Information about the 2012 Code of Good Practices

If you meet the conditions of being within the “exclusion threshold”, you may be eligible for the following measures:

1. Measures prior to foreclosure: debt restructuring:

You may request from the Entity, up until the announcement of the auction of the property if it is in foreclosure proceedings, the restructuring of your mortgage debt in order to achieve its medium- and long-term viability, for which you must provide the documentation indicated below. Within 1 month from the submission of this request with all the required documentation and provided you prove that you meet the requirements, the Entity will notify you and offer a Restructuring Plan detailing the execution and financial consequences of the joint application of the measures. Notwithstanding the above, you may at any time submit a proposal for a Restructuring Plan, which must be analyzed by the Entity, who, in case of rejection, must inform you of the reasons for its decision.

a).- The Restructuring Plan will include the joint application of the following measures if the increase in the effort represented by the mortgage burden on family income is equal to or greater than 1.5 and the family unit is in the special vulnerability circumstances detailed in the section explaining the “exclusion threshold”:

• Application of a 5-year principal repayment grace period. The principal corresponding to the installments during this period may either be added to a final installment at the end of the loan, prorated over the remaining installments, or a combination of both systems may be used.

• Extension of the debt repayment term up to 40 years from the granting of the loan.

• Reduction of the applicable interest rate to Euribor minus 0.10% during the 5-year grace period. In any case, for fixed-rate loans, the current fixed rate will apply during the grace period.

b).- The Restructuring Plan will include the joint application of the following measures if the increase in the effort represented by the mortgage burden on family income is less than 1.5 and the family unit is NOT in the special vulnerability circumstances detailed in the section explaining the “exclusion threshold”:

• Application of a 2-year principal repayment grace period. The principal corresponding to the installments during this period may either be added to a final installment at the end of the loan, prorated over the remaining installments, or a combination of both systems may be used.

• Extension of the debt repayment term up to 7 years, not exceeding a total of 40 years from the granting of the loan.

• The applicable interest rate during the grace period will be such that it results in a 0.5% reduction in the net present value of the loan in accordance with current regulations. In any case, for fixed-rate loans, the current fixed rate will apply during the grace period.

c).- Other benefits:

• In any case, if you are in either section a) or b), downward interest rate limitation clauses provided in the mortgage loan contract, if any, will not apply indefinitely.

• Additionally, the Entity may consolidate all your debts incurred.

• The default interest rate will be moderated, becoming the result of adding 2% to the agreed remunerative interest rate on the outstanding principal.

• Likewise, early repayment of the mortgage loan or credit requested within 10 years after the approval of the restructuring plan will not entail compensation costs.

• The Entity will warn, if applicable, of the unviable nature of the restructuring plan, meaning one that sets a monthly mortgage payment exceeding 50% of the total income received by all members of the family unit.

• If you are a debtor in a restructuring plan under CBP 2012 where the principal repayment grace period has ended and you are within the exclusion threshold, you may request a second restructuring plan, with a five-year principal repayment grace period and the corresponding rate during the grace period (Euribor minus 0.10 for variable loans or the current fixed rate for fixed-rate loans). In this case, within 1 month from your new request, the Entity will update your solvency and, if viable, will prepare a new restructuring plan under the conditions of CBP 2012.

d).- Formalization of the debt restructuring:

The formalization of the measures contemplated in this section 1 must be executed by public deed, signed before a Notary by all parties involved in the operation. This Novation deed must be registered in the corresponding Property Registry. The registration of the deed in the corresponding Property Registry will have full effect, where appropriate, against intermediate registered creditors, even without their consent.

All expenses arising from the formalization before a Notary and the registration in the corresponding Property Registry of the Novation deed including the selected measures will be borne by the Entity.

2. Complementary measures: debt reduction

a).- If the application of the previous measures is deemed unviable, you have the option to request a reduction on the outstanding principal, which the Entity may accept or reject within one month from the confirmation of the unviability of the restructuring plan(*).

(*) For these purposes, a restructuring plan is considered unviable if it sets a monthly mortgage payment exceeding 50% of the total income received by all members of the family unit.

b).- To determine the reduction, the entity will use one of the following calculation methods and will notify you, in any case, of the results obtained, regardless of whether or not we decide to grant the reduction:

i. 25% reduction.

ii. Reduction equivalent to the difference between the repaid principal and the amount that maintains the same proportion to the total principal lent as the number of installments paid by the debtor to the total due.

iii. Reduction equivalent to half the difference between the current value of the property and the value resulting from subtracting from the initial appraisal value twice the difference with the loan granted, provided the former is less than the latter.

c).- You may also request this measure if you are in foreclosure proceedings where the auction has already been announced and, likewise, if, being within the exclusion threshold, you cannot opt for payment in kind because the property has charges subsequent to the mortgage.

There is no obligation for the Entity to grant this.

3. Substitute measures for foreclosure: Payment in kind of the primary residence.

a).- Within twenty-four months from the restructuring request, and provided that the restructuring and, where applicable, the complementary measures are not viable, you may request payment in kind of your primary residence. In these cases, the Entity will be obliged to accept the delivery of the mortgaged property by you, to the Entity itself or a third party we designate, with the debt being definitively cancelled.

b).- You may also submit this request if you have an approved and ongoing restructuring plan and, after twenty-four months from the restructuring request, you find it impossible to make the payments. In this case, the entity will assess the possible delivery of the mortgaged property by you, to the entity itself or a third party we designate, with the debt being definitively cancelled.

c).- Payment in kind will result in the total cancellation of the debt secured by the mortgage and your personal and third-party liabilities to the Entity for the same debt.

d).- If you so request, at the time of requesting payment in kind, you may remain in the property as a tenant for a period of 2 years, paying an annual rent of 3% of the total amount of the debt at the time of payment in kind. During this period, non-payment of rent will accrue a default interest of 10%.

After the 2-year contract period, if the tenant does not vacate the property, the landlord may initiate eviction proceedings, in which the unpaid rent will be claimed at the market rate for the months the property was unduly occupied.

e).- We may agree to the assignment of part of the capital gain generated by the sale of the property, in consideration for your cooperation in the transfer.

f).- This measure will not apply in cases where foreclosure proceedings have already announced the auction, or where the property is encumbered with charges subsequent to the mortgage.

g).- Only mortgages constituted as security for loans or credits granted, where the purchase price of the mortgaged property does not exceed the amount resulting from multiplying the area of the property by the average price per square meter for the year of acquisition of the property and the province where the property is located, with an absolute limit of €250,000, may benefit from this payment in kind measure. Properties acquired before 1995 will use the average reference price for the year 1995.

1.- You will be considered within the "exclusion threshold" when all the following circumstances occur together:

a. That the total income of the members of the family unit (**) to which you belong does not exceed the following required limits:

i. In general, the limit of three (3) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) (***).

ii. This limit will be four (4) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) if any member of the family unit has a declared disability greater than 33 percent, dependency status, or a disease that demonstrably and permanently incapacitates them from working.

iii. The limit will be five (5) times the Public Indicator of Multiple Effect Income (IPREM) annual with fourteen payments (hereinafter IPREM) if the mortgage debtor is a person with cerebral palsy, mental illness, or intellectual disability, with a recognized degree of disability equal to or greater than 33 percent, or a person with physical or sensory disability, with a recognized degree of disability equal to or greater than 65 percent, as well as in cases of serious illness that demonstrably incapacitates the person or their caregiver from working.

(**) The family unit is composed of the debtor, their spouse not legally separated or registered domestic partner, and children, regardless of age, who reside in the home, including those linked by guardianship, custody, or foster care.

(***)IPREM 2023 MONTHLY AMOUNT = €600. IPREM 2023 ANNUAL AMOUNT (including prorated extra payments) = €8,400. Three times IPREM 2023 = €25,200.

b. That, in the 4 years prior to the application, the family unit to which you belong has suffered a significant change in economic circumstances in terms of housing affordability, or that during this period, special family vulnerability circumstances have arisen.

It is understood that the following are special family vulnerability circumstances:

1. Large families, in accordance with current legislation.

2. Single-parent family units with dependent children.

3. Family units including a minor.

4. Family units in which any member has a declared disability greater than 33 percent, dependency status, or a disease that demonstrably and permanently incapacitates them from working.

5. Family units in which one or more people live in the same home with the mortgage holder or their spouse, related up to the third degree of consanguinity or affinity, and who are in a personal situation of disability, dependency, or serious illness that demonstrably incapacitates them temporarily or permanently from working.

6. Family units in which there is a victim of gender-based violence or sexual trafficking or exploitation.

7. The debtor over sixty years old, even if they do not meet the requirements to be considered a family unit as provided in letter a) of this section.

c. That the mortgage payment exceeds 50% of the net income received by all members of the family unit. This percentage will be 40% when any of these members meet the circumstances provided in the second paragraph of letter a).

For the purposes of the above letters a) and b), pensioners of the Social Security system who have been recognized with a permanent disability pension at the total, absolute, or major disability level, and pensioners of passive classes who have been recognized with a retirement or retirement pension for permanent incapacity for service or unfitness, will be considered as having a disability of 33 percent or more.

2.- For the application of the complementary and substitute measures provided in CBP 2012, the following requirements must also be met:

a) That the members of the family unit lack any other assets or sufficient patrimonial rights to meet the debt.

b) That it is a loan or credit secured by a mortgage on the only property owned by the debtor(s) and granted for its acquisition.

c) That it is a loan or credit without other guarantees, real or personal, or, if such guarantees exist, that there are no other assets or sufficient patrimonial rights to meet the debt.

d) In the case of co-debtors who are not part of the family unit, they must meet the circumstances of sections a), b), and c) above.

The occurrence of the circumstances referred to in the previous section must be proven to the Entity by submitting the following documentation:

a. Proof of income received by family unit members:

-Income certificate, and where applicable, certificate regarding the filing of the Wealth Tax issued by the AEAT, or the competent body of the Autonomous Community, as appropriate, for the last tax year.

-Last 3 payslips received

-Certificate issued by the managing entity of benefits showing the monthly amount received as unemployment benefits or subsidies.

-Certificate proving social wages, minimum insertion income, minimum vital income, or similar social assistance granted by the State, autonomous communities, and local entities.

-In the case of self-employed workers receiving the benefit for cessation of activity, the certificate issued by the managing body showing the monthly amount received.

b. Number of people living in the home:

-Family book or document proving registration as a domestic partnership.

-Certificate of registration (empadronamiento) for people registered at the address, referring to the time of submission of supporting documents and six months prior.

-Declaration of disability, dependency, or permanent incapacity to work.

c. Ownership of assets:

-Certificates of ownership issued by the Property Registry for each member of the family unit.

-Deeds of purchase of the primary residence, as well as the deeds of constitution of the mortgage guarantee and subsequent modifications, and other supporting documents, if any, for the rest of the personal or real guarantees constituted.

d. Responsible declaration regarding compliance with the requirements to be considered within the exclusion threshold according to the model approved by the Control Commission established to monitor CBP 2012 (****)

(****) You can obtain this model by clicking hereYou will be redirected to another website

If you provide all the required documentation and meet all the requirements to be considered within the “exclusion threshold”, you may apply for the indicated measures, provided that the Entity is adhered to CBP 2012 at the time of your application.

To do so, you must fill out this online application form.You will be redirected to another website

To continue with the process, you will need to sign the Application Form provided at your ABANCA branch, submitting all the required documentation together (including the Responsible Declaration regarding compliance with the requirements to be considered within the "exclusion threshold").

If you have contracted Mobile Banking or Online Banking, you may be able to sign the CBP 2012 Application Form and Responsible Declaration via remote signature.

The submission of all required documentation, together with the Application Form, is an essential requirement to begin processing your request. Please make sure you attach everything correctly.

The CBP 2012 application will be effective when you provide all the required documentation and it is verified that you meet all the requirements to be within the exclusion threshold.

For example, if you submit the application along with the necessary documentation and it is verified on June 24 that you are eligible by meeting the eligibility criteria, the next installment you pay, considering the new measures, if the loan is up to date, will be July's.

We will inform you promptly if you meet the requirements and can benefit from the alternative measures provided in CBP 2012, or, if not, the reasons why you cannot benefit from them.

The improper application of these measures will mean that:

1. The debtor of a loan or credit secured by a mortgage who has benefited from both the restructuring measures and the provisions of CBP 2012 without meeting the requirements indicated above will be liable for any damages that may have occurred, as well as all expenses generated by the application of these flexibility measures, without prejudice to any other liabilities that the debtor's conduct may give rise to.

2. The amount of damages, losses, and expenses may not be less than the benefit unduly obtained by the application of the rule.

3. The debtor who voluntarily and deliberately seeks to place themselves or remain within the exclusion threshold in order to obtain the application of these measures will also be liable, with the burden of proof of this circumstance resting with the entity with which the loan or credit was contracted.

The formalization of the contract by which any of the measures adopted under CBP 2012 are established will not be subject to the provisions of Articles 10, 11, 12, 14, and 15, and section 2 of the first transitional provision of Law 5/2019, of March 15, regulating real estate credit contracts.