A Universalidad is a pool of assets (mortgage loans) comprised of loans purchased to mortgage banks. This pool of mortgage loans is isolated from the shareholders equities of Titularizadora and of loan Sellers. In no case may the mortgage loans be returned to the respective shareholders equity of either the Seller or Titularizadora. The ´´Universalidad´´ is an innovative concept in Colombian laws and is considered as a remote bankruptcy vehicle. The Universalidad enables the absolute isolation of the assets from the Issuer´s and the Seller´s shareholder equities because in no case can the assets (mortgage loans) be affected by any bankruptcy processes (procesos concursales) such as composition with creditors or liquidation proceedings. TIPS are issued upon the Universalidad created by Titularizadora in furtherance of its powers under law and bylaws by releasing the Rules of Issue
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