Act 35 Of 1993

Original Language Title: LEY 35 de 1993

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Law 35 of 1993 (Jan. 5)
Official Gazette No. 40,710, of January 5, 1993
Whereby general rules are issued and listed in them the objectives and criteria which must be held the national government to regulate financial activities, securities and insurance and any other related management and investment of funds raised from the public and other provisions in financial and insurance Summary

Term Notes
THE CONGRESS OF COLOMBIA,
DECREES: CHAPTER I.

INTERVENTION IN FINANCIAL ACTIVITIES AND INSURANCE MARKET
ARTICLE 1o. OBJECTIVES OF THE INTERVENTION. Under Article 150, paragraph 19 literal d) of the Constitution be for the Government to exercise intervention in financial activities, insurance, stock market and other activities related to the management, use and investment of resources collected from the public, subject to the following objectives and criteria:
a. That the development of such activities is consistent with the public interest;
B. In the operation of such activities are appropriately will safeguard the interests of the users of the services offered by entities subject to intervention and, preferably, the savers, depositors, policyholders and investors;
C. Entities that perform these activities have appropriate levels of heritage to safeguard its solvency;
D. Operations of entities subject to the intervention carried out in adequate conditions of security and transparency;
E. Promote free competition and efficiency by entities whose purpose is to develop such activities;
F. Democratize credit, so that people can not obtain, directly or indirectly, unlimited access to credit for each institution and avoid excessive risk concentration;
G. That the market develops in the broader conditions of transparency, competitiveness and security, as well as propender because there are increasing levels of savings and private investment;
H. Protect and promote the development of financial institutions of the solidarity economy.
I. That the financial system has a regulatory framework in which each type of institution can compete with others under conditions of fairness and balance according to the nature of its operations.
PARÁGRAFO. The National Government shall exercise the powers under this Act based on the principle of economy and preserving stability in regulation. Effective Notes

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Article 2.
. POLICY COORDINATION. In the exercise of intervention regulated by this Act, the Government will take into account the objectives of monetary, exchange and credit policy and general economic policy. Effective Notes

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ARTICLE 3. INSTRUMENTS OF INTERVENTION. Developing the provisions of article 1., The Government shall have the following functions intervention in relation to financial institutions and insurance companies subject to the control and surveillance of the Banking Superintendency and, in general, to the entities whose activities consist of the management, use and investment of funds raised from the public:
a. Authorize operations that can perform the entities subject to intervention in developing its main purpose permitted by law;
B. Set deadlines of authorized operations and kinds and amounts of the guarantees required to carry them out; Effective Jurisprudence


C. Establish the standards required for entities subject to intervention to maintain adequate levels of equity, according to the various risks associated with its activity; Effective Jurisprudence


D. Limit or prohibit, for reasons of financial security, the granting of guarantees by the entities subject to intervention and even granting individual credit insurance; Effective Jurisprudence


E. Determine the solvency margin, the minimum regulatory capital and investment regime reserves of insurance companies under their respective laws;
F. Adopt rules designed to ensure that operations authorized entities for intervention are made subject to the nature of such operations and the main purpose authorized the respective entity;
G. Determine the rules of disclosure of the financial condition of the entities subject to intervention and the responsibility for them and their managers about the veracity and accuracy of the relevant information;

H. Make rules that expand prudential regulation mechanisms in order to operate in a comprehensive and consolidated manner and are monitored on such bases. This power is exercised primarily in order to integrate the supervision of subsidiaries outside credit institutions. PARAGRAPH 1.
. Developing enshrined in paragraph a) of this section shall not be reduced rates currently authorized by current regulations to entities subject to intervention or authorized operations corresponding to the main object of operations faculties specialized entities. In addition, the powers shall be exercised enshrined there, after having informed the Board of the Bank of the Republic, so that this body can rule on its impact on policy office. PARAGRAPH 2.
. The functions of assistance provided for in this article by the National Government shall be exercised without prejudice to the powers conferred by the Constitution and the Law to the Board of the Bank of the Republic. PARAGRAPH 3.
. The National Government shall issue the necessary rules for the implementation of the provisions issued under this Article, taking into account the specific nature of cooperative financial institutions. Effective Notes

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ARTICLE 4. INTERVENTION IN THE STOCK MARKET. Effective Notes

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The 5th ITEM. Democratization of credit. The national government will intervene to promote the democratization of credit. To this end it shall entities subject to maximum concentration of credit risk for each natural or juridical person, directly or indirectly intervention limits and the rules for their calculation.
In addition, the Government may issue regulations in order to prevent the granting of credit by institutions subject to inspection and surveillance of the Banking Superintendency discriminatory practices related to sex, religion, political affiliation are used and race or other than those directly linked to the risk of the operation and repayment capacity of the applicant situations.
For this same purpose, the Government may define and prohibit practices which constitute reciprocity requirement in order to prevent through the same access to credit or other financial services unjustifiably prevented. Effective Notes

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ARTICLE 6o. ORIENTATION OF THE FINANCIAL SYSTEM RESOURCES. The Government may temporarily determine the amount or minimum proportion of the resources in the form of loans or investments, should allocate credit institutions to different sectors or economic activities and local authorities, where there are market failures or the purpose of democratizing credit. In addition, specify the conditions and terms will be fulfilled this obligation.
In the exercise of this power of intervention, the Government should seek the fulfillment of the obligations imposed common to the different types of credit institutions, attending in any case the nature of the operations of each from them.
However, this power may only be used to supplement resources systems and sectoral support funding created by law, such as the system of social housing and sectors defined as priorities in the Development Plan. In any case, this mechanism may only commit resources based on this power ratio, together, up to 30% of the total assets of each class of credit institution. PARAGRAPH 1.
. The national government should act in coordination with the Board of the Bank of the Republic for the exercise of this power. PARAGRAPH 2.
. When specific investment loans or credit institutions destined for social housing, the Government should do so on equal terms to all entities that grant long-term mortgage loans for housing limits are set. Effective Notes

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ARTICLE 7. SANCTIONS. The Government, in exercise of the function of intervention, it may bring the penalties applicable to infringements of the provisions issued in exercise of its function of regulating financial activities, insurance, securities market and related management , use and investment of funds raised from the public. In developing this ability only financial penalties may be imposed, without prejudice to the adoption of other administrative measures that may be applicable in accordance with the law. Effective Notes

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Article 8. EXERCISE OF POWERS. The functions of intervention enshrined in articles 3., The 5th., 6o. and 7th. They shall be exercised by the national government through the Ministry of Finance and Public Credit.
However, the Government shall issue the provisions necessary in developing these powers before June 30, 1993, without prejudice to the subsequent exercise of such powers when pursuant to law. Effective Jurisprudence


Article 9. LIMITS ON THE POWERS OF INTERVENTION. In exercise of the regulatory powers granted in this Act, the Government may not amend the rules relating to the structure of the financial system, the constitution, the main object, and partnerships, and causal and dissolution conditions, takeover and liquidation of entities authorized to develop financial activities, including cooperatives developed by financial institutions, insurance, securities and other entities whose activity is related to the management, use and investment of funds collected from the public.
In the application of this article, the Government can not ignore the nature and principles of cooperatives own entities authorized to develop financial activities, insurance, securities, or any activities that relate to the management, use and investment of resources captured the public without prejudice to compliance with the standards of prudential regulation that apply to financial, securities and insurance companies.
The provisions of this Article shall not preclude the national government issued rules aimed at regulating the formation of companies when during such constitution or as a precursor to it a public offering of securities is made. Effective Notes

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CHAPTER II.
INSPECTION, MONITORING AND CONTROL IN FINANCIAL ACTIVITIES, INSURANCE AND STOCK MARKET

ARTICLE 10. INSPECTION, MONITORING AND CONTROL OF FINANCIAL ACTIVITIES, INSURANCE AND STOCK MARKET. The President of the Republic, through the Banking and Securities, within the scope of their respective powers, shall perform the inspection, supervision and control over the persons performing financial activities, insurance, securities and any other related management , use and investment of funds raised from the public, on the same terms and conditions under which such functions currently exercised in accordance with the existing legislation. In addition, the Banking and Securities monitor its competence in compliance with the regulations issued in implementation of this Act.
Cooperative bodies higher degree of financial nature will remain under the control and supervision of the Superintendency bank. Control of other credit union, first grade, will remain in charge of the National Administrative Department of Cooperatives, DANCOOP. As of 1
. February 1993 will correspond to the National Administrative Department of Cooperatives inspection and surveillance of Mutual Investment Funds that are not managed by trust companies, according to the rules for the purpose by the National Government. Those who are managed by such companies will not be subject to permanent control of the state. The recognition of the legal personality of Mutual Investment Funds that are formed from the effective date of this Act through the simple registration of the Organic Act of incorporation in the National Administrative Department of Cooperatives, provided they conform to the laws. However, those who had begun their process of incorporation to the effective date of this Act continue to be governed, for these purposes, by previous standards. Effective Notes

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ARTICLE 11 SURVEILLANCE COMPANIES NOT collect savings. Thereafter, inspection, monitoring and control of companies purchasing portfolio (factoring) will not be carried out by the Banking Superintendency, but is subject to the general provisions on monitoring and control of commercial companies and issue and offer values. These companies remain subject to the prohibition of capturing public savings in mass and normal. Effective Notes


The activity of insurance intermediaries continue to be subject to the control and surveillance of the Banking Superintendency, which shall perform such functions in the current terms regarding brokerages and insurance companies reinsurance; in relation to other insurance intermediaries such functions shall be performed with the exception of those whose amount of commission due is less than the amount indicated by the National Government periodically. Effective Jurisprudence

PARAGRAPH 1.
. Credit institutions may only make or hold investments in entities referred to in this article as are legally authorized to do so, as long as the entity receiving the investment to maintain its sole purpose. PARAGRAPH 2.
. While not otherwise specified, the persons and entities referred to in this Article shall continue to be subject to the regulations in force at the time of enactment of this Act, under the terms specified in the regulations. This also set a program for replacing the current system of inspection and supervision shall not exceed one year. PARAGRAPH 3.
. However, the Banking Superintendency may impose on insurance intermediaries appropriate sanctions for infringements which has come to check, but are intermediaries not subject to their control and surveillance. Effective Jurisprudence


ARTICLE 12. LEASING. Within the year following the effective date of this Act year, leasing companies or leasing existing may become commercial finance companies subject to the rules of the Organic Statute of the Financial System.
Companies that are organized as a result of the conversion and the other to be established specialized leasing may make active credit operations only up to the maximum percentage point to the national government.
The existing commercial finance companies that constitute or may make in turn leasing operations, since 1. July 1993, up to the maximum percentage point to the national government.
The maximum percentage of leasing transactions to authorize commercial finance companies will be equal to that fixed to specialized leasing companies for credit active operations. PARAGRAPH 1.
. The leasing companies or leasing opting for conversion regulated in this Article shall have a period of three years to prove compliance with the minimum capital required for the establishment of commercial finance companies in accordance with the law in the year 1992 ; the missing value to achieve that minimum capital shall be subscribed and paid as follows: no less than 40% before 30 April 1994; not less than 30% before 30 April 1995 and the balance no later than 30 April 1996. PARAGRAPH 2.
. The commercial finance companies specializing in leasing can use in their commercial name the term "Leasing" or "Leasing". PARAGRAPH 3.
. Existing companies leasing do not become under this Article shall be dissolved and be settled. Effective Jurisprudence


ARTICLE 13. POSSESSION OF OFFICIALS. Henceforth only they are required to take an oath before possession and the Banking Superintendency members of boards or boards of directors, statutory auditors and the legal representatives of institutions supervised except branch managers. Effective Jurisprudence


ARTICLE 14. CONTROL OF STATUTORY REFORMS. From the effective date of this Act, amendments to the statutes of the entities subject to the supervision of the Banking and Securities not require prior authorization, subject to the special authorizations that these entities must provide according to their faculties. However, the statutory rules shall be reported to the appropriate body as soon as they are approved for the fulfillment of their tasks of inspection and control and, if such is the case, it may order the respective amendments when they depart from the law. || | Jurisprudence Effective

ARTICLE 15.
TITLING. The Banking and Securities, as appropriate, monitor within their legal powers securitization processes running the entities under its control.
The transfer of guarantees that protect loans or acquired by financial institutions and insurance companies improved means representative with the transfer of title of the obligation, in the event that such transfer takes place within a process of securitization or is made between credit institutions or in favor of a securitization company. Developing assignments that are made of this provision shall not have effect novation. The National Government will determine how the assignment shall be recorded and the other requirements to be met in connection therewith by the financial institutions involved in the respective operations.
The Banking Superintendency shall be entitled to have whatever measures are necessary to restrict securitization operations where this may jeopardize the solvency of the institution or its financial stability, just because they were held in conditions which in his opinion are inconsistent with the market, or because they involve taking risks or liabilities that qualify as excessive. Effective Notes

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ARTICLE 16. MERCANTILE trust deeds. Trust companies may enter into commercial trust for this purpose without the solemnity of the deed is required in all cases as authorized by general rule the national government.
Contracts stated in a private document and corresponding to goods whose transfer is subject to registration must register with the Commercial Register of the Chamber of Commerce with jurisdiction at the domicile of the settlor, subject to the registration or registration which, according to the class action or the nature of the goods, should be in accordance with the law. Effective Notes


PARÁGRAFO. Investment contracts are consensual in mutual funds, but must be recorded accession of the trustor or settlor to the regulations of the respective fund approved by the Banking Superintendency. Effective Notes

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ITEM 17. OPERATIONS OF CORPORATIONS AND HOUSING SAVINGS. Within its main objective, the savings and housing corporations can also perform complementary operations stipulated in legal currency to authorize the Government in implementing this Act all the way to the same set.
Corporations savings and housing may also invest in financial services companies in the same terms and authorized credit institutions conditions.
The National Government authorized as of 1. July 1993 to savings and housing corporations to grant consumer loans without mortgage up to the limits and conditions determined by the Government, preserving its expertise in housing finance and construction. PARAGRAPH 1.
. The savings and housing corporations can make in addition to the operations listed in Article 2.1.2.3.8 of the Organic Statute of the Financial System, those that authorizes the National Government in development of this Law. PARAGRAPH 2.
. In any case, savings and housing corporations may grant loans for investment guaranteed mortgage on different housing property, subject to special conditions stipulated by the Government. Effective Notes

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ARTICLE 18. PURCHASE AND SALE OF FOREIGN CURRENCY. Corporations savings and housing and commercial finance companies may make as intermediaries in the exchange market, buying and selling currencies and other foreign exchange transactions authorized by the Board of the Bank of the Republic, which will issue the relevant regulations. Effective Notes

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ARTICLE 19. LIQUIDATION. Henceforth the forced liquidation of entities under the control and supervision of the Banking Superintendency shall efectuarla the liquidators under his direct supervision and responsibility.

The liquidators will be natural or legal persons, appointment and removal of the Guarantee Fund of Financial Institutions, perform their duties in accordance with the rules and procedures outlined in the Organic Statute of the Financial System shall be subject to the control of creditors liquidation under the terms and conditions stipulated by the national government who will decide within three months following the effective date of this law and the terms and conditions under which the Guarantee Fund of Financial Institutions may carry out monitoring the activity of the liquidators, the form and terms to be accountable for its management to creditors, the actions that they may continue in case of dispute or disagreement, the procedure to be applied by the liquidator in the processing of the case and administrative and judicial remedies available against decisions that it adopted.
The settlement of transactions concluded illegally by natural or legal persons lacking authorization to develop exclusive activities of institutions supervised by the Banking Superintendency, they will be advanced in accordance with the procedures established in Title II of the Sixth Book of the Commercial Code. To this effect, the Banking Superintendency or the Guarantee Fund of Financial Institutions, as appropriate, shall give immediate transfer to the competent court business, property and assets of the operated patient.
The provisions of this Article shall apply to the liquidation processes currently underway. PARAGRAPH 1.
. Insurance contracts, whatever their class, held by an insurer in respect of which the Banking Superintendency available with liquidatorios purposes, taking possession of its property and assets, automatically terminate three (3) months after the date of execution of the respective administrative act, except for individual life insurance in which case the said period is extended to a year from the same date. In the administrative act ordering the takeover of the property and assets of an insurer the result of the automatic termination above will be noted.
The liquidator appointed by the Guarantee Fund of Financial Institutions must notify policyholders, insureds and beneficiaries about the automatic termination of insurance contracts by two notices published in newspapers of national circulation, on different days. It may also, if it deems it appropriate, send written notice to policyholders, insureds and beneficiaries to your last known address informing them of that fact.
In the ongoing liquidation processes, the terms referred to in this paragraph shall be calculated from the effective date of this law. PARAGRAPH 2.
.
To: the appointment of liquidators for the following minimum requirements are taken into account. Be professional with a college degree and have not less than five (5) years related to financial activity areas.
Case of legal persons, should have been constituted at least one year prior to the date of appointment and prove that they have adequate technical and operational infrastructure for the performance of the function and qualified personnel to meet the requirements to be liquidator individual.
B. Adequacy absolute judgment and responsibility of the nominator. PARAGRAPH 3.
. At any time creditors representing at least 75% of the allowed claims in the different settlement of the Guarantee Fund for the Financial Institutions may replace the liquidator appointed by the Fund. Effective Jurisprudence


ARTICLE 20. TRADE PROMOTION THROUGH INCENTIVES. All financial institutions and insurance companies may offer directly or indirectly and under its responsibility awards by lottery, establish plans life insurance by insurance companies duly authorized for this purpose or other incentives in order to promote its image, its products or services free of charge and exclusively among its customers, under the conditions indicated by the National Government. This should make rules in order to prevent the cost of insurance premiums or result in higher charges or lower returns or payments or user saver promoted product or service. Effective Notes

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ARTICLE 21. PAYMENT OF COMPENSATION INSURER. The deadline for payment of compensation by the insurer may be extended by express agreement between the parties, to a period not exceeding sixty (60) days, only in the case of property insurance in which the insured is a legal person and the sum insured in the respective policy exceeds the equivalent of 15,000 minimum statutory monthly wage at the time of subscription. In this case, the parties may also agree the interest rate of late payment of the claim. Effective Notes

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REVOCATION ARTICLE 22. INSURANCE CONTRACT. The term for the revocation of the insurance contract by the insurer may be reduced prior authorization for reasons of general interest for a specific bouquet impart the Banking Superintendency. Effective Notes

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ARTICLE 23. RISKS OF FINANCIAL ACTIVITY. In insurance aimed at the protection of the risks of financial activity, may ensure, by express agreement, the past events whose occurrence is unknown by the policyholder and the insurer. Effective Notes

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ARTICLE 24. EFFECTS OF CANCELLATION. Annulment of unilateral administrative acts that allow certain operations to manage, leverage or invest funds raised from the public; or order them to vary the amount of capital, the equity, assets or liabilities, or the value of its shares or bonds; or under which public entities have acquired rights in the administration or in the assets of those institutions, or obligations for their actions, it will produce effects only from the execution of the judgment that declared. But in these and similar cases, if the judgment annulling the administrative act ordering the reinstatement of injured right or repair the damage, it will be in cash, as necessary to avoid prejudicing those who have acted in good faith.
PARÁGRAFO. When the Nation assumes the economic effects that may result from hidden liabilities, litigation, disputes with administrative authorities or others that may potentially affect the entity whose shares are planning to sell in implementation of Article 25 in the disposal program conditions will be indicated and procedures under which the nation can take such contingencies. In this case, the Nation, with full legal effect, replace the entity in connection with the contingencies assumed and therefore it will only be payable any amount in respect of such contingencies can legally be claimed. Effective Jurisprudence


CHAPTER III.
PROCEDURE OF SALE OF SHARES OF THE STATE IN FINANCIAL INSTITUTIONS AND UNDERWRITERS AND PARTIAL REGULATION OF ARTICLE 60 OF THE NATIONAL CONSTITUTION

ITEM 25. ADOPTION OF THE AGENDA. In furtherance of the provisions contained in Article 60 of the Constitution and for the sole purposes of this Law, when the Nation, a decentralized entity or the Guarantee Fund of Financial Institutions, disposed of its stake in financial institutions or insurance companies, they must do so according to the program alienation approved in each case by the Council of Ministers. In the program adopted the necessary measures be taken to democratize state participation and special conditions are granted to the workers, their organizations and solidarity organizations, in accordance with the rules of this chapter.
The Guarantee Fund submitted to the Council of Ministers, by way of recommendation, a program with the conditions and procedures for the sale of shares and bonds.
The sale should preferably be through operations hammer on stock exchanges or, alternatively, by other methods that ensure widespread publicity and free competition. Effective Jurisprudence

Approved
disposal program by the Council of Ministers, the Government should disseminate it widely through the Guarantee Fund for Financial Institutions in order to promote adequate public participation. In addition, the national government shall submit a report on the program adopted at the Third Committees of the Congress.
PARAGRAPH 1.
. The approval of the conditions and procedures for disposal of the shares or bonds of the nation, public entities at the national or the Guarantee Fund of Financial Institutions, shall be effected by decree of the National Government, which provide that the relevant entity proceed to amend their statutes in order to adapt the rules applicable to similar entities operating under the rules of private law; consequently, in the case of nationalized entities it was ordered to perform the statutory reforms under which the right of shareholders is devoted to participate in the management of the institution and appoint its management subject to the common law, which will apply from the date that the Government approve the respective statutory reform. PARAGRAPH 2.
. In the event that the joint participation of the Nation and other public entities in the capital of the same financial institution or insurance is less than 50% of the subscribed and paid capital of the institution, including within it the actions that result from the mandatory conversion of bonds outstanding, conditions and procedures of sale shall be approved directly by the Board of the public entity or by the national government through the Ministry to which you are affiliated or linked financial institution or insurance company, as the holder of the shares or bonds.
The foregoing notwithstanding that such authorities in the definition and implementation of the program of alienation, are obliged to comply with the principles and rules laid down in Chapter III of this law, without it being necessary in such cases the participation of the Guarantee Fund of Financial Institutions. PARAGRAPH 3.
. The provisions of Chapter III of this Act shall not apply to operations mobilization of assets under resale agreements held by the Guarantee Fund of Financial Institutions with registered entities, which have had or have as their object the acquisition of shares or bonds mandatorily convertible into shares.
PARÁGRAFO 4o. Commissions originating from operations hammer referred to in this article may not exceed the limits set by the national government. Effective Notes

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ARTICLE 26. ACQUISITION PREREQUISITE. Respect of transactions that occur in development of the provisions of the preceding article shall be obtained the approval of the Banking Superintendency when, as a result of such transactions, acquiring, directly or indirectly, 5% or more of the outstanding shares or bonds convertible into shares of the entity or when taking a percentage equal to or higher than indicated above can increase as a result of the transaction, whether it is performed by one or more operations of any nature, simultaneously or successively. The Banking Superintendency, if so, examine the suitability, responsibility and character of people interested in making acquisitions. For transactions of shares and bonds mandatorily convertible into shares not covered by this Article shall continue to apply the provision in Article 1.3.5.0.1 of the Organic Statute of the Financial System.
The approval of the Banking Superintendency referred to in this article and article 1.3.5.0.1 of the Organic Statute of the Financial System will not be necessary when people interested in buying shares or bonds convertible into shares of the same institution have obtained such approval within three (3) years prior to the date of the relevant transaction, provided that in the intervening period have not been subject to sanction by the Banking Superintendency of Securities Exchange or companies or are He has issued a security measure or conviction in a criminal case and previously report on the proposed operation. Effective Notes

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ARTICLE 27. CONTENT OF THE PROGRAM. In the program proposal that Article 25 of this law refers to the minimum placement price of the shares, which shall be based on a financial technical concept detailed depending on the profitability of the institution, the commercial value will be indicated its assets and liabilities, of the support of the nation, decentralized entity or the Guarantee Fund of Financial Institutions to be maintained, and market conditions.
The minimum placement price indicated by the Council of Ministers to be released next business day fixing.

A minimum of fifteen percent (15%) of the shares or mandatory convertible bonds which are subject to the sale, which should be offered among active workers and pensioners of the entity, funds are also reserved employees, mutual funds of employees, severance and pension funds, cooperatives and other solidarity organizations or workers and within this 15% may be set maximum individual purchase of these shares. Effective Jurisprudence


The shares are intended for the persons mentioned in the preceding paragraph will be offered at a fixed price, which will be the minimum price set by the Council of Ministers. Such values ​​will be placed under the conditions and according to the procedure determined in the program of disposal.
PARÁGRAFO. For determining the minimum price is taken into consideration the current and future profitability of the institution, the value of its assets and liabilities and the support received from the National Guarantee Fund and Financial Institutions. Effective Notes

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ARTICLE 28. DISCLOSURE
. Without prejudice to the bank, exchange mechanisms to give full and comprehensive disclosure of the financial condition of the entity whose shares are in the process of alienation under Article 25 of this Law, information which can access those interested in equality be established conditions. Effective Notes

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SUBSCRIBERS ARTICLE 29. PARTICIPATION OF PROFESSIONALS. In order to facilitate the access of people to the ownership of financial institutions and is authorized insurers to participate in the hammer to professional subscribers through outright transactions or the best, they commit to placing the public and broadly and democratic all or part of the shares or bonds convertible into shares under the conditions to be adopted at the disposal program in the time period specified for the purpose. The financial and administrative capacity of such subscribers will be previously approved by the Guarantee Fund of Financial Institutions, entity which also indicate the guarantees of seriousness that such subscribers should be.
Professional subscribers and the final purchasers of such shares or bonds must seek the approval provided for in Article 26 when it any place.
PARÁGRAFO. shall be admissible as professional subscribers for the purposes of this article exclusively financial corporations, brokerage firms and trust companies. Effective Notes

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ARTICLE 30. ALTERNATIVE PROCEDURES. When the hammer for the sale of the shares and all or part of these fail placed on the market is used, any other procedure which ensures sufficient advertising and free competition, with the approval of the Cabinet will be used.
If the above procedure exhausted the total placement of shares on the market is not obtained, the Guarantee Fund of Financial Institutions presented for consideration by the Council of Ministers for approval, unbowed alternative proposals to complete the process of privatization, giving preference to those who already have acquired shares.
PARÁGRAFO. If in any case not all shares are placed, the slopes of place must be given to Guarantee Fund of Financial Institutions Sales irrevocable trust, to be placed fully in accordance with the procedures outlined in this chapter. Effective Notes

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ARTICLE 31. FUNCTIONS OF INSURANCE FUND FINANCIAL INSTITUTIONS. In the case of financial institutions that contributed to capitalize the Guarantee Fund of Financial Institutions will present the proposed program of disposal of the shares and bonds that Article 25 of this law refers to, once the Banking Superintendency certifying that the balance of the entity sanitation enabling them to be disposed of.
In other cases the Guarantee Fund will present the proposal at the request of the Ministry to which you are affiliated or linked the respective financial institution, insurance company or public entities that have equity in an institution of this nature.

Under the terms and conditions of the contract under which the Nation and the Fund agreed program preparation disposal by that institution, the Ministry which be affiliated or linked financial institution, insurance company or public entities that are shareholders of these, indicate the basis for the preparation thereof.
The Nation or its decentralized entities may contract with Guarantee Fund of Financial Institutions appraisal, preparation of the program and orientation, administration or management of the sale of shares and bonds referred to in this article. Such contracts shall be subject to the rules laid down in this article and to private law.
PARÁGRAFO. The provisions of this article shall apply to any transfer of shares or bonds that make the Nation, its decentralized entities or the Guarantee Fund of Financial Institutions, unless there is in the fusion or absorption of financial institutions or insurance entities in which those have shareholding. Effective Notes

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ARTICLE 32. ACTIONS OF FINANCIAL INSTITUTIONS AND UNDERWRITERS STATE. In the process of sale or privatization of entities in which the joint participation of individuals of the same financial institution is equal to or greater than 10% of the subscribed and paid by the institution concerned capital, when it is instead, will be given strict application primarily to the precisions of Article 407 of the Commercial Code, reserving the minimum percentage referred to in Article 27 of this Law. can not be reformed statutes so that the rights hereby established in favor of private shareholders desmejoren.
In this case the Government will do without state offers referred to Articles 10 and 18 of Decree 130 of 1976
The minimum price and terms of placement with third parties may not be more favorable than those offered to the exercise of preemptive rights.
In regulated in this standard hypothesis not the provisions of Article 25 nor any that contravene this law in the text of this article, which only come to work when exhausted the right to apply preference shares not acquired or acquired only in part. PARAGRAPH 1.
. The provisions of this Article shall apply only to entities in which, at the effective date of this law, there is participation of the Nation only through one or more decentralized entities. PARAGRAPH 2.
. When dealing with financial institutions or insurance companies in the state, other than those referred to in this Article entities there will be no place to apply the limitations set out in Articles 10o. and the 18th. Decree 130 of 1976 when determined by the Government. PARAGRAPH 3.
. The provisions of this chapter is without prejudice to the provisions of Article 2.4.9.4.3 of the Organic Statute of the Financial System and the provisions of the management contract of the National Coffee Fund.
PARÁGRAFO 4o. The obligations arising from those held by the Nation in developing the privatization process of Transportation Finance Corporation payment arrangements, may be offset and automatically extinguished with other obligations in favor of the Nation and other entities and agencies of national order. Effective Notes

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CHAPTER IV. OTHER PROVISIONS

ARTICLE 33.
regulatory powers. The National Government shall through the Ministry of Finance the powers of ordinary regulation currently assigned to the Banking Superintendency and other agencies in accordance with the following provisions:.
Article 1.3.1.1.5, 1.3.1.3.4,. 2.1.1.2.1., 2.1.1.2.7. letter b), 2.1.2.4.1. letter e), 2.1.3.2.4. letter d), 2.1.3.2.25., 2.1.3.2.26., 2.1.4.2.20., 2.2.1.2.5., 2.2.2.7.2. letter m), 3.1.2.0.1., 3.1.4.0.3. letter l) of the Organic Statute of the Financial System and Article 3o. of section 11 of Decree 2739 of 1991.
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Other legal functions on the market that are not expressly mentioned in this Act shall be exercised by the national government through the Securities.
PARAGRAPH 1.
. The existing minimum amounts of capital for banks, financial corporations, savings and housing corporations, commercial finance companies, insurance companies and other financial institutions, of which Article 1.3.1.1.1., And identified by the Banking Superintendency for financial services companies, developing the same article, and the amounts set by the Government for entities supervised by the Superintendency of Securities they may only be changed by law. PARAGRAPH 2.
. Suprímense the powers assigned to the Banking Superintendency Article 2.4.6.3.5. the Organic Statute of the Financial System. Effective Jurisprudence


ARTICLE 34. Technical Vice Ministry. Effective Notes

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ARTICLE 35. FUNCTIONS. Effective Notes

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ARTICLE 36. AMENDMENTS TO RULES. The existing rules on financial sector regulation issued by the National Government through autonomous constitutional regulations prior to the effective date of this law and relating to matters that are not within the control functions provided herein may only be modified by the law in the future.
Within three months of the enactment of this Act, the Government shall have the authority to incorporate the Organic Statute of the Financial System modifications set forth herein and will in that status changes of location of entities and the certification system and numbering They required, as well as to adopt a special administrative procedure applicable to the Banking Superintendency.
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ARTICLE 37. STRUCTURE. The Government may modify the structure and functions of the Ministry of Finance and Public Credit and Banking and Securities for the sole purpose of making effective the measures necessary to comply with the provisions of this law adjustments. Effective Jurisprudence


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ARTICLE 38. ACQUISITION PROCESS OF MERGER OR. The national government shall, within three (3) months after the effective date of this Act, issue regulations to facilitate, expedite and promote the realization of mergers or acquisition of financial institutions and insurance companies, preserving free competition. In addition, expenses associated with these processes may be deferred under the terms stipulated by the Banking Superintendency, in accordance with its legal powers. Effective Jurisprudence


ARTICLE 39. INVESTMENT IN CAPITAL commercial finance companies. Credit institutions may participate in the capital of commercial finance companies specializing in leasing. Effective Jurisprudence


ARTICLE 40. EFFECTIVE DATE. This Law governs from the date of publication. Effective Jurisprudence


Given in Bogotá DC, five (5) days
of January in 1993 (1993).
The President of the honorable Senate,
TITO EDMUND WHEEL GUARÍN.
The Secretary General of the Senate of the Republic,
PUMAREJO PEDRO VEGA.
The President of the Chamber of Representatives,
CÉSAR PÉREZ GARCÍA.
The Secretary General of the Chamber of Representatives, DIEGO VIVAS
TAFUR.
Republic of Colombia - National Government
published and execute.
Given in Bogotá DC, on January 5, 1993.

César Gaviria Trujillo Minister of Finance and Public Credit, RUDOLF HOMMES
RODRIGUEZ.



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