LEGISLATTIVE ASSEMBLY - REPUBLIC OF THE SALVADOR

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DECEMBER 847

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF THE SALVADOR,

CONSIDERING:

I.- That article 101 of the Constitution of the Republic determines that the State

It will promote economic and social development through increased production, productivity and the rational use of resources and promote the various sectors of production.

II. - That by Legislative Decree No. 856, dated 21 April 1994, published in Official Gazette No. 98, Volume No. 323, of 27 May 1994

It issued the Law on the Creation of the Multisectoral Investment Bank.

III. - That our economy demands the creation of institutions that facilitate

access to the financing of the productive sectors and the medium- and long-term lending to strategic projects for the country.

IV. - That for the attainment of the purpose set forth in the preceding consideration is

need to transform the Multisectoral Investment Bank into a new credit institution with broader and inclusive powers and competencies in the area of Banking for Development, which can be accompanied by resources

to sectoral public policies established to promote the development of micro, small and medium-sized enterprises, exports, employment generation and thus the economic and social development of

country.

V.- To that end, it becomes necessary to allocate resources to funds with

specific purposes that complement the actions of the financial institutions in the granting of credits and guarantees, entrusting to the new credit institution the administration of the same and giving it to the

the necessary powers to exercise the said administration and to guarantee a responsible exercise of it; integrating its objectives into a Financial System for Development, to which the institutions will be added

who devote their efforts to achieving these same or similar purposes.

TANTO,

in the use of its constitutional powers and at the initiative of the President of the Republic, through the Minister of Finance,

DECRETA the following:

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LAW OF THE FINANCIAL SYSTEM FOR DEVELOPMENT

PRELIMINARY TITULE

Unique article. - The Financial System for Development Development, the Bank

Development of El Salvador and the Funds it administers: Fund for Economic Development and Salvadoran Fund for Guarantees regulated by this Law.

They also integrate this system, those institutions which, in accordance with their creation laws, fulfil the constitutional mandate to promote economic and social development through increased production, productivity and rational use of resources, including:

Banco de Fomento Agropecuario, Banco Hipotecario de El Salvador, S.A., Fondo Social para la Vivienda y el Fondo Nacional de Vivienda Popular; all of which must be coordinated and cooperated with each other in order to achieve economic development and will continue to be governed by their respective laws.

PART I OF THE DEVELOPING BANCO

CHAPTER I

Creation, Objectives, Institutions and Eligible Subjects

CREATION

Art. 1.- Believe the Development Bank of El Salvador, which may be abbreviated “BDES”, henceforth referred to as “The Bank” or “The Development Bank”, as a self-sustained, indefinite Public Credit Institution with a legal personality and its own heritage.

It will have its domicile in the city of San Salvador and may establish and maintain agencies, branches or units anywhere in the Republic and even maintain correspondent offices

Out of her.

In the text of this Law, the Central Reserve Bank of El Salvador may be called “The Bank

Central” and the Superintendence of the Financial System, “The Superintendence.”

OBJECTIVES

Art. 2.- The Bank will have as its main objective to promote, with financial and technical support, the development of viable and profitable investment projects in the productive sectors of the country, in order to

contribute to:

(a) Promote the growth and development of all productive sectors;

(b) Promote the development and competitiveness of entrepreneurs;

(c) To promote the development of micro, small and medium-sized enterprises;

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(d) Promote the development of the country ' s exports;

(e) Job generation; and

(f) Improve education and health services.

ELEGIBBY INSTITUTIONS AND SUJECTS

Art. 3.- In order to achieve its objectives, the Bank will conduct financial operations in market conditions acting through eligible institutions or directly with eligible individuals.

Banks, financial, national or foreign entities, supervised or not by the Superintendency and qualified as such under this Act shall be considered eligible institutions, as well as

official or public credit institutions.

Eligible subjects for direct financial operations

Bank, natural or legal persons of the private, national or foreign sector.

All eligible or eligible institutions shall comply with the rules and procedures established by the Bank and with their qualification, monitoring and inspection and

risk management to maintain the Bank's financial health.

CHAPTER II

Schools and Bank Prohibitions

FACULTADES

Art. 4.- The Bank shall have the following powers:

(a) Grant credits and perform other financial operations directly to eligible individuals, for financing private sector investment projects to be developed

the national territory;

(b) Granting through eligible institutions for project financing

of private sector investment to be developed in the national territory;

(c) To grant credits and conduct financial operations in foreign currency through

institutions eligible or directly with the guarantee of these, natural or legal persons to finance in the countries of destination, the import and marketing of goods and services of Salvadoran origin;

(d) Advancing foreign currency obligations by eligible or eligible institutions for funding for the Bank ' s objectives;

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(e) Develop financial products to support the regionalization of Salvadoran companies;

(f) Develop training, advisory and technical assistance programmes aimed at increasing and improving access to financing, competitiveness and productivity

enterprises;

(g) Financing, undertaking or contracting technical, legal and financial studies for analysis

sectoral, pre-investment studies or project structuring and dictate policies applicable to them;

(h) To administer the resources of the Economic Development Fund and the Salvadoran Guarantee Fund, established in this Law, and to carry out the necessary acts and contracts for the achievement of its purposes;

(i) Investing in securities or securities issued by banks and other financial entities, provided that such resources are intended to meet the Bank ' s objectives;

(j) Investing in securities or values issued by the Central Bank;

(k) Keep deposits in the Central Bank, banks and other financial intermediaries

authorized to collect deposits;

(l) Keep deposits in dollars and other foreign currencies in foreign banks

in accordance with what the Board of Directors determines through a qualified vote;

(m) To obtain credits from national or international institutions, in accordance with their annual financial programme;

(n) Emitting and obtaining negotiable obligations under its annual financial programme;

(o) Manage security funds;

(p) Establishment, administration and/or participation in holders, general warehouses

and financial instruments and mechanisms, such as funds of guarantee, investment, ownership, risk capital, subordinate debt, syndicated credits, trusts and other financial instruments and structures that meet the objectives of the Bank,

for which it may provide resources of its own property or of third parties.

With regard to cases of subordinate debt in which the Bank is the creditor, the

a contracting financial intermediary may count within his supplementary capital the subordinate debt that is with the Bank, in accordance with the law governing such intermediary;

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(q) assign or give in administration credits according to what is determined by the Board of Directors;

(r) To sign cooperation agreements with national and international institutions or entities that meet the objectives of the Bank; and to act as agents of foreign financial entities;

(s) Conduct other financial operations necessary to achieve its main objective.

What is stated in paragraph (p) of this article shall be carried out in accordance with the policy issued by the Assembly of Governors for that purpose, noting the macroprudential rules issued for that purpose by the competent regulatory body.

PROHIBITIONS

Art. 5.- The Bank is prohibited:

(a) Fund directly or indirectly the State and acquire documents or titles issued by

the State, except in the case of article 30 (e) of this Law. The Bank may also not grant guarantees, bonds or guarantees for State obligations.

Notwithstanding the provisions of the preceding paragraph, the Bank may grant credits, guarantees, bonds or guarantees only to those official or public credit institutions and to the State institutions and enterprises of an autonomous nature that comply with the

eligibility requirements set out in this Act;

(b) Capturing deposits in sight, savings or term;

(c) To grant credits or to finance in any way unqualified entities as eligible institutions;

(d) To grant credits or to finance in any way to subjects who are, according to the Superintendency registry, in a category of risk that requires the constitution

of sanitation reserves of more than 15 per cent or generally not qualified as eligible;

(e) Investing in actions of any kind, except in the case referred to in article 4 (p) of this Act;

(f) Fund projects that are not viable, profitable or refinancing credits. It may only grant refinancing of credits granted by the Bank itself;

(g) Finances for consumption, without productive purposes;

(h) Condonar, in whole or in part, the capital and interest originated by debts

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with the Bank, in credits granted with its resources or with the resources of the Funds administered under this Act;

(i) To grant credit to municipalities with their own resources or with the resources of the Economic Development Fund.

CHAPTER III

Operations with the Central Bank

OPERATIONS WITH THE CENTRAL BANCO

Art. 6.- The Bank shall not be obliged to maintain reserves in the Central Bank as a liquidity reserve and may conduct the following operations with the Central Bank:

(a) Use the deposit accounts that the eligible institutions manage in the Central Bank to carry out their disbursements and charges operations; and

(b) Maintain your liquid resources deposited in the Central Bank or in time to invest in securities or values issued by the Central Bank. In the case of term deposits, the Central Bank will pay them on market conditions.

CHAPTER IV

From Bank Heritage

INICAL CAPITAL

Art. 7.- The Bank's Initial Capital will be DOSCIENTS A NOVENT DOSCIENTS AND DOS MIL VEINTE DÓLARES WITH DOS CENTAVOS DE DÓLAR OF THE UNITED STATES OF AMERICA,

constituted by the Heritage of the Multisectoral Investment Bank, to which the Development Bank succeeds by ministry of this Law.

PATRIMONIO

Art. 8.- The World Heritage Site will consist of:

(a) Initial capital;

(b) Contributions from the Central Bank;

(c) Donations of the State and other public institutions;

(d) Donations and other resources from legal or natural persons other than those referred to in the previous paragraph;

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(e) Capital reserves established under Article 9 of this Law;

(f) Asset revaluation surplus;

(g) Surplus of previous years; and

(h) Uses of the exercise.

The State may constitute special assets to be administered by the Bank, to be used for specific purposes related to the Bank ' s objectives.

CAPITAL RESERVES

Art. 9.- The Bank shall be obliged to make its annual profits the following reserves:

(a) Legal reserve for a value of 10 per cent of the prior-tax profits, up to a proportion equal to 25 per cent of its Initial Capital;

(b) Complementary reserve for the maintenance of the value of the estate, which shall be established to maintain its value in real terms. For the calculation of this reservation it must be considered that at the end of the exercise, the heritage reaches the

value of the net assets of the previous year, increased by a percentage at least equal to the observed annual inflation rate, provided that the profits after taxes obtained in the year permit; and,

(c) Other reservations determined by the Board of Directors of the Bank.

IMPLEMENTATION OF UTILITIES

Art. 10.- At the end of each period, the net profits of the period after the constitution

of the capital reserves referred to in Article 9 of this Law shall apply as follows:

(a) Dividends to the Central Bank, at least 25 per cent, as determined by the

Governors; and

(b) The remnant will be recorded as a surplus of previous exercises, able to decide

Assembly of Governors on its capitalization.

The distribution of dividends to the Central Bank will be carried out to the extent that the

requirement of a property fund referred to in article 26, paragraph 3, of this Law and that the surplus of prior periods and the corresponding period shall at all times be equivalent to at least the balance of outstanding products of net reserving of sanitation.

COBERTURA OF PERDIDAS

Art. 11.- The losses resulting in some exercise shall be covered in the following order:

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(a) With the prior exercise surplus;

(b) With applications equivalent to capital reserves, if the surplus of previous exercises does not reach; and,

(c) From the capital, if the reserves are still insufficient to absorb the balance of losses.

For the purpose of this Law, it shall be understood that the Bank ' s assets shall not in any way respond to its obligations and operations under the resources of the Economic Development Fund and the resources of the Salvadoran Fund for Guarantee

constitute these special assets administered by the Bank and be independent of the Bank’s heritage.

CHAPTER V

From the Bank Management and Administration

GOVERNMENTAL ASSEMBLY

Art. 12.- THE SUPERIOR AUTHORITY OF THE BANCO WILL BE EJECTED BY THE ASSEMBLY

GOVERNMENTS, INTEGRATED IN THE NEXT FORM:

(a) THE MINISTER OF HACIENDA

(b) THE PRESIDENT OF THE CENTRAL BANCO;

(c) THE MINISTER OF ECONOMY;

(d) THE TECHNICAL SECRETARY OF PRESIDENCE;

(e) THE PRESIDENT OF THE DEVELOPMENT BANK;

(f) THREE PROPERTY MEMBERS AND THEIR SUPLENT, ELECTED AND NAMES BY THE CHAIRMAN OF THE REPUBLIC, OF A LITTLE BODY OF ASSESSMENTS OF THE AGROPULARY, INDUSTRIAL AND

MICRO, PEQUEÑA AND MEDIANA EMPRESA AND NON-GOVERNMENTAL ORGANIZATIONS RELATED TO THE ECONOMIC DEVELOPMENT ITEM. THE LEAST ENTITIES UNDER THE

They should be used to agree to their internal order;

(g) A PROPERTY MEMBER AND ITS SUPPORTANT, ELECTED OF A TERNA PROPOSED BY

PRIVATE UNIVERSITY AUTHORIZED BY THE MINISTERY OF EDUCATION AND CONCREDITATION OF VIRGENT CALITY.

IN CASE OF AUSENCE OR IMPEDIMENT OF THE LITERAL TITIES (a) AL (d),

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They will be able to deflect so that they will succumb to the IMMEDIATE CATEGORY OF THE SUJA.

(f) and (g) They will be appointed by the CHAIRMAN OF THE REPUBLIC, for a period of five years. THE PROCEDURE OF CONVOCATORY, ELECTION

AND NAME WILL BE REGULED IN A SPECIAL REGULATION THAT THE CHAIRMAN OF THE REPUBLIC MAKES IN THIS EFFECT.

IF ANY CAUSE DOES NOT MAKE THE APPOINTMENT OR TOM OF POSSESSMENT OF THE SUBSTITUTE MEMBERSHIP OF THE GOVERNMENTAL ASSEMBLY, THE ONE WHO ESTABLISHED THE CHARGE WILL BE CONTINUED IN YOUR FUNTIONS, MAKING THE NAME AND ALL POSSESSMENT OF THE

GOBERNADOR CORRESPONDIENTE.

SUPPORTING MEMBERS will attend the meetings with VOZ BUT WITHOUT VOTO, EXCEPT

WHEN THEY SUSTITUTE TO THE RESPECTIVE PROPERTYME. (1)

PRESIDENT OF THE ASSEMBLY

Art. 13.- The President of the Assembly of Governors shall be the Minister of Finance, failing that, the President of the Central Bank and in the absence of the Central Bank, the Minister of Economy. The Secretary of the Assembly of Governors will be the President of the Bank.

ATRIBUTIONS

Art. 14.- The powers of the Assembly of Governors are:

(a) Establish general guidelines that will guide operations and services

to develop by the Bank in achieving its objectives, as well as those necessary for the fulfilment of the purposes of the Economic Development Fund and the Salvadoran Guarantee Fund regulated by this Law;

(b) To appoint the members of the Board of Directors of the Bank, except its President, who shall be appointed by the President of the Republic. It may also suspend and

remove, if any, the members of the Board of Directors that it has appointed;

(c) To approve the report, the Balance, the State of Results, the Application of Utility

and the Restructuring of Heritage, at the end of the annual exercise;

(d) Adopt the annual financial programme to include: projected financial statements,

credit plan, investment plan and resource plan;

(e) Approval of the general budget, as proposed by the Board of Directors, as well as any

modification to the same, considering criteria of rationality and efficiency in its operations;

(f) Approval of the remuneration of the President of the Bank, considering the remuneration

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are in force in the financial system;

(g) To approve the diets of the members of the Board of Directors of the Bank;

(h) Appoint the external auditors of the Bank and the Funds created under this

Law, observing the respective legal procedure; and

(i) Other powers indicated in the Act.

MEETINGS

Art. 15.- The Assembly of Governors shall meet normally at least twice a year and extraordinarily, whenever convened by the President or Secretary of the Assembly of Governors, or at the request of at least three of its members.

The Assembly of Governors will session with the presence of at least five of its members.

The resolutions of the Assembly of Governors shall be taken at least five concurring votes and shall be recorded in records, corresponding to the President of the Assembly the vote of quality in the event of a draw.

DIRECTARY BOARD

Art. 16.- The Bank ' s management and administration will be headed by a Board of Directors, which

shall comply with the powers and functions set forth in this Act.

COMPOSITION

Art. 17.- THE DIRECTIVE BOARD IS INTEGRATED BY:

(a) A CHAIRMAN, appointed by the CHAIRMAN OF THE REPUBLIC for a period of five years, would like to be the CHAIRMAN of the BANCO;

(b) A PROPERTY DIRECTOR AND ITS SUPLENT, ELECTOS OF A TERNA PROPOSED BY THE MINISTERY OF HACIENDA;

(c) A PROPERTY DIRECTOR AND ITS SUPLENT, ELECTOS OF A TERNA PROPOSED BY THE DIRECTIVE COUNCIL OF THE CENTRAL BANCO;

(d) A PROPERTY DIRECTOR AND ITS SUPLENT, ELECTOS OF A TERNA PROPOSED BY THE MINISTERY OF ECONOMY;

(e) A PROPERTY DIRECTOR AND its SUPLENT, ELECTOS OF A TERNA PROPOSED BY THE MINISTERY OF AGRICULTURA AND GANADERIA;

(f) THREE PROPERTY DIRECTORS AND THEIR SUPLENT, ELECTRONIC AND

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CHAIRMAN OF THE REPUBLIC OF A LITTLE ASSISTANCE OF THE AGROPULARY, INDUSTRIAL AND

MICRO, PEQUEÑA AND MEDIANA EMPRESA AND NON-GOVERNMENTAL ORGANIZATIONS RELATED TO THE ECONOMIC DEVELOPMENT ITEM. THE LEAST ENTITIES INCLUDING CANDIDATES IN THE LISTED,

They should be used to agree to their internal order;

(g) A PROPERTY DIRECTOR AND ITS SUPLENT, ELECTOS OF A PROPOSED TERNA

OF PRIVATE UNIVERSITY AUTHORIZED BY THE MINISTERY OF EDUCATION AND CONCREDITATION OF VIGENT QUALITY.

THE MEMBERS OF THE DIRECTIVE BOARD DURARAN CINCO YEARS IN YOUR CARGES AND CAN BE REELECTED FOR NEW PERIODS. EXCEPTING TO THE CHAIRMAN OF THE BANCO, EVERYBODY MUST BE NOminated by the GOVERNMENTAL ASSEMBLY.

THE PROPERTY DIRECTORS WILL BE INTERRETED TO THE VICEPT AS TO THE SECRETARY OF THE DIRECTTIVE BOARD.

THE SUBSTANT DIRECTORS WILL TAKE THE SESSIONS WITH VOZ BUT WITHOUT VOTE, EXCEPT WHEN THEY SUSTITUTY TO THE RESPECTIVE PROPIETARY DIRECTOR, WHO WILL REPLACE AS MEMBERS OF THE BOARD IN CASE OF AUSENCE.

ELECTION OF MEMBERS TO THE LITERALS (f) AND (g) It will be carried out in accordance with the rules of the special rules that the

PRESIDENT OF THE REPUBLIC. (1)

AUSENCES

Art. 18.- In the event of the President ' s temporary absence, the Vice-President shall serve on the Board of Directors, who shall preside over it; if both are absenteeed, the meeting shall be chaired by the designated member

the Board.

In the event of the final resignation, absence or impediment of the President, Vice-President or

any member of the Board, the relevant agency shall elect the replacement to complete the period.

If the appointment or possession of a substitute member of the Board of Directors is not carried out for any reason, the incumbent of the Board shall continue to serve until the appointment and possession of the corresponding Director.

INCOMPATIBILITY

Art. 19.- The President shall be a staff member of the Bank and his/her quality shall be incompatible with any other public office, except for the nature of the institution he/she chairs or others authorizing the law. The provision of paid services with tax funds or entities in which the State has majority participation will also be incompatible.

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The provisions of this article shall not apply to the commissions and representations entrusted to it by the Bank itself, related to its functions.

REQUIREMENTS, INHABILITIES AND RESPONSIBILITIES OF DIRECTORS

Art. 20.- Members of the Board of Directors and their alternates shall be Salvadorans by birth, persons of recognized honorability, with university degree, experience and notorious competence in matters related to the nature and operations of the Institution.

They are incapable of serving as members of the Board of Directors:

(a) Those who have not attained 30 years of age;

(b) Representatives of the Legislative Assembly and the Central American Parliament,

Political Secretary-General, members of the leadership positions and their relatives within the fourth degree of consanguinity or second degree of affinity;

(c) The President and Vice-President of the Republic, those appointed to the Presidency of the Republic, the Ministers and Deputy Ministers of State, the President and Judges of the Supreme Court of Justice and Magistrates of the Chambers of Second Instance, the President and Judges of the Court of Accounts of the Republic, the Attorney-General of the Republic,

the Attorney General of the Republic, the Procurator for the Defence of Human Rights, the President and Judges of the Supreme Electoral Tribunal, the Mayors, members of municipal councils, Sindico Municipal, Secretary Municipal, the

Diplomatic representatives and the Presidents of State institutions and enterprises of an autonomous nature;

(d) Relatives within the fourth degree of consanguinity or second degree of affinity of the President of the Republic or of the members of the Cabinet of Government;

(e) Relatives within the fourth degree of consanguinity or second degree of affinity of the members of the Assembly of Governors, of any other member of the Board or who forms with the referred persons part of the same society of persons;

(f) Insolvent or in a state of bankruptcy, when they have not been rehabilitated;

(g) Those convicted of property-related offences or the Public Treasury;

(h) Those who in the five years prior to their election had been officials or administrators of a financial institution and participated in the original approval

of credits to which, in accordance with the corresponding rules, they have been constituted as a whole of sanitation reserves equivalent to 25% or more of the capital and reserves of the respective financial institution;

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(i) The debtors of the financial system for credits to which a 50 per cent or more of the balance has been established in the five years prior to their election;

(j) Those who for any cause are legally incapable; and,

(k) Administrative directors or officials of eligible institutions.

Members of the Board of Directors, prior to assuming their office, shall render a statement

affidavits regarding the fulfillment of the requirements of this Law and the failure of its causal person to comply with any inability for his appointment.

It shall be up to the Superintendency, in accordance with the law regulating it, to verify compliance with the requirements of the members of the Assembly of Governors and of the Board of Directors, as well as to qualify and declare their inability.

Members of the Assembly of Governors referred to in article 12 (f), (g), (h) and (i) of this Law shall meet the same requirements and shall apply the same inability.

and criteria for the removal of office from members of the Board of Directors of the Bank.

The directors, executive directors or general managers of the Bank shall at all times ensure that the management of the Bank is carried out under criteria of honesty, prudence and efficiency, such as

good traders in their own business, at all times complying with the provisions of the applicable laws, regulations, instructions and internal rules, having to refrain from practising or applying the legal rules in a manner that intentionally distorts the objectives of technical regulations

Prudential. They will also be responsible for ensuring that the information provided to the Superintendence and the public is truthful and transparently reflecting the Bank ' s true financial situation.

AND OBLIGATIONS OF THE DIRECTIVE BOARD

Art. 21.- These are the powers and obligations of the Board of Directors:

(a) To submit to the Assembly of Governors any matters falling within its competence;

(b) Ensure compliance with the objectives and other provisions set out in this Act;

(c) Adopt the organizational structure by establishing hierarchy, responsibilities, powers and functions that enable efficient performance

the achievement of its objectives;

(d) Adopting the Internal Labour Regulations, the labour standards applicable to staff

the Bank and other rules, instructions and manuals required by the Bank ' s internal administration and the resources of the Funds administered by the Bank;

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(e) To appoint and remove, on the proposal of the President, permanent staff and employees whose appointment is determined in the Salary Scheme

Bank. This attribution may be delegated to the President of the Bank;

(f) Approval of salary and other remuneration of staff and employees, in

in accordance with the salary regime of the financial sector of the country;

(g) Approving the annual enterprise procurement plan or its modifications and exercising the other

powers and obligations under the Public Service Procurement and Contracts Act;

(h) Approving the tendering or competitive examination bases, and, where appropriate, awarding the corresponding contracts for such processes, may designate an authority to facilitate their management, establishing in accordance with their organizational structure and budgetary amount,

a hierarchical structure for the award of contracts and approval of tendering or competitive examination bases;

(i) To approve the active and passive operations of the Bank, which may be delegated to the President or other Bank officials;

(j) Approving acquisitions and leases of real estate, as well as

buildings that are necessary for the operation of the Bank;

(k) Dictate credit and investment policies and standards;

(l) Authorize applicant subjects and institutions, once they have been found to be eligible;

(m) Fix the limits of the interest rates of the financial operations carried out by the Bank with its own funds or resources from the Funds it manages, with the institutions

and eligible subjects, issuing periodically instructive to include the maximum margins from the financial cost, universally acceptable in Development Bank, which may be differentiated according to the type of financial operation; and

conditions and commissions that the Bank will charge for its products and services;

(n) Fix the limits of the financial operations that the Bank undertakes with its own funds

or with resources from the Funds it manages, in relation to eligible institutions, eligible subjects and beneficiaries;

(o) Establish the reserves of forecasting and sanitation, as well as the capital reserves to strengthen the Bank ' s assets and other reserves applicable in accordance with the rules issued by the competent regulator;

(p) To approve the operations that the Bank undertakes with resources from the Funds that it administers in accordance with the provisions of this Law, and may delegate this authority to the President or other Bank officials;

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(q) Hiring agents, commissioners or, in general, any other kind of services required

for the execution and promotion of its business, in accordance with the authorizations and conditions issued by the Board of Directors of the Bank;

(r) To issue for the administration of the resources of the Salvadoran Guarantee Fund the rules and programmes relating to the modalities and commissions of guarantees;

(s) To authorize, on the proposal of the President, the recruitment of professionals and technicians to undertake special studies or work and advice in the field concerned, as well as that of temporary staff. This attribution may be delegated to the

Chairman or other Bank officials;

(t) Defining deadlines, interest rates and other conditions for emissions of values

Fund for Economic Development, as well as to propose them to the Minister of Finance to deal with the guarantee of the State to enjoy these emissions;

(u) To authorize payment arrangements with eligible individuals and institutions deemed necessary to recover the resources of the Economic Development Fund with which the credits were granted; and

(v) The others that this Law attribute to you.

The powers set out in subparagraphs (e), (h), (i), (p) and (s) would require the delimitation of the scope of the delegation.

For the administration of the Bank ' s resources and the fulfilment of its purposes, the Board may establish such committees and bodies as it deems necessary.

PRESIDENT OF THE BANCO

Art. 22.- Direct administration of the Bank’s business will be by its President, a

who will be responsible for the overall supervision and coordination of the activities of the Bank; he will also be the legal representative of the institution and will also have the following functions:

(a) To exercise the legal representation of the Bank. It is also empowered to conclude all acts and contracts in which he is interested in his name and representation, as well as to enter into all kinds of obligations, in accordance with this regulation.

Law. The previous faculty may be delegated to the appointed securities;

(b) Ensure compliance with the resolutions of the Board of Directors;

(c) Ensure compliance with the targets set out in the Bank ' s Annual Financial Programme;

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(d) Ensuring compliance with the objectives and powers of the Bank and subject to the rules to which its operations should be adjusted;

(e) Authorize financial operations related to the regular management of the Bank;

(f) Monitor the general progress of the Bank and the Funds it manages, ensuring its harmonious and efficient functioning;

(g) Propose to the Board of Directors policies, credit and investment rules and the Internal Labour Regulations, as well as the corresponding reforms; and

(h) The rest that this Law signals to you.

CONVOCATORIES

Art. 23.- The ordinary sessions of the Board of Directors shall be convened by the President or by those who do their own time and shall be held at least once a month, and may hold meetings

extraordinary when necessary.

The Board ' s meetings will be held validly with the participation of five of its members and the resolutions will require at least five agreed votes, except for exceptions

provided for in this Act. In the event of a tie, the President of the Bank shall have a quality vote.

The Directors who disagreed with any resolution taken, shall record their vote

reasoned in the record of the meeting at which the matter was dealt.

CONFLICT OF INTEREST

Art. 24.- When a Director has a personal interest in any matter that should be discussed or resolved by the Board of Directors or whether his associates have it in a Society of Persons, Spouse or Relatives

within the fourth degree of consanguinity or second degree of affinity, the meeting should be withdrawn as soon as the matter begins to be dealt with and kept withdrawn from it until a decision is taken. The Director ' s withdrawal should be recorded in the record.

Any act, resolution or decision of the Board of Directors that contravene this provision shall involve all Directors who have agreed with their vote to form a resolution, in

personal responsibility for the damages they had caused.

REMOTION OF THE CARGO

Art. 25.- (f) and (g) OF ARTICLE 12, AS THE MEMBERS OF THE DIRECTIVE BOARD OF THE BANCO,

CAN BE REMOVEED FROM YOUR CHARGEMENTS OBSERVING THE DEBIDO PROCESS, BY FALLING REQUIREMENTS AND DEBARING OR INCURRING INHABILITY THAT THIS LAW IS SERIOUS SERIOUS SECOND DETERMINATE BY THE SUPERINTENDANCE OF ARTICLE 20

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He named it with the expression of the ravages in which it was fundamental. (1)

When, by any means, the competent authority is aware of a case of removal, the Superintendency shall be responsible for the investigation and documentation of the situation within a period not exceeding 10 working days from the day after the date on which it was known.

of that causal. With the information, it will promptly issue the corresponding resolution, dismissing or opening the removal procedure. In the latter case, the decision shall be notified to the investigating officer, who, within five working days of the notification, may be pronounced

enclosing such evidence as it deems relevant. The resolution shall be issued within twenty working days from the date on which the officer in question has pronounced, or if it is not pronounced, this period shall be counted from the next day on which the person in question has been notified

resolution. Furthermore, the competent authority in any state of the proceedings may in a motivated manner order the provisional suspension in the position of the official, a precautionary measure that may be amended or revoked if appropriate.

CHAPTER VI

Bank operations

PONDERAL AND ACTIVE FUND

Art. 26.- In order to keep its solvency constantly, the Bank must present at all times a relationship, at least 12 per cent between its assets and the sum of its weighted assets. For these purposes they will be weighted:

(a) By 100 per cent, the total value of net assets of sanitation reserves and depreciations, excluding cash availability, transit funds,

deposits in the Central Bank, banks and local financial intermediaries or foreign banks and investments in securities issued or guaranteed by the State or by the Central Bank, in accordance with the provisions of this Law;

(b) By 50 per cent, the value of guarantees, bonds, guarantees and other net contingent operations of sanitation reserves, as well as contributions to the Salvadoran Fund for

Guarantees;

(c) By 20 per cent, funds in transit, the value of investments in securities issued

or guaranteed by the State or the Central Bank and deposits in the Central Bank, banks and local financial intermediaries or foreign banks.

The weighting criteria established in the Banks Act may also be used for other operations not covered by this article.

In any case, the Bank ' s estate fund may not be less than 4 per cent of its total obligations or liabilities to third parties, including contingents.

Operations with resources from the Economic Development Fund or the Fund

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Saviour of Guarantees will weigh 0% to quantify your level of solvency.

PATRIMONIAL FUND

Art. 27.- For the purposes of this Law shall be understood by the Patrimonial Fund or Neto Heritage,

the sum of the accounts contained in article 8 of this Law, the accumulated losses must be deducted.

They may not be computed as the Patrimonial Fund, the reserves or provisions of liabilities, or those intended to serve pensions, pensions and other benefits that are compulsory or voluntarily granted by the Bank to their staff. Nor will insurance reserves be computed, such as

are the depreciations and sanitation reserves that should be constituted considering the provisions of the Superintendency.

NEGOTIATION OF TITLES

Art. 28.- For negotiation in stock of negotiable obligations or other securities or securities,

the Bank shall be subject to the law prescribed for banks regulated by the Banking Act.

FOR THE FUNCTIONING

Art. 29.- The Bank may purchase, lease or retain all types of goods, as well as construct the facilities necessary for its operation, provided that its total net value does not exceed 5 per cent of its Patrimonial Fund.

EXTRAORDINARY ACTIVES

Art. 30.- The Bank may accept all kinds of guarantees and purchase of movable or immovable property of any kind, when such acceptance or acquisition is made in any of the following cases:

(a) As a supplementary guarantee, in the absence of a better one, when it is essential to ensure payment of credits in your favour, resulting from prior operations;

(b) When, in the absence of other means of payment, you have to accept it in total or partial cancellation of credits resulting from operations in the development of your

functions;

(c) When you have to buy them, to make credits in your favor, or

security of their rights as a creditor;

(d) When he is awarded under judicial action promoted against his debtors;

and,

(e) When handed over to him by an institution or subject that would have been eligible, he may accept in full or partial payment securities or values issued by the State, always

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that there is no other means of payment.

WORKING OF THE EXECUTIVE JUICIE

Art. 31.- The processing of the Executive Judgment that promotes the Bank shall be subject to the provisions

in the Banking Act and, in its absence, the current legal system.

PLACE FOR THE LIQUIDATION OF EXTRAORDINARY ACTIVES

Art. 32.- Extraordinary assets acquired by the Bank pursuant to article 30 of this Law shall be disposed of within five years of the date

of its acquisition, the provisions that the Board of Directors define in the corresponding policy must be made.

In justified cases, this term may be extended by the Superintendency up to one hundred and eighty days.

If, at the end of the period, the Bank had not liquidated the extraordinary assets, it shall be obliged to provide them as a loss in its accounting and to sell them in public auction within sixty days of the date of expiry of the period, after publication of three notices in two newspapers of the highest national circulation, in which the place, day and time of the auction will be expressed.

and the value that will serve as the basis of it.

The basis of the auction will be the real value of the assets, as estimated by the Bank based

in two professional walrus made by firms previously qualified by their Board of Directors. If there are no bidders, the auctions will be repeated every six months, taking as the basis for these a price that will be less and less than the previous one, in an amount equal to 10% of the base of the first

auction.

Superintendence shall ensure compliance with these provisions and, in the event of non-compliance

of the provisions of this article, the Bank shall promote the forcible judicial auction of extraordinary assets, in accordance with the provisions herein.

The procedure for the liquidation of extraordinary assets should consider the aspects included in the Banks Act not regulated in this article.

PUBLICATION OF FINANCIAL STATES

Art. 33.- The Bank must publish in two newspapers of the highest national circulation, for one

only in the first sixty days of each year, the General Balance and its State of Results relating to the Accounting Exercise for the previous year, subject to the rules issued by the competent regulatory authority in accordance with the Law. Such balance shall be dictated by

External Auditors registered in the Register that carries the Superintendence; the corresponding opinion will be published on the same occasion.

The financial statements for each year must also be sent to the Central Bank

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financial, within the first three months of the end of the corresponding period, including the notes and the opinion of the external auditor.

The Bank must also publish on its website, at least three times in the year, the State of Results and the General Balance, one of which will be referred to on 30 June each year. The

Two other dates shall be determined by technical rule issued by the competent regulatory authority in accordance with the Law.

CHAPTER VII

Bank budget and control

BUDGET AND SALARY REGIME

Art. 34.- The Bank will have Annual Budget and Propios Salary Regime.

The control of the Bank ' s budget and the resources of the funds it manages will be exercised by the Court of Accounts of the Republic.

INAPLICABILITY OF LEYES

Art. 35.- The Bank’s management will not be applicable to the Organic Financial Administration Act

of the State, or any other legal provisions relating to the collection, custody and removal of public funds and to the general management of State property and staff benefits, except as specifically provided in this Law.

EXTERNAL AND FISCAL AUDITORY

Art. 36.- The Assembly of Governors shall appoint to the Bank an External Auditor and a Fiscal Auditor who shall give opinions on the financial situation of the Bank and on the fulfilment of their tax obligations, respectively.

SUPERVISION OF THE

Art. 37.- The Bank shall be subject to the supervision and supervision of the Superintendency, which, pursuant to this attribution, may also conduct audits in the eligible institutions, in respect of the operations of the Bank with its own resources or resources of the Funds administered by the Bank

created under this Law.

The Bank will contribute to the cost of the services provided by the Superintendence,

in accordance with applicable legal regulations, without including within their total assets the resources corresponding to the Funds administered by the Fund.

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CHAPTER VIII

Financial operations through Eligible Institutions

AUTHORIZATION AND RULES FOR INSTITUTIONS

ELEGIBLES

Art. 38.- Banks, government or public credit institutions and other financial entities

may request and be authorized to conduct financial operations with the Development Bank provided that, in accordance with their nature, they meet the following requirements:

(a) Satisfactory release, evidenced by a ratio of at least 12 per cent between the Patrimonial Fund and the sum of its weighted assets, in the manner established by the Banking Act;

(b) Acceptable return on Heritage;

(c) Satisfactory liquidity;

(d) Appropriate management, evidenced by the following elements: (i) professional, qualified and experienced managers and managers; (ii) capacity to evaluate and

to monitor investment credits; (iii) appropriate accounting, internal control and audit systems; and (iv) efficient operating policies and procedures, approved by their Boards of Directors or the respective senior decision bodies.

The Board of Directors will develop the parameters for compliance with the above requirements, considering the technical rules that are dictated for this purpose by the competent regulatory entity.

They shall also be deemed eligible for financial transactions to national or foreign financial intermediaries who are or are not supervised by the Superintendency, always

and when they comply with the Bank’s policy of rating, monitoring and inspection and risk management to maintain its financial health.

OBLIGATIONS OF THE ELEGIBLE INSTITUTIONS

Art. 39.- Eligible institutions shall maintain their quality of such, provided that they comply with the

following obligations:

(a) To comply with the rules established by the Bank;

(b) To grant and evaluate diligently the credits granted by the Bank;

(c) Ensure the proper use and destination of the resources provided by the Bank; and

(d) Replace the guarantees granted if necessary.

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OFFICIAL OR PUBLIC INSTITUTIONS OF CREDIT

Art. 40.- In order to obtain the qualification of eligible institutions, the Official or Public Credit Institutions shall comply with the requirements referred to in article 38 of this Law. However

previously, in the event that the profitability on the Heritage is not adequate for any Official or Public Credit Institution, it may present the corresponding justification and it will be the Board of Directors that will resolve it.

CREDITS

Art. 41.- When the Bank finances through eligible institutions, it is assumed that the Bank ' s resources-funded credits will especially guarantee its obligations to the Bank and the Bank will enjoy the privilege of the borrower on the garment, without the need for surrender

material of the titles or their notification.

ADDITIONAL GARANTIA

Art. 42.- If it is necessary for an eligible institution, at the Bank ' s request, to constitute a pledge on the credits of its membership in the Bank as an additional guarantee to guarantee its obligations, the material delivery of the titles and notification shall not be necessary

the debtor for the perfection of the act. However, the Bank shall have at all times the right to require the delivery of the said titles and to notify in excerpt in two national circulation periodicals the additional tax constituted, so that payments after such notification are made directly

the Bank or its legitimate representatives. In the instrument in which the item is constituted, it shall be sufficient to indicate, in annex, that it is part of it, the date of granting, denomination of the creditor, name and surname of the debtor, capital and interest owed and in the case of mortgage credits

Pygnus, their registration in the Register of the Raice and Hipotecas Property.

When the garment is on mortgage credits, the total or partial cancellation of the tax

may be done in the form of article 743, paragraph 1, of the Civil Code.

CHAPTER IX

Financial Operations Directly conducted by the Bank

OPERATIONS

Art. 43.- The Bank shall conduct financial operations directly only with the subjects

referred to in article 3 of this Law, when such operations meet the objectives of the Bank. Financial operations regulated in this Chapter shall be carried out by the Bank in accordance with prudential rules of regulation and supervision in the management of risks and that preserves its financial balance.

REQUIREMENTS

Art. 44.- The granting of financing directly, must be supported by a

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analysis of the respective requests to assess the risk and feasibility of the project and the recovery of the funds, as well as criteria for environmental sustainability and profitability

social, in your case. This should include:

(a) Technical and financial billing of the project;

(b) Applicants ' payment and business capacity;

(c) Tax release;

(d) Present economic situation and future projections; and

(e) Guarantees that, according to the case, are necessary.

In addition to the above, the Bank may evaluate other elements that it considers necessary for the proper evaluation of the financing request.

Subjects who at the time of applying for direct funding do not have credit history, must comply with the same characteristics as those who have risk ratings.

LIMITS IN THE TORAGEMENT OF CREDITS

Art. 45.- The Bank will conduct direct medium- and long-term financing operations.

Exceptionally, labour capital financing may be granted when it is related to an investment project.

The amounts of direct funding granted for a single project should be more than 2% of the Bank's Neto Reserves Heritage.

The Bank may grant credits up to 50% of the total funding required from the project.

In addition, the Bank will not be able to perform with the same subject or economic group, operations

direct funding for more than 10% of your Neto Reserve Heritage.

At the time of its award, the portfolio balance of projects owned by

Public sector institutions may not as a whole represent more than 15 per cent of the Bank ' s entire portfolio of credit. In the case of projects of joint economy companies or any other with private public participation in which the public sector participates with more than 40% of the

property, the limit will be 20%. In any case, these financings may not represent as a whole more than 35 per cent of the Bank ' s entire credit portfolio at the time of its granting.

EXTRACTTED CERTIFICATIONS

Art. 46.- The provisions of article 231 of the Banking Act will apply to the Bank

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to release certificates in excerpts of the mortgage credits that agree to be registered in a preventive manner.

CHAPTER X

Financial Conditions for Direct Operations and through Eligible Institutions

INTEREST TASES

Art. 47.- Interest rates established by the Bank should be higher than the cost of

resources incurred by the Bank.

Interest rates established by the Bank to eligible institutions should not be lower

the cost of real capture for public resources, in order not to de-incentive the operations of the institutions eligible to the public.

GARANTIAS

Art. 48.- The Bank, for the fulfilment of the obligations acquired by eligible or eligible institutions, may require the granting of guarantees in accordance with the system

and as determined by the Board of Directors.

The Bank may agree that in the event of impairment of guarantees, eligible institutions or

eligible subjects substitute or grant additional guarantees to ensure the recovery of the respective credit.

DATION IN PAGO

Art. 49.- If necessary to give effect to the garment that guarantees the credits to which it is concerned

Article 41, these may be received in full or partial payment.

The credit portfolio received in the case of the preceding subparagraph shall be settled in accordance with

Article 32 of this Law establishes it; in the meantime, it may be entrusted to another institution electible for its administration.

INSPECTION

Art. 50.- Eligible institutions will be at risk for the credits they grant and will be

responsible for analysing the technical-economic feasibility of projects, the capacity to pay its users and all the significant financial aspects of the applicant. In addition, they must verify that the users have the corresponding authorizations and permissions according to the projects to

develop, if applicable.

For credit operations with eligible individuals, the role of the Bank will be to verify and monitor later the use of resources, in accordance with the rules established to establish

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it.

It may also conduct audits and inspections, both in the institutions or eligible individuals and require the information required for such verification.

If in the exercise of the above powers it is established that the eligible institution or subject has ceased to comply with the necessary rules, obligations or requirements to be subject to credit of the Bank, as well as with the provisions set forth in this Law, or if it is ascertained that its borrowers

does not comply with the provisions of the respective contract, the Bank shall apply any measures it deems relevant.

OTHER OPERATIONS

Art. 51.- Without prejudice to the provisions of this Law, the Bank may establish conditions

specials related to the financing of non-traditional permanent crops, low-income students and projects that have a significant impact on the recovery and maintenance of the environment.

Without prejudice to the provisions of article 5 (a) of this Law, the Bank may conduct financial operations with autonomous State institutions and entities, with mixed economic societies and others with private public participation, to support projects that comply with those

Bank objectives.

The Bank Board of Directors may authorize the transfer of reimbursable resources to the Fund

of Economic Development, establishing all conditions and deadlines for its recovery. Such transfers of reimbursable resources as a whole shall not exceed 50 per cent of the Fund ' s credit portfolio, nor exceed the maximum amount of funding approved by the Board

Bank directive for eligible institutions.

To meet its objectives, the Bank’s Board of Directors will budget resources that

may be refundable or not for:

(a) The development of technical, legal and financial studies for pre-investment or

structuring projects susceptible to financing by the Bank;

(b) The training of low-income students; the development of programmes to promote

promotion, competitiveness, innovation, scientific research and transfer of technology for productive sectors; preservation of the environment; development of strategic markets for the country; and for the realization or support of activities

promoting entrepreneurship, financial education or the development of the Bank ' s objectives.

All of the above in accordance with the policies of the Board of Directors.

PART II of the ECONOMIC DEVELOPMENT FUND

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CHAPTER I

CREATION AND FINALITIES

CREATION

Art. 52.- Trust the Development Bank, an Economic Development Fund, identified in this Law as “the Fund” or “the FDE”, which is a special heritage for specific purposes and will be

administered by the Bank.

For the administration of the resources of the Fund and the fulfilment of its objectives,

Board of Directors of the Bank may establish such committees, bodies and administrative mechanisms as it deems necessary.

FINALITIES

Art. 53.- Fund resources will be used to promote the development of viable projects

to contribute to:

(a) Increase production and export of national products and services;

(b) Support the strengthening of productive chains;

(c) Promote the development and competitiveness of entrepreneurs;

(d) To promote the development of micro, small and medium-sized enterprises; and

(e) Job generation.

ELEGIBBY INSTITUTIONS

Art. 54.- For projects to be developed in the country, the Fund ' s resources will be used to conduct financial operations directly with eligible marketable subjects. They may be subject

eligible for these purposes, natural or legal persons of the private, national or foreign sector.

Contracts that are necessary with financial institutions, such as

banks, government and public credit institutions and other financial entities, to carry out financial operations with eligible individuals.

The Fund ' s resources will also be used to grant funding to eligible institutions qualified as such by the Bank, so that these institutions in turn grant funding, as well as trusts administered by the Bank whose object is

financing or development of the micro, small and medium-sized enterprise.

In turn, for the purposes of this Title, institutions that are eligible for the Bank will be eligible.

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CHAPTER II OF FACULTADES AND PROHIBITIONS

SPECIAL FACULATIONS OF BANCO WITH FUND RESOURCES

Art. 55- With the resources and for the purpose of the Fund, the Bank shall have the following special powers:

(a) To grant credits for the financing of private sector projects to be developed in the national territory;

(b) To grant credits and to perform other financial operations through eligible or directly secured institutions to natural or legal persons to finance in the countries of destination, the import and marketing of goods and services of origin

Salvadoran;

(c) Financing, undertaking or contracting technical, legal and financial studies for analysis

sectoral, pre-investment studies and project structuring;

(d) To advance, from the Fund ' s resources, obligations owed by the institutions or eligible individuals in order to obtain financing for the purposes of the Fund ' s

Fund;

(e) Establish, finance and/or participate in financial instruments and mechanisms, such as

funds of guarantee, investment, ownership, venture capital, subordinate debt, union credits, trusts and other financial instruments and structures that meet the objectives of the Fund.

With regard to cases of debt subordinated to credits granted with funds from the Fund, other contracting financial entities may account within their

the subordinate debt to the Bank, in accordance with the law governing the latter;

(f) Develop training, advisory and technical assistance programmes aimed at increasing and improving access to competitive financing of enterprises;

(g) Hiring agents, commissioners or, in general, any other kind of services necessary for the execution and promotion of your business, in accordance with the authorizations and conditions issued by the Board of Directors of the Bank;

(h) Investing in securities or values issued by the Central Bank;

(i) Investing in securities or securities issued by banks and other financial entities, provided that such resources are used to meet the purposes of the Fund;

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(j) Keep deposits in the Central Bank, banks and other financial entities

authorized to collect deposits;

(k) Keep deposits in foreign banks of the front line;

(l) Acquiring negotiable obligations; and

(m) To carry out other financial operations necessary to achieve the purposes of the Fund, in accordance with this Law.

In addition, for the purpose of the Fund, the Bank may obtain credits from national or international institutions and assign or administer the credits provided with the Fund ' s resources.

EMISSIONS

Art. 56.- Where compliance with the Fund ' s purposes is required, the Bank may, against the Fund ' s assets, issue values, place them and buy them in the secondary market. These values shall have the guarantee of the State, for which the approval of the Legislative Assembly will be required and the returns generated by these values will not be taxable for the Income Tax. The

performance of such values shall be related to an international reference rate, the Board of Directors of the Bank which shall determine the other characteristics of the values, which may be redeemed in advance. These titles can be negotiated at all times in a stock exchange,

as regulated by the Securities Market Act for the values issued by the State and the Central Bank.

Banks regulated by the Banks Act will invest in these values the equivalent of 3% of the deposits in the financial sector, based on the average of the daily balances of the previous month reported to the Superintendency; they must be acquired in respect of each issue, in proportion to the deposits

of each bank at the moment of placement of the issue. When emissions have exceeded, individually or jointly, an amount equivalent to 3 per cent of those deposits, banks may continue to invest in these values to the percentage defined in the corresponding regulations. The

amounts from the negotiation of these values will increase the Fund ' s resources.

For the purposes of article 49-C of the Banking Act and article 31 of the Banking Act

Cooperatives and Societies of Savings and Credit, the values in reference will be considered as liquid assets, without prejudice to the liquidity reserve established in article 44 of the Banking Act and article 27 of the Cooperative Banking and Credit Corporations Act.

In order to maintain the monetary stability and liquidity of the financial system, the Central Bank may acquire the values referred to in this article, in accordance with the authority established in the article

49 (b) of its Organic Law. In addition, the Development Bank is empowered to acquire these values, acting in coordination with the Central Bank and in accordance with what is determined by the Board of Directors of the Development Bank. For the above purposes, the Central Bank and the Development Bank are empowered to hire contingencies of liquidity credit lines, conduct operations

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I report or use any financial mechanism to give liquidity to the values referred to in this article.

The competent regulatory body shall issue the technical rules necessary for the implementation of this article.

PROHIBITIONS

Art. 57.- Fund resources may not be used to:

(a) Direct or indirect financing of the State or State institutions and enterprises

to acquire documents or titles issued by the State and the above-mentioned institutions. Nor may they be used to grant guarantees, bonds or guarantees for State obligations or institutions and enterprises

State of an autonomous nature.

Notwithstanding the provisions of the preceding subparagraph, these resources may be granted

loans only to official or public credit institutions that meet the eligibility requirements set out in this Law.

(b) Grant or finance in any way to unqualified institutions or subjects

as eligible, or not compliant with the Bank ' s rating, monitoring and inspection and risk management policies.

c) Investing in actions of any kind.

(d) Funding projects that are not viable, profitable or refinancing

credits, except credits granted with resources of the same Fund.

(e) Funding credits for unproductive consumption.

CHAPTER III OF FUND RESOURCES

FUND RESOURCES

Art. 58.- The resources of the Economic Development Fund shall be as follows:

(a) A contribution of Thirty Millions of United States dollars of the Fund

Special of the Resources Provenient of the Privatization of ANTEL, which will be handed over to the Bank within a maximum of ninety days from the validity of this Law;

(b) A contribution from the Central Bank of Twenty-five Million Dollars of the United States of America;

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(c) A contribution from the State through the Ministry of Finance of Ten Million Dollars of the United States of America;

(d) Inheritances, legacies and donations of national or foreign origin for the purpose of the Fund;

(e) Contributions from other public institutions;

(f) The reservations made under article 60 of this Law;

(g) Asset revaluation surplus;

(h) Surplus of previous years; e,

(i) Uses of the exercise.

Contributions to those referred to in subparagraphs (b) and (c) shall be effective to the extent they are

necessary for the implementation of the operations of the Fund.

The Ministry of Finance, in the next five years, according to its financial capacity, should strengthen the Fund ' s resources.

The Central Bank ' s property rights on the Fund ' s resources will include the value of the contribution regulated in paragraph (b) of this article, plus the components of the assets that

proportionally this generates. The other contributors to the Fund will have the same treatment in relation to their contributions.

PATRIMONIAL FUND

Art. 59.- For the purposes of this Law shall be understood by the Patrimonial Fund or Neto Heritage

of the Fund, the amount of the accounts contained in the previous article, should be deducted from the accumulated losses.

They may not be computed as Patrimonial Fund, reserves or provisions of liabilities. Nor will the sanitation reserves be computed, which should be considered by the Superintendency.

BOOKS

Art. 60.- In order to preserve and increase the Fund ' s resources, the following reservations should be made from its annual profits:

(a) Legal reserve valued at 15 per cent of profits, until its accumulated value represents 25 per cent of the Patrimonial Fund; and

(b) Other reservations to be determined by the Board of Directors of the Bank, provided that they are bound

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specific and duly justified. Before forming any reservation, the necessary provisions will be made to meet the payment of taxes and the legal reservation.

IMPLEMENTATION OF UTILITIES

Art. 61.- At the end of each exercise, the net profits of the period after the establishment of the reservations referred to in article 60 of this Law shall apply as follows:

(a) A percentage of 20 per cent for the payment of dividends, which will be distributed to the entities that have contributed to the Fund, in proportion to their contributions;

(b) A percentage not exceeding 10 per cent according to the Bank’s Board of Directors for non-reimbursable programmes; and

(c) The remnant will be recorded as a surplus of previous exercises.

COBERTURA OF PERDIDAS

Art. 62.- The losses resulting in some exercise shall be covered in the following order:

(a) With the funds of the prior-period surplus account;

(b) With applications equivalent to reservations, if the surplus does not reach; and,

(c) The remnant, from the property fund, should the reserves still be insufficient to absorb the loss balance.

SEPARATE CONTABILITY

Art. 63.- This Economic Development Fund will be charged with the profits or losses that

result from operations with their resources, as well as the costs and costs of their operation.

For the purpose of the preceding subparagraph, the operations of the Fund shall be recorded separately from the Bank ' s accounting, which shall be audited separately by the auditors appointed for that purpose by the Assembly of Governors.

CHAPTER IV OF THE OPERATIONS OF THE FUND

PONDERAL AND ACTIVE FUND

Art. 64.- At all times, the Fund should present at least 12 per cent of its assets and the sum of its weighted assets. For these purposes, they will be weighted:

(a) By 100 per cent, the total value of net assets of sanitation reserves and

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depreciations, except cash availability, transit funds, deposits in the Central Bank, banks and other local financial entities or banks

and investments in securities issued or guaranteed by the State or by the Central Bank; in accordance with the provisions of this Law.

(b) By 50 per cent, the value of guarantees, bonds, guarantees and other contingent operations, net of sanitation reserves;

(c) By 20 per cent, funds in transit, the value of investments in securities issued or guaranteed by the State or by the Central Bank, local banks and finances or foreign banks.

The weighting criteria established in the Banks Act may also be used for other operations not covered by this article.

In any case, the estate fund may not be less than 4% of its total obligations or liabilities to third parties, including contingents.

OPERATIONS

Art. 65.- With the Fund ' s resources, financial operations will be carried out only with

subjects and institutions referred to in article 54 of this Law, when such operations meet the purposes of the Fund.

In order to conduct operations with Fund resources, eligible institutions or individuals shall comply with the rules and procedures established by the Bank and the policies of qualification, monitoring and inspection and risk management to maintain the Fund ' s financial health, considering it

their case, criteria for environmental sustainability and social profitability.

LIMITS TO ELEGIBAL SUJECT

Art. 66- With resources from the Fund, credits may be awarded up to 90 per cent of the amount of the project, when the project is valued at up to one hundred thousand dollars from the United States of America and up to 90 per cent of the project.

for 80% of the amount of the project, when the project is higher than the amount mentioned above.

IN THE HOUSE OF COOPERATIONAL ASSOCIATIONS, WITH FUND RESOURCES,

OTORGAR CRÉDITOS HASTA por un 95% del MONTO del PROJECT, WHEN THEY ARE A VALUE OF ANY CIEN MIL DÓLARES OF THE UNITED STATES OF AMERICA; AND MAKE FOR 90% OF THE MONTH OF THE PROJECT, WHEN IT IS SUPERIOR TO THE CANTITY BEFORE MENCIONADA. (2)

The cumulative balance of funding given to the same subject eligible or economic group to which it belongs may not be greater than 5 per cent of the Fund ' s Patrimonial Fund.

In the case of projects of joint economy companies or any other with private public participation in which the public sector participates with more than 40% of the property, the limit for granting such credits will be 20% of the portfolio of credits awarded with resources of the

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Fund.

INTEREST TASES

Art. 67.- Interest rates established by the Bank for funding granted

with the Fund ' s resources, they should be higher than the cost of resources incurred by the Bank.

Interest rates established for eligible institutions should not be less than

actual collection costs for public resources so as not to de-incentive the operations of eligible institutions with the public.

OTHER OPERATIONS

Art. 68.- Without prejudice to the provisions of this Law, in the financings granted with resources

the Fund may establish special conditions for projects that have a significant impact on the economy, competitiveness, recovery and maintenance of the environment and low-income students.

Without prejudice to the provisions of article 57 (a) of this Law, the Fund ' s resources may carry out financial operations with mixed economic societies and others with private public participation, provided that their projects comply with the Fund ' s objectives.

The Fund ' s resources for non-reimbursable programmes referred to in article 61 (b) will be devoted to development, promotion, competitiveness, innovation, research

scientific and technological transfer for productive sectors; development of technical, legal and financial studies for the pre-investment or structuring of projects; and support for the training of low-income students.

All of the above in accordance with the policies of the Board of Directors.

FISCAL TREATY

Art. 69.- Notwithstanding the provisions of the Income Tax Act, the reservations to which

refer to Article 60 of this Law, they shall be deductible for the calculation of such tax.

COMMON PROVISIONS

Art. 70.- All provisions and privileges established for the Bank shall be applicable to operations carried out with the resources of the Fund regulated by this Law, which are applicable in the relevant manner

and that do not contravene the specific provisions contained in this Title, including the provisions relating to Superintendence Superintendency Superintendence, Credits, Guarantees, Payments included in Articles 37, 41, 42, 48 and 49 of this Law.

PART III OF THE FONDO SALVADOREÑO DE GARANTIAS

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CHAPTER I

CREATION

Art. 71.- Believe in the Development Bank, a Salvadoran Guarantee Fund, in this Law referred to as “the Guarantee Fund” or “the FSG”, which is a special estate for specific purposes and will be administered by the Bank.

For the administration of the resources of the Fund for Guarantees and the fulfilment of its purposes, the Board of Directors of the Bank may establish the committees, bodies and mechanisms of

administration that it deems necessary.

Contracts that are necessary with financial institutions, such as

banks, government and public credit institutions and other financial entities to carry out financial operations with eligible individuals.

FINALITIES

Art. 72.- The resources of the Guarantee Fund will be used to facilitate access to the financing of the productive sectors, the micro, small and medium-sized enterprises of the country, among others, through

of the granting of bonds, guarantees and of any other commitment to payment of credits or financial operations, to which they shall be referred to in this Title “Garantías”, all in accordance with what the Board of Directors of the Bank determines.

Guarantees supported by the funds of the Guarantee Fund shall be in United States dollars or in any other foreign currency and shall enjoy the benefit of the Ministry of the Law

of excussion of property referred to in article 2,107 of the Civil Code.

BENEFITS AND ELEGIBLE INSTITUTIONS

Art. 73.- Guarantees granted against the resources of the Guarantees Fund shall be paid to natural or legal persons who receive from an Eligible Institution a credit or hold a

financial operation with the guarantee referred to, being constituted in debtors of the same, whether the institution acts with its own resources or with resources provided to it by the Economic Development Fund.

Any credit granted directly with resources of the Economic Development Fund, in which the latter is the creditor of the eligible individuals, shall not enjoy the guarantees referred to in this Title.

In turn, for the purposes of this Title, Eligible Institutions shall be:

(a) Institutions that are eligible for the Bank;

(b) All those providing credits with the resources of the Economic Development Fund;

(c) Those legally constituted financial institutions, whether or not

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supervised by the Superintendency and approved by the Board of Directors of the Bank.

For the purposes of this Title, public institutions or credit officers will be eligible institutions.

CHAPTER II OF FACULTADES AND PROHIBITIONS

SPECIAL FACULITIES OF BANCO WITH GARANTIAS FUND RESOURCES

Art. 74.- For the purposes of the Guarantee Fund, the Bank shall have the following special powers:

(a) To grant guarantees in their different modalities, including challenges, in accordance with the purposes of the Guarantee Fund;

(b) To grant the guarantees previously supported with the resources of the Guarantees Fund, as authorized by the Board of Directors of the Bank and to agree with the Eligible Institution;

(c) To acquire or subrogate from the rights of credits and financial transactions guaranteed by the funds of the Guarantee Fund, in accordance with the policies approved by the Bank ' s Board of Directors;

(d) Conduct all kinds of acts and conclude such contracts, agreements, operations and in general, any other actions that require the exercise of their rights or the exercise of their rights

fulfilment of their obligations;

(e) Conduct contracts with other national or foreign entities

activities of equal or similar purpose to that of the Guarantee Fund, in order to grant guarantees jointly, providing for the benefit of division of the guarantee;

(f) Hiring agents, commissioners or, in general, any other kind of services necessary for the execution and promotion of your business, in accordance with the authorizations and conditions issued by the Board of Directors of the Bank;

(g) Investing in securities or securities issued by the Central Bank, Banks or other financial institutions in accordance with the investment policy approved by the

Board of Directors of the Bank;

(h) Keep deposits in any currency, in the Central Bank, banks, entities

authorized for that purpose or in foreign banks of the front line;

(i) Develop or manage training, advisory and technical assistance programmes aimed at increasing and improving access to the financing of beneficiaries;

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(j) Hiring challenges for guarantees granted under any form; and

(k) In general, perform any other operation necessary to achieve the purposes of the Guarantee Fund, in accordance with the approvals issued by the Board of Directors

Bank.

PROHIBITIONS

Art. 75.- The Bank may not grant guarantees supported by the Fund of Guarantees for:

(a) Credits for non-productive consumption;

(b) Refinancing of receivables that do not have the prior guarantee of the Guarantee Fund;

(c) Mortgage credits, except where such credit is intended for a productive activity or in the case of special programmes and as determined, in any case, by the Bank ' s Board of Directors;

(d) Respond to obligations acquired by the State, the Autonomous Institutions or the Municipalities; and,

(e) Ensure credit to eligible individuals, where the Economic Development Fund is the creditor of such individuals.

CHAPTER III OF THE RESOURCES OF THE FUND OF GARANTIAS

RESOURCES OF THE FUND OF GARANTIAS

Art. 76.- The resources of the Guarantee Fund shall be as follows:

(a) A contribution of the Bank of twenty million dollars of the United States of America, as provided by its Board of Directors, which may be made in cash, with securities

or other assets;

(b) Cash contributions made by the State of El Salvador through the Ministry of

Finance, and in general donations, contributions or allocations from the State and other public institutions;

(c) Grants, contributions and other resources from natural or legal persons, whether national or foreign;

(d) Capital reserves established in accordance with this Title;

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(e) Asset revaluation surplus;

(f) Overpayment of prior periods; and

(g) Uses of the exercise.

Property rights of the Development Bank on the resources of the Guarantee Fund

They will understand the value of the contribution regulated in subparagraph (a) of this article, plus the components of the heritage that it proportionally generates. Equal treatment will be provided by the other contributors to the Guarantee Fund in relation to their contributions.

PATRIMONIAL FUND

Art. 77.- For the purposes of this Title, the sum of the accounts contained in the preceding article shall be understood by the Neto Patrimonial Fund or Heritage, and the accumulated losses must be deducted.

They may not be computed as Patrimonial Fund, reserves or provisions of liabilities. Nor will the sanitation reserves be computed, which should be considered by the Superintendency.

IMPLEMENTATION OF UTILITIES

Art. 78.- At the end of each exercise, the net profits of the period after payment of taxes and the constitution of the capital reserves specified in this Law shall be applied and delivered as follows:

(a) Bank surrenders for 10 per cent of net profits; and

(b) The remnant will be recorded as a surplus of previous exercises.

CHAPTER IV OF THE OPERATIONS OF THE FUND

_

Art. 79.- With the resources of the Guarantee Fund, credit operations can be secured

or financial, provided that as a whole the guaranteed net value does not exceed eight times its Patrimonial Fund.

PONDERATION OF ACTIVES

Art. 80.- For the calculation of the weighted assets of the Eligible Institutions and the Economic Development Fund, the secured credits with the resources of the Guarantee Fund shall have a

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weighting of 0% in the proportion guaranteed.

IMITS IN THE GARANTIS OTORGAIN

Art. 81.- No guarantees may be granted to the same beneficiary, for more than 3 per cent of the Fund

Patrimonial of the Guarantee Fund.

In any event, the Guarantee Fund will provide coverage by applying the shared risk principle

with the Eligible Creditor Institution.

CHAPTER V

PROCEDURAL SPECIAL REGULATIONS

REQUERcimiento de PAGO

Art. 82.- In the event that the Beneficiary incurs in arrears, the Eligible Institution may make the payment request to the Bank in accordance with the standard for that effect by the Board of Directors of the Bank

Bank.

OF THE SUBROGATION

Art. 83.- In the event that the Bank with the resources of the Guarantees Fund makes the payment of any of the guarantees referred to in this Title in favor of the Eligible Institution, it shall be subrogated by the Ministry of Law in all the rights, actions, privileges and guarantees that it has,

either against the main debtor or against the third parties that have been subsidized or in solidarity with the debt, and for the amount of security coverage that has been granted.

The Eligible Institution that has only been paid in part by the Bank with the resources of the Guarantee Fund, may exercise its rights, relatively to what is left to it, having, on an equal basis that the Bank mentioned, being able to intervene judicially both institutions in

similar procedural conditions.

Subrogation in payment referred to in this article shall be subject to the provisions of the Articles

1478, 1479 and 1480, paragraph 1 of the Civil Code.

Without prejudice to the provisions of this article, the Bank, with the resources of the Guarantee Fund

may acquire, by cession, the rights disputed by the Eligible Institution against the beneficiaries or by a subsidiary or joint obligation.

JUDICIAL CLAIMS

Art. 84.- The judicial claim for the arrears of the Beneficiaries shall be substantiated as provided by

the Third Book, First Title of the Civil and Commercial Processing Code.

In the event that the Eligible Institution has initiated the judicial complaint against the Mora Beneficiary in which the property of the principal debtor or of the subsidiary obligation has been ordered

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or solidarity, the Bank may intervene at any time of the process by checking through the instrument itself of the assignment or subrogation to have cancelled the amount of coverage of the guarantee or

by record issued by the Eligible Institution that validates the payment made, all of which shall be admissible by the judicial authority without any additional requirement, and must have it on the part, for all purposes, without delaying the course of the proceedings. For such purposes, the parties should be heard

persons for three days, excluding the respective Eligible Institution, to be pronounced on the matter, and then the judge decides.

Except for the above, the case in which the Bank intervenes before the seizure of property in the debtor or subsidiary or solidarity obligation, in which case the hearing corresponding to the respondent shall be omitted. The same situation shall apply in the case where the defendant has entered

to the claims contained in the initial claim, or if the process is properly sentenced or in the forcible execution phase.

Both assignment and subrogation, if any, shall be formalized by public writing or in the manner provided for in article 54 of the Notariat Act, which shall be specified as appropriate and in annex that shall form an integral part of the instrument, name and surname, social reason or

denomination of the debtor, original amount of credit, judicial process initiated, competent court and current state of the debtor. In the case of two or more assignments or subrogations contained in a single instrument, the assignment or subrogation may be proved by the presentation to the competent judge of the instrument carried out in accordance with article 54 of the Notariat Act or, where appropriate, of the respective testimony

which will contain only the head, the description of the assigned receivable, the foot of the instrument and any other relevant clause.

The document referred to in the preceding paragraph shall be submitted to the competent judicial authority in order to free the relevant office of the Registrar to proceed with marginal annotation in the interest of the judicial process in question.

CESSIONS

Art. 85.- In order to recover the resources of the Guarantee Fund, the Bank may grant any deposits to other financial or non-financial entities and even with natural and legal persons for a better collection of the credits it has in its favour, in order to seek the recovery of payments

This is done in accordance with the provisions of this Law.

In any case, when the Bank celebrates any kind of cessions to any title, it will not be

necessary material delivery of the titles. The notification of the assignment may be made by publication in extract of the transfer for a single time in a national circulation journal.

CHAPTER VI OTHER APPLICABLE PROVISIONS

COMMON PROVISIONS

Art. 86.- All provisions and privileges established for the Bank shall be applicable to operations carried out with the resources of the Guarantees Fund regulated by this Law, as appropriate.

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apply and do not contravene the specific provisions contained in this Title, including the provisions concerning Extraordinary Assets, Period for the Liquidation of Extraordinary Assets,

External Audit and Prosecutor, Superintendency Superintendence, Reserves, Coverage of Loss and Operations, Fiscal Treatment contained in the Arts. 30, 32, 36, 37, 60, 62, 63, 65, 69 in this Law.

PART IV GENERAL PROVISIONS, TRANSITORIES, DEROGATORY AND VIGENCE

CHAPTER I

General provisions

PERSONAL

Art. 87.- The Bank shall have its own staff, which shall have the characteristics and

competencies suitable for the performance of their positions.

The Bank will promote the training and training of its staff in such specialities as may be necessary, for which it may grant scholarships to its staff and employees. The Internal Regulations

shall regulate the matter of this matter.

Bank employees and officials will be incorporated into the Salvadoran Insurance Institute

Social and Fund for the Protection of Officials and Employees of the Central Bank. The rights and obligations that the staff of the Multisectoral Investment Bank have acquired with the Central Bank ' s Staff and Employees Protection Fund will continue to apply, mainly with regard to the

seniority of its membership as members of the Fund.

CENTRAL BANCO SUPPORT

Art. 88.- The Central Bank may provide the necessary services for the proper functioning of the Bank.

CONCERNING ACTIVES TRANSFERTED BY CENTRAL BANCO

Art. 89.- The assets provided by the Central Bank as the Bank ' s capital, as well as those that were transferred from its portfolio as a loan, sale or administration, consist of public documents issued for that purpose and any other transfer to be made in the future,

to any title, it must be documented through public writing.

FISCAL TREATY

Art. 90.- The Bank will be subject to fiscal treatment that the different tax laws establish for the Banks.

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APORTS OF CENTRAL BANCO

Art. 91.- All property rights that the Central Reserve Bank of El Salvador had in relation to the assets of the Multisectoral Investment Bank at the entry into force of this Law,

the Central Bank shall be in the possession of the Banco de Desarrollo de El Salvador, as it happens in its rights and obligations to the Multisectoral Investment Bank by ministry of this Law. The property rights of the Central Bank include contributions to capital and others

the assets of the Multisectoral Investment Bank generated by these contributions to the entry into force of this Law.

To the property rights that the Central Bank had with respect to the Multisectoral Investment Bank at the entry into force of this Law, will be added the contributions that it decides to make to the Development Bank, as well as the components of the assets that generate the initial capital and those that generate

the new contributions to the Bank.

SUPLETORY LEGISLATION

Art. 92.- In all matters not provided for in this Law, the Trade Code and other Trade and Financial Laws shall be applied; and, failing that, the Common Law Regulations and the procedural rules shall be in accordance with the Civil and Commercial Procedure Code.

In terms of financial operations to be conducted directly by the Bank with eligible individuals, with their own resources or with the resources of the Economic Development Fund or the Fund

Saviour of Guarantees, and whose provisions are not covered by this Law, the Bank shall observe the relevant provisions of the Banks Act in respect of credits and contracts with related persons, prohibitions in the assumption of risks and in general any prudential norm of

regulation and supervision in the management of risks that do not contradict the provisions of this Law.

PREFERENT IMPLEMENTATION

Art. 93.- The provisions of this Law, by their special character, shall prevail over any other that contravene it.

REFERENCE TO OTHER LEYS

Art. 94- In all laws, decrees, regulations, instructions, technical rules, contracts and other provisions in which reference is made to the Law on the Creation of the Multisectoral Investment Bank, from the validity of this Law, it shall be understood that they refer to the Law on the System

Finance for Development.

Also, when in other laws, decrees, regulations, instructions, technical rules, contracts

and other provisions refer to the Multisectoral Investment Bank, it will be understood that they refer to the Development Bank of El Salvador, regulated by this Law.

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SUCESION BY MINISTERY OF LEY

Art. 95. The Banco de Desarrollo de El Salvador, established in this Law, happens by Ministry of Law in all its goods, rights and obligations, including labour, to the Multisectoral Investment Bank established by Legislative Decree No. 856, dated 21 April 1994, published in

Official Journal No. 98, Volume No. 323, of 27 May of the same year.

In turn, the institutions qualified as Eligible by the Multisectoral Investment Bank,

They will have the same quality for the Development Bank of El Salvador.

The Banco de Desarrollo de El Salvador, from the validity of this Law, will continue

applying the policies, rules, manuals and instructives of the Multisectoral Investment Bank for a period of 90 days, as long as the new provisions are not issued by the corresponding administration agencies, in accordance with the provisions of this Law.

TECHNICAL RULES

Art. 96.- The competent regulatory body shall issue the technical rules required to facilitate the implementation of this Law.

CHAPTER II

TRANSITOR

TRATAMIENT FISCAL TRANSITORY

Art. 97.- The Development Bank will be exempt for 10 years from fiscal year

in which this Law enters into force, the payment of the Income Tax on the profits generated by the operations carried out with resources of the Economic Development Fund and those carried out from the resources of the Salvadoran Guarantee Fund.

In cases where the present Law determines that the application and delivery of profits is made after payment of taxes, it shall not apply as long as the time limit established is in force

the preceding paragraph, deducting only the constitution of capital reserves.

NAMES OF GOVERNMENTS AND DIRECTORS

Art. 98.- The members of the Assembly of Governors referred to in article 12 (f), (g), (h) and (i) of this Law shall be appointed within a maximum of sixty days.

from the validity of this Law. The same applies to the members of the Board of Directors of the Bank referred to in subparagraphs (f), (g), (h) and (i) of Article 17 of this Law.

Art. 99 Members of the Assembly of Governors referred to in subparagraphs (f), (g), (h) and (i) of article 12, and members of the Board appointed upon entry into force of this Law, shall remain in office until thirty-one May of two thousand fourteen.

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SPECIAL PERIODS AND FACULATIONS OF DIRECTORS

Art. 100. In order to ensure the continuity of banking operations, the President of the Multisectoral Investment Bank, or the President of the Multisectoral Investment Bank, and the members of its Board of Directors, are empowered by this Law to continue to carry out their positions in the Bank

for Development, up to a maximum period of 60 days from the validity of this Law or until the Board of Directors is appointed by the Assembly of Governors of the Development Bank, which is the first.

The powers of the President, or of whom he or she may do, during this transition period are:

(a) Exercising the legal representation of the Bank, being empowered to hold in its name and representation all acts and contracts in which the Bank has an interest, as well as to contract all kinds of obligations; may appoint A-Power to delegate

previous powers;

(b) Ensure compliance with the targets set in the financial programme

implementation;

(c) Ensure compliance with the objectives and powers of the Bank and subject to the rules to which its operations are to be adjusted;

(d) Authorize the financial and administrative operations necessary to give continuity to the regular management of the Bank and compliance with its legal obligations; and,

(e) To monitor the Bank ' s overall progress, ensuring its harmonious and efficient functioning.

The powers of the Board of Directors during this transition period are those necessary for the Bank to comply with its legal obligations and ensure the continuity of its banking and ordinary operations and which are regulated for this administration body in this Law.

AJUST OF INICAL CAPITAL

Art. 101.- The amount of the Initial Capital of the Development Bank referred to in Article 7 of this Law corresponds to the Heritage of the Multisectoral Investment Bank reflected in the financial statements audited as at 30 and 1 December of the year two thousand ten. This amount shall be adjusted to the

value of the Heritage that reflects the Multisectoral Investment Bank in the audited financial statements for one day before the entry into force of this Law.

CHAPTER III DEROGATORY AND VIGENCE

DEROGATORY

Art. 102.- Refer to Legislative Decree No. 856, dated 21 April 1994, published in

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Official Gazette No. 98, Volume No. 323, of 27 May of the same year, which includes the Multisectoral Investment Bank Creation Act, as well as its subsequent reforms.

VIGENCE

Art. 103.- This Decree shall enter into force ninety days after its publication in the Official Gazette.

DADO en el SALON AZUL del PALACIO LEGISLATIVE: San Salvador, at the twenty-two days of September of two thousand eleven.

OTHON SIGFRIDO MORALES, PRESIDENT.

CIRO CRUZ ZEPEDA PEÑA, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICEPRESIDENT. SECOND VICEPRESIDENT.

JOSÉ FRANCISCO MERINO LÓPEZ, ALBERTO ARMANDO ROMERO RODRÍGUEZ, TERCER VICEPRESIDENT. VICEPRESIDENT FOURTH.

FRANCISCO ROBERTO LORENZANA DURAN, QUINTO VICEPRESIDENT.

LORENA GUADALUPE PEÑA MENDOZA, CESAR HUMBERTO GARCÍA AGUILERA, FIRST SECRETARIAT. SECOND SECRETARY.

ELIZARD GONZÁLEZ LOVO, ROBERTO JOSÉ d'AUBUISSON MUNGUÍA,

THIRD SECRETARY. SECRETARY FOURTH. SECRETARY FIFTH. IRMA LOURDES PALACIOS VÁSQUEZ,

SEXTA SECRETARIAT.

MARIO ALBERTO TENORIO GUERRERO,

SECRETARY-GENERAL.

CASA PRESIDENCIAL: San Salvador, at the 11th of October of the year two thousand

Eleven.

PUBLIQUESE,

Carlos Mauricio Funes Cartagena, President of the Republic.

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Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. No. 197 Volume No. 393

Date: October 21, 2011

REFORMS:

(1) D.L. No. 83, 17 August 2012,

D.O. No. 154, T. 396, 22 AUGUST 2012.

(2) D.L. No. 18, 11 June 2015,

D.O. No. 117, T. 407, 30 JUNE 2015.

ROM/adar 14/11/11

SV 10/09/12

SV 20/07/15

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