Special Law For The Cancellation Of Loans To Borrowers Of The Fosaffi Of The Program Manager New Dawn.

Original Language Title: LEY ESPECIAL PARA LA CANCELACIÓN DE CRÉDITOS A CARGO DE LOS DEUDORES DEL FOSAFFI DEL PROGRAMA NUEVO AMANECER.

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Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/ley-especial-para-la-cancelacion-de-creditos-a-cargo-de-los-deudores-del-fosaffi-del-programa-nuevo-amanecer/archivo_documento_legislativo

1 Decree Nº 359 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that the sanitation and strengthening financial Fund, hereinafter FOSAFFI, maintains in its portfolio loans, granted to low-income families by financial institutions for more than 20 years, for the acquisition and repair of real estate of social interest from the program "New dawn" and other similar within which there are mortgage credits from different communities.
II.-that the portfolio to be received by the FOSAFFI already showed problems of delinquency, and currently many of these loans have no chance of recovery, generating costs in its administration and without any benefit to the FOSAFFI, since this institution even already took them as losses.
III.-that the conditions, under which were granted these loans, have not been readecuadas to the financial reality of the country, generating a debt overhang and non-payment by debtors.
IV.-that because of the economic crisis and other factors, as the conditions of granting of credits, the capacity to pay of the debtors has been reduced, increasing even more the high indices of the BlackBerry in the payment of such obligations.
V that many debtors acquired debt, whose amounts originally were around US$ 3,000.00, and after paying for more than 20 years, now their debts amount to US$ 5,000.00 and more dollars for the interest and default fees. Many of these people are elderly and single mothers, with subempleos and a solution is not viable return to refinance their loans, including some debtors are on the verge of losing or have already lost their homes.
VI.-that it is necessary to issue a decree so that, once verified from debtors of the FOSAFFI of the programme "New dawn", have paid the value equal to the original amount of their credits, may cancel the outstanding balances to date.
Therefore, use of his constitutional powers and at the initiative of the deputies Mario Antonio Ponce López and Walter Durán (2003-2006 legislative period), and with the support of members and deputies: Othon Sigfrido Reyes Morales, Milena Calderon Sol of Escalon, José Rafael Machuca Zelaya, Irma Lourdes Palacios Vásquez, Antonio Echeverría Veliz, Silvia Alejandrina Castro Figueroa, Benito Antonio Lara Fernández , Hortensia Margarita Lopez Quintana, Abilio Orestes Rodriguez Menjivar, Edwin Victor Alejandro Zamora 2 David, Martha Evelyn Batres Araújo, Manuel Orlando Cabrera Candray, Jorge Castañeda and Ana Marina Castro Orellana, Valentin Aristides Corpeño, José Armando large penalty, Coralia Patricia war Andreu, Edilberto Hernandez Castillo, Osmin Lopez Escalante, Jose maximum Madriz Serrano, Heidy Carolina Mira Saravia, Francisco Eduardo Ortiz Amaya, Silvia Estela Ostorga de Escobar , Mariella Peña Pinto, Sergio benign Portillo Portillo, Carlos Armando Reyes Ramos, Marcos Francisco Salazar Umaña, Rosales Patricia Maria Salazar, Salvador Morales Sandoval, Misael Serrano Chavez, Mario Eduardo Valiente Ortiz, Abel Barrera heads, José Vidal Carrillo, Rafael Antonio Jarquin Larios, Walter de Jesus Montejo Melgar, Ciro Alexis Zepeda Menjivar, Marta Lorena Araujo, Blanca Estela Barahona de Reyes, Yohalmo Edmundo Cabrera Chacon , Dario Alejandro girls Argueta, José Álvaro Cornejo Mena, Norma Cristina Cornejo Amaya, Carlos Cortez Hernandez, Blanca preserve Noemi Estrada, Nery Areli Diaz de Rivera, Emma Julia Fabian Hernandez, Juan Manuel Flores Cornejo, Iris Marisol war Henríquez, José Augusto Hernandez Gonzalez, Estela Yanet Hernandez Rodriguez, Audelia Margarita López de Kleutgens, Samuel de Jesus Lopez Hernandez, Rodolfo Antonio Martínez, Yeymi Elizabeth Muñoz Morán , Guillermo Antonio Olivo Méndez, Mr. Orestes Fredesmán Ortez Andrade, Ismael Recinos Lopez, David Rodriguez Rivera, Sonia Margarita Rodriguez Sigüenza, Abner Ivan Torres Ventura, Jaime Gilberto Valdés Hernández, Ramón Aristides Valencia Arana, Richard management clear Reyes, Adam Cortez, Ana Vilma Cabrera Castro, Cesar Humberto Garcia Aguilera, Melvin David Gonzalez Bonilla, Carlos Walter Guzman Coto, Wilfredo Iraheta Sanabria, Juan Carlos Mendoza Portillo, Rafael Ricardo Morán Tobar , Lorenzo Rivas Echeverria, Abilio Orestes Rodriguez Menjivar and Bertha Rodríguez Mercedes Avilés.
DECREES, as follows: law special for the cancellation of credits to charge of the DEBTORS of the FOSAFFI of the program new dawn article 1.-the present law aims to cancel the balances of appropriations carried out by the FOSAFFI debtors who contracted credits, to acquire or repair housing of social interest and public utility under the special law for refinancing of housing loans to low-income households in the program "New dawn" No matter if they are in court charge or not, and the stage of the proceedings in which they are, including those cases in which have already been awarded the real estate constituting the guarantee and it is still unpaid balances.
Article 2.-cancellation apply only to those debtors who demonstrate, by means which indicate the FOSAFFI, or be verified in records carrying the FOSAFFI, have paid in any concept to the date of their application for this benefit, at least the value equal to the original amount awarded their credits for purchase of dwellings of social interest and public interest under the Act referred to in the preceding article.
This single benefit will be awarded to those debtors that, in the last ten years, have shown some interest payment, inhabited dwellings and that have not had any other benefit.
Article 3.-shall be cancelled, under this Act, the balance pending that it is outstanding at the date of the request of the interested party, once it is found or proven that it has been paid directly or through adjudication in payment by debtors, the value equals the credits granted original amount.

3. This benefit will also be applicable to those debtors who by means of Executive judgment delivered to their homes, and have acquired, through new financing of the FOSAFFI, the same dwelling or another similar.
Article 4.-for those debtors that this law being applicable to them still have outstanding balances corresponding to the difference between the value originally given and the total value paid, the FOSAFFI shall have the right to allow the payment of such balance in installments, with preferential interests that do not exceed 1% per year, with fees of no more than thirty dollars, according to the capacity to pay of each debtor.
Article 5.-the FOSAFFI will develop the procedure or procedures that will allow the effective implementation of this law.
Article 6.-this law will go into effect eight days after its publication in the official journal.
GIVEN in the blue room of the Legislative Palace: San Salvador, nineteen days after the month of April of the year two thousand thirteen.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ALBERTO ARMANDO ROMERO RODRÍGUEZ, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
DURAN JOSE FRANCISCO MERINO LÓPEZ, FRANCISCO ROBERTO LORENZANA, THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.
ROBERTO JOSE D'AUBUISSON, fifth Vice President.
LORRAINE GUADALUPE PENA MENDOZA, CARMEN ELENA CALDERÓN SOL STEP, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA PALACIOS LOURDES VASQUEZ, MARGARITA ESCOBAR, FIFTH SECRETARY. SIXTH SECRETARIAT.
FRANCISCO JOSE ZABLAH SAFIE, REYNALDO ANTONIO LOPEZ CARDOZA, SEVENTH SECRETARY. EIGHTH SECRETARY.
Note: In compliance with the provisions of article 97, paragraph 30 of the Interior regulation of this organ of the State, it is noted that this Decree was returned with comments by the President of the Republic, on May 14, 2013, solving this legislature accept 4 partially observations in plenary session held on May 30, 2013.
Reynaldo Antonio López Cardoza, eighth Secretary.
Presidential House: San Salvador, thirteen days of the month of June of the year two thousand thirteen.
PUBLISHED, Carlos Mauricio Funes Cartagena, President of the Republic.
Juan Ramon Carlos Enrique Caceres Chavez, Minister of finance.
D. OR. Nº 109 volume no. 399 date: 14 June 2013 JQ/geg 16-07-2013 legislative index