Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/disposiciones-especiales-referentes-al-banco-hipotecario-de-el-salvador-s.a/archivo_documento_legislativo
1 index Legislative Decree Nº 80 LA Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that the Mortgage Bank of El Salvador was founded by Decree extraordinary Nº 5, date of December 18, 1934, published in the Official Journal No. 6, volume no. 118, on January 8, 1935, having been arranged that it will be organized in the form of joint-stock company which was incorporated by public deed on January 29, 1935;
II. that by means of Legislative Decree No. 771 of date on April 25, 1991, published in the Official Journal No. 97, Tomo No. 311 of 29 May of the same year, containing the regime of incorporation of the Bank mortgage of El Salvador, to the law of sanitation and strengthening of commercial banks and savings and loan associations, and other special provisions It was repealed partially the law of the Banco Hipotecario de El Salvador, leaving its social business governed by the public deed of incorporation, in what does not contradict laws, while it will not transform properly to the code of Commerce and other laws of the banks and financial regulatory. The adequacy of the Bank's mortgage was carried out by means of public deed on August 27, 1993;
III.-that the Banco Central of reservation of El Salvador, in accordance with the concerned Legislative Decree No. 771, was empowered to enact an increase of share capital through the figure of the compensation of credit that it had against the mortgage bank. The shares which were issued, representing the decreed increase, would be transferred by the Banco Central of reservation for El Salvador to fund sanitation and strengthening financial, FOSAFFI; by what this institution is now owner of the 97.33% of the shares of the said Bank, product which, like its dividends, should be reinstated to the Banco Central of reservation for El Salvador when it requires it;
IV.-that article 101 of the Constitution provides that the State shall promote economic and social development, through the increase in production, productivity and the rational use of resources;
V that lending attention to the productive sectors of small and medium enterprises in the current economic circumstances, requires a banking institution with a tradition in the provision of services to the sectors mentioned above, to accompany public policies and that, having a major shareholder of State nature and keep their existing private shareholders, to allow the allocation of resources for supporting constantly its solvency and financial strength effect of 2 legislative index promote and encourage all sectors;
VI.-that it is necessary to ensure that the FOSAFFI or other institution of a public nature, be who keep shareholder ownership of the Mortgage Bank, to achieve the goals before exposed.
THEREFORE: At the initiative of the President of the Republic, by the Minister of the economy and use of his constitutional powers.
DECREES the following: special provisions relating to the Bank mortgage of EL SALVADOR, society anonymous property State article 1.-the Fund sanitation and strengthening financial, FOSAFFI, owner of common shares of the Mortgage Bank of El Salvador, hereinafter "The Bank", shall retain ownership of, as a minimum, the ninety-five per cent of all shares of the Bank, which may only be transferred to public institutions prior authorization from the Central Reserve Bank of El Salvador and in the conditions as its Board of Directors determine.
Any legal act in contravention of the provisions of the preceding paragraph shall be void.
Increases of Capital article 2.-the FOSAFFI can participate in increases in the Bank's capital, as long as it remains as a shareholder of this. The Council of Directors of the Bank Central of reservation of El Salvador will determine the form of participation.
Regime applicable article 3.-the Bank, everything that is not regulated by this regulation, shall be subject to the provisions of the banking law, law organic of the Banco Central of reservation of El Salvador, Supervision and regulation of the financial system Act and other applicable laws, according to their nature. Also, the Bank should continue with the provisions laid down in Legislative Decree No. 537, of date December 8, 2004, published in the Official Journal No. 233, volume 365, the 14th of the same month and year, and its subsequent reforms contained in the Decree legislative number 165, on November 30, 2006, published in the Official Journal No. 231 Volume 373, on 11 December of the same year and in the Decree legislative No. 529, dated December 2, 2010, published in the official newspaper Nº 25, volume no. 390, on February 4, 2011.
Modification of the Pact Social 3 index legislative article 4.-the Bank, starting from the entry into force of these special regulations must reform its social constituent writing, according to them, what is relevant.
Article 5.-the preferential application this Decree because of its special character, prevail over any rules that counteract it.
Repealing Article 6.-repeal of the Decree legislative number 771, date of April 25, 1991, published in the Official Journal No. 97, vol. 311, on 29 May of that year, which contains the regime of incorporation of the Bank mortgage of El Salvador, to the law of sanitation and strengthening commercial banks and savings and loan associations, and other special provisions and its subsequent reform contained in the Legislative Decree No. 453 dated 4 February 1993, published in the diario official No. 30, volume no. 318, of 12 of the same month and year; the Decree legislative number 781, of 24 November 1999, published in the Official Journal No. 225, vol. 345, 2 December of the same year; the Decree legislative number 640, dated November 29, 1990, published in the Official Journal No. 280, volume 309, 12 December of the same year, containing the privatization Act of the commercial banks and savings and loan associations, as well as its subsequent reforms.
Entry into force article 7.-the present Decree shall enter into force eight days after its publication in the official journal.
GIVEN in the blue room of the Legislative Palace: San Salvador, to the seventeenth day of the month of August in two thousand twelve.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ALBERTO ARMANDO ROMERO RODRÍGUEZ, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
JOSE FRANCISCO MERINO LÓPEZ, FRANCISCO ROBERTO LORENZANA DURÁN. THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.
ROBERTO JOSÉ d'AUBUISSON, fifth Vice President.
LORRAINE GUADALUPE PENA MENDOZA, CARMEN ELENA CALDERÓN SOL STEP, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCIA. JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
4 LEGISLATIVE INDEX IRMA PALACIOS LOURDES VASQUEZ, MARGARITA ESCOBAR, FIFTH SECRETARY. SIXTH SECRETARIAT.
RODRIGO SAMAYOA RIVAS, REYNALDO ANTONIO LÓPEZ CARDOZA, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, at thirty-one days of the month of August of the year two thousand twelve.
PUBLISH, CARLOS MAURICIO FUNES CARTAGENA, PRESIDENT OF THE REPUBLIC.
German Jose Armando Flores, Minister of economy.
D. OR. No.: 162 volume no.: 396 date: September 3, 2012 SV/ielp 17-09-2012
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