LAW NO. 20,572 RESCHEDULING OF UNIVERSITY CREDITS Having present that the H. National Congress has given its approval to the following bill of law: " Article first.-Approve the following law of reprogramming of university credits: " Article 1.-The debtors of the Solidarity Funds of University Credit, university credit and university tax credit, established in the laws numbers 19.287 and 18,591 and in the decree with force of law No. 4, of the Ministry of Education Public, from 1981, respectively, which are to be found in arrears to 30 June 2011 and which do not have received any previous rescheduling, hereinafter "the debtors", may qualify for the payment terms that are set out in this law. Article 2.-Debtors who wish to benefit from this law must make it in writing to the respective credit administrator, hereinafter referred to as "the administrator", within three months of the date of publication of the consolidated debt in accordance with Article 3. In that communication, it shall set a domicile for the sending of notifications and notices relating to it and other arrangements linked to the credit, and shall report, where appropriate, the pension institution to which they are affiliated. For the purpose of sending notices, debtors may indicate an e-mail address. For the period between the event referred to in the preceding paragraphs and the time limit for the subscription of the payment referred to in Article 4, the award procedures which have been initiated against the persons concerned shall be suspended. debtors. Article 3.-Translate 30 days from the date of publication of the regulation of this law, the administrator will proceed to determine the debtor balance of the beneficiaries of this law, for which it will calculate the dues due, due and to be defeated, with all the corresponding criminal interest, which shall be consolidated by establishing a new debtor balance expressed in monthly tax units, according to the value of the unit in the month in which the calculation is made. Due to the deadline referred to in the previous paragraph, the administrator must make available to the debtors, on the website of the respective university, the information regarding the consolidated debt, keeping the confidentiality of the data. The information provided to each debtor must distinguish from the debtor balance, the amount corresponding to the criminal interest due. In addition, within five days of the publication referred to in the preceding paragraph, the administrator shall publish in a national circulation journal a notice to report the website in which the consolidation is available. of the debts and the time of the debtors to reschedule. Article 4.-The debtor shall have a period of two months, counted since the event referred to in Article 2, to agree with the administrator the number of annual, equal and successive contributions in which he/she paid his balance, which in no case will exceed 10 quotas, if the amount of the rescheduled debt is equal to or less than 150 monthly tax units, or 15 quotas, if the amount of the rescheduled debt is greater than 150 monthly tax units. At the time the number of quotas is agreed, the debtor must make an initial payment, corresponding to a partial or total remission of the criminal interest, which will be determined according to the initial amount paid. The debtor may make the initial payment up to 6 successive monthly instalments, the first of which must be paid. If the debtor defaults to the payment of the fees corresponding to the initial payment of the rescheduled debt, the administrator may make it fully enforceable. Debtors who initially pay 50% or more of the balance of capital plus interest due, not counting criminal interest, will be told the whole of the latter. Debtors who pay a lower percentage than the previous one will be granted, at that time, criminal interest in the equivalent of double the percentage of the debt they initially pay. In the latter case, the debtor will also receive partial remission of the balance of the criminal interest at the time of payment of the agreed fees. For these purposes, the remission of the criminal interest shall be equal to twice the percentage representing each fee paid in respect of the consolidated debt, without counting the criminal interest. The initial payment may not be less than the greater amount of 5% of the debt, excluding criminal interest, and the equivalent of 4 monthly tax units. Also, if 5% of the debt is higher than 20 monthly tax units, the debtor may choose to pay the latter amount initially. The debtor shall take out a payment to account for his new debt, which, if appropriate, shall include the fees for the initial payment referred to in the second subparagraph of this Article. The balance will be expressed in monthly tax units, which will be of interest of 2% per year. In this note, the conditions for the cancellation of the criminal interest shall be included in accordance with the fourth paragraph of this article. For the purposes of reprogramming, those debtors who owe more than one institution will have to pay a payment with each of them. The promissory note referred to in the foregoing paragraph and the proceedings of the protest thereof, when proceeding, shall be exempt from the taxes laid down in the Law of Timbers and Stampillas. The administrator of the respective credit must certify the fact that the debtor has received the reprogramming of university credits to which this law refers, in order to clarify the banking or commercial history that may be affect you. Article 5.-At the time of signing the promissory note referred to in the preceding article, the debtor must grant an irrevocable mandate to the administrator, so that the administrator may require his employer to deduct the amount of the The amount of the credit to be agreed with the administrator. To this end, the annual quota must be divided into 12 equal monthly instalments. Such discounts shall be subject to the limits laid down for these purposes in Articles 58, second indent, of the Labour Code, and 96, second indent, of the Administrative Staff Regulations, as appropriate. Article 6.-In the case of debtors who credit not having graduated from any institution of higher education and whose monthly income is less than 10 monthly tax units, according to the income accreditation established in Article 9º of Law No 19.287, whose annual quota agreed in accordance with Article 4, is greater than 5% of the total income, shall only be obliged to pay that year the amount equivalent to 5% of its total revenue. For these purposes, the gross income shall be considered to be the gross income minus the tax rebates and compulsory pre-viewing contributions. Only those debtors who, in compliance with the requirements mentioned in the foregoing paragraph, can reprogram their debts within the maximum periods laid down in the first paragraph of Article 4, according to the amount of the debt, will be eligible for this benefit. reprogrammed. The difference between the originally agreed fee and the one that is paid under the application of this Article will be automatically committed when the payment is made. Article 7.-If the respective administrator will opt for recovery by discounting the remuneration of the debtor, and so request in writing, the employers of the beneficiaries of repacted credits in accordance with the rules of this The law will have to discount the remuneration of such beneficiaries for the payment of university solidarity credits, in accordance with the terms set out in Article 5. corresponding creditor institution before proceeding to the next retention. The requirement of the administrator of the credit fund to the respective employer must comply with the conditions and formalities laid down in the regulation. If the employer does not pay the corresponding discount, having been required to do so by reason of the preceding subparagraph, or, having made it, I shall not find the funds to the corresponding creditor institution, the respective sums shall be re-adjusted Considering the variation in the Consumer Price Index, in the period between the month preceding the month preceding the month in which the payment was made, and the month preceding the month preceding the month in which the payment was actually made perform. In addition, it shall pay the creditor institution corresponding to a sum equivalent to a promotion unit for each month in which it does not make the discount. For each day of delay, the adjusted sums shall bear a criminal interest equivalent to the current interest rate for realisable transactions in national currency referred to in Article 6 of Law No 18.010, increased by 20%. However, in the case of the 90 days of delay, the rate referred to above will be increased by 50%. The amounts resulting from the application of the preceding subparagraphs shall be charged to the balance of the credit due by the worker, when the respective payment is made. Without prejudice to the foregoing, the institutions shall pursue the payment of any withholding tax, including any adjustments and interests that correspond, in accordance with the rules on payment and collection of contributions, from the employer. Previsions contained in Law No 17.322, enjoying the same preference as these. Article 8.-The General Treasury of the Repub It will be entitled to withhold from the return of income taxes that will correspond annually to the debtors of the solidarity credit, university credit and the university tax credit, which are coupled with the benefits of this law, the amounts (a) the payment of the said debt shall be imposed in accordance with the information provided by the respective administrator in the form established by the regulation. The General Treasury of the Republic must find out the monies retained by this concept to the administrator of the respective University Credit Fund, within thirty days from the date on which the refund, unless the debtor establishes that he has settled the amount due and not paid for the university credit, by means of a certificate granted by the respective administrator. If the amount of the tax refund is less than the amount due, the debtor's obligation shall remain for the insolute balance. However, the debtors to whom the employer has withheld and not paid, in whole or in part, the amounts impayments, may require the General Treasury of the Republic to release the retention made by it, in the form that the a regulation, if they prove that their employer has held them or that there are trials pending against the employer. The release referred to in the preceding paragraph will only reach the amount of the test. Article 9.-For the purposes of the accreditation of the income provided for in Article 6, the duty of secrecy or reserve of the tax history, contained in Article 35, second indent, of the Tax Code, shall not be applicable to the the respective administrator in respect of the income of the debtors of the solidarity credits that are used to the reprogramming of this law. In addition, the credit fund managers will be empowered to request information from the relevant pre-viewing entities, in relation to the income of the debtors who have reprogrammed their loans, which will be required to deliver it. Article 10.-The payment of the corresponding annual contributions shall be initiated in the calendar year following that of the subscription of the promissory note referred to in Article 4. Article 11.-In any case not expressly regulated in this law, they shall apply in form (a) the provisions of Law No 19.287, except as provided for in Articles 10, 12 and 16 thereof, Article 12.-A regulation issued by the Ministry of Education and also signed by the Minister of Finance, shall lay down the rules necessary for the application of this law. That regulation shall be issued within 90 days of the publication of the law. ' Article 2.-Introduces the following amendments to Law No 19.287, which amends Law No. 18,591 and establishes rules on Solidarity Fund of University Credit: 1) Amend article 7 as follows: a) Replace, in the (a) the term "of the institutions referred to in Article 70 of Law 18,591" by "institution of higher education recognized by the State". (b) Add the following final point, new: " Without prejudice to the foregoing paragraph, the beneficiary may voluntarily anticipate the commencement of his payment period referred to in that subparagraph. For such purposes, the beneficiary shall inform the respective general manager of the fund and credit that his/her monthly average income, during the immediately preceding 6 months, calculated in the form set out in Article 8, is greater than 6 monthly tax units, in force at 31 December of the year concerned. " 2) Amend Article 8 in the following manner: (a) In the fifth indent, the following final sentence is added: " However, such suspension may not exceed the formal period of duration of the corresponding postgraduate studies, accredited by the certification issued by the institution of (b) The following sixth and seventh, new points (b) are added: " Without prejudice to the provisions of the foregoing paragraph, to debtors who are pursuing post-graduate studies and whose monthly average earnings are less than 6 monthly tax units shall be suspended from the annual payment obligation and the maximum period to serve the debt. The obligation to pay may be suspended for those debtors who so request and credit for an over-coming cease-rate, that is, that produced in the period in which the payment of the corresponding fee is to be made. This suspension may be applied for one time and shall operate for a maximum period of 12 months. In this case, the maximum period for serving the debt shall be extended for the same number of months as the suspension has been operated. ' 3) Amend Article 11 as follows: (a) Replace the first and second points of the first and second subparagraphs, passing the current second and third points to be third and fourth, respectively: " Article 11.-If a debtor fails to credit his income within the time limit specified in the The first paragraph of Article 9, the general manager of the respective fund shall determine a fixed, annual and successive fee, which shall be calculated on the basis of the duly updated debtor balance, dividing the amount of the debt by the number of years In accordance with the following table: Balance of debt debt (UTM) Years of recovery From 0 to 50 6 From 51 to 100 9 From 101 to 200 12 201 or more 15 For the calculation of annual quotas, the interest rate to be used shall be 2% per year. "(b) Substitute, in the second subparagraph, which has become the third subparagraph, the sentence" to the preceding paragraph ", by" to the ". 4. In the first paragraph of Article 15, "1.5%" shall be replaced by "1%". 5) Add the following Article 17a: " Article 17a.-In the case of arrears, and only once all instances of the preliminary recovery of the debt have been exhausted, the fund manager may reschedule the debt of the debtors who do not have previously been rescheduled and are requested to do so. This reprogramming shall be in fixed, annual and successive instalments. Notwithstanding the foregoing, an individual rescheduling may not occur before 18 months have elapsed since the debtor entered arrears. In order to qualify for this rescheduling, debtors must make an initial payment of the entire or part of the capital balance plus interest due, not counting the criminal interest, and will be granted the latter in the same proportion as the percentage of the debt that they initially pay, minus 10%. However, this waiver may in no case exceed 80% of the criminal interest or be less than 20%. The initial payment may not be less than the greater amount of 10% of the debt, excluding criminal interest, and the equivalent of 4 monthly tax units. Also, if 10% of the debt is higher than 20 monthly tax units, the debtor may choose to pay the latter amount initially. The repayment period of the debt remaining shall not exceed 10 years, if the amount of the rescheduled debt is equal to or less than 150 monthly tax units, or 15 years, if the amount of the reprogrammed debt is greater than 150 units Monthly taxes. ' Article 3.-Add, in the second indent of Article 71a of Law No 18,591, the following final sentences: " Without prejudice to the foregoing, a contribution to each institution, calculated on the basis of the total volume of credits to be recovered, the amounts actually recovered and the annual variation thereof. This contribution may not exceed for each institution 5% of the total of the resources recovered by it during the previous year. ' Transitional Article.-The provisions of Article 2 (5) shall begin to apply after 2 years after the publication of the regulation of this law. " And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, January 27, 2012.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Harald Beyer Burgos, Minister of Education.-Julio Dittborn Cordua, Minister of Finance (S). What I transcribe to you for your knowledge.-I greet you, Jorge Poblete Aedo, Assistant Secretary of Education (S).