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Why The Family Compensation Is Authorized To Advance Financial Activity And Other Provisions

Original Language Title: Por la cual se autoriza a las cajas de compensación familiar adelantar actividad financiera y se dictan otras disposiciones

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920 OF 2004

(December 23)

Official Journal 45,772 of 24 December 2004

By which family compensation boxes are authorized to advance financial activity and other provisions are dictated.

Vigency Notes Summary

COLOMBIA CONGRESS

DECRETA:

ARTICLE 1o. Addition to Article 16 of Law 789 of 2002 which in turn modified Article 41 of Law 21 of 1982, with the following number.

14. General authorisation. The Family Compensation Boxes may advance the financial activity with their companies, workers, pensioners, independents and unemployed persons affiliated with the terms and conditions that the National Government will govern for the effect.

In accordance with the provisions of Article 335 of the Political Constitution, the authorization, inspection and surveillance of the specialized section of savings and credit of the Cajas de Family Compensation will be exercised by the Banking Superintendency.

In order to comply with the supervision and control activities that under this law should exercise, the Banking Superintendency will require the specialized savings and credit sections of the Family Compensation Banks. contributions, which will consist of tariffs that will be calculated according to the technical criteria that the National Government points out taking into account, among others, the parameters that to the effect the article establishes href="organic_system_financial_system_pr012.html#337"> 337 of the System Organic Statute Financial.

PARAGRAFO 1o. The Banking Superintendence must permanently verify the character, responsibility and suitability of the persons involved in the management and administration of the specialized savings and savings sections. Credit for the Family Compensation Funds to which the section may be authorized to set up. Similarly, it must verify the solvency of the autonomous patrimony of the specialized section of savings and credit in accordance with the appropriate capital rules applicable to the credit institutions as well as to verify, at the moment of the establishment of each section, the minimum capital not being lower than that required for the creation of financial cooperatives.

Family Compensation Boxes whose capital contribution capacity is lower than that established for financial cooperatives, may ask the Banking Superintendency for authorization for the creation of the specialized section savings and credit. In no case shall the required capital be less than 50% (50%) required for financial cooperatives.

PARAGRAFO 2o. The operations of the specialized savings and credit sections whose creation is authorized by this law, as well as their assets, liabilities and assets, must be completely separate and differentiated. of the operations, assets, liabilities and assets of the respective Family Compensation Fund.

For the purpose the specialized section of savings and credit will have the nature of an autonomous patrimony whose assets, including those that represent the contributions made to the capital of the same, will support exclusively the obligations contracted with depositors and others who are engaged in the development of authorized transactions, and may not be persecuted by other creditors of the respective Family Compensation Fund.

The administrators of the specialized savings and credit sections of the Family Compensation Banks will be dedicated employees designated by the respective Family Compensation Fund, for which the effect will be taken into account. the provisions of Article 22 of Law 222 of 1995 and shall comply with the requirements of the legal representatives of financial institutions, including their possession before the Banking Superintendence.

PARAGRAFO 3o. For the purposes of this law, the financial activity shall be understood as the collection in legal currency by the specialized savings and credit sections of the Family Compensation Funds. in term deposits, scheduled savings and contractual savings of its employees, pensioners, independent and unemployed members to place them again and exclusively among them through credits. As for affiliated companies, the financial activity shall comprise only the collection of resources in any of the above modalities.

14.1 Bans: To the Family Compensation Boxes and to the specialized savings and credit sections it is forbidden to them:

1. Obligate the affiliates, in any way, to make the savings in the respective box.

2. To force the members, directly or indirectly, to save the Monetary Fee of the Family Allowance, which will continue to be freely used by them.

3. Delegate, subcontract or deliver in administration with a third party the operation of its savings and credit sections, but in the development of the numerals 3 and 4 of article 16 of Law 789 of 2002 Family compensation that does not have specialized savings and credit sections may establish agreements and agreements with the boxes that have them, to the effect that the first ones act as decentralized agencies of the latter and through them to advance the financial activity with workers and employers of the Convention or Agreement Box. The National Government will regulate the matter.

4. Make capital investments with the resources captured.

5. The use of the resources deposited in the specialized section of savings and credit for carrying out operations with the same Family Compensation Fund or other entities in respect of which it exercises direct or indirect control, with its directors or administrators, the Fiscal Reviewer or officials or employees of the same Fund whose salary is greater than three (3) current statutory minimum wages, the spouses or relatives of those within the second grade of consanguinity or affinity, or single civilian.

6. Conduct insurance operations on property or persons, directly or indirectly, without prejudice to the ability to invest in insurance sector entities under their legal regime.

7. Condition the approval and disbursement of the social interest housing credit to the acquisition on their own projects.

8. To constitute charges or limitations to the domain of any class on the assets of the specialized section for savings and credit, or to assign them to operations other than those authorized to those sections, except that the taxes or limitations are constitute to ensure the payment of the price of a property acquired for the development of its business from the section's estate, or are intended to satisfy the general requirements imposed by a public authority on the development of a measure of support for the specialised section for savings and credit or for financial institutions Rediscounting to perform operations with such sections, nor will they be able to transfer the assets of the developing section of finance lease contracts, in the read-back mode.

9. The performance of the operations referred to in subparagraphs (c) and (d) of Article 10 of the Organic Statute of the Financial System.

14.2 Authorized Operations to the Specialty Savings and Credit Sections of the Family Compensation Boxes

1. Capture scheduled savings, contractual savings, or through term deposits.

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2. To acquire and negotiate with its liquidity surpluses representative securities issued by entities governed by public law of any order and securities offered by public offering by entities monitored by the Superintendency Banking.

3. Apply the system of savings for the saving and/or payment of credits, when the affiliated workers accept it voluntarily and expressly; mechanisms in which the respective employers will have to collaborate, without involving for the latter economic responsibility.

4. Grant credits only to workers, pensioners, independents and unemployed persons affiliated with the family compensation box, on terms determined by the National Government. 70% for social interest housing types 1 and 2 and 30% for Education and Free investment, except for the acquisition of bonds or any other type of public debt securities.

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5. In the case of credits for the acquisition of housing granted by the Family Compensation Banks and by the entities to which the provisions of Law 546 of 1999, the family patrimony are applicable constituted under the terms of the 9th of 1989, 546 of 1999 and 861 of 2003 will be embargable only by the entity that financed the acquisition, construction or improvement of the housing, or whoever happens to it in their rights.

6. Under the constitutional principle of the democratization of credit, 80% of the total value of the credits granted will be allocated for those persons who earn up to three (3) current statutory minimum wages (smlv). Also, in order to facilitate the conditions for the financing of social housing, they will be able to transfer their scheduled savings accounts from other financial institutions to the respective Caja, respecting the benefits and rights. acquired from those accounts for this purpose.

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7. Other than authorised by the National Government

14.3. Regulation of the activity of the Family Compensation Boxes with specialized section of savings and credit. The National Government, subject to the rules of this law, as well as the objectives and criteria laid down in Article 46 of the Organic Statute of the Financial System, may exercise the powers of intervention provided for in article 48 , in order to regulate the activity of the specialized sections of savings and credit of the Family Compensation.

14.4 Remission to the rules of the Organic Statute of the Financial System. As provided for in this law or in the rules which the re-glamping or developing, the provisions laid down in the Organic Statute of the System shall apply to the specialized sections of savings and credit of the Family Compensation Funds. Financial for credit institutions, as soon as they are compatible with the special nature of such sections and do not object to the special rules of this law.

14.5 Liquidity Funds. Family Compensation Boxes with a specialized section on savings and credit must permanently maintain an amount equal to at least ten percent (10%) of the total of their fetches in the following entities:

1. Credit institutions and cooperative bodies of a financial nature monitored by the Banking Superintendency. For the purpose, the resources must be kept in savings accounts, Certificates of Deposit to Term, Certificates of Savings to Term or Ordinary Bonds, issued by the entity.

2. In ordinary common funds managed by trust companies monitored by the Banking Superintendency, or in open securities funds managed by stock exchange companies or open investment funds managed by investment management companies subject to the supervision of the Superintendency of Securities.

The investments that are made with the liquidity fund resources of the specialized savings and credit sections of the Family Compensation Banks shall meet security and liquidity conditions in accordance with their purpose, and comply with the requirements to be determined by the National Government.

The amount of the fund shall be established by taking into account the effect, the balance of the deposit account and the demand or the amount that it makes, recorded in the financial statements of the month in which the report is reported, verified by the tax reviewer.

14.6 Taking possession of the savings and credit section of the Family Compensation Boxes. The possession of the goods, assets and business of the specialized section of savings and credit of a Family Compensation Fund may be available when any of the intended take-over causes are configured. in literals (a), (b), (c), (d), (e), (f), (h), (j) and (1) of Article 114 of the Organic Statute of the Financial System, where the measure is in the judgment of the Banking Superintendent necessary, without prejudice to the possibility for the latter to take any of the measures referred to in Article 113 of the same statute. In addition to the above mentioned causes, the takeover measure may also be imposed where the assets of the specialised section for savings and credit are reduced below 50% (50%) of the minimum capital required for the purposes of the its creation, and where it does not meet the minimum requirements for adequate capital required for such sections.

The rules provided for in Articles 115; 116; 117, with the exception of literals a) and d) of numeral 1; 291, with the exception of numeral 2; 293; 294; 295; 297; 298; 299, numeral 1; 300, numerals 1, 3, and 4; and 301, with the exception of numerals 4 and 5, all of the Organic Statute of the Financial System, be applicable in the case of the administrative forced liquidation of the specialised sections of savings and credit of the Family Compensation Boxes.

The takeover measure will be aimed at protecting the savings of workers, retirees or pensioners and the affiliated depositors, in order to enable savers to obtain payment.

For the purposes of applying these rules of the Organic Statute of the Financial System to the liquidation of the specialized sections of savings and credit of the Family Compensation Banks, the references that are made to the institution supervised or intervened shall be understood as predicates of the section of savings and credit object of liquidation. Also, the references made in those provisions to the Financial Institutions Guarantees Fund shall be construed as being made by the Cooperative Entity Guarantees Fund.

The liquidation of the specialized savings and credit sections of the Family Compensation Banks shall be exclusively related to the autonomous patrimony constituted in accordance with paragraph 2 of paragraph 14 of this article.

14.7. Deposit insurance. The National Government will be able to determine the mechanism through which the specialized savings and credit sections of the Family Compensation Banks will secure the deposits of their affiliates. For the purpose, the National Government may authorise the Cooperative Entity Guarantees Fund, Fogacoop, to grant such insurance, without prejudice to the requirements and terms required by that Fund to secure the deposits.

14.8 Sanctioning regime. The sanctioning regime applicable to the specialized sections of the Family Compensation Boxes, as well as its directors, administrators, legal representatives, tax reviewers and employees, will be the same regime applicable to the entities monitored by the Banking Superintendence.

PARAGRAFO. Addition to article 6o of Law 789 of 2002, with a paragraph 3o thus: " Once the resource transfers of the unemployed, without discrimination with or without linkage, are taken before the boxes, the balances not executed during the respective fiscal life, of all the resources of the fund to support the employment and the protection of the unemployed, will be destined for the obligatory fund for the family housing allowance of the social interest of the boxes, FOVIS, in accordance with the regulation on the matter ".

Effective Case-law
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ARTICLE 2o. The financial activity that in this law is authorized to the Family Compensation Boxes, by means of specialized sections of savings and credit, will be developed without prejudice to the credit service own resources provided for in Law 21 of 1982 and Law 789 of 2002.

PARAGRAFO. The Family Compensation Boxes that constitute a specialized section of savings and credit should allocate 50% of the annual surplus of that section to housing subsidies of social interest Type I and II with the methodology adopted by the National Government.

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ARTICLE 3o. The Family Compensation Boxes shall adapt their statutes in the terms of this Law, through the General Assembly, and for these purposes only, the quorum of the same shall be composed of any plural number of affiliated members, cited in accordance with the rules in force.

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ARTICLE 4. Every person, company or public or private entity, shall be obliged to deduct and withhold from any amount payable to its workers or pensioners, the sums that they owe to the cash- compensation or cooperative or employee funds, the obligation of which consists in the book, securities, or any other document subscribed by the debtor who for the purpose must give his prior consent. In no case shall the persons and entities referred to in this Article be able to charge any administration fee or any sum for performing this operation.

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Editor Notes
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ARTICLE 5o. This law governs from its enactment and repeals any provisions that are contrary to it.

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TRANSIENT. Within six (6) months of the entry into force of this law, the National Government will take the necessary measures to adjust the structure of the law. Banking superintendence providing it with the necessary budgetary and technical capacity in order to fulfil the functions of authorization, inspection and surveillance of the specialized sections of savings and credit of the Clearing Banks Family.

Only from the restructuring of the Banking Superintendence, so that it can comply fully with the inspection and surveillance function established in this law, which may authorize the development of the financial activity by the specialized savings and credit sections of the Family Compensation Boxes.

The President of the honorable Senate of the Republic,

Luis Humberto Gomez Gallo.

The Secretary General of the Honorable Senate of the Republic,

Emilio Ramon Otero Dajud.

The President of the Honorable House of Representatives,

Zulema Jattin Corrales.

The Secretary General of the Honorable House of Representatives,

Angelino Lizcano Rivera.

Republic of Colombia National Government

ALVARO URIBE VELEZ

Publish and execute.

Dada en Bogotá, D. C., at 23 December 2004.

The Minister of Finance and Public Credit,

Alberto Carrasquilla Barrera.

The Minister of Social Protection,

Diego Palacio Betancourt.

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