ARTICLE 191: DESTINATION OF THE ASSETS AWARDED TO THE FEDERAL TAX AUTHORITIES

When there are no bidders or legal bidders have not been submitted, the authority will award the property. In this case the value of the award will be 60% of the appraisal value.

The assets that are awarded in favor of the federal tax authorities, may be donated for public works or services, or to welfare or charitable institutions authorized to receive donations deductible from income tax.

The award will be considered formalized once the executing authority signs the corresponding awarding act.

When the transfer of goods must be registered in the Public Property Registry (Registro Público de la Propiedad), the awarding act duly signed by the executing authority shall have the character of a public deed and shall be the public document that shall be considered as testimony of deed for the purposes of registration in said record.

Of the income obtained by auctioning of the assets, decreased with the administration and maintenance expenses, 5% will be allocated to a fund of administration and maintenance of said assets, which will be constituted in the Treasury of the Federation (Tesorería de la Federación), in accordance with the rules general issues issued by the Secretary of Finance and Public Credit (Secretaría de Hacienda y Crédito Público). Once the assets have been auctioned off, the tax authority must reimburse the resources obtained from said fund and, if there is any remaining, 5% of the income obtained for its capitalization will be delivered.

The assets awarded by the tax authorities in accordance with the provisions of this article, will be considered, for all legal purposes, as assets not subject to the regime of the public domain of the nation, until they are destined or donated for public works or services in the terms of this article.

For the purposes of article 25 of the Federation Treasury Service Law (Ley del Servicio de Tesorería de la Federación), the awards will have the character of dation in payments.