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192C H A P T E R X Ifor the granting of surety bonds that secure credit operations, some of which are mentionedbelow:a) Surety institutions may only post surety bonds that secure credit operations inthe case of payments derived from transactions involving the purchase and saleof goods and services commercially distributed; payments derived from creditsdocumented in negotiable instruments recorded in the National Registry ofSecurities (Registro Nacional de Valores, RNV); payments derived from financiallease contracts; payments derived from negotiable instrument discounts or factoringcontracts, etc.;b) These surety bonds will be posted only after analysis and approval by the headquarters,branches, or service offices of the surety institution;c) They may only be furnished to legal entities;d) The surety institutions can agree on deductibles with the beneficiary in relation tothe amount secured;e) An insurance policy for damages must first be contracted in favor of the suretyinstitution for the entire period during which the surety bond is in effect, coveringthe goods underlying the security bond, and a life insurance policy covering thedebtor when this party is an individual under the age of 65;f) The duration of the surety bonds must be specified. Their renewal or extensioncannot be automatic and the bonds will be automatically cancelled at the end oftheir agreed-upon term;g) In the case of default on the secured obligation, the beneficiary must suspend theoperations that underlie the surety bond and, if this is not done, new operationswill not be secured unless the surety institution grants its consent in writing.2.2. Requirements for the Formation of a Surety Bond ContractThe surety bond contract must be in writing and must incorporate the correspondingsurety bond policy in the contract itself, which must also meet the requirements indicatedin the Federal Law of Surety Institutions (Ley Federal de Instituciones de Fianzas),such as:a) The names of the beneficiary, debtor, applicant, and surety institution;b) The secured obligation;c) The amount the surety institution will guarantee;d) The term of the surety bond;e) The rights and obligations of the surety institution and the beneficiary.In the event of default, claims must be filed in writing either with the headquarters,branches, or service offices of the surety institution, accompanied by the original