La Hipotecaria, S. A. acting as trustee, according to the terms and conditions of the Fifth Mortgage Trust, incorporated December 29, 2003 by La Hipotecaria (Holding) Inc. as trustor and beneficiary.
MBS Characteristics
MBS (Mortgage-Backed Securities) are issue in two (2) series in denominations of $1,000 each in the form of macro-titles.
Issue Amount
$10,000,000: Series A; $7,500,000 and Series B; $2,500,000.
Maturity Date
The maturity date of both series is March 26, 2033 or when the last mortgage loan in the trust is cancelled in full, whichever occurs last.
Repayment of Capital
In the case of Series A, the issuer will make partial quarterly repayments of capital, and the case of Series B, the issuer will make annual repayments of capital.
Priority of Series A in Capital Payments:
The payment of capital of the MBS Series A is senior to the payments of capital of the MBS Series B. (See Section 2 of Part VI of the Prospectus.)
Interest Rate, Series A
The interest rate of Series A is indexed to 2.00% below the Reference Rate published quarterly by the Banking Superintendent of Panama.
Interest Rate, Series B
Series B will receive payments of Ordinary Interest basted on an interest rate indexed to 1.50% below the Reference Rate published quarterly by the Banking Superintendent of Panama. Additionally, the Series B will receive extraordinary interest basted on the balance in the interest account of the Trust, after debiting the account according to the terms and conditions of the Administration Agreement and Trust Agreements, but prior to debiting the account for payment of extraordinary interest to the holders of the Series B.
Priority of Interest Payments to Series A:
The payment of interest of the MBS Series A is senior to the payments of interest of the MBS Series B. (See Section 2 of Part VI of the Prospectus.)
Frequency of Interest Payments:
The Series A will pay interest four times per year on January 1, April 1, July 1 and October 1. Series B will pay interest once per year on July 10.
Base for Interest Calculation
365 calendar days
Form of Payment:
All interest and capital will be paid in dollars of the United States of America. While all MBS are represented by macro-titles, payments will be made through authorized accounts of Latin Clear.
Guarantee
Both series are guaranteed solely by the general credit of the trust and a separate Guarantee Trust that holds legal title to all mortgage loans and Banco Continental, S.A. serves as independent trustee of the Guarantee Trust.
Use of Funds
The trustee will use the funds from this MBS issue to purchase a defined portfolio of mortgage loans.
Prior Redemption
Holders of both series will receive partial and periodic payments of capital approximately equivalent to the amortization of capital of the mortgages that comprise the trust.
Fiscal Treatment
Interest payments on these MBS are exempt from local income taxes as per Panamanian law.
Trustee and Administrator:
La Hipotecaria, S. A.
Trustee of Guarantee Trust:
Banco Continental de Panama, S.A.
Investment Bankers:
Bantal Brokers, S. A.
Payment Agent
Banco Continental de Panama, S.A.
Stock Exchange
Bolsa de Valores de Panama, S. A.
Custody Agents
Central Latinoamericana de Valores, S. A. (LatinClear).
