By Which The National Government Is Authorized To Issue Bonds Of Domestic Government Debt And Other Provisions

Original Language Title: Por la cual se autoriza al Gobierno Nacional para la emisión de bonos de deuda pública interna y se dictan otras disposiciones

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LAW 345
1996 (December 27)
Official Gazette No. 42,951 of December 31, 1996
Whereby authorizing the Government to issue bonds of domestic government debt and other provisions .
CONGRESS OF COLOMBIA DECREES
:
ARTICLE 1o. BONDS FOR SAFETY. It authorizes the Government to issue domestic debt title, up to the amount 600.000 million pesos, denominated Bonds for Security. This operation does not affect the indebtedness quota authorized the National Government in accordance with applicable laws.
Bonds for security are titles to order, have a period of five (5) years and bear an annual yield equal to 80% of the variation in consumer prices means income certified by DANE. The total value of capital will be paid on the redemption date title and interest shall be recognized annually. The conditions of issue and placement of securities shall be established by the Government.
Article 2.
. REDEMPTION. The Bonds will be redeemed from the date of maturity at face value in money and can be used for paying taxes, advances, deductions, interest and administered by the Tax and Customs penalties and accrued interest , which are paid annually.

ARTICLE 3. COMPULSORY INVESTMENT. Natural persons whose net worth exceeds one hundred fifty million pesos ($ 150 million) must be performed by a one-time forced investment to be settled and paid in 1997, Bonds for Security, equivalent to half percent (0.5%) of said certain assets at December 31, 1996.
legal persons should be made only once a forced investment to be settled and paid in 1997 for Security Bonds, equivalent to half percent (0.5%) of liquid assets determined as of 31 December 1996.
for the calculation of investment referred to in this article, that will be deducted from net equity proportion in gross assets corresponds to the assets represented by shares, corporate contributions and contributions voluntary and mandatory public and private pension funds for old age and disability. PARAGRAPH 1.
. They are not required to make the investment referred to in this article non-tax payers income and complementary, taxpayers special tax regime and the official and corporate entities mixed economy of public services, mass transportation, liquor industries officers, lotteries order and territorial government entities and mixed companies that develop complementary activities defined in the Law 142 of 1994; to be exempt from this obligation, mixed economy companies must have an official participation not less than 50%. PARAGRAPH 2.
. People who have a net worth less than $ 150,000,000 may voluntarily subscribe "Bonds for Safety".

ARTICLE 4. EFFECTS ON INCOME TAX. Losses incurred on the sale of the Bonds for Security will not be deductible for income tax and complementary.
The value of the Bonds while the investment is maintained, it is excluded from the basis of presumptive income assets. Yields on bonds incurred shall be deemed not constitute rental income.

The 5th ITEM. INTERESTS OF MORA. People who are forced to invest in the Bonds for Safety in the preceding article that do not make the investment in a timely manner, or is carried out for less than the amount due, must pay default interest at the same rate expected for payment of tax obligations of the national order, on the amount left to invest, from the date on which the deadline set for the investment to date in the actually made.

ARTICLE 6o. CONTROL. To control the forced investment covered by this Act, the Minister of Finance will have the powers of investigation, determination, discussion and collection under the tax statute, and can run by investment and established interests in the previous article to those who do not perform, they do extemporaneously, or performed for less than the sum calculated as set out in the third article of this law.
Against the act that determines the amount of investment, it should only leave to appeal, which must be decided within 5 days of its filing.

The faculty mentioned in this article, may be delegated member institutions to Ministry of Finance and Public Credit.

ARTICLE 7. Monitoring Commission. Hereby established a Commission of Rationalization of defense spending, to monitor and ensure that efficient compliance of the allocated budget, with resources from this Act, the Public Force and National Defense, which will be composed of two (2) senators and two (2) representatives appointed by the respective Boards of Third Committees; the Director of Budget, Ministry of Finance; the Director of Planning of the Ministry of Defense.
The Commission will report on the investment of resources covered by this Act.

Article 8. VALIDITY. This Law governs from the date of its publication and repeals the rules that are contrary.
The President of the honorable Senate,
LUIS FERNANDO LONDOÑO CAPURRO.
The Secretary General of the honorable Senate,
PUMAREJO PEDRO VEGA.
The President of the honorable House of Representatives,
GIOVANNI LAMBOGLIA MAZZILLI.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
TAFUR.
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
published and execute.
Given in Santa Fe de Bogota, DC, on December 27, 1996.
Ernesto Samper Pizano.
The Minister of Finance and Public Credit, José Antonio Ocampo Gaviria
.
The Minister of National Defense Juan Carlos Esguerra Portocarrero PORTOCARRERO