LAW NO. 20,448 INTRODUCES A SERIES OF REFORMS IN THE FIELD OF LIQUIDITY, FINANCIAL INNOVATION AND THE INTEGRATION OF THE CAPITAL MARKET, bearing in mind that the National Congress has given its approval to the following bill: " Article 1. The following amendments were made to Decree Law No. 1.328 of 1976 on Mutual Funds, the consolidated, coordinated and systematized text of which was fixed by the Supreme Decree No. 1,019, 1979, of the Ministry of Finance: 1) 2 °, in the following sense: (a) Replace the first indent, by the following: " Article 2 °.-The quality of the participant is: (a) When the manager receives the cash or bank account, in national or foreign currency. (b) At the time of receipt of the payment by the bank in case of payment by cheque. (c) Where the corresponding transfer is made, in the case of transactions on the secondary market. (d) Where the administrator has accepted the transfer of the domain, in favour of the fund, of the instruments referred to in Article 13. For these purposes, the administrator shall have within two working days within which she shall decide on her acceptance of such transfer or her rejection of the transfer by reason of the failure to comply with the provisions of Article 2 (b) or (b) of the Treaty. internal rules of the fund. (e) For other forms determined by the regulation of this law. "(b) Intercalase, in the second indent, between the expression" of the respective fund "and the point followed by the sentence" and under the conditions laid down in the regulation of this law ". 2. Intercalase the following Article 2 ° bis: " Article 2 ° bis.-The funds may provide in their rules of procedure the possibility that the administrator may receive contributions in instruments referred to in Article 13 in so far as the Following conditions: (a) that the composition of the contribution does not differ significantly from the composition of the fund's portfolio; (b) that the investment policy, diversification and liquidity of the fund are not transferred; (c) that the instruments are provided at a price market, according to the rules established or authorized by the Superintendence; (d) that none of the contributors of the Fund individually or jointly, directly or indirectly, more than 30% of the shares of the fund, or the lower percentage than point out the fund's rules. The managing company shall ensure that the percentage set out in this letter is not exceeded by the number of shares held on its own account. The Superintendence shall set the time limits for persons exceeding that percentage to transfer their quotas, to the extent that it permits compliance with that percentage, without prejudice to administrative penalties which (3) Reposition, in the final paragraph of Article 4 °, the phrase "the third title of Law No 4,558" by the phrase "Book IV of the Code of Commerce". (4) Article 5 (5) is replaced by the following: " Article 5.-The Mutual Funds and the companies administering them shall be governed by the provisions of this Law and those of their Rules of Procedure, by the laws and regulations governing the (5) Reposition Article 8 ° by the following: " Article 8.-The management companies may initiate the procedure for the application of the provisions of Article 8 of Regulation (EEC) No 3975/86. their functions once they have at least one fund whose shares are in a position to be be placed on the market, in accordance with the provisions of Article 8a. "6. The following Articles 8a and 8b:" Article 8a.-The administrators shall deposit an internal rules of procedure and a subscription contract for quotas for each of the funds they administer. For these purposes, the Superintendence will carry a "Public Registry of the Deposit of Internal Regulations and Contracts of Subscription of Mutual Funds", hereinafter "the Registry". Unless the Superintendency has been established, the fund's shares may be marketed from the following working day, counted from the respective deposit, being considered for all purposes as entered in the Register of Securities. takes the Superintendence to count from that date. The Superintendence will establish the minimum contents of both the internal regulations and the contracts. Similarly, it will regulate how the administrators will refer the background to the deposit. The administrators will be responsible for the contents of the regulations and contracts that they deposit, which must be clearly, understandable and not misleading. Furthermore, the Superintendence will maintain on its institutional website an updated digital version of the Register as set out in this Article. The Superintendence may, at any time, represent the company that its regulations or contracts do not conform to the laws or regulations in force. It may also suspend the marketing of the fund's quotas until such time as the amendments to the observations made by the Superintendence to the Regulations or in respect of the rules of procedure have entered into force. without prejudice to the application of the relevant administrative penalties. Where the quotas continue to be marketed or the observations are not remedied within the period indicated by the Superintendence, which may not be less than one working day, the latter may, without further processing, proceed to the final disposal of the or subscription contract of the corresponding Register and the settlement of the fund. Article 8º.-Amendments to the internal regulations or subscription contracts for quotas already registered must be contained in a recast text that is deposited in replacement of the registered one, in the same manner as indicated in the preceding article. Such amendments shall be communicated to the members of the fund by the managing company. The form and timing of such communication, as well as the entry into force of the amendments, will be established in the law. The formalities and the content of the communication shall be determined by the Superintendence. ' 7) Amend Article 11, in the following sense: (a) Replace the first subparagraph, by the following: " Article 11 °.-Translate six months from the date on which the administrator is able to market the shares of the fund in accordance with Article 8a, the latter shall be permanently count on at least 50 participants, unless there is an institutional investor, in which case it will be sufficient to have only five members. "b) Add the following final point:" For the purposes of the (a) shall qualify as institutional investors as referred to in point (e) of the Article 4 (a) of Law No 18.045. ' (8) Replace the first indent of Article 12, by the following: " Article 12 °.-Agents shall be the chief executive of the management company for the purposes of subscription, rescue or other kind of operations carried out by them. (9) Reside, in the first paragraph of Article 12 A, the expression "counted from the approval of the rules of procedure of each fund" by the expression " counted from the date on which the shares of the fund are marketed as conformity with the provisions of Article 8a. ' (10) Amend Article 13, as follows: (a) Replace the number (1) by the following: " (1) It shall be carried out on all types of instruments or goods or certificates representing them, which comply with any of the requirements laid down in Article 13. (a) to be traded on a stock exchange, national or foreign exchange, without prejudice to the amounts held in cash or foreign currency: (a) (b) the issuer is subject to the supervision of the Superintendence or of any public, national or foreign institution or body of similar jurisdiction. (c) to be issued by international organizations, of those referred to in Title XXIV of Law No. 18,045. (d) They are issued or guaranteed by the State or Central Bank of Chile, or by the State or the Central Bank or public body of similar jurisdiction of a foreign country. The Superintendence, by means of a general rule, may lay down the conditions, as well as the minimum information to be met by the investments indicated under this number. Furthermore, the Superintendency may authorise the investment of funds in other instruments or goods other than those mentioned above. In any event, the international exchange operations carried out by the fund shall be governed by the provisions of the eighth paragraph of Title III of Law No 18,840. " (b) Amend the numeral 2), as follows: (i) Substitute the first subparagraph, as follows: " 2. They shall maintain at least 50% of their investment in securities having a stock exchange, in deposits or securities issued or guaranteed until their total extinction by banks or other financial institutions or by the State, in shares of mutual funds, in currencies or in other instruments authorising or establishing the Superintendence. '(ii) Reposition in the second subparagraph, the sentence' Without prejudice to the provisions of the The Fund may invest up to 10% of its total assets "for" In any event, the Fund may not invest more than one 20% of its total assets. ' (c) Redeploy the numeral 8), as follows: " 8) A mutual fund may acquire instruments classified in the categories of risk to be determined and (d) the number (9). (e) be replaced by the number (10), as follows: " (10) The fund may carry out derivative transactions, both within and outside the stock market; acquire instruments with a promise of sale; and buy or sell options for buying or selling assets, securities and indices, lending securities and concluding short sales contracts on these. All the operations and investments identified in this issue must comply with the requirements authorized or established by the Superintendence, which must determine, in addition, the maximum limits that may be committed in these operations. " (f) numeral 11). 11. Article 13a is replaced by the following: " Article 13 A.-In the case of mutual funds directed to qualified investors, the limits laid down in Article 13 (2), (6) and (7) shall not apply, as well as the Article 13 B, provided that a policy of diversification of investments and indebtedness of the fund is established in the rules of procedure. The investment diversification policy shall contain at least investment limits in respect of the total assets of the fund on the basis of each issuer, business group and its related persons. The debt policy shall contain the rates and the origin of the obligations which may be incurred by the fund, the time limits associated with them and the liabilities and liabilities in the medium and long term, in respect of the equity of the fund, without prejudice to the information requirements laid down in the Regulation. In its annual report, the external auditors of the Fund shall act on the implementation of these policies. ' 12) Replace the first Article 13 B, by the following: " Article 13 B.-The fund may only be indebted for up to 20% of its under the conditions laid down in its rules of procedure, in order to pay for the payment of quotas and to carry out the other operations which the Superintendence expressly authorises. ' (13) Substitute the second Article 13 B, by the following Article 13 C: " Article 13 C.-In the case of a mutual fund whose rules of procedure establish a investment policy that conditions the investments of the fund or the profitability of the fund to the performance of an index, shall not apply to the limits referred to in Article 13 (5), (6) and (7). The Superintendence shall, by means of a general rule, determine the characteristics to be met by the indices, the maximum rates of investment in instruments issued or guaranteed by the same institution and the total investment in securities issued or guaranteed by entities belonging to the same business group, both on the asset of the fund. It may also establish maximum ranges within which the distribution of the fund's portfolio may deviate from the fulfilment of its object. "14) Reposition Article 14a, by the following:" Article 14a.-The administrators must to participate and exercise their rights of voice and vote in the elections of the directory of the open public limited companies whose shares have been acquired with the resources of the mutual funds, and to make sufficient information available to the contributors on the exercise of such rights, provided that together they hold more than one per cent of the voting shares issued by the company. The funds referred to in Article 13c shall be exempt from the provisions of this Article. In the elections of the directory of companies whose shares have been acquired with the resources of mutual funds, the administrators shall not vote for the the following persons: (a) Shareholders who are in control of the company or its related persons. (b) the shareholders of the administrator holding 10% or more of their shares, or their related persons. (c) the directors or executives of the administrator, or of any company of the business group to which it belongs. The administrators may act in concert with each other or with shareholders who are not affected by the restrictions referred to in this article. Notwithstanding the foregoing, they may not conduct any management that involves participating in or having interference in the administration of the company in which one or more directors have been elected. Without prejudice to the provisions of point (c) of the third subparagraph, the administrators may vote for persons acting as directors in a company of the business group to which the company in which the directory is chosen belongs, where people comply with the following: (i) a person whose sole relationship with the controller of the business group comes from his/her participation in the directory of one or more companies in that group; and (ii) that the person has not accessed the directories referred to in point (c) of the Third party with the decisive support of the controller of the business group or its related persons. It is understood that a director has received decisive support from the controller, when the votes from the controller or his related persons were not elected. If the person chosen is affected by the restrictions of this article or is disabled for any reason, he shall cease to be the full right in the post, and shall definitely assume the alternate if he has, or that replacement is enabled which (15) Substitute Article 15 °, by the following: " Article 15 °.-The shares of mutual funds shall be valued in the manner determined by the regulation of this law, with the frequency authorized or established by the Superintendence, which may not exceed one day. ' 16) Amend Article 16 °, as follows: (a) Intercalase the following third subparagraph, new: " Funds may provide in their rules of procedure the possibility of bailouts in instruments referred to in Article 13, in so far as the following conditions are met: (a) that the composition of the rescue does not differ significantly from the composition of the fund's portfolio; (b) that the fund's investment, diversification and liquidity policy is not transgressed; (c) that the instruments are redeemed at a price market, according to the rules established or authorized by the Superintendence, and (d) Other than that established by the Superintendence. "(b) Reposition, in the present final indent, the expression" in the values of the Fund "by the expression" other Form, conditions and deadlines. ' c) Add the following final point, new: " Without prejudice to the foregoing, the funds that allow the contribution and rescue of instruments will be able to contemplate restrictions on the contribution and the rescue of quotas according to determine the Superintendence by means of general instruction, which will be effective once the respective shares are registered in a stock exchange and the administrator has established mechanisms to ensure (17) Redeploy the right to the right of access to the market. Article 17 (2), second indent: " The higher value of the shares in the quota rescue shall be calculated as the difference between the acquisition value and the redemption value. For such purposes, the acquisition value shall be expressed in Promotion Units according to the value that it represents on the day of the acquisition, converting them into weights according to the value of this same unit per day the ransom is made. " 18) Article 20 °. Article 2.-Introduces the following amendments to the Law No. 18,045, of the Stock Market: 1) In Title XVIII: a) The title of the Title shall be replaced by the following: " Of the Securiating Societies and the Issue of Debt Titles of Securitization '. (b) Substitute the first paragraph of Article 132, as follows: " Article 132.-The companies referred to in this Title shall be constituted as special anonymous and their exclusive object shall be the acquisition of the assets referred to in the Article 135, the acquisition of rights on payment flows, the issuance of debt securities, short or long-term debt securities, and any other complementary or related activities authorised by the Superintendency. Each issue shall result in the formation of assets separated from the common heritage of the broadcaster, except in the case of the emission per line, in which all the emissions charged to it shall comprise a single separate patrimony. For the above purposes, any obligation, existing or generated in the future, to pay one or more sums for the purchase or use of goods or for the provision of services shall be understood as a flow of payment. " (c) Add the following Article 1313a: " Article 132a.-The issuance of instruments governed by this Title may be effected by the issuance of debt securities by fixed amount, by line of securitization debt securities or through the issuance of securities issued by the laid down in Article 144 (a). It is understood that the issue is by line of titles when the individual placements in force do not exceed the total amount and the deadline of the line entered in the Superintendence. The contract for the issuance of securitization debt securities per line shall contain the general terms applicable to all the issues which are carried out by it, as long as the placement documents shall be considered to be the conditions of the contract. specific to each placement. Placements that are carried out from a line must consider the incorporation of assets into the separate assets, which must be of the same nature as the assets that make up the latter, and will not be able to improve the degree of (i) investment in the securities issued in advance by the separate assets; which shall be certified by the representative of the holders of debt securities. A new issue may only be made from the line after the assets that have been previously made have been found in the form set out in Article 137 (4), in the form set out in Article 137 (4). The Superintendence, by means of a general rule, shall regulate the procedure for the issue of certificates per line, the minimum particulars to be contained in the contracts for issue by line and the written documents. " (d) Intercalase in the the third indent of Article 135, between the phrases "of their complementary writings" and "in which the phrase", or the writings of affixing, are individualized ". (e) Substitute Article 137, as follows: " Article 137.-In the contract for the issuance of debt securities with separate capital formation, or in the respective placement scriptures, as appropriate, they shall be individualised or determine, according to their nature, the goods, contracts, credits and rights that make up the goods. If in the contract of issue or in the writing of placement they cannot be individualised or determined, their main characteristics, their degree of homogeneity, their number, the period in which they will be acquired and the other particulars to be obtained must be indicated. Superintendence determines by general rule, and individualize them or determine them in one or more complementary scriptures. These instruments and the placement documents shall be entered on the margin of the contract for the issuance of debt securities. Copy of the scriptures will be sent to the Superintendence, within five days following its granting, for incorporation to the inscription of the issue in the Registry of Values. The contract for the issue of debt securities with separate capital formation or the writing of the placement, as appropriate, the representative obligations of the latter are fully entitled to the liability of the latter. The assets, contracts, credits and individual rights or determined in the writing of the award of the contract of issue, in the supplementary scriptures, or in the written documents, shall be fully integrated in the assets of the latter, from the date of the respective writing on which they are individually identified or determined, in accordance with the provisions of the first subparagraph of this Article, with the exception of real estate and other property whose property is subject to registration, which is will integrate the asset once the formalities established by the law have been completed. The securitizing company may not tax, dispose or promise to tax or dispose of the goods, contracts, credits or individual rights or specific rights in the contract of issue, in its complementary writings, or in the placing, without the consent of the representative of the holders of debt securities, who may authorise or require the replacement of such goods, contracts, credits and rights, provided that the new assets meet similar characteristics as those who replace, as set out in the respective contract. In the case of replacements, the form set out in the seventh indent of Article 131a shall be carried out. Only the entire obligation of the asset of the assets separated by the company shall be deemed to be fulfilled, where the certificate that the representative of the holders of debt securities is required to grant shall be added to the registration. the assets that make up the asset are duly contributed and in custody, free of charges, prohibitions or embargoes, that the other requirements determined in the writing of the issue have been met, and where appropriate, that they have been constituted the additional contributions agreed. If the custody of such assets does not take place, the debt securities issue contract must express this circumstance, and indicate other safeguard and surveillance measures to be taken in relation to the assets that make up the debt. assets of the separate assets. Once the certificate referred to in the previous paragraph has been added, it will be up to the company to charge and receive the payment for the debt securities it has issued, integrating the common patrimony. If the certificate has not been added to the respective issue, it shall be the responsibility of the representative of the holders of debt securities to charge and to receive such payment, directly if the latter is a bank or financial institution or through any of these institutions, if they do not have such a character, by entering these resources into the respective separate assets. The provisions of the preceding paragraphs shall apply to each of the emissions that are made from a line. In such cases, assets that are a new issue shall be kept segregated from the rest of the assets of the separate assets until the whole certificate of that issue is granted. Once such a certificate has been granted, the new assets shall be integrated into the other assets of the separate assets. '(f) Amend Article 137a, in the following sense: (i) Substitute, in the first subparagraph, the words' the "by" the seventh indent of Article 137 ". (ii) Intercalase, in the third indent, between the phrase "additional contributions agreed in the" and the expression "writing", the word "corresponding". (iii) Replace, in the fourth indent, "60" by "90". (iv) Intercalase the following fifth, new point, passing the current one to be sixth, and so on: " In post-first issue placements with a title line, the non-issuance of the entire certificate, within the time limit (a) prior to that, it shall not mean the liquidation of the separate assets and, as a result, shall not affect the holders of securities previously issued by the separate estate. In such cases, the assets of that issue shall be settled in the form determined in the contract of issue. "v) Replace the current sixth indent, by the following:" Pending the granting of the certificate of separate assets, or the respective issue in the case of emissions per line, the company may replace one or more assets, contracts, credits and rights with other assets that meet characteristics similar to those that replace, as set out in the respective issue contract; modify the contract, or the respective placing, in order to reduce the issue to the amount actually placed on that date or to proceed to the early redemption of all or part of the titles corresponding to the last placement effectively placed by the procedure (g) Add in the fifth indent of Article 138, following the separate point, which is to be followed, the following: " Without prejudice to the foregoing, the Superintendence may authorise by means of a rule of a (a) the contract of issue provides for the acquisition of the assets that will integrate the separate assets. Such obligations may be incurred only with the entities which have contributed, originated or sold the assets which will integrate the separate assets, which may be paid in compliance with the priority laid down in the contract of (h) In the second indent of Article 141, between the phrase "the law" and the separate point, the phrase "or the Superintendence" is inserted. (i) Replace, in the first paragraph of Article 144a, the sentence "two years" by the sentence " to the in the respective general public deed. " (j) Add the following Article 153 a, new: "Article 153 a.-In all the provisions of this Title, the rules contained in Title XVI of this Law shall be applied in full." 2. 184, for the following new second and final points: " Foreign securities and CDVs may only be expressed in foreign currencies authorized by the Central Bank of Chile, as well as in national currency provided that their payment is made in an authorised foreign currency; and in such foreign currencies they must be traded on the market national, considering the above instruments for all legal effects as foreign titles. These operations shall be subject to the provisions of Article 39 of the eighth paragraph of Title III of the Constitutional Organic Law of the Central Bank of Chile, regardless of the nature of the title. Likewise, and for the purposes of the public offering of foreign securities in the country, the Central Bank of Chile may authorize the instruments to be traded and payable in the national currency, subject to the conditions and conditions of the determine, where the provisions of the final paragraph of Article 197 do not apply. '; 3. the rules contained in Title XXVII "of the General Administration of Funds" shall be amended as follows: (a) Article 228 is replaced by the following: " Article 228.-The Superintendence shall have a period of 30 days, counted from the date of submission of the application and the background of the funds referred to in Article 220, for the approval of the internal regulations and, where appropriate, the contract of administration of at least one fund, together with the the subscription of quotas and the facsimile of their shares, where appropriate. The period indicated in the preceding paragraph shall be suspended from the date on which the Superintendence, by means of written communication, requests additional information from the petitioner or requests him to modify the request or to rectify his/her antecedents. comply with the laws, regulations or administrative provisions in force, resuming only when such a procedure has been completed. Subsa (a) the defects or the observations made in their case, and the time limit referred to in the first subparagraph shall be expired, the Superintendence shall adopt the rules of procedure or the texts of the contracts, as appropriate. However, after sixty days from the filing of the application, the petitioner may request that the application be resolved with the background of the Superintendence. In such circumstances, the Superintendence within 5 working days counted from the request referred to, will resolve to approve or reject the application, in the latter case by resolution founded. If it is not delivered within this period, the application shall be deemed to have been approved. The provisions of this Article shall not apply to the system of deposit and registration of internal regulations and subscription contracts for mutual fund shares, which shall be governed by the rules contained in Articles 8a and 8b of the Decree-Law No. 1,328, 1976. ' (b) Amend Article 230, as follows: (i) Replace the first indent, by the following: " Article 230.-The administrators shall accredit to the Superintendence, prior to the commencement of their duties, the faithful fulfillment of all the formalities which, for its constitution, establish this Title and must have a general regulation of funds approved. In the case of the funds referred to in Article 220, with the exception of mutual funds, the rules of procedure for each fund shall also be approved and, where appropriate, the contract of administration of at least one fund shall be entered, in conjunction with the subscription contract and the facsimile title thereof, when it corresponds. In the case of mutual funds, it shall be necessary for the administrator to market the shares of at least one fund in accordance with the provisions of Decree Law No 1,328 of 1976. " (ii) Intercalase in the third subparagraph, between the expressions "new fund" and "the Superintendence" the sentence ", of those referred to in Article 220, with the exception of the Mutual Funds,". (iii) Add the following fourth indent, new: " In the case of the internal regulations and the contracts for subscription of mutual funds quotas, the rules contained in decree law Nº1.328 of 1976, as regards the system of deposit and registration of internal regulations and Quota subscription contracts. Furthermore, the Superintendence will keep on its institutional website, available to the public, an updated digital version with the full text of the regulations and contracts covered by this article. " (c) In Article 236, replace the (d) the following: "(d) the unit-holders of the same fund, or of the same series, where appropriate, are treated as non-discriminatory, and". Article 3.-The following amendments are made to Decree Law No 3,500 of 1980: (1) Reapply point (k) of Article 45 (2), as follows: " (k) Other instruments, operations and contracts, which authorize the Superintendence of Pensions, after report of the Central Bank of Chile; "2) Amend article 48 as follows: (a) Replace in the third indent, the expression" and D "by", D and E ". b) Intercalase in the third sentence of the tenth indent, between the words "Risk" and the comma (,) followed, the following sentence "and the instruments, operations and contracts of the letter k) that the Superintendence of Pensions determines". (c) Add the following new indent, first, to the current number 15 to 14, to the 15th, respectively: " The Pension Funds may carry out the purchase or sale of instruments (h) of Article 45 (h), second subparagraph, of the sale or purchase, respectively, of securities representative of the underlying assets of those instruments, in accordance with the general rule that the effect of the instrument Superintendence of Pensions. " Article 4 °.-Remove from Article 20 of the Labour Code, the phrase "which cannot be replaced by national staff". Article 5.-Introduces the following amendments in Law No. 18,657, which authorizes the creation of Foreign Capital Investment Funds: 1. In Article 7a, add the following second and third subparagraphs: " Notwithstanding the first subparagraph of Article 7 (7) of Law No 18,815, the Foreign Capital Investment Funds at Risk may invest in the Investment funds referred to in that law even if both funds are managed by the same managing company, provided that the Risk Foreign Capital Investment Fund meets at least one of the following requirements: (a) have authorized in writing, through their legal representative abroad, their management company to carry out this kind of investment, indicating the amount to which they may invest and whether such investments may be made in funds in which the managing company has invested, invests or is able to invest own resources, provided that such representative is a person other than that of the management company; (b) it has included in its rules of procedure, in the same terms, the authorisation referred to in the preceding letter. Such authorisations shall be made prior to the implementation of the respective investments in the form established by the Superintendence. In any event, the amount of the maximum investment to be made by a Risk Foreign Capital Investment Fund in the same issuer may not exceed, at the time of each investment, 40% of the total contributions paid by the fund. This limit shall be 60% for the period between 24 and 30 and six months following the first effective investment of the fund. However, the limit shall not be payable during the period between the first effective investment of the fund and the following twenty-four months, nor once the dissolution of the fund has been agreed and its liquidator appointed. " 2) 10, interleave the following second indent, new, passing the current second indent to be third and final: " The Investment Funds of Risk Foreign Capital may also have liabilities arising from the issuance of debt instruments or the hiring of credits both in Chile and abroad if they establish it in their regulations internal. Interest from such operations shall be taxed in accordance with the provisions of the Law on Income Tax, contained in Article 1 of Decree Law No. 824 of 1974. Where the excess debt tax referred to in Article 59 (1) of the Law on Income Tax is to be applied, the difference in the rate referred to in point (e) of the third subparagraph of Article 59 of that Article shall be of the managing company, which may deduct it as expenditure and shall declare it and pay it in the manner set out in that letter. The managing company shall retain the additional tax corresponding to the interest arising from the operations referred to in the preceding points in accordance with the provisions of Article 74 (4) of the Law on Tax on the Income, having to declare and pay such taxes in the form and time limit laid down in Article 79, of the same legal text. "3) Add in point (b) of Article 14, following the separate point, which happens to be followed, the following sentence:" In the the case of the capital provided to the Investment Funds of Foreign Capital of Risk for the period to be carried out (4) Intercalase in the first paragraph of Article 15, between the phrases "capital originally invested" and "not the income indicated", the following: " to the capital and the interests of the instruments and creeds referred to in Article 10 (2) (2). " Article 6.-Enter the following amendments to the Law on Income Tax, contained in Article 1 of Decree Law No. 824, 1974: 1) Repeal Articles 18a, 18b and 18c. (2) Enter the following amendments to Article 21: (a) Add in the first subparagraph, following the sentence "the payments referred to in Article 31, number 12, in the part which cannot be deducted as expenditure", the following sentence: ", the payment of the tax of Article 104 (3)". (b) Replace in the third subparagraph, the sentence "of Article 104 (2)", by the phrase "of Article 104 (3)". 3. the following Articles 106, 107, 108 and 109, new, in Title VI on "Special provisions relating to the capital market": " Article 106.-The highest value referred to in the first indent of Article 18 and the third, fourth and fifth of Article 17, number 8, obtained by foreign institutional investors, such as mutual funds and pension funds or others, in the disposal of the securities referred to in Articles 104 and 107, mutual fund shares referred to in the final subparagraph, or other representative securities of the public offering debts issued by the Central Bank of Chile, the State or by companies incorporated in the country, carried out on a stock exchange in the country authorized by the Superintendency of Securities and Insurance or in accordance with Title XXV of Law No 18.045 or by the redemption of quotas, as appropriate, will be exempt from the taxes of this law. The aforementioned foreign institutional investors must meet the following requirements during the time they operate in the country: 1) Being constituted abroad and not being domiciled in Chile. 2) Credit your quality of foreign institutional investor complying with at least one of the following characteristics: (a) a fund that makes public offer of its participation shares in a country that has an investment grade for its debt public, according to classification made by an international risk classification agency qualified as such by the Superintendency of Securities and Insurance. (b) a fund that is registered with a regulatory authority in a country that has an investment grade for its public debt, according to classification made by an international risk rating agency qualified as such by the Superintendency of Securities and Insurance, provided that the fund has investments in Chile, including securities issued abroad that are representative of national securities, representing less than 30% of the value of its total assets. (c) a fund that has investments in Chile, including securities issued abroad that are representative of national securities, representing less than 30% of the value of its total assets. In addition, no more than 10% of the assets or profits of the fund as a whole may be directly or indirectly owned by residents in Chile. (d) it is a pension fund, being understood by a pension fund which is made up exclusively of natural persons who receive their pensions from the capital accumulated in the fund or whose main purpose is to finance the constitution or increase of natural persons ' pensions, and who are subject in their country of origin to regulation or supervision by the competent regulatory authorities. e) That it be a fund of those regulated by Law No. 18,657, in which case all holders of quotas must be resident abroad or local institutional investors. (f) Other foreign institutional investor that meets the characteristics defined by the regulation for each category of investor, prior to the report of the Superintendency of Securities and Insurance and the Internal Revenue Service. (3) Not to participate directly or indirectly in the control of the issuing institutions of the securities in which it is invested or held directly or indirectly in 10% or more of the capital or profits of such issuers. The provisions of this number shall not apply for investment in shares issued by mutual funds governed by Decree Law No 1,328 of 1976. (4) To conclude a contract, consisting of a written record, with a bank or a broker, constituted in Chile, in which the intermediary agent is responsible, both for the execution of the orders for the purchase and sale of the securities, and for verify, at the time of the respective consignment, that it is the income that in this article is exempt from tax or, if it is income affected to the taxes of this law, that the respective deductions have been made by the taxpayers who paid or distributed the income. The agent must also make the affidavit referred to in the following number and provide the information of the operations and remittances that he/she makes to the Internal Revenue Service in the form and time limits that it establishes. 5) Be registered in a register which will have the effect of the Internal Revenue Service. Such registration shall be made on the basis of an affidavit, made by the intermediary agent referred to in the preceding number, in which it shall be noted: that the institutional investor complies with the requirements laid down in this Article 2 (1) of Regulation (EU) No 52/2014 of the European Parliament and of the Council of 11 March 2014 on the common position of the European Parliament and of the Council [3], as amended by Regulation (EU) No 52/2014, and in particular Article 3 (2) thereof. In addition, such a declaration shall contain the individualisation, by name, nationality, where appropriate, and domicile, of the legal representative and the administrator of the fund or of the institution making the investment; and indicate the name of the bank in which settled the foreign currency, the origin of the foreign currency and the amount to which it was settled. In the event that the bank in which the foreign exchange for the investment was liquidated, is not designated as an intermediary agent, it will weigh on it the obligation to inform the Internal Revenue Service, when this is required, the origin and the amount of the foreign exchange. If the information provided in accordance with this number is false, the investor's manager will be affected by a fine of up to 20% of the amount of investments made in the country, and in any case, it will not be possible. the fine shall be less than the equivalent of 20 annual tax units, which may be made effective on the investor's assets, without prejudice to the investor's right to the investor. The intermediary agent shall be jointly and severally liable for the fine, unless it proves that the false statements were based on documents provided by the relevant investor and that the intermediary agent was not in a position to verify in the ordinary turn of their business. (6) In the case of institutional investors referred to in points (a) to (e) of the renumber 2., the tax treatment provided for in this Article shall apply only in respect of investments which they carry out on their own account and as effective beneficiaries of the investments made, thereby excluding investments made on behalf of third parties or in which the beneficial owner is a third party. This requirement must be credited by means of an affidavit made by the legal representative of the investor, in Spanish or English, and referred to the Internal Revenue Service along with the background referred to in the previous number 5. At the option of the investor, such a declaration may indicate that the investor will act on his own account and as a beneficial owner of the investments made during all the time he invests in Chile, or that he will be able to invest in Chile for both and own account as for the benefit or for the account of third parties. In the case of opting for the second alternative, the legal representative must also declare that the investor undertakes to identify in advance and in writing, to the intermediary agent, each transaction in which he acts for the benefit and for his own account, in addition to committing to establish by means of reliable means the information necessary to guarantee the veracity of such identification. The intermediary agent shall be obliged to protect such written communications for a period of 5 years. (7) If, for any reason, an institutional investor availing himself of the provisions of this Article ceases to comply with any of the conditions required for this purpose, the intermediary agent must inform the Service of Internal taxes in the form and time limit specified by the Service. The delay in the delivery of this information will be sanctioned with a fine of the equivalent of 1 to 50 annual tax units. The respective investor shall cease to benefit from the tax benefit provided for in this Article from the date on which the non-compliance has been established, thereby affecting the common tax system for the income accruing or receiving count at that time, whichever is the date of acquisition of the respective values. The application of the fines set out in numbers 5 and 7 of this Article shall be subject to the procedure laid down in Article 165 of the Tax Code. The provisions of this Article shall apply only in respect of the shares issued by mutual funds governed by Decree Law No 1,328 of 1976, which have laid down in their internal regulations the obligation referred to in points (d), (e) and (f) of the (3.2) of Article 107. Article 107.-The highest value obtained in the disposal or redemption, as appropriate, of the securities referred to in this article, shall be governed for the purposes of this law by the following rules: 1) Shares of open anonymous companies incorporated in Chile with stock market presence. By way of derogation from Articles 17, 8 and 106, no income shall be the highest value obtained in the disposal of shares issued by public limited liability companies with a stock market presence, which meet the following requirements: (a) (i) a stock exchange in the country authorized by the Superintendency of Securities and Insurance, or (ii) in a process of public offering for the acquisition of shares governed by Title XXV of Law No 18.045 or (iii) in the (b) The shares must have been acquired at: (i) a stock exchange in the country authorised by the Superintendency of Securities and Insurance, or (ii) in a process of public offering for the acquisition of shares governed by Title XXV of Law No 18.045, or (iii) in a placement of first shares issue, on the occasion of the formation of the company or an increase in subsequent capital, or (iv) on the occasion of the exchange of securities of public offering convertible into shares, or (v) in a securities redemption pursuant to Article 109, and (c) the case provided for in point (b) of (b) if the shares have been acquired prior to their placing on the market, the higher non-constitutive value of income shall be that which occurs in respect of the higher value of that placement or the value of the books which the stock had the day before its placing on the market, thereby affecting the taxes of the this law, in the form set out in Article 17, the highest value resulting from the comparison of the initial acquisition value, duly adjusted in the manner set out in that Article, with the value Previously noted. For the purposes of determining the value of books, the provisions of Article 41 (3) shall apply. In the case provided for in point (b) of point (b) above, the price allocated in the exchange shall be considered as the purchase price of the shares. 2) Investment fund quotas. The provisions of the numeral 1) shall also apply to the disposal, in a stock exchange of the country authorized by the Superintendency of Securities and Insurance, of investment fund shares governed by Law No. 18,815, which have a stock market presence. It shall also apply to the disposal in those stock exchanges of the quotas which are not present or to the rescue of such quotas where the fund is liquorked or its members agree on a voluntary reduction in capital, provided that the shares are establish in the investment policy of the internal regulations, of both types of funds, that at least 90% of the fund's investment portfolio will be used for investment in shares with a stock market presence. The provisions of the foregoing paragraph shall not apply to the fees and ransoms, as appropriate, of investment fund shares regulated by Law No 18.815, which shall cease to be in compliance with the percentage of investment contemplated in the internal rules of procedure for reasons attributable to the administrator or, where the administrator is not responsible, such non-compliance has not been regularised within the following six months of the date of its production. The fund managers shall annually certify, to the Internal Revenue Service and to the unit-holders that they so request, that the conditions are met. 3) Mutual fund quotas. 3.1) Mutual fund quotas whose investments consist of securities with stock market presence. It shall not constitute income the highest value obtained in the disposal of mutual fund shares of Decree Law No 1,328, which comply with the following requirements: (a) The disposal shall be carried out: (i) in a stock exchange in the country authorized by the Superintendence of Securities and Insurance, or (ii) by means of securities in accordance with Article 109, or (iii) by the redemption of the fund's shares; (b) The shares must have been acquired: (i) in the issue of shares in the respective fund, or (ii) in a stock exchange in the country authorised by the Superintendency of Securities and Insurance; or (iii) in a securities redemption effected in accordance with Article 109; (c) Investments in the internal rules of the respective fund shall establish that at least 90% of its portfolio shall be used for investment in securities having a stock market presence as referred to in this Article, and in the securities referred to in this Article. Article 104. This requirement shall be met if the investments of the respective fund in those instruments are lower than that percentage for reasons attributable to the implementation of the investment policy by the managing company or, where this occurs for other reasons, if in the latter case such non-compliance is not remedied within a maximum period of six months since the date of the case has occurred. Fund managers must certify to the Internal Revenue Service, in the form and time limit required by resolution, compliance with the requirements referred to in this letter. The issuing of maliciously false certificates shall be sanctioned in accordance with the third subparagraph of Article 97 (4) of the Tax Code; (d) the rules of procedure of the respective fund shall include the obligation of the company the administrator to distribute among the members the total of the dividends received between the date of acquisition of the shares and the disposal or redemption of the shares, from the issuers of the securities referred to in point (c) previous. Similarly, the rules of procedure must include the obligation to distribute to the unit-holders an amount equivalent to all the interest accrued on the securities referred to in Article 104 in which the fund has been invested. during the respective business year, in accordance with Article 20. The latter distribution must be carried out in the financial year following the commercial year in which such interest was due, irrespective of the perception of such interest by the fund or the date on which the instruments were (e) the investment policy of the fund contained in its rules of procedure shall include a prohibition on the acquisition of securities which, under any act or contract, deprive the fund of the payment of dividends, interest, repair or other income from such securities to be agreed or appropriate distribute. The managing company which infringes this prohibition shall be penalised by a fine of 1 annual tax unit for each of the securities acquired in contravention of that prohibition, without prejudice to the penalties corresponding to the The provisions of Title III of Decree Law No 3,538 of 1980. 3.2) Quota of mutual funds with stock market presence. It shall not constitute income the highest value obtained in the disposal of mutual fund shares of Decree Law No 1,328 of 1976, which have a stock market presence and are not eligible for the preceding number 3.1), provided that the following requirements are met: The disposal of the quotas shall be: (i) a stock exchange in the country authorised by the Superintendency of Securities and Insurance, or (ii) by means of its contribution in accordance with Article 109, or (iii) by the redemption of the fund's shares when it is carried out in the form of securities in accordance with Article 109; (b) The acquisition of the quotas shall be carried out: (i) in the issue of shares in the respective fund, or (ii) in a stock exchange in the country authorised by the Superintendency of Securities and Insurance, or (iii) in a securities redemption effected in accordance with Article 109; (c) Investments in the internal rules of the respective fund shall establish that at least 90% of its portfolio shall be used for investment in the following securities issued in the country or abroad: c.1) Public offering securities issued in the country: (i) shares of open-ended public limited companies incorporated in Chile and admitted to trading on at least one stock exchange in the country; (ii) public offering debt instruments referred to in Article 104 and representative debt securities whose a period of more than three years admitted to trading on at least one stock exchange in the country which pays interest on a frequency of not more than one year, and (iii) other public offering securities which periodically generate income and which are The Ministry of Finance, established in the regulation, will be issued by the Ministry of Finance. (2) Public offering securities issued abroad: It should be securities that periodically generate income such as interest, dividends or shares, in which issuers are required to distribute such income at a frequency not exceeding one year. In addition, such securities should be publicly offered in markets that have at least similar standards to those of the local market, in relation to disclosure of information, transparency of institutional operations and regulation, supervision, supervision and sanction on issuers and their securities. The same regulation will set a payroll for those markets that meet the requirements set out in this paragraph. The values referred to in the final paragraph of Article 11 shall be understood to be included in this letter, provided that they comply with the requirements set out above. The requirement set out in this letter shall be met if the investments of the respective fund in such instruments are less than that percentage for a continuous or discontinuous period of 30 or more days in a calendar year. The fund managers must certify annually to the Internal Revenue Service, in the form and time limit required by resolution, compliance with the requirements referred to in this letter. The issuing of maliciously false certificates shall be sanctioned in accordance with the third subparagraph of Article 97 (4) of the Tax Code; (d) The rules of procedure of the respective fund shall include the obligation of the company the administrator to distribute among the members the totality of the dividends and interest received between the date of acquisition of the shares and the disposal or redemption of the shares, coming from the issuers of the securities to which the (c) above, except in the case of interest arising from the securities referred to in the Article 104. In the latter case, the rules of procedure must provide for the obligation to distribute to the unit-holders an amount equivalent to all the interest earned on those securities during the respective business year in accordance with the provided for in Article 20. The latter distribution must be carried out in the financial year following the commercial year in which such interest was due, irrespective of the perception of such interest by the fund or the date on which the instruments were (e) Where shares, shares or other securities of a similar nature with the right to dividends or any kind of profit, are such provisional or definitive, during the five days prior to the end of the determination of its beneficiaries, the managing company must distribute among the members of the an amount equal to the total of the dividends or profits referred to in this letter, which shall be deemed to be (i) the substance. Where debt instruments have been set up within five working days prior to the date of payment of the respective interest, the managing company shall distribute among the unit-holders an amount equal to the total of those interests, which shall be deemed to be received by the fund, unless they come from the instruments referred to in Article 104. If the management company has not complied with the obligation to distribute to the unit-holders the income referred to in this letter, that company shall be subject to a fine of up to one hundred per cent of such income, not being able to a fine of less than the equivalent of 1 annual tax unit. The application of this fine shall be subject to the procedure laid down in Article 165 of the Tax Code. In addition, the managing company will have to pay for such income a single and substitute tax of any other tax in this law with a rate of 35%. This tax must be declared and paid by the managing company in the month of April of the year following the commercial year in which the distribution of such income was due. With regard to the tax referred to in this paragraph, the provisions of Article 21 shall not apply, and shall be considered as a tax subject to withholding tax for the purposes of the application of penalties, and (f) the investment policy of the fund contained in its rules of procedure shall include a prohibition on the acquisition of securities which, by virtue of any act or contract, deprive the fund of the payment of dividends, interest, repair or other income from such securities which would have been agreed or corresponds to distribute. The managing company which infringes this prohibition shall be penalised by a fine of 1 annual tax unit for each of the securities acquired in contravention of that prohibition, without prejudice to the penalties corresponding to the The provisions of Title III of Decree Law No 3,538 of 1980. 4) Stock market For the purposes of this law, securities or securities with a stock market presence shall be understood to be those that comply with the provisions of the Regulation of Decree Law No. 1,328 of 1976. The provisions of this Article shall also apply where the disposal takes place within 90 days of the date on which the title or value has lost stock. In this case the highest value obtained shall not constitute income only up to the equivalent of the average price that the title or value has had in the last 90 days in which it had a stock market presence. Excess over such value shall be taxed at the level of the first, complementary or additional global taxes, as appropriate. For the above, the taxpayer must credit, when the Internal Revenue Service so requires, with a certificate of a stock exchange, both the date of the stock's loss of stock, and the average value indicated. (5) The losses obtained in the disposal, on or off the stock, of the securities referred to in this Article, shall be deductible only from the non-constitutive income of the taxpayer. Article 108.-The highest value obtained in the rescue or disposal of mutual fund shares which are not in the situations governed by Articles 106 and 107 shall be deemed to affect the rules of the first category; supplementary or supplementary to this law, as appropriate, with the exception of taxpayers who are not obliged to declare their income in accordance with the accounts, which shall be exempt from the tax of that category. The higher value shall be determined as the difference between the acquisition value and the redemption or disposal value. For the purposes of determining this difference, the acquisition value of the shares shall be expressed in their equivalent in units of promotion according to the value of that unit to the date on which the contribution was made and the redemption value shall be expressed in its equivalent in promotion units according to the value of this unit to the date on which the rescue is performed. The managing companies shall send to the Internal Revenue Service, before 31 March of each year, the payroll of investments and bailouts made by the members of the funds during the previous calendar year. Persons who are members of mutual funds who have investment in shares and who are not in the situation referred to in paragraphs 3.1 and 3.2 of the previous Article shall be entitled to a credit against the first class tax, additional or additional aggregate, as appropriate, to be 5% of the largest value declared by the redemption of shares of those funds in which the average annual investment in shares is equal to or greater than 50% of the fund's asset, and 3% in those funds that are between 30% and less than 50% of the fund's assets. If a surplus of that credit is found, the latter shall be returned to the taxpayer in the form referred to in Article 97. For the purposes of this Article, the settlement of the shares of a mutual fund by the participant in order to reinvest their product in another mutual fund other than those described in numerals 3.1 and 3.2 of the previous article. To this end, the participant must instruct the managing company of the mutual fund in which it maintains its investment, by means of a power that must comply with the formalities and contain the minimum particulars that the Internal Revenue Service will establish by means of a decision, to liquide and transfer, all or part of the proceeds of its investment, to another mutual fund administered by it or to another managing company, which shall allocate it to the acquisition of shares in one or more of the mutual funds administered by her. The taxes referred to in this Article shall apply, in the case of reinvestment of contributions in mutual funds, by comparing the value of the shares initially acquired by the participant, expressed in units of promotion according to the value of that unit on the day on which the contribution was made, minus the unreinvested capital rescues effected in the interim period, expressed in units of promotion according to their value on the day the respective rescue was carried out, with the value of the Quotas that are definitively rescued, expressed according to the value of the unit of promotion of the day in which the rescue is carried out. The credit referred to in the fourth subparagraph shall not proceed with respect to the higher value obtained in the redemption of mutual fund shares, if the respective investment has not been exclusively invested in the mutual funds referred to in that paragraph. The management companies of the funds from which the shares are liquidated and the managers of the funds in which the resources are reinvested, must inform the Internal Revenue Service in the form and deadlines that it determines, on the investments received, the settlement of quotas not considered ransoms and the ransoms made. In addition, the management companies of the funds from which shares are wound up not considered ransoms must issue a certificate stating the background required by the Internal Revenue Service in the form and time limits to be determined. The non-issuance by the management company of the certificate in the opportunity and form indicated in the preceding paragraph, its incomplete or erroneous issuance, the omission or delay of the delivery of the information required by the Tax Service Internal, as well as incomplete or erroneous delivery, will be sanctioned with a fine of a monthly tax unit up to an annual tax unit for each default, which will be applied in accordance with the procedure set out in Nº 1 of the Article 165 of the Tax Code. Article 109.-The greater or lesser value in the contribution and redemption of securities in mutual funds governed by Articles 2 °, 2 °, 13 and following of Decree Law No. 1,328 of 1976 shall be determined for the purposes of this law, as follows: Rules: 1) Acquisition of mutual fund shares through the provision of securities. (a) The value of the acquisition of the fund's shares for those investors who make contributions in securities shall be determined in accordance with Article 15 of Decree Law No. 1,328 of 1976, and shall be publicly informed by the management company. (b) The price of disposal of the securities to be provided shall correspond to the value of the securities or instruments forming part of the investment portfolio of the mutual fund and used for the purposes of determining the value of the share In accordance with the provisions of Decree Law No 1,328 of 1976. The value of such securities or instruments shall be publicly reported by the managing company. 2) Rescue of mutual fund shares by acquiring securities. (a) The value of the redemption of the shares of the fund for those investors who make it through the acquisition of securities that are part of the fund's portfolio, shall be determined in accordance with the provisions of Article 15 of Decree Law No 1,328, 1976, and will be publicly informed by the managing company. (b) the acquisition value of the securities or instruments by which the redemption referred to in the preceding literal is effected shall be used for the purposes of determining the value of the respective share, as provided for in the Decree Law No. 1,328 of 1976. Similarly, the value of such securities or instruments must be publicly reported by the managing company. ' Article 7.-Banks, Insurance Companies, Savings and Credit Unions, Credit Card Issuers, Administrator Agents For the purposes of this Regulation, the Commission shall, in accordance with Article 1 (2) of Regulation (EU) no-6/ (1), provide for the provision of information to the European Parliament and the Council of the European Parliament. universal mortgage loans, universal credits associated with a credit card and universal consumer credit in the terms of this article, without prejudice to the provision and granting of other classes of credits in accordance with the law. The granting of such credits shall be subject to the usual comprehensive risk assessment practices carried out by credit institutions. Universal Mortgage Credit means the money credit transaction that has the following characteristics: (1) that intended solely for natural persons; (2) that granted exclusively for the purpose of acquiring, constructing, extending or repairing dwellings or of refinancing existing mortgage loans; (3) the guaranteed first mortgage; (4) the to be paid within a period of not less than 15 and not more than 30 years; 5) the so-called Promotion Units; 6) the one which establishes a fixed interest rate, for the entire duration of the credit; 7) which does not exceed 5,000 Units of Promotion; and (8) which complies with the other conditions laid down in the Regulation. Also, the Universal Credit Associated with a Credit Card and by Universal Credit for Consumer credit transactions that meet the following characteristics: (1) are granted to natural persons; (2) are not subject to real guarantees; (3) must be paid within up to 3 years; (4) do not exceed 1,000 units of promotion in the case of Universal Consumption Credits and 500 in the case of Credit Universal Associated with a Credit Card; 5) entitle the cardholder or user, in the case of the Universal Credit associated to a Credit Card, to use it in the acquisition, under the same, of any kind of goods or services, sold or provided by entities other than the issuer or operator of the card which accepts it as a means of payment in (a) the application of the rules of procedure laid down in Article 4 (1) of Regulation (EEC) No 4306/90 of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament and of the Council of the European Parliament Information on the final cost of universal mortgage loans, universal credits associated with a credit card and universal consumer credit, at its equivalent annual charge, to the structure of commissions and interest, to the expenditure associated with them, the insurance against which the obligations arising from their payment are subsist and other types of information to be determined by the Regulation, must be expressed in a clear and visible manner enabling the consumer understand it in a simple and effective way, compare the options offered by the various suppliers and exercise their right of choice. A regulation issued by joint supreme decree of the Ministries of Economy, Development and Tourism and Finance, after consulting the Superintendency of Banks and Financial Institutions, to the Superintendency of Securities and Insurance and to the Superintendence of Social Security, it will specify the way in which universal mortgage credits, the universal credits associated with a credit card and the universal consumer credits will have to be offered. The Regulation shall also determine the specific time limits for the respective credit, its minimum and maximum amount, the structure of fees and interest rates, the types of insurance to be counted for as long as the obligations arising from the payment of the the same and the form of recruitment and term, as well as the minimum information to be given to consumers of such claims. The use of the denominations Universal Mortgage Credit, Universal Credit Associated with a Credit Card and Universal Consumer Credit will be reserved exclusively for those credits that meet the characteristics mentioned in the (i) Article 8.-The providers of claims requiring the hiring of insurance associated with their grant may not be able to condition, or offer different conditions of employment, to those consumers who contract the insurance that such suppliers offer or intermediate, the debtor being able to freely contract the policy in any of the entities that market them. However, the credit provider may require a minimum cover, which the insurance undertaking has a risk classification at least equal to that recorded by the insurance undertaking offered by the credit provider and which is designated as insurance beneficiary to the latter or to whom I pointed out. Article 9º.-The following amendments are introduced in the General Law of Banks, the text of which was fixed by the single article of the decree with force of law No. 3, 1997, of the Ministry of Finance: 1) Intercalase in article 33, between the sentence 'own acts of bank rotation' and the following point: ', without prejudice to the fact that they may advertise in the country the credit products or services of their parent houses to be determined by the Superintendency, in accordance with the general rules which is dicte. " 2) Add in Article 69 (2), following the separate point, which happens to be followed, the following: " Likewise, and subject to the general rules that the Superintendence dictates, the banks may issue bonds without special guarantee, with the the purpose of allocating the funds received exclusively to the grant of mutual funds that are covered by a mortgage guarantee for the financing of the acquisition, construction, repair or expansion of dwellings. This circumstance must be entered in the corresponding issuance, together with the maximum period of granting of such credits from the funds obtained in the placement and with the conditions of early rescue in case of failure to comply with the above. In addition, reference will be made to such circumstances in the corresponding bond issue. According to the rules of the Superintendency, the bank issuing bonds for mortgage financing will be able to replace the allocation of mortgage mutual funds it grants, associating the latter with other loans. the same nature, which must be kept on record in a special register which shall be subject to such rules. The mortgage securities referred to in the preceding paragraphs may not correspond to those indicated in numerals (5) and (7) of this article, without prejudice to which they shall be governed by the provisions of Title XIII of this Law, which is applicable, including the special procedure referred to in Articles 103 et seq. The Central Bank of Chile may exercise, in connection with the granting by the banking companies of the mortgage loans referred to in this number, the regulatory powers provided for in Articles 92 (1) and 99 of this Law, in particular, in respect of the investment in transferable securities of fixed income of the resources obtained by the bank through the placement of bonds, until the granting of the respective mortgage mutual funds. The rules laid down in Articles 125, 126 and 134 of this Law shall also apply to mortgage loans and bonds issued for their financing, with the understanding, for all legal purposes, of the references made by the referred to in the case of mortgage bonds in respect of which this number is treated, the issuing institution shall comply with the obligations contained in those articles in respect of the portfolio of mortgage loans linked to a particular bond issue. The same treatment shall apply to transferable securities of fixed income as referred to in the preceding subparagraph, if applicable. "3) Replaced in the third subparagraph of Article 70 (a) the phrase" insurance through a broker " insurance that they offer, the debtor being able to contract the policy freely in any of the entities that commercialize it, under the condition that the same conditions of the same coverage and is considered to be a beneficiary of the insurance to the bank or to whom it designates. " Article 10.-Introduces the following changes in the number 1) of the first transitional article of Law No. 20,190, which introduces tax and institutional adjustments for the promotion of the Venture Capital Industry and continues the The process of modernization of the Capital Market: 1) In the literal (ii) of the second paragraph, replace the expression ", and" by a point followed (.) and add, then, the following: " This restriction shall not apply in those cases which, on the occasion of the disposal of the investments of the fund they have taken place as a result of the partial liquidation of the same, that percentage has ceased to be fulfilled, and '. (2) In the third paragraph, following the separate point, which shall be followed, add the following: " For the sole effect of the provisions of this number, and without prejudice to the third subparagraph of Article 1 (1) of Law No 18,815, the Investment funds may have a minimum of 25 contributors. "3) In the literal (iv) of the fourth paragraph, the expression" four hundred thousand units of promotion "is replaced by" five hundred thousand units of promotion ". (4) In the fifth subparagraph of the fifth subparagraph, replace the words "15%" with "30%". " TRANSITIONAL PROVISIONS Article 1.-The amendments introduced This law, with the exception of those introduced in Article 1, shall apply on the first day of the month following that of its publication. The modifications introduced by article 1 ° to Decree Law No. 1.328, 1976, will begin to govern the first day of the month following the one of the decree of the supreme decree of the Treasury that replaces the current supreme decree No. 249, of the Treasury, of 1982, which must be issued no later than three months after the publication of this law. Article 2.-The mutual fund managers shall have a one-year period, counted from the publication of this law, to deposit the internal regulations and subscription contracts of the mutual funds they administer, which have been approved by the Superintendence prior to that date. The quotas of these mutual funds may be marketed without the need for the respective deposit, as long as their internal regulations and subscription contracts are not modified. Amendments to those internal regulations and subscription contracts shall comply with the provisions introduced by this law. As long as these internal regulations and subscription contracts for quotas have not been deposited, those requirements contained in Articles 11 and 12 A of Decree-Law No 1,328, 1976, the fulfilment of which must apply from the date on which the The administrator can market the quotas, they will have to apply to the date of approval of the internal rules of the respective fund from the Superintendence. Article 3.-Without prejudice to the provisions of Article 6 (1) of this Law, mutual funds governed by Decree Law No. 1.328 of 1976, which were established prior to the entry into force of this Law, may continue to be covered by this law. the regime established by Article 18b of the Law on Income Tax contained in Decree Law No. 824 of 1974, which will continue in force for such purposes until 31 December 2011. In the case of taxpayers who have acquired the respective securities or securities prior to the validity of this law, any form of acquisition of the securities or securities shall be deemed to have been met with the acquisition requirements. (b) in points 3.1 and 3.2 of Article 107 of the Law on Income Tax. The tax benefit set out in Article 107 (2) (2) above shall apply only to those shares of mutual funds which have been acquired after the entry into force of this law and to the the date on which the regulation of the respective fund complies with that set out in that number. For these purposes, the mutual fund management companies constituted prior to the entry into force of this law shall report to the Internal Revenue Service, in the form and time limit determined by the Internal Revenue Service, the date on which they are made the amendments to the rules of the respective fund as set out in Article 107 (2) of this Regulation. '; Having complied with the provisions of Article 93 (1) of the Constitution of the Republic of the Republic, and because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, July 26, 2010.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Felipe Larraín Bascunan, Minister of Finance.-Juan Andrés Fontaine Talavera, Minister of Economy, Development and Tourism.-Camila Merino Catalán, Minister of Labour and Social Welfare. What I transcribe to you for your knowledge.-Saluda Atté. to you, Rodrigo Alvarez Zenteno, Undersecretary of Finance. CONSTITUTIONAL COURT BILL INTRODUCING A SERIES OF REFORMS IN THE FIELD OF LIQUIDITY, FINANCIAL INNOVATION AND CAPITAL MARKET INTEGRATION (BULLETIN NO 6692-05) The Secretariat of the Constitutional Court, who subscribes, certifies that the Honorable Chamber of Deputies sent the bill enunciated in the rubric, approved by the National Congress, so that this Tribunal would exercise the control of constitutionality of the articles 2nd, number 2); 3rd, number 1), and 9th, number 2), Fourth, of the draft, and in the cars role No. 1.752-09-CPR: It is declared: That the articles 2, Number 2); 3rd, No. 1), and 9th, No. 2), fourth, of the draft law referred to are constitutional. Santiago, July 15, 2010.-Marta de la Fuente Olguin, Secretaría.