INTRODUCES AMENDMENTS TO LAW N ° 19.281, ON HOUSING LEASES WITH PROMISE OF PURCHASE SALE Having present that the H. National Congress has given its approval to the following Bill: " Single article.-Enter the following amendments to Law No 19.281, which lays down rules on the leasing of dwellings with a promise of purchase: 1) Replaces the term "Fund for Housing" by the word "fund" in the final paragraph of Article 1; and eliminate at the same time, the open quotation marks (") and close quotation marks (") of the replaced term. (2) First, in the first paragraph of Article 2, the sentence: "The person concerned may only operate with an institution." 3) Replace Article 3 ° by the following: " Article 3 °.-From the resources provided monthly in the account, the institutions shall pay the lease rent to the seller-seller and shall discount the commission referred to in Article 5. The balance of that contribution shall constitute the fund available for the payment of the price of the promised purchase. With those resources, the institutions shall constitute one or more Funds, which shall be called "Housing Fund", which shall be administered and invested in accordance with the provisions of Title VI of this Law. The institutions shall entrust the management of the Housing Fund to a company governed by the Title referred to above, for which the corresponding administrative contract shall be concluded with it. Entrusted the Fund to one of these companies for its administration, the audit of the same will correspond exclusively to the Superintendence of Securities and Insurance. The institutions shall keep a record in which the number of shares in the Housing Fund that corresponds to each of the holders of the accounts shall be indicated in the terms provided for in the regulation of this law. In the event of dissolution of the institution holding the accounts, either by revocation of its authorization of existence or by any other cause, the liquidator shall transfer the accounts to another institution of the accounts referred to in Article 1. The transfer shall comprise the Fund, the methodical savings contracts and the corresponding administration contract concluded with the Housing Fund Administrator. "4. Substitute, in the first indent of Article 4 °, the expression" in the the supreme decrees issued in accordance with Article 56 of this Law. ', by reference' in the Rules of Procedure. '(5) Substitute, in the third indent of Article 4 °, the expression' to the percentage corresponding to ', by the sentence' to a percentage of ". (6) Rule out the fourth paragraph of Article 4 ° and add in the final paragraph of this article, following the term "tenant" the words "promited buyer". 7. In the first paragraph of Article 5, the expression "shall be entitled to" by the locution "may obtain". (8) Substitute the second indent of Article 5 ° by the following: " The commission shall include, among other expenditure, the remuneration of the management company of the Housing Fund and shall be freely established by each institution, with a view to uniform for all account holders of the same Fund. These commissions will be exempt from the Value Added Tax and must be informed to the public and the audit body that has the institution, in the form that the regulation points out. The modifications of this commission may be made twice in the year and shall govern ninety days after being communicated to the respective audit body, within which the holder of the account may be changed from institution or fund, change which shall not be taken into account for the purposes of Article 2. '; (9) Replace Article 7 ° by the following: " Article 7 °.-Without prejudice to the foregoing articles, the contribution may also be directly heard in the real estate company, in which case the part of the contribution that exceeds the lease income shall be paid at the price of the promised purchase, in the form agreed upon in the respective contract. The resources thus entered must be considered for the calculation of the debt limit referred to in Article 22 of this Law. The beneficiaries of the housing allowance that regulates Title V of this law will also be able to operate in the manner described in this article. In such a case, the balance of the account shall be transferred by the institution holding the account to the real estate company. ' (10) Substitute Article 9 °, by the following: " Article 9 °.-If the tenant promited buyer is a worker dependent, at the written request of the latter, the contribution and the regular voluntary deposits will be discounted by the employer, according to the norms indicated in article 19 of the decree law N ° 3,500, of 1980. These discounts may not exceed 30% of the total remuneration of the worker and shall be understood as being the character of mortgage dividends for the purchase of dwellings, for the purposes of Article 58 of the Labour Code. The obligations imposed and the powers conferred on the Administrative Board of Pension Funds shall be construed as being imposed and conferred on the institutions referred to in Article 1, and on the real estate companies referred to in the Title II, in the case provided for in Article 7. If the employer does not pay the corresponding discount, having been required to do so, he must pay the worker, in the form of compensation for damages, a sum equivalent to the average unit of promotion for each month in which he does not carry out the discount, which shall be deposited in the account referred to in Article 1 and shall include the available fund referred to in the first subparagraph of Article 3, or shall be paid at the price of the purchase/sale promised in the case referred to in Article 7 of the this law. If the employer makes the withholding tax and I shall not find out the corresponding funds in the account for two consecutive months or three months in total at any time, the institution which maintains that account or the real estate company shall, where appropriate, notify the buyer to the buyer and the real estate company that owns the rented house, so that he makes the future contributions directly to the relevant entity and orders his employer to suspend the the holds. The institutions must accept the direct payment procedure until the buyer's promotional tenant again requires the corresponding discount from his employer. Without prejudice to the foregoing, the institutions referred to in Article 1 and the real estate companies, as appropriate, shall pursue the payment of the withholding tax which they have not heard in the account of the employer. or in the real estate company, in accordance with the same legal rules for payment and recovery as the pre-viewing contributions, enjoying the same preference as these. The legal procedures for the collection referred to in the preceding paragraph, without the payment of the full payment, shall be understood as extended to the term of the housing lease with a promise of sale in a number of equal months. the number of unpaid shares up to a maximum of 12 months, which must be paid within that period by the buyer, without any additional surcharge. "11) Add in the second indent of Article 10, following the term" lessor ", the expressions "prompt seller". (12) Add the following Article 10a to Title I: " Article 10a.-These accounts may benefit from the mechanism set out in Article 57a (B) of Decree-Law No 824 of 1974 and for the purposes of the provisions of that provision. institutions mentioned in article 1 of this law will be considered as receiving institutions. For the purposes referred to in the foregoing paragraph, the application of the existing funds in the account of the payment of the price of the promised purchase and the transfer of these funds in the case of disposal shall not be considered to be a change or withdrawal. tenant, buyer, of the lease with a promise of sale, provided that in the latter case the buyer promising buyer celebrates a new lease with a promise of purchase or purchase a housing, for this purpose the price which it obtained for the sale of the contract, within the period of 90 days, counted from the date of the transfer. "13) Replaces Article 11, by the following:" Article 11.-For the purposes of this law, are property companies all those whose object is the acquisition or construction of housing to lease them with a promise of sale. Such companies shall be constituted as public limited liability companies, shall be governed by the rules applicable to public limited liability companies in so far as it is not incompatible with the provisions of this law, and shall be subject to the supervision of The Superintendence of Securities and Insurance, hereinafter "the Superintendence", which shall have, for these purposes, the privileges and powers conferred on it by its organic law. "14) Replace the first paragraph of Article 12, by the following:" Article 12.-Authorize the companies referred to in Article 98 (j) of the Decree-Law No. 3,500, 1980, to constitute and be part of the real estate companies referred to in this Title. "15) Add the following paragraph to Article 12:" Open housing cooperatives governed by Decree Law No. 1,320 of 1976, which they have a patrimony of not less than fifty thousand units of promotion may constitute and be part of the real estate companies (16) Substitute in the first paragraph of Article 13 the expression "to the rules of the General Law of Banks.", by the locution " to the rules applicable to the subsidiary companies referred to in Article 83 number 11a (b) of the General Law of Banks. "(17) Substitute, in the second paragraph of Article 13, the expression" this law "by the locution" this Title ". (18) Add the following paragraph to Article 13: "By way of derogation from Article 16, the subsidiaries referred to in this Article may not refer in their name to the term" real estate companies "." 19) Add the following paragraph Article 13: " The powers that this law grants to the Superintendency of Securities and Insurance, in respect of the real estate companies in which it deals with this Title, will be applied by the Superintendence of Banks and Financial Institutions when in the case of the companies referred to in this Article. ' (20) Substitute Article 14, by the following: "Article 14.-Authorize the mortgage mutual administrative agents referred to in Article 21a of the decree with force of law N ° 251, of 1931, to constitute and form part of the companies referred to in this Title." (21) Substitute Article 15, as follows: " Article 15.-The family allowance boxes may constitute and form part of the real estate companies referred to in this Title. For the purposes set out in the preceding paragraph, allow the family allowance boxes to make the corresponding contributions of capital from the Social Fund referred to in Articles 29, 30 and 31 of Law No 18,833. ' 22) Add the following point to Article 16: " Authorize the family allowance boxes, banks, financial corporations and open housing cooperatives, to provide administration services in relation to (a) with the lease agreements with a promise of sale to be concluded under this law. "(23) Substitute Article 17, by the following:" Article 17.-The real estate companies referred to in this Title may issue bonds, according to with the rules of Title XVI of Law No 18,045, whose amounts and periods of depreciation are concordant with the deadlines and revenue streams contained in the lease agreements with a promise of purchase and which are part of their asset. These companies may dispose of houses leased with a promise of sale, provided that they jointly yield the lease with a promise of sale, to securitizing companies of Title XVIII of Law No. 18,045, which are authorised to acquire them for the purpose of issuing debt securities with the backing of those assets, in accordance with the provisions of that Title and this law. Such disposal shall be effected in accordance with the provisions of Article 30 of this Law. The dwellings, given in tenancy with a promise of sale in accordance with the provisions of Article 7 of this Law, may not be used for the purposes referred to in the preceding paragraph. ' 24) Replace Article 18, by the following: " Article 18.-The mortgage mutual-managing agents referred to in Article 14 and the real estate companies concerned with this Title, other than those referred to in Article 13, may constitute and form part of securitizing companies of Title XVIII of Law No 18,045. In the case of family allocation compensation boxes, the open housing cooperatives referred to in Article 12 and the companies referred to in Article 98 (j) of Decree Law No 3,500 of 1980 may constitute and be a party, directly or indirectly, of such securitiating companies, provided that they are exclusively subject to the issuance of the debt securities referred to in the second indent of the previous Article. For the purposes set out in the preceding paragraph, the family allowance boxes shall be authorised to carry out the corresponding contributions of capital from the Social Fund referred to in Articles 29, 30 and 31 of the Law N ° 18.833. The subsidiary companies of the entities referred to in Article 98 (j) of Decree Law No 3,500 of 1980 shall be subject to the debt limits laid down in Article 130 of the said decree if they are less than those laid down in Title XVIII of Law No 18,045. ' 25. Rule 19. 26) Replace Article 20, by the following: " Article 20.-The securitizing companies that issue the debt securities referred to in the second paragraph of Article 17 of this Law may dispose of the goods that make up the respective debt securities. separate assets, for the sole purpose of fulfilling the promised purchase and/or when there is consent of the representative of the holders of the respective debt securities. For the purposes of the third subparagraph of Article 137 of Law No 18,045, it shall not be necessary to certify the custody of the assets which make up the assets of the separate assets. ' (27) Substitute Article 21, by the following: " Article 21.-In the event of dissolution, for any cause, of the companies referred to in this Title and which, at the date of such dissolution, still maintain dwellings leased with a promise of sale, the liquidation of the company shall be practiced by the Superintendence, with all the powers that the law grants to the liquidation of the companies of insurance. The settlement may be delegated by the Superintendent to one or more officials of the Superintendence or other persons, provided that they do not affect the inabilities referred to in Articles 35 and 36 of Law No 18,046. The costs of the liquidation of the company shall be borne by the company. From the moment the company ceases to have houses leased with a promise of purchase and sale, the liquidation will continue, according to the general rules. In any event, the Superintendence may authorize the company to practice its own liquidation. In the event of the dissolution or bankruptcy of a real estate company which would maintain housing with lease agreements with a promise of sale, the acquirer of any such assets shall be obliged to comply with the respective contracts in the agreed form. Liquidators or syndicates, as the case may be, in the disposal of such assets shall be subject to the provisions of Article 30 of this Law, in so far as it is relevant. ' (28) Reposition Article 22, by the following: " Article 22. assets of real estate companies, during their lifetime, may not be less than 10,000 units of promotion, nor can fifty percent of this minimum be affected by taxes, prohibitions or embargo. In addition, those companies may not maintain a debt exceeding that established by the Superintendency in relation to their equity and type of transactions. However, the Superintendence will not be able to establish a maximum debt ratio of less than 8 or more than 15 times the equity of the company. In the case of subsidiary real estate companies of the entities referred to in Article 98 (j) of Decree Law No 3,500 of 1980, they must be subject to the debt limit laid down in Article 130 of the said decree, if the latter is is lower. If the obligations or prohibitions referred to above are not met, or with one of them, the company shall have a period of 120 days to regularise the situation. During the period in which such non-compliance is maintained, the company may not enter into new lease agreements with a promise of sale. The provisions of this paragraph do not prevent the administrative sanctions that the Superintendence may apply, in accordance with its organic law. If the company, in a repeated manner, infringes the provisions of the first and second indent of this Article, or does not regularise its situation within the period prescribed in the preceding paragraph, the Superintendence may prohibit it from the conclusion of new contracts the lease with a promise of purchase, up to a period of two years, a penalty which may be renewed if the non-compliance is maintained to the date of its respective maturity. For the purposes of this Article, it shall be understood that there is a reiteration where two or more of these infringements are committed within a period of 12 months. ' (29) Substitute Article 23, as follows: " Article 23.-The issuance of bonds to which the Article 17 (1) of this Law refers to the first indent of Article 17 of this Law, and the issue of debt securities by securitizing companies, as provided for in the second indent of Article 1, shall be exempt from the tax laid down in Article 1 (3) of this Law. Decree Law No 3,475 of 1980 on the Tax of Timbers and Stampels. ' 30) Repeal Article 24. 31. In the second paragraph of Article 25, the words "divested for sale" and "lease contract" shall be replaced by the words "sold" and "lease" respectively. (32) Substitute the third indent of Article 25, by the following: " For the account holder who is running for housing allowance, the dwellings covered by the lease with a promise of sale shall be economic housing In the case of a decree with force of Law No. 2 of 1959, or social housing referred to in Article 3 of Decree Law No 2,552 of 1979, or houses built prior to the law of 1959, which comply with the law of the with the requirements of Article 6.1.13. of Chapter 1 of Title 6 of the General Ordinance of Urbanism and Constructions, approved by supreme decree No. 47, of Housing and Urbanism, 1992. " 3 3) Replace in the fourth paragraph of Article 25 the expression "Supreme Decree" by "decree with force of law" and delete the incisos sixth and seventh of this article. (34) First, in the first paragraph of Article 26, the phrase "and the Prohibitions and Prohibitions of Enajenar". (35) First, in the second indent of Article 26, the phrase " with the exception of the charges laid down to guarantee the bonds to be issued in accordance with Article 17, which may be imposed at any time. ', previously replaced by a point (.) of the comma (,) preceding it. 36) Substitute, in the third paragraph of Article 26, the locution "of the material delivery of the dwelling to the buyer's promising tenant." by the expression "of the lease with promise of sale." 37) Article 26 (4), the term "buyer", followed by the word "tenant". (38) Add the following Article 26a: " Article 26a.-In the case provided for in Article 7 °, the lease with a promise of purchase must contain, as an integral part of it, a development table, which it establishes, for each period of payment of the contribution, the part of it intended for the payment of the lease income and the part intended for the partial payment of the promised price, and the insolute balance of the price, resulting after payment of the contribution in the respective period. The Regulation shall lay down the conditions and the periodicity with which the property company must inform the prospective tenants who have entered into contracts in the manner referred to in the preceding paragraph, in order to ensure that know, for the duration of the contract, the amount of rent, the partial credits for the payment of the price of the promised purchase, the accumulated amount of these and the insolute balance of the price. In the case of contracts with direct payment of the contribution to the real estate company, as referred to in the preceding points, the option of the buyer to the buyer to pre-pay at any time, in whole or in part, the balance must also be included. insolute of the price of the promised purchase. The regulations will establish the conditions of the prepayment, total or partial. In the lease agreement with a promise of sale, the option of the buyer to the buyer must be included to prepay at any time, in whole or in part, the price of the promised purchase. The Regulation shall lay down the conditions for prepayment, in whole or in part. ' 39) Substitute point (a) of the first indent of Article 27, by the following: " (a) Where the balance of the account in the institution, or the total of the fertilizers at the price of the The promised sale as referred to in Article 7 ° shall be equal to the selling price stipulated in the lease with a promise of sale. '40) Reposition, in point (b) of the first indent of Article 27, the locution' within a period not exceeding exceeding 12 months "by the expression" within the period not exceeding the time required to complete the part of the price not entered, in so many quotas of an amount equal to those stipulated in the contract ". (41) Add, in point (c) of the first subparagraph and in the third indent of Article 27, the term "buyer", following the word "tenant". (42) Substitute Article 28, by the following: " Article 28.-The purchaser shall be responsible for all expenses, duties and taxes which are directly taxed by the immovable property covered by the respective lease with a promise (43) It is to be replaced by the words "subscribed" by "Celebrated", the two times as referred to in the first indent of Article 29. (44) Substitute, in the second paragraph of Article 29, the word "lessee" by the expression "buyer promise", and add the following sentence, replacing by a comma (,) the point (.) with which it ends: " or the total of the fertilizers made at the price of the purchase and sale in the case provided for in Article 7. The Regulation shall fix the manner in which this notification is to be made, and the procedure by which the property company must comply with this provision. ' 45) Replace Article 30, by the following: " Article 30.-The real estate company may only dispose of the rented house with a promise of sale, provided that it jointly cedes the lease with a promise of sale, to another company of the same type, to a real estate investment fund, to an investment fund of securitised credits regulated by law N ° 18.815, to a securitizing society of Title XVIII of Law No. 18,045, or to persons who Superintendence of Securities and Insurance has declared as a general rule that they can acquire them. The acquirer to any title of the dwelling, as a transferee of the lease with a promise of sale, shall have the same obligations, rights and powers as the transferor and shall be obliged to comply with the lease agreement with promise of sale in the agreed form. The parties may agree that the administration of the lease with a promise of purchase will be maintained by the transferor. Real estate investment funds, securitised credit investment funds and securitizing companies, for the purposes of the second paragraph of Article 17 of this Law, will be entitled to acquire the assets to which they are refers to this article. The Superintendency of Securities and Insurance will regulate, by means of circulars, the conditions to be fulfilled in these sales and disposals. The sale of the lease agreements with a promise of sale, by the seller promising seller, as well as the transfer, by the buyer promising buyer, of his rights derived from the lease with promise They shall be effected by endorsement. The latter shall then be placed on the margin or on the back of the title, with an indication of the name of the transferor and the transferee, with the signatures of the parties being authorized by notary and the respective transfer to the margin of the registration of the (46) Substitute Article 31, by the following: " Article 31.-In the event of non-compliance by the supplier promising seller of the obligations imposed on him by the lease agreement with promise of sale, the buyer promising buyer will be able to ask for the fulfillment (a) the contract or the termination of the contract, with damages, in accordance with the provisions of Article 1553 of the Civil Code, with the preference laid down in Article 2472 (4) of the Code itself, against the (47) The first paragraph of Article 33 is replaced by the following: " The buyer's supplier may agree with the seller to provide special conditions for the repairs, improvements or extensions of the dwelling object of the contract. If it is agreed that such improvements or extensions shall be the responsibility of the real estate company, the specifications of the works, the opportunity or opportunities in which they are to be made and their impact on the property shall be identified in that instrument. amendment of the monthly contribution and the purchase price. ' 48) Add, in the second paragraph of Article 33, the words "buyer promise" following the term "tenant" and delete the expression " may be agreed of the clauses of the respective contract. ", previously replaced by a semicolon (.) (,) to the foregoing. "49) Replace the first paragraph of Article 34 by the following:" If the extinction of the right of the seller to the seller is produced by a judgment not attributable to the tenant promitor buyer, the dwelling (50) Add, in the second indent of Article 34 and in the numbers 3.-and 4.-of Article 35, following the term 'lessee', the words 'promente' shall be replaced by a similar agreement between the parties. buyer. " (51) Substitute Article 35 (5), by the following: " 5.-For the bankruptcy of the buyer's promited tenant, in which case the judge referred to in Article 40 of this law shall fix the date of restitution of the dwelling, which shall be notified to the (i) for compliance, and for damages, which shall be paid from the balance of the account, or from the payments made to the payment of the price of the promised purchase, as referred to in Article 7, with the preference established in Article 2472 of the Civil Code. If the balances of the account or the credits entered in the real estate company in the case referred to in Article 7, are insufficient for the payment of the compensation referred to, the remainder shall be of a nature of credit. ". 52) Replace the first paragraph of Article 36, by the following points, passing the current second to be third: " If the house suffers damages during the term of the lease with promise of sale, that they come from vices hidden, will be repaired by the seller promitor seller. For these purposes, hidden vices shall mean those which have the following characteristics: (a) which have a cause before the conclusion of the lease with a promise of sale; (b) which prevent their normal use, in whole or in In such a way that, by knowing them, the buyer promitor would not have concluded the contract or had it concluded in other conditions, and c) not to have manifested the promitor lessor seller and that the tenant promitor buyer was able to ignore them without negligence He or she may not have been able to meet them, because of their profession or profession. If the damages come from other causes other than those mentioned in the foregoing paragraph, the repair shall be the responsibility of the buyer's promited tenant, without prejudice to the compensation payable to the insurer in accordance with the provisions of the Article 42 of this Law. "53) Add in the second paragraph of Article 36, which becomes third, the expression" buyer promise "following the term" tenant ". (54) In the first, second and third subparagraphs of Article 37, the words "buyer's promise" shall be added to the word "lessee". In addition, in the third paragraph of this Article, replace the term 'rental income due' by the locution 'rental income and other sums owed by the buyer's buyer,'. 55) Article 37: " If the contract has been concluded in accordance with the provisions of Article 7, the lease income and other sums due shall be paid from the funds referred to in the above mentioned precept in the form of the (56) Add the following point to Article 38: " The parties may agree to in the case of contracts for the early assessment of damages for failure to comply with the obligations laid down therein, which shall be made effective from the balance of the account or the payments to the price made in the company property, if the non-compliance is attributable to the buyer promitor. If the non-compliance is attributable to the seller-seller, the credit of the buyer's buyer shall enjoy the preference laid down in Article 2472 of the Civil Code. " 57) Add to Article 39 below of the term "tenant" the expression "promitor buyer". (58) Replace Article 40, by the following: " Article 40.-It shall be a judge competent to hear of any dispute between the parties, including those relating to compliance, resolution, early termination of the contract, the compensation for damages, the fixing of the date on which the dwelling is to be restored, the mutual benefits and the questions of interpretation of the contract, a judge arbiter of law which, as regards the procedure, will have the powers of arbitador referred to in Article 223 of the Organic Code of Courts. The arbitrator shall be appointed by the judge in turn, from among those registered in the Register referred to in the fourth paragraph of this article. An appeal and an appeal may be lodged against the judgment in the form, which shall be known and failed by a second-instance arbitrator, who shall have the same character as the presiding judge of first instance and for whose designation the rules of the first indent of this Article shall be observed. The appeal shall be granted in the sole effect of return. Contrary to the judgment of the arbitrator of the second instance, no recourse shall be made except that of an appeal in the form of ultra petite and incompetence, and the complaint to the Supreme Court. The Ministry of Housing and Urbanism will create and maintain a register of referees, which will operate in each region through the respective Regional Ministry of Housing and Urban Planning, in which the qualified lawyers will be able to register for the pursuit of the profession, meeting the requirements for each category of arbitrators. In the category of arbitrators of first instance, lawyers may be registered with at least five years of the profession. In the category of second-instance arbitrators, lawyers may be registered with at least fifteen years 'pursuit of the profession.' 59) Replace Article 41 by the following: " Article 41.-When the landlord promited seller obtain the return of a dwelling, the arbitrator shall draw up a record of its conservation status, with the concurrence of an expert, who is professional of those referred to in Article 17 of the General Law of Urbanism and Constructions, designated by the arbitrator with summons from the parties. This expert will issue a report on the general state of housing conservation, pointing out and valuing the improvements, damage or deterioration that I will present. With that report and the comments made by the parties within the time limit specified by the arbitrator, the arbitrator shall determine the amount of compensation that may be due in the parties. If the settlement has resulted in a balance in favour of the buyer, the buyer shall enjoy the preference set out in Article 2472 of the Civil Code. If a balance is paid in favour of the seller, the seller shall be paid from the funds in the account, or from the payments made at the price of the contract of sale promised in the case referred to in Article 7. If the existing funds in the account, or the credits made at the price of the promised sale referred to in Article 7, are insufficient to cover the amount of the sums due, the seller shall be entitled to sue the seller. (a) the payment of the differences, to the same arbitrator as he knew of the judgment or of the incident, as provided for in this Article and in the previous Article. "60) Add the following Article 41a:" Article 41 bis.-Dealing with lease agreements with a promise of purchase and sale with the benefit of the subsidy housing, in which the price of the promised sale does not exceed 900 Units of Promotion, and provided that the funds existing in the account or the credits made for the payment of the price of the promised sale referred to in Article 7 °, At least 25% of the said price shall be reached by the seller, the seller may ask the arbitrator who is aware of the termination of the contract for non-payment of the contributions referred to in Article 37 to order the sale of the property in public auction. Such a decision shall be notified to the Servu at least 10 days in advance of the date of the auction. With the product of the auction, to which the funds must be added that the tenant promitor tenant has deposited in the account of savings or subscribers to the seller promise seller if it has been operated according to the article 7 °, without deduction of the arbitrator shall order the payment of the price of the promised purchase plus the lease income earned and not paid and the fees payable to the seller. costs of the trial. If a balance is left in favour, it shall comply with the provisions of Article 49 (3) and, if it shall restore resources, to the other obligations arising under this law. The remnant, if any, shall yield to the benefit of the buyer's promited tenant. If you have a balance against, the respective Servu will find out to the seller promitor seller up to 75% of that insolute balance, with a maximum limit of 200 Units of Promotion per operation. The Regulation shall lay down the procedures, conditions and procedures necessary for the responsibility of the Servu to be responsible for the payment of the quantities referred to in respect of the resources to be included annually in his (61) Redeploy Article 42, as follows: " Article 42.-In lease contracts with a promise of sale to be concluded in accordance with the rules of this law, the obligation for the lessee shall be laid down. prompt buyer to contract fire insurance and relief insurance and the obligation of the The seller is the best seller to offer premium alternatives to the buyer. The premiums of these insurances shall be the responsibility of the buyer. If the prospective buyer does not contract these insurance, the real estate company may hire them on behalf of and in charge of the property. In the event of the sale of the lease with a promise of sale, a new insurance of tax relief shall be contracted by the transferee, applying the provisions of the foregoing paragraph. Relief insurance shall not be compulsory in the case of prospective tenants over the age of 65 years. '62) Replace Article 43, as follows:' Article 43.-The property company must offer the tenant (a) the buyer shall be entitled to an unemployment insurance alternative or loss of the source of income of the latter, covering the risk of non-payment of the agreed contribution and may contract it at the request of the buyer, on behalf of and in charge of (63) Replace Article 44, by the following: " Article 44.-In contracts concluded by the In the case of a property company with the prospective tenants who do not have the quality of dependent workers, the formation of a guarantee fund may be provided for in the event of non-compliance with the timely payment of the contribution. If the formation of this fund is agreed in partial, these shall not be considered for the calculation of the percentage referred to in the third paragraph of Article 4 ° and its amount shall be broken down into the respective collection notice. The provisions of this paragraph may also apply to dependent workers, at their express request. The resources of this fund shall be deposited in the account referred to in Article 1, and shall include the available fund referred to in the first paragraph of Article 3. " (64) Add the following Article 44 (a): " Article 44a.-If the payments for expenditure, duties and taxes referred to in Article 28, and for the following premiums (a) the fire and relief referred to in Article 42, which are effected by the supplier of the seller and its recovery to the buyer's supplier, shall be made in periodic instalments; these shall be broken down in the recovery notice; (65) Substitute Article 45, as follows: " Article 45.-The holder of the account referred to in Title I, who does not have another housing and who meets the requirements of the Regulation, may apply for the allowance housing, which, for these purposes, will be granted by the Ministry of Housing and Urbanism, the object of which will be supplement the voluntary contribution and savings accumulated by that holder to contribute to the payment of the lease income and the purchase and sale price of the dwelling. However, it may not apply the subsidy to the situation provided for in the second indent of Article 25. This subsidy, expressed in promotion units, will be paid in instalments in periodic instalments, equal and successive, with a maximum of up to 240 quotas, or in a different form, which will, in any case, be set in the corresponding call to postulation. The respective Housing and Urbanisation Service shall deposit the corresponding value in the beneficiary's account, or in the property in the case provided for in Article 7. The value of the periodic quota shall be established in the respective call for application, in such a way that the Net Present Value (NPV) of the total of the periodic quotas does not exceed the minimum and maximum limits indicated in the regulation. The regulation may provide for differentiated subsidy values in respect of the lease with a promise of purchase and sale of dwellings located in urban renewal areas or located in different regions of the country or for houses of different price. You can also set differentiated values for homes or departments. The regulation will determine how to calculate the Net Present Value (NPV) and the formula for calculating the interest rate to be used for this. The regulation will also lay down how urban renewal areas will be determined. The regulation may also provide for the temporary freezing of existing funds in the account for the purposes of the application of the subsidy. If the contract of sale promised in accordance with Article 27 (a) and (c) is concluded and there are still outstanding contributions to the subsidy, the Housing and Urbanisation Service shall terminate the payment. (66) Reposition Article 47, by the following: " Article 47.-For those who apply for the subsidy referred to in this Title, the purchase price of the house may not exceed the maximum to point out the regulation. If the beneficiary of the subsidy is to agree with the supplier to the seller to carry out the extension or improvement of the house for the five-year period from the date of the conclusion of the lease with a promise of -the final value of the house with such extensions or improvements shall not exceed the maximum of the length of the housing value to which the subsidy obtained corresponds, in accordance with the Regulation. If this maximum value is exceeded, from that date the value of the allowance for which the payment has not been paid shall be that corresponding to the housing value tranche with the extensions or improvements implemented. If, with such extensions or improvements, the maximum value of the highest tranche of housing value is exceeded, the payment of the outstanding amounts of the allowance shall be terminated. '(67) In the second indent of Article 49, the term' arbitration ' shall be terminated. (68) Substitute the third indent of Article 49, by the following: " Once the judgment referred to in the preceding paragraph has been executed, the Housing and Urbanization Service concerned shall have preference over any creditor, except the "seller" means the seller, by the obligations arising out of the lease with a promise of sale, to recover from the funds existing in the account, or in the real estate company in the case provided for in Article 7 °, the contributions paid from the duly updated allowance. ' 69) Replaced, in Article 50, the (a) the words 'or in the case of a property company, as provided for in the second indent of Article 45, and the outstanding shares'. 70) Substitute Article 51, as follows: ' Article 51 of the Treaty 51.-For the purposes of the provisions of this Title, the Ministry of Housing and Urbanism shall establish a special register, for which it shall carry out the duties and shall have the rights and obligations established in the Regulation. The Ministry of Housing and Urbanism will create and maintain a national public register of the beneficiaries of all housing subsidies granted by the State and the municipalities. The Ministry of Housing and Urban Planning may entrust to private entities, by means of public tender, the implementation, administration and operation of the registers referred to in the preceding paragraphs. " 71) "monthly, to the special register referred to in the preceding article", by the locution "in the form and periodicity specified in the regulation, to the special register referred to in the first paragraph of the preceding article" and to interleave continuation of the terms "leaseholders" and "lessors" the expressions "prompt buyers" and "prompt sellers", respectively. 72) Add the following new Title VI below Title V, passing the current Title VI to Title VII: " TITLE VI. OF THE FUNDS FOR HOUSING AND THE MANAGEMENT COMPANIES. Article 54.-The Fund for Housing, hereinafter "the Fund", is a patrimony constituted with the funds available from the resources deposited in the savings accounts for the lease of houses with a promise of purchase, for their investment in the values mentioned in this law, corresponding to his administration to a public limited company, hereinafter "the Administrator". The contributions will be expressed in the Fund's shares of equal value and characteristics. The unit value of the quota used to convert the contribution shall be that in force to the date on which the resources are available for investment by the Administrator and shall be determined on the basis of dividing the economic or market value. of the Fund's investments in respect of the number of quotas in force at the same date. The Fund's shares shall be valorised on a daily basis and shall be redeemed by the institution holding the accounts, in accordance with the provisions of this law. Without prejudice to the foregoing, the institution is entitled to transfer the funds, in the cases to be determined in the respective administration contract, to another managing company of equal rotation. The assets of the Fund and the shares in which it is divided shall be non-embargable and shall not be subject to any precautionary measures. Article 55. The administration of the Fund shall be exercised by public limited companies whose exclusive object is such administration. The administrators shall be subject to the following special rules: (a) They shall be formed, exist and tested in accordance with the provisions of Article 126 of Law No 18,046, with the application of Articles 127, 128 and 129 of the same law. (b) They must include in their name the expression "Administrative Fund for Housing", and (c) In order to obtain their authorization of existence, they must credit a capital paid in cash not less than the equivalent of six thousand units of promotion. At all times, these companies must maintain a property at least equivalent to that indicated, for each Fund they administer, or equivalent to the sum of one per cent of the average equity of each of these, corresponding to the semester a calendar before the date of its determination, if the latter result is higher. Family allocation compensation boxes, banks and financial corporations may constitute or be part of the Housing Fund Administrators, in accordance with the laws governing them. For this purpose, the family allowance boxes are authorised to make the corresponding contributions of capital from the social fund referred to in Articles 29, 30 and 31 of Law No 18,833. Article 56.-The Funds and the companies which administer them shall be governed by the provisions of this law, their rules of procedure, and by those established in the respective administration contracts which they subscribe with the institutions which " The Superintendence of Securities and Insurance will be monitored by the Superintendency of Securities and Insurance, in accordance with the powers conferred on it by its Organic Law and this law. Article 57. The administration of the Fund shall be carried out on behalf and at the risk of the account holders, in accordance with the provisions of this law and with the provisions of the respective management contract. Article 58.-The management company may not initiate the administration of a Fund while the Superintendence does not register, in a public register provided for the purpose, the administration contracts of the respective Fund to which it subscribes. with the institutions that hold the accounts. The rules of this law shall contain the minimum particulars to contain such contracts. Article 59.-The operations of the Fund shall be carried out by the managing company in the name of the company, which shall be the holder of the instruments representing the investments made. Without prejudice to the foregoing, the managing company of the Fund may entrust the custody of such instruments to a securities holding company governed by the law. No 18,876. Operations relating to the assets of the managing company shall be accounted for separately from those of the Fund. In addition, when administering more than one Fund, the operations of each Fund shall be accounted for separately. Article 60.-The management of the Fund shall be the responsibility of the institution which maintains the accounts, under the conditions laid down in the management contract, which shall be exempt from the value tax. Added. Article 61.-The investment of the Funds, without prejudice to the amounts that they maintain in the bank's current account, must be made in securities that can be acquired with resources from the Chilean pension funds, according to the provisions of the Decree Law No. 3,500 of 1980, and in quotas of mutual funds. Article 62.-Investments from the Funds shall be subject to the following provisions: (a) Investment in instruments or securities issued or guaranteed by the same institution shall not exceed five per cent of the Fund's assets. Securities issued by the General Treasury of the Republic or the Central Bank of Chile, and other securities issued or guaranteed by the State of Chile shall not be subject to this limit. " (b) Fund investment in instruments issued or guaranteed by entities belonging to the same business group may not represent more than 15% of the Fund's assets; (c) Investment in shares of public limited liability companies may not exceed 40% of the Fund's assets. Investment in shares of mutual funds and mutual fund shares, together, may not exceed 15% of the Fund's assets; (d) investment in securities issued by foreign issuers may not exceed 30% of the assets (e) The Fund may not hold more than 10% of the shares subscribed and paid by the same company or the shares of the same mutual fund or mutual fund. The Fund's total investment in securities issued or guaranteed by the same company shall not exceed 10% of the total assets of that broadcaster. If a company manages more than one Fund, the investments in the Fund may not exceed these limits; (f) The Fund may not invest in instruments issued or guaranteed by the administrator or persons related to the Fund. (g) The sum of the operations for financial risk coverage carried out with the Fund's resources, calculated on the basis of the assets covered by the operation, or in securities issued by a third-party fund manager authorized by law; and measure in net terms, may not exceed the value of the investment held by the Fund in the the instrument covered by the coverage. However, the sum of the operations for the financial risk coverage which the Fund maintains and which have identical financial characteristics in terms of time, currency and active object shall not exceed 10% of the total those transactions which are in force on the formal secondary markets. The limitations set out in this Article shall not govern during the first six months of the Fund's operation. Article 63.-Transactions of shares, shares of investment funds and other securities that have a stock exchange transaction, in accordance with what is defined in the regulation of this law, as well as the operations of financial risk coverage, shall be be carried out on a stock exchange. The transactions or negotiations of the other securities shall be carried out at prices similar to those normally prevailing on the market, taking care not to exceed the maximum or minimum, in the case of acquisitions or disposal, respectively. The managing company, its shareholders, directors or managers, may not acquire, directly or through other natural or legal persons, the property values of the Fund or the Funds it administers or dispose of its own. Also, the acquisition or disposal of securities on behalf of the Fund to persons related to the administrator may not be carried out through private negotiations. The assets of the Fund shall not be subject to any charges or prohibitions of any kind. Article 64.-The Regulation shall lay down the rules for the recovery of investments, procedures and time limits for correcting excess investment and other rules necessary for the proper functioning of the Funds and of companies Managers. Article 65.-The Superintendence may revoke the authorization of existence to the managing company, in the event of a serious infringement of the legal norms governing the administration of the Housing Funds or when the administration has been taken fraudulently or seriously guilty. If the management company is dissolved by revocation of the authorization of existence or by any other cause, the institution holding the accounts must transfer the administration from the Fund or the Funds to another administrative company; while does not occur, the settlement of the administrator will be practiced by the Superintendence. Once the Fund has been transferred, the liquidation will be carried out by the company itself. Declared the bankruptcy of a management company and as long as the Funds administered by the failed, the Superintendent of Securities and Insurance, or the person designated by it, are not transferred, acting as a receiver, with all the powers that the (73) Replaces the numbering of Articles 54, 55 and 56 of Title VI, which shall become Title VII, by 66, 67 and 68 respectively. (74) Add to Article 67 the following expression, previously replaced by a comma (,) with the end of that article: "with the exception of Law No 18.101." (75) Replace, in Article 68, the words "of Titles I and II of this law" by the locution "of Titles I, II and VI of this Law". " Having complied with the provisions of Article 82 of the Constitution of the Republic of the Republic, I have had to approve it and sanction it; therefore, it should be enacted and implemented as a law of the Republic. Rengo, 15 August 1995.-EDUARDO FREI RUIZ-TAGLE, President of the Republic.-Edmundo Hermosilla Hermosilla, Minister of Housing and Urban Planning.-Eduardo Aninat Ureta, Minister of Finance. What I transcribe to you for your knowledge.-Salutes intently to Ud., Sergio Galilee Ocon, Undersecretary of Housing and Urbanism. Constitutional Court Bill amending Law No. 19.281, which lays down rules on housing leases with a promise of sale. The Registrar 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 of the constitutionality of Article 40, contained in the number 58) of the single article of that bill, and that by a judgment of 1 ° August 1995, he declared it constitutional. Santiago, August 3, 1995.-Rafael Larraín Cruz, Secretary.