Título VII. Sanciones

When the position of the bank reserve requirement referred to in this Law shows a deficiency, the Superintendency of Banks shall notify the directors or managers of the Bank concerned in writing and shall impose on the Bank a fine on the amount of the deficiency, equivalent to one and a half times the maximum nominal active interest rate that the Bank with the reserve deficiency has applied during the reserve computation period.

If the deficiency persists for more than three consecutive periods, or appears during six (6) different periods within twelve (12) months from the first notification, the Bank concerned is prohibited from making new loans or investments until it maintains the minimum bank reserve requirements for at least three (3) consecutive periods, without prejudice to the Bank paying the fines imposed by the Superintendency of Banks in accordance with the preceding paragraph, for which purpose the Central Bank shall charge the amount of the fine to the respective reserve account, and the fine shall increase the Savings Protection Fund.

If the Bank concerned does not regularize its reserve position within a time limit of two (2) months from the date on which, in accordance with the preceding paragraph, it ceased to make new loans or investments, the Superintendency of Banks shall report that circumstance to the Monetary Board, including in its report the causes of such irregularity, so that the Board, if appropriate, may adopt the corresponding legal measures.

For the imposition of the fine referred to in this article, due process must be observed.

When the position of the legal deposit referred to in this Law shows a deficiency, the Superintendency of Banks shall notify the directors or managers of the entity concerned in writing and shall impose on it a fine on the amount of the deficiency, equivalent, in the case of companies that form part of a financial group, to one and a half times the maximum nominal active interest rate that the Bank of the financial group to which the entity with the deficiency in its legal deposit belongs has applied during the legal deposit computation period and, in the case of a financial company that does not form part of a financial group, to one and a half times the maximum nominal active interest rate that the financial company with the deficiency in its legal deposit has applied during the legal deposit computation period.

If the deficiency persists for more than three (3) consecutive periods, or appears during six (6) different periods within twelve (12) months from the first notification, the entity concerned is prohibited from carrying out new active operations until it maintains the minimum legal deposits for at least three (3) consecutive periods, without prejudice to the obligation of the entity concerned to pay the fines imposed by the Superintendency of Banks in accordance with the preceding paragraph, for which purpose the Central Bank shall charge the amount of the fine to the respective account, which shall increase the Savings Protection Fund.

If the entity concerned does not regularize its legal deposit position within a time limit of two (2) months from the date on which, in accordance with the provisions of the preceding paragraph, it no longer carries out new active operations, the Superintendency of Banks shall report that circumstance to the Monetary Board, including in its report the causes of the irregularity, so that the Monetary Board, if appropriate, may adopt the corresponding legal measures.

For the imposition of the fine referred to in this article, due process must be observed.