On the redemption date set for each security, or the first business day that follows, the Book-Entry System will credit the nominal amount of the redeemed security balances in the Bank of Spain cash account specified as domicile by the Management Institutions and other account holders, debiting the same amount in the corresponding securities account.
The Management Institutions (on their own and third parties' behalf) and Account Holders (on their own behalf only) wishing to opt for the voluntary redemption of securities, when this option was provided for in the issue terms, will notify such request by fax on the date and at the time established in each case by the Book-Entry System.
Requests for voluntary redemption imply that the applicant is then in possession of a sufficient balance of the security to be redeemed, free of resale commitments, and that it may only draw on such balance by means of repo transactions till the day before redemption. As such, the voluntary early redemption option shall not apply to balances subject to re-sale commitments and balances immobilised in the Book-Entry System.
On the day of redemption, the Book-Entry System will credit the nominal amount of these securities in each institution's cash account, after debiting the same amount in the corresponding securities account.
The cash balancing entries for redemption of balances corresponding to securities immobilised in respect of guarantees, pledges etc., shall remain untouched until such immobilisation is lifted, as per the procedure set out in Bank of Spain Circular 16/1987.
If issue conditions provide for proportional redemption, this will be carried out as described above.