ACT 448 OF 1998
Official Gazette No. 43,345, of July 23, 1998
By which measures are taken in relation to the management of contingent liabilities of state entities and other provisions on public debt. Summary
THE CONGRESS OF COLOMBIA DECREES:
ARTICLE 1o. BUDGET MANAGEMENT OF CONTINGENCY. In accordance with the provisions of the Organic Budget Law, the Nation, territorial entities and decentralized bodies in any order must include in their budgets for debt service, the necessary appropriations to cover potential losses contingent liabilities charge .
The National Government shall regulate the methodology on terms for the inclusion of these obligations in the budgets of the entities referred to in the preceding paragraph, may distinguish in its treatment of contingent obligations had been acquired prior to the entry into force of this law and future.
Likewise, the Government shall regulate the events in which these resources are to be transferred to the fund created in accordance with the following article.
PARAGRAFO. For the purposes of this Act it means the pecuniary obligations contingent liabilities under condition.
. CONTINGENCY FUND STATE INSTITUTIONS. Create the Contingency Fund of State Entities as a special account unincorporated trust managed by the Foresighted. Effective Jurisprudence
ARTICLE 3o. OBJECT OF THE FUND. The Contingency Fund of State Entities will aim to meet the contingent liabilities of state entities approved by the government. The Government will also determine the type of risks that can be covered by the Fund.
. BUDGET REGIME. For all budgetary purposes, the Fund shall be governed by the rules applicable to State entities financial.
Contributions to the Fund shall be deemed executed once transferred to it and may only be reimbursed to the contributing entities when the non-realization of the anticipated risks is verified definitively.
The 5th ARTICLE. CONTINGENCY FUND RESOURCES STATE INSTITUTIONS. Resources Contingency Fund of State Entities are as follows:
1. The contributions made by state agencies.
2. The contributions from the National Budget.
3. Financial returns generated by its resources.
4. Portfolio recovery.
PARAGRAFO. Before joining the Fund budget, the costs generated by their administration, may be covered under the performance of the resources provided by the contributing entities.
. ADOPTION AND MONITORING OF THE VALUATION OF CONTINGENCY. The Directorate General of Public Credit Ministry of Finance and Public Credit, approve the valuations of contingent liabilities performing state entities that made contributions to the Fund. Similarly, the Directorate regularly monitor the evolution of risks covered by the Fund and determine the increase or decrease in contributions as may be necessary, in accordance with the budgetary provisions.
Article 7. POSITIONING SYSTEM OF TITLES OF PUBLIC DEBT OF THE NATION. For purposes of placing its public debt, the Nation may use credit institutions as securities intermediaries.
. PROTECTION OF THE HOLDERS public debt of the nation. In accordance with the rules of the Commercial Code on the circulation of securities, in criminal proceedings in which the commission of offenses related enrolled in the National Registry of Securities and Intermediaries titles are investigated, the measures provided for in Article 14 of the Code of Criminal Procedure only proceed against the perpetrators of the offense or partners or against any holder that is not in good faith free of guilt. Effective Notes
Article 9. EFFECTIVE DATE AND REPEAL. This law applies from the date of its enactment and repeal the provisions that are contrary.
The President of the honorable Senate,
Amylkar Acosta Medina.
The Secretary General of the honorable Senate, Pedro Pumarejo
The President of the honorable House of Representatives, Carlos Ardila
The Secretary General of the honorable House of Representatives,
Diego Vivas Tafur.
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
published and executed.
Given in Santa Fe de Bogota, DC, on July 21, 1998.
Ernesto Samper Pizano Minister of Finance and Public Credit, José Antonio Urdinola Uribe