LAW OF FINANCIAL ENTITIES DECRETO N° 1,695 Modifícase partially.

Bs. As., 31/5/74

VISTO Act No. 20.574 amending various provisions of Decree-Law No. 18,061/69 (registered as Act No. 18,061) supplemented by Decree-Law 20.041/72 (registered as Act No. 20.041), and the other articles of the aforementioned Decree-Law are ratified, and

CONSIDERING:

Article 2 of the Act 20.574 empowers the executive branch of the Nation to order the text of the decree-laws with the amendments introduced by the Act.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 Artículo The articulation of the Financial Entities Act, Decree-Law No. 18.061/69 (registered as Act No. 18,061) and the provisions supplementing it by Decree-Law 20.041/72 (registered as Act No. 20.041); with the amendments introduced by Act No. 20,574, it shall be quoted as follows:

LAW OF FINANCIAL ENTITIES

(Ordained text)

PART I

GENERAL REGIME

CHAPTER I

Objectives and authority for implementation

Article 1 Esta This law is intended to regulate the functioning of the financial entities covered by its provisions, in accordance with the following fundamental objectives:

(a) Comprehensive organization and development of the financial market to contribute to the self-sustained growth of different regions of the country;

(b) Consolidation and efficiency of the financial entities considered national for the purposes of this law; adequacy of their operational forms to the needs of the market, and fluidity among the different sectors that integrate it;

(c) Optimal capture of public savings by authorized financial entities to adequately address the credit needs of the production, distribution, consumption and export of goods and services;

(d) Ordained promotion of regional or local financial entities within the country, and promotion of mergers to achieve the maximum benefit for the community.

Article 2 . The Central Bank of the Argentine Republic will be responsible for the application of this law with the powers and obligations that it and its organic letter attribute to it. In the exercise of this function, it must ensure the fulfilment of the objectives and other provisions of this law; in accordance with the directives of economic-financial policy that the national government, through the Ministry of Economy, dictates in this regard.

CHAPTER II

Entities and activities

Article 3 . These are covered by this law, individuals or entities that regularly measure between the supply and the public demand for financial resources.

Article 4 . Without prejudice to their institutional regime, the financial entities of the Nation, the provinces and the municipalities shall be governed by the provisions of this law which apply to them for their activities.

Article 5 . To entities that measure between supply and demand for financial resources but are subject to special legal regimes, and as long as the Central Bank does not declare them covered by the rules of law 20.520 (Law on Nationalization and Guarantee of Banking Deposits), only the provisions of this law on monetary and credit policy shall apply to them.

Article 6 . The provisions of this law shall not apply to persons and entities who habitually act on the credit market without mediating between supply and demand for financial resources, except when advised by reasons of monetary and credit policy and the volume of the activity concerned.

CHAPTER III

Authorization and operating conditions

Article 7 . The entities covered by this law may not initiate their activities without prior authorization from the Central Bank. The merger or transmission of their trade funds will also require prior authorization. The opening of any kind of subsidiary shall be subject to the same authorization.

Such a requirement must not be met by the financial entities of the Nation and the provinces, when they operate within their respective jurisdictions. Without prejudice to their institutional regime, they may not create new national or provincial entities, nor establish subsidiaries, without prior advice to the Central Bank, which should be issued on their economic-financial feasibility, taking care that there is no inconvenient overlap in the area concerned.

Article 8 . In considering the authorization to operate, the appropriateness of the initiative will be evaluated and the characteristics of the project, the general conditions of the financial market, the particulars of the activity in question, the background and responsibility of the applicants and the situation of the respective areas of influence will be pondered.

If authorization is required for the opening of subsidiaries, the effectiveness of the action carried out by the main establishment and its subsidiaries will be appreciated; in principle, preference will be given to national entities and, among them, to those of the interior of the country when they wish to expand within their areas of influence and neighboring.

Article 9 . The authorization to foreign entities to establish themselves in the country can only be granted to commercial banks or investment, and it will be conditioned that they may favor financial and commercial relations with the outside. If these are official entities, the authorization to operate may be subject to the conclusion of agreements with the country of origin. Approval law shall be required in all cases.

Established foreign entities and those wishing to be established must be based effectively and permanently in the country, the capitals assigned to their local houses and shall be subject to Argentine laws and tribunals. The creditors in the country shall enjoy privilege over the assets that such entities possess within the national territory.

The activity in the country of representatives of external financial entities shall be conditioned upon the prior authorization of the Central Bank and the regulations it establishes.

Article 10 . In order to determine for the purposes of this law whether an entity should be considered national or foreign, of the Capital or of the interior; it will be attended not only to the place of its constitution and to its home, but also to the composition of the Directory and the main groups of shareholders, to the structure and composition of its portfolios, advertising and to the nature and extent of its links with related entities.

It will be an indispensable condition for the entity to be considered a national, for the Argentine shareholders to have a share of more than eighty percent of the capital and votes of society. The Central Bank will carry the corresponding registration.

For the purposes set out in the preceding section, all natural persons, even those who review the quality of foreign nationals, shall be considered as shareholders, for having retained their nationality of origin, provided that they are endomiciled in the country with a minimum effective and permanent residence of ten years. In the case of legal persons, the Central Bank is empowered to adopt such remedies as it deems necessary to establish the nationality of those legal persons which are the owners of shares entitled to vote of the entities held in the form of an anonymous company, by application of the guidelines set out in the preceding paragraph.

The directories of the entities formed in the form of anonymous society, its members and the syndicates, shall promptly report on any negotiation of actions capable of altering the structure of the respective shareholder groups. The same obligation shall apply to alienating and acquiring persons. The Central Bank will consider the opportunity and convenience of the transfer, having the power to deny its approval. The authorization to operate shall be revoked when there have been fundamental changes in nationality or other basic conditions that were taken into account in order to agree on them. As for those responsible, the sanctions of article 35.

Article 11. Las The financial entities of the Nation, the provinces and the municipalities shall be constituted in the form of their organic letters. The other entities shall do so in the form of an anonymous company, except:

(a) The branches of foreign entities that must have in the country a representation with sufficient powers in accordance with Argentine law;

(b) Commercial banks, which may also be formed as a cooperative society;

(c) Credit boxes, which may also be formed in the form of a cooperative society or civil association.

The shares entitled to vote of the financial entities constituted in the form of an anonymous company shall be nominative.

Article 12. s They will not be able to act as promoters, founders, directors, administrators, trustees, liquidators or managers of the entities covered by this law:

(a) Offences committed for profit or for offences against the public faith:

(b) Persons convicted of offences committed in the establishment, operation and settlement of entities;

(c) Convicted persons with disqualified access to public office;

(d) Convicted for other common crimes, excluding culposal offences, with custodial sentences or disqualification, until another time equals twice the sentence has elapsed;

(e) Those who are subjected to pretrial detention for the offences listed in the preceding paragraphs, until their final dismissal;

(f) Failed by fraudulent or guilty bankruptcy;

(g) The other failed and the contested up to five years after their rehabilitation;

(h) Morous debtors of entities;

(i) Disabled for the use of current bank and account accounts in credit boxes, up to one year after rehabilitation;

(j) Persons disqualified by the application of article 35 (d) of this law, while their punishment lasts;

(k) Those who by competent authority have been declared responsible for irregularities in the government and administration of the entities.

Article 13. La At least half of the members of the directories, boards of directors or representations of the entities must have their real home within the influence radius of the main establishment or its affiliates.

Article 14. . Entities may close their establishments and subsidiaries upon notice given to the Central Bank in advance not less than three months.

CHAPTER IV

Protection of public faith

Article 15. . Only authorized entities can use the denominations of "bank", "financial company", "credit society for consumption", "credit box" or its derivatives, as well as the characteristic terms of the financial operations covered by this law.

Any publicity or action aimed at raising public funds is prohibited; for persons or entities not authorized to operate in the country.

Individuals or entities acting on the credit market may not use denominations that offer doubts about their nature or character, or hinder their individualization on account of the identity or marked similarity of their respective names. The advertising and documentation they use may not contain inaccurate or unequivocal references.

The Central Bank, proof of any violation of the requirements contained in this article, shall be entitled to:

(a) Have the immediate and definitive cessation of the use of the name, name or advertising; and

(b) Implement the penalties provided for in article 35.

PART II

OPERATIONS

CHAPTER I

Article 16. , The operations provided for in this title may be carried out and others considered to be consistent with their activity, the following types of entities:

(a) Commercial banks;

(b) Investment banks;

(c) Mortgage banks;

(d) Financial companies;

(e) Credit companies for consumption.

(f) Credit boxes.

The preceding enumeration is not exclusive to other classes of entities that, for carrying out the activities provided for in Article 3, are covered by this law.

The receipt of deposits or any other form of collection of funds from the public, irrespective of their nature or denomination, by the financial entities authorized to operate within the regime of this law, may only be carried out by the Central Bank, in accordance with the provisions of Act No. 20.520 (Nationalization and guarantee of bank deposits).

The financial entities of the Nation, the provinces and the municipalities, as regards the regime of receipt of deposits and other third-party funds, shall also be the Central Bank's officers, in accordance with the provisions of the aforementioned Act 20.520 (the Nationalization and Guarantee of Bank Deposits).

The passive operations provided for in this title that amount to the collection of financial resources by the various entities should be considered with the above scope and character. The active operations will be carried out by the entities making use of the advances in account or recounts or other funds provided by the Central Bank, without prejudice to those other active operations that may continue to carry out with their own capitals and reserves.

CHAPTER II

Commercial banks

Article 17. Los Commercial banks can:

(a) Receiving deposits in sight and time;

(b) Grant short-term credits for full and other compensable payments;

(c) Unveil, buy and sell letters, you pay, clothes, checks, turns and other negotiable documents;

(d) Grant guarantees, bonds or other guarantees; accept letters, turns and other releases; transfer funds and issue and accept letters of credit;

(e) Grant advances on sales credits, purchase, take risks, manage collection and provide technical and administrative assistance;

(f) Make investments in public securities;

(g) Make investments of a transitory nature in easily liquidable placements;

(h) Make investments in new emissions of shares or obligations, in accordance with the regulations established;

(i) Receiving values with custody and providing other services related to their activity;

(j) Manage the purchase and sale of movable values and act as agents paying dividends, amortizations and interests;

(k) Conduct operations in foreign currency, upon authorization;

(l) Implementing mandates and related commissions with their operations;

(m) Perform, upon authorization, any of the operations envisaged for the other classes of entities covered by this law.

CHAPTER III

Investment bank

Article 18. Los Investment banks can:

(a) To issue bonds, obligations and certificates of participation in borrowing and to receive term deposits in accordance with the regulations established;

(b) Provide medium- and long-term and complementary and limited short-term credits.

(c) To grant guarantees, bonds or other guarantees related to operations involved;

(d) Make investments in furniture values linked to transactions involving them; pre-finance their emissions and place them;

(e) Make investments of a transitory nature in easily liquidable placements;

(f) Act as trustees and depositaries of common investment funds, administer portfolios of movable values and fulfill other trust orders;

(g) Obtain foreign credits and act as intermediaries of credits obtained in national and foreign currency.

(h) Conduct operations in foreign currency, upon authorization;

(i) Locating capital goods acquired for this purpose;

(j) Implement mandates and related commissions with their operations.

CHAPTER IV

Mortgage banks

Article 19. Los Mortgage banks can:

(a) Receiving deposits of participation in mortgage loans and special savings accounts;

(b) To issue securities and mortgage bonds;

(c) To grant credits for the acquisition, construction, expansion, reform, repair and maintenance of urban or rural properties, and the replacement of mortgage charges made with the same destination;

(d) To grant guarantees, bonds or other guarantees related to transactions involving them;

(e) Make investments of a transitory nature in easily liquidable placements;

(f) Obtain foreign credits and act as intermediaries of credits obtained in national and foreign currency;

(g) Implementing mandates and related commissions with their operations.

CHAPTER V

Financial companies

Article 20. Las Financial companies can:

(a) Receiving term deposits excluding savings deposits;

(b) Issue and place letters and notes;

(c) Grants for the purchase and sale of goods payable in instalments or on term and other compensable personal loans;

(d) Grant guarantees, bonds or other guarantees;

(e) Grant advances on sales credits, purchase, take risks, manage collection and provide technical and administrative assistance;

(f) Make investments in furniture values linked to transactions involving, pre-financing and placing them;

(g) Make investments of a transitory nature in easily liquidable placements;

(h) Manage the purchase and sale of movable values and act as agents paying dividends, amortizations and interests;

(i) To act as trustees and depositaries of common investment funds; to administer portfolios of movable values and to fulfil other trust orders;

(j) Obtain foreign credits and act as intermediaries of credits obtained in national and foreign currency, upon authorization;

(k) Locating capital goods acquired for this purpose;

(l) Implementing mandates and related commissions with their operations.

CHAPTER VI

Credit companies for consumption

Article 21. Las Consumer credit companies can:

(a) Receiving term deposits;

(b) Issue and accept negotiable documents originating in relations with their adherents;

(c) Grant compensable credits for the acquisition of goods and for the payment of works or services, by means of booklets, orders, licences, coupons and other purchasing instruments that are usable to their adherents;

(d) Make investments of a transitory nature in easily liquidable placements;

(e) Implementing mandates and related commissions with their operations.

CHAPTER VII

Credit funds

Article 22. Las Credit boxes can:

(a) Receiving deposits in sight and time;

(b) Grant short- and medium-term credits for small entrepreneurs and producers, professionals, artisans, employees, workers, individuals and institutions of public good, linked to the means in which the boxes develop their activities;

(c) Grant guarantees, bonds or other guarantees;

(d) Make investments of a transitory nature in easily liquidable placements;

(e) Implementing mandates and related commissions with their operations.

CHAPTER VIII

Operations with the Central Bank of the Argentine Republic

Article 23. Las The entities covered by this law may use advances in account or rediscount their portfolios in the Central Bank of the Argentine Republic within the limits, conditions and guarantees established by the latter.

CHAPTER IX

Prohibited and limited operations

Article 24. ) A) Entities may not:

(a) Exploiting commercial, industrial, agricultural or other enterprises on their own;

(b) Buy real property that is not for own use;

(c) To establish levies on their property without prior authorization;

(d) Accept your own actions in guarantee;

(e) Operate with their directors and administrators and with companies or people associated with them, in conditions more favorable than those agreed from ordinary to clientele.

B) Entities, with the exception of commercial banks, credit boxes and specially authorized investment banks, may not:

(a) To open and maintain bank current or other accounts that participate in their nature;

(b) Issue rotations and transfer from square to square.

C) Entities, with the exception of investment banks and financial companies, may not participate in commercial, industrial, agricultural or other enterprises.

D) Entities, with the exception of investment banks and financial companies, may not invest in shares and obligations. Commercial banks may do so under the conditions set out in article 17, inc. (h).

E) Entities may not be holders of actions or of any other type of participation, directly or indirectly, in the capital or direction of other financial entities of different kind or nature.

The trade banks, which may be holders of shares or have participation in other commercial banks, investment or mortgages, are exempt from the said prohibition, with the purpose of establishing a common entity for purposes other than those of those participating entities, provided that it measures prior and expresses authorization from the Central Bank of the Argentine Republic.

F) They are exempt from the above prohibitions:

(a) The acquisition of property, actions and obligations in defence or in payment of credits. Entities shall liquidate or amortize such assets in accordance with the regulations established;

(b) Investment in shares and obligations of public service companies to the extent necessary to obtain their benefit.

PART III

REDESCUENT, LIQUIDEZ AND SOLVENCIA

CHAPTER I

Regulations

Article 25. Las The entities covered by this law shall conform to the rules that are laid down on:

(a) Advances in account or accounts;

(b) Limits to the expansion of credit for different types of loans and other investment operations;

(c) Bails, guarantees and other eventual responsibilities;

(d) Timelines, interest rates and commissions of their operations;

(e) Asset mobilization;

(f) Proportions to keep between:

Credits and responsibility and status of applicants,

Credits and capital and reserves of the grantor entities.

Capital and reserves and different types of assets.

Article 26. . The entities will pay the Central Bank charges up to five times on the maximum rate for advances and rediscounts for excesses in the use of the operating limits in which they incur.

CHAPTER II

Repatrimonial responsibility

Article 27. . The entities will maintain the minimum capitals that are established for each class according to the economic and financial conditions of the areas in which they operate, or for the empowerment of subsidiaries and special services that require prior authorization.

Article 28. . Entities should allocate annually to the legal reserve fund the proportion of their established profits, which will not exceed twenty percent. They will not be able to distribute or re-submit utilities prior to the approval of the results of the exercise.

CHAPTER III

Regularization and sanitation

Article 29. La The entity that does not comply with the provisions of this title must provide the relevant explanations within the time frames established.

The entity shall submit within thirty days, from the required date, a plan for regularization and sanitation, when the Central Bank of the Argentine Republic considers that the solvency or liquidity of the latter will be affected, or if the latter has incurred excesses in the use of the operating limits assigned to which article 26. The Central Bank may, without prejudice to this, designate venettors with veto power whose resolutions will be appealed only to the president of the said Institution, demand the constitution of guarantees and limit or prohibit the distribution or remesa of profits. The Central Bank should instruct the relevant summary in the light of the situation provided for in the preceding paragraph, in which the entity shall have the opportunity to provide all the explanations it deems relevant, to submit on its merits in the term envisaged for the submission of the regularization and sanitation plan, and to oppose all the defences that they make to their rights.

The lack of submission, rejection or non-compliance of regularization and sanitation schemes will enable the Central Bank to resolve, without any other procedure, the revocation of the authorization to function as a financial entity, without prejudice to the application of the penalties provided for in Article 35.

PART IV

INFORMATION, CONTABLE AND CONTRACTING REGIME

CHAPTER I

Information, accounting and balance sheets

Article 30. Las The entities covered by this law will present the balance sheets and other accounting states and information requested by the Central Bank, within the time frames, conditions and forms established.

The accounting of the entities shall be in accordance with the rules of the Central Bank.

Within ninety days of the closing date of the exercise, the entities shall publish, with no less than fifteen days in advance of the holding of the assembly convened for the purposes of their consideration, the general balance and their account of results certified by a professional inscribed in the registration of public accountant of the respective jurisdiction.

CHAPTER II

Controller

Article 31. El The Central Bank will exercise control over the entities covered by this law. The intervention of the control authorities on the basis of the corporate, national or provincial form shall be limited to the procedures related to the constitution of society and to the monitoring of compliance with the relevant legal, regulatory and statutory provisions.

Financial entities should give access to their accounting, books, correspondence, documents and papers, to officials designated by the Central Bank for their control or obtaining information. The same obligation shall be for credit users, in the event that a verification or summary is in place.

Article 32. . When unauthorized persons habitually act on the credit market, the Central Bank may require them information on the activity they develop and the display of their books and documents; if they refuse to provide it or display it, it may request a search warrant and the assistance of the public force.

It is considered especially punishable for the purposes of the previous section the mere intermediation in the placement of payés or any other type of bearer papers communicable by the simple delivery.

The Central Bank, verifying the conduct of operations that do not conform to the conditions specified in the provisions of this law, shall be entitled to:

(a) Have the immediate and definitive cessation of the activity; and

(b) Implement the penalties provided for in article 35.

PART V

Secret

Article 33. . The entities covered by this law will not be able to disclose their operations, nor the information they receive from their clients.

Only reports that require:

(a) Judges in judicial cases with the remedies established by the respective laws;

(b) The Central Bank, in the exercise of its counter-reference functions;

(c) National or provincial tax collection agencies, based on the following conditions:

It must refer to a particular controller.

An tax check must be in progress with respect to that responsible.

It must have been formally and previously required;

(d) The entities themselves, in accordance with the regulations issued.

The staff of the entities must keep absolute reservation on the information that comes to their knowledge.

Article 34. Las The information that the Central Bank receives or collects in the exercise of its countermeasure functions shall be strictly confidential. Such information shall not be admitted to trial, except in proceedings for common crimes and provided that they are directly linked to the facts under investigation.

The staff of the Central Bank must keep absolute reservation on the information that comes to their knowledge.

The information published by the Central Bank on the entities covered by this law will only show the totals of the different categories, which may at most contain the discrimination of the general balance and account of results mentioned in article 30. Such limitations do not reach operations made in the character of Central Bank officials, or link to the resources he authorizes them to use or provide them for the development of their activities.

PART VI

Sanctions and resources

Article 35. s They will be subject to sanction by the Central Bank:

Offences to this Act, its regulations and resolutions issued by the Central Bank in exercise of the powers accorded to it by its organic charter.

Sanctions shall be applied by the President of the Central Bank to individuals or entities while they are responsible for the offences set forth above, after a summary that shall be instructed with hearing of the accused subject to the rules of procedure established by the said Institution, and may consist, in isolation or cumulative form, of:

(a) Attention call.

(b) Appreciation.

(c) Fines of up to $1,000, which can be applied in solidarity to persons or entities responsible for violations;

(d) Temporary or permanent disqualification to serve as promoters, founders, directors, administrators, trustees, liquidators or managers of the entities covered by this law, without prejudice to promoting the application of the penalties set out in article 248 of the Criminal Code, when dealing with national, provincial, municipal or mixed entities;

(e) Revocation of authorization to operate.

If the criminal offence is seized from the case, the Central Bank will promote the criminal actions that are appropriate, in which case it may assume the quality of a complaining party.

Article 36. . The penalties set out in subparagraphs (a) and (b) of the previous article shall be appealed only by revocation before the president of the Central Bank; those referred to in subparagraphs (c), (d) and (e) of the same article shall be appealed, to the only devolutionary effect for the National Appeals Chamber in the Federal and Administrative Contentious of the Federal Capital. In the case of subparagraph (e), until the remedy is resolved, the Central Bank shall assume the intervention of the entity, replacing the legal representatives in their rights and powers, but shall not perform acts of disposition on the various items of the asset of the entity.

The resources should be filed and relied upon by the Central Bank within fifteen working days of the date of notification of the resolution. If the appeal is appealed, the proceedings must be brought to the Chamber within fifteen working days.

For the collection of fines under subparagraph (c) the Central Bank shall follow the procedure of fiscal execution provided for in the National Civil and Commercial Procedure Code. The simple copy of the resolution that applied the fine, signed by the president or the general manager of the Central Bank of the Argentine Republic, will be sufficient, without any other exceptions that may be opposed to those of prescription, waiting and payment documented.

The limitation of the action that arises from the infractions referred to in this article will be operated at the six years of the commission of the fact that configures it. This time limit is interrupted by the commission of another offence and by acts or procedures inherent in the execution of the summary. The limitation of the fine shall be operated on three years after the date of notification.

PART VII

DISOLUTION AND LIQUIDATION OF ENTITIES

CHAPTER I

Dissolution and liquidation by legal or statutory authorities

Article 37. . The legal or statutory authorities of the entities covered by this law which decide to dissolute them shall notify the Central Bank of the latter if the liquidation procedures are to be carried out.

Article 38. . Except for the case provided for in article 43, whichever is the cause of the dissolution of the entity, the Central Bank may, if it considers that there are sufficient guarantees, let the legal or statutory liquidators comply with the liquidation procedures.

CHAPTER II

Extrajudicial settlement

Rule 39. El The Central Bank may resolve the settlement of entities covered by this law;

(a) In cases of dissolution provided for in the Trade Code or in laws governing its existence as a legal person;

(b) In the cases provided for in articles 10, 29 and 35 (e) of this Act.

Article 40. La The resolution that provides for the settlement will be appealable to the only return effect for the National Appeals Chamber in the Federal Capital. The appeal must be filed and founded in the Central Bank within fifteen working days of notifying the resolution and the proceedings must be brought to the House within fifteen working days.

Until the appeal is resolved, the Central Bank will assume the intervention of the entity, replacing legal representatives in their rights and powers. As long as the intervention is maintained, the Central Bank will not be able to carry out acts of disposal of assets, unless special circumstances, duly founded, require it.

Article 41. . Solve the liquidation by the Central Bank, the Central Bank may request a search warrant and the assistance of the public force in fulfilling its resolution. The liquidation shall be carried out extrajudicially by applying the rules on the liquidation of companies of the Trade Code and supplementary laws, with the following modifications:

(a) The time limit for forming the inventory of social goods shall be ninety days counted from the seizure of the entity. For the preparation of the inventory, notary intervention will not be necessary;

(b) Quarterly reports will be made on the status of the liquidation, which will remain available to those interested in the liquidated entity ' s home;

(c) With the end of the liquidation operations, the Central Bank will be presented to the competent trade judge, accompanying the final balance with an explanatory memory of its results and with a project of distribution of funds, after deduction of the amounts necessary to cancel the debts that could not be satisfied. The presentation will be made by edicts published for three days in the newspapers of the place where the entity has had its social headquarters, one of which will be the legal advertisement. The recognized partners and creditors may only challenge the final balance of the liquidation and the draft distribution of funds within thirty working days of that of the last publication and it will be resolved by the judge in a single trial in which the contestants will have the right to intervene, as a party. The judgement handed down will still have effect on those who have not contested or participated in the trial.

After the thirty-day period without any challenge, or judicially resolved, both the balance sheet and the distribution project will be approved with any changes that may result from the judgement and will be distributed;

(d) The sums of money not claimed by its holders shall be deposited on behalf of the liquidation and the order of the judge for the ten-year term of publication of the judicial declaration of termination of the liquidation;

(e) Distributed the funds or, where appropriate, made the deposit indicated above, the judge, by a resolution that will be published for one day in the newspapers of the place where the entity has had its social headquarters, one of which will be the legal advertisements, shall declare the liquidation terminated and, thereafter, no action may be brought against it or against the Central Bank for its management as liquidator. The creditors of the entity may only act against it as long as the declaration of finalization of the liquidation has not been pronounced and only until the concurrence of the unrealized assets, undistributed funds or amounts not deposited, without prejudice to their actions against the partners individually;

(f) The books and documentation of the liquidated entity shall be deposited in the Central Bank for a period of ten years from the publication of the judicial declaration of termination of the liquidation, to which it will be destroyed.

CHAPTER III

Judicial settlement

Article 42. . Entities cannot be declared bankrupt. When requested by circumstances to bring it into effect under the relevant legislation, the judges shall dismiss the order and give intervention to the Central Bank who shall dispose of the settlement.

Article 43. de If the time to dispose of the liquidation of an entity covered by this law or subsequently the circumstances set forth in the respective legislation for bankruptcy to be appropriate, the competent trade judge shall declare at the request of the Central Bank, open the proceeding of unbroken settlement of the entity, which shall be subject to the requirements of the respective legislation with the following modifications:

(a) The functions of a syndicate, inventor and liquidator shall be performed by the Central Bank, which shall not receive fees for its management;

(b) The Central Bank may:

Recruit, from the liquidation, the necessary staff and establish their remuneration in accordance with the tasks assigned to it. Staff of the contracted liquidation entity will continue to benefit from the same benefits that were recognized prior to the liquidation, but their right to compensation for severance will be deferred until it is resolved to dispens definitively from their services.

Upload the assets of the entity in the conditions it considers most appropriate. The auction will be carried out by the specialized official banking institutions of the location of the goods or, if not, by the martyrs on the list of such institutions.

Apply the funds of the liquidating entity, before distributing, to the refund of the expenses and amounts referred to in article 47 of this Act.

Rule 44. . Since the submission of the Central Bank to the trade judge to request the opening of the unbroken settlement procedure of an entity, no creditor, for cause or pre-representation title, may initiate or continue acts of enforced execution on the assets of the entity, unless they are intended to collect a mortgage or pre-trial credit.

CHAPTER IV

Common provisions Article 45. In the exercise of the judicial or extrajudicial liquidator functions assigned to it by this law, the Central Bank of the Argentine Republic shall have the legal capacity to promote civil and criminal actions provided for in the respective legislation, against persons responsible for acts or omissions that caused the liquidation of the entity.

In criminal proceedings, the Central Bank of the Argentine Republic will be able to assume the role of a complaining party. It may also assume that same quality in criminal cases that are instructed on the basis of the characterization of conduct and measures relating to failure in cases of fraud or guilt in accordance with applicable repressive legislation.

Article 46. . The designations to represent the Central Bank in the performance of the functions assigned to it by this title can only fall on its officials.

Article 47. . The expenses of any kind incurred by the Central Bank of the Argentine Republic as a result of the performance of the functions assigned to it by this title and the funds allocated through advances in account or recounts in accordance with Article 23 of this Law, or any other concept, shall be refunded to any other creditor.

Article 48. . For the purposes of Article 793 of the Cod. Trade, certifications of current-account debt balances shall be signed with the signature of any of the officials designated by the Central Bank to serve as their representatives in liquidated entities.

CHAPTER V

Warranty regime

Article 49. La The Nation guarantees the return of all deposits and other third-party funds referred to in article 16, without any limitation depending on the amount or ownership.

PART VIII

Miscellaneous and transitional arrangements

Article 50. . In accordance with the objectives set out in Article 1 the Central Bank shall issue the regulations necessary for the implementation of this law, which shall be binding on the entities covered by it.

Rule 51. . The commercial banks currently qualified as nationals must conform to the proportion of participation of Argentine shareholders in the capital and votes of society, established in Article 10, within six months. If this term expires without having done so, because of the refusal of foreign shareholders or detached from their shares in the necessary proportion, an additional period is granted so that Argentine shareholders can increase their shares in the necessary proportion through the increase in the capital of the bank. In this case, foreign shareholders may not increase the number and amount of shares they possess, subscribe or integrate new actions, despite the right of preference that may be agreed upon by the legal or statutory provisions, or under any other concept.

Financial entities that are not commercial banks or investment banks, which the Central Bank of the Argentine Republic currently has qualifications as foreign nationals, must be transformed into nationals, fulfilling the aforementioned requirement of Article 10 within six months. Once the deadline is expired, the expiration of the authorization will be fully operational.

The deadlines set out in the preceding paragraphs shall begin from the date of effect of this Act.

The Central Bank may extend them, in cases duly justified for up to two additional periods of six months each.

Rule 52. La The role of legal president conferred on financial entities by the law of nationalization and guarantee of deposits, will be paid by the Central Bank of the Argentine Republic by payment of commissions, in accordance with what that determines.

The entities covered by this Act shall provide the special services of public interest required by the Central Bank. These services shall be paid, except for the exceptions that are justified.

Article 53. . For the purpose of determining the tax on profit activities and other taxes that earn gross revenues, the difference between the interests of the financial entities and those that transfer them to the Central Bank shall be taken as an enforceable basis. For the same purpose, the commissions that financial entities perceive in the concept referred to in article 8 of Act 20,520 shall not be computed as taxable income. The National Executive Power will manage the accession of the provinces to this regime.

It is not appropriate to compute for the calculation of the contribution provided for in article 17 (f) of Decree-Law 19,322 (registered as Act No. 19,322) of the Commissions for the Financial Institutions in charge of the Central Bank and the interests of the said institution derived from the Act No. 20,520.

The provisions of this article shall begin to govern from the date of application of the aforementioned Act 20.520.

Article 2 Artículo Contact, post, give to the National Directorate of the Official Register and archvese.

PERON.

José B. Gelbard