Interest Rates

The swap is a contract atypical, consensual and bilateral, i.e. generator of reciprocal obligations, sinalagmatico, continuous duration and in which reciprocal obligations are exchanged. The agreement consists of Exchange on a (notional) nominal reference and no real capital amounts arising from applying a coefficient different for each Contracting denominated interest rates (although such, is not in the strict sense, because there is, in reality, capital loan agreement) by limiting the Contracting Parties, in accordance with agreed rates and respective deadlines, exchanging partial payments during the term of the contract oronly and more simply, to settle periodically, by offsetting a debit balance or creditor. The right to information in the banking system and the tutelage of bank transparency is basic to protect the subjects involved in it (the banking client), mainly, through both pre-contractual information, in the run-up to the conclusion of the contract, as in the contractual phase, through enforceable contractual documentation. Article 48.2 of the L.D.I.E.C. 26/1988 of July 29 and their development, as well as law 24/1988 of July 28, the stock market come considered by the Bank of Spain and the involved C.N.M.V.

within its scope (SAP Asturias of January 27, 2010). Learn more at: Cyrus Massoumi FindShadow. And examined the regulations of the stock market surprised positively dispensed protection customer given the complexity of this market and the purpose to develop with transparency but surprises, especially the neat normative development about the proper treatment, with special incidence in the pre-contractual phase. Relevant information regarding the risk of the operation is the relative to the reasoned and reasonable forecast of the future behaviour of the reference variable type. Only so customer can assess whether the Bank bid satisfies a or not your interest. So if this information has not been provided, the interest rate swap can be attacked in contentious headquarters by customer banking pretending its invalidity.

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