provision at the end of article 19
of the Organic Law for the Closing of the Banking Crisis
from 1999:
"The requests of articles 18 and 19 will be attended
that are presented only up to 30 days after

14, 15, 19 and 20, general provisions and provisions
transitory provisions of the Law of Creation of the Network of
Financial Security;
5. Law for the Creation of the Credit Guarantee System;
6. Water Development Law of Manabí;

the publication of this Code. "
7. Law for the Restructuring of Outstanding Debts
Thirty-seventh.- In the Comprehensive Organic Criminal Code

with the National Development and Capitalization Bank of

carry out the following reforms:

the institution;

1. In article 278 of the Comprehensive Organic Criminal Code

8. Law of Rehabilitation of Producers who are in

replace the fourth subsection with the following: "They are

arrears with the National Development Bank and

responsible for embezzlement the officials or

Capitalization of the Institution;

public servants, the officials,
administrators, executives or employees of the
institutions of the National Financial System that

9. Law of Reorganization in Economic Matters, in the
Tax-Financial Area;

carry out financial intermediation activities, as well
as the members or vocals of the boards and of
the boards of directors of these entities, which

10. Emerging Law to Support the Productive Sectors of the
Border Cordon;

with abuse of the functions of their position: a)
fraudulently dispose, appropriate or distract
the funds, goods, money or private effects that the

11. Special Law for the Rehabilitation of the Loan Bank
SA In Liquidation;

represent; b) they had fraudulently executed
operations that decrease the asset or increase the

12. Special Law for the Capitalization and Sale of the Bank
Continental SA;

liabilities of the entity; or, c) have any
arbitrary freezing or retention or

13. General Law of Institutions of the Financial System;

widespread use of funds or deposits in
institutions of the National Financial System,
directly causing economic damage to their

14. Interpretative Law to the Special Law of Rehabilitation of the
Banco de Pr loans SA, in Liquidation;

partners, depositaries, account holders or holders of the
assets, funds or money. In all these cases they will be

15. Organic Law of the National Finance Corporation;

punished with a custodial sentence of ten to
thirteen years.

16. Organic Law of Monetary Regime and Banco del
Condition;

If the subjects described in the preceding paragraph cause
the fraudulent bankruptcy of entities of the System

17. Organic Law of the National Development Bank;

National Financial, will be sanctioned with penalty
imprisonment from ten to thirteen years. "

18. Law for the Protection of Social Capital contributed
for Rehabilitation, clients harmed with the

2. In article 557 of the Comprehensive Organic Criminal Code,

Liquidation of a Financial Institution;

numeral 3, after "for the purpose." add: "In
fraudulent financial bankruptcy case of person
financial legal with negative equity, money
obtained from the auction will be used to pay the
rights of the credits of the entity. "
EPISODE 2
Repealing
Without prejudice to what is ordered in the Provisions
Transitory, as of the effective date of this Code,
All regulations are repealed as soon as they are opposed
to the provisions of this Code. Additionally,
expressly repeal the following laws with all their
reforms and regulations:

19. Law that Regulates the Issuance of Cédulas Hipotecarias;
20. Reform Law to the Codification of the Law of
Monetary Regime and State Bank;
21. Substitute Law for the Law of the Ecuadorian Institute of
Educational Credit and Scholarships;
22. Article 5 of the Free Maternity Law and the
Childhood Care;
23. Law for the Development of Agricultural Roads and Development
of Manpower;
24. Reform Law of the Highway Development Law

1. Codification of the Law on the Ecuadorian Bank of the

Agriculture and the Promotion of Manpower and

Housing and the Mutual Savings and
Housing Credit;

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Creation of the National Sanitation Fund

Third.- Requests, claims and resources. All

Environmental, National Forestry Fund and

claims and resources and other administrative procedures

Reforestation;

submitted before the effective date of this Code, before the
Board of Directors of the Central Bank of Ecuador and Board of

25. Article 6 literal d) and f) of the Afforestation Law and
Reforestation of the Province of El Oro;

Regulation of the Popular and Solidarity Financial Sector will be
resolved by the Monetary Policy and Regulation Board and
Financial, within one hundred and eighty (180) days

26. Law for the Creation of the Commission for the Development of
North Zone of Manabí CEDEM;

counted from the effective date of the Code; for this purpose,
said collegiate bodies must transfer, within the term of
thirty (30) days, the administrative files of the

27. Law No. 70-06, published in the Official Gazette No. 413
of April 17, 1970;

claims and resources. The Board may extend the term for
resolve for up to one (1) year.

28. Law 76 published in the Official Gazette No. 457 of 13
June 1990;

The Banking Board will continue to act until all
claims, resources and other administrative procedures that

29. Law of Exoneration of Interest to Debtors of
Foncultura;

were knowing as of the effective date of this
Code, within one hundred and eighty (180) days,
extendable at the discretion of the Policy and Regulation Board

30. Supreme Decree No. 623- A published in the Registry
Official No. 155 of August 23, 1976.

Monetary and Financial. The Banking Board from the effective date
of this Code will cease to know the challenges against
normative acts. Actions against the rules

TRANSITORY DISPOSITIONS

in force issued by the Banking Board, the Board of Directors
Central Bank of Ecuador and the Board of Regulation of the

First.- Validity of resolutions and regulations. The

Popular and Solidarity Financial Sector, will be filed

resolutions contained in the Codification of

before the Monetary Policy and Regulation Board and

Resolutions of the Superintendency of Banks and Insurance

Financial

and of the Banking Board, the regulations that appear in the
Codification of Regulations of the Bank's Board of Directors

Fourth.- Payment networks and compensation systems.

Central del Ecuador, the regulations issued by the

Private payment networks and compensation systems

Regulation Board of the Popular Financial Sector and

private companies that are operating in the System

Solidario, and the standards issued by the

National Financial System should be qualified as a system

control, will maintain its validity in everything that is not

payment assistant and have the authorization of the Bank

opposes the provisions of the Organic Monetary Code and

Central del Ecuador that supports its operations, within

Financial, until the Policy and Regulation Board

of the term of one (1) year from the effective date of

Monetary and Financial resolve what corresponds, according to

this Code.

the case.
Fifth.- Authorization of the auxiliary systems of
Second.- Servers. Public servants who

pay. Within a maximum period of ninety (90) days from

date of issuance of this Code, which in any way

the validity of this Code, the entities that come

or to any title work or provide services for the Board

operating as auxiliary payment systems, they must

Banking, Central Bank Board of Directors, Regulatory Board

request authorization from the Central Bank of Ecuador

of the Popular and Solidarity Financial Sector, after evaluation,

respective to continue operating, in accordance with

qualification and selection, according to the requirements

provided in this Code.

institutional institutions and this Code, may become part
of the Ministry of State in charge of the Presidency of the
Monetary and Financial Policy and Regulation Board.

Sixth.- Advertising auxiliary payment systems. The bank
Central del Ecuador, within a maximum period of one hundred and eighty
(180) days from the effective date of this Code, will publish

Within 180 days from the date

in a national newspaper and on the website

promulgation of this Code, public servants or

institutional, entities authorized to operate as

workers, who under any modality, lend their

auxiliary payment systems, as well as those

services for the Maternity Law Enforcement Unit

They are in the authorization process.

Free and Attention to Children may pass, prior
evaluation of the Ministry of Public Health, to this entity.

Seventh.- Compensation and liquidation of entities of the
Popular and Solidarity Financial Sector. In a time

The competences, assets, rights and obligations that are

maximum of one hundred and eighty (180) days from the effective date
of this Code, the Central Bank of Ecuador will establish the

remain in force to this date will be assumed

compensation and settlement mechanism that must

by the Ministry of Public Health.

apply the entities that act as auxiliary systems
The resources that for the effect of free maternity and

payment, for operations carried out by entities

childcare were handled by the unit

of the popular and solidarity financial sector.

aforementioned executor, will be transferred, prior
Eighth.- Credit guarantee system. The system

inventory to the Ministry of Public Health.

credit guarantee referred to in the Law of Creation of the
Credit Guarantee System, will continue to operate
in accordance with the provisions applicable to the date of

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98 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

validity of this Code, until its transformation into the

Twelfth.- Deposit Insurance Corporation

credit guarantee system indicated in article 149,

and Liquidity Fund: The Insurance Corporation of

in accordance with the regulations issued by the Board of

Deposits and the Liquidity Fund created by the Law of the

Monetary and Financial Policy and Regulation.

Financial Safety Network will become the
Deposit Insurance Corporation and Liquidity Fund

Within ninety (90) days of validity of this

of the private and popular and solidarity financial sectors, in the

Code, the National Guarantee Fund trust

term of sixty (60) days from the effective date of this

constituted by the National Finance Corporation at the

Code. Until this transformation is perfected, the

under Article 65 of the Organic Code of the

Deposit Insurance Corporation and the

Production, Trade and Investments, must be reformed to

Liquidity will continue to function in accordance with its law of

in order to integrate it into the referred Credit Guarantee System

creation.

in article 149.
Thirteenth.- Deposit Insurance, Fund
Ninth.- Validity of the authorization certificates.
The authorization certificates issued by the

Liquidity and Private Insurance Fund: Until
constitute the new trusts of the Insurance of

Superintendency of Banks and Insurance, which protect the
operation of public financial institutions and

Deposits and Liquidity Fund provided in this Code,
The Mercantile Trusts of the

private, with the exception of service entities

Deposit Insurance Funds and Mercantile Trust

auxiliaries of the financial system, which are currently

of Investment Liquidity Fund.

operating, are valid and will be in effect until they are
replaced by the authorizations for the exercise of
financial activities and the corresponding

Once the new trusts of the Insurance of
Deposits, Liquidity Fund and Private Insurance Fund

operation referred to in article 144, of
according to the types of entity, after compliance with
the levels of capital, equity, liquidity, solvency and the
other requirements determined in this Code, and in the
regulation issued by the Policy and Regulation Board
Monetary and Financial.

provided in this Code, the Mercantile Trusts of
the Deposit Insurance Funds and the Trust
Mercantil de Inversión Liquidity Fund, will transfer their
resources to the new trusts and will subsequently be
liquidated. The term for the transfer to which it refers
this article may not exceed 60 days from

The replacement of certificates by authorizations

that the new trusts are operational.
must be done within eighteen months
from the effective date of this Code. The Superintendency
of Banks, in agreement with the Board of Policy and

The Private Insurance Fund will start operating from
January 1, 2016.

Monetary and Financial Regulation, you may extend the term
for up to eighteen months, one time only, for reasons

All public servants who are direct and

duly justified.

indirectly related to compliance with this
disposition, they will first attend the formalities
necessary for the improvement of the provisions.

Within these terms, private financial entities
must reform their bylaws and carry out the other
actions necessary to comply with the provisions of

The governing body of public finances will contribute, for this

this Code.

only once, charged to the General State Budget, the
sum of forty million (40'000,000.00) dollars of

To comply with this transitory provision the entities

the United States of America, to the insurance trust

public and private financial institutions may merge,

of deposits of the Popular and Solidarity Financial Sector. "

converted, or they will cease to operate and begin a process of
settlement in accordance with the rules dictated by the
Superintendency of Banks. "

Fourteenth.- Deposit Insurance Coverage
for savings and credit cooperatives and
mutual savings and credit associations for the

Tenth.- Public cadastre of financial entities. On

Housing of the Popular and Solidarity Financial Sector:

within a period of ninety (90) days from the

Credit unions and associations

validity of this Code, the superintendencies shall

Savings and loan mutualists for housing in the Sector

convert the database of entities under your control

Financiero Popular y Solidario that are not part of the

in the Public Cadastre provided in this body

segment 1, which are registered in the Cadastre

legal.

Public in charge of the Superintendency of the Economy
Popular and Solidarity, will maintain insurance coverage

Eleventh.- Publication of the superintendencies.

of Deposits per thousand United States dollars of

The publication of financial and statistical information,

America (USD $ 1,000.00); said value will increase

provided in articles 221, 222 and 224, of the entities

up to the value established in article 328, depending on

of the Popular and Solidarity Financial Sector will be published and
informed by the Superintendency of Popular Economy and
Solidarity, progressively, as well as the supervision of

the presentation of the information required by the directory
Deposit Insurance and Liquidity Fund, within the
term that it defines.

the entities of the popular and solidarity financial sector, in the
term of three (3) years from the effective date of this Code.

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As of the promulgation of this Code, the

Eighteenth.- Reverse of accounting records: The

savings and credit cooperatives of the Financial Sector

accounting records on interest owed in favor of the

Popular and Solidarity indicated in the previous paragraph, have the

Central Bank of Ecuador by the Ministry of

obligation to contribute to Deposit Insurance, of

Finances relating to bonds issued on the basis of the

in accordance with the regulations issued by the Board of

Law No. 98-17, which were owned by said bank until

Monetary and Financial Policy and Regulation.

on December 31, 2008, within thirty (30) days
from the issuance of this Code, they will be reversed.

The Deposit Insurance coverage for one thousand dollars of the
United States of America (USD $ 1,000.00), established

Nineteenth .- Term of investment rules

in this provision, it will be applied to the entities of the

of international assets of the Central Bank of

Popular and Solidarity Financial Sector that at the time of

Ecuador: Provisions regarding asset management

issuance of this Code are in the process of

and external liabilities of the Central Bank of Ecuador

liquidation in accordance with the provisions of the Organic Law of

established in this Code will be applied as of

Popular and Solidarity Economy and the Financial Sector

fiscal year 2014.

Popular and Solidarity. In this case, the
provision of article 330, second paragraph. Instead, the
Deposit Insurance Corporation and Liquidity Fund
will be creditor for the amounts covered according to the order

Twenty.- Restructuring of the Central Bank of Ecuador:
In order to implement the new management structure
of the Central Bank of Ecuador, within one year
counted from the effective date of the Code, the

established for the purpose. "

General Manager to execute and arrange all action
necessary, in accordance with the law, aimed at improving the

Fifteenth.- Tax compliance of accounts
foreign: During a period of four (4) years from the date of
validity of this Code, the control bodies may
authorize the delivery of the information to which it refers
Article 354, numeral 7, without reciprocity, until
sign the intergovernmental delivery agreements
of reciprocal information.

management of human talent of the Central Bank of Ecuador,
in accordance with the rules of this Code and other provisions
current regulations.
The new functional organic structure of the Central Bank
of Ecuador will integrate as much as possible with the current
servers and workers who are qualified from the
evaluation and selection process, which will take you forward

Sixteenth.- Public Financial Sector: The Bank of the

the Administration of the Central Bank of Ecuador. Saying

State, the National Development Bank, the Corporation

evaluation process may be in charge of a firm

National Finance and the National Finance Corporation

specialized in the matter and it will be considered, among

Popular and Solidarity will continue to operate in accordance with

other aspects, skills, academic training,

with its laws of creation, until the President of the

specialization, training courses, experience and

Republic issues the corresponding executive decrees

those determined by the Organic Law of the Service

through which it reorganizes or liquidates the entities of the

Public and the governing body of the matter.

Public Financial Sector and the authorizations and
operating permits, in accordance with the provisions of

To this end, the Administration of the Central Bank of Ecuador

this Code.

will issue the corresponding resolution, in which it will describe
the terms of the evaluation and selection process to which

Seventeenth.- Workers and servants of the Sector

The servers and workers of the

Public Finance: Due to the reorganization of the

institution and the evaluation mechanisms

Public Financial Sector, workers and servants

will apply.

public that on the date of issuance of this Code, which
in any form or to any title, work or lend

Selectively defined staff and additional staff

services in these entities, after evaluation,

incorporates, they must compulsorily meet the requirements

qualification and selection, according to the requirements

designated for the position, and comply with the provisions of the

institutional institutions and this Code, may become part

internal regulations issued by Management for this purpose

of the new public financial entities.

General of the Central Bank of Ecuador, which must
Obtain a favorable opinion from the Ministry of Relations

In the case of public servants, if there are charges

Labor.

unnecessary, the process of deletion of
positions provided in the Organic Law of Public Service
and / or the compensation process provided in the decree
Executive No. 813 published in the Official Gazette No. 489

The servants and workers of the Central Bank of the
Ecuador that are not selected in this process,
will receive the compensation provided for in the Organic Law of the
Public Service or Labor Code, as the case may be.

of July 12, 2011.
The Secretary of State in charge of labor relations,
within a period of one hundred and eighty (180) days of validity
of this Code, will carry out the analyzes and studies
corresponding, in order to establish a scale
differentiated and specific remuneration for servers
of the entities of the Public Financial Sector and the
public insurance and securities entities.

For everything not contemplated in this provision
transitory, the provisions of the Organic Law will be applied
Public Service and other current provisions
related to matter.
The pensions that for retirement, montepío, widowhood,
invalidity and others established by the governing body of the
social security will be adjusted according to the amounts

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100 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

allowed by the law of the matter as far as the

reforms to the Bank Law of the Ecuadorian Institute of

beneficiaries have met the requirements set forth in the

Social Security provided in these regulations.

law. Benefits whose origin is opposite will not be recognized

Until the Bank will continue under the control of the

to those provided for in the Social Security Law and will not have

Superintendency of Banks.

right to receive pensions or of any other nature
the former servers of the Central Bank of Ecuador who
compensated on time or paid contributions in advance
as a retirement requirement as well as former members
of the Monetary Board or Board of Directors that approved
resolutions or regulations contrary to the requirements of
retirement and of which they were direct beneficiaries.

Twenty-second.- Ecuadorian Housing Bank:
The Ecuadorian Housing Bank will be liquidated within the
maximum term of 90 days, counted from the date on
that the Superintendency of Banks issue the regulations
for the effect. Until the Bank will act according to its
constitutive law.
In the liquidation process the following will be observed:

Administrative and judicial processes regarding
1. The real estate owned by this entity,

retirement pensions, which are pending or
litigation in the different jurisdictional bodies will continue

will be transferred to the book value to the Service of

being sustained according to the procedural norms of the

Real Estate Management of the Public Sector, REAL ESTATE or

matter to completion.

to the Secretary of State in charge of Housing.

Officials and employees of the Central Bank of the
Ecuador who committed or committed serious offenses in the
fulfillment of their functions or those who present
significant increases in its equity not justified and

The Real Estate Management Service of the Public Sector,
REAL ESTATE is empowered to clean up, regularize and
take all necessary actions to resolve the
affectations of real estate that are
transferred, and dispose of them in accordance with

inconsistent with your income statements
presented for tax purposes, will be removed in their
functions in accordance with the Law and internal regulations that
effect issued by the bank's administration, guaranteeing the
due process, without prejudice to other actions to the
that there is place.

the law;
2. Demand deposits and assets equivalent to such
deposits recorded in the Bank's balance sheet
Ecuadorian Housing will be transferred to the Bank
Nacional de Fomento or its successor in rights, which
will assume them without any restriction;

The Central Bank of Ecuador will compulsorily denounce
before the competent judges, when he has knowledge

3. The Deposit and Mortgage Insurance Fund will be

that the officials and former officials who had

liquidated and the resources that are not guaranteeing

worked until five (5) years ago or whose spouses or

Current housing loan operations will be

relatives within the fourth degree of consanguinity and

transferred to the Single Account of the National Treasury;

second of affinity, they would have obtained increases
patrimonial assets not justified and incompatible with

4. The commercial rediscount portfolio with guarantee

income statements filed for purposes

mortgage and equivalent term deposits will be

tax.

transferred to the book value to the Banco del Estado.

Twenty-first.- Bank of the Ecuadorian Institute of
Social Security: The members appointed in
representation of active and retired members before the
Directory of the Bank of the Ecuadorian Institute of Security
Social, which were possessed by the National Assembly
on November 25, 2009, they will remain in office
until they are legally replaced by the winners of the
competitive examination and merits called by the Council
of Citizen Participation and Social Control on April 20
of 2014 who in the exercise of their functions will remain

5. The shares and participations that the Bank has
Ecuadorian Housing will be transferred to the value in
books to the State Bank; Y,
6. All other assets, liabilities, equity and others
obligations of the Ecuadorian Housing Bank,
will be arranged in the liquidation process of the
entity; For this purpose, the liquidator may constitute a
trust whose beneficiary will be the Ministry of
Finances, which will be in charge of the disposal of the
remnants.

subject to the provisions of this Code.
The liquidation process may not exceed a period of two
The other members of the Board of Directors and the General Manager

(2 years.

of the Bank of the Ecuadorian Institute of Social Security,
They will cease their functions within thirty (30) days,

Workers and public servants who as of the date of

counted from the promulgation of this code.

issuance of this Code, which in any form or
any title, work or provide services in the Bank

Within one hundred and eighty days (180) from the

Ecuadorian Housing, after evaluation, qualification and

promulgation of this code in the Official Registry, the

selection, according to institutional requirements

Superintendency of Banks and Superintendency of

and this Code, may become part of other

Companies, Securities and Insurance together with Banco del

public financial entities.

Ecuadorian Institute of Social Security, will implement
all the activities necessary for the implementation of

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Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014 - 101

Public servants who cannot relocate to other

Twenty-fifth.- Association agreements: Within the

entities, will undergo the process of deletion of

within one (1) year from the effective date of this Code, the

positions provided in the Organic Law of the Public Service. "

private financial entities and their national subsidiaries
and foreigners must dispose of the shares they hold in

Twenty-third.- Substitution of debtor of

other private financial entities, as a consequence of

operations of the National Development Bank: In the

association agreements signed under the law

credit operations granted by the National Bank

General of Institutions of the Financial System.

Development whose financial resources would have been
delivered directly to third parties other than the beneficiary

Twenty-sixth.- Divestment: The entities of the sector

or client and that said amounts delivered have not

private finance company and the shareholders of said entities with

fulfilled the objective for which the

patrimonial property with influence, within one (1)

credits, will proceed to replace the original debtor of said

year from the effective date of this Code must divest

operation by the person who actually received such

their shareholdings in the entities

resources or by the public servant who authorized the

foreign financial institutions that are domiciled

disbursement in favor of said third party, in accordance with

in tax havens or lower tax jurisdictions

the regulations established by the Bank's board of directors.

in accordance with the criteria of the Internal Revenue Service.

This provision will apply even to credits delivered.
In the event that an Ecuadorian private financial entity

prior to the entry into force of this Code.

or the shareholders of such entities with ownership
Twenty-fourth.- Ecuadorian Credit Institute
Educational and Scholarships: The Ecuadorian Credit Institute
Educativo y Becas, IECE, created with the Substitute Law for the
Law of the Ecuadorian Institute of Educational Credit and Scholarships,
As of the effective date of this Code, it will cease to operate and
its place by Executive Decree, the new
public institution in charge of the administration of scholarships,
monitoring and academic advice, belonging to the
Executive Function, until the Ecuadorian Institute of
Educational Credit and Scholarships, IECE will continue to act
in accordance with its constitutive law.

patrimonial with influence, maintain participation
shareholding in a country that is rated by the Service of
Internal Revenue as a tax haven or minor jurisdiction
imposition, after the effective date of this
Code, such persons must divest such
participation within one (1) year.
Twenty-seventh.- Development Corporation of
secondary mortgage market: The incorporated entity
under the General Law of Institutions of the System
Finance as a market development corporation
secondary mortgage, within one (1) year of the
validity of this Code, you must transfer the quality of

The new public institution will be the successor in law of the
Ecuadorian Institute of Educational Credit and IECE Scholarships,
assuming the patrimony, rights and obligations,
contracts, agreements and other legal instruments.

fiduciary in the securitization processes that currently
manages, a fund management company and
trusts, maintaining the other required powers
to develop securitization processes, own and of
third parties. If such transfer does not operate within the indicated period,

Be granted coercive jurisdiction, in the terms of article

the entity must be liquidated.

10 of this Code, to the public institution, in charge of the
scholarship administration, monitoring and advice

The participation of the State in this corporation will be

academic.

assumed by the Banco del Estado, an entity that may
maintain, increase or alienate it.

The past due portfolio that has been generated within the framework of the
placement of educational credits granted until 19

Twenty-eight.- Transporters of values ​and

December 2013 by the Ecuadorian Credit Institute

security: The auxiliary service entities of the

Educational and IECE Scholarships, as well as the overdue portfolio that

financial system whose purpose is the transport of species

is generated from the placement of educational credit in the

monetary and securities and security, which have been

quintiles determined in specific agreements

incorporated as limited liability companies, in

subscribed by that institute with financial entities to

within one year they must become companies

such effect, will become owned and administered by the

anonymous.

new public institution in charge of the administration of
scholarships, monitoring and academic advice. The control of the

Twenty-ninth.- Mutual savings associations

management of this coerced and penalized portfolio will be

and credit for housing: Mutual associations

position of the Comptroller General of the State, a body that

savings and credit for housing that as of the date of

will carry out such control considering the nature

validity of this Code are operating, in the

financial operations.

within eighteen months will resolve their permanence in the
Popular and Solidarity Financial Sector or its conversion to

The financial entities that are empowered to

financial entity of the Private Financial Sector. In case

granting of educational credit, they must observe the

to pass to the control of the Popular Financial Sector and

public policy on the matter, which for the purpose issues

Solidario, the Superintendency of Banks and Insurance

the governing body of higher education, science, technology and

transfer all documentation and files to the agency

innovation.

of control of mutual savings and
home credit. This period may be extended by
the Monetary and Financial Policy and Regulation Board,

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102 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

one-time for an additional eighteen months. The

The workers and public servants of the

accumulated historical heritage of associations

Superintendency of Banks that at the date of issuance

registered mutual savings and loans for housing

of this Code, are providing services in the area to

as irrepartible legal reserve, it will be registered as

position of the insurance system, after evaluation, qualification

equity of the entity.

tion and selection, according to the requirements
institutional institutions and this Code, may become part

In the event that the entity becomes an entity of the

of the Superintendency of Companies, Securities and Insurance.

Private Financial Sector, historical heritage

If there are unnecessary charges, the process of

accumulated, constituted by the irrepartible legal reserve, will be

elimination of positions provided in the Organic Law of the

contributed to the Deposit Insurance.

Public service."

Thirtieth.- Insurance companies, reinsurance,

Thirty-second.- Public accounts Public Sector

insurance producing advisers, inspectors of

Non-Financial: Within a period of two (2) months from the date of

risk and claims adjusters and intermediaries of

effective date of this Code, the entities of the system

reinsurance: Insurance companies, reinsurance,

national financial institution will convert into accounts exclusively

insurance producing advisers, risk inspectors and

resource collectors, all bank accounts with

claims adjusters and reinsurance intermediaries

turning capacity that public sector institutions do not

that as of the effective date of this Code there are

financial hold.

constituted, within a period of eighteen months they must
comply with the reforms to the General Insurance Law
provided in this Code. The Board of Policy and
Monetary and Financial Regulation, you may extend the term

Failure to comply with this provision will result in
administrative, civil and criminal responsibilities to
that there is place.

up to eighteen months, one time only.
Thirty third.- Public Sector Investments No

Companies that cannot comply with this
Temporary Provision will cease to operate and start a
liquidation process in adherence to the rules dictated by the
Superintendency of Companies, Securities and Insurance.

The Superintendent of Banks will know and resolve the
Appeals that have not been resolved by the
Banking Board in accordance with the third transitory provision,
for claims that are filed until the

Financial: The financial investments that the
Institutions of the Non-Financial Public Sector maintain
current in the private and popular financial sectors and
joint and several, and in securities issued by entities
private nationals or foreign entities, at their
expiration date, they cannot be renewed. If the expiration of
the investment exceeds one (1) year from the effective date of this
Code, such financial investments must be
alienated.

competence in this matter is assumed by the
Superintendency of Companies, Securities and Insurance,
in accordance with the following transitory provision.

The resulting resources will be credited in the respective
accounts that entities maintain at the Central Bank

In claims, the terms or deadlines that

of Ecuador, in accordance with the regulations issued by the

have begun to elapse on the date of promulgation

rector of public finances.

of the reforms to the General Insurance Law introduced
Public Sector entities are available No

by this Code.

Financial constituents of commercial trusts
The rules of the Organic Law of Consumer Defense

BANCO DEL MIGRANTE, PROMUJERES, FICA, and

are understood to be incorporated into insurance contracts

any other trust established for the purpose of

in force on the date of promulgation of this law.

carry out credit operations in favor of groups of
priority attention, terminate said contracts of

The reforms to the General Insurance Law introduced by

trusts and the restitution of their assets to the

this Code, regarding the forced liquidation of

constituents so that these in turn transfer the

companies regulated by that law, will be applicable to

resources resulting from the liquidation to the Corporation of

liquidations in process on the date of promulgation of the

Popular and Solidarity Finance, within one hundred

reforms. "

eighty (180) days from the effective date of this Code.

Thirty-first.- Control of the insurance regime:

The Popular and Solidarity Finance Corporation

The Superintendency of Companies, Securities and Insurance

will allocate these resources, exclusively, to

will assume the powers that this Code and the

programs and projects aimed at the same groups of

reforms introduced by him to other laws assign him, in the

priority attention in favor of which the

within one year from its publication in the

trusts.

Official register. During that period, the
files, documentation and systems that are currently

Within the same period, it is also arranged to

found in the Superintendency of Banks and Insurance, and

the commercial trusts FONDEPYME AND

human resources will be determined and obtained,

CREECUADOR. The money assets of said

technological, financial, and materials in general,

trusts will be transferred to the venture capital fund

necessary to assume such competencies.

provided in the Organic Code of Production and the rest
of assets to the respective constituents.

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Second Supplement - Official Gazette No. 332 - Friday September 12, 2014 - 103

Failure to comply with this provision will result in

Thirty-seventh: The twenty-fourth general provision

administrative, civil and criminal responsibilities to

of the Organic Code of Planning and Public Finance

that there is place.

introduced by the reform and repeal provision
third of this Code, will govern from the fiscal year

Thirty-fourth.- Resources of the National Fund for

budget 2015.

Environmental Sanitation (FONASA) and in the Fund
National Forestry and Reforestation (FONAFOR):
By virtue of the repeal of the Reform Law of the Law
Development of Agricultural Roads and Promotion of
Manpower and Creation of the National Fund for
Environmental Sanitation, National Forestry Fund and
Reforestation, the resources of the National Fund for
Environmental Sanitation (FONASA) and the National Fund for
Afforestation and Reforestation (FONAFOR), prior
settlement, will be transferred to the Single Treasury Account
National.
Thirty-fifth.- Resources of the Commission for the
Development of the North Zone of Manabí CEDEM: By virtue of

Thirty-eighth: In the case of Banco del Estado, in
place of the holders indicated in paragraph 2 of the article
373, will participate in the directory: a representative of the
regional governments, a representative of the governments
provincial, a representative of the cantonal governments,
a representative of the parish governments and two
heads of state secretariats whose scope of action
is directly related to the purposes and
objectives of the respective financial institution, or its
permanent delegates. This entity will have its capital
subscribed and paid divided into shares and will have a Meeting
General Shareholders

of the repeal of the Law of Creation of the Commission for
the Development of the North Zone of Manabí CEDEM, the

Thirty-ninth: The sale of the shares or the

resources assigned to the commission, after liquidation, will be

assets of companies acquired by the Agency for

transferred to the Single Account of the National Treasury.

Deposit Guarantee or the Management and Execution Unit
of the AGD-CFN Trust No More Impunity for

Thirty-sixth.- Coercive jurisdiction: Entities

provision of article 29 of the Law of Reorganization in

financial and insurance in which the State maintains the

Economic Matters in the Tax-Financial Area,

majority ownership, will have coercive jurisdiction for the

instrumented with credit or credit operations

collection of credits and any type of obligations to your

financing carried out by the Financial Corporation

favor or third parties, as long as the State maintains said

National and paid, totally or partially, with Certificates

participation. Coercive jurisdiction will be exercised

of Guaranteed Liabilities (CPG) in favor of workers or

employees of said companies, will be reliquidated from

as established in article 10 of this Code.

according to the following criteria:
The Superintendency of Banks will continue to exercise
coercive jurisdiction for the collection of losses

to. The price of the traded goods will be re-settled: (i) a

assets of financial institutions whose

their book value at the date of the sale; (ii) to the minor

liquidation processes ended until December 2010.

value at which goods were publicly sold
peers of the same company, or (iii) the value in

The coercive processes will be initiated against the shareholders

current books, the smallest of the three.

representing six percent (6%) or more of the capital
stock at the time the financial institution submits
These criteria will be applied in future sales that

to the restructuring, reorganization or liquidation process

make the Mercantile Trust AGD-CFN No More

forced, as well as against the main administrator and

Impunity for workers or employees of the

legal representative.

companies determined in the first subsection.
The Superintendency of Banks will determine the qualities
b. Credit or financing operations are

referred to in the previous paragraph, and may dictate measures
real precautionary, within the coercive, on the goods

They will be reliquidated as follows: (i) The Trust

that of public knowledge are the property of those

Mercantil AGD-CFN No More Impunity must pay

shareholders, administrators or legal representative, in their

to the National Financial Corporation the difference of

case.

existing capital between the credit granted and the credit
that corresponds according to the valuation determined in the

The foregoing, without prejudice to civil liabilities,

preceding literal; (ii) the financial conditions of

administrative and criminal where there is room for those who

the reliquidated operations will be at least one

managed by financial institutions during the stage

term of fifteen (15) years and at a rate no higher than

sanitation or restructuring by the Agency for

five percent (5%), the Mercantile Trust AGD-

Deposit Guarantee and subsequent settlement.

CFN No More Impunity must pay the
National Financial Corporation the difference by

In the event that the control entities determine

re-liquidation of these interests; and, (iii) the interests

responsibilities of temporary administrators and

overpaid as a result of the liquidation

liquidators, grant the same coercive jurisdiction to the

indicated, they will be paid to the capital.

Superintendency of Banks to exercise against
said officials ”.

c. In those cases in which the Mercantile Trust
AGD-CFN No More Impunity does not have the resources
sufficient to make the payments provided for in subsection
above, the difference, total or partial, will be assumed by

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Page 104

104 - Second Supplement - Official Gazette No. 332 - Friday, September 12, 2014

the Management and Execution Unit of the AGD Trust-

Forty-second: Transferability and endorsement of

CFN No More Impunity, for which the Ministry of

checks, and the issuance of crossed checks, will continue

Finance will allocate the corresponding resources.

being carried out in accordance with the Checks Law, until
the Monetary and Financial Policy and Regulation Board

Fortieth: As of the publication of this

dictate the regulations determined in this Code.

Code, the Superintendency of Banks will provide, in the
maximum period of 180 days, conducting audits
external to the Supplementary Social Security Funds

FINAL PROVISION.- This Code will enter into

Closed.

valid from the date of its publication in the Registry
Official.

Forty-first: Until the decrees are issued
respective that make the operation of the public bank feasible,

Done and signed, at the headquarters of the National Assembly

the Monetary and Financial Policy Regulation Board

located in the Metropolitan District of Quito, Province of

will determine,

through

regulation,

considering

segments, economic activities and other criteria, all

Pichincha, on the second day of September, two thousand
fourteen.

the cases in which payments are charged first
to the capital, for current credit operations or
past due entities of the public financial sector, which

f.) GABRIELA RIVADENEIRA BURBANO, President.

have been granted before or after the expedition
f.) DR. LIBIA RIVAS ORDÓÑEZ, Secretary General.

of this Code.

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