IT INTRODUCES AMENDMENTS TO LAW N ° 19,396, ON SUBORDINATED DEBT Having present that the H. National Congress has given its approval to the following Bill of Law: " Article 1 °.-Enter the following amendments to the law N ° 19,396: 1. Replace point (b) of Article 18, as follows: " (b) Once it does not subtract shares from the maximum number to be issued in Article 11, by application of that Article and Article 12, or once the total shares are tendered and paid are part of the tendering programme in the case of Article 13, or once it does not subtract actions from those referred to in Article 24 (b). The obligation under Article 12 of the maximum number of shares to be issued in Article 11 or the payment of the shares referred to in Article 24 (b) shall also be extinguished. Similarly, the obligation under the provisions of the foregoing Articles and Article 13 to be paid in the conventional payment shall be extinguished; or by application of advance payments or pre-payments made in accordance with the conditions laid down in Article 13 (1) of the Treaty. laid down in Article 20. The Central Bank of Chile may at any time agree on the terms and conditions to agree and exercise the ransom, the payment and the opportunity to determine the price of the shares. In the case of total or partial payment of shares referred to in the preceding subparagraph, their price shall be determined in accordance with the provisions of the first subparagraph of Article 11 (1) and the shares received shall be signed by the Central Bank of Chile within the period, price, form of payment and other terms and conditions established by that institution by agreement of its Council, including the power to dispose of the shares by means of a total preferential offer or partial to the shareholders of the respective bank. As long as the shares given in payment are held by the Central Bank of Chile, they will enjoy the right to receive the percentage of dividends, free shares and subscription options and other rights that correspond to the shareholders. pro rata of their participation in the capital, with the sole exception that they shall not have the right to vote in the Shareholders ' Boards, or to be counted for the purposes of the corresponding quorum. For the purposes of the payment of shares provided for in the third subparagraph of this letter, the Board of the Bank or the parent company or the administrator, if any, shall proceed to it with the sole merit of the agreement adopted by the Board of Directors. Shareholders in accordance with Article 34, having to offer such shares preferably to their shareholders in the form laid down in Article 12 (a). If the shareholders or the transferee of the preferred options opt not to subscribe to the whole or part of the shares, the remainder of the shares shall be delivered in payment to the Central Bank of Chile, and the obligated bank or the parent company or If applicable, they shall comply with the agreed payment with the delivery of the remainder of the shares and with the funds from the subscription and payment of the shares placed between the shareholders or the transferee of the preferred options, and '. 2. Substitute in the final paragraph of Article 21, the phrase "Articles 8 and 12" by "Articles 8 °, 12 and third subparagraph of Article 18 (b)". 3.-Add in Article 33, the following point: " In the same way, the parent company, the managing company, the new bank, and the shareholders of all of them shall be extended the same tax provisions as applicable, on the basis of the provisions of this law, the banks exercising the option referred to in Article 1 and their shareholders. By virtue of the provisions of this paragraph, no taxes or higher taxes may be levied on the parent company, the managing company, the new bank, and the shareholders of all of them, who are not from the banks carrying out the (a) option and its shareholders, as well as discrimination in respect of tax benefits, to the extent that such taxes or discrimination are generated exclusively as a result of the exercise of the option. In such a way, the adoption of the alternative scheme may not further involve a different benefit, injury or tax treatment for taxpayers who opt for such a scheme, including the parent company, the company manager, the new bank and the shareholders of all of them. " Article 2.-The provisions of this law shall also govern for banks which, at the date of their publication, shall be subject to the rules of law No 19.396, without requiring a new law to amend contracts. which have been concluded under the latter's protection. For the purposes of the payment provided for in the final subparagraph of Article 18 (b), the banks referred to above must hold the corresponding Extraordinary Shareholders ' Meeting which empowers the Board to avail itself of the provisions of the this law. ' Having complied with the provisions of Article 82 of the Constitution of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of Mexico, and because I have had to approve and sanction it, I therefore promulgate and take effect as the Law of the Republic. Santiago, May 24, 1996.-EDUARDO FREI RUIZ-TAGLE, President of the Republic.-Eduardo Aninat Ureta, Minister of Finance. What I transcribe to you for your knowledge.-Salute to Ud., Manuel Marfan Lewis, Undersecretary of Finance. Constitutional Court Bill supplementing Law No. 19,396, on subordinated debt. The Secretary 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 Court would exercise control over the (a) the provisions contained in Article 1 (1) of the Treaty and which, by judgment of 14 May 1996, have been declared: 1. The provisions referred to in the third and fourth subparagraphs, in the part which reads: ' In the case of a total or partial payment of shares, as referred to in the preceding subparagraph, the price shall be determined in accordance with the provisions of the The first subparagraph of Article 11 (1), and the shares received in payment shall be drawn up by the Central Bank of Chile within the period, price, form of payment and other terms and conditions laid down by the Central Bank in accordance with its Council, including the power to dispose of shares by means of a preferential offer in whole or in part 'the shareholders of the respective bank', of Article 1 (1) of the draft amending Law No 19.396, subject to scrutiny, are constitutional. 2. That it is not for this Court to rule on the provisions referred to in the first, second, fourth, second, second, and express points, which states: " As long as the shares given in payment are held by the Central Bank of Chile enjoy the right to receive the percentage of dividends, of shares released and of subscription options and other rights that correspond to the shareholders, in proportion to their participation in the capital, with the sole exception that they will not be entitled to voice or vote in the Shareholders ' Boards, or to be computed for the purposes of the quorum " and fifth, of the number 1, of article 1 °, of the project amending Law No. 19.396, subject to control, for dealing with matters that are not their own constitutional organic law. Santiago, May 20, 1996. Rafael Larraín Cruz, Secretary.