Securities and Issues

If the payment date does not correspond to a business day, interest on TIPS are paid on the immediately following business day. No interest shall be accrued for the period between the payment date and the immediately following business day. Without detriment to the foregoing, if the last payment date does not correspond to a business day, interest on TIPS will be paid on the immediately following business day. In such cases, interest on TIPS will be accrued for the period between the last payment date and the immediately following business day.

Principal amortization is based on the flows generated by the mortgage loans securitized. Interest and principal payments to the bondholders are made on a monthly basis starting on the issue date. On each payment date, they are based on the value in effect on the corresponding payment date and, in all cases, according to the payment priority.

The minimum underwriting amount of the TIPS on the primary market will be Ten Million Colombian pesos (COP 10,000,000). The minimum amount of the TIPS-UVR underwriting in the primary market will be the equivalent to 100,000 UVRs.

a. Issues (Primary Market) For each issue, Titularizadora determines the underwriter firms, stockbrokers that will be in charge of giving advice to the interested investors and support the promotion of the securities. In order to participate in the primary underwriting (auction) of securities, investors will contact any of the brokers authorized to act as underwriters and put a purchase offer for the securities through said brokers. b.

The origin of Mortgage-Backed Securities is the purchase of mortgage loans by Titularizadora from entities that grant mortgage loans to the public. The mortgage loans purchased form a Universalidad and the investors that purchase the securities in a securitization process are entitled to receive the money flows derived from said securities and other rights as set out in the rules of the Issue. With the money received for the loans (installment payments), Titularizadora pays principal and interest of the securities.

These are the assets that form part of the Universalidad. They include without limitation the mortgage loans, all the primary and additional rights derived from said loans, the rights in and to the Insurance, the rights in and to FRECH and the Additional credit enhancement mechanisms, the assets derived from or related to the TC Facility Agreement, and any other right arising from the mortgage loans or its collaterals. For more information please see the Issue Prospectuses in section Issues, under Issue Information.

Yes. The Underlying Assets shall not be, under any circumstances, returned to Titularizadora or Authorized Sellers´ equity. Pursuant to Law 546/1999 §12 and Law 964/2005 §68, the equity isolation entails that the Underlying Assets in no case will be part of the available asset pool of Titularizadora or Authorized Sellers´ creditors. Therefore, said Underlying Assets cannot be affected by or included in any proceedings of liquidation, bankruptcy or similar proceedings.

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.

They are fixed income securities based on mortgage loans with amortizations that reflect the performance of the mortgage loans that support them. "TIPS" is the name given to mortgage-backed securities issued by Titularizadora Colombiana.