Act 546 1999

Original Language Title: LEY 546 de 1999

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LAW 546
1999 (December 23)
Official Gazette No. 43827 of December 23, 1999
By establishing rules on housing, the general objectives and criteria which must be listed secured the National Government in regulating a specialized financing system, savings instruments intended for such financing are created, measures related to taxes and other costs related to construction and housing negotiations and other provisions are issued are issued. Summary

Term Notes

THE CONGRESS OF COLOMBIA DECREES: CHAPTER I.


GENERAL PROVISIONS ARTICLE 1o. SCOPE OF THE LAW. This law establishes general rules and outlines the criteria which must be held by the National Government to regulate a specialized system of financing long-term individual housing, linked to the index of consumer prices and to determine special conditions for social housing urban and rural.
PARAGRAFO. Without prejudice to the provisions of this Act, the solidarity sector entities, mutual savings and credit, financial cooperatives, employee funds, the National Savings Fund and any other entity other than credit institutions may grant housing loans denominated in Colombian pesos or Real Value Units, UVR, with the characteristics and conditions approved by their respective governing bodies, provided that the depreciation systems do not provide for capitalization of interest, or penalties imposed for total prepayments or partial. Effective Jurisprudence

Article 2.
. OBJECTIVES AND CRITERIA FOR THIS LAW. The National Government will regulate the specialized housing finance system long term to set the necessary conditions to implement the constitutional right to decent housing, in accordance with the objectives and criteria:
1. Protect the heritage of families represented in housing.
2. Protect and encourage savings for the financing and construction of housing, maintaining public confidence in the collection instruments and credit facilities issuers thereof.
3. Protect users of housing loans.
4. Tend to the development of efficient mechanisms for financing long-term housing.
5. Ensure that the granting of credits and attention consult the payment capacity of debtors.
6. Facilitate access to housing in conditions of fairness and transparency.
7. Promote housing construction in financial conditions that make housing affordable to more families.
8. Prioritize programs and housing solutions in areas affected by natural disasters and terrorist acts. Effective Jurisprudence


ARTICLE 3o. REAL UNIT VALUE (UVR). Unit of Real Value (UVR) is a unit of account that reflects the purchasing power of the currency, based solely on the change in the price index certified by the DANE consumer, whose value is calculated according to the methodology set the Council for Economic and Social Policy, Conpes. If the Conpes cometh to modify the methodology for calculating the UVR, this change will not affect contracts already signed or mortgage bonds or securities issued in the process of securitization of housing mortgage loans already placed on the market.
The National Government will determine the equivalence between UVR and constant purchasing power unit, UPAC and the transitional regime of the UPAC to UVR. Effective Jurisprudence

ARTICLE 4.
. PARTICIPANTS. They will be part of the specialized housing finance system:
1. The Superior Council of Housing.
2. Credit institutions that grant loans for this purpose.
3. Savers and investors.
4. Debtors.
5. Builders, and
6. Other agents that develop activities related to housing finance such as mortgage funds, trust companies in their capacity as managers of pension trusts, securitization companies and other agents or intermediaries activities. Effective Jurisprudence


The 5th ARTICLE. CONVERSION OF SAVINGS AND HOUSING CORPORATION. From the effective date of this law, savings and housing corporations will have the nature of commercial banks. To that end, they have a period of thirty-six (36) months in order to make the necessary adjustments to suit your new nature.

Banking institutions having equity interest in savings and housing corporations to become commercial banks under the provisions of this Law shall dispose of such participation within five (5) years following the effective date of the this law.
ARTICLE 6.
. SUPERIOR COUNCIL OF HOUSING. Create the Superior Council of Housing, as an advisory body of the National Government in all those aspects that relate to housing.
The Council shall be composed as follows:
1. The Minister of Economic Development or his delegate, who will preside.
2. The Minister of Finance or his delegate.
3. The Director of the National Planning Department or his delegate.
4. Banking Superintendent or designee.
5. The Securities Superintendent or designee.
6. The Superintendent of Corporations or his delegate.
7. Family Grant Superintendent or designee.
8. A representative of popular housing organizations.
9. A representative of the builders.
10. A representative of credit institutions.
11. A representative of users individual housing credit, elected in accordance with the regulations issued by the National Government.
12. A representative of the workers, elected in accordance with the regulations issued by the National Government.
13. A representative of the Family Compensation, elected by the Supreme Council of Family Grant.
14. A representative of the national real estate sector, elected in accordance with the regulations issued by the National Government.
The Council shall have a Technical Secretariat in accordance with provisions in the regulations, which will name him among its functions, to calculate and disclose the daily value of the Unit of Real Value. Effective Jurisprudence


PARAGRAFO. The Council created in this article assume the functions of the Higher Council Housing Act dealing 3rd. 1991.

Article 7. MEETINGS AND FUNCTIONS OF THE SUPERIOR COUNCIL OF HOUSING. The Housing Council shall meet at least twice a year and will have the following features:
1. Advise the Government in the formulation, coordination and implementation of housing policy, particularly social interest.
2. Review the costs for house purchase, such as expenses for taxes, fees, fees.
3. To evaluate the results in development programs implementing housing policy periodically.
4. Ensure compliance with the objectives and criteria of the specialized system of financing long-term housing, enshrined in this law.
5. Establish and disclose statistics affecting the construction and financing of housing.
6. Ensure compliance with transfer conditions and information on the activities of the different entities involved in the specialized housing finance system long term.
7. Recommend to the Board of the Bank of the Republic temporary intervention in intermediation margins appropriations for housing finance. Effective Jurisprudence


8. Recommend insurance and risks that should have assets to be financed.
9. Recommend incentives for the purchase and sale of bonds and mortgage securities.
10. Report annually to Congress a report on the quantitative and qualitative, urban and rural housing deficit, at national and regional level, globally and by socioeconomic status.
11. The other duties assigned by law. Effective Jurisprudence


CHAPTER II.
RESOURCES FOR HOUSING FINANCE
ARTICLE 8.
. RESOURCES FOR HOUSING FINANCE. In addition to the operations authorized by the Organic Statute of the Financial System without prejudice to the powers of the Banking and Securities in their areas of competence, the National Government will regulate new for financing housing operations, expressed in UVR, in accordance with the provisions of this law, and establish special incentives to channel resources paid to saving sight destined for housing finance. Effective Jurisprudence


Article 9. MORTGAGE BONDS.
Authorizing credit institutions issuing mortgage bonds which will be governed by the following guidelines. Effective Notes

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1. Are securities credit content.

2. They are issued by credit institutions and will comply sole purpose credit agreements for housing construction and for long-term financing.
3. Credits to obtain financing by issuing mortgage bonds must be secured by first mortgages, which can not guarantee any other obligation.
4. The credits have been financed with mortgage bonds may not be sold or assigned or transferred in any way, nor subject to any lien or used as collateral by the issuer of the respective bonds, except as indicated in the following article.
However, the establishment of credit issuer may agree with another credit institution's assuming the obligation to repay the bonds, for which it will yield the corresponding mortgage portfolio, in accordance with the standards put forth by the National Government, provided that such operations have the authorization of the Banking Superintendency, after approval of the Advisory Council and the consent of the Assembly of bondholders.
5. The issuer, or who has assumed the obligation to repay the bonds, will be responsible for the administration and management of the assets to be financed by it, to the holders of such bonds. For this purpose, you must sign a management contract.
6. The Banking Superintendency will establish obligations of accounting disclosure to ensure proper public awareness of the value of that part of the assets, however, be included in the balance sheet of credit institutions, are not part of the general pledge of creditors themselves, in case of liquidation of the issuer, in accordance with the provisions in the following article.
7. The Securities shall specify the requirements and conditions for the issuance and placement of bonds issued under development herein provided, which should promote homogeneity and liquidity. In any case, bonds referred to in this Article shall be dematerialized and may be traded through the stock exchanges. Effective Jurisprudence


EVENT ARTICLE 10. SETTLEMENT a credit MORTGAGE BONDS HAVE IN CIRCULATION. If for any reason you decide to liquidate a credit institution that has outstanding mortgage bonds, or has assumed an obligation to pay them in accordance with the provisions of paragraph 4 of the preceding article shall apply in relation to mortgage bonds, the following standards:
1. Means that both loans financed by the bonds, funds raised as to apply to them and the guarantees or rights to safeguard such support or belong to the bondholders and not the entity in liquidation. For this purpose, loans and other assets belonging to all holders of each of the emissions, which will be given, for all purposes, separate treatment be identified.
In the case provided for in this Article, mortgage loans backing the bonds do not constitute part of the overall pledge of creditors of the issuer or who has assumed the obligation to pay in the settlement process and therefore , they shall be excluded from the mass of goods of the same for any legal effect.
2. In no event shall the company in liquidation may assign, with the responsibility to repay the bonds, the mortgage portfolio.
3. The Securities convene meetings of holders of such certificates to decide, for each issue or on the disposal of loans and the corresponding total prepayment of the respective bonds, or on the transfer to another credit institution or a trust company in its capacity as manager of pension trusts, the management contract bonds, including the transfer of credits and their respective guarantees, and delivery of the funds raised and earrings collection and other guarantees or to safeguard such rights or support. In the event of transfer of the management contract, the transferee will be responsible for the administration of the issue.
4. If he opts for the sale of loans granted under this system for any reason'll stay a surplus after payment of mortgage bonds, it shall be returned to the company in liquidation.
PARAGRAFO 1o. If the sale of mortgage assets or the transfer of the management contract is decided, it is understood that the bondholders lose their quality of creditors of the company in liquidation.

If, within ninety days, not the transfer of the management contract of the issuance or sale of assets decided, shall not apply the provisions of this article and, therefore, the mortgage assets will be restored to the bulk of the liquidation and the bondholders shall be deemed recognized by their respective debts in the liquidation process.
PARAGRAFO 2o. If a credit institution or trust company in its capacity as manager of pension trusts accepts the assignment of the administration, it must inform the central securities depository where they are entered bonds, that this issue has only guarantee portfolio mortgage.
PARAGRAFO 3o. For all legal purposes, the operations referred to in paragraph third of this Article shall be perfected with the sole agreement between the legal representative of the bondholders and the new administrator or the acquirer of the mortgage portfolio, as the case . This agreement will be enough for the new administrator or the new owner of the credits is understood entitled to administer, collect and even execute legally ceded guarantees or credits sold, with the powers under the previous administrator, or the creditor, according to the case.

ARTICLE 11. MARKET MAKERS. The National Government will establish conditions that allow legal persons subject to the supervision and control of Banking Superintendents or securities, which have the financial capacity and liquidity determined by the National Government, to act as originators and creators Market bonds and mortgage securities covered by this law. For these purposes, the Government design and adopt mechanisms to provide coverage of interest rate risk, liquidity and credit, among others.
The Government will develop and promote the necessary mechanisms to ensure the secondary market for bonds and mortgage securities and the conditions under which such mechanisms are offered.
CHAPTER III.

Securitizations ARTICLE 12.
TITLING MORTGAGE PORTFOLIO AND leasing contracts. Without prejudice to the legal authorization to include trust companies, credit institutions and the entities described in article 1 of this law may issue certificates representing (i) mortgage portfolio corresponding to mortgage loans disbursed and future mortgage loans in development contracts for the sale of future mortgage loans, and (ii) leasing contracts to finance the construction and acquisition of housing, including their guarantees or securities representing rights over them and the guarantees that support and property which they constitute the object in the case of housing leasing contracts, when they dispose purpose as the capital market. These securities will only count the part of the respective issuers, with the guarantees or commitments regarding the administration and the financial performance of the assets, which are foreseen in the corresponding emission regulations.
Credit institutions may provide guarantees to title to real estate construction projects.
Credit institutions and entities described in article 1 of this Law may also transfer its corresponding mortgage portfolio mortgage loans disbursed mortgage loans and future development of future contracts for the sale of mortgage loans, including guarantees or rights thereto and their respective guarantees and contracts residential leasing including real property constituting its object, securitization companies, and trust companies in their capacity as managers of pension trusts or other institutions authorized by the National Government, so that these mortgage securities issued subject to the regulations applicable to such securitization of mortgage assets. Mortgage securities issued from contracts residential leases are subject to the same rules, conditions and benefits applicable to the securities issued in process development of securitization of mortgage portfolio in the terms defined in this law and its relevant regulations.

When developing this authorization mobilize assets directly or transferred for further mobilization means that the transferred assets will not be restored to the heritage of the originator or the issuer, where this is in concordat, liquidation or any other insolvency-process, in accordance with Article 68 of Law 964 of 2005 or the regulation replacing or modifying.
The Government shall specify the requirements and conditions for the issuance and placement of different securities to be issued in process development securitization of mortgage assets, promoting homogeneity and liquidity. In any case, the securities referred to in this Article shall be dematerialized.
PARÁGRAFO. The transfer of any loan, guarantee, contract or rights over them, which is made in development of processes of mobilization of mortgage assets in accordance with the provisions of this Article does not take effect for novation and shall be perfected only with transfer the representative title of the obligation or by assignment of the lease housing. This assignment does not create rights or notary fees and stamp duty.
In the process of securitizing housing leasing contracts, transfer of ownership of the property subject of such contracts is concluded at head of securitization companies, trust companies or other institutions authorized by the National Government through the transfer of housing leasing contract. To this end, the document must be relevant assignment to record that it has exclusive basis for the development of a process of securitizing housing leasing contract. Only public deed is required when the transfer of ownership of the property is made by way of lease housing for the tenant, once the option is exercised acquisition and its value is paid.
The Financial Supervisory Authority shall, in respect of asset securitization processes which this article refers to the powers provided for in the last paragraph of Article 15 of Law 35 of 1993. Effective Notes

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ARTICLE 13. RIGHTS HOLDERS mortgage securities. In any case the securities issued in the securitization processes grant their holders the right to request or initiate dividing processes regarding the universality or mass constituting the underlying loans and / or guarantees that they cover.

COMPANIES Article 14. Securitization. The securitization companies covered by this law shall have exclusive corporate purpose is the securitization of mortgage assets and shall be subject to the supervision and control of the Superintendency of Securities. Effective Notes


ARTICLE 15. AUTHORIZATION TO THE GOVERNMENT. Authorize the Office to directly or through the Guarantee Fund of Financial Institutions, participates in the capital of one or more securitization companies.
CHAPTER IV.
TAX REGIME OF MORTGAGE BONDS AND MORTGAGE PORTFOLIO SECURITIES REPRESENTING

ARTICLE 16. PROFIT TAX RETURNS OF TITLES SAVINGS FOR LONG-TERM FINANCING HOUSING. They shall be exempt from income tax and complementary financial returns caused during the term of the securities issued in the process of securitization of mortgage loans and mortgage bonds covered by this law, provided that the period for maturity not less five (5) years. The securities and bonds provided herein, may be divided into representative coupons principal and / or interest. In any case, the securities or bonds must provide for repayment terms simi lar to those of the credits that gave rise to them.
For purposes of enjoying the benefit in this article, shares or bonds may be repurchased or redeemed not by its issuer.
Shall enjoy the benefit here embodied the securities issued in the securitization process of mortgage loans and mortgage bonds covered by this law, to be placed on the market within eleven (11) years from the date of issue of this law.
In any case the inflationary component or maintenance of value of such securities or bonds constitute taxable income. Effective Notes

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CHAPTER V. HOUSING FINANCE SYSTEM LONG-TERM


ARTICLE 17. CONDITIONS OF INDIVIDUAL HOUSING CREDITS. Without prejudice to the provisions of the first article of this law, the National Government will establish the conditions of individual loans long term, they will have to be denominated exclusively in UVR, according to the following general criteria housing:
1. Be for the purchase of new or used housing or individual housing construction.
2. Having a remunerative interest rate calculated on the UVR, which is charged in arrears and may not be capitalized. Such interest rate will be fixed throughout the term of the loan, unless the parties agree to a reduction of the same and should be expressed solely in terms of annual percentage yield.
3. Having a deadline for repayment comprised of five (5) years at least thirty (30) years maximum.
4. Be secured by first mortgages constituted on homes financed.
5. Have a maximum amount not exceeding the percentage that generally established by the National Government, on the value of the respective housing unit, subject to the rules laid down for financing social interest housing subsidiable.
6. The first installment of the loan may not represent a higher percentage of household income to establish, by regulation, the National Government.
7. Amortization systems will have to be expressly approved by the Banking Superintendency.
8. Loans may be prepaid in whole or in part at any time without penalty. In case of partial prepayments, the debtor shall be entitled to choose whether the amount paid decreases the value of the share or the term of the obligation.
9. For granting, the credit institution must obtain and analyze information concerning the respective debtor and the guarantee, based on a technically suitable methodology to project the likely future development of both the price of the property, as the debtor's income, so reasonably be concluded that credit throughout his life, could be promptly addressed and would be sufficiently guaranteed.
10. Be insured against risks determined by the National Government.
PARAGRAFO. Notwithstanding the provisions of this Article, credit institutions and all other entities referred to in article 1 refers. of this law, may grant housing loans denominated in Colombian pesos, provided that such credit transactions are granted with a fixed interest rate throughout the term of the loan, repayment systems do not provide for capitalization of interest and expressly accepts prepay all or part of the obligation at any time without penalty. all other provisions in this law for appropriations for individual housing finance apply to these operations.
Addition and at the request of the debtor, the obligations under UPAC by credit institutions and all other entities that article 1 refers to. of this law, may be renamed in Colombian legal currency in the conditions set out in the preceding paragraph. Effective Jurisprudence


Article 18. DISBURSEMENT. Credits in the preceding article refers to may be paid by credit institutions in local currency or at the request of the debtor, in mortgage bonds denominated in UVR, in the terms established by the Banking and Securities, each in the field of their respective powers. In any case, the appropriations intended to finance social housing will have to be paid in Colombian pesos and may be granted in Colombian pesos. Effective Jurisprudence


ARTICLE 19. INTERESTS OF MORA. Housing loans in the long term that this law is default interest is not presumed. However, when they are agreed, it is understood that they may not exceed one and half times the agreed interest remunerative and may only be charged on overdue fees. Consequently, housing loans may not contain aceleratorias clauses considered past due the entire obligation until not present the corresponding legal action or failure to arbitral justice under the terms established in the corresponding arbitration clause is submitted. The default interest includes the remunerative. Effective Jurisprudence


Article 20. CONTRACTUAL
UNIFORMITY. The Banking Superintendency will establish uniform conditions for documents contentivos credit conditions and guarantees, through which active operations funding long-term individual housing are formalized.
During the first month of each calendar year, credit institutions send all their debtors individual mortgage loans for housing a clear and understandable information, including at least one projection of what would be the interest payable on the next year and that will be charged with monthly installments over the same period, all in accordance with the instructions annually be provided by the Banking Superintendency. The projection will be accompanied by the assumptions were taken into account to perform the test and shall indicate explicitly that changes in such assumptions necessarily involve changes in the projected amounts. Based on this information the debtor may apply to establishments creditors credit during the first two months of each calendar year, the restructuring of their loans to adjust the repayment schedule to its real capacity to pay, being able if necessary, extend the original deadline for total cancellation. Effective Jurisprudence


ARTICLE 21. DUTY OF INFORMATION. Credit institutions must provide true, sufficient, timely and easily understandable to the public and for debtors regarding the conditions of their claims, in the terms determined by the Banking Superintendency information.
During the first month of each calendar year, credit institutions send all their debtors individual mortgage loans for housing information on the conditions of this article. Effective Jurisprudence


ARTICLE 22. FAMILY HERITAGE. The loan debtors individual housing complying with the provisions of this law may be on the acquired properties, heritage homestead by the total value of the respective property, in the form and conditions set out in Articles 60 of the Law 9a . 1989 and 38 of the 3rd Law.
1991. The provisions of the preceding paragraph shall take effect only when the housing credit has been granted by a value equivalent to at least fifty percent (50%) of the property value. The family heritage thus constituted lose validity if the balance of the debt represents less than twenty percent (20%) of this value.
Without prejudice to the provisions of the preceding paragraph, once constituted the heritage homestead and while debt is in force, it can not be raised without the permission of the mortgagee. Such authorization shall be formalized in public deed by which the act is solemnized. Editor's Notes


ARTICLE 23. RIGHTS ATTORNEY REGISTRATION AND EXPENSES. The notary fees and registration costs that are caused during the establishment or modification of mortgage liens in favor of a participant in the specialized system of housing finance, to guarantee a loan of individual housing, will be settled at seventy percent ( 70%) of the applicable ordinary rate. The cancellation of mortgage liens housing loans act shall be deemed no value.
For purposes of notary fees and registration fees, the constitution of family patrimony that is Article 22, which means inembargabilidad raised only in favor of the mortgagee that financed its purchase, or his successor in their rights, in all cases shall be considered as an act without amount.

Article 24. Assignment. At any time, individual housing mortgage loans and guarantees may be assigned, at the request of the debtor, in favor of another financial institution or any of the entities that the paragraph of article 1 of this law refers to.
To this effect, the entities that article 1 of this Act or the securitization companies or trust companies, as appropriate, refers shall authorize, within a period not exceeding ten (10) working days, the transfer of credit and guarantees, once the debtor deliver the binding offer of the new creditor. The financial supervision shall regulate the conditions for the legalization of assignments.

This transfer means improved transfer exclusively representative of the corresponding obligation title and will have the effects provided by Article 1964 of the Civil Code. In any case mortgage interest assigned development of the provisions of this Article shall support the credit disbursed by the new creditor for the payment of the transfer.
The assignment of receivables not generate notary fees, registration and stamp duties. Effective Notes

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ARTICLE 25. CREDIT FOR CONSTRUCTION OF HOUSING. To the appropriations to be granted to finance housing construction projects shall apply as provided for in Article 17, paragraphs 2, 4, and 18 above. The National Government will establish the other conditions for granting and disbursement of these loans as well as systems subrogation to the extent that built homes are sold. Effective Jurisprudence


CHAPTER VI.

INCOME HOUSING ARTICLE 26.
land use plans must provide for ample and sufficient for the construction of all types of social housing defined by development plans and government regulations so that the guarantee coverage of areas housing deficit for social housing.
In order to ensure the revival of the construction for the benefit of purchasers, expand its until 30 June 2000, the deadline for municipalities, districts and San Andres Island adopt land use plans provided in law 388 of 1997 and prorróganse three (3) months the period prescribed in the law 505 of 1999, except those of Article 10 of that law.
The National Government will establish incentives in the allocation of resources for housing, equipment and road infrastructure and services, which do not constitute transfers, targeting municipalities and districts that have adopted the land use plan before 30 June
PARAGRAFO 2000. 1o. For those municipalities that were erected after the enactment of this law is hereby established within up to two (2) years from the election of the first mayor to adopt land use plans prior compliance with legal requirements and regulatory established for this purpose and referred to in the Act 388 of 1997 and concordant that modify or add.
PARAGRAFO 2o. From developing the deadline by a year counted from the effective date of this law for municipalities that have been erected within the year prior to the enactment of this law, to adopt land use plans prior compliance legal and regulatory requirements established for this purpose and referred to in the Act 388 of 1997 and concordant that modify or add. Effective Jurisprudence


ARTICLE 27. CRITERIA FOR REGIONAL DISTRIBUTION OF RESOURCES OF SUBSIDY FOR SOCIAL HOUSING. National family allowance resources for social housing under the 3rd Act. 1991 will be distributed as established by the regulations for the purpose by the National Government, which should include, among others, technical criteria that maximize the social benefit of the respective investments, contribute regionally to equity, to cater to the originating calamities natural disasters, potentializing VIS programs for self or associative systems and improving housing VIS. Effective Jurisprudence


ARTICLE 28. OBLIGATION OF CREDIT FACILITY resources into FINANCING INCOME HOUSING. Financial institutions should allocate annually for five (5) years after the effective date of this law, at least twenty-five percent (25%) of the increase in gross mortgage portfolio, the granting of credit to finance the construction , improvement and acquisition of social housing. The National Government will regulate the rate and special conditions to be used for housing for the disabled.
The obligation under the first paragraph of this Article shall be fulfilled if the respective entities show that during the period stipulated, made investments in mortgage bonds or mortgage securities arising from securitization processes housing portfolio social interest subsidiable the same amount.

PARAGRAFO. For all social housing remunerative interest rate may not exceed eleven (11) points during the year following the effective date of this law. Effective Jurisprudence


ARTICLE 29. ASSIGNMENT OF SUBSIDIES FOR SOCIAL HOUSING. In accordance with Article 51 and paragraph 2 of Article 359 of the Constitution, the resources of the national budget an annual sum will be allocated at least equivalent to one million four thousand nine hundred and one (1,004,901) monthly legal minimum wages, in order to be allocated to grantmaking Housing Urban and Rural Social Interest. The budget item referred to in this article may not be in any case of budget cuts. Effective Notes

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To comply with Article 51 of the Constitution of Colombia State entities or mixed character, promote, finance, subsidize or run subsidiable house plans directly or indirectly social interest designed and implemented urban housing programs and rural, especially for people who earn up to two (2) minimum wages and for the unemployed. These programs will be conducted in different ways under the terms of the 3rd Act.
PARAGRAFO 1991. 1o. The government will allocate annually 20% of the appropriate budgetary resources for rural VIS. At the end of each term if he had not placed the total resources in rural housing, the remainder will go to meet urban demand. Effective Notes

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PARAGRAFO 2o. The officers and professional soldiers of the Armed Forces; the officers and members of the executive level, officers of the National Police; civilian personnel working for the Ministry of National Defense, the Armed Forces and National Police; teachers officer; teachers linked to private schools; the self-employed and who earned full wages, will join the National Savings Fund. Membership shall upon application through voluntary savings in accordance with the regulations issued by the National Government.
In any case this will be part of voluntary savings ordinary savings that the Military Housing Fund make the officers, NCOs, executive level officers, professional soldiers, civilian personnel and uniformed or not the Ministry of National Defence, Armed Forces and National Police. This staff layoffs continue to be transferred to the Military Housing Promotion Fund and Police for administration, as established in Decree 353 of 1994, amended by Law 973 of July 2005.
Colombian residents in the abroad may join the National Savings Fund under the same conditions provided for in this paragraph. Effective Notes

PARAGRAPH 3.
. Municipal and district authorities require all housing projects have mandatory one percent (1%) of homes built and projects of less than one hundred (100) housing one for the disabled population. Homes for handicapped not have architectural barriers inside and will be adapted for this population, according to the regulations for the purpose by the Government. Effective Notes

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ARTICLE 30. GUARANTEES FOR MORTGAGE BONDS TO FUND PORTFOLIO VIS SUBSIDIABLE AND TITLES ISSUED securitization processes PORTFOLIO SUBSIDIABLE VIS. The National Government, through Fogafin grant guarantees for mortgage bonds to finance subsidiable portfolio VIS and securities issued in securitization processes portfolio VIS subsidiable, which issued credit institutions, under the terms and conditions indicated by the National government.
Resources subsidy for social housing may be allocated to the granting of these guarantees. The amount of such resources will correspond to the assumed premium or the payment of contingency, as the case may be and will be in addition to the sums earmarked in the national budget to granting direct subsidy in favor of home buyers interest subsidiable social.
The board of Inurbe, with the favorable vote of the Minister of Economic Development, will determine the amount of additional resources that may be granted in the form of collateral for the purposes stated in the preceding paragraph.

May also be granted in the form of government commitments to address a percentage of each periodic installments by loan debtors social housing or to cover part of the lease payment under the terms and conditions established by the National Government.
PARAGRAFO. When social interest subsidies granted in the form of guarantees, the corresponding contingency must be estimated on a technical basis, for purposes of quantifying the assignment.

ARTICLE 31. RIGHTS ATTORNEY REGISTRATION AND EXPENSES. The notary fees and registration costs that are caused during the establishment or modification of mortgage liens in favor of a participant in the specialized system of housing finance, to guarantee a loan of individual housing not subsidiable social interest, liquidated forty percent (40%) of the applicable ordinary rate.
The notary fees and registration costs that are caused during the establishment or modification of mortgage liens in favor of a participant in the specialized housing finance system, to guarantee a loan of individual housing of social interest, because of the amount they may be subject to direct subsidy, they will be settled at ten percent (10%) of the applicable ordinary rate.
For purposes of notary fees and registration fees, the constitution of family patrimony that is Article 22, which means inembargabilidad raised only in favor of the mortgagee that financed its purchase, or his successor in their rights, in all cases shall be considered as an act without amount. Similarly, the cancellation charges will be considered an act without amount.
PARAGRAFO. The provisions of this Article shall apply without prejudice to the rules establishing more favorable rates, for acts relating to social housing. Effective Jurisprudence


FINAGRO ARTICLE 32. RESOURCES FOR RURAL HOUSING OF SOCIAL INTEREST. Destínese twenty percent (20%) of the proceeds from the forced investments available to Finagro, to housing finance rural social interest, either for building programs or for the acquisition, construction and improvement individually on site own, under the conditions established for this purpose the National Agricultural Credit Commission, subject to the provisions of the Higher Council of Housing.
PARAGRAFO 1o. In cases where demand because of the remedies provided in this Article are not used, Finagro to assignment to agricultural development through the financing of agricultural activities in accordance with existing rules and its purpose.
PARAGRAFO 2o. For the purposes of the provisions of this article, Finagro permanently perform activities to promote this line of financing. Effective Jurisprudence

ARTICLE 33.
benefit recipients. The beneficiaries of housing allowance having lost it by inability to pay may obtain new housing allowance only once more and request the institutions responsible for its allocation. Effective Jurisprudence


Article 34. CREDITS FOR APPLICATION TO FINANCE INCOME HOUSING. The provisions of this Act shall apply to appropriations for construction and financing of social housing in it does not contradict its specific provisions.
For the purposes of this Act, the term social housing which meets the requirements established by law in this area.
CHAPTER VII.
DISPUTE RESOLUTION MECHANISMS

ARTICLE 35. ARBITRATION AGREEMENT. Effective Jurisprudence



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ARTICLE 36. ARBITRATION. Effective Jurisprudence



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ARTICLE 37. COSTS AND EXPENSES. Effective Jurisprudence



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CHAPTER VIII.

TRANSITION REGIME
ARTICLE 38. NAME OF OBLIGATIONS UVR. Within three (3) months after the effective date of this law, all obligations expressed in UPAC be expressed in UVR, according equivalence determined by the National Government. Once this term has been modified without the documents containing such obligations, they shall be construed expressed in UVR, by operation of this law.

PARAGRAFO. Financial institutions are authorized to redeem in advance the securities denominated in UPAC. Similarly, at the option of the debtor, they can be named savings accounts and other liabilities in UVR or pesos. Effective Jurisprudence

ARTICLE 39.
contentivos ADEQUACY OF DOCUMENTS THE CONDITIONS OF APPROPRIATIONS. Credit institutions shall adjust the documents contentivos credit terms of long-term individual housing, disbursed prior to the effective date of this law to the provisions thereof. For this they have a period up to one hundred eighty (180) days from the effective date of this law days.
Notwithstanding the foregoing, the notes by which debts and guarantees them when they estuvieren UPAC or expressed in pesos are implemented, be understood by their equivalence in UVR, by operation of this law.
PARAGRAFO 1o. The recalculation of credits in terms of dealing with this chapter and the corresponding documents stating the credit conditions of long-term individual housing, shall not constitute a novation of the obligation and therefore will not cause tax doorbell.
PARAGRAFO 2o. Within three (3) days following the effective date of this law, and at the request of who to December 1999 31 months, can prove that it is taking a home loan that is in the name of another natural or legal person, may require financial institutions to update the information and proceed to the respective surrogacy, as long as proves to have adequate capacity payment. Obtained subrogation, such credits shall be eligible for the payments referred to in this article. Effective Jurisprudence


ARTICLE 40. SOCIAL HOUSING INVESTMENT. In order to contribute to realizing the constitutional right to housing, the State will invest the sums provided for in the following articles to be paid to existing obligations which have been contracted with credit institutions for financing individual long-term housing and to contribute to the formation of savings to form the initial share of debtors who have delivered in payment their homes, under the terms provided in Article 46. PARAGRAPH
1o. Fertilisers this article refers to only be made for a credit per person. Whenever a person has long-term individual credit for more than one home, you should choose the one on which the payment and will inform the respective establishments or credit of which he is liable. If there is more than one credit for financing the same housing, payment may be made on all of them. If the loan has been restructured into a single entity, the reassessment will be made taking into account the credit date originally agreed.
PARAGRAFO 2o. Whoever accepts more than one payment in violation of the provisions of this paragraph, it shall return within a period of thirty (30) days fertilizers have been developing the provisions of this law and decrees that develop; failure to do so will incur criminal penalties established for the diversion of public resources. The restitution of the sums paid by the time limit set out must be made with default interest, calculated at the maximum rate permitted by law moratorium. Effective Jurisprudence


FERTILIZER ARTICLE 41. The credits are up to date. Fertilisers the preceding article to be made on existing balances at December 1999, the loans granted by credit institutions to finance long-term individual housing and 31:
1. Each credit institution shall take the balance in pesos at December 31, 1999, of each of the loans, which are up to date the last banking day of the year 1999.
For purposes of determining the total balance of each obligation, the value at the same time considers the credit granted by the Guarantee Fund of Financial Institutions, Fogafín, under the provisions of articles 11 and 12 of Special Decree 2331 of 1998, whenever the case be added.
2. The credit reliquidará the total balance of each of the loans, for which purpose use the UVR that for each of the days between the 1st. January 1993 and 31 December 1999, published by the Ministry of Finance and Public Credit, in accordance with the methodology established in Decree 856 of 1999. Effective Jurisprudence



3. The National Government will pay the obligations that shall be the day on December 31, 1999 the total amount of the difference throw the recalculation indicated in the preceding paragraph, by delivering titles that the 4th paragraph refers to. of this article, or in the manner determined by the Government.
PARAGRAFO 1o. For the recalculation of balances of loans for financing individual long-term housing, granted by credit institutions in local currency, an equivalence between the DTF and UPAC will be established in the terms determined by the Government, in order to compare the behavior of the UPAC with the UVR, for the purpose of having the same rebate than that for loans agreed in UPAC. Effective Jurisprudence


PARAGRAFO 2o. Credit institutions shall have a period of three (3) months from the present law to make the reassessment. Penalty interest that might arise in respect of repayment installments unattended during this period will be deducted from the value of the defaulting debtor payment required due concept to reduce your credit balance.
PARAGRAFO 3o. If the beneficiaries of the payments referred to in this Article, incur in arrears of more than twelve (12) months, the balance of the respective obligation will increase in the value of the payment received. The credit will return to the National Government securities referred the fourth paragraph of this article by that value. In any case if unpaid credit and guarantee proves is come effective, the credit institution will return to the national government the proportional part that corresponds to the amount collected.
PARAGRAFO 4o. The National Government is authorized to issue and deliver Treasury Securities TES denominated in UVR and performance as it may determine, with monthly payments, the amounts required to meet the cancellation of the sums to be paid to mortgage loans. These securities will be issued to ten (10) year term. These operations require for their validity the decree ordering the issue and determine the conditions of the securities, which may be issued under future years and based on resources from forced investments established by this law. Effective Jurisprudence


ARTICLE 42. PAYMENT TO credits that are in arrears. Mortgage borrowers who are in arrears as of December 31, 1999, will benefit from the payments referred to in Article 40, provided that the debtor states in writing to the financial institution their desire to benefit from the reassessment of credit, within ninety (90) days following the effectiveness of the law.
Complied with the above, the financial institution shall waive interest on arrears and restructure the credit if necessary.
In turn, the Government shall pay to such obligations the total amount of the difference to shed the reassessment of debt, made in accordance with the provisions of paragraph 2 of Article 41 above, by providing to the respective credit institution of the securities referred to in paragraph fourth of the same Article 41.
PARAGRAFO 1o. If the beneficiaries of the payments referred to in this article, incur in arrears of more than twelve (12) months, the balance of the respective obligation will increase in the value of the payment received. The credit will return to the National Government securities to which the 4th paragraph refers. Article 41, for that value. In any case, if the unpaid credit and guarantee proves is come effective, the credit institution will return to the national government the proportional part that corresponds to the amount collected.
PARAGRAFO 2o. A reassessments referred to in this article they paragraph 1 of Article 41 above shall also apply, as provided in paragraphs 1o. and 2nd. the same article.

PARAGRAFO 3o. Debtors whose obligations are due and on which relapse legal proceedings within ninety (90) days following the entry into force of this law days decide to make the reassessment of their mortgage, are entitled to request suspension of mentioned processes. Such suspension may automatically be granted by the respective judge. If the debtor agrees {within} the reassessment of its obligation in accordance with the provisions of this article describes the process will be terminated and will proceed to file without further ado. If in the following the restructuring of the credit year the debtor incurred again in default, the processes are restarted at the request of the bank and the single demonstration of default, at the stage they were at the time of suspension, and previous update of its size. Effective Jurisprudence

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