IT AMENDS VARIOUS LEGAL BODIES RELATING TO THE SECURITIES MARKET, MUTUAL FUND MANAGEMENT, INVESTMENT FUNDS, PENSION FUNDS, INSURANCE COMPANIES AND OTHER MATTERS. approval to the following Bill: " Article 1.-Enter the following |! |amendments to Law No. 18,045 of the Stock Market, |! |published in the Official Journal of 22 October 1981: (a) The items indicated: 1.-Add to Article 4 (a), the following letter |! |e): " e) Institutional investors: to the banks, |! |financial corporations, insurance companies, entities |! |reinsurance and administrative persons funds |! |authorized by law. They will also have this character, the |! |entities that point to the Superintendence by a |! |general character rule, provided that the |! |following copulative conditions are met: (a) that the principal turn of the entities is the |! |making of financial investments or in assets |! |financial, with third-party funds; b) that the volume of transactions, nature of |! |its assets or other characteristics, allows to qualify |! |relevant to market participation. "2) Eliminate in Article 8a) the sentence |! |final:" Except for this obligation to the actions of |! |the companies found in the cases that are |! |determine under Article 89 of the (3) Reposition in the final paragraph of Article 15, |! |the expression "Article 64" by the phrase "Title V of the |! |decree law No. 3,538, of 1980". 4) Replace Article 40 N ° 8 with the |! |following: " 8) Actions will have equal value and will not be able to |! |set strings of shares or privileged series. |! | However, a series of actions can be set that |! |have as unique and exclusive privilege for their |! |holders the special operations of |! |broking specific and determined values, with |! |exception of operations Stock brokerage, a |! |less than it is transactions in shares of a |! |same and unique partnership. The holders of these privileged actions for |! |that they can perform such operations, must comply |! |with all the requirements to be stockbrokers. |! | The actions of unique series or privileged series that are |! |issue will not be entitled to the option that prescribes the |! |article 25 of Law No. 18,046. " 5) Add to Article 44, the following letter g): g) Rules governing the transaction systems of |! |values, with the object that it can be determined in |! |certain and anticipated form if the transactions |! |made by the brokers correspond to |! |transactions for own account or for account of third parties. |! | This information will be public. Also, they will be set |! |by the appropriate bag, similar systems |! |regarding the operations or transactions that are |! |perform by brokers on account of the administrator |! |or by the funds that they manage. The broker of |! |bag and the respective bag must keep reservation |! |on the origin and the holder of the respective order. "6) Replace article 58, by the following:" Article 58.-The Superintendence will apply to the |! |offenders of this law, of its complementary rules, |! |of the internal statutes and regulations governing them and |! |of the resolutions that dictate according to their faculties, |! |the sanctions and awards established in their organic law |! |and the administrative ones that are established in the present |! |law. When in the exercise of their duties, the |! |officials of the Superintendence take cognizance |! |of facts that could be constitutive of the offences |! |marked in articles 59 and 60 of this law, except in |! |the reference to the conduct Of their |! |subalterns, the 24-hour period referred to in the |! |article 85 of the Code of Criminal Procedure, only |! |will count since the Superintendence has carried out the |! |corresponding investigation that allows you to confirm |! |the existence of such facts and their circumstances, |! |all without prejudice to the sanctions (7) Please apply the following changes to the |! |article 59: (i) Substitute (e), as follows: "e) Persons who infringe the prohibitions |! |entered in Articles 52, 53, first indent of the |! |article 85 and points (a), (d), (e) and (h) of Article 162, |! |of this law;" (ii) next letter f): " f) The directors, administrators and managers of a |! |issuer of securities of public offering, when they will perform |! |mischievously false statements in the respective |! |write of issuance of securities of public offering, in the |! |registration prospectus, in the background |! |accompanied to the application for registration, in the |! |information to be provided to the |! | Superintendents of Securities and Insurance or Banks and |! | Financial Institutions in your case, or to the holders |! |of securities of public offer or in the news or |! |propaganda disclosed by them to the market. If the persons referred to in this letter are |! |sentenced for sentence executed to the penalties |! |mentioned in this article, they will suffer as accessory penalty |! |the one of disablement for five to ten years as |! |determine the court, for perform the charges of |! |director, administrator, manager or liquidator of a |! |open anonymous company or any other company or |! |public offering securities issuing entity or that is |! |find subject to the audit of the |! | Superintendence of Banks and Financial Institutions, |! |or to the of the (iii) Add the following point (g): " g) Partners, administrators and, in general, |! |any person who, by reason of their position or position in |! |the qualifying societies, will be concerned with another |! |person to award a classification which does not |! |correspond to the risk of the titles which it classifies. " 8) Amend Article 60 in the following |! |terms: a) Replace the final point (.) of point (d) with |! |a comma (,) and add the copulative conjunction "and", and (b) Add the following point (e): " e) The persons referred to in Article 166 |! |that when carrying out transactions or securities transactions |! |public offering, of any nature on the market |! |securities or in private negotiations, for yes or for |! |third parties, directly or indirectly, usaren |! deliberately insider information. To the persons referred to in this letter, if |! |force condemned by executed sentence, they are |! |will apply by accessory the penalty of disablement to which |! |refers to the second indent of the letter f) of the article |! |previous. " 9) Article 67, the figure "73" by |! | "76". 10) Enter the following amendments to the |! |article 72: (i) Substitute the second paragraph, by the following: " In the risk classification societies the |! |capital must belong to at least 60% to the |! |principal partners. The main partners are |! |for the purposes of this title, those persons |! |natural or legal of the spin which individually are |! |owners of at least 5% of the social rights. " (ii) Attaché at the end of Article 72, the |! |following incissos: " Sorting entities shall check before |! |the Superintendence and keep permanently, a |! |heritage equal to or greater than the equivalent of 5,000 |! |promotion units. If the capital and reserves of the classifier are |! |reduce in fact to a quantity below the minimum, |! |it will be obliged to complete it within the deadline of |! | 30 days. Failure to comply with this obligation will be |! |sufient causal for the Superintendence to proceed to |! |cancel the registration of such classifier in the |! | Register of Classification of Risk Entities. " 11) Substitute the first paragraph of the Article 73, |! |by the following: " Article 73.-In the classification societies of |! |risk shall be permanently operated by a |! |risk classification integrated by at least 3 |! |counselors, holders or their respective alternates, the |! |most of which should be main partners, a |! |who will be responsible for them adopt the agreements of |! |classification of values referred to in this Title. "12) Replace the first paragraph of Article 76, |! |by the following:" Article 76.-Issuers of offer securities |! |public issuing representative securities of debt, |! |must hire, at its cost, the continuous classification |! |and uninterrupted of said values with at least two |! |different and independent risk classifiers |! |each other. Issuers of securities of the public offering that |! |issue shares or shares of investment funds may |! voluntarily submit to classification such securities. "(13) Substitute Article 81, by the following:" Article 81.-When the company classifier or |! |any of its members, counselors, or administrators is |! |considered person with interest in an issuer |! |determined, she will not be able to classify the values of |! |the latter. "14) Add the following article 82 bis:" Article 82 bis.-The revenue obtained by the |! |public offering securities classification service |! |that it is made on a mandatory or voluntary basis, |! |from the same issuer or business group no |! |may exceed 15% of the total revenue in a |! |year, by classification, to count from the beginning |! |of the third year of (15) Substitute Article 88, as follows: " Article 88.-The representative debt securities |! |shall be classified in consideration of the solvency of the |! |issuer, the non-payment of the capital and the |! |interest, to the features of the instrument and to the |! |information available for your classi cation, in |! |categories that will be named with the letters AAA, AA, |! | A, BBB, BB, B, C, D and E, if I will be dealing with titles of |! |long-term debt, and with the letters N-1, N-2, N-3, |! | N-4 and N-5, if I will be dealing with short debt securities |! The categories of classification of debt securities |! |long term will be as follows:-AAA category: Corresponds to those instruments |! |that have the highest capacity of payment of the |! |capital and interests in terms and deadlines pactados, |! |which would not be affected by possible changes in the |! |issuer, in the industry to which it belongs or in the |! |economy. -Category AA: It corresponds to those instruments |! |that have a very high capacity of payment of the |! |capital and interests in the terms and deadlines agreed, |! |which would not be affected significantly before |! |possible changes in the issuer, in the industry to which |! |belongs or in the economy. -Category A: corresponds to those instruments |! |that have a good ability to pay the capital |! |and interests in terms and deadlines agreed, but this |! |is liable to deteriorate slightly before possible |! |changes in the issuer, in the industry to which it belongs or |! |in the economy. -Category BBB: It corresponds to those instruments |! |that have a sufficient ability to pay of the |! |capital and interests in the terms and deadlines agreed, |! |but it is liable to weaken to possible |! |changes in the issuer, in the industry to which it belongs or |! |in the economy. -Category BB: corresponds to those instruments |! |that have the capacity to pay the capital and |! |interest in terms and deadlines agreed, but this |! |is variable and liable to deteriorate before possible |! |changes in the issuer, in the industry to which it belongs or |! |in the economy, being able to incur delay in the |! |payment of interest and capital. -Category B: It corresponds to those instruments |! |that have the minimum capacity of payment of the |! |capital and interests in the terms and deadlines agreed, |! |but this is very variable and liable to deteriorate |! |before possible changes in the issuer, in the industry to |! |it belongs or in the economy, being able to incur in |! |loss of interest and capital. -Category C: Corresponds to those instruments |! |that do not have a sufficient payment capacity for |! |the payment of the capital and interest in terms and deadlines |! |agreed, there is a high risk of loss of capital and |! |interest. -Category D: Corresponds to those instruments |! |that do not have a capacity for the payment of the |! |capital and interest in the terms and terms agreed upon, and |! |that they present effective default of payment of |! |interest or capital, or bankruptcy requirement in |! |course. -Category E: Corresponds to those instruments |! |whose issuer does not have sufficient information or does not have |! |representative information for the minimum period |! |required for the classification, and in addition there are no |! |sufficient guarantees. The categories of classification of debt securities |! |short term will be as follows:-Level 1 (N-1): Corresponds to those instruments |! |that have the highest capacity of payment of the |! |capital and interests in terms and deadlines pactados, |! |which would not be affected by possible changes in the |! |issuer, in the industry to which it belongs or in the |! |economy. -Level 2 (N-2): corresponds to those instruments |! |that have a good ability to pay the capital |! |and interests in terms and deadlines agreed, but this |! |is liable to deteriorate slightly before possible |! |changes in the issuer, in the industry to which it belongs or |! |in the economy. -Level 3 (N-3): corresponds to those instruments |! |that have sufficient capacity to pay the capital |! |and interests in terms and deadlines agreed, but this |! |is liable to weaken to possible changes in |! |the issuer, in the industry to which it belongs or in the |! |economy. -Level 4 (N-4): Corresponds to those instruments |! |whose ability to pay the capital and interest in the |! |agreed terms and deadlines does not meet the requirements for |! |rank at N-1, N-2, N-3 levels. -Level 5 (N-5): corresponds to those instruments |! |whose issuer has no representative information for the |! |minimum period required for the classification, and also |! |there are not enough guarantees. Whenever in this law or other laws be made |! |reference to classification of debt securities or of |! |obligations, using categories A, B, C, D or E, |! |they shall be understood to correspond, respectively, to |! |the following: A: corresponds to category AAA, AA and N-1; B: corresponds to categories A and N-2; C: corresponds to categories BBB and N-3; D: corresponds to categories BB, B, C, D and N-4, and E: corresponds to categories E and N-5. " 16) Substitute Article 90, by the next: " Article 90.-The societies that voluntarily are |! |find their titles, will only be able to |! |suspend these processes, after six |! |months counted since the issuer is informed such |! |intention to the Superintendence and the general public, |! |by means of a prominent notice that will be published in the |! |diary where it is make the publications of the |! |company. '. 17) Amend Article 91, in the following: (i) Delete in the first subparagraph, the sentence: "to your liquidity in the market" and the comma (,) which the |! |precedes. (ii) Substitute in the first indent the expression |! | "determine the Superintendence" by "determine the |! |classification procedures." (iii) Substitute the second indent by the following: " Also, the investment fund shares are |! |they will rank in first class, second |! class quotas or not enough information, in attention to the |! |fund investment policy, the expected loss by |! |no payment of the credits in which you invest, the rating |! management company and other factors |! |determining the classification procedures. ". 18) Replace Article 92, by the following: " Article 92.-The Superintendence or the |! Superintendence of Banks and Financial Institutions |! |in the cases of Article 94, after consultation between |! |them and with the Superintendence of Administrators |! | Pension Funds, will determine the procedures of |! |classification, by dictating a rule of |! |general character. The classifier entities must |! |adjust their specific classification procedures |! |to these general procedures, as well as to the |! |instructions that gives the respective Superintendence |! |to homogenize them. The classification board of each entity |! |classifier must approve, before its application, |! |the procedures, methodologies or criteria of |! |classification and the modifications that are |! |introduce, must inform the Superintendence |! |respective the date and the number of the minutes of the session |! |corresponding, within two days following the |! |date of its celebration. "b) Add the following new Titles, a |! |continuation of the N ° XV:" TITLE XVI issuance of long-term debt securities. Article 103.-The public offer of securities |! |representative of debt whose term is greater than a |! |year, can only be effected by bonds and with subjection |! |to the general provisions laid down in the |! |present law and to the special ones that consign in the |! |articles below. However, banks and financial corporations |! |that operate in the country will not be subject to this |! |limitation and, if authorized to issue |! |bonds in accordance with the rules governing them, the |! |requirements that this title sets will be met before |! |the Superintendence of Banks and Institutions |! | Financial. Article 104.-When the registration of a |! |issue of bonds is required, the issuer must accompany the |! | Superintendence copies of the public deed that |! |would have granted with the representative of the futures |! |bondholders, the one that will be designated by the issuer |! |in the same instrument, without prejudice to it being |! |replaced at any time by the general meeting of |! |bondholders. The writing will contain all the |! |features and modalities of the issue, the |! |designation of an extraordinary administrator of the |! |funds to be collected and a custody officer, in |! |your case, and the determination of the rights and |! |obligations of the issuer, the administrator |! |extraordinaire, of the custody officer, of the |! |bondholders and their representative. The Superintendence, by the dictates of rules |! |of a general character, will establish the mentions |! |obligatory that must contain the public deed, |! |which must refer, at least, except the |! |exceptions that this organism determine, rules |! |relative to: a) Legal and economic information regarding the |! |issuer, the extraordinary administrator and the manager |! |of the custody, if any, and of the representative of the |! |bondholders and the determination of their respective |! |remuneration; b) The limits of the debt ratio in |! |that the issuer may incur and the purpose of the |! |borrowing and the use that it will give to the resources that by |! |the obtain. In addition, as stated in article 112 of |! |this title, the investment policy will be established a |! |that the extraordinary administrator must adjust |! |regarding the money and values that he manages and the |! |requirements and conditions agreement to which you will |! |make them available for the ordinary management of the |! |emissor; c) Description of the issue, including |! |especially the amount of the same, series, numbers, |! |coupons and characteristics of the titles, deadlines of |! |placement, interest and readjustments to be paid on your case; |! | Form and times of depreciation, of draws and of |! |rescues; date and modalities of payments and guarantees |! |that the caution in case they would have; d) Procedures for early rescues, which |! |can only be effected by means of draws or other |! |procedures that ensure equal treatment |! |for all bondholders; e) Obligations, limitations and prohibitions |! |additional to legal, to which the issuer will be held |! |while the issue is in force, in defense of the |! |interest of bondholders, particularly in |! |relative to the establishment of the guards in their |! |favor as referred to in article 111 of this |! |title; to the largest information to provide them in |! |that period; to the maintenance, replacement or renewal |! |of assets or guarantees; to the establishment of powers |! |supplementary audit granted to these |! |creditors and their representative and of greater measures of |! |protection to equal treatment to holders of |! |bonos; f) The individualization of the experts qualified |! |that the extraordinary administrator should consult, |! |when applicable; g) Procedure of choice, replacement and removal, |! |rights, duties and responsibilities of the representative |! |of the bondholders and rules relating to the |! |functioning of the boards to be held by these |! |creditors, and h) The nature of the Arbitration to be |! |subject to the differences that occur with the occasion |! |of the issue, of its validity or of its extinction, according to |! |is expressed in the following article. If in writing |! |nothing is said, it will be understood that these differences |! |must be known by one or more referees |! |arbiters. Notwithstanding the foregoing paragraph, to the |! |occurrence of a conflict the plaintiff will always be able to |! |subtract his knowledge from the competition of umpires and |! |subject him to the decision of the ordinary justice. The licensors may |! |agree to any other stipulations that are not contrary |! |to the provisions of this law or its rules |! |complementary. Article 105.-Conflicts that may be |! |submitted to arbitration, as indicated in the article |! |above, are those that occur between the |! |bondholders or their representative and the issuer or the |! |extraordinary administrator. This arbitration may be |! |caused by any of the latter or by the |! |representative of the bondholders, acting of |! |officio or by agreement adopted by the board of holders |! |of bonds, with the quorum regulated by the |! |first of article 124 of this title. The arbitration may also be promoted |! |individually by any of the bondholders |! |in all cases where they can act |! |separately in defense of their rights, in accordance |! |the provisions of this title. Likewise, they may submit to the decision of these |! |arbitrators the challenges that one or more holders of |! |bonds will carry out regarding the validity of certain |! |agreements of the assemblies held by these |! |creditors, or the differences that originated among the |! |bondholders and their representative. In these cases, |! |the arbitration may be individually provoked by |! |any interested party. What is established in this article is without |! |prejudice to the inalienable right of the holders of |! |bonuses to freely remove at any time their |! |representative or, with the agreement of the issuer, to the |! |extraordinary administrator or to the in charge of the |! |custody if any, or the right of each holder of |! |bonuses to exercise before the ordinary or arbitration the |! |collection of his accreencia. The or the arbitrators will be appointed by common agreement |! |by the conflicting parties, not being able to in any case |! |nominate in the writing of issue to one or more |! |persons determined as such. If it does not occur |! |agreement, the nomination will be done by ordinary justice. The fees of the arbitral tribunal and the costs |! |pleadings must be sold by whom you have promoted |! |the arbitration, except in the conflicts in which it is part |! |the issuer, in which some and others will be of his office. |! | Without prejudice to the right of those affected to repeat, in |! |their case, against the party that in difinitiva is |! |ordered to pay the costs. Against the resolutions that dictate the |! |referees will not proceed any recourse, except that of |! |complaint. Payment of the fees of the arbitral tribunal and of |! |the procedural costs shall enjoy the preference |! |established for the first class of credits, governed |! |by article 2472 N ° 1 of the Civil Code. Article 106.-The representative of the holders of |! |bonds will enjoy all the powers and duties that are |! |they need in this law and its complementary norms, of |! |those that correspond to him as president and of those that are |! |grant him and impose in the write of the issue or by |! |the general meetings of bondholders. The function of this representative of the holders of |! |bonds will be remunerated with exclusive charge to the issuer, |! |according to the amount and modalities to be determined in the |! |writing of the issue. This remuneration will enjoy the |! |preference set for the first class of |! |credits, governed by Article 2472 N ° 1 of the Code |! | Civil. The representative must act exclusively in the |! |best interest of his/her represented and will answer up to |! |the slight fault for the performance of his duties. No |! |damage to administrative and criminal liability |! |you could be imputable to you. When the representative acts, judicial or |!, in compliance with the mandate and |! |faculties that will grant you the board of holders of |! |bonuses, will not require to prove this circumstance to |! |third parties assuming the right of the sufficiency of your |! |performance with respect to them, without prejudice to the right |! |of your represented to make effective the |! |corresponding responsibilities if you exceeded your |! |attributions. Article 107.-The representative of the holders of |! |bonuses will be responsible for the exercise of all the |! |actions that compete with the defense of the |! |common interest of their represented, especially in the |! |situations described in the Fourth and fifth of the |! |article 120 of this title, being invested for |! |it of all the ordinary faculties that the |! |article 7 ° of the Code of Civil Procedure and the |! |special that gives the board of holders from |! |bonuses. If the legal proceedings of the representative do not |! |require the prior agreement of a board of holders |! |of bonuses nor in the deed of issuance will be recorded a |! |different norm, will be understood, for all the effects |! |legal, that the mandate It includes the powers |! |of both points of the article 7. The representative indicated in this article, must |! |act also judicially in defense of the interest |! |individual of one or more of the bondholders, |! |when they will request it in writing, if it is |! situations described in the |! |third indent of Article 120 already mentioned. In this |! |event, the representative will be legally vested with |! |the ordinary powers of the judicial mandate already |! |referred, and from the special ones who trust you |! expressly |your mandants. In the lawsuits and other legal proceedings that |! |entable or in which the representative in interest is involved |! |collective of the bondholders, including the |! |requests and actions that you can make with occasion |! |of the bankruptcy of the issuer or in Court conventions or |! |extrajudicial related to this or your eventual |! |occurrence, you must express the majority will of |! |your represented but you will not need to credit this |! |circumstance, as provided in the article |! |precedent. In all court proceedings and |! |extrajudicial as referred to in the foregoing paragraph, it is |! |shall be deemed to be fully entitled to the representative acting |! |by a single person, whether as a plaintiff, party or |! |interested, whose rights and obligations express the |! |set of those that correspond to their represented, |! |suffice to express in the corresponding instruments |! |the quality in which it participates, without that it should individualize |! |its mandantes. Notwithstanding the above, for the |! |quorum of constitution and agreements of any class |! |of meeting in question, it will be considered that said |! |representative has the same number of votes or the |! |percentage that corresponds to each of the |! |bond holders of the issue you represent. This |! |must be certified by a notary public, in view of the |! | Register of bond holders ' titles, if any, |! |or of the titles or certificates of deposit of the |! |same. The provisions in this article are always without |! |damage to the shares that the bondholders |! |can exercise individually, as indicated in the |! |article 120 of this title. Article 108.-The representative of the holders of |! |bonds may require the issuer or its auditors |! |external, the reports that are necessary for a |! |adequate protection of the interests of their |! |represented, having the right to be fully informed and |! |document and at any time, by the manager or |! |the one who does its times, everything related to the |! |march of the company. This right must be exercised |! |in order not to affect social management. Also, the |! |representative may attend without voting rights to the |! |shareholders ' meetings of the issuer, if that is a |! |company for shares. The representative must keep strict reservation of |! |the internal information of the issuer that it would have taken |! |knowledge in accordance with the above mentioned in the paragraph |! |above, without prejudice to the full exercise or of the |! |faculties with which account for the fulfillment of their |! |functions. Article 109.-In addition to the above in the |! |preceding articles, the representative of the bondholders |! |of bonuses shall: a) Verify compliance by the issuer |! |of the terms, clauses and obligations of the contract |! |of issue, in accordance with the information that is |! |provide; b) Report from the above to the forks, in the |! |form and periodicity that the Superintendence determines |! |by a general rule; c) Verify, periodically, the use of the funds |! |declared by the issuer in the form and according to the |! |uses established in the contract of issue. d) Velar for the equitable and timely payment to all |! |the bondholders, of the corresponding |! |interest, redemptions and readjustment of the bonds |! |sorteados or vanquished. The representative will not be able to refuse |! |pay directly to his or her represented the obligations |! |referred to this letter, according to order that you |! |will do the issuer after providing it enough of |! |funds for every opportunity of payment. This function |! |additional should be remunerated by the issuer in the |! |terms that set the writing. The representative must always make the payments |! |through a bank or financial institution, a |! |less than any of those qualities, |! |eventuality in which you will be able to pay directly. e) Agree with the issuer on the specific reforms to the |! |issue contract authorized by the board |! |of bondholders, in matters of the competition of |! |this, and f) Exercise the other functions and attributions that |! |establish the emission contract. The representatives of the bondholders are |! |always removable and their mandates revocable, without |! |expression of cause, by the will of the general meeting |! |of these investors. They will only be able to give up their |! |charges to a bondholders ' board. The same board as you know of removal and |! |renewal of the acceptance of the waiver, must |! |choose the replacement, who will be able to perform his/her charge |! |since you express your conformity with this function. No |! |it will be necessary to modify the writing of the issue to |! |to record this substitution, but it must be |! |informed to the Registry of Values and the issuer, to the day |! |next deft of having been effected. Article 110.-The issuer must deliver to the |! |representative of the bondholders the information |! |public that provides the Superintendence in charge |! |of its audit, in the same form and opportunity with |! |that the delivery to this one. The issuer must also inform the representative, |! |as soon as the event occurs or arrives at his |! |knowledge, of any circumstance that implies the |! |breach of the conditions of the contract of |! |issue. Article 111.-In the writing of the issue may |! |agree that, without the express approval of the |! |representative of the bondholders, the issuer does not |! |may adopt the agreements or conduct the negotiations |! |that are indicated determinedly in This instrument. For the purposes of this article, the partners, |! |assemblies or shareholders ' meetings will be able to delegate in their |! |respective managing partners, managers or |! |directories, the necessary faculties for them to |! |their name stipulate limitations to the materials they are |! |of their competence. Without prejudice to the foregoing paragraph |! |precedent, in the open limited companies, in case |! |any powers may be delegated that of any |! |manner imply limitation to the legal obligation or |! |statutory of distribution of dividends minima |! |required. The delegation agreements of the meetings or assemblies |! |ordinary or extraordinary will be previous, detailed and |! |specific, must be adopted with the vote according to a |! |at least the absolute majority of the shares issued |! |with right to vote and in any case, with the greater quorum |! |that in the laws or in the statutes are contained in |! |relationship with the respective subjects. This delegation |! |govern only until the celebration of the next board or |! |general assembly of shareholders or partners. The directory, managing partners or board of directors, |! |will require the assent of at least the majority |! |absolute of its members in exercise, to agree |! |celebrate the limiting conventions referred to this |! |article and these will be If not agreed or not |! |written if not annotated to the margin of the registration of |! |the constitution of the broadcaster, an indicative reference |! |to the writing which gives proof of its existence, |! |within 60 days after the date of its |! |grant. The infringement to the prohibitions agreed upon in the |! |conventions will cause the absolute nullity of the acts or |! |contracts for them prohibited, when it will be dealt with |! |division, fusion or transformation of the society; |! |formation of subsidiaries; modification of the social object; |! |disposal of the total of the asset and of the liability or of the |! |essential assets; the modification of the term of the |! |duration of the society, when it has and the |! |early dissolution of the society. The above does not |! |obsta that the administrators of the emitters who |! |concurrieren to the agreements or the execution of acts |! |prohibited, respond jointly and severally of all disservice to |! |the bondholders affected. Article 112.-In the event that the purpose of the |! |issue of bonds is to finance new projects |! |of investment of the issuer, of an amount greater than 40% of the |! |total value of its existing individual asset before |! |the issue and that demand the application in stages |! |successive of the resources captured, for a period |! |greater than one year, will be additionally named in the |! |writing of issue an extraordinary administrator of |! |those resources and a charge of the custody of the |! |same. Said extraordinary administrator, whose |! |remuneration will be charged to the issuer will receive, by |! |account of this, the money obtained by placing |! |the bonuses and must make it timely and periodically to |! |disposition of the that, to the extent |! |that it complies with the requirements of advance of works, |! |contributions of own capital or other technical requirements or |! |financial established in the contract of issue. When compliance with the requirements to be |! |refers to the above paragraph requires a check |! |technique, this will be certified by the experts |! |qualified in the writing of broadcast or |! |chosen in their replacement, the ones that must be |! |independent of the issuer and remunerated by this and whose |! |opinion will be mandatory for the administrator |! |extraordinary. The designation of the extraordinary administrator, of |! |those in charge of the custody of the goods that this |! |manage and of the qualified experts, can only be |! |modified or replaced by modification agreement of the |! |writing of emission subscribed between the issuer and the |! |representative of the bondholders, who, at the |! |effect will have to express the will according to the |! |minus the absolute majority of the corresponding votes |! |the bondholders in circulation of the issue |! |corresponding, respective board attendees, |! |excluded those who were from related persons |! |with the issuer. It is presumed that the votes have been excluded |! |of persons related to the issuer, if no tenner of |! |bonds will claim of it before the Superintendence, within |! |of the three days following the realization of the |! |board. If no agreement is reached regarding the person of |! |the new administrators, in charge of the custody or |! |experts to be appointed, the designation will be made |! |respective by the arbitrator or arbitrators to which they refer |! |the articles 104 and 105 of This law and in such a case |! |it will be sufficient that the modifying writing be granted by |! |the judge or judges or the persons to whom they |! |empower the effect. In any case, the designation of |! |extraordinary administrators made by umpires |! |can only be placed on banks whose solvency is used |! |for the classification of the titles issued during |! |the last twelve months has been A or B. Extraordinary administrator will suspend the |! |disbursements you must make to the management of the |! |issuer, as long as this has not been faithful and |! |timely with the conditions determined to this |! |effect and until as long as they are not subhealed the difficulties |! |that have motivated the default, according to the |! |modalities and within of the deadlines set in the |! |write-up. If in short it did not proceed with the |! |delivery of resources to the administration of the issuer, of |! |agreement to the terms of the contract, these must be |! |fully restored, in its part not yet invested, |! |the bondholders, with more interest and |! |adjustments that correspond, prior to the exchange of titles. In the bond issue you can also stipulate |! voluntarily in the corresponding writing, the |! |formation of a special guarantee fund in favor of |! |the bondholders of the issue. To this effect, the |! |fund will be invested in the goods and in the form that is |! |indicates in the following article, leaving all of them |! |affections to the legal garment regulated by the article |! | 114 of this title. In any case, in any writing of bond issue |! |whose purpose is different from the one regulated in the |! |incisos precedents, may be established voluntarily |! |the existence of an extraordinary administrator of the |! |resources, whose rights and obligations will be those that are |! |require in the same instrument and, in subsidy, the |! |mentioned in this Title. Article 113.-The extraordinary administrator |! |will invest the resources it receives, according to the |! |established in article 112, following the |! |instructions and the issuer gives you the |! |investment policy of those resources, established |! |in the issue contract. This policy can only |! |consider investment in financial instruments of |! |fixed income, classified in category "A" at risk by |! |two private classifiers or issued or guaranteed |! |by the State until its total extinction and whose |! |expiration may not exceed the program and opportunities |! |of disbursement of these resources in favor of the management |! |ordinary of the issuer or the return to this of the |! |constitutive assets of the special guarantee fund, |! |when this proceeds. The interest, profits and capital gains that |! |accrues the investments, will belong to the holders |! |of bonuses when the requirements of |! |disbursement are not met or when the guarantee is made effective |! |special. In any case, the perceived benefits will not be |! |may exceed those agreed upon in the original issue. Article 114.-The values in which the administrator |! |extraordinary invests the resources it administers, |! |must be held in deposit in the entities |! |private deposit and custody of securities to which is |! |refers the law N ° 18,876, in conformity to their |! |dispositions, or in banks or in financial corporations, |! |according to the provisions of the decree with force of |! |law No. 252, 1960. All the money or assets of the issuer delivered to the |! |management of the extraordinary administrator, in |! |compliance with the provisions of the articles 112 and 113 |! |of this title and the investments, with more their readjustments, |! Any nature, is |! |will be legally constituted as a pledge of warranty |! |of the fulfillment of the obligations to which they relate |! |these provisions in favor of all those who are |! |bondholders of the issue corresponding to the |! |date of making such obligations enforceable. The money or assets and their updates and |! |returns as referred to in the preceding paragraph, no |! |recognize another guarantee that the there established and |! |any other caution that would have been constituted or is |! |intended to constitute on them will be without effect of |! |full right. At the same time, all goods included |! |in the legal garment can only be seized in trials |! |filed by the secured creditors, as soon as |! |exercise protected actions by the guarantee. In this event, it will not be necessary to individualize to |! |the creditors, suffice to express, in the accounts |! |special of registration and counting the name and |! |surnames of the extraordinary administrator, of the |! |representative of the bondholders and the number of |! |registration in the Register of Values relevant to the |! |respective issue, in order for the legal garment to remain |! |constituted without further processing with respect to the debtor, of the |! |creditors, of the company of custody and of third parties. When the obligations |! |were made due to the legal garments, the administrator |! |extraordinaire will give to the representative of the |! |bondholders the certificates of deposit |! |corresponding to the values in warranty, duly |! |endorsed, whatever the way they were |! |extended, constituting sufficient endorsement |! |transfer even when the credits or titles of |! |credits were nominative. Equal delivery must |! |make of the money you have not yet invested. Met the requirements stated in the above |! |incissos, the bondholders, will be able to |! |payment of the full amount of their credits, realignments, |! |interest and costs of collection, with preference to |! |any other obligation, included |! |the first class credits to which the |! |article 2472 of the Civil Code and any other to the |! |that special laws grant you special preference, |! |excepting exclusively the privileges |! |established in Articles 105 and 106 of this Title |! |for the payment of the arbitral costs and the remuneration |! |of the representative of the bondholders. In the execution of the obligations guaranteed with |! |values affected by this special garment, will be applied |! |regarding the bondholders, the provisions in |! |favor of the banks by article 6 ° of the law N ° |! | 4287, of 1928. In case of bankruptcy of the issuer, the money |! |and pignorized values will be excluded from the mass of |! |goods of the failed and these creditors will be paid without |! |await the results of the bankruptcy and without it be |! |it is necessary to carry out none of the reserves that prevent |! |the law 18,175, especially in its article 149. The |! |representative of the bondholders will be able, without more |! |processing, to exercise the procedures of making the |! |garment referred to in the previous paragraph and to pay their |! |represented in the corresponding proportion. Of equal rights to those established in the |! |incisos precedents will be enjoyed by the bondholders |! |they will act judicially individually, when |! |it is coming. The preference set forth in this provision and its |! |special modalities, may only be repealed |! expressly by another legal standard. Article 115.-They may only be representatives of the |! |bondholders and extraordinary administrators, |! |banks, financial corporations and others |! |persons who authorize the Superintendence by means of |! |a general rule. They will have to credit and |! |permanently maintain a minimum heritage |! |equivalent to 5,000 units of encouragement. The functions of the extraordinary administrators |! |and those of the representatives of the bondholders |! |are inselectable without any stipulation in |! |contrary to delete them, limit them or modify them. However, they may grant special powers to |! |third parties for the purposes and powers expressly |! |determine. If a representative of bondholders or a |! |extraordinary administrator will cease to comply with one or |! |more of the requirements that this law or its rules |! |complementary impose on them, the Superintendence will be able to |! |limit or suspend its activities. Article 116.-The representatives of the bondholders |! |of bonuses, the extraordinary administrators, the |! |stewards and the experts to which it refers |! |this law will be subject to the supersurveillance of the |! | Superintendence according to the faculties that |! |confers their organic law and those noted in the present |! |legal body. The persons referred to in this article, no |! |may be persons related to the issuer. If during |! |the performance of your charges will be produced some |! |inability for this reason, will refrain from further |! |acting, waiving the charge and additionally must |! |report these circumstances as essential fact to the |! | Superintendence that the fiscalice, to the representative of |! |the bondholders, if any, and will be quoted in the |! |shorter term to board of bondholders, when the |! |inability affects the latter or the administrator |! |extraordinary. They must also report in the same |! |character when they are in any of the |! |circumstances referred to in article 82, with |! |exception of the letter g). For the purposes of this article and, |! |in general, each time in any of the |! |provisions of this Title reference is made to |! |persons with interest or with respect to another, will be understood |! |by them to the typified as such in the |! |provisions contained in Title XV of this same |! |legal body. Article 117.-The extraordinary administrator, the |! |qualified experts and those in charge of custody to |! |referred to in the above article, will respond to the |! |minor fault for the correct exercise of their functions |! |regarding the issuer, their members or members of the |! |bondholders and interested third parties. Article 118.-Subscription or acquisition of bonds |! |implies for the subscriber or acquirer, acceptance and |! |ratification of all stipulations, standards and |! |conditions set forth in the writing of issuance and in |! |the agreements that are legally adopted on the boards |! |of bondholders. Article 119.-Bond issuance may be made with |! |or without warranty, may be used in the first case |! |any of the general or special warranties |! |established by law. If the caution consisted of garment, the delivery of |! |the thing bent, when required for the |! |constitution of the guarantee, will be made to the representative of |! |the bondholders or whoever is appointed. In the writes and inscriptions of mortgages or |! |garments it will not be necessary to individualize to the |! |creditors, suffando to express the name of the |! |representative of the bondholders designated in the |! |writing of the issue and the indication of the date and |! |notary before which it was awarded, noting to the |! |margin of the inscriptions the replacements that are |! |will perform. The citations and notifications that according to the |! |law must be practiced with respect to the creditors |! |mortgage or prendaries, will be understood fulfilled to the |! |to be done to the representative of the bondholders. A |! |said representative will also be responsible for accepting the |! |modifications or substitutions of the warranties |! |constituted or consenting in their uprising, prior |! |compliance with the norms established in this title. Article 120.-The issuer must pay faithful e |! |fully to the bondholders all sums |! |that they give them by way of amortizations of |! |capital, readjustments and interests, ordinary and penal, in |! |the form, period and conditions set in the |! |issue contract. Bonuses due for sweepstakes, redemption or expiration |! |the term of their maturity and coupons also |! |vanquished will have executive merit against the issuer. |! | In case of drawn bonuses, est They must appear in the |! |act. The default by the issuer of any of |! |the obligations imposed on you in the incisos |! |precedents, will empower any bond holder |! |affected to demand the collection of outstanding debts |! |in your favor, without which to requires the agreement |! |prior of the other creditors of the issue. The interposition of claims that pursue the |! |enforceability and anticipated collection of one or more bonds of |! |an issue, be by default in the payment of any of |! |them, for violation of the other obligations |! |entered in the guards established in the |! |write-out or for any other cause, only |! |may be decided by the bondholders ' board with |! |the quorum referred to in the first paragraph of the |! |article 124 of this title. Similarly |! |prior will require the interposition of claims intended |! |that the resolution of the |! |issue contract be declared judicially, with damages; the |! |request for bankruptcy of the issuer, the |! |presentation of conventions proposals |! |extra-judicial or preventive court of this debtor |! |with its creditors and their participation in them, |! |whoever proposes them, and, in general, |! |any other request or action |! |commit the collective interest of the holders of |! |bonds of an issue. In the situations referred to in the paragraph |! |precedent the relevant claims shall be filed |! |by the representative of the bondholders and the |! |executive title, if any, shall be supplemented |! |by a copy of the minutes of the respective, reduced |! |a public deed by such representative. Article 121.-An anonymous company issuing bonds |! |may grant holders collective option to |! |exchange them for ordinary or privileged shares of the |! |same company, according to the conditions |! |established in the contract of issue and to the |! |legal provisions in force. Article 122.-The shareholders ' meetings shall be |! |convened by the representative of such holders. The representative must convene a meeting: 1) When justified by the interest of the |! |holders, in the exclusive judgment of the representative; 2) When requested by the issuer; 3) When requested by the holders to meet, a |! at least 20% the nominal value of the bonds in |! |circulation of the respective issue; 4) When required by the Superintendence |! |respective, with respect to the issuers submitted to their |! |control, without prejudice to the ability to summon it |! |directly in any time. The respective Superintendence will practice the |! |citation if the representative does not make it in any |! |of the cases mentioned in the previous paragraph, in view |! |of the application signed by the issuer or the holders, |! |according to the case. All citations made by the |! | Superintendence will be performed by the issuer. Article 123.-The meeting shall be convened by means of a |! |prominent notice published, at least, for three times in |! |different days in the national circulation journal that |! |be determined for such effect in the writing of issue, |! |publication which shall be made within twenty |! |days prior to the signposted for the meeting and the first |! |notice may not be published less than fifteen days from |! |anticipation to the board. In case of suspension or disappearance of the |! |circulation of the designated journal, the publications are |! |will be carried out in the Official Journal. Article 124.-The boards shall be constituted in the first |! |citation, unless the law establishes majorities |! |superiors, with the bondholders who meet the |! |less the absolute majority of the votes of the bonds of |! |the corresponding issue and, in second citation, with |! |those attending. The agreements will be adopted, in each |! |meeting, by the absolute majority of the votes of the |! |assistants of the corresponding issue. The notices of the second citation will only be able to |! |publish once the board has failed a |! |to be done on the first summons and in any case, must |! |be quoted to be held within 45 days |! |following the date fixed for the Non-made joint. It will be up to one vote for the maximum common divisor |! |the value of each bond of the issue. Article 125.-Extraordinary meetings of |! |bondholders will be able to empower the representative of |! |bondholders to agree with the issuer the |! |reforms to the issue contract that specifically |! |authorize, with the agreement of the 2/3 of the votes |! |belonging to the bonds of the issue |! |corresponding, except quorum different established in |! |the law or superior consigned in the writing of emission. In the formation of all agreements to be |! |refers to this provision and Articles 105, 112 and 120 |! |of this Title, shall not be considered for the purposes of the |! |quorum and the required majorities on the boards, the |! |bonds belonging to Holders who were persons |! |related to the issuer. In any case, no reform can be agreed to |! |the writing of the issue without the unanimous acceptance of the |! |bondholders of the corresponding issue if |! |these refer to modifications to the rates of |! |interest or adjustments and to their payment opportunities; to the |! |amount and maturity of the debt write-downs and |! |the guarantees contemplated in the original issue. Legally adopted agreements will be mandatory |! |for all bondholders of the issue |! |corresponding. Article 126.-They may participate in the meetings of |! |the bondholders, the holders of bonds |! |nominatives, to the order or the bearer that have been |! |registered in the special registers of the issuer, to the |! |less, with 5 working days of anticipation of the day when |! |it must be celebrated. It will replace the direct registration of the holding of |! |bonuses, the circumstance of exhibiting certificates of |! |custody of such registered values with the above mentioned |! |anticipation. Article 127.-The bondholders can be made |! |represent on the boards by leaders, by means of |! |power. Directors, employees |! |or advisers of the issuing company may not be authorised. As relevant to the qualification of powers are |! |apply, in whatever you do not object to the rules |! |established in this title, the provisions relating |! |a qualification of powers in holding together |! |general of shareholders in the public limited companies |! |open, established in law 18,046 and its regulations. Article 128.-Of the deliberations and agreements of |! |the board will be left testimony in a special book of |! |minutes that will carry the representative of the holders of |! |bonds. The minutes will be deemed to have been approved since it is signed |! |by the representative of the bondholders, which |! |must do at the latest within 3 days |! |following the date of the meeting. In the absence of such |! |signature, for any cause, the minutes must be signed |! |by at least 3 of the designated bondholders |! |to the effect and if this is not possible, the act must be |! |approved by the board of bondholders who are |! |celebrate after the assembly that this is |! |refers. The agreements that they refer to will only be able to |! |take effect from the date of their signature. Article 129.-When the issuer has made |! |different bond issues, the bondholders |! |corresponding to each of them, will constitute |! |separate and independent boards. Article 130.-The issuer will not be able to acquire its |! |own bonds, without prejudice that it can rescarting them of |! |agreement to the stipulated in the contract of issue or |! |granting a voluntary rescue option of |! |identical conditions to all the holders of the same |! |issue. The bonds that the issuer holds in portfolio for no |! |have placed them or have rescued them, will not be |! |will consider as such for no legal effect. TITLE XVII Of the issuance of short-term debt securities Article 131.-The public offering of securities |! |representative of debt whose time limit is less than one |! |year, may only be effected by issuing a |! |promissory note or other debt securities or investment, with |! |subjection to the provisions of this law and to the |! |requirements establishing the Superintendence by means of |! |the dictation of general provisions that |! |will contain, at least, rules concerning: (a) Economic, financial and legal information, |! |updated of the issuer; (b) Persons of the issuer empowered to issue and |! |register such securities; (c) Issue of the issue, modalities and |! |characteristics of the issuer; readjustments and interests |! |pagar; placement and maturity periods; |! |cautions, if any, and their form of constitution, |! |substitution or replacement as appropriate; d) Place and dates of payment of capital, readjustments e |! |interest, if any; e) The particulars to be provided contain titles to |! |emitir; f) Additional reporting obligations, |! |limitations and bans on which the issuer will be held |! |while the issue is in force; powers of |! |audit and treatment protection measures |! |egalitarian that will have the holders of the promissory notes or |! |of titles of credit or investment, and greater |! |information to provide them in that period; g) The nature of the arbitration to which they must be |! |subject the differences that occur with occasion |! |of the issue, of its validity or of its extinction. If nothing |! |se dijere, it will be understood that these differences must |! |be known by one or more arbiters arbitrators. No |! However the above, when there is a conflict the |! |plaintiff will always be able to subtract his knowledge of the |! |umpires competition and submit it to the decision of the |! |ordinary justice, and h) Rights, duties and responsibilities of the |! |holders of promissory notes or credit or |! |investment. Banks and financial corporations that operate |! |in the country will not be subject to this Title and, if |! |are authorized to issue notes or other |! |credit or investment securities, will do so in accordance |! |the rules governing them. The Notes, credit or investment securities that are |! |issued in accordance with the provisions of this |! | Title, may not be extended or renewed. TITLE XVIII Of the securitizing companies Article 132.-The companies referred to in this |! |title, shall be constituted as special anonymous and their |! |object excluded shall be the acquisition of the credits to |! |referred to in Article 135 and the issue of securities |! |debt, short or long term. Each issue will originate |! |the formation of heritage separated from the heritage |! |common from the broadcaster. These companies must include in their name the |! |expression "securitizer" and will be subject to the rules |! |established in the articles 126 and following of the law |! | N ° 18,046 and, prior to obtaining the authorization of their |! |existence, they must check In the case of the Superintendence |! |a capital paid in cash not less than the |! |equivalent to ten thousand units of promotion. During its |! |life, the common heritage may not be less than the |! |indicated above, nor will it be able, 50% of this |! |legal minimum, to be affected to encumbrances, prohibitions or |! |embargos. The Superintendence, by means of character rule |! |general, will determine the assets different to money, |! |credits and other debt securities that are of offer |! |public, in which you will be able to invest said patrimony, and |! |will establish the maximum relationship of The debt that |! |may have the common heritage, which, in any case, |! |may not establish a relationship of less than 10 nor |! |greater than 15 times its paid capital. Article 133.-These companies will be subject to |! | |! |the audit of the Superintendence, will be governed by |! |the rules of this Title and by the provisions |! |applicable to the open anonymous societies. Article 134.-These companies must register in |! |the Registry of Securities the debt securities that they |! |issue. The short term title issue will be made under the |! |form and provisions of Title XVI of this law. It will not be applicable to these societies lo |! |disposed in the first paragraph of article 79 of the law |! | N ° 18,046, corresponding to the ordinary board of |! |shareholders resolve on the subject matter in said |! |precept. Article 135.-For the fulfillment of its object |! |social, the company may acquire mortgage letters and |! |mortgage mutual authorized by the decree with |! |force of law N ° 251, of 1931; and in addition mutual |! |authorized endotables by decree law |! | No. 3,500, of 1980, and by decree with force of law N ° |! | 252, of 1960. The Superintendence, by means of rules of |! |general character, will be able to determine other titles of |! |creditable credit to be acquired by these |! |societies. In any event, the securities must be held in writing and must be transferable. For the purposes of this law it will be understood that the |! |titles are the character of transferable, even |! |if they exist between those goods, nominative credits, |! |in which case their acquisition, transfer, or |! |constitution in guarantee may performed by endorsement |! |placed next, on the margin or the back of the |! |document in which they will be found, whatever the form |! |in which they would have been originally extended, applying |! |in whatever they were compatible, the rules of paragraph 2 |! |from Title I of Law 18.092 on Letters of Changes and |! | Pagars. Article 136.-Securitizer companies may |! |have in their assets separated up to 50% of |! |assets that have been originated or sold by a |! |same bank or financial company. This limit is |! |will reduce to 15% for each separate estate, when |! |the respective bank or financial partnership is person |! |related to the securitizing society. The same |! |restrictions will apply to the managers of |! |funds from securitized credits to which are |! |refers the law N ° 18.815, regarding the investment of |! |each fund that they administer. The Central Bank of Chile will establish the |! conditions for the sale and acquisition of portfolios of |! |banks or financial corporations to companies |! |securitiators or investment funds of credits |! |securitized. It will be up to the Superintendence of |! | Banks and Financial Institutions the Fiscalization of the |! |compliance with these norms. Article 137.-Awarded the contract of issuance of |! |debt securities with separate wealth formation, |! |fully integrate the asset and liability of this, |! |the goods and obligations to be determined in said |! |contract. From that date, the company will not be able to tax |! |or alienate the goods that conform it. Only the obligation of integer |! |of the asset of the patrimony separated by the society will be understood, |! |when the certificate is added to the inscription that |! |to the effect must be granted the representative of the holders |! |of debt securities, in the That the goods that |! |make up the asset are duly contributed |! |and in custody, free of encumbrances, prohibitions or |! |embargos and, if appropriate, that they have been constituted the |! |additional contributions agreed. Once added the certificate to which it refers |! |the previous paragraph, it will be up to the society to charge and |! |to perceive the payment for the debt securities that there is |! |issued, integrating the common patrimoni. If the certificate has not been added, |! |it will be up to the representative of the holders of |! |debt securities to collect and receive such payment, |! |directly if this is a bank or institution |! |financial or by means of any of these institutions |! |if you do not have such a character, entering these resources into the |! |respective separate heritage. The money received for the collection of the titles of |! |debt made by the representative of the holders of |! |the same, must be applied first to the payment of |! |the credits that have generated the constitution of |! |taxes or guarantees, against cancellation and |! |raising of these. Also, when you proceed, that |! |money will be applied to the payment of the additional inputs |! |agreed upon in the writing. Compliment the above, and |! |aggregate the certificate referred to the registration |! |relevant, the remnant for debt securities |! |issued will be paid to the company, entering the |! |common heritage. If within 60 days counted from the start of |! |issue placement, the representative of the |! |holders of titles will not award the certificate by |! |find the assets of the separate estate affections |! |with encumbrances, prohibitions or liens or for not being |! |these duly contributed or for not having been granted |! |the additional agreed contributions, this estate |! |will enter into liquidation applying in its respect, the |! |rules on settlement of separate assets, except |! |that the Superintendence prorogue that deadline to |! | 60 days. Article 138.-General creditors of the |! |company, regardless of the origin or quality of their |! |credits, may not make them effective in the goods that |! |conform the asset of the or the separate assets |! |constituted by its debtor or affect them with grválique, |! |prohibitions, precautionary measures or embargoes, but |! |only when they have gone on to integrate the common heritage |! |in the cases allowed in this title. On assets that integrate a property |! |separated, only the payment of the |! |obligations arising out of the debt securities |! |issued by the same, without prejudice to the |! |set forth in the fourth paragraph of this article. The right of general garment of the holders of |! |debt securities issued by the companies, is reduced |! exclusively to the assets of the respective estate |! |separated, without prejudice to the actual or |! personal accounts, granted by third parties or who tax the |! |common heritage of the company. The creditors of the separate estate are |! |formed exclusively by the holders of securities |! |of debt that integrate the respective issue and, in their |! |case, by the custodian of the values of the patrimony, the |! |representative of the holders of titles and the |! |manager of assets of the estate, by the |! |remunerations that are owed to them. Notwithstanding the foregoing, |! |in the issuance deed may be authorized to the |! |creditors of the separate estate so that they can |! |charge, in any circumstance, the default balance of |! |their credits on the estate common, concurring with |! |the other general creditors. In such an event, and in case |! |of declaring the bankruptcy of the company, the creditors |! |of the separate estate will also be considered to be vácias |! |in that common patrimony, if they had not been paid their |! |accrecias with the separate patrimony and always that their |! |credits n would have been specially guaranteed |! |through covenants or specific channels by the society. Article 139.-The company shall keep a record |! |special for each separate patriomonium constituting, and |! |shall be on record in the debt securities which |! |issue. The accounting of the common heritage and the |! |accounts of each of the separate heritages |! |that the society manages, will be carried in form |! |independent. Article 140.-With the approval of the representative |! |of the holders of debt securities, the company may |! |remove assets that conform the assets of the estate |! |separate to take them to their common heritage, in the |! |form to be established in the respective |! |issue contracts, as long as there are assets that exceed |! |the margins established in that contract. If the representative of the holders of titles of |! |debt does not give its approval, the issuer may appeal |! |the arbitral tribunal in accordance with the contract of |! |issue. The representative of the debt holders will not be able to |! |deny the withdrawal of the respective separate patrimony, |! |of the money necessary to settle the taxes or |! |tax penalties that have their origin in the |! |results coming from the management of said |! |separate assets or that will affect the assets or |! |debt securities of the separate estate. Article 141.-These companies will be able to administer |! directly the assets belonging to the assets |! |separated who own or commission this management to a bank, |! |financial society, mutual manager |! |endurable mortgages treats article 21a |! |of the decree with force of law 251, of 1931, or other |! |entities that authorizes the Superintendence. The titles of credit and securities that integrate the |! |asset of the separate assets must be |! |delivered in custody to banks, financial corporations, |! |securities holding and custody companies or other |! |expressly authorized entities by the law. Article 142.-The cost of administration and custody |! |of the separate assets, the remuneration of the |! |representative of the holders of debt securities and the |! |other necessary expenses that specifically are indicated |! |in the writing of issue, they will be in charge of those |! |heritages, must consist of the maximum amounts to |! |charge in the respective writing. The above is without |! |prejudice that the separate assets should put a |! |disposition of the common heritage of the society the |! |resources necessary to solve the burdens |! |tax referred to the final paragraph of the |! |article 140. Article 143.-The contract of issue shall |! |contain special rules on: a) Custody of the titles representative of the |! |investments of the separate assets; b) The administration of the surplus to which is |! |refers to article 140; c) The early redemption of the debt securities of |! |the issue or the substitution of the goods forming the |! |asset of the separate estate, in the event that the |! |credits that integrate it were paid in advance |! |voluntarily by the debtor, or because the creditor |! |has demanded it, for legal or contractual reasons that |! |autoricen; d) Formas and communication systems of the society |! |with the holders of securities, and (e) the option of the creditor to charge the eventual balance |! |credit default, in the issuer's common equity. Article 144.-Corresponds to the Superintendence |! |regular by rules of general application, matters |! |concerning: a) Calce of instalments, currencies, indices, systems of |! |amortisation and relationship that must exist between the |! |debt securities issued and the assets attached to the |! |respective separate assets; b) The minimum elements that must contain the |! |contracts for the administration of the goods that conform |! |the asset of the separate assets; c) The rules to which the accounting must be held |! |of the company and of each of the assets |! |separated, and d) The obligations of information They will have the |! |representative of holders of debt securities and the |! |issuing company, with the investors, posted on |! |general and the Superintendence. Article 145.-Once paid the debt securities |! |issued against a separate estate, the goods and |! |obligations that integrate the assets and liabilities |! |remnants, will pass on to the common heritage of the society. Article 146.-The bankruptcy of the company alone |! |will affect its common heritage and will not cause the bankruptcy |! |of the separate assets it has constituted. A separate estate will not be able to be declared in |! |bankruptcy in any case, but will only enter into |! |settlement when it concurs with respect to the one of the |! |causals that would have given rise to the bankruptcy. The bankruptcy of the issuing company and its heritage |! |common, will matter the liquidation of the or the patrimonies |! |separated that has stitched, the liquidation of one or |! |more of these will not bring about the bankruptcy of the society, nor |! |the liquidation of the other separate assets. When the company is declared bankrupt, the |! |respective representative of the holders of securities or |! |who appoints the board of holders of debt securities, |! |manage and liquidate the separate assets. Within a period of three months from the |! |date on which the resolution is executed which |! |declares the bankruptcy of the company, only a decision can be made |! |the disposal of each separate estate as a unit |! prescribed in article 150, |! |required the joint settlement of the liquidator of the |! |separate estate and of the receiver that administers the |! |partnership. In the absence of agreement and without another procedure that the |! |audence of the parties, will decide the judge that knows of |! |the bankruptcy. If it is not possible to dispose of each estate |! |separate as a patrimonial unit within the period |! |indicated in the foregoing paragraph, the liquidator may |! |proceed as set forth in Articles 148 |! |and following of this Title. Article 147.-In the liquidation of a property |! |separate, the representative of the |! |holders of debt securities or who appoints the board |! |of holders of debt securities with the powers and |! |obligations that it imposes on it. The society will remain |! |inhibited full right of all the power of |! |administration and disposition of the goods that |! |integrate, being rooted these attributions in the |! |liquidator. This limitation will remain until the |! |extinction of the credits that make up your liability. The management and custody regimes |! |will continue to apply to the assets subject to them, |! |as long as they are not settled in the form indicated in |! |this title. The liquidation of a separate estate does not |! |carries the automatic termination of the |! |corresponding management contracts or |! |custody, without prejudice to the liquidator's faculty |! |to put them to term. The expenses of the liquidation of a property |! separate must be paid by the goods that |! |integrate or with the assets of the common patrimony when |! |it is originated by bankruptcy of the society |! |securitizer. For this purpose these will be considered |! |as credits váticias. Article 148.-Declared in liquidation a |! |separate estate for any cause, the liquidator |! |will cite extraordinary board of holders of titles of |! |debt, for it to be held within 30 days |! |counted from the date of the start of settlement, a |! |end to resolve on the rules of administration and |! |liquidation of the estate. Without prejudice to comply, in any case, with the |! |provided in the second paragraph of Article 146, the said |! |rules shall comprise the following matters: a) the transfer of the separate estate as |! |patrimonial unit to another society of equal rotation; b) the modifications to the contract of issue, the |! |that they will be able to understand the remission of part of the debts |! |or the modification of the deadlines, modes o conditions |! |initiales; c) the form of disposal of the assets of the |! |separate patrimony; d) the continuation of the administration of the |! |separate patrimony to the extinction of the assets |! |that make up, and e) Any other matter that determine the board |! |relative to the administration or settlement of the |! |separate estate. The agreements must be adopted with a favourable vote |! |of holders of securities representing at least the |! absolute majority of the securities issued and in |! |movement, except in the case of the subjects indicated |! |in point (b), in which the quorum of agreements will be to the |! |less, the two thirds of the titles issued and |! |in circulation. If there is no quorum to adopt agreements in |! |first citation, a new board must be quoted the |! |which must be held within 30 days |! |the date fixed for the unmade board and the |! |agreements must be adopted with the favourable vote of |! |holders of titles representing at least the |! |absolute majority of the titles issued and in |! |circulation, except in the case of the subjects indicated |! |in points (a) and (d), in which the quorum of agreements will be |! |the majority absolute of the titles present in the |! |board, and the letter b), in which the quorum of agreements will be, |! |to the less, two thirds of the titles |! |issued and in circulation. The liquidator will exercise the spin until the |! |liquidation of the estate is achieved, either as a unit |! |patrimonial or in partial or extingan the assets |! |that make up the separate estate. Article 149.-In all matters relating to the liquidation |! |of the separate patrimony, whatever form it |! |be realized, will be applicable in whatever they were |! |compatible, the rules on settlement of societies |! |anonymous established in the law No 18,046. Article 150.-In the liquidation of a property |! separate, the disposal as a patrimonial unit must |! |understand all the goods and obligations that |! |constitute its assets and liabilities and can only be effected |! |in favor of another society governed by the same Title. |! | In the acquiring company, by the sole fact of the |! |acquisition, it will be understood constituted a heritage |! |separate, subject to the provisions of this Title, to the |! |which will belong the acquired assets and this |! |patrimony will take over the service of the titles of |! |debt, under the conditions in force in the contract to the |! |date of the transfer. Of this change in the ownership of the |! |separate estate, you will need to take reason in the Register |! |of Values, apart from the registration of the issue of |! |the titles of which is to be ate. Article 151.-In case of dissolution, by any |! |cause, of the societies referred to in this title, |! |that to the date of such dissolution still maintain |! |separate assets, the liquidation of the society |! |will be practiced by the Superintendence with all the |! |faculties that the law grants you for the liquidation of |! |insurance companies. The settlement may be |! |delegated by the Superintendent in one or more |! |officials of the Superintendence or in other persons |! |whenever they do not affect them the inabilities |! |referred to in Articles 35 and 36 of the law N ° |! | 18,046. The dissolution of the society will cause the |! |liquidation of the or the separate patrimonies, which |! |will be effected according to the rules established in this |! |title. The expenses of the liquidation of the company will be of |! |charge of its common patrimony. From the moment the society stops |! |have separate assets, the settlement will continue to |! |your charge, according to the general rules. In any case, the Superintendence may authorize |! |the society to practice its own liquidation. Article 152.-The Superintendence may revoke the |! |authorization of existence of the societies that |! |treats this title according to its faculties or in |! |case of severely guilty administration or |! |fraudulent. If the common heritage does not comply with the rules |! |set out in article 132 of this law, the society |! |will be obliged, whenever this happens, to complete it |! |within the 60-day period. If it does not, it will be |! |will revoke the authorization of existence and will proceed to |! |the liquidation of the society. Article 153.-The issuance of debt securities to which |! |refers to this Title, shall be exempt from the |! |tax laid down in Article 1 °, N ° 3, of the decree |! |law N ° 3,475, of 1980, on Tax of Timbers and |! | Stampillas, provided that the Asset assets |! |separate respective is constituted by mutual |! |endurable mortgages, in an amount at least |! |equivalent to the debt for bonds corresponding to |! |said estate. The payment to the Tax of the tax obligations of |! |the society, whatever its nature or origin, |! |it will be of exclusive responsibility of its common patrimony |! |and not of the one of the separate assets that it has created |! |or formed. These assets must provide the |! |necessary resources to the common heritage of the society, |! |when required to comply with the |! |prescribed in the final article 140. The difference between the value |! |of the acquisition of a securitized credit and the value |! |nominal of this one, will not be considered income, but only the |! |result that comes from comparing, in its opportunity, |! |the cost of acquisition of the credit, duly |! |corrected, with that of its partial recovery or |! |definitive, that it has been produced when the collection has been made |! |cash of the same, or the value of sale if it is |! For the purposes of article 31 |! |of the Law on Income Tax, will be considered |! |expenses accepted in the First Category of said law, |! |the provisions and penalties of credits |! |securitized, incorporated or not to the |! |separated, who are defeated, as well as the |! |emissions that are made, whether or not they are due. |! | The features to be gathered by the provisions, |! |referrals and punishments to proceed with the provisions in |! |this standard, will be established by the Superintendence |! |of Securities and Insurance, after consulting the Service of |! | Internal Taxes. The commissions and other remunerations that the |! |societies referred to in this Title, pay to |! |third parties for the administration and custody of the goods |! |members of the separate assets that they own, in |! |the terms that have the First of the article |! | 141, will be exempt from the Value Added Tax |! |established in Decree Law No. 825, 1974. TITLE XIX of the Chamber of Compensation Article 154.-The stock exchanges may |! |constitute or be part of a Chamber of Compensation, |! |the one that will have as object to be the counterpart of all the |! |purchases and sales of contracts of future, options of |! |values and others of similar nature that |! |authorize the Superintendence, which are carried out in the |! |respective bag, from the registration of said |! |operations in the mentioned Chamber. Likewise, the Chamber will manage, control and |! |liquidate operations, open positions, accounts |! |streams, margins and balances available that they perform and |! |maintain customers and brokers in these markets. Article 155.-The Chambers shall be subject to the following rules: (a) They shall be constituted as public limited liability companies |! |special in accordance with the provisions of the |! |article 126 of Law No 18,046, and shall be applicable to them |! incompatible with the provisions |! |of this law, the rules applicable to the |! |open anonymous societies and the rules of character |! |general dictated by the Superintendence. In their name |! |they must include the expression "Chamber of Compensation"; b) They will have as exclusive object the indicated in the |! |previous article; c) The minimum paid capital, expressed in pesos, no |! |may be less than the equivalent in cash, to |! |fifteen thousand promotion units; d) They will have a directory consisting of 5 members a |! |the least, which may or may not be shareholders, may be |! |reelegidos; e) The actions will be nominative and worthless |! |nominal; f) They may only be constituted by bags of |! |values and their respective corridors; g) They shall have an arbitral tribunal This is not a matter of fact. It is not a matter of fact. It is not a matter of fact. It is not a matter of fact, but it is not a matter of fact. Less 30% of the profits of each |! |exercise will be used to form a Fund of Contigency, |! |that will have to cover outstanding obligations |! |derived from operations recorded in the Chamber. The |! |above will be mandatory until the Fund is |! |equivalent to the capital and reserves of the chamber. Article 156.-The Chambers will have the following |! |functions: a) Issue and register the contracts of the |! |future operations and options and be the counterpart |! |of the same; b) Receive from the brokers the initial margins, |! |money and corresponding values and credit the |! |same in the respective current accounts. The margins constituting the contractors with |! |a clearing house, to respond to their |! |obligations, especially to cover the differences |! |prices that occur in futures contracts |! |and options, will be able Be transferred in |! |domain the respective good, which will be stopped by the |! |camera in its own name. When necessary to do |! |cash these margins, the camera will perform them |! |extra-judicially, acting as lord and owner, but |! |rendering account as trustee of your |! |counterpart. The above is without prejudice to the |! |provided in article 179 of this law; c) Update daily the open positions of |! |customers, should adjust margins, set |! |daily price variations and charge or pay a |! |each checking account any losses or gains |! |corresponding; d) inform brokers the lack or excess of |! |margin and the balances of the current accounts of their |! |customers, as well as the need for them to complete |! |the margin, where applicable; e) Order the runners to close partial or |! |total of the positions open your customers by no |! |meet these with margin requirements or |! |covers; f) Liquidate, at the due date, the |! |open positions of the expiring contract, decreasing |! |the corresponding margin and loading or paying the |! |losses or profits produced, and g) The others that set the regulations |! |internal of the respective camera with the authorization of |! |the Superintendence. Article 157.-With the sole registration of an operation |! |in the Chamber, the contracts of |! |future and of options in their case, between the Chamber and each |! |one of the parties of the respective negotiation are understood. Registered contracts may not be |! |subsequently transferred. All cession, transfer or |! |another act of commerce must be executed by a |! |new contract. Article 158.-The special guarantees included |! |in each contract will be released at the time |! |the operations have been cleared for compliance with |! |their conditions. In those cases of liquidation in |! |partialities, the guarantees will be released in form |! |proportional to the liquidation. Article 159.-Without prejudice to the powers of the |! | Superintendence, the Court of Arbitration of the Chamber of |! | Compensation may apply to the brokers operating |! |in the Chamber the penalties of written warning, |! |fine of 50 to 500 Promotion units, for the benefit of the |! |respective contingency fund, temporary suspension of |! |for up to 30 days and expulsion from the Chamber, provided that |! |incurs any of the following infringements: 1) Failure to comply with obligations result |! |of the contracts registered in the Chamber that are transacted |! |by their intermission. 2) Not to constitute in a timely manner the margins |! |general or special that are required for contracts |! |registered in the Chamber or not to constitute the guarantees |! |individuals that it establishes. 3) Provide the House with data or reports |! |incomplete or erroneous on contracts that |! |intermediate or on their financial situation. 4) infringe on the rules of the Chamber's operations |! |established in its statutes or in the R Internal regulation. Those who would have been punished by the Court |! | Arbitral will be able to request, within five days |! |business following the notification of the measure, |! |review of the sanction before the board of the House. Article 160.-Corresponds to the Superintendence |! |audit and supermonitor the operation and |! |performances of the Chambers of Compensation that are |! |establish, according to the faculties and attributions |! |that they confer this law, their law organic and others |! |laws of their competence, especially those referred to |! |stock exchanges. To set up and operate a clearing house, |! |will require prior authorization of the |! | Superintendence, who will approve their regulations and |! |rules that are dictated for their operation and in their |! |case, modifications thereto. This Body will be entitled to reject or |! |propose modifications to the draft regulations and |! |standards, within a period of 90 days counted from their |! |presentation. In cases where the Superintendence |! |propose modifications, the course of the term is |! |will suspend from the date of the communication that |! |contains such a proposition and will only resume when it is |! |has complied with said procedure. Subsated the defects or addressed the |! |observations formulated, if any, and expired the deadline |! |previously indicated, the Superintendence must |! |authorize the regulations or norms presented, inside |! |of the fifth day. TITLE XX Of liability of companies |! |managers of funds audited by the |! | Superintendence Article 161.-The managing company of |! |any fund audited by the Superintendence, |! |must carry out all the demarches that are necessary, |! |with the care and diligence that men employ |! |ordinarily in their own businesses, for precautionary the |! |obtaining an adequate combination of profitability and |! |security of the fund's investments. The company will follow each fund, attending |! |exclusively to the best convenience of this and to which |! |each and every one of the acquisition operations and |! |disposal of assets that you make on behalf of the same, |! |be done in the best interest of the fund. The administrator will respond until the minor fault |! |for the damages caused to the fund by |! |non-compliance with any of its obligations. The administrator will be able to sue the people who |! |would have caused injury to the fund, being able to |! |claim damages for the damages caused, in |! |summary judgment. The managing company will be obliged to |! |indemnify the fund for the damages that it or |! |any of its dependents or persons that lend to it |! |services will cause it, as a consequence of the execution |! |or omission, as appropriate, of any of the |! |prohibited performances referred to in this article and |! |the 162. The above mentioned persons who would have |! |participated in such performances will be jointly and severally |! |responsible for the refund, which will include the damage |! |emerging and the loss-making profit. The external auditors of the administrator must |! |decide on the internal control mechanisms |! |that is imposed, to ensure the faithful compliance |! |of this article and the prohibitions referred to in the |! |article 162, as also on the systems of |! |information and file, to register the origin, destination |! |and opportunity of transactions that are made with |! |the resources of each fund. Article 162.-They are contrary to this law and |! |the following actions or omissions, if any, |! |made by the administrators: (a) transactions made with the goods of the |! |fund for profit, direct or indirect; b) the collection of any service to the fund, no |! |authorized by law, contract or regulations |! |internal, or in terms and conditions (c) the collection of any service provided |! |by persons related to the administrator of the same; (d) the use for their own or foreign profit, of |! |information relating to transactions by (e) the communication of information, in advance of the |! |fund, essential relative |! |to the acquisition, disposal or maintenance of assets |! |for the account of the fund, to persons other than those |! |that strictly must participate in the operations |! |respective, in representation of the administrator or |! fund; f) the acquisition of assets that make the |! |administrator for if, within the next 5 days |! |the disposal of these, effected by it, by |! |account of the fund, if the purchase price is less than the existing |! | Disposal. In the case of |! |low-liquidity assets, this time limit will be 60 days; g) the disposal of own assets that will make the |! |admnistrator within 5 days of the |! |acquisition of these on behalf of the fund, if the price |! |is higher than the existing prior to that acquisition. |! | Dealing with low-liquidity assets, this term will be |! |60 days; h) the acquisition or disposal of goods for account |! |the fund in which it acts for itself as a transferor or acquirer |! |the administrator. Likewise, the acquisition or |! |disposal of assets by account of the fund to persons |! |related to the administrator through |! |private negotiations, and i) the assets or acquisitions of assets that |! |make the administrator, if It will be more |! |advantageous for this than the respective enajenations or |! |acquisitions of these, made on the same day, by |! |account of the fund. Except if they are delivered to the bottom, |! |within two days of the operation, the |! |price difference corresponding. For the purposes of this Title, the expression |! |administrator will also comprise any person who |! |participates in the fund's investment decisions or who |! |on account of their position or position, has access to |! |information of the investments of the fund. It will be understood |! |by assets, those that are of the same species, |! |class, type, series and issuer. Low-liquidity assets are defined as those |! |that are not frequently transacted and in volumes |! |significant from formal secondary markets. The |! | Superintendence will determine by character rule |! |general low liquidity assets. Notwithstanding the administrative penalties, civil and |! criminal which correspond and the right to claim |! |damages, the acts or contracts made in |! |contravention to the prohibitions above |! |marked, will be understood validly held. Article 163.-By standard of general character, |! |the Superintendence will determine the assets of low |! |liquidity in that they will not be able to invest their patrimony the |! |companies managing funds audited by |! |it. TITLE XXI Of Insider Information Article 164.-For the purposes of this law, it is |! |understands for inside information any |! |information concerning one or more securities issuers, |! |their business or one or several securities by them |! |issued, not disclosed to the market and whose knowledge, |! |by its nature, be able to influence the listing |! |of the securities issued, as well, the information |! |reserved as referred to in article 10 of this law. Also understood by insider information, |! |the one with the acquisition operations or |! |disposal to be performed by an investor |! |institutional in the stock market. Article 165.-Any person who in reason of their |! |charge, position, activity or relationship has access to |! |inside information, must keep strict |! |reservation and will not be able to use it in his own benefit or |! |alien, nor acquire for himself or for third, direct or |! indirectly, the values on which you possess |! |insider information. Likewise, they are prohibited from using the information |! |privileged to obtain profits or avoid losses, |! |by any type of operation with the values to |! |that she refers or with instruments whose profitability |! |is determined by those values. Likewise, it is |! |refrain from communicating such information to third parties or |! |to recommend the acquisition or disposal of the |! |quoted values, ensuring that this does not occur to |! |through subordinates or third parties of their trust. Notwithstanding the foregoing, the |! |securities intermediaries who have the information |! |privileged referred to in the above article, |! |may do transactions in respect of the securities to which |! |she refers, on behalf of third, provided that the |! |order and the specific conditions of the operation |! |stem from the customer, without advice or recommendation of the |! |runner. For the purposes of the second indent of this |! |article, transactions will be understood to be |! |the date on which the acquisition or disposal is effected, |! |regardless of the date on which they are registered in the |! |issuer. Article 166.-They are presumed to have access to |! |inside information, the following persons: a) Directors, managers, administrators and |! |liquidators of the issuer or investor |! |institutional, if any; b) The persons referred to in point (a) of this |! |article, who perform in a society that has the |! |quality of matrix, coligant, filial or coligada of the |! |broadcaster whose values are treated, or the investor |! |institutional in your case, and c) The directors, manager, administrators, |! |proxies, financial advisors or operators, of |! |securities intermediaries. In the case of the persons referred to in point (c) |! |of the preceding paragraph, the presumed presumption is |! |refers exclusively to the information |! |privileged defined in the second paragraph of the article |! | 164, and also in respect of the information they have |! |on the placement of first issue actions that |! |have been entrusted to them. They are also presumed to have information |! |privileged, as far as they can have access |! |direct to the fact object of the information, the |! |following persons: a) The external auditors and account inspectors |! |the issuer, as well as the partners and administrators of the |! |audit firms; b) The partners, administrators and members of the |! |classification boards of the companies |! risk, to classify values of the |! |issuer or to the latter; c) Dependents working under the direction or |! |direct supervision of directors, managers, |! |issuer or liquidators of the issuer or of the |! |institutional investor; d) Persons providing advisory services |! |permanent or temporary to the issuer; Public servants dependent on the |! |institutions that fiscalize issuers of |! |public offering or funds authorized by law, and f) Spouses or relatives up to the second degree |! |of consaguinity or affinity, of persons marked |! |in point (a) of the preceding paragraph. Article 167.-The directors, managers, |! |administrators, advisors who provide services to the |! |society, or persons who by reason of their charge or |! |position, have had or have access to information |! |privileged, will be required to give compliance with the |! |rules of this Title even if they have ceased the respective |! |charge. Article 168.-Securities brokers whose |! |directors, administrators, proxies, managers or |! |wheel operators, participate in the management of |! |an issuer of securities of public offering, by its |! |performance as directors, administrators, managers or |! |liquidators of the latter, or their subsidiaries and |! |coligadas, will be obliged to inform their customers |! |of this situation, in the form that determines the |! | Superintendence and must refrain from performing, |! or indirectly, any operation or |! |transaction of shares issued by that issuer. It exempts from the above prohibition |! |those intermediaries who are subsidiary companies |! |of the issuer of shares, provided that they both have |! exclusively in common directors and these do not participate |! |directly in their brokering decisions. Article 169.-The activities of intermediaries of |! |values and those of the persons who depend on those |! |intermediaries, who act as operators of tables of |! |money, perform financial advice, administration and |! |investment management and, In particular, adopt |! |procurement decisions, maintenance or disposal of |! |instruments for if or for clients, must be performed |! |separately, independently and independently of any |! |other activity of the same nature, management and |! |credit grant, developed by investors |! |institutional or other securities brokers. Likewise, the administration and management of investments |! |and, in particular, the decisions of acquisition, |! |maintenance or disposal of instruments for the |! |admnistradora and the funds that it is administering, must |! |be realized separately, independent and |! |stand alone any other function of the same |! |nature or securities intermediation, advisory |! |financial, management and credit granting, regarding |! |others. This limitation will not prevent the |! |dmnistrators of funds, exclusively in the |! |activities of their spin, to share |! |resources or means to perform them. Managers, administrators, managers, |! |proxies, financial advisors, table operators |! |money or wheel operators of a |! |securities broker, will not be able to participate directly or indirectly |! |in the admnistration of a Fund Manager of |! |third parties authorized by law. Article 170.-The external auditors that audit |! |the financial statements of investors |! |institutional and of the intermediate values, must |! |decide on the mechanisms of internal control |! |that these are imposed, to ensure by the faithful |! |compliance with the rules of this Title, as well as |! |on information and file systems, for |! |register the origin, destination and opportunity of the |! |transactions that are made with the own resources and |! |third parties administer or intermediate, if applicable. The Superintendence, by means of character rule |! |general, will determine the information that they will have to keep |! |the institutional investors and the intermediaries |! |of values for the fulfillment of the dispositions of |! |this Title, and the files and records to be |! |take in relation to transactions with resources |! |own, those of their related persons and the |! |made with third party resources that they administer. The information contained in those files will make faith in |! |against those forced to take them. Article 171.-Without prejudice to the provisions of the |! |previous article, persons participating in the |! |acquisition and disposal decisions and operations of |! |securities for institutional investors and |! |securities intermediaries and those who, by reason of their |! |position or position, have access to the information |! |regarding the transactions of these entities, |! |shall inform the management of their company, of all |! |acquisition or disposal of securities which they have |! |done, within 24 hours of the |! |transaction. These entities must report, within |! |of the 5 day deadline, to the Superintendence, about |! |those transactions, each time they accumulate within |! |the 30 days prior to the transaction, operations |! |equivalents in money, to 150 promotion units. Article 172.-Any person harmed by |! |actions involving infringement of the provisions |! |of this Title, shall be entitled to sue |! |compensation against the infringing persons. The action for damages will be prescribed in a |! |year counted from the date the information |! |privileged has been disclosed to the market and the public |! |investor. The persons who have acted in contravention of the |! |established in this Title, must deliver to the benefit |! |tax, when there is no other injured party, all |! |utility or pecuniary profit that they have obtained to |! values of the issuer that is |! |try. Anyone who infringes the provisions of Article 169, |! |will be liable civilly for damages caused to the |! |respective client or to the funds in their case, without |! |prejudice to the criminal and admnistrative sanctions that |! |correspond. TITLE XXII Of Guarantees Article 173.-Guarantees on offer securities |! |public, coins, gold, silver or other transferable securities |! |or receivables, which are intended to be used for the purpose of the holding |! with |! |the stock exchanges or with their clients or any |! |of these for with those, by broking operations |! |of values or by the complementary activities that are |! |authorize them according to the law, will be constituted in |! |the Next form: a) If the guarantee recesses on coins, gold or |! |silver, or titles of credit or transferable securities to the |! |bearer, the garment will be constituted by the |! |grant of a private instrument, signed by the |! |parts before a stockbroker that is not a part in |! |the obligations held or the manager of the |! |respective bag, in which the |! |goods will be individualized. In addition, material delivery of the |! |goods given in garment to the creditor or the third party that of |! |common agreement the parties will be essential. b) If the guarantee on credit or securities securities |! |transferable securities issued with the clause "to the order" or that |! |can be transferred by its endorsement, the garment will be |! |will be constituted by the endorsement in guarantee of the title and |! |the material delivery of the The same applies to the provisions of the laws N ° s 18.092 and 18,552. (c) If the guarantee recesses on shares, bonds or |! |nominative transferable securities, containing the |! |clause of "non-endosables", the garment will be constituted |! |by granting the private instrument to which |! |refers to the letter a) precedent and the material delivery |! |the creditor of the relevant titles, in which it is |! |will be placed under the firm of the debtor of his delivery |! |in guarantee to the creditor that I have pointed out. If these actions, |! |bonuses or nominative values are subject to |! |mandatory registration in a Register, the garment |! |constituted on them will be opable to third parties from |! |their registration in the competent Registry. In the cases referred to in this Title, it will not be |! |necessary to notify the debtor, who will be released from |! |all liability if you pay to whom you credit your |! |creditor condition by the guarantee. Article 174.-The garments that are constituted in |! |conformity to this Title, will serve as warranty to the |! |specific and determined obligations that are pointed out, |! |unless it is expressly stated that the garment has been |! all obligations |! |direct that the owner of the garment has or may have a |! |favor of the creditor and provided that it is |! |those referred to in the previous article. Article 175.-Goods delivered in garment of |! |conformity to the above articles, plus their |! |interest, readjustments, fruits and increments of any |! |nature, will respond to the full payment of the credits |! |guaranteed, their readjustments, interests and costs of |! |collection. These goods will not recognize another warranty or |! |preference of any kind or nature that is |! |will be subsequently constituted on them and if |! |some se constituiere, will be left without full effect |! |dere cho. At the same time, all goods included in the garment |! |in reference, can only be seized in trials |! |established by the secured creditors, as soon as |! |exercise protected actions by the guarantee. In case of bankruptcy of the debtor, the goods |! |pignorados will be excluded from the mass of goods of the |! |failed and the creditors held captive by this guarantee |! |they will be paid without waiting for the results of the bankruptcy |! |and without it is necessary carry out none of the reservations |! |that comes the law N ° 18,175, especially in his |! |article 149. The most successful creditors referred to this |! | Title, may without, further process, exercise the |! |garment performance procedures referred to in |! |the following article and pay for their credits in the |! |time and form indicated in the said article. provision. Article 176.-Once made enforceable any |! |of the guaranteed obligations, the creditor will |! |will make the goods available to a stock exchange |! |of securities, to proceed to its realization in |! |public auction at the latest the second business day |! |next to the day of delivery. The nominative credits, |! |whatever the form of their bestowal and the |! |clauses that include, will be delivered endorsed to the |! |bag of respective values by the secured creditor |! |so that his transfer can be perfected. The product obtained at the auction must |! |be delivered to the creditor on the next business day at the time of the |! |realization of the garment and this will proceed immediately to |! |effect the liquidation of the secured credit, |! |must obtain from the bag corresponding one |! |certification that according to that settlement. After the above, it will be applied without further processing |! |the values obtained for the payment of the obligation, |! |giving in the same opportunity the remnant, if the |! |there, to the debtor. Article 177.-If before becoming due the |! |guaranteed obligations shall be due the credits which |! |cautioning their compliance, the creditor will be able to |! |proceed to its collection and what it gets in payment is |! |it will be legally constituted in garment, for the |! |ends, with the validity and effects referred to by these |! |dispositions. The money which the creditor will obtain from |! |according to the foregoing paragraph, as well as |! |their fruits and increases, shall be preserved by the |! |creditor or by the depositary of the goods, |! |except that the parties have expressly agreed that |! |are deposited in the interest or that the creditor consents in the |! |return of the money in exchange for other titles that |! |guarantee the obligations held. Article 178.-Upon completion of the process of |! |performance and liquidation of a garment under this |! | Title, who considers to have suffered damages may |! |sue in summary judgment. TITLE XXIII Provisions several Article 179.-Securities agents, brokers of |! |stock exchange, stock exchanges, banks, or any other |! |legally authorized entity, that maintains securities by |! |account of third parties but in its own name, shall |! |enroll in a special register and log separately |! |in your accounting these values with the |! |complete individualization of the or people by |! |account of who keeps them. This registration will make faith in |! |against the persons mentioned, being able to the |! |interested to claim at all times their rights, |! |using any means of legal proof. Article 180.-Civil actions emanating from |! |the rights set forth in Titles XVI, XVII and |! | XVIII of this law, shall be prescribed within 2 years |! |counted from the date on which they were made |! |enforceable. This prescription will run against every person and not |! |admits suspension. Article 181.-The precepts of this law will regulate |! |suppletoriely the matters dealt with the other laws |! |of the market of values in whatever they are contrary to the |! |dispositions of those laws and will prevail over any |! It would be contrary to him. Article 182.-The Central Bank of Chile will be |! |authorized to impose, according to the procedure |! |indicated in article 50 of its organic law, limits or |! |restrictions on changes in the net position of |! |investments of instruments in the foreign you own |! |institutional investors. c) Defeat the following provisions: article |! | 13; Title IV, Articles 16 and 22, both inclusive, and |! |articles 89 and 91a. Article 2.-Introduces the following amendments to Decree Law No 1,328 of 1976 on the Administration of Mutual Funds: 1) Replace in Article 4 °, the following expressions: (i) In the first indent, the expression "final indent" by 'sixth indent', and (ii) in the fifth indent, the expression 'provided that its dissolution has not been due to the revocation of its authorisation for existence'. (2) Reposition Article 7, by the following: " Article 7 °.-To obtain the authorization of their existence, the admnistrative societies must check before the Superintendence, a paid capital in cash not less than the equivalent of eighteen thousand promotion units. At all times, these companies must maintain a property, at least equivalent to the amount indicated by each fund which is allocated or equivalent to 1% of the average assets of these companies, corresponding to the calendar year preceding the date of their (3) Add to Article 9 (3), following the first subparagraph, the following subparagraph, passing the separate point (.) to be followed (.): " Without prejudice to the foregoing, the admnistrative company of the Fund may entrust the custody of such instruments to a securities holding company, regulated by Law N ° 18,876, in which case these securities may be registered in the name of the depository undertaking. "4) Add the following Article 12a:" Article 12a.-The admnistrative company, its related persons, shareholders and workers who they represent the employer or have general administrative powers, they may not hold individually or jointly more than 15% of the shares of each of their managed funds. The Superintendence shall establish by means of general rules the form, conditions and time limits for persons exceeding that percentage to proceed to the rescue or transfer of their quotas, up to that part which permits compliance with the without prejudice to the appropriate penalties. The placement, rescue or transfer of these fees by the aforementioned persons shall be reported in the same way as the transactions provided for in Article 12 of Law No 18,045 are communicated. The mutual fund managers which are subsidiary companies of banks may not invest in shares of mutual funds which invest in shares. ' (5) In Article 13, the following amendments shall be made: (i) Add to the number 2, the following final indent: " Without prejudice to the foregoing number, the Fund may invest up to 10% of the value of its total assets, in shares of open anonymous companies that do not comply with the conditions in order to be considered as a stock market transaction, in accordance with the provisions of this law, provided that such shares are registered in a stock exchange in the country and that its contribution period is less than 60 stock days. ' (ii) Add to the number 8, the following final indent: " Dealing with securities issued by foreign issuers, the Superintendence shall establish, by means of such a rule, the equivalences between the classification which may be made from these overseas securities, and the risk characteristics identified in this issue. ' (iii) Add the following numbers: " 9. The Fund may invest in securities issued or guaranteed by the State of a foreign country; by Central Banks; by foreign or international banking entities usually transacted in local or international markets; debt and shares, both of which are securities transactions, issued by foreign corporations or corporations; and other securities of the public offering of foreign issuers authorizing the Superintendence. In any case, the above mentioned values must comply with the conditions and characteristics established by the Superintendence, which will also determine its form of recovery. The Bank shall establish the maximum rates of investment annually within the limits laid down in Article 10 of this Article. 10.-The Fund may conclude contracts for the future and acquire or dispose of options for purchase and sale on assets, securities and indices, provided that all these are held or transacted in stock markets, and meet the requirements of the Fund. Superintendence shall establish by means of a general rule, in which it shall also determine the general conditions of the operations and the maximum limits which may be committed to them. ' Article 3.-Introduces the following amendments to Law No 18.815 on Mutual Funds: 1.-Replace Article 3 (c), by the following: " (c) To obtain their authorization of existence, they must credit a capital paid in cash not less than the equivalent of ten thousand promotion units. At all times, these companies must maintain a property, at least equivalent to that indicated by each fund which they administer or equivalent to 1% of the average assets of these companies, corresponding to the calendar half before the date of their 2.-Amend Article 4 (2) (c), as follows: "(c) Policy on investment in resources, and at least the policy of diversification of resources must be at the very least" of the inv (ii) delete at the end of point (g) the conjunction " and replace the comma (,) with a semicolon (;) (iii) in point (h), replace the endpoint (.) with a semicolon (;) (iv); Add the following points (i) and (j), follow (h): (i) Policy on capital increases, and (j) Debt policy. 3.-Amend Article 5 ° in the following form: (a) Article 5 ° (8), (10), (11) and (12) shall be replaced by the following: " (8) Shares, bonds, trade effects or other debt securities the issue of which has not been recorded in the Superintendence, provided that the issuing company has annual financial statements by external auditors, of those registered in the register that the Superintendence takes into account; 10) Real estate located in Chile, whose income comes from its exploitation as a real estate business; Article 83 number 4a, of the General Law of Banks, and of the Article 21a of Decree No 251 of 1931, or others granted by entities authorized by law, which may also be granted with the resources of the fund itself; (h) of Decree Law No 3,500 of 1980; and shares of public limited companies whose sole purpose is the real estate business, with annual financial statements issued by external auditors, of those registered in the register which, in fact, bear the Superintendence. In any event, the latter companies may not have a ratio of more than 50% between their chargeable liabilities and their assets, nor may they invest in shares in other companies more than 10% of their total assets. For the purposes of this law, real estate business shall be understood as referring to the sale, leasing or leasing of real estate, and to the renovation, remodeling, construction and development of real estate, provided that these last activities are entrusted to third parties by means of the procedures and with the safeguards established by the Superintendence, by general rule. (b) Add to Article 5 (1), the following number: "13. Credit or collection costs, of those referred to in Article 135 of Law No 18.045, of the Stock Market." 4.-Replace Article 6 °, by the following: " Article 6 °.- investment funds shall be classified in the following types, in accordance with their investment objectives: (a) a movable investment fund, which shall have as its object the investment of its resources in the securities referred to in the numbers 1) to 7) of Article 5 (b) of the investment fund for the development of undertakings, which shall have as its object the investment of its resources in respect of the securities referred to in Article 5 (8) and in Article 5 (9) of the same Article, where the latter is authorised by the Superintendence; (c) a real estate investment fund, which shall have as its object the investment of its (a) the assets referred to in points (10), (11) and (12) of Article 5 (4), (7) and (9) of the Article 1, where the Superintendence is authorized in consideration of its relationship with the real estate business, and (d) the securitized credit investment fund, which shall be the object of the investment of its resources in portfolios of the referred to in Article 5 (13). Without prejudice to the foregoing, a fund other than the investment fund may maintain up to 30% of its investment in the instruments referred to in Article 5 (1) to (7) of this law. However, for the instruments of No 5), up to 20% of the assets of the instrument may be maintained. The limitation in the percentage shall not govern during the first two years of operation of the fund. However, it may only keep in these instruments up to 50% of its invested assets at the end of the first year of operation. This limitation shall also not apply to the investment of real estate investment funds, in the instruments of Article 5 (4) and (7), where such investment is authorised in accordance with the provisions of point (c). (5) of the same Article, in the case of investments in the securities referred to in Article 12 (12). "5.-Add to Article 7 °, the following final indent:" A fund may not invest in instruments issued or guaranteed by persons related to the administrator, nor may it carry out operations with persons who are responsible for this or those persons, where those claims are equal to or greater than the equivalent of 5,000 promotion units. For the purposes of this article, it shall not be considered a person related to the Administrator who acquires such a condition as a result of the investment in it of the resources of the fund. The regularisation of situations in which instruments of the fund, for reasons other than the administrator, incur such a condition, shall be governed by the provisions of Article 12. '; 6.-Reposition Article 8 °, by the following: " Article 8 °.-The investment of a fund in instruments issued or guaranteed by entities belonging to the same business group may not represent more than 25% of the fund's assets, with the exception of funds for investment in securitised loans. The investments of the funds defined in Article 6 shall also be subject to the following provisions: (a) "equity investment fund" means investment in instruments or securities issued or guaranteed by the same institution shall not exceed 10% of the total assets of the fund; (b) Investment fund for the development of enterprises: investment, direct and indirect, in instruments or securities issued or guaranteed by the same institution, may not exceed 20% of the total assets of the fund; (c) Real estate investment fund: investment in securities of an issuer, or in a specific root may not be directly or indirectly represent more than 20% of the fund's asset; if the root asset is part of a set or real estate complex, as defined by the Superintendence, this limit, for the total assets of the same set will be of 40% of the asset of the fund. It shall also not represent more than 10% of the fund's assets investment in mortgage mutual funds granted to the same debtor and its related persons, and (d) securitised credit investment fund: investment in credit securities of the same the debtor and its related persons who are part of a credit or collection portfolio, may not represent more than 10% of the fund's assets. The limitations referred to in points (a), (b) and (c) of this Article shall not apply during the first year of operation of the fund. "7.-Add to Article 9 ° the following final indent:" The limits referred to in the preceding subparagraph shall not apply to: investments made by a real estate investment fund in the companies referred to in Article 5 (12). '; 8.-Reposition in Article 11, the words "50" by the word "thirty". 9.-Replace Article 12, by the following: " Article 12.-excesses of investment arising from causes outside the management company and which in As a whole, they do not exceed 5% of the value of the fund, they can be maintained until the administrator gets the maximum recovery of the resources invested. Excesses exceeding 5% must be eliminated within three years. Investment funds for the development of enterprises shall not be required to dispose of excesses exceeding the limits of investment in shares of public limited liability companies, if the excess is the result of the opening of such a company, in which has invested the fund with at least one year prior. If the excess investment is due to causes attributable to the administrator, it must be disposed of within the following six months of production. "10.-Substitute Article 13, by the following:" Article 13.-The goods and securities integrating the The assets of the fund may not be subject to any charges and prohibitions of any kind, except in the case of ensuring the fund's own obligations or when, in the case of investment funds for the development of undertakings or investment property, the prohibitions result as a condition of the negotiation between the parties. In any event, such charges and prohibitions as well as the taxable liabilities held by the fund may not exceed 50% of their assets. ' 11.-Reposition Article 14, by the following: " Article 14. managers, their managers and their related persons may not acquire, lease, or use directly or through other natural or legal persons, securities or property of the investment funds they administer, or to dispose or lease of theirs to them. They will also not be able to lend money or provide guarantees to these funds, and vice versa, or to contract the construction, renovation, remodeling and development of real estate. This prohibition shall be exempt from transactions in securities issued in formal markets which have high liquidity, as determined by the Superintendency, by means of a general rule. The administrator, its related persons, shareholders and employees, may not individually or jointly control more than 25% of the shares of the fund it administers. The managing company shall ensure that the maximum percentage is not exceeded by the allocation of quotas carried out on its own, or by the other persons indicated, and if that is the case, the excess shall not have the right to vote in the assemblies and, In addition, the Superintendency will set the time limits for persons who exceed that percentage to transfer their quotas, up to that date. the party which permits compliance with it, without prejudice to the administrative penalties which the Superintendence may apply. The transactions of shares of the fund carried out by the aforementioned persons shall be reported in the same way as the transactions provided for in Article 12 of Law No 18,045 are communicated. The managing company and its related persons may acquire or dispose of the shares of the funds which it administers, after written communication of that intention to the Superintendence and to the stock exchanges in which the respective shares are coticen. The acquisition or disposal of the quotas may only be completed after 5 working days from the date on which the said communication is received. However, the Superintendence will be able to determine the maximum number of transactions that the managing company and its related persons will be able to carry out in a year. The management of investment funds which are subsidiary companies of banks may only invest in shares of investment funds for the development of companies which they administer. " 12.-Please introduce the following amendments to Article 15: (i) Delete the words "or subscriber" in the first indent, and (ii) replace in the third indent the word "equity" with "capital". 13.-Add to Article 17, the following points: " The price of the placement during the period of subscription will be updated daily in the form that is established in the respective issue. In any event, the price may not be lower than that resulting from dividing the daily value of the fund's assets by the number of contributions paid to the date, according to the rules of this law. The time limit for the placement, subscription and payment of the fees may not exceed 180 days, counted from the beginning of their placement. However, the time limit for the allocation of quotas should be initiated within the three-month period from the date of registration of the issue. During the time limit for placing the quotas, the resources to be provided to the fund may be invested only in the securities referred to in Article 5 (1) and (2), classified in category A at risk. " 14.-Amend Article 18 Next form: a) Replace, in its first paragraph, the word "one hundred" by "fifty", the first time it appears, and (b) Intercalase in the second paragraph, between the expression "produced deficit" and the point followed, a comma (,) and the following sentence: " except that the This period shall be extended by a further 180 days. ' 15.-Article 19 shall be replaced by the following: " Article 19.-The period of subscription and payment of quotas shall be terminated, no person may control, on its own or in an action agreement more than twenty-five percent of the fund's quotas. The managing company shall ensure that the maximum percentage is not exceeded by the allocation of quotas carried out on its own and by the other persons indicated, if this is the case, the Superintendence shall set the time limits for the persons who exceed those percentages shall proceed to the disposal of their quotas, up to that part which permits the fulfilment of the quotas, without prejudice to the penalties which the Superintendence may apply. The administrators may not accept requests for transfers which lead to excess over that percentage. In the event that the subscription and payment of quotas is failed, according to the conditions of the issue, the respective subscription and payment of the same will be without effect; however the above, the administrator will be able to have, for one time, a new 30 days time to try the placement again. The contributions which would have been made on a failed placement must be returned to the respective contributors, the quotas being valued at a value not less than that resulting from dividing the equity of the fund by the number of shares in fact paid, according to the rules of this law. In any event, this repayment period may not extend beyond 10 days of the end of the respective period of subscription of the quotas. If the time limit laid down in the second indent of Article 17 is met, and the period referred to in the preceding subparagraph, if appropriate, the number of shares in the fund shall be reduced to that of the amounts actually paid. " 16.- Article 21: (i) Remove the conjunction "and" at the end of point (c), and replace the comma (,) with a semicolon (;). (ii) Replace the final point (.) of point (d) by a semicolon (;), passing this letter to (f). (iii) Add the following points (d) and (e): " (d) To set the remuneration of the Supervisory Committee, if appropriate; (e) to appoint the external auditors of those registered in the Register annually, which in fact leads to the Superintendence, so that give an opinion on the substance, between a third party proposed by the Supervisory Committee, and '. 17.-Replaced in Article 22 (a), (b), (d) and (e), by the following: " (a) Approve the amendments proposed by the administrative company to the rules of procedure of the fund; (b) agree to replace the administrator at the request of the is, on the proposal of the Supervisory Committee, or in the event of its dissolution; (d) Agreed to the early dissolution of the fund and to appoint the liquidator, fixing its powers, duties and remuneration, and approve the final account at the end of the liquidation; (e) to determine, if appropriate, the conditions of the new or new emissions of the fund, fixing the amount to be issued, the time and the price of placement of these, and ". 18.-The last part of Article 24 is replaced by the following: " Agreements relating to the matters of the extraordinary assemblies provided for in Article 22 (a), (b), (d) and (e) shall require the assent of the two 19.-Substitute the first paragraph of Article 26, as follows: " Article 26.-The summons to the assembly of contributors shall be convened by means of a notice, published at least 3 times in days different, in the journal determined in the rules of procedure of the fund and in the absence of that, in the Official Journal, within 20 days prior to the date of its conclusion. The first notice may not be published less than 15 days before the assembly. The notice shall state the nature of the assembly, the place, date and time of its conclusion, and in the event of an extraordinary assembly, the matters to be dealt with in it. " 20.-Enter the following amendments to Article 28: (i) the first indent, the endpoint (.) by a comma (,) followed by the following expressions: " and remunerated from the fund. Such representatives may not be persons related to the management company of the fund. '. (ii) Remove the conjunction' and ' at the end of point (c), and replace the comma (,) with a semicolon (;). (iii) Replace the final point (.) of point (d) with a semicolon (;). (iv) Add the following points (e) and (f): " (e) Propose to the extraordinary assembly of contributors the replacement of the fund manager, and (f) propose to the extraordinary assembly of contributors the appointment of external auditors of the registered in the register which the Superintendence takes to the effect, in order to give an opinion on the substance. " 21.-Please introduce the following amendments to Article 29: i) Add at the end of the first indent, passing the point apart (.) to be followed (.), the following: " The same procedure will be followed when the replacement of the managing society is agreed, being able to remember in the same assembly that is continue to proceed with the administration of the fund until the transfer or dissolution of the fund is resolved. The appointment of another administrator to take over the administration, not requiring another assembly for the purpose, may also be agreed upon in that assembly. "(ii) Substitute in the second indent, the words" liquidation ", which appears twice by: "dissolution". 22.-Replace in the first paragraph of Article 31, the "80" by "30". Article 4.-Enter the following |! |amendments to Decree Law No. 3,500 of 1980: 1.-Article 23: a) Add after the fourth indent, the |! |following incissos: " In addition, the Administrators may constitute in |! |the country companies anonymous subsidiaries that complement their |! |spin, prior authorization of existence granted |! |by resolution dictated by the Superintendent, |! |whenever they provide services to natural persons or |! |legal persons operating abroad, or who invest |! |in Pension Fund Administrators or in |! |societies whose spin is related to materials |! |forevisionals, incorporated in other countries. It will be |! |understand that they complement the spin of a Administrator |! |the following activities that these subsidiary companies |! |perform in the field of retirement: administration of |! |portfolios of Pension Funds; custody of securities; |! contributions, contributions and deposits; |! |administration and payment of benefits; processing |! |computational information; lease and sale of |! |computer systems; training; administration |! |of individual accounts and of retirement savings; |! |promotion and sale of services and advice |! |forevisionals. The Superintendence will have to rule regarding |! |the application within 30 days after its |! |presentation. This deadline will be suspended if the |! | Superintendence, by written communication, |! |requires additional information, modification or |! |rectification of it and its antecedents, by no |! |conform to the provisions of this article. The |! |term will resume only when the applicant has |! |given written compliance to said tram te. In all |! |case, the Superintendence must issue its |! |pronouncement within a maximum period of six months. The defects or the attention of the |! |observations made in your case, the Superintendence |! |must decide regarding the application, |! |understanding that it authorizes the existence of the society |! |filial if it does not do so within the period mentioned in |! |the previous paragraph. When granting the requested authorization, the |! | Superintendence will exclusively ensure that the object |! |of the subsidiary company complies with the established |! |point fifth and that it does not cause injury or impairment |! |the good functioning of the Administrator. The total sum of the investment in this type of |! |societies may not be greater than the difference that |! |results between the total asset of the Administrator and its |! |operational asset, according to the values that are obtained |! |of the last financial statement that this has presented to |! |the Superintendence. The subsidiary companies will be subject to the |! |audit of the Superintendence regarding the |! |compliance with the requirements set forth in the paragraph |! |fifth. For these purposes, the Managing Administrator |! |must provide periodically to the |! | Superintendence, and in extraordinary form when it is |! |it requires, information about the subsidiary company and its |! |investments, without prejudice to the obligations of |! |deliver information, imposed on these societies by |! |other laws. Notwithstanding the above, the Administrators will be able to |! |invest in anonymous companies constituted as |! |securities deposit companies in the form and |! |conditions set forth in Title XIII of this |! |law. " b) Substitute the current paragraph fifth, which passes to |! |be thirteenth, for the following: " The Administrators will not be able to grant their |! |affiliates, under any circumstances, other pensions, |! |benefits or benefits as those mentioned in the law, |! |either directly or indirect, not yet title |! |free or otherwise. Without prejudice to the above, they may be able to process for their members the |! |obtention of the Recognition Bonus referred to in the |! |article 3 ° transitional, the Complement to which it refers |! |the article 4 ° transitory. " 2.-Add to the article 24, the following paragraph |! |final: " The investments and accreances of the Administrators |! |in companies that are persons related to them, and |! |the investments made according to the incisos fifth |! |and the 11th of article 23, will be excluded of the |! |calculation of the minimum assets required of those. " 3.-Add to Article 31, the next paragraph |! |final: " Together with the above, the Administrator |! |must send the affiliate information about the |! |profitability of the individual capitalization account and |! |of the Pension Fund fee, obtained by both |! |she as for the remaining Administrators, |! |during the periods you determine the |! | Superintendence. "4.-Intercalase in article 34, as a paragraph |! |second, the following:" Notwithstanding the foregoing paragraph, the |! |resources The Pension Fund will be able to |! |surrender in guarantee in the Chambers of Compensation, |! |only in order to comply with the |! |obligations emanating from the operations for hedges |! |risk referred to in the letters l) and n) of the |! |article 45, and provided that these meet the conditions |! |security to guard these titles, and others |! |conditions that the Superintendence determines to the effect |! |by general rules. In this case, |! |such resources may be foreclosed only to make |! |effective the guarantees constituted to channel the |! |obligations mentioned above. "5.-Replace the second paragraph of article 35, |! |by the following:" The value of the quota will be determined daily |! |on the basis of the economic value or the market of the |! |investments. This value will be reported by the |! | Superintendence, the one that will be common for all |! | Pension Funds. The Superintendence will establish, |! |by rules of general character, the sources |! |officers for the valuation of the instruments in which |! |is authorized the investment of the resources of the Fund |! |of Pensions, the methods of valuation of these and |! |will determine the amount of time to review this |! |valuation. "6.-Reposition in the second paragraph of the article |! | 36, the second sentence for the following:" In any case, the ratio above mentioned no |! |may exceed the result of the division of two by the |! |number of existing Funds, being fourteen the number |! |maximum Funds to be considered for calculating such a |! |ratio. "7.-Substitute Article 38, by the following:" Article 38.-In order to ensure the |! |profitability referred to in the previous article, |! |there will be a " Fluctuation of Profitability ", |! |which will be part of the Fund, and the" Lace "of ownership of |! |the Administrator referred to in Article 40, which must |! |remain invested in quotas of the same Fund." 8.-Replace the first and second incissos of the |! |article 40, by the following: " Article 40.-The Administrator shall maintain a |! |asset named Lace, equivalent to a one by |!% from the Fund. This Lace, which shall be invested in Fund shares, |! |shall be intended to respond to the minimum return to |! |referred to in Article 37. " 9.-To Article 44: a) Replace the second to the seventh |! |inclusive, for the following: The Central Bank of Chile will determine the rates |! |that will charge for the different tasks that it means to you |! |the maintenance of the custody. The Superintendence will establish and communicate to the |! | Central Bank of Chile or the deposit companies of |! |securities, at least once a week, the value of |! |the portfolio that each Administrator must have in |! |deposit in each of them, from deal with the |! |first. The depositary will not be able to authorize the withdrawal of the |! |titles deposited in custody, if with this it leaves |! |to be satisfied the minimum proportion to that it alludes the paragraph |! |first, fixed by the Superintendence. In the event of |! |that this will occur, the Administrator must do |! |the necessary steps that allow it to comply with the |! |respective operation on the formal secondary market, a |! no later than the working day following the date on which |! |matched their compliance. In any case, for the purposes of the provisions in the |! |eighth indent, the occurrence of the above mentioned fact |! |will be considered as an equivalent custody deficit |! |which would have occurred if the |! |respective instrument had been withdrawn. custody, corresponding, |! |therefore apply the penalties set forth in the |! |cited paragraph. The titles in which the Fund's investments are |! |and which are not in custody as established |! |in the first indent, must be issued or transferred |! |with the clause "for the Pension Fund", preceded |! |of the name of the Corresponding Administrator. Equal |! |constancy shall be required in the systems to which it is |! |refers to the final paragraph of article 12 of the law N ° |! | 18,046. The disposal or transfer of a title of ownership of |! |a Fund, which is not in custody, only |! |can be done by the Administrator by means of the |! |delivery of the respective title and its endorsement, and without these |! |it will produce no effect. If the title is |! |nominative, it must also be notified to the issuer. "(b) Replace in the eighth indent, the phrase |! |" greater than the equivalent of the whole "per inferior to |! |ten percent and not more than one hundred percent." (c) Add to the last point, between the phrase |! | "Fund investment" and "the Administrator", the |! |following sentence: "that is not in custody,", and |! |d) Add the following final indent: " The constitution in guarantee in favor of the Chambers |! |of Compensation, for risk hedging operations |! |financial of a title of ownership of a Fund that does not |! |be in custody, must be effected by the |! | Administrator with the same formalities as this |! |article requires for its disposal or disposal. "10.-Substitute Article 45, by the following:" Article 45.-Investments that are With |! |resources of a Pension Fund will have as unique |! |objectives obtaining an adequate profitability and |! |security. Any other objective that is intended to be given to |! |such investments will be considered contrary to the |! |interests of the affiliates and will constitute a |! |gross non-compliance with the obligations of the |! | Administrators. The resources of the Pension Fund, without prejudice |! |of the current account deposits referred to in the |! |article 46, shall be invested in: a) Titles issued by the General Treasury of the |! | Republic or by the Central Bank of Chile; letters of |! |credit issued by the Regional Services and |! | Metropolitan Housing and Urbanization; Bonds of |! | Recognition issued by the Institute of |! | Normalization or other institutions of |! | Forecast, and other securities issued or guaranteed by |! |the State of Chile; b) Term deposits; bonds, and other securities |! |representative of captions, issued by |! |financial institutions; (c) Titles guaranteed by institutions |! |financial institutions; (d) (e) Bonds of public and private companies; (f) Bonds of public and private companies redeemable |! |by shares, as referred to in Article 121 of the Act |! | N ° 18.045; g) Shares of public limited liability companies (h) Shares in real estate companies |! |open. During the first five years of existence, |! |these societies will not be applied the reduction of |! |the investment limits set out in article 47, 47 |! |bis. They shall not be considered as a -the effects of |! |determine the limits referred to in points |! |fifth and sixth of the same article, nor shall they be applied to the |! |provided in points (b), (c) and (d) of Article 112 and (b) of the first subparagraph of (b) of the first subparagraph. Article 155. After that period, they will be |! fully applicable the provisions of the articles |! | 47a, 112 and 155. (i) Real estate investment funds to which |! |refers to law N ° 18.815; j) quotas of development investment funds of |! |undertakings referred to in law No 18.815; k) Effects of trade issued by companies |! |public and private, which correspond to promissory notes or other |! |credit or investment securities, with maturity date |! |not greater than one year from their registration in the Register |! |securities, non-renewable; l) Credit titles, securities or effects of |! |trade, issued or guaranteed by States |! |foreigners, central banks or banking entities |! |foreign or international; shares and bonds issued |! |by foreign companies, and participation fees |! |issued by Mutual Funds and Investment Funds |! | Foreign, approved by the |! | Risk Management Commission, which is usually transacted in the markets |! |international and that meet at least with the |! |features that I pointed out the Regulation. Also, the |! | Administrators with resources from the Pension Funds |! |will be able to carry out operations that have as unique |! |objective the coverage of financial risks of the |! |instruments mentioned in this letter, referring to |! fluctuations between foreign currencies or |! |risk of interest rates in the same currency |! |foreign, all of which shall be effected in accordance with |! |the conditions laid down in that Regulation; (m) Quotas of investment funds |! |refers to law N ° 18.815; n) Quotas of investment funds of credits |! |securitized to that In the case of the case-law, it is not possible to apply the rules of the Court of Law in the case of the Court of State in the case of the Court of State in which the Court of State held that the Court of comply with the characteristics indicated by rules |! |of a general character that will dictate the Superintendence. For the purposes of this article, it is |! |will understand by guaranteed instrument, the one in which the |! |guarantor must answer, at least in subsidiary form, to |! |the respective obligation in the same terms as the |! |principal obliged. The Pension Funds will only be able to acquire the |! |instruments mentioned in the above letters a |! once approved by the Risk Classifying Commission, |! |according to the rules set forth in Title XI of |! |this law. However, the instruments mentioned in the letter a) |! |above will not require prior approval for your |! |acquisition. In turn, they will be able to acquire the |! |instruments mentioned in the letter g), that they do not require |! |of the approval of the Classification of Risk Commission, |! |whenever its emitters present results |! |operational and total positive in their states |! |financial statements of the last two years, and that in |! |that period have not occurred the situations |! |marked in numbers 2) and 4) of article 57 of the |! |law N ° 18,046. The financial institutions referred to in the |! |letters b), c) and d) must be legally constituted |! |in Chile or authorized to operate in the country; the |! |companies referred to in the letters e), f), g), h) and k), |! |as also the Funds In the |! |letters i), j), m) and n), they must be constituted |! |legally in Chile. The instruments of points (b) and (c) which are |! |seriates and those referred to in (e), (f), (g), (h), (c), (k), (m) and (n) shall be registered, in accordance with |! |with the law N ° 18.045, in the Register which for the effect |! |carry the Superintendence Securities and Insurance or the |! | Banking and Financial Institutions, as applicable. In case an affiliate is penalized in advance |! |opting for the scheduled retirement pension mode |! |or temporary rent with deferred lifetime income, the |! | Administrator will not be able to acquire with the resources of the |! | Pension Fund that manages the |! | Bonus that belongs to that affiliate. Also |! |may in such cases, acquire Recognition Bonds |! |they belong to an Administrator who is |! |person related to the acquiring Administrator. If |! |the affiliate opts for income pension mode |! |life or temporary income with deferred life income, |! |the Administrators will not be able to acquire Bonds of |! | Recognition of affiliates who have contracted said |! |pension modalities with an Insurance Company of |! |life that is related to the Administrator |! |acquirer. The above restrictions will be applied |! |for the first transaction of the Recognition Bonus, |! |and the membership quality will be measured at the time of |! |the acquisition on the secondary market |! |formal. The limit for the sum of investments in the |! |instruments referred to in points (f), (g), (h), (i), (j), (d), (m) and (n), as well as those of (l), when they are |! |the capital representative instruments; and in |! |points (b), (c), (d), (e) and k), classified in |! |catergories A or BBB and at levels N-2 or N-3 of |! |risk, together, may not exceed seventy per |!% of the value of the Fund. The limit for the sum of the investments |! |marked in the number ... preceding plus the sum of the |! |instruments of debt classified in category BBB and in |! |level N-3 of risk and of the instruments indicated in |! |the letter f), cannot exceed Fifty-five percent of the Fund's value. ... The sum of the investments noted in the |! |number ... precedent plus the sum of the |! bonuses backed by mortgage mutual-backed companies or contracts |! |real estate lease with commitment to purchase, no |! |may exceed thirty per percent of the value of the |! | Fund. The instruments listed below |! |will have a particular maximum investment limit, which |! |will set the Central Bank of Chile within the ranges |! |which are indicated in the following incisos. The sum of the bonds and trade effects issued |! |by anonymous companies whose exclusive object is the |! |bond issue or trading effects backed by |! |transferable credit titles, will have a limit |! |maximum investment according to the type of credit title |! |that guarantees the issue. This limit may not be |! |less than ten per cent or more than twenty per |!% of the value of the Fund. The limit for the sum of investments in |! |shares issued by banking, financial, |! |leasing companies and in general by all those whose |! |indebtedness is greater than five times its equity, |! |except for companies (l), |! |may not be less than five per cent and not more than 10 per cent of the value of the Fund. The sum of the instruments referred to in (j) |! |shall have a maximum investment limit which may not be |! |less than two per cent or exceed five per |!% of the value of the Fund. The sum of the instruments mentioned in the letter g) |! |that they have the lowest factor of liquidity to which the |! |article 47, as determined by the Central Bank of |! | Chile, will have an investment limit that will not be able to be |! 1% or more than 10% of the value of the Fund. The maximum investment limit for the instruments |! |mentioned in the letter g), that do not require of the |! |approval of the Risk Classifying Commission and that |! |comply with the requirements that are set forth in the |! |paragraph fourth of this article, will be one percent |! |the value of the Fund. For each type of instrument pointed out in the |! |letter ... the maximum investment limit may not be |! |less than one percent or exceed five per |!% of the value of the Fund. The sum of the instruments mentioned in the letters |! |e), f), g) and k), whose issuer has less than three years of |! |operation, will have an investment limit that will not be able to |! |be less than five percent of the value of the Fund nor |! |exceed ten percent. the value of the same. The sum of the instruments mentioned in the letters |! |b), c), d), e), f) and k), classified in category BBB and |! |at N-3 level of risk, shall have an investment limit |! |which shall not be less than five per cent, nor |! |greater than ten per cent of the value of the Fund. However, the sum of the instruments mentioned in |! |the incisos thirteenth to the previous eighteenth and |! |the instruments mentioned in the letters i) and m) of the |! |article 45, will be in restricted set to a limit |! may be less than fifteen |! |percent or more than thirty percent of the value |! |of the Fund. In turn, the sum of the instruments mentioned in |! |the letters b), c), d), e), f), and k), classified in |! |catergories A or BBB and in the levels N-2 or N-3 of |! |risk, will have a maximum investment limit that no |! |may exceed a figure determined by the Bank |! | Central Chile within a range of twenty to one |! |thirty-five percent of the value of the Fund. With |! |all, the sum of the investments in the instruments |! |mentioned in the letters b), c) and d), classified in |! |categories A or BBB and in the levels N-2 or N-3 of risk, |! |cannot exceed in aggregate of a certain figure |! |by the Bank Central Chile within a range of a |! |fifteen to twenty percent of the value of the Fund. Equal |! |restriction will apply to the sum of the investments in |! |the instruments mentioned in the letters e), f) and k), |! |classified into categories A or BBB and at levels N-2 |! |or N-3 of risk. If as a result of the exercise of a |! |conversion of bonds redeemable by shares, is |! |exceeded the maximum investment limits by |! |isntrumento, the Fund will have a term of three years for |! |conform to the limits set forth in this article. The sum of the investments in instruments |! |specific of each type of those mentioned in the |! |letter n), will be able to be incorporated into the global limits by |! |instrument established in this article. This |! |incorporation will be determined by the Central Bank of |! | Chile. ". 11.-Replace Article 45a, by the following |! |:" Article 45a.-The resources of the Funds of |! | Pensions may not be invested in actions of |! | Administrators Pension Funds, of Companies of |! | Insurance, of Mutual Fund Administrators, of |! | Administrators of Investment Funds, of bags of |! |securities, of broker companies, of |! |agents of securities, of advisory societies |! |financial, no sports, educational |! |and charity exempted from provide information of |! |agreement to the provisions of the third article of the law |! | No. 18,045. They may also not be invested in shares |! |issued by public limited companies as referred to in Article 45 (g) and (h) of Article 45, where the asset |! |accounting officer of the company calculated on the basis |! |of the individual balance sheet represents, as proportion of their |! |active, less than forty percent. In turn, the resources of the Pension Funds will not be |! |may be invested in shares of public limited companies |! |real estate, as mentioned in the letter h) of the |! |article 45, which have more than one year since their |! |constitution, whose assets invested according to |! |the set in the letters j) and k) of article 98 |! |represent, in aggregate, less than seventy percent |! |of the total asset, considering the average of the |! |last twelve months. However, during the period |! |corresponding to the first six months of the second |! |year of operation of the society, this requirement is |! |measure only based on the months elapsed up to |! |that moment, counted from the seventh month from your |! |constitution. The Administrators must attend the meetings |! |of the shareholders of the companies mentioned in the letters |! |g) and h) of the article 45, the boards of holders of |! |bonds and the assemblies of contributors of the Funds of the |! | letters i), j), m) and n) of the |! |article 45, whose shares, bonds or quotas have been |! |acquired with resources from the respective Fund, |! |represented by authorized agents appointed by their |! |directory, not being able to act with |! |other powers which would have been conferred upon them. |! | In such meetings and assemblies must always rule |! |regarding the agreements that are adopted, leaving |! |constancy of their votes in the corresponding minutes. |! | The contraventions of the Administrators to these |! |provisions will be sanctioned in the prescribed form in |! |the Article 94 number 8. The Superintendence will determine by means of rules of |! |general character, the cases in which the Administrators |! |may be exempted from the fulfillment of the provisions in the |! |previous paragraph. " 12.-Replace the first sentence of the paragraph |! |third of the Article 46 by the following: " From such accounts only turns may be effected |! |intended for the acquisition of titles for the Fund, to the |! |fulfillment of the obligations emanating from the |! |risk hedging operations noted in the letter |! |n) Article 45, and payment of benefits, |! |fees, transfers and transfers 13.-Reposition Article 47, by the following: " Article 47.-Without prejudice to the provisions of the |! |article 45, the sum of deposits in accounts |! |current and term and investments with resources of the |! | Fund in debt securities issued by a bank or |! |financial institution and its subsidiaries or guaranteed by |! |they, may not exceed the lesser amount between the |! |product of a single multiple for all |! |financial institutions fixed by the Bank Central |! | Chile and the assets of the bank or financial institution of |! |in question; and the product Ten percent of the |! |total value of the Pension Fund and the risk factor |! |weighted average. However, when these |! |instruments have an expiration time of less than |! |one year, their maximum inverison limit will not exceed |! |of the smallest amount between fifty percent of the |! |single multiple noted above and the heritage |! |from the bank or financial institution concerned; and the |! |product of ten per cent of the total value of the Fund |! |from Pensions and the weighted average risk factor. |! | The value of the single multiple alluded will vary between 0.5 and |! | 1.5. The sum of direct and indirect investments in |! |shares, deposits in current and term accounts and |! |other debt securities issued by the same bank or |! |financial institution or guaranteed by them, no |! |may represent more than seven percent percent of the value |! |total of the respective Fund. The sum of the investments with Fund resources in |! |debt securities issued or guaranteed by companies |! |whose turn is to perform leasing operations, will not be able to |! |exceed the lesser amount between the product of a |! |multiple single for these companies set by the Bank |! | Chile's Central and the company's assets; and the |! |product of seven percent of the total value of the Fund |! |of Pensions and the weighted average risk factor. |! | The value of the single multiple alluded will vary between 0.4 and |! | 1. Investment in trade effects will not exceed |! |of twenty per cent of the series. Similarly, investments with resources of a |! | Fund in bonds of the same series, will not exceed the |! |twenty percent of the series. In no case will investments be made with |! |resources of a Pension Fund in instruments |! |classified in the catergories BB, B, C, D or E and in the |! |levels N-4 or N-5, at risk referred to in the |! |article 105. Direct investments with resources of a Fund of |! | Pensions in actions of a society of the indicated |! |in the letter g) of article 45, they will not be able to exceed the |! |amount less than seven percent of the total of |! |the subscribed shares of that society; and the product |! |of the concentration factor, five percent of the |! |value of the Fund, the liquidity factor and the factor of |! |active accounting asset. When shares are subscribed |! |of a new issue, the maximum amount to subscribe does not |! |may exceed twenty percent of the issue. The sum of direct and indirect investment in |! |shares of a company as mentioned in point (g) |! |of Article 45, may not be higher than the product of the |! |concentration factor, five per cent of the value |! |of the fund, the factor of liquidity and the factor of |! |accounting asset purged. Direct investments with resources of a Fund of |! | Pensions in actions of a society of the indicated |! |in point (g) of article 45, that do not require of the |! |approval of the Commission of the Classification of Risk and that |! requirements that the |! | Superintendence by means of rules of general character, no |! |may exceed the lesser amount among the seven by |!% of the total of the subscribed shares of said |! |sociedad; and 0.15 percent of the value of the Fund. |! | When shares of a new issue are subscribed, the |! |maximum amount to subscribe, will not exceed twenty |! |percent of the issue. The sum of the direct and indirect investment in |! |shares of a company referred to in the above paragraph |! |, may not be greater than 0.15 percent of the |! |value of the Fund. Direct investments with resources of a Fund in |! |shares of a company as mentioned in point (h) |! |of article 45, may not exceed the lesser quantity |! |between twenty percent of the total of the shares |! society; and the product of the |! |concentration factor, five percent of the total value of the |! |respective Fund and the accounting asset factor |! |debugged. In addition, the investment limit in |! |shares a new issue may not exceed twenty percent |! |of the same. The sum of direct and indirect investment in |! |shares of a company as referred to in point (h) |! |of Article 45, may not exceed the product of the |! |concentration factor, five per cent of the value |! |total of the respective Fund and the asset factor |! |bookkeeper purged. The sum of the direct investment in shares of a |! |bank or financial company may not exceed the |! |amount less than two to half percent of the total |! |of the subscribed shares of such a company; and the |! |factor product concentration, the two and a half by |!% of the value of the Fund, the liquidity factor and the |! |accounting asset factor purged. The sum of the direct and indirect investment in |! |shares of a company mentioned in the paragraph |! |precedent, may not exceed the product of the factor |! |of concentration, two and a half percent of the value |! |of the Fund, the factor of liquidity and the asset factor |! |bookkeeper purged. The value of the liquidity factor, which will vary between |! | 0.2 and 1, must be set its maximum value in 1, will be |! |determined by the Central Bank of Chile for which |! |will establish corresponding equivalences with the |! |liquidity index. This index will be calculated |! |quarterly by the Superintendency of Values and |! | Insurance, depending on the percentage of working days |! |stock in which the stock has been transacted in the |! | Stock Exchanges of the country, in the previous twelve months |! |to the date of the calculation, and of those transacted amounts |! |daily of the aforementioned instrument. For this effect, the |! | Superintendence of Values and Insurance will determine a |! |minimum daily transaction amount whose value will not be able to |! |be less than the equivalent of 80 promotion units nor |! |higher than the equivalent of 200 promotion units. The depurated accounting asset factor mentioned in |! |the preceding incites will have the following values: 1 If the ratio representing the accounting asset |! |purged on the total asset, measured on the balance |! |individual of the company broadcaster, is higher than the |! |eighty percent; 0.8 If the ratio representing the asset |! |bookkeeper purged over the total asset, measured over the |! |individual account of the issuing company, is equal to or |! |higher than sixty percent and less or equal to |! |eighty percent, and 0.6 If the ratio representing the asset |! |accounting on the total asset, measured on the |! |individual balance of the broadcaster, is equal to or |! |higher than forty per cent and less than sixty per |! |cent. In any case, if the accounting asset factor |! |purged resulting from the provisions contained in |! |the statutes of the issuing company is less than the |! |determined according to the above, it is |! |will apply this last value to effects of the |! |determination of the maximum investment limits. The concentration factor referred to in the |! |incisos above, will be determined according to the |! |degree of maximum concentration of the allowed property |! |by the permanent rules of the statutes of the |! |society in question and the hold of the company |! |the provisions of Title XII of this law. In this way, the concentration factor will be: 1 for those societies in which no person |! |directly or through other persons |! |related can concentrate more than thirty-two |! |percent of the capital with voting rights, and are |! |subject to the provisions of Title XII; 0.8 for those companies in which the concentration |! |maximum allowed is greater than thirty-two percent |! |and less than fifty percent of the capital with the right to |! |vote, and are subject to Title XII; 0.6 for those companies in which the concentration |! |maximum allowed is equal to or greater than fifty per |!% and less than or equal to sixty-five percent of the |! |capital with voting rights, and are subject to |! |provided in Title XII; 0.6 for those societies in which no person |! directly or by intermediate of other persons |! |related concentrate more than thirty-two per |!% of the capital with voting rights, and are not |! |subject to the provisions of Title XII; 0.5 for those societies in which the concentration |! |of the property in a person, directly or by |! |intermediate of other related persons, be superior |! |to thirty-two percent and less than fifty per |!% of the capital with voting rights, and are not |! |subject to the provisions of Title XII; 0.4 for those societies in which the concentration |! |of the property in a person, directly or by |! of other related persons, be equal to or |! |higher than fifty percent and less than or equal to |! |sixty-five percent of the capital entitled to |! |vote, and are not subject to the provisions of the Title |! | XII, and 0.3 for those companies in which some person |! |directly or through other people |! |related concenter more than one Sixty-five per |!% of the capital with voting rights, and are not |! |subject to the provisions of Title XII; In the case of open anonymous companies |! |mentioned in the second paragraph of Article 112, the |! |concentration factor is will determine only on the basis of the |! |concentration allowed to shareholders other than the |! | Fisco. Investments with resources from a Fund of |! | Pensions in a fee from an Investment Fund |! |real estate, from an Investment Fund Furniture, from a |! | Business Development Investment Fund or from a |! | Credit Investment Fund securitized, will not be able to |! |exceed the amount less than twenty percent |! |of the subscribed quotas of the respective Fund of |! |investment and five percent of the value of the Fund of |! | Pensions. When subscribing to a new |! |issue, the maximum amount to subscribe will not exceed |! |of twenty percent of the issue. Investments with resources from a Fund of |! | Pensions in the instruments mentioned in point (l) |! |of Article 45, of the same issuer, may not exceed |! |of the half per cent of the value of the Fund. However |! |above, in the event that the issuer corresponds to a |! | State or a foreign central bank the limit |! |previously noted may not exceed two per |!% of the value of the Fund. Likewise, in the case of the |! |investment in participation fees issued by funds |! |mutual funds and foreign investment funds the limit |! |maximum already noted will be one percent of the value |! |from the Fund. In turn, the sum of the operations for |! |risk coverage on foreign assets made |! |with the resources of a Pension Fund, will not be able to |! |exceed the value of the investment maintained by that |! | Fund in the foreign asset object of the coverage. The sum of the investments in bonds and effects of |! |trade, issued or guaranteed by the same |! |society, may not exceed the lesser amount between: a) The product of the average risk factor |! |weighted and seven percent of the value of the Fund, and |! |b) A single multiple that will fix the Central Bank of |! | Chile and the value of the consolidated net book asset of |! |the parent company. The value of this single multiple |! |will vary between 0.08 and 0.12. In no case will the Central Bank of Chile be able to fix |! |a single multiple less than the value in force to date |! |of modification of this, for cases to which it is |! |refer the incisos first, twenty third and |! |vigesimuarto. Without prejudice to the above, the sum of the investments in bonds and |! |trade effects issued by public limited companies |! |whose exclusive object is the issuance of bonds or effects |! |of securities backed by securities credit |! |transferable, may not exceed the minor amount |! |between: a) The average risk factor product |! |weighted and seven percent of the value of the Fund, and B) Twenty percent of the respective series. The sum of the investments in bonds and effects of |! |trade issued or guaranteed by a company that |! |has less than three years of operation, will not exceed |! |of the product of the weighted average risk factor and |! |the three percent of the value of the Fund, not twenty |! |percent of the respective series. Once the |! |company meets three years of operation, they will be applied |! |the limits corresponding to the other societies |! |bond broadcasters and trade effects. The sum of the investments in bonds and effects of |! |trade, issued or guaranteed by a company, and of |! |the direct and indirect investment in shares of a |! |same society, will not exceed seven percent |! |of the value of the Fund. Direct and indirect investment in shares and the |! |investment in bonds and trade effects issued or |! |guaranteed by companies belonging to the same |! |business group, of those defined in Article 98 (l) |! exceed fifteen percent |! |the value of the Fund. If as a result of the exercise of an option of |! |conversion of bonds redeemable by shares, are |! |exceed the individual investment limits in the |! |issuer, the Fund will have a term of three years for |! |conform to the limits set in this article. The limits of investment by issuer for the |! |instruments of the letter ... of article 45, |! |will correspond to the limits that are necessary to assimilate the |! |respective instrument to one of those whose limit already |! |is defined in the law. The respective |! |assimilation and the limit to apply will be determined by |! |the Central Bank of Chile. Also, if there was no |! |instrument of the same characteristics for the |! |effects of setting the limits per issuer, the limit |! |respective will be determined by the Central Bank of |! | Chile. The sum of the operations of those mentioned in |! |the letter n) of the article 45, which hold identical |! |financial characteristics in terms of time, currency and |! |type of instrument, they will not be able to exceed ten by |! operations that are |! |existing in the formal secondary markets. The |! |referred features will be defined by rules |! |of a general character that will dictate the |! | Superintendence. The respective limit will be determined |! |by the Central Bank of Chile. Also, the sum of the operations for coverage |! |of financial risk made with resources of a Fund |! |of Pensions, calculated according to the active object of |! |said operation and measure in net terms, will not be able to |! |exceed the value of the investment maintained by the Fund |! |in the instrument covered by the coverage. In case, for any cause, an investment |! |made with Pension Fund resources exceeds |! |the limits or no longer meet the requirements |! |set for its provenance, the excess must be |! |counted in an account special on the Fund |! |affected and the corresponding Administrator will not be able to |! |make new investments in the same instruments |! |as long as such situation is maintained. The above is without |! |prejudice to the Superintendent's faculty for |! |apply the administrative penalties that proceed. The excesses of investment that together do not exceed |! |five percent of the value of the Pension Fund, |! |can be maintained until the moment the |! | Administrator considers to obtain the maximum recovery |! |the resources invested. The excesses that exceed the |! |five percent of the value of the Fund, must be removed |! |within the three-year term counted from the date in |! |that occurred, being able the Administrator |! |freely select the instruments that will be used. When an investment limit is exceeded by |! |issuer in more than twenty percent of the maximum limit |! |allowed, the excess over this percentage must |! |be removed within the three-year term counted from |! |the date it occurred. The powers that this law give to the |! | Central Bank of Chile, will be exercised by this previous |! |report of the Superintendence for each case |! |particular. The Superintendence of Banks and Institutions |! | Financials will provide quarterly to the |! | Superintendence of Funds Administrators of |! | Pensions, calculation of total assets, total of |! |liabilities, equity, accounting asset purged, asset |! |consolidated net accounting, number of shares subscribed |! |and the value of the concentration factor of each |! |financial institution or subsidiary of these, that are |! |subject to its audit. Also, it will provide |! |semestrally the payroll of the companies to which it is |! |referred to in Article 45 (g), that do not require of |! |the approval of the Risk Classifying Commission, |! |that they comply with the requirements that are established in the | Article 45 (4), fourth indent. The Superintendency of Securities and Insurance will have to |! |provide quarterly to the Supoerintrend of |! | Pension Fund Administrators the calculation of the |! total assets, total liabilities, assets, assets, assets |! Consolidated net accounting, |! |liquidity index, number of shares subscribed, number |! |of subscribed shares of real estate investment funds, |! |of investment funds of business development, of |! | Investment funds and of funds investment |! |of securitized credits and the value of the factor of |! |concentration, information to be provided by |! |each bond or trading company, |! |as well as for each open limited company or Fund |! |investment, whose shares or shares may be |! |acquired with the resources of the Funds Pensions. |! | Also provide semestrally the payroll of the |! |societies referred to in point (g) of Article 45, |! |that do not require the approval of the Commission |! | Risk Classifier, that meet the requirements |! |that the effect is set out in the fourth indent of the |! |article 45. ' 14.-Add the following article 47a: " Article 47a.-The Pension Fund may only |! |invest in shares issued by companies that are |! |persons related to the Administrator, when those |! |shares have a liquidity factor equal to one and |! |whenever the transaction is performed on the market |! |secondary formal. This liquidity restriction also |! |will be applied when the acquisition originates from the |! |exercise of the right of your preferred subscription of |! |shares in companies that are persons related to |! |the Administrator and in which the Fund is already |! |shareholder. All in all, the maximum investment limit |! |set out in Article 47, for a |! | Pension Fund in shares of a company of the above mentioned |! |in points (g) and (h) of Article 45 and shares of |! |issued banking or financial corporations by companies |! |that they are persons related to the Administrator, in |! |as regards the percentage share of the society, |! |will be of two percent, five percent and a half percent, respectively, of the total of shares subscribed |! | such a company. In turn, they can only be purchased |! |shares issued by companies that are people |! |related to the Administrator, when they are counted |! |with the approval of the |! For the purposes of the restrictions contained in |! |this subsection, the investments of a |! | Pension Fund in shares of the companies |! |real estate referred to in point (h) of the article |! | 45, shall be understood not to create the condition of person related to the |! |respective Administrator. The Pension Fund will not be able to hold quotas that |! |represent more than ten percent of a Fund of |! |investment, when it holds securities of an issuer in which |! |the Administrator or its related persons are |! |persons with interest, those defined in Article 98 (m) (m) (m). You will also not be able to own quotas that |! |represent more than five percent of the |! |shares issued by an investment fund, when the |! | Administrator is a person related to the |! |investment fund managers. The Pension Fund will only be able to acquire |! |debt instruments issued or guaranteed by |! |persons related to the administrator when they are |! |rank in AAA or AA categories or at N-1 level of |! |risk. The Fund's investment will not exceed the |! |five percent of the issue. In operations that |! |are performed through the formal primary market, the |! | Fund whose Administrator is related to the |! |issuer, will not be able to acquire the instrument if its price is |! |higher than the weighted average price of the placement, |! |once excluded the maximum and minimum price of |! |award. The maximum price will be understood, the price |! |weighted average paid for five percent of the |! |total value of the highest price of the placement. In |! |all case, the Fund will not be able to acquire more than twenty |! |percent of the daily placement of the |! |instrument. The resources of the Pension Funds will not be able to |! |be invested in titles issued or guaranteed by the |! | Administrator of the respective Fund. The individual limits for the acquisition of |! |debt securities relating to the purged accounting asset and |! |the issuer's consolidated net accounting asset, is |! |will reduce to three percent when the instrument is |! |issued by persons related to the Administrator. The maximum investment limit for a |! | Pension Fund in instruments issued or guaranteed by |! |each company related to the Administrator, no |! |may exceed a half percent of the value of the Pension Fund |! The sum of the investments made in form |! |direct and indirect in instruments issued or |! |guaranteed by all the societies that are |! |related to the Administrator, will not exceed the |! |five percent of the value of the Fund. When two or more Pension Funds are |! |managed by companies that are persons |! |related to each other, the limits |! |mentioned in Article 47 are understood to govern for the sum of the |! |investments of all the Funds administered by |! |companies that are related persons. Without prejudice |! |of the above, you will not be able to invest the resources of a |! | Fund in shares of a shareholder society, either in |! |direct or indirect form, in more than five percent |! |of the total shares subscribed by the Administrator of |! |that Fund. ". 15.-Article 48: (a) Replace the second indent by the following: " Without prejudice to the provisions of paragraph |! |above, with the resources of the Pension Funds |! |may acquire the instruments referred to in |! |( a), (e), (f), (g), (h), (i), (j), (k), (m) and (n) and the |! |serials falling within (b) and (c) of the article |! | 45, in the formal primary market defined in the |! |this article, when these instruments are not |! |previously transacted. Also, the |! |subscription and payment of investment funds to |! |that refer to points (i), (j), (m) and (n) of the article |! | 45, may be made directly to the broadcaster |! |the subscription price of the issue, subject to |! |the (b) Intercalase in the third indent between the phrases |! | "financial institutions" and "which would not have been |! previously transacted", the "national" word. c) Add the following final paragraph to point (b) |! |of the fourth indent: " For the case of transactions of instruments |! |mentioned in point (l) of Article 45, the definition |! |of the Formal Secondary Market, shall be that established |! 16.-Substitute Article 49, by the following: " Article 49.-The Central Bank of Chile may |! |establish, by means of general rules, limits |! |maximum investment maximums to which you set a |! |conformity to the rules laid down in Articles |! | 45 and 47, for the first 12 months of operation of a |! | Pension Fund, counted from the date of the |! |resolution authorizing existence and approves the |! |statutes of the Administrator. ". 17.-Article 94: a) Replace the first paragraph of the number 8, by |! |the following: " 8.-Apply the penalties and arrange for revocation |! |authorization of existence in accordance with the law, |! |of the Administrators of Pension Funds, and of their |! |societies subsidiaries, or the disposal of investments |! |made in or through these, when they do not comply with |! |the provisions of the fifth paragraph of Article 23, |! |by founded resolutions, which must be |! |notified by a minister of faith. " b) Intercalase in the second paragraph of the number 8, |! |between the words "affected" and "may", the phrase "or your |! |subsidiary companies", and replace the word "may" |! |by "may". (c) To replace the number 10, by the following: "10.-To carry out the necessary technical studies that |! |tend to the development and strengthening of the System of |! | Pensions." 18.-Article 98: a) Replace letters (b), (d), (e), (f), (g) and (j), |! |by the following: " b) Estimated potential loss: Aquella that results |! |to consider the amounts invested by the company in |! |instruments whose classification is category BB, B, C, |! | D or E or levels N-4 or N-5 of risk, in shares of |! |societies and in non-classified instruments. In case of |! |investments in instruments classified into categories A |! |or BBB or at N-2 or N-3 levels of risk, will be |! |consider within the estimated potential loss a |! |sixty percent and twenty percent of the |! |investment, respectively. Similarly, it must |! |be considered within the estimated potential loss, |! |regardless of its risk classification, all |! |investment made in instruments other than |! |shares issued by a company for which the |! |company investor or the broadcaster own, directly |! |or through another natural or legal person, the five |! |percent or more of the voting capital of the |! |broadcaster or investor, respectively; d) Indirect investment in shares in a society: |! | That which is done through the holding of |! |actions or rights in other companies that are |! |shareholders of that company, regardless of the |! |number of societies through which it occurs |! |this relationship. The Superintendence will determine, by means of rules of |! |general character, the procedure to carry out the |! |measurement of indirect investments in a society; e) Consolidated net accounting asset: The difference |! |between the asset of a society matrix and its subsidiaries, and |! |the estimated estimated potential loss on the basis |! |of the consolidated balance sheet. The terms "parent company" and "subsidiary", have the |! |scope stated in article 86 of the law N ° 18.046; f) Purged accounting asset: It is the one that results from |! |adding all of the operational assets and one |! |part of the rest of the assets, on the individual balance sheet. |! | This part will be calculated by multiplying the accounting value |! |of the respective asset by the percentage and coefficient |! |shown below. If it is debt securities, the coefficient will be |! |one. When such titles are issued by persons |! |related, the coefficient shall be 0,6. In the case of |! |investments in shares of companies not registered in |! |the Superintendence of Securities and Insurance or investments |! |in shares of companies that are neither subsidiaries nor |! |coligadas, the coefficient will be one. If this is |! |investments in shares of subsidiary companies or |! |coligadas recorded in the Superintendence of Values |! |and Insurance, the coefficient will correspond to the ratio |! |that represents the accounting asset purged of said |! |society in relationship to your total asset. The accounting asset purged in each subsidiary company |! |or coligada will be calculated in the same way as it is |! |established for the issuing company. The percentage |! |before alluded will be the one noted below: 1. Investments in shares of anonymous companies |! |subsidiaries registered in the Superintendence of Securities and |! | Insurance: eighty percent. 2. Investments in shares of anonymous companies |! |non-registered subsidiaries in the Superintendence of |! | Securities and Insurance: twenty percent. 3. Investments in non-corporate subsidiaries |! |anonymous: ten percent 4. Investments in shares of anonymous companies |! |coligadas registered in the Superintendence of Values |! |and Seguros, in which more than one third of the capital is held: |! |seventy percent. 5. Investments in shares of anonymous companies |! |coligadas registered in the Superintendence of Securities and |! | Insurance in which less than one third of the capital is held: |! |forty percent. 6. Investments in shares of anonymous companies |! |non-registered coligadas in the Superintendence of |! | Securities and Insurance: ten percent. 7. Investments in coligated companies other than |! |anonymous companies: zero percent 8. Investments in shares of public limited companies |! |that they are not coligated or affiliated and that they are approved |! |by the Commission of Risk Classifier: thirty per |! In the case of investments in shares of companies |! |organized according to the legislation in force in others |! |countries, the Superintendence of Values and Insurance |! |will establish the respective equivalences with the |! |previous percentages will multiply by a |! |factor that will depend on the type country in question, the |! |that will be determined by such Superintendence. For these purposes, the following |! types of countries will be distinguished: 1) Those who hold country risk classification |! |internationally recognized investment grade, and |! |in which societies are audited and audited |! |according to rules that generate adequate information to |! |shareholders minority and creditors, in the judgment of |! |the Superintendence of Securities and Insurance, or who own |! |records of securities and formal agreements of exchange |! |of information with the Superintendents of Values and |! | Insurance or that of Banks and Institutions Financial, |! |as appropriate, or whose companies are subject to the |! |registration requirements in the Superintendence of Values |! |and Insurance. In this case the factor will vary between 0.6 and |! | 0.8. 2) Those who do not possess risk classification |! |investment grade country, but who own |! |securities and formal exchange agreements |! |information with the Superintendents of Securities and |! | Insurance or that of Banks and Institutions Financials, |! |as appropriate. In this case the factor will vary between |! | 0.4 and 0.6. 3) Those who do not possess risk classification |! |investment grade country and whose companies are submitted to |! | registration requirements in the Superintendence of |! | Securities and Insurance. In this case the factor will vary between |! | 0.4 and 0.6. 4) Others, whose societies do not comply with the |! |noted in the preceding numbers. In this case the |! |factor will be 0.2. If it is debt securities issued in Chile, |! |the percentage referred to in the first paragraph of this |! |letter will be: a) Classified in category AAA or level N-1 of |! |risk and those corresponding to the letter a) of the |! |article 45: 100 percent of the value of the investment. b) Classified in category AA risk: ninety |! |percent of the value of the investment. c) Classified in category A risk: eighty |! |percent of the value of the investment. d) Classifier in category BBB risk or level |! | N-2: sixty percent of the value of the investment. e) Classified at N-3 level: thirty percent of the |! |value of the investment. f) Classified in categories BB, B, C, D or E and in |! |the N-4 or N-5 levels of risk, and other titles of |! |unclassified debt: zero percent of the value of the |! |investment. When it comes to actions not approved by the |! | Classifying Commission, other than those noted in the |! |third paragraph of this letter, the percentage to which is |! |refers the first paragraph will be zero percent of the value |! |of the investment. Without prejudice to the third paragraph, |! |the percentage referred to in the first paragraph, both |! |of this letter, shall be zero percent of the value of the |! |investment, in the case of shares of companies of those |! Article 45a (b) first subparagraph. In the case of debt instruments issued in the |! |foreign holding risk classification granted |! |by the Risk Classifying Commission, will be applied |! |the percentages corresponding to such classifications |! |indicated in the letters (a) to (f) of the sixth subparagraph. In |! |the case of debt instruments issued in the |! |foreign holding risk classification, but which |! |do not have classification granted by the Commission |! | Risk classifier, the Superintendence of Values |! |and Insurance will have to establish the equivalences with the |! |categories defined in Article 105 and indicated in |! |the points (a) to (f) of the sixth paragraph. In case of |! |countries with risk classification that reach degrees |! |investment, the percentages indicated in the letters a) |! |to the f) will be multiplied by 0.8. Dealing with countries |! |that do not possess risk classification of degree of |! |investment, this factor will be 0.2. The Central Bank of Chile will determine the countries that |! |possess a classification of degree risk of |! |investment, based on classings made by |! |internationally recognized entities. g) weighted average risk factor: The sum of |! |the products between the risk factor, according to the |! |defined in Article 105, corresponding to each |! |instrument or series issued or endorsed by the |! |institution, according to the category in which they have |! |been classified, and the proportion representing the |! |amount of the respective Fund investment in each one |! |of the instruments, with respect to the total value of the |! |investments of the Fund in the various titles |! |debt representative of that same issuer; j) Real Estate Companies: Those that |! |have as a single turn the real estate business and the one of |! |mortgage mutual with clause to the order. It |! |will understand for these effects as real estate business |! |the following: The sale or lease, in any of its |! |modalities, of all kinds of real estate with |! |exclusion of agricultural premises; renovation, |! |remodeling, construction and development of projects |! |real estate real estate of your property; the |! |investment in shares of companies whose object is the |! |participation in the concessions referred to in the |! | DFL. N ° 164, 1991, Ministry of Public Works, |! |and investment in shares of companies whose spin is |! |the only real estate business defined in this letter, |! |with the caveat that in this case such societies |! |will be able to invest in pregod farm. These last no |! |may have a ratio of more than fifty per |! |cent between your payable liability and your estate, nor |! |may i nvert more than ten percent of your asset |! |total in shares of other companies. The companies that deal with this letter will be able to |! |invest in buildings destined for the dwelling, only |! |when these are part of an indivisible way of a |! |real estate destined for a commercial purpose or |! |industrial. In no case will the investment in housing |! |exceed two percent of the total assets |! |of the society. These effects shall be understood as a business of |! |mortgage mutual securities with a clause to the order the purchase, |! |sale and grant of the mutual to be defined in the following |! |letter (k), and "." (b) Add the following letters (l), (m) and (n): " (l) Group Business: The one defined in the Title |! | XV of law N ° 18.045; m) Person with interest: Aquella defined in the |! |article 82 of law N ° 18.045; n) Controlling person: Aquella defined in the |! |article 97 of law N ° 18.045. ". 19.-Substitute Article 99, for the following: " Article 99.-Create a Classification Commission of |! | Risk, hereinafter the Classifying Commission, with |! |legal personality and own patrimony, formed |! |through the contributions to which the final paragraph |! |of article 102, which will have the following |! |functions: a) Approve or reject the instruments |! |representative of capital, debt and hedge of risk |! |susceptible to be acquired with resources of the |! | Pension Funds, in accordance with the provisions of the |! |article 45 (4); b) Assign a category of risk, of those |! |mentioned in article 105, to the instruments of |! |debt referred to in point (a) above, except that it is |! |try the rejection of an instrument in the form |! |established in the fifth indent of the article 105, in |! |whose case will not proceed such assignation; c) Establish the specific procedures of |! |approval of shares of public limited companies |! |real estate, of Investment Funds shares, of |! |representative instruments of capital and operations |! |of financial risk coverage included in the letter |! |l), and of the operations for the risk coverage |! |financial referred to in point (n), as well as |! |set, in accordance with the provisions of the |! |article 106, the minimum requirements for approval |! |of the actions of point (g), all of Article 45; d) Establish the equivalences between the |! |classifications of the debt securities mentioned in the |! |letter l) of article 45, made by entities |! |internationally recognized classifiers and |! |published in the Official Journal, as provided in |! |article 48 of the law N ° 18,840, and the categories of |! |risk defined in the Article 105, and (e) Approve, modify or reject the classifications |! |practiced by qualified entities |! |internationally recognized, to the instruments of |! |debt referred to in point (l) of Article 45, in |! |virtue of the established in Article 105. ' 20.-Enter the following modifications to the |! |article 100: a) Add in the second paragraph, below the |! |point apart (.), which will become a point followed, the |! |next sentence: " Same procedure will be applied to designate the |! |vice president, which will subrule the president in case of |! |absence or (b) Substitute the fourth indent by the following |! |incits: " Notwithstanding the foregoing paragraph, the |! |agreements to approve or maintain the approval of |! |investment in shares of shares of the companies to which |! |the second and third points of the article |! | 112, must be adopted with the vote favorable to the |! |minus two representatives of the |! Administrators | Pension Funds. In case of absence or impediment of any of the |! |members mentioned in points (a), (b) or (c) of the paragraph |! |first, will integrate the Classifying Commission a |! |official of the Superintendence that by the hierarchy |! |of his office, profession and area (i) the holder must be designated for that purpose |! |the Superintendent himself. "21.-Substitute Article 101, by the following:" Article 101.-The members referred to in the letter |! |d) of the preceding article shall last. two years in their posts |! |and will be chosen in the form that determines a Regulation |! |that agree with the managers acting as a whole. Such members must meet the requirements |! |required by the laws to be the director of a company |! |anonymous open and will not be able to be brokers or |! |agents of securities, nor to be managers, administrators or |! |directors of these entities, of a bank or a |! |financial institution. In turn, they will not be able to be people |! |related to some Fund Manager of |! | Pensions or be partners, administrators or members of the |! |classification board of the qualifying entities |! |as referred to in law No. 18,045. Together with the designation of each person |! |as referred to in point (d) of the previous article, |! |must also be designated an alternate member, who |! |will replace the respective holder in case of absence or |! |impediment of this. The members or alternates who of |! |conformity to article 82 of the law N ° 18.045, Sean |! |persons with interest in an issuer whose instruments are |! |submit to the approval of the Classifying Commission, se |! |obstindran to participate in the In the case of the case-law of the Court of First instance, the Court held that the Court held that the Court held that the Court of First instance had not been able to give the opinion of the Court of First Administrators |! |of Pension Funds ", for the following:" civil servants ". (b) Substitute in the second subparagraph the phrase "fourth |! |of Article 108", "first of Article 109". c) Add the following third indent: " The members of the Classifying Commission, the |! |members of the Administrative Secretariat, the |! |public officials or those people who take |! |! |instruments or classifications submitted to the |! | Classifying Commission for consideration, which |! |present or disseminate false information or |! |tendentious regarding the instruments that the |! |must approve or reject, will suffer the seclusion penalty |! |minor in its minimum grades to medium and disable |! |for In the case of the Court of State, the Court of State held that the Court of State held that the Court of State held that the Court of State held that the Court of State held that the Court of Classifier must |! |consider for approval or rejection, and assign a |! |classification category as indicated in the |! |article 105, if applicable, to all those |! |debt securities that have two classifications of |! |risk made in accordance with the provisions of the |! |law No. 18,045. This allocation will be made for the only |! |effect of determining the diversification of the |! |investments that are made with the Funds resources |! |from Pensions. The Qualifying Commission will consider for its |! |approval or rejection those actions of the letter g) |! |of article 45, excepted all those mentioned in |! |the fourth paragraph of article 45 that according to the |! |information that must provide semestrally the |! | Superintendence of Securities and Insurance and that of Banks and |! | Financial Institutions, do not be the object of the |! |prohibitions that establishes the first paragraph of the |! |article 45 bis and meet the requirements to which it alludes |! |article 106. Notwithstanding the above, the |! | Classifying Commission will consider these actions to |! |your approval or rejection when the issuer so |! |request, by filing two |! |classifications made in accordance with the law N ° |! | 18.045, provided that such actions are not the object of the |! |cited prohibitions. The shares of real estate companies and |! |the investment fund shares will be considered by |! |the Classifying Commission for approval or rejection |! |when requested by its issuer. The instruments |! |financial referred to in point (l) of the article |! | 45, will be considered by the Classifying Commission |! |for approval or rejection, when requested by some |! | Administrative of Pension Funds. Likewise, the |! |titles referred to in the letter ... of the cited article |! | 45 other than debt securities or company shares |! |anonymous, shall be considered by the Commission |! | Classifier for approval or rejection, at the request |! |of the issuer or from some Administrator, as determined |! |the Central Bank of Chile when authorizing the title. "24.-Replace Article 105, by the following:" Article 105.-Set the following |! |categories and risk factors for the instruments |! |financial referred to in points (b), (c), (d), (e), (e), (f) and (l) of Article 45, if Long-term debt: 1.-Category AAA with factor 1 (one); 2.-Category AA with factor 0.9 (zero coma nine); 3.-Category A with factor 0.8 (zero coma eight); 4.-Category BBB with factor 0.6 (zero coma six); 5.-Category BB with factor O (zero); 6.-Category B with factor O (zero); 7.-Category C with factor O (zero); 8.-Category D with factor O (zero), and 9.-Category E with factor O (zero), with no information available to classify. Set the following levels and factors of |! |risk for the financial instruments to which you are |! |refer to (k) and (b), (c) and (l) if |! |for short-term debt instruments: 1.-Level 1 (N-1) with factor 1 (one); 2.- Level 2 (N-2) with factor 0.6 (zero coma six); 3.-Level 3 (N-3) with factor 0.3 (zero coma three); 4.-Level 4 (N-4) with factor O (zero), and 5.-Level 5 (N-5) with factor O (zero), no information available To be classified. The categories and levels indicated in the above paragraph |! |will correspond to those defined in the law N ° |! | 18.045. The AAA category and the N-1 level are the most |! |low risk, which increases progressively up to the |! |category D and level N-4, which will be the highest |! |risk. The Qualifying Commission must assign to the |! |instrument the highest risk category among the |! |that you have awarded the contracted classifiers |! |by the issuer of the debt title, according to the |! |law N ° 18.045. Without prejudice to the above, the Commission |! | Calsificadora will be able to request the issuer, a |! |additional classification of a third classifier |! |private, chosen by this one, from those whom it alludes the |! |cited law. In the latter case the Commission |! | Classifier must assign to the instrument the category |! |indicative of higher risk from among the three proposals. |! | However, the Commission may, by decision |! |founded and with the vote of at least five of its members, |! |omit consideration of one of the three |! |propositions, should assign to the instrument the |! |category indicative of higher risk of between the |! |remaining two propositions. However, the Classifying Commission may reject |! |a title of debt with the favorable vote of the majority |! |of the members attending the session, must be stated |! |the foundation in the act, except that the Commission |! This requires reservation. In the case of debt instruments of Article 45 (l) (l) (l), classification shall be made in function |! |of the classification which qualified entities |! |internationally recognised have been carried out and which |! |the Central Bank of Chile It would have been published in the Official Journal |! | Official, according to article 48 of Law No. 18,840. |! | When it comes to capital instruments, these are |! |they will approve according to the procedures that for |! |such effect will have to be established the Commission |! | Classifier, according to the provisions of the letter |! |e) of article 99. The Qualifying Commission must establish the |! |equivalences between the categories of classification |! |international and those mentioned in the first paragraph of |! |this article, without prejudice to the fact that you can establish |! |additional adverse factors that could modify the |! |final classification. These equivalence criteria will be |! |set by an agreement that will take effect |! |since its publication in the Official Journal, for the only |! |effect of the classification of the debt instruments |! |as referred to in point (l) of the Article 45. " 25.-Substitute Article 106, by the following: " Article 106.-The actions referred to in Article 45 (g) (g), with the exception of those indicated in Article 45 (4), shall be submitted to the Commission in accordance with the fourth paragraph of Article 45. Classifier in |! |consideration to compliance with the minimum requirements |! |that will be determined based on the public information |! |historical that the issuer has delivered to the entity |! |audit that corresponds. In order for an action of those mentioned in the paragraph |! |above to be approved by the Commission |! | Classifier, it will be sufficient for its issuer to comply with the |! |mentioned minimum requirements. The specification |! |conceptual, the calculation methodology and the limit value |! |of the indicators considered in these requirements, the |! |will determine the Risk Classifying Commission, previous |! |favorable of the Superintendence, having to publish them |! |in the Official Journal. The minimum requirements regarding the actions to |! |referred to first, will consider in respect |! |of the issuer, the availability of financial statements |! |audited for the last three years, with results |! |positive at least in the two last, a level of |! |financial expense coverage and adequate liquidity, |! |requiring that in that period not have been produced |! |changes that could cause positive effects or |! |negative in administration, ownership, spin, |! |essential assets, production processes or other |! |changes that may be affect their solvency. In the case of banks or institutions actions |! |financial or leasing companies, will be considered |! |as minimum requirements, availability of states |! |financial audited for the last three years, with |! |positive results to the less in the last two, and a |! |certain level of economic indebtedness, |! |requiring that in that period they have not been produced |! |changes that could cause positive effects or |! |negative in the administration, the property, the spin, |! |essential assets or other changes you can |! |affect your creditworthiness. However, the Classifying Commission may reject |! |an action with the favorable vote of the majority of the |! |members attending the session, with the |! |foundation in the minutes, except that the Commission |! require reservation. The Superintendents of Securities and Insurance or of |! | Banks and Financial Institutions, as appropriate, |! |will perform the calculation of the minimum requirements and |! |will make a payroll of shares of the |! |letter g) of article 45 comply with them, payroll |! |that will be remitted semestrally to the Commission |! | Classifier and the Superintendence of Administrators |! |of Pension Funds, no later than the ten days of |! |May and ten of October of each year, being able however |! |be modified or supplemented on any date. When the shares of an issuer have been |! |rejected by the Classifying Commission for a causal |! |other than that set out in Article 107, or when |! |it does not comply with the requirements stated in the |! |second indent, you may request a new consideration |! |of the Classifying Commission presenting to this and the |! | Superintendence, two complete reports of |! |classification of risk of their actions, elaborated in |! |conformity to the stated in law N ° 18.045, by |! |different Private classifiers. Such reports will be |! |justify only when they contain opinions in which it is |! |qualify the issuer's creditworthiness based on background |! |additional to those considered by the Commission |! | Classifier. However, this may require the |! |issuer to submit an additional classification of |! |compliance with the above mentioned law, prepared |! |by another classifier chosen by this one. The above does not |! |will be an impediment to the Classifying Commission |! |can again exercise its right to reject the |! |instrument. The investment fund shares and the shares of |! |real estate companies will be approved to |! |request from the issuers in consideration to the |! |investment objectives and policies intended to |! |comply, to the rating of the resources |! |administration professionals and other aspects |! |that determines the Classifying Commission, which |! |must be made known by agreement published in the |! | Official Journal. The information required for the |! |evaluation of these instruments must be contributed by |! |the respective issuers in the form and opportunity that |! |determine the Classifying Commission. The representative capital instruments referred to in Article 45 (l) shall be approved on the basis of |! |of the procedures to be established by the |! | the Classifying Commission, which shall be considered to be the country risk, the country risk, the existence of systems |! |institutions of audit and control over the |! |issuer and their titles in the respective country, and in |! |consideration to the liquidity of the title in the |! |corresponding secondary markets. " 26.-Reposition the article 107, for the following: " Article 107.-The Administrators who have |! |invested Pension Fund resources that |! |manage in shares of companies in which the State, |! |directly or through their companies, |! |decentralized, autonomous or municipal institutions, |! |have fifty percent or more of the actions |! |subscribed and which by their nature are subject to |! |special rules regarding the fixing of tariffs or |! |access to the markets, they will be able to exercise the right to |! |withdrawal of the society in the terms of the articles |! | 69 and following of Law N ° 18,046, in case the |! | Classifying Commission rejects such actions by |! |any of the following causes: (a) the modification of the rules governing them in |! |tariff or price matters for services or goods |! |which they offer or produce, or relating to access to the |! |markets; b) The determination of their administrators or the |! |authority in the sense of fixing the price of those |! |goods or services in such a way that they alter negative and |! |substantially in relation to those that have been had |! |in consideration when approving the actions; c) The determination of their administrators or of the |! |authority to acquire raw materials or other goods or |! |services necessary for its spin that affect its |! |costs, in terms or conditions more onerous in |! |relation to the average of the price in which they are usually |! |offer on the market, be domestic or foreign, |! |considering the volume, quality and specialty that the |! |society requires; d) carrying out promotion or help actions or |! |the direct or indirect grant of subsidies of |! |part of the society, which would not have been considered |! |in the time of approval of the actions by the |! | the Classifying Commission, provided it does not force |! |granted directly or indirectly by the State, the |! |sufficient resources for your financing, and |! |e) The realization of any other similar action, |! |disposed by the management of the society or by the |! |authority, which is contrary to the objectives that |! |establishes article 45. ". 27.-Substitute Article 108, p. r the following: " Article 108.-Within the first five days of |! |each month, the classifiers referred to in law N ° |! | 18.045 will present to the Classifying Commission and to the |! | Superintendence, a list of risk classifications |! debt instruments, which have been |! |entrusted and which you would have made the previous month, |! |with the respective public reports, according to the |! |that determines the Superintendence of Securities and Insurance. |! | Additionally, the reports of |! |periodic update that must be submitted to the |! |referred Superintendence and to that of Banks and |! | Financial Institutions, as appropriate. When there is relevant information that you can |! |influence the risk classification of an instrument |! |or the approval of actions or quotas, the entities |! |classifiers must report this fact to |! |the Classifying Commission and the Superintendence, |! |by referring to them of the same information as |! |they should send to the body that fiscaling the |! |corresponding process of classification, with respect to the |! |or extraordinary sessions of its council of |! |classification in the |! |instrument was re-evaluated. In compliance with its functions, the Commission |! | Classifier will be able to consult the |! |private classifiers that have intervened in the |! |classification of the instrument analyzed. The members of the Classifying Commission may |! |submit proposals for urgent modifications to the |! |agreement in force, as circumstances |! |extraordinary require to modify the approval of a |! |instrument. In turn, the Classifying Commission will be able to |! |ask the issuers for the voluntary submission of |! |two evaluation reports prepared by classifiers |! |private, when their actions have been approved |! |only attending to the compliance requirements |! |lows and new background has emerged which, a |! |judgment of the Classifying Commission, make it advisable |! |reject the instrument. The request for these reports |! |evaluation will be intended to provide the issuer with the |! |opportunity to provide additional information in the form |! |prior to the new agreement that will eventually be adopted by the |! | Classifying Commission. " 28. Article 109, as follows: " Article 109.-The deliberations of the Commission |! | Classifier shall be secret until the publication of the |! |final agreement, which shall be made in the Official Journal to |! no later than the first working day of the month following the of |! |the adoption of the agreement. The publication must contain |! |the categories of classification referred to in the |! |article 105, assigned to the debt instruments, and |! |the approval of the representative instruments of |! |capital, as well as the main fundamentals of the agreement |! |adopted. The records of the Classifying Commission must be |! |made available to the public requesting them, |! |unless there are reasons to maintain reservation |! |regarding confidential aspects that affect the |! |business of the issuer. In this case the classifiers of |! |risk may require the publication of |! |the basics of the classification in the Journal |! | Official, as soon as it says relationship with the information of |! |character reserved, and that the |! |confidentiality of the minutes and records of the |! |classification, in whatever case. The Commission |! |will be able to have equal measure every time you consider it |! |coming. However, the reservation regarding the |! |fundamentals of the classification will not be applicable to the |! |issuer or the classifier, except that the Commission |! | Classifier so determines, owing |! |provide them information when required, on |! |the circumstances that affected the risk assessment |! |the instrument. "29.-Replace Article 110, by the following:" Article 110.-If due to expert or background information |! |pending, the Classifying Commission shall not resolve the |! |approval or rejection, or assignment of a category |! |risk, if any, instruments |! |previously approved, these will maintain their condition of |! |such and their corresponding category of risk. No |! However, once it is settled on them, the |! |respective agreement must be published. "30.-Replace Article 111, by the following:" Article 111.-Limited companies which are not |! |subject to the restrictions laid down in the Article |! | 45 bis, the shares of which are approved in accordance with the provisions of Title XI of this Law, may establish |! |in their statutes commitments in relation to the |! |matters referred to in this Title. " 31.-Substitute the article 112, for the following: " Article 112.-The public limited companies subject to the |! Title should be included in their |! |statutes permanent rules that establish, in the |! |less, the following conditions: a) The minimum value that the ratio can reach |! |that results from dividing the accounting asset purged by |! |the total accounting asset, measured on the balance sheet |! |individual; b) No person, directly or by intermediate of |! |other persons The minority shareholders must hold the |! |less than ten percent of the capital with voting rights |! |of the company, and d) A at least fifteen percent of the capital with |! |right to vote of the society, must be subscribed by |! |more than one hundred non-related shareholders, each |! |one of which must own a minimum |! |equivalent to one hundred units of promotion in shares, |! |according to the value you have set them in the last |! |balance. However, in the case of anonymous companies |! |open in which the Fisco, directly or by means |! |of State enterprises, decentralized institutions, |! |autonomous or municipal, have fifty percent |! |or more of the shares subscribed, it will be understood that |! |comply with the conditions of this Title provided that |! |that or these, as the case may be, sell or be committed to |! |sell thirty percent of the society, |! |subscribing the commitment of deconcentration |! |corresponding, held in accordance with the rules of the |! |articles 124 and following of this law. In the above mentioned |! |commitment will also need to specify the deadline for the |! |deconcentration of twenty-five percent of the |! |actions of the society. If the Fisco or institutions |! |before named reduced or committed to reduce |! |their participation in the ownership of a |! |society determined, in a percentage higher than the |! |thirty percent, the result of such reduction o |! |reduction promise will constitute your maxino limit of |! |concentration allowed. In any case, while the Fisco or the institutions |! |names keep a percentage higher than fifty |! |percent of the subscribed shares of a given |! |society, at least ten percent of the shares |! |must be in power of minority shareholders, and the |! |fifteen percent of the shares of the same company, |! |under the respective commitment of deconcentration, |! |must be subscribed by more than one hundred shareholders no |! |related to each other. In that fifteen percent will be |! |will compute the actions that would have been acquired with |! |the resources of some Pension Fund. "32.-Reposition article 113, by the following:" Article 113.-In the statutes of the society |! |it will be set the maximum percentage of the capital with |! |right to vote of the same, which may concentrate a |! |person, directly or through other persons |! | related, differentiating the maximum concentration |! |allowed to the Fisco and the rest 33.-Substitute in Article 114 the "45 |! |bis" guide to the '112' and '123' by '124'. 34.-In Article 121, the phrase "a |! |article 112" shall be replaced by the words "to Articles 112 and 113", |! |and replace the word "ninety" by "seventy-five". 35.-Substitute in the third indent of the article |! | 125 the "45 bis" guitarianism by the guarism "112". 36.-Reposition Article 126, by the following: " Article 126.-An extract of the commitment of |! |deconcentration shall be published in the Official Journal |! |and in a national circulation journal. Also, it is |! |it will refer to it in the register of shareholders of the |! |society and will be entered in the margin of each one of the |! |inscriptions of actions that the shareholders hold that |! |have undersigned the respective engagement. " 37. Article 130, second paragraph, |! |by the following: " The real estate companies you are dealing with |! |this subtitle, you will not be able to invest more than ten percent of your total assets in shares of companies that |! |are not included in the point (j) of Article 98. '; Then, add to the same Article 130, the |! |following new incissos: " The investments made by the companies |! |anonymous real estate in shares of the companies to |! |referred to in point (j) of article 98, must |! Following requirements: a) The issuing company must have states |! |financial audited by external auditors that are |! |find registered in the Register that the effect carries |! |the Superintendence of Securities and Insurance, and b) The sum of the investment may not exceed of the |! |thirty percent of the total assets of the company |! |real estate investor, not twenty percent of |! |their assets when they correspond to the same issuer. The value of the investments made by the |! |real estate companies in sites will not be able to |! |exceed twenty percent of their assets. " 38.-Amend article 131 in the following |! |terms: a) In its first paragraph interleave between the |! |words " national "and" duly ", the phrase" and, with |! |the exception of the sites, "deleting the |! |comma (,) that follows the word" national ". b) In its second indent, intercove between the |! |vocablos "construction" and "only", the expression "of |! |third party property". c) Intercaling the following incissos between the |! |incissos second and third, passing the current incisos |! |third, fourth and fifth to be fifth, sixth and seventh, |! |respectively: " Renovation, remodeling, construction and |! |development in goods Company property roots |! |real estate, must be hired by tender |! |public in addition to technical construction companies |! |and financially solvent, and be guaranteed |! |by the company and third parties regarding its termination in |! |the agreed technical and financial conditions. The |! |sufficiency of these guarantees should be supported with the |! |certification of external consultants. The value of the investments referred to in the above |! |paragraph, during its ongoing work stage, no |! |may exceed, in conjunction with the investment in sites |! |eriazos, of twenty percent of the total assets of |! |the society. " d) In the Current third indent, which happens to be |! |fifth indent, replace the phrase "25,000 units |! |of promotion," by this other: " the least value between the |! |five percent of the total assets of the company |! |anonymous real estate and 25,000 units of promotion, ", and |! |add the following sentence at the end:" Also, investment decisions to which refers |! |the third indent, as well as the purchase of sites, |! |must be adopted with the favorable vote of at least two |! |thirds of the members of the directory. " 39.-Modify article 132 in terms that |! |are indicated to continuation: (a) Substitute your first indent by the following: "Article 132.-The lease contracts of |! |the property of the company shall be |! |contain stipulations that permit the review |! |periodic of its terms." (b) Add to the Second, following the |! |separate point, which becomes a further point, the |! |following: "Without prejudice to the foregoing, a |! |foreign currency readjustability system may be agreed." 40.-Add to Article 133, the following |! |second indent: " For purchase of properties by unit values |! |greater than 10,000 Promotion units, must |! previously have two appraisals made by |! |professional appraisers of recognized experience in |! |similar jobs in the banking, financial or |! housing system, or by registered external auditors In the |! | Register of Auditors that maintain the Superintendence |! |of Securities and Insurance, and which are different from those that |! |audit the financial statements of the company. "41.-Reposition article 135, by the following:" Article 135.-The property companies, their |! |directors or managers and their related persons |! |may acquire, lease, or usufrutate directly or |! |through other natural or legal persons, |! |property values or property of the companies |! |real estate to manage, not to dispose or lease of |! |yours to these. They will also not be able to lend money on loan |! |or grant guarantees to such companies, and vice versa, nor |! |hire renovation, remodeling and development of |! |real estate. Except for this prohibition |! |those transactions of securities of public offer |! |realized in formal markets that have high liquidity, |! |as determined by the Superintendence of Values and |! | Insurance, by standard of general character. " 42.-Enter the following Titles XIII and XIV, |! |passing the current Title XIII "Provisions |! | Transitions" to be Title XV. " TITLE XIII Of the Custody of the Titles and Values of the Pension Fund Article 136.-The rules on deposit of securities |! |contained in law N ° 18,876, shall apply to the |! | Pension Funds depositors and to the |! | Administrators, in all that which is not opposed |! |with the rules of this Title. Article 137.-When securities of the Fund are deposited |! |of Pensions the depositor will be understood to be the |! | Fund, being obliged the company of deposit to bear |! |individual accounts separated by each Fund of |! | Pensions and by Administrator, where appropriate. Article 138.-The securities deposited in the |! |deposit companies that correspond to the Funds of |! | Pensions shall be inembargable and shall not be constituted |! |on them, garments or royal rights, nor decretse |! |precautionary measures. The above is without prejudice to the delivery of these |! |securities in warranty for the conclusion of contracts |! |financial risk coverage as referred to in Article 45 (n) of this law. Article 139.-The Administrators will not be able to |! |acquire with resources of the Pension Fund values |! |affections to encumbrances, prohibitions or embargoes. Article 140.-The Administrators will communicate to the |! | Superintendence in the opportunity and conditions that |! |it determines, by means of instructions of character |! |general, the value of the portfolio that has in each |! |company of deposit of values Foreign Chilean, in |! |the Chambers of Compensation referred to in Title |! | XIX of Law No. 18,045 and in the Central Bank of Chile. |! | Dealing with a securities filing company, the |! | Administrator must accompany, every time the |! | Superintendence so requires, a certificate awarded |! |by that company, as provided in the |! |article 13 of Law No. 18,876, to credit the |! |value of the held portfolio. Article 141.-The deposit companies and the |! | Compensation Chambers will be required to provide |! |to the Superintendence within the deadline that is |! |determine, information about the values received in |! |deposits, the operations that the Pension Fund and |! |the Administrators perform as depositors and all |! |other information that is necessary for the exercise of |! |their audit functions. With the same end, the deposit companies and the |! | Compensation Chambers will be required to put to |! |disposition of the Superintendence, all account, |! |record or document in that they consist of the investments of |! |the Pension and Lace Funds. Article 142.-The Administrators must attend |! |the assemblies of depositors referred to in the |! | Title III of Law No. 18,876. In such assemblies |! |they will always have to decide on the agreements |! |that they are adopted and must be put on record of their votes |! |in the respective minutes. The contraventions to these |! |demands will be sanctioned in the prescribed form in the |! |number 8 of article 94. Article 143.-When the deposit company is |! |find in the situation described in articles 37 |! |and 38 of the law N ° 18.876 and the Superintendence of |! | Securities and Insurance will revoke its authorization of |! |existence, fact that it will communicate to the Superintendence |! |of Pension Fund Administrators at the latest |! |the next day of the decretada the revocation, this |! |will have the transitory transfer of the portfolio of |! |values deposited in custody, to the Central Bank of |! | Chile or to another company of securities deposits. Article 144.-The provisions of the above article |! |will also apply, in case of dissolution of the |! company company of deposit, whatever its cause, |! |fact that must be communicated by the Superintendence |! |of Securities and Insurance to the Superintendence a day |! |next of produced. Article 145.-In case any creditor asks the |! |bankruptcy of the company, the court shall, without prejudice |! |of the provisions of article 41 of the law N ° 18.876, |! |give notice to the Superintendence. If the report to be issued by the Superintendence of |! | Values and Insurance, as provided in Article 41 of |! |the law N ° 18.876, declare the impossibility that the |! |company can respond to its obligations, or not |! |give its resolution within the deadline set to the effect, |! |the Superintendence of the Funds Administrators of |! | Pensions will have the corresponding values to |! |the Pension Funds are deposited |! |transiently in the Central Bank of Chile or in the |! |deposit company that the Superintendent determines, |! |being excluded from bankruptcy. Article 146.-Each Administrator may acquire |! |directly or indirectly up to seven percent of |! |the subscribed shares of an anonymous company |! |constituted as a securities deposit company. TITLE XIV of the Regulation of Conflict of Interests 1.-Of the Responsibility of the Administrators. Article 147.-The Administrators must carry out |! |all necessary steps, for precautionary |! |the obtaining of adequate profitability and safety in |! |the investments of the Fund that they manage. In |! |fulfillment of their functions, they will exclusively attend |! |to the interest of the Fund and will ensure that all the |! |operations of acquisition and disposal of titles with |! |resources of the same, are realized with that objective. The Administrators will respond up to the blame |! |slight for the damages they will cause to the Fund by the |! |non-compliance with any of their obligations. The Administrators will be able to enter into transactions, |! |commitments, judicial and extrajudicial agreements, |! |avenitements, extension and novations, with the object of |! |avoid damages for the Pension Fund that |! |administer, derivatives of the non-payment of the instruments |! |of debt acquired by this one. Also, the |! | Administrators will be able to participate in a voice and |! |vote in creditors ' meetings or in any type of |! |procedures, except that the debtor is |! |person related to the respective Administrator, in |! |whose case You may only participate in the right to voice. Article 148-The Administrators will be |! |expressly authorized to initiate all actions |! |legal which correspond against that which caused a |! |injury to the Pension Fund. You will be competent to |! |know of the actions intended to obtain the |! |corresponding indemnities, the Judge of Letters of the |! |address of the Administrator, which will be processed |! |according to the summary procedure established in the |! | Title XI of Book III of the Code of Procedure |! | Civil. Article 149.-The Administrators will be obliged |! |to indemnify the Fund that they administer for the damages |! |direct that they, any of its directors, |! |dependents or persons who provide services, le |! |causaren, as a consequence of the execution or omission, |! |as appropriate, of any of the actions to |! |referred to in Articles 147 and 150 to 154. The |! |persons mentioned above who would have participated in |! |such performances will be jointly and severally responsible for |! |this obligation, which will include the emerging damage and the |! The Superintendence may initiate in |! |benefit of the Fund, the legal actions it considers |! |relevant to obtain the indemnities that |! |correspond to this, under the referred |! |obligation. These actions must be initiated before the |! | corresponding Letters Judge. the one you will know of the |! |action according to the procedure outlined in the |! |previous article. Article 150.-In order to ensure the |! |compliance with the provisions of this article and by |! |the observance of the prohibitions referred to in the |! |article 154, the Superintendence, by means of |! |general instructions, determine the |! |information that will be maintained by the Administrators and the |! |records file that they will carry, in relation to the |! |transactions of their own, the ones they carry out with their people |! |related and those of the Fund that they manage. Prior to |! |the transaction of an instrument by a |! | Administrator, it will be obliged to register if it |! |does in its own name or on behalf of the Fund of |! | Pensions. The information will make faith against the |! |forced to carry it. The external auditors of the Administrators |! |will have to rule on the control mechanisms |! |internal that these are imposed to ensure the faithful |! |compliance with the provisions of this article and the |! bans contained in the |! |article 154, as well as the systems of |! |information and file to register the origin, destination |! |and opportunity of transactions that are made with |! |the resources of the Pension Funds. Article 151.-The directors of a Administrator, |! |their controllers their managers, administrators and, in |! |general, any person who by reason of their charge or |! |position has access to information of investments |! |of the resources of a Fund that has not yet been |! officially disclosed to the market and that for its |! |nature be able to influence the quotes of |! |the values of those investments, must keep |! |strict reservation regarding that information. Likewise, the persons mentioned in the above |! |paragraph are prohibited directly or indirectly from the |! |reserved information, to obtain for themselves or for |! |others, other than the Pension Fund, advantages |! |by the purchase or sale of values. People who participate in decisions about |! |acquisition, disposal or maintenance of instruments |! |for the Pension Fund, will not be able to communicate these |! |decisions to persons other than those who must |! |participate in the operation by account or in |! |representation of the Administrator or the Fund. Article 152.-Administrators are prohibited |! |acquire shares and shares of investment funds that |! |can be acquired with resources from the Fund. Also, |! |are prohibited to the Administrators, to the persons who |! |participate in the decisions and operations of acquisition |! |and disposal of assets for the Fund, and to the persons |! |that, because of their position or position, they are informed |! |regarding the Fund's transactions, acquire |! |low-liquidity assets, referred to in the |! |article 162 of Law No. 18,045. If a Administrator has invested in the |! |instruments mentioned in the above paragraph, you must |! |them within a maximum of one year, counted from |! |the date on which they could be acquired by the Fund. In |! |both the Administrator keeps them as investments |! |own, will be prevented from acquiring such instruments |! |with resources from the Fund. In any case, the transactions of the assets that |! |can be acquired with the resources of the Funds, |! |made by the persons and their spouses to be |! |refers the first paragraph of article 151 and of this |! |article, must be reported to the Superintendence |! |within 5 days of the respective |! |transaction, except for term deposits |! |issued by banks and financial institutions, |! |acquired directly from the issuing institutions. |! | Also, the Superintendence may request the |! |persons and their spouses information regarding the |! |transactions of the assets referred to in this paragraph, |! |that they have effected in a prior period of up to |! |twelve months to the date in who become eligible to |! |the Funds. Article 153.-The function of administration of |! |portfolio and in particular acquisition decisions, |! |maintenance or disposal of instruments for the Fund and |! |the respective Administrator, will be incompatible with |! |any function of administration of another portfolio. |! | In addition to the responsibility that may correspond to you |! |the Administrator and its executives, all who |! |infra the prohibition contained in the present |! |article will be responsible civilly for damages |! |occasioned to the Fund -without prejudice to the |! |application of administrative and criminal penalties |! |that correspond in accordance with the law. 2.-From the prohibited Activities to the |! | Administrators of Pension Funds. Article 154.-Without prejudice to the |! |the above articles, the following actions or omissions made |! |by the Administrators are contrary to the present |! |law: a) The operations performed with the goods of the |! | Fund, to obtain undue, direct or |! |indirectos; b) The collection of any service to the Fund, except |! |those commissions that are expressly authorized |! |by law; c) use for your own or other benefit of |! |information regarding operations to be performed by the |! | Fund, in anticipation of such operations; d) The communication of essential information relating |! |to the acquisition, disposal or maintenance of assets |! |on behalf of the Fund to persons other than those |! |that strictly must participate in the operations |! |respective, in representation of the Administrator; e) The acquisition of assets that make the |! | Administrator for if, within 5 days following |! |the disposal of these, carried out by it for account |! |del Fund, if the purchase price is lower than the price |! |weighted average existing in the formal markets the |! |day before that of the disposal; f) The disposal of own assets that make the |! | Administrator within 5 days of the |! |acquisition of these, made by it for account of the |! | Fund, if the selling price is above the price |! |weighted average existing on the formal markets the |! |day prior to that of the acquisition; g) The acquisition or disposal of goods, by |! |account of the Fund, in which it acts for itself, as a transferor o |! Administrator, and h) The assets or acquisitions of assets that |! |make the Administrator if they prove to be more |! |advantageous to this that the respective enajenations or |! |acquisitions of these, carried out on the same day by |! Fund; except if delivered to the Fund, within |! |of the two days following that of the operation, the |! |corresponding price difference. For the purposes of this article, the expression |! | Administrator will understand, also, any person |! |that you participate in the investment decisions of the Fund or |! |that, due to your position or position, have access to |! Investments of the Fund. In addition, it is |! |will understand assets, those that are of the same |! |species, class, type, series and issuer, if any. Notwithstanding the administrative, civil and |! criminal penalties that correspond, and the right to claim |! |damages, the acts or contracts made in |! |contravention to the prohibitions above |! |flagged, will be validly understood held. 3.-From the vote of the Administrators in the |! |election of directors in the societies whose actions |! |have been acquired with resources of the Funds of |! | Pensions. Article 155.-In the directory elections of |! |the companies whose shares have been acquired with |! |resources of the Pension Funds, the Administrators |! |will not be able to vote for people who are in |! |some of the following situations: a) Being a majority shareholder, person related to |! |the, or person proposed by it, that, directly |! |or indirect, or by means of joint action, |! |you can choose the majority of the directory. b) Being a shareholder, or group of shareholders or persons |! |related to them, that with the votes of the |! | Administrators can constitute a majority in the |! |directory. In any case, the Administrators will have to be held |! |the following rules in these elections: a) The directory of the Administrator must |! |determine the name of the candidates for which their |! |representatives will vote, must contain the decision |! |respective the guidelines to which these should be held |! |when voting for a person different from the one agreed, |! |when the interest of the Fund managed so |! |require. These agreements must be recorded in the minutes of the company's board of directors and contain its basis. In cases that the representative of the |! | Administrator vote for a person other than the |! |indicated in the agreement, you will need to submit a written report |! |on the fundamentals and circumstances of the adopted vote |! |at the next meeting of directory to be celebrated, from |! |which must be kept on record in the respective act, |! |as well as the opinion of the directory on the |! |informed. b) The representatives of the Administrator will be |! |always obliged to express their vote in |! |the elections in which they will participate, must leave |! Choice of Directors in the Administrators. Of the Directors Article 156.-In addition to the inabilities |! |established in Articles 35 and 36 of the law N ° |! | 18.046, they will not be able to be directors of a Administrator |! |of Pension Funds: a) The executives of banks or institutions |! |financials, stock exchanges, intermediaries of |! |securities, investment fund managers, |! |mutual fund managers, insurance companies or |! |pension fund managers, and b) The directors or persons working in |! |any of the institutions mentioned in the letter |! |above, and that by reason of their position or position, |! |participate directly in the execution of their |! |investment decisions, intermediation or credit. Functions of the Directors Article 157.-The directors of a Administrator |! |must always rule on those matters that |! |involve conflicts of interest and especially |! |regarding the following aspects: a) Policies and vote of the Administrator in the |! |election of directors in the companies whose actions |! |have been acquired with resources from the Fund of |! | Pensioners; b) The internal control mechanisms established |! |by the Administrators to prevent the occurrence of |! |actions affecting compliance with the standards |! |contained in articles 147 to 154; c) Propositions for the designation of auditors |! |externos; d) Designation of governors of the Administrator |! |for the Investment of the resources of the Pension Fund |! |abroad; e) General policies Investment of the resources |! |of the Pension Fund, and f) Policies regarding transactions with |! |resources of the Fund, with persons related to the |! | Administrator. 5.-Sanctions and Procedures. Article 158.-The one that executes or celebrates, individually |! |or collectively, any act or convention that is |! |prohibited or that contravene the provisions in the |! |articles 147 to 154, shall be sanctioned according to the |! |disposed in the organic law of the Superintendence of |! | Pension Fund Administrators and at present |! |law. Article 159.-They will suffer the lesser prison sentences |! |in their middle grade a presidio major in their minimum degree, |! |the directors, managers, proxies, liquidators, |! |money table operators, and workers of a |! | Administrator of Funds Pensions that because of their |! |charge or position, and worth of information |! |privileged from that which treats Title XXI of the |! |law N ° 18,045: a) Execute an act by itself or through others |! |persons, in order to obtain a benefit |! |pecuniary for itself or for others, by any |! |operation or transaction of securities of public offer; b) privileged, relative to |! |the investment decisions of the Fund to persons |! |different from those in charge of carrying out the operations |! |of acquisition or disposal of offer values |! |public for account or in representation of the Fund. Equal pain will suffer the workers of a |! | Pension Fund Administrator who, being |! |managers of the portfolio management and, in |! |special, of the decisions of acquisition, maintenance or |! |disposal of instruments for the Background and the |! | respective administrator, exercise by itself or through |! |other people, simultaneously the function of |! |administration of another investment portfolio, and who |! |having equal condition infra any of the |! |prohibitions entered in points (a), (c), (d) and (h) |! |of Article 154. '; 43.-Articles 50, 123 and 129 shall be deleted. 44.-Reposition Article 18 of Title XIII |! | "Transitional Provisions", as follows: " Article 18.-The Central Bank of Chile to be counted |! |from 1 July 1994, may not set a limit of |! |investment for the instruments mentioned in Article 45 (l) |! |less than three percent of the value |! |of the Fund. This percentage will increase by one per |! |percent for each year following the indicated date, up to |! |complete six percent. In the case of the sub-limit of investment in shares |! |issued by foreign companies and shares of |! |participation in Mutual Funds and Investment Funds in |! |the foreigner, this will correspond to fifty per |! paragraph |! |previous. "." Article 5.-Enter into the decree with force of law N ° 251, of 1931, the following modifications: 1. Substitute Article 1 (f), by the following: " f) Heritage of risk: corresponds to the largest between: 1.-The assets necessary to maintain the debt ratio established in Article 15, or 2.-The solvency margin which it is necessary to apply the general procedures set out below and the specific factors and mechanisms, by groups or classes in which the Superintendence is to be determined, by means of a general rule of law which shall be valid for 180 days after the date of the judgment and, in the event of a change, communicate to the insurance institutions with at least 180 days in advance of their entry into force. The main objective of the solvency margin is for the institution to have available resources to cover extraordinary variations caused by deviations from the risks, in excess of what is expected statistically. Solvency margin requirements may be differentiated between insurers and reinsurers, on the basis of technical criteria derived from their spins. The solvency margin for the companies in the first group will be the largest between: A.-The amount to be calculated for the solvency margin on the basis of the premiums. It shall be determined by applying to the accepted annual direct and reinsurance premiums, excluding earthquake, a factor fixed by the Superintendence which may be differentiated by insurance or risk type, which may not exceed 18% for the purposes of the For the rest of the European market, the This result shall be multiplied by the ratio between net reinsurance claims and total claims of the company or by the percentage established by the Superintendence, if that ratio is less than this percentage, which may not be more than 60% for cars and 30% for other classes, and may be deferred by insurance or type of risk. B.-The amount to be calculated for the solvency margin according to the claims. It shall be determined by applying to the average net of claims and reinsurance accepted for the last three years, excluding an earthquake, a factor fixed by the Superintendence, which may be differentiated by insurance or risk class, which may not be more than 25% for cars and 75% for other classes. This result shall be multiplied by the ratio between net reinsurance claims and total claims of the company or by the percentage established by the Superintendence, if that ratio is less than this percentage, which may not be more than 60% for cars and 30% for other classes, and may be deferred by insurance or type of risk. The solvency margin for the companies of the second group shall correspond to the sum of the amounts resulting from the application of the following points in the following letters: (A) For accident, health and life insurance, the calculation shall be shall carry out the rules laid down for the insurance of the first group. (b) For life assurance which does not generate mathematical reserves, excluding those referred to in Article 59 of Decree-Law No 3,500 of 1980, a factor fixed by the Superintendence, which may be established, shall be determined by applying to the capital at risk be differentiated by insurance or risk type, which may not exceed one per thousand. This result shall be multiplied by the ratio between these capital conservation funds and the totals or by the percentage established by the Superintendence, if that ratio is less than this percentage, which may not be more than 50%, which may be differentiated by insurance or risk class. (c) the total indebtedness of the company excluding the obligations arising from insurance under the preceding subparagraphs (A) and (B), multiplied by a fifteenth or for the lesser reason to be determined by the Superintendence, by virtue of the foregoing in the second indent of Article 15. The risk assets thus determined may not be lower than the minimum assets and shall be supported by the investments referred to in Article 21. ' 2. Substitute in Article 7 °, the guarianism "45,000" for "90,000", the two times it appears. (3) The following second indent is inserted in Article 9: " Such entities, whether or not registered in the Register of Securities referred to in Law No 18.045, of the Securities Market, shall be subject to the reporting obligations laid down in the artiuclo 10 ° of that law. " 4) Substitute in the articu 16, the guarism "60,000" for "120,000". (5) Amend Article 20a, as follows: (a) Intercalase in the first subparagraph, after the expression "Register which has the effect of the Superintedence", the expression " in accordance with the provisions of Title XIV of Law 18,045 of the Market ". (b) The following second indent shall be inserted in Article 20a: " The abovementioned Title XIV shall be applied in an additional manner to the classification of the obligations of insurance companies in all that is not specifically regulated, references to the issuer and the securities contained therein shall be deemed to be made to insurance companies and obligations to their policyholders, respectively. ' 6) Amend Article 21 as follows: (a) In the heading of its first indent, interspersed between the words "reinsurers" and the verbal form "shall", the following sentence, between commas (,): "without prejudice to the deposits that keep in current account". (b) Current points (d), (d), (e) (e), (f), (g), (h), (i), (ii), (k) and (l) become, respectively, (e), (f), (g) number 1, (g) number 2, (i), (j), (k), (l), (l), (m) and (n). (c) The current points (j) and (m). (d) Be replaced by the following: " (f) 1. (i) the allocation of funds for investment, development of enterprises and real estate, established in accordance with the law. 2. (a) the amount of the investment funds of securitised credits, classified in first class. 3. (e) (i) Intercalase in point (g) of point (g), following the expression 'first class action', the following expression: ' in accordance with law No 18.045, or the issuers of which are not available to them of such classifications, present in each of the last 3 years, covering financial expenses equal to or greater than those indicated annually by the Superintendence. "(ii) Replaced in point (g) (g), the term" except ", for the following:" No investment in shares ". (iii) In point (g) of point (1), a continuation of the expression "of a social character to its shareholders", replacing the semicolon (;) by a comma (,), the following expression: " or companies whose assets in more than 50% are constituted by shares and rights in entities of the types (f) Reposition the number 2 of point (g), by the following: " 2) shares of immovable property companies as defined in Decree Law No 3,500 of 1980, which may be acquired with the resources of the pension funds which are they are classified as first class in accordance with Law No 18.045, or whose issuers, without have such classifications, present in each of the last three years, covering financial expenses equal to or greater than those indicated annually by the Superintendence, and which are not among those of the preceding number; '. g) Replace point (l) by the following: "(l) non-expired credit for premiums resulting from the invalidity and survival insurance of decree law No 3,500 of 1980 for the companies of the second group;" (h) incorporate the following new point (d): " (d) Eligible mortgage securities authorised in Article 21a for the companies of the second (i) The following number 3 shall be incorporated in point (g): " 3. Shares in public limited liability companies which comply with the other requirements of point 1 of this point, except for the annual adjusted presence; ' (j) incorporate the following new point (h): " (h) investments abroad, in the following instruments or Assets: 1) 1. credit securities issued by foreign states and foreign central banks; 2. securities issued by foreign State-owned companies or agencies which have the guarantee of the State to which they belong; 3. credit securities issued by international banks; 4. credit securities guaranteed by foreign central banks or foreign banks; 5. certificates of bank deposits and time deposits issued by foreign banks; 6. bank acceptances, i.e., credit titles issued by third parties and secured by foreign banks; 7. convertible bonds or non-convertible bonds issued by corporations or corporations outside the country, and 8. shares issued by companies or corporations incorporated outside the country. Issuers or guarantees of the instruments indicated above may not have the status of a person related to the investment company. Investments may be made directly by acquiring the respective title, or by the acquisition of shares in foreign mutual funds, or equivalent instruments, provided that their investment and diversification policies allow them to comply with the instruments that make up their investment portfolio, the requirements of this law. In case of doubt, it will solve the Superintendence. The Superintendence, after consulting the Central Bank of Chile, by means of a general rule to be published in the Official Journal, shall establish the currencies in which they may be expressed and the countries in which such investments may be made, and the other characteristics, rules and procedures to which they are to be subject. In order to be representative of technical reserves and risk assets, the titles indicated in numbers 1 to 6 shall comply with the following requirements: (a) Being expressed in foreign currency; (b) having a high presence in foreign markets; (c) Its issuers or guarantees must be included in the list published by the Central Bank of Chile, pursuant to Article 48 of the Law Constitutional Organic of the Issuer Institute or in a general rule dictated by the Superintendence, after consulting the Central Bank, and (d) Not having been excluded by resolution of the Superintendence. For their part, the titles referred to in the preceding numbers 7 and 8 must comply with the following requirements: (a) Be transacted in domestic or foreign exchanges; and (b) Meet the conditions of classification, annual presence and other characteristics to be determined by a general rule dictated by the Superintendence. (II) In non-residential urban real estate located outside, for development or as a support for direct operations carried out outside the country, which shall be valued in such a way as to determine a general rule issued by the Superintendence. These investments shall be computed only for the purposes of the technical reserves generated by operations carried out by the relevant office in the respective country. The acquisition of the currencies necessary to make the investments referred to in this letter and its remittance abroad, as well as the return and liquidation of the capital and profits and their conversion to national or foreign currency, shall be subject to the rules that the Central Bank establishes in accordance with the powers conferred on it by its Organic Law. The Bank shall, by agreement of the Council, establish annually the maximum possible percentages to be invested within the limits laid down in Article 23 (h) (k). points (b), (c), (d), (d), (e) and (ee) ', as follows:' points (b), (c), (e) and (f) number 2 '. (l) Reposition the current penultimate indent by the following: " No representative investment of technical reserves and risk assets may be the instruments classified in categories D or E. For the investments referred to in the The following ceilings are set for the representative investments of technical reserves and risk assets: 40% in categories B and C of risk and 15% in category C risk. '. (m) Substitute in the current final indent of the expression: "in points (d), (e) and (ee)", as follows: "in points (e) and (g)". (n) Add to the current The following expression: "The instruments of point (f) shall be entered in the Register of Securities, in accordance with Law No 18.815." (n) The following new sub-paragraph is incorporated: " Companies may carry out operations for the coverage of the financial risk that may affect their investment portfolio and their asset and liability structure in the form of a standard of a general nature dictated by the Superintendence. '7) Amend Article 21a, in the form indicated: (a) In the first subparagraph, the following expression:' with which the assets referred to in Article 26 may be supported; and up to 30% of its technical reserves and risk assets '. b) Add in the last paragraph, following the expression "to Law No. 16,807", the following expression "or other laws". (8) Add in Article 22, the following final indent: " However, by means of general rules, the foregoing may be excepted from the prohibition set out in the preceding paragraph to the instruments granted as a guarantee or margin of coverage operations referred to in the final paragraph of Article 21. '; 9. Amend Article 23, in the form indicated: (a) The current points (d), (d), (e), (f), (g), (h), (i), (k) and (l), become (e), (e), (f), (g), (i), (j), (k), (l), (m) and (n). (b) The current points (j) and (m) above shall apply. (c) in point (e), replace the words "in point (e)" (d) (i) in point (f), replace the words "in their letter (d)" with the following: "in point (f)" (ii) in point (f), replace the expression " of capital (iii) In point (f), add at the end, replacing the semicolon (;) with a comma (,), the sentence: "and in the case of mutual fund shares, 5%;". (e) Replace the letter (g) for the following: " g) 40% of the total in those instruments falling within numbers 1, 2 and 3 of point (g) of the total; without prejudice to the foregoing, investments in those instruments of paragraph 3 (g) may not exceed 2% and shall be considered as representative of technical reserves and risk assets for a maximum period of 1 year; '(f) In point (i), replace the expression' in point (f) ', as follows:' in point (i) '. (g) In point (j), replace the expression 'in point (g)', as follows: 'in point (j)' (h) in point (k), replace the expression ' in its (h) ", as follows:" in point (k) "(i) In point (l), replace the words" in point (i) ", by the following: 'in point (l)' (j) in (m), replace the words 'in point (k)', as follows: 'in point (m)' (k) in point (n), replace the words 'in their letter', by the following: 'in point (n)'. (d) "(d) 30% of the total in those instruments falling within its point (d);" (m) The following new point (h): (h) (i) 15% of the total of the technical reserves referred to in Article 20 (1), (2) and (3) and the risk capital; and Total of the additional reserve referred to in Article 4 (4) of the same Article, in those instruments 1 to 8 of point (h) I). The instruments of numbers 7 and 8 of point (h) I) shall not exceed 5% of the technical reserves and the risk capital. The maximum investment in each country will correspond to half of the above limits. (ii) 3% of the total in those instruments referred to in point (h) (II); "(n) Substitute the final subparagraph, as follows:" Notwithstanding the above, the maximum amount of the investment of the instruments and assets referred to in points (d); (g), (2), and (k) the real estate investment fund shares in point (f) and the bonds and trade effects backed by transferable credit securities related to the real estate sector, shall not exceed 40% of the technical and financial reserves; (10) Amend Article 24, in the form set out in the following terms: (a) Current (d), (d), (e), (e), (e), (e), (e), (e), (e), (f), (g) (1), (g) (2) and (i). (b) The fourth subparagraph shall be deleted. (c) in point (a), replace the words "in points (a), (f), (g), (h), (i), (j), (k), (l) and (m)", as follows: "in points (a), (h) (i), numbers 1 and 2, (i), (j), (k), (l), (m) and (n)". (d) instruments falling within point (d) of that Article shall not be subject to limits for this purpose; '. (e) In point (e), replace the words' in point (d) 'with the following:' in the letter e '. (f) In point (e) of the third subparagraph of point (e), the words ' However, in the case of undertakings whose principal turn is the carrying out of leasing operations, the double the consolidated assets of the undertaking shall be used as a factor " However, in the case of companies whose principal turn is the performance of leasing operations and those referred to in Title XVIII of Law 18,045 of the Securities Market, this factor shall be defined by the Superintendence, not being able to be inferior to four times the consolidated patrimony of the station ". (g) In point (f), the term "Transferable funds" shall be replaced by the words "Investment Funds Mobiliary". (h) In point (f), number II, which becomes number III, the words "Real estate funds" shall be replaced by the words " The following expression: 'Real Estate Investment Fund' (i) In point (f), number III, which becomes number II, the expression 'Risk Capital Funds' shall be replaced by the following expression: 'Investment funds for business development'. (j) In point (g), number 1, replace the words "in (e)" with the following expression: "in point (g) (1)". (k) In point (g), number 2, replace the words 'in (ee)', by the following expression: 'in point (g) (2)' (l) in point (i), replace the words 'in points (b), (c), (d), (e) and (ee)', by the following expression: ' in points (b), (c), (e) and (g) ". (m) In the third subparagraph, replace the expression" in points (b), (c), (d), (e) and (ee) ", by the following expression:" in points (b), (c), (e) and (g) "(n) in the sixth indent, replace the expression" in point (d) of the first subparagraph ", by following expression: "in point (e) of the first indent". (n) Incorporate in point (f), the following numbers IV and V: " IV) Investment funds of securitised credits: 1. 5% of the investor's technical reserves and risk assets, or 2. 10% of the subscribed shares of that fund; (v) Short-term Fixed Income Funds: 1.-5% of the investor's technical reserves and risk assets, or 2.-10% of the subscribed shares of that fund; ". (o) (g) the following number 3: " 3. Investments in the instruments referred to in Article 21 (g) (3) issued by the same public limited liability company may not exceed 2% of the technical reserves and the risk assets, nor shall they exceed 8% of their subscribed shares. These limits shall be reduced by half in the case of shares of banks and financial institutions; '. (p) The following new point (h) is incorporated: " (h) (i) investments in the instruments falling within numbers (3) to (7) of (h) (i) of the Article 21 issued by the same institution may not exceed 2% of the technical reserves and the risk capital; (ii) investments in the instruments referred to in point (h) (h) (I) of that Article issued by the same institution. The institution may not exceed 1% of the technical reserves and the risk capital, nor shall it exceed 8% of its shares (11) Amend Article 24a, as follows: (a) replace the term "in the case of investments in points (b), (c), (d), (d), (e) and (e) of Article 21", "by the following expression:" in the case of investments in points (b), (c), (e) and (f) of Article 21, classification or, in the case of investments in point (g) of the same Article, it is produced exclusively by a change in classification or by a decrease in the rate of cover for financial expenditure, as the case may be, " (b) continuation of the expression "to count from the date of the change", the following expression: "or decrease". (c) The expression "shall maintain the diversification factor corresponding to the classification prior to the change of classification", as follows: " they shall maintain the diversification factor existing prior to the change of classification or decrease in the index. " (d) Add the following final point: " To investments abroad as referred to in Article 21, which shall cease to comply with the requirements set out in that Article to be representative of technical reserves and risk assets, (12) Add the following Article 44a: " Article 44a.-They may not participate in the activities governed by this law as directors, managers, administrators, proxies or legal representatives of a insurer, reinsurer, insurance broker, casualty liquidator or (a) the following persons shall be employed by mortgage mutual funds or by the insurance broker or casualty liquidator: (a) those who are prosecuted or convicted of crimes that are punishable by a penalty or for the offences referred to in this law; (b) failed to be rehabilitated or those who have a prohibition or inability to trade; and (c) those who have been punished by the Superintendence with the revocation of their registration in any of the records that it carries under this law or other laws, or those who have been administrators, directors or legal representatives of a legal person sanctioned in the same way or with the revocation of their authorization of existence, unless they have saved their responsibility in the form that (13) Substitute Article 45, by the following: " Article 45.-The Superintendence may penalize the sales agents of the companies and the brokers. of insurance in the cases and the form laid down in Article 28 of Decree Law No 3,538 of 1980. ' (14) The following Article 49 shall be inserted: " Article 49.-The lesser of the terms of the term of imprisonment shall be less than the minimum: (a) Those who maliciously provide false antecedents or certify false facts to the Superintendence, in respect of a person or entity audited in accordance with this law; and (b) accountants and auditors who falsely rule on the financial situation of a person or entity audited in accordance with this law. ' 15) Replace the first paragraph of Article 53, as follows: " Article 53.-The classifications referred to in Article 21 shall be carried out by two risk classification entities in the form provided for in Law No 18.045 of the Securities Market. '; 16. In Article 55, replace "(d)" by "(e)". (17) Amend Article 57, as follows: (a) Replace the first subparagraph, by the following points: " Article 57.-Insurance may be contracted directly with the insurance undertaking through its sales agents, or through the intermediary of independent insurance brokers. Sales agents may be persons engaged in the marketing or sale of insurance on behalf of a company, not being able to provide such services in more than one insurance undertaking in each group of insurance. Such agents must be registered in the special register to be carried out by the Superintendency or the insurance undertaking, as determined by general rule; they shall be subject to their audit, and the same requirements may be required established for the insurance brokers in the following Articles 58 and 59. The insurance undertaking shall be liable for any infringements, errors or omissions in which sales agents may incur in the performance of their activities. "(b) The following final points shall be added:" The runners shall deliver to all your clients information regarding the diversification of their businesses and the companies with which they work, in the way that the Superintendence determines. Insurance companies shall be prohibited from providing, directly or indirectly, to the brokers which are intermediary insurance contracts referred to in Decree Law No 3,500 of 1980, incentives to be determined on the basis of the volume of the (18) Amend Article 58, in the following form: (a) Replace the first subparagraph, by the following: " Article 58.-In order to carry out its activity, insurance brokers shall be required to carry out their activities. Register with the Register that the Superintendence takes effect and comply with the following requirements: (a) to be Chilean or foreign-based in Chile with a foreign-language card a day and to be older; (b) to have a commercial background; (c) to establish sufficient knowledge of the insurance trade, in the form available to it Superintendence by general rule and, in addition, being in possession of a secondary education licence or equivalent studies; d) accrediting the hiring of an insurance policy to determine the Superintendence for an amount not less than the highest sum between 500 units of promotion or 30% of the net premium for insurance contracts in the year immediately preceding, with a maximum of 60,000 units of promotion, in order to respond to the correct and complete fulfilment of all the obligations arising from its activity and, especially, of the damages that may cause to the insured hire for their intermission. However, in the case of premiums for life insurance, the percentage used to determine the sum to be secured will be 30% of the first 15 000 units of premium promotion for such income and only 10% for the excess over this figure, and (e) In the case of legal persons, having been legally constituted in Chile with this specific object and crediting the procurement of the policy referred to in the preceding letter. In addition, their administrators and legal representatives must meet the required requirements before, except for the previous letter, and not register the inabilities provided for in this law. Administrators, legal representatives or employees of the legal person may not independently exercise insurance brokerage, or work for an insurance company or for another person engaged in insurance brokerage. " b) Delete the second indent. (c) The following points are added: " Such a register may be subdivided into classes or types of insurance, in the form determined by the Superintendence and the insurance brokers may exercise as such in one or all of them. Persons participating in insurance intermediation on behalf of the brokers may be required to meet the same requirements as the sales agents of the companies and shall be subject to the same penalties as the latter. Insurance brokers shall keep a record of the persons participating in the intermediation on their own account, corresponding to the verification of compliance with the requirements set out for them. The persons referred to in Article 44a (a), (b) and (c) and in points (a) and (b) of Article 44 (a) and (b) may not have a holding directly or indirectly involving more than 15% of the ownership of a company engaged in insurance brokerage. 59, the runners who will be suspended from their duties by resolution of the Superintendence and the administrators and legal representatives of a running society that will be in such situation. In the event of the inability to take part, they shall be deprived of the exercise of the social political rights deriving from it by the length of time of the inability. ' 19) Substitute Article 59, by the following: " Article 59.-They may not be insurance brokers: (a) directors, managers, legal representatives or proxies of an insurance or reinsurance undertaking, claims liquidators, administrators or legal representatives of a claims settlement company, and workers of any of the above entities, and (b) the directors, managers, proxies or employees of a pension fund manager, persons who perform, in any form or quality, the activity of promotion and incorporation of members of a pension fund manager and, in this case, those who have been eliminated The Registry that carries the Superintendence of the branch, exclusively with respect to the intermediation of insurance of the retirement life. The persons referred to in this letter may not be administrators, legal representatives or employees of a legal person engaged in such activity. ' 20) Replace Article 62 (a), by the following: " (a) Meet the requirements (a) and (b) of Article 58; be in possession of the average education licence or equivalent studies; prove sufficient knowledge of the insurance trade in the form provided by the Superintendence by means of a rule of general character, and not to be in any of the circumstances referred to in Article 44a; '; 21. Articles 26, 36 and 52 shall be deleted. 22. In the final paragraph of Article 71, the words "Article 64 of Law No 18,045", as follows: "Article 46 of Decree Law No 3,538 of 1980". Article 6-The following amendments to Decree Law No 1,092 of 1975 on Mutual Insurance: (a) Substitute (d), (e), (f), (g) and (h) of Article 4 (e), respectively, as follows: (e) 10% in respect of shares of funds of the investment, real estate, enterprise development and securitised credits established according to the law. The shares of securitised credit investment funds shall be classified as first class in accordance with law No 18.045; (f) 40% in shares of open-ended public limited companies, the annual adjusted presence of which is equal to or greater than 10%, which are classified as first class in accordance with Law No 18.045, or whose issuers, without having such classifications, present in each of the last three years, financial expenses equal to or higher than those of the Annually marked by the Superintendence. It shall not be invested in shares of pension funds or mutual funds, of pension institutions, of insurance institutions, of sports or educational companies and of those whose object is the the provision of benefits of a social nature to its shareholders, or to companies whose assets in more than 50% are constituted by shares and rights in entities of the newly described types. (g) 10% in shares of immovable property companies as defined in Decree Law No 3,500 of 1980, which may be acquired with the resources of the pension funds, which are classified as first class in accordance with the law N ° 18.045, or whose issuers, without having such classifications, present in each of the last three years, covering financial expenses equal to or greater than those indicated annually by the Superintendence, and which are not located between (h) 10% in shares of mutual funds; (i) 40% in urban real estate, and (j) 80% in the case of loans of any kind to their holders of non-settled life policies. '(b) Substitute points (e), (f), (g), (h), (i), (j), (k) and (l) of Article 5 (e), respectively, by the following:' (e) 50% in shares of open anonymous companies, the an annual adjusted presence is equal to or greater than 10%, which are classified as first class in accordance with Law No 18.045, or whose issuers, without having such classifications, present in each of the last three years, coverage of financial expenses equal to or higher than those reported annually by the Superintendence; (f) 10% in shares in real estate companies as defined in Decree Law No 3,500 of 1980, which may be acquired with the resources of the pension funds, which are classified as first class in accordance with Law No 18.045; or whose issuers, without having any such classifications, present in each of the last three years, financial expenses equal to or greater than those indicated annually by the Superintendence, and which are not among those of the (g) 10% in shares of mutual funds; (h) 90% in urban real estate; (i) 30% in advances or loans to life policy holders; (j) 15% in movable, useful and equipment for their own use; (k) 10% in cash and banks; (l) 40% in loans of any kind to holders of non-settled life policies, and (m) 20% in other offer securities public to authorize the Superintendence. " Article 7-The following amendment to the decree with force of law N ° 101, of the Ministry of Labour and Social Welfare, of 1980: -Replaced Article 17, by the following: " Article 17.-The Administrative Funds of the Pensions which will be in breach of the law, (a) the laws, regulations and other rules governing them, or in breach of the instructions and orders given to them by the Superintendence, in the exercise of their legal powers, may be the subject of the application by the latter, without prejudice to the established in other legal or regulatory bodies, of one or more of the following sanctions: 1.-Censorship; 2.-Fine for tax benefit, up to a global amount per Administrator equivalent to a thousand units of promotion. In the case of repeated infringements of the same nature, a fine of up to five times the maximum amount previously expressed, and 3.-Revocation of authorization of existence of the Administrator may be applied. The application of this sanction will proceed in cases of serious infringement of law; in those cases where the law expressly provides it, and when the Administrator has been repeatedly sanctioned for having incurred one or more of the acts or Omissions referred to in Article 154 of Decree Law No 3,500 of 1980. Likewise, the Superintendence may apply this sanction to the subsidiaries of the Administrator or to dispose of their investments made in or through them, when they do not comply with the provisions of the fifth indent of the article 23 of Decree Law No. 3,500 of 1980. Where the penalties of numbers 1 and 2 apply to this article, the Superintendence may bring to the attention of the Shareholders ' Meeting the infringements, breaches or acts in which the directors or managers have incurred, in order to he can remove them from his posts if he considers it appropriate, without prejudice to the exercise of the relevant judicial proceedings. The call to this Shareholders ' Meeting must be made by the Board within the deadline set by the Superintendence, and may be cited by itself if it deems it necessary. " Article 8.-Introduces the following amendments to the decree with force of law N ° 252, 1960, on General Law of Banks: 1.-Article 83: (a) Replace the last indent of the number 4 ° bis, by the following: " (a) these loans are provided by banks, financial corporations and other entities governed by special laws enabling them to invest. The administration of such claims shall in such cases be entrusted to a bank or financial company or to one of the mortgage mutual-managing agents referred to in Article 21a of the decree with force of law N ° 251 of 1931, or any other entity authorised by law to administer endurable mortgage securities. '(b) Amend point (a) of the number 11a), as follows: Add to the expression' investment funds ', the following sentence:' in the conditions set by the Superintendence. " and replace the point followed (.) with a comma (,). 2.-To Article 84: Replace the first indent of No 1, by the following: " 1.-You may not grant credits, directly or indirectly, to the same natural or legal person, for a sum exceeding 5% of your paid capital and reserves. This limit shall be raised to 10%, if the excess corresponds to credits granted in foreign currency for exports or to credits, in Chilean or foreign currency, for the financing of fiscal public works executed by the system of The concession provided for in the decree with force of law N ° 164, 1991, of the Ministry of Public Works, provided that in the respective credit operation two or more banks or financial companies that have signed a credit agreement with the project builder or dealership. The minimum capital, guarantees and other requirements that will be required of the construction company or concessionaire to carry out these regulations will be determined by a regulation, which will be jointly issued by the Ministry of Finance and the Ministry of Public Works. operations. '; Article 9.-In the event that, pursuant to the provisions of Article 4 of this Law, a Pension Fund shall be exceeded by the maximum investment limits determined in accordance with the provisions of Articles 45, 45, 47, 47 and 47 bis of Decree Law No 3,500 of 1980, the excess of investment produced may be maintained for an indefinite period. Article 10.-Substitute Article 17 of Law No 18.091, as follows: " Article 17.-Establishment for the staff of the Superintendency of Banks and Financial Institutions a monthly allocation of variable percentage, according to the the extent to which the employee belongs and which shall be calculated on the basis of the basic salary and the allocation of the audit which corresponds to it, in accordance with Article 19 of Decree Law No 3,551 of 1981. The percentage shall be fixed annually by the supreme decree of the Ministry of Finance and may be increased or reduced by the same procedure. The percentage increase in this allocation shall not exceed 200% or exceed the proportion representing the allocation of the tax on the basic salary referred to for each step. For this purpose, the Superintendent shall report annually to the Ministry of Finance on this matter. When fixing the percentages of this allocation, the Minister of Finance shall take into account the available background on the remuneration payable for functions that are homologable to those carried out in the Superintendents, both in the sector public as in the private sector. The expenditure representing this allocation shall be made from the resources provided by this Service to its remuneration annually. ' Article 11.-The allocation laid down in Article 17 of Law No 18,091 shall also apply to the staff of the Superintendents of Pension Funds and the Securities and Insurance Funds, and shall be determined in the same manner. For this purpose, the respective Superintendents shall report annually to the Ministry of Finance on this matter. The expenditure that represents this allocation for each Service will be made from the resources that each of them annually finances their remuneration. Article 12.-Rule 6 of Law No 18,646. Article 13.-In the case of open public limited companies subject to Title XII of Decree Law No 3,500 of 1980, whose shares at the date of publication of this law could be acquired by the Pension Funds, their concentration The maximum permitted shall be thirty-two per cent, or that which expressly states its statutes. TRANSITIONAL PROVISIONS Article 1.-The President of the Republic shall be empowered to fix, within a period of one year, the date of publication of this law, the consolidated texts of Law No 18.045, of the Securities Market, of the Decree Law No. 3,500 of 1980 on Pension Funds and of Decree Law No. 251 of 1931 on Insurance Companies. In the exercise of this power, it may recast, coordinate and systematize the provisions of such legal bodies and introduce formal changes, in terms of numbering of articles, qualifications, location of precepts and others of similar nature. Article 2.-Risk classification institutions shall have a period of six months in order to comply with the asset requirement laid down in Article 72, and within two years to comply with the income dispersion requirement. by Article 82a. Article 3.-The Chambers of Compensation in current operation, will have a period of six months to count from the date of publication of this law, in order to adapt its statutes and regulations to the provisions of Title XIX. Article 4.-The stock exchanges existing in the country must present to the Superintendency, the draft internal regulations governing the matters contained in Article 44 (g) of Law No 18,045, within the period of four months counted from the date of publication of this law. Article 5.-The President of the Republic shall have a one-year period of time to make changes to the Rules of the Mutual Funds and the Rules of Procedure of the Investment Funds Act. Article 6.-The managing companies of funds shall have a period of one year in order to comply with the property, investment and legal requirements laid down by the amendments introduced by this law, to Decree Law No 1,328, 1976, and to Law No 18.815, be as to their own organization as to the funds they administer. Article 7.-The amendments which are introduced by this law to Article 45 (l) of Decree Law No 3,500 of 1980 shall apply within a period of one year from the date of its publication. Article 8.-As long as the Superintendency of the Pension Fund Administrators and the Central Bank of Chile do not report the necessary parameters for the calculation of the investment limits established in this law, they will continue to limits established prior to its validity. In addition, the current form of project presentation and the classification of debt instruments in which the Pension Funds can invest, and the risk factors associated with each category, will be maintained as the Commission Classifier has not adopted an agreement with respect to all of them, in consideration of the reports and background of classification provided under article 108 of Decree Law No. 3,500 of 1980. In turn, the current form of project presentation and approval of actions will be maintained, as long as the Classification of Risk Commission has not ruled on all of them, in the form set out in Article 106 of the decree. Law No 3,500 of 1980 and the Superintendents of Securities and Insurance and of Banks and Financial Institutions have not issued the general procedures for the classification of shares in the form provided for in Article 92 of Law No 18,045. For its part, the methodology in force for the classification or approval of the instruments referred to in points (h), (i), (j), (l) when referring to debt instruments, and (m), all of Article 45 of Decree Law No 3,500 of 1980 shall be maintained. as long as the Classification Commission has not established the approval procedures and the equivalences with the classifications made by international qualifying entities referred to in Article 99 (c) and (d), and adopts the correspodente agreement. For these purposes, the Classifying Commission shall have a period of 90 days from the date of publication of this law, which shall be followed by the issuers and the administrators, if appropriate, with the same time limit for submitting the Commission to the Commission. the information required by the latter for the application of the said procedures. The Qualifying Commission shall adopt its agreements in accordance with the procedures laid down in this Law at the same time for each group of instruments referred to in the preceding paragraphs within 90 days of the date of the date on which the conditions laid down respectively are met. For the purposes of fixing the minimum requirements referred to in Article 106 of Decree Law No 3,500 of 1980, the Classification Commission shall have a period of 60 days from the date of publication of this law, in order to submit its proposal. to the Superintendence of Administrative Pension Funds, and 15 days to make corrections or new proposals, in case of objections. Once the favourable report is received, the minimum requirements shall be published in the Official Journal within five working days. The Risk Classification Commission shall have a period of 120 days for the publication of the criteria and procedures governing the approval or classification of the new instruments referred to in points (l), (n) and (n) and operations. referred to in Article 45 (o) of Decree Law No 3,500 of 1980. This period shall be governed by the date on which the rules necessary for that purpose, laid down by law, have been given in each case. Article 9.-The limited liability companies subject to the Title of Decree Law No. 3,500 of 1980, whose shares are approved for the investment of the resources of the Pension Funds to the date of publication of this law, shall have a period of time a maximum of one year to amend its statutes and deconcentration undertakings in accordance with the rules laid down in that Title XII. For such purposes it shall be necessary to vote according to the absolute majority of the shares issued with the right to vote of the respective company. As long as such changes are not made, the concentration factors resulting from the company's current statutes and the effective accounting assets shall be governed by the Superintendency of Securities and Insurance or of the Banks Financial Institutions, if any. Article 10.-The Administrative Pension Funds shall comply with the rules on the election of directors, contained in Article 156 of Decree Law No. 3,500 of 1980, from the first ordinary meeting of shareholders that is After the entry into force of this law, which includes the subjects to be dealt with, the election of directors. Article 11.-The provisions of Article 5 of this Law, which amend the decree with force of Law No. 251 of 1931, shall enter into force 90 days after its publication in the Official Journal. Article 12.-The insurance and reinsurance entities in current operation must complete the assets referred to in Articles 7 and 16 of the decree with force of law N ° 251, 1931, within the time limit of 36 months from the date of publication of this law. These companies will submit to the Superintendency a capitalization plan within 180 days, counted from the same date. Failure to submit the plan or failure to comply with it, once approved, shall be sanctioned in accordance with Article 44 of the decree with force of law N ° 251, of 1931. If any entity does not want the minimum assets within the period specified in the first paragraph of this article, it shall be dissolved by the sole ministry of law, proceeding to its forced liquidation in accordance with Article 75 of the decree with force of law N ° 251, of 1931. Article 13.-The insurance and reinsurance entities shall have one year to count on the validity of this law in order to adjust their current investments in respect of the maximum investment limits in classified instruments. In categories B and C of risk, in the third indent of article 21 of the decree with force of law N ° 251, of 1931. Article 14.-The greatest expenditure arising from the implementation of the allocations referred to in Articles Tenth and Eleventh of this Law in 1994 shall be financed from the budgets of the Superintendency of Banks. e Financial Institutions, the Superintendency of Securities and Insurance and the Superintendence of Pension Fund Administrators, without prejudice to the fact that the part of the largest expenditure that cannot be financed by these budgets, will be to item 50-01-03-25-33.104 of the Public Treasury Item of the Nation's Budget. Fifteenth.-During the first year of validity of the amendments introduced to Decree Law No 3,500 of 1980, the percentage of the value of the Fund referred to in the seventh, eighth, 11th and 12th points of Article 47 shall be 6.5 percent. This percentage will decrease by 0.5 percent for each following year to five percent. " Having complied with the provisions of Article 82 of the Constitution 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, 7 March 1994.-PATRICIO AYLWIN AZOCAR, President of the Republic.-Alejandro Foxley Rioseco, Minister of Finance.-René Cortazar Sanz, Minister of Labour and Social Welfare. What I transcribe to you for your knowledge.-José Pablo Arellano Marin, Undersecretary of Finance. CONSTITUTIONAL COURT Draft Law amending the laws of the Securities Market, Administration of Mutual Funds, Investment Funds, Pension Funds, Insurance Companies, and other matters indicated by The Registrar of the Court Constitutional, who subscribes, certifies that the Honorable Senate sent the bill enunciated in the rubric, approved by the National Congress, so that this Tribunal would exercise the control of its constitutionality, and that by a sentence of 7 of March 1994, stated: 1. That the first and second points of Article 94 (12), added by point (d) of Article 4 (17) of the project which introduces amendments to Decree Law No 3,500 of 1980; and (u), added to Article 3, by the number 1 of the Seventh Article that introduces amendments to the decree with force of law N ° 101, of the Ministry of Labor and Social Welfare, of 1980, are unconstitutional, and therefore must be removed from their text. 2. That the following provisions of the draft are also of an organic nature, and unconstitutional, as explained in recital 16 of this judgment, and should be deleted from their text:-Article 2: That it introduces modifications to the Decree Law No 1,328 of 1976 on the Administration of Mutual Funds: Third and fourth of the number 9, and number 10, added by point (iii) to Article 13 by number 5. -Article 4: It introduces amendments to Decree Law No. 3,500 of 1980: Article 44, first indent, replaced by the number 9 (a). Point (n) of Article 45, second indent, replaced by the number 10. Point 9, including numbers 1 to 12, of Article 45, replaced by the number 10. In Article 45 (1) of Article 45, replaced by the number 10, the final sentence says: ' The Central Bank of Chile may exclude from the determination of the maximum investment percentages referred to in this paragraph, the instruments of each type referred to in point (n). '; Point (d) of the third indent of Article 12 (d) in Article 94, by number 17; That the following provisions of the draft submitted are constitutional:-Article 1: That it introduces amendments to Law No. 18,045 of the Market of Values, published in the Official Journal of 22 October 1981: Article 136-final point-, and Article 182, as added by point (b). -Article 2: It introduces amendments to Decree Law No. 1.328 of 1976 on the Administration of Mutual Funds: The final point of the number 9 added by Article 13 (iii) of Article 13. -Article 4: It introduces amendments to Decree Law No 3,500 of 1980: Article 44, second indent, replaced by the number 9 (a). Article 45 (10th, 20th and final), replaced by the number 10. First, third, fifteenth, twenty-third (b), twenty-fifth (b), twenty-fifth, trigesimost and trigesimosecond of Article 47, replaced by the number 13. Article 49, replaced by the number 16. Final paragraph of point (f) of Article 98, which is replaced by point (a) of number 18. Article 18 of Title XIII "Transitional Provisions", replaced by the number 44. -Article 5: Which introduces amendments to the decree with force of law N ° 251, 1931: Second and third subparagraphs of point (h), i (a) ncorporated by point (j) of number 6, which amends Article 21. 4. That it is not for the Court to rule on Article 155 (g), added by Article 1 (b), which introduces amendments to Law No 18,045 of the Stock Market, published in the Official Journal of 22 October 1981, of the draft submitted, for dealing with matters that are not their own constitutional organic law. Santiago, March 7, 1994.-Rafael Larraín Cruz, Secretary.