On March 26th, 2024, a decree was published in the Federal Official Gazette with which several provisions of the General Law of Negotiable Instruments and Credit Transactions (“LGTOC”, by its acronym in Spanish) and the General Law on Credit Auxiliary Organizations and Activities (“LGOAAC”, by its acronym in Spanish) were amended, supplemented and derogated.
This amendment became effective on March 27th, 2024.
Main Objectives of the Amendment
I. Amendment to the LGTOC.
In general terms, the following are the most relevant points of the amendment to the LGTOC:
a) Pursuant to the amendment to Article 5 of the LGTOC, negotiable instruments are those documents that are necessary for exercising the literal right set forth therein, regardless of whether they are issued by written or electronic means.
b) Negotiable instruments may be issued in electronic, optical or any other technology through an information system used to generate, transmit, receive, deliver or otherwise process data messages, in terms of Article 89 of the Code of Commerce.
c) The addition of Article 5 bis of the LGTOC sets forth that, when the LGTOC or another legal provision indicates or requires that the transactions it regulates be in writing, such requirement shall be deemed fulfilled concerning a negotiable instrument issued in electronic or optical media or by any other technology, when it is expressly permitted by the LGTOC, provided that the instrument preserves its integrity and remains accessible (which shall be presumed when it can be consulted in the corresponding information system).
II. Amendment to the LGOAAC.
In general terms, the following are the most relevant points of the amendment to the LGOAAC:
a) General depository warehouses, which are exclusively responsible for issuing certificates of deposit, must do so through a cryptographic system that meets minimum security standards to ensure confidentiality, availability and integrity of information as well as prevention of fraud and cyber-attacks (for which the National Banking and Securities Commission will issue general rules to determine the requirements and characteristics that must be met for the issuance of certificates of deposit).
b) The Sole Registry of Certificates, Warehouses and Goods (“RUCAM”, by its acronym in Spanish) will enable interconnection with cryptographic systems that meet technical and security requirements, through which certificates of deposit are issued.
It is important to take into consideration that the Federal Executive and the National Banking and Securities Commission will have a term of 180 (one hundred and eighty) business days from the effective date of the decree to adjust any regulatory provision requiring updating in accordance with the content of the amendment.
Likewise, the general deposit warehouses must adjust their operations for the issuance of electronic certificates of deposit no later than 18 (eighteen) months after the date of entry into force of the decree.
