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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LAW 920 2004
(December 23)
Official Journal 45772 of December 24, 2004
Whereby the family compensation is authorized to advance financial activity and other provisions. Summary

Term Notes

THE CONGRESS OF COLOMBIA DECREES:
ARTICLE 1o. Added to Article 16 of Law 789 of 2002 which in turn amended Article 41 of Law 21 of 1982, with the following paragraph.
14. general authorization. The Family Compensation may advance banking business with their companies, workers, pensioners, unemployed independent and affiliates under the terms and conditions for the effect regulating the national government.
In accordance with the provisions of Article 335 of the Constitution, authorization, inspection and surveillance of the section of savings and credit of the Family Compensation shall be exercised by the Banking Superintendency.
In order to comply with the supervision and control according to this law are to perform, the Banking Superintendency require specialized savings and credit sections of Banks Family Compensation contributions, which consist rates which they are calculated according to the technical criteria specified by the Government taking into account, inter alia, that the effect parameters set out in Article 337 of the Organic Statute of the Financial System. PARAGRAPH 1.
. The Banking Superintendency must constantly check the character, responsibility and suitability of the persons involved in the management and administration of specialized savings and credit sections of the Family Compensation which are authorized the constitution of that section. Similarly, you should check the solvency of the pension trust of the section of savings and credit in accordance with the rules of capital adequacy applicable to credit institutions and should also check at the time of the constitution of each section, the minimum capital not less than required for the creation of financial cooperatives.
The Family Compensation whose capacity for capital contribution is less than established for financial cooperatives, may apply to the Banking Superintendency authorization for the creation of the section gives credit unions. In any case the required capital may be less than fifty percent (50%) required for financial cooperatives. PARAGRAPH 2.
. The operations of the sections credit unions whose creation is authorized by this law, as well as its assets, liabilities and equity, should be completely separate and distinct operations, assets, liabilities and equity of the respective Family Compensation Fund .
For this purpose specialized savings and credit section will have the nature of an autonomous patrimony whose assets, including NDO those representing the contributions to the capital of the same, will support only its obligations to depositors and others who developing constrict the authorized operations, and may not be pursued by other creditors of the respective Family Compensation Fund.
Managers specialized savings and credit sections of the Family Compensation time staff will be appointed by the respective Family Compensation Fund, for which purpose shall take into account the provisions of Article 22 of Law 222 1995 and shall meet the requirements of the legal representatives of financial institutions, including possession before the Banking Superintendency. PARAGRAPH 3.
. For the purposes of this Act shall be construed as financial activity uptake in legal currency by the specialized sections savings and credit of the Family Compensation resources in term deposits, programmed savings and contractual savings of workers, pensioners, independent and unemployed members to place again and exclusively between these through loans. As for affiliated companies comprise financial activity only raising funds in any of the above methods.
14.1 Prohibitions: In the Family Compensation and specialized savings and credit sections are prohibited:
1. Forcing affiliates, in any way, to make savings in the respective box.
2. Forcing directly or indirectly saving the Monetary Subsidy Fee Family members, which will continue to be freely used by them.

3. Delegate, outsource or deliver administration with a third operation sections savings and credit, but developing paragraphs 3 and 4 of Article 16 of Law 789 of 2002, the Family Compensation Funds that do not have specialized sections savings and may establish agreements and credit agreements with banks that have, in order that the first act as decentralized agencies of the second and through them forward financial activity with workers and employers in the Fund Convention or agreement. The National Government will regulate the matter.
4. Capital investments with the funds raised.
5. The use of the funds deposited in the specialized savings and credit for conducting transactions with the same Family Compensation Fund or other entities in respect of which it exercises direct or indirect control, its directors or managers, the Auditor section or officers or employees of the same box more than three whose salary (3) legal monthly minimum wages in force, spouses or relatives of those within the second degree of consanguinity or affinity, or only civilian.
6. Insurance operations on goods or persons directly or indirectly without prejudice to the ability to invest in the insurance sector entities in accordance with their legal regime.
7. Conditional approval and loan disbursement of social housing to purchase their own projects.
8. Encumber or limitations to the domain of any kind on the assets of the specialized credit unions, or allocate them to other operations authorized to those sections, unless encumbrances or limitations constituted to guarantee payment of the price of a good section acquired for the development of their business out of the assets of the section, or are calculated to meet the general requirements imposed by a public authority in developing a measure of support for specialized savings and credit section or by financial institutions rediscount operations with those sections, nor may transfer the assets of the section on development finance leases, in the form of leaseback.
9. The completion of the operations referred to in paragraphs c) and d) of Article 10 of the Organic Statute of the Financial System.
14.2 Authorized operations to specialized savings and credit sections of the Family Compensation
1. Scheduled capture savings through contractual savings or term deposits.

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2. Acquire and negotiate with excess cash securities representing debt instruments issued by public law entities ier n any order and titles offered through a public offering by entities supervised by the Banking Superintendency.
3. Apply libranza system for savings and / or credit payments when workers affiliated so accept voluntary and expressly; mechanisms in which the respective employers should work without involving financial responsibility for the latter.
4. Only grant loans to workers, pensioners and unemployed independent members of the family compensation fund, in the terms determined by the Government. 70% for social housing types 1 and 2 and 30% for Education and Freedom of investment, except for the purchase of bonds or any other government bonds. Effective Jurisprudence


5. In the case of loans for house purchase granted by the Family Compensation and entities to which is applicable to them the provisions of Law 546 of 1999, the family patrimony constituted as provided by the Laws 9th 1989 , 546 1999 and 861 2003 will only be attachable by the entity that financed the acquisition, construction or improvement of housing, or his successor in rights.
6. Under the constitutional principle of democratization of credit, 80% of the total value of the loans will be intended for those who earn up to three (3) monthly legal minimum wage (SMLV). Similarly, for the purpose of facilitating conditions for financing social housing may transfer their savings accounts and other financial institutions scheduled to the respective Fund, respecting the benefits and entitlements of those accounts for this purpose. Effective Jurisprudence


7. Other authorized by the National Government

14.3. Regulation of the activity of the Family Compensation with specialized savings and credit section. The National Government subject to the rules of this law, as well as the objectives and criteria set out in Article 46 of the Organic Statute of the Financial System, may exercise the powers of intervention under Article 48 thereof, for the purpose of regulate the activity of specialized savings and credit sections of the Family Compensation.
14.4 Referral to the rules of the Organic Statute of the Financial System. In matters not provided in this Act or the regulations that re glamenten or develop, shall apply to the specialized sections savings and credit of the Family Compensation the provisions of the Organic Statute of the Financial System for credit institutions as soon as they are compatible with the special nature of such sections and do not conflict with the special rules of this law.
14.5 Liquidity Funds. The Family Compensation with specialized savings and credit section shall permanently maintain an amount equal to at least ten percent (10%) of its total deposits in the following entities:
1. Credit institutions and financial nature cooperative bodies supervised by the Banking Superintendency. To this end, resources should be kept in savings accounts, Certificates of Deposit, Savings Certificates Term or ordinary bonds issued by the entity.
2. In ordinary mutual funds managed by trust companies supervised by the Banking Superintendency or open funds managed by securities brokers or brokerage firms open investment funds managed by investment management companies subject to the supervision of the Securities.
The investments made with resources of the liquidity fund specialized savings and credit sections of the Family Compensation must meet safety and liquidity commensurate with their purpose and meet the requirements established by the Government National.
The amount of the fund will be established taking to the effect, the balance of deposits and demand account or in lieu thereof, recorded in the financial statements of the month under report, verified by the auditor.
14.6 Takeover of savings and credit section of the Family Compensation. It may be arranged takeover of the property, assets and business of the section of savings and credit of Family Compensation Fund when compared to the same are any grounds for takeover provided set out in subparagraphs a), b ), c), d), e), f), h), j) and 1) of paragraph 1 of Article 114 of the Organic Statute of the Financial System, when in the opinion of the Superintendent of Banks to the extent necessary, without prejudice to the possibility that this take any of the measures referred to in Article 113 of the same statute. In addition to the grounds identified above, the measure of takeover may also be imposed when the assets of the specialized savings and credit section is reduced below l fifty percent (50%) of the minimum capital required for its creation, and when not meet the minimum requirements due to such sections adequate capital.
The rules laid down in Articles 115; 116; 117, except subparagraphs a) and d) of paragraph 1; 291, with the exception of paragraph 2; 293; 294; 295; 297; 298; 299, paragraph 1; 300, paragraphs 1, 3 and 4; and 301, with the exception of paragraphs 4 and 5, all of the Organic Statute of the Financial System, shall apply as appropriate to the compulsory administrative liquidation of specialized savings and credit sections of the Family Compensation.
The takeover measure will aim to protect the savings of workers, retirees or pensioners and affiliated companies depositors, so that savers can get their claims payment.
For purposes of the application of those rules of the Organic Statute of the Financial System to the liquidation of specialized savings and credit sections of the Family Compensation, references therein to controlled or operated entity shall be deemed made preached specialized credit union liquidated section. In addition, references in those provisions are made to the Guarantee Fund of Financial Institutions shall be deemed made by the Guarantee Fund Entities Cooperatives.

The liquidation of specialized savings and credit sections of the Family Compensation will be referred exclusively to the autonomous equity constituted under the provisions of the 2nd paragraph of paragraph 14 of this Article.
14.7. Deposit insurance. The Government may determine the mechanism through which the specialized savings and credit sections of the Family Compensation ensure deposits its affiliates. For this purpose, the Government may authorize the Guarantee Fund Entities Cooperatives, Fogacoop, to provide such insurance, subject to the conditions and terms that require the Fund to insure deposits are met.
14.8 Penalty system. The sanctions regime applicable to the specialized sections of the Family Compensation, and their directors, administrators, legal representatives, prosecutors and employees reviewers, will be the same rules applicable to entities supervised by the Banking Superintendency.
PARÁGRAFO. Added to Article 6 of Law 789 of 2002, with a 3rd and paragraph: "Once shipments of resources of the unemployed assortments, without discrimination with or without pre boxes linkage, balances not executed during the respective fiscal year, of all the fund's resources to support employment and protection of the unemployed, will be earmarked for compulsory fund for the family allowance income housing boxes, FOVIS, in accordance with the regulation on the matter. " Effective Jurisprudence

Article 2.
. The financial activity in this Act authorizes the Family Compensation through specialized savings and credit sections, will take place without prejudice to the credit facility with its own resources under Law 21 of 1982 and Law 789 of 2002 || | PARÁGRAFO. The Family Compensation constituting a specialized savings and credit section shall allocate the annual surpluses of this section at least 50% to grants social housing type I and II with the methodology adopted by the National Government. Effective Jurisprudence


ARTICLE 3. The Family Compensation adapt their statutes under the terms of this Law, through the General Assembly, and for these purposes only, quorum thereof shall consist of any plural number of members attending, cited in accordance with the rules force. Effective Jurisprudence


ARTICLE 4. Any person, company or public or private entity, be required to deduct and withhold from any amount to be paid by their workers or pensioners, the sums that these owed to the compensation fund or cooperative or employee funds, whose obligation recorded in libranza, securities, or any other document signed by the debtor for the purpose who must give their consent. In any case the persons and entities listed in this article may charge administration fee or any amount for this operation. Effective Jurisprudence

Editor's Notes



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The 5th ITEM. This law governs from its enactment and repeal the provisions that are contrary.

TRANSITORY ARTICLE. Within six (6) months following the entry into force of this law months, the Government will take the necessary steps to adapt the structure of the Banking Superintendency endowing the budgetary capacity and expertise necessary in order to fulfill the functions of authorization, inspection and surveillance on specialized savings and credit sections of the Family Compensation.
Only from the restructuring of the Banking Superintendency, so you can faithfully fulfill the function of inspection and surveillance required under this law, which may allow the development of financial activity by the specialized sections savings and credit of the Family Compensation.
The President of the honorable Senate,
Luis Humberto Gómez Gallo.
The Secretary General of the Senate of the Republic, Ramon Emilio Otero
Dajud.
The President of the Chamber of Representatives, Zulema Jattin
Corrales.
The Secretary General of the Chamber of Representatives, Angelino Lizcano Rivera
.
Republic of Colombia Government

Alvaro Uribe published and executed.
Given in Bogotá, DC, on December 23, 2004.
The Minister of Finance and Public Credit, Alberto Carrasquilla Barrera
.
The Minister of Social Protection, Diego Palacio Betancourt
.


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