Mexican Legal Framework of Business Insolvency - White & Case

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– If subject to a condition precedent, the condition shall be deemed as never
occurred [LIC 122 bis 21-V]. Therefore, the claim shall be deemed not to exist. 76
– If subject to a condition subsequent, the condition shall be deemed as occurred,
that is, the claim shall be extinguished [CCF 1940]; however, the parties shall not be
entitled to a refund of any consideration paid during the pendency of the condition
[LIC 122 bis 21-VI].
■■ IPAB is entitled to carry out purchase-and-assumption ( cfr. 30) or other transactions
it considers to be the best alternative to the interests of the depositors in light of the
circumstances [LIC 122 bis 25], subject to the lesser cost rule [LIC 122 bis 26]. The
lesser cost rule implies that the cost of implementing an alternative should be lower
than the cost of paying IPAB-insured liabilities [LIC 122 bis 26].
29. Bank Restructuring
A bank would be subject to bank restructuring if (1) the bank meets any commencement
standard (cfr. 23); and (2) the CEF determines that [x] the bank is systemically important
and [y] 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic
repercussions [LIC 122 bis-II].
The type of bank restructuring would depend on whether the bank elected to be subject
to the conditioned operation regime (cfr. 26). A bank that elected to be subject to the
conditioned operation regime would be subject to bank restructuring through support,
whereas a bank that did not elect to be subject to the conditioned operation regime would
be subject to bank restructuring through loans [LIC 122 bis II-a].
a. Bank Restructuring Through Support
Bank restructuring through support is available if (1) the bank [x] meets any
commencement standard, and [y] is subject to the conditioned operation regime; and
(2) the CEF determines that [x] the bank is systemically important and [y] 100 percent of
the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions
[LIC 122 bis 2].
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Borja (1991), pp. 395-399.