Key Benefits:
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DECREE No. 849.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That in order to strengthen the development and financial integration of the country, it is necessary to improve the access and availability of the financial services in all the activities of the communities urban and rural in the country, specifically those aimed at attracting small savings and capital and financing micro, small and medium-sized enterprises;
II.-That it is necessary to have a legal framework based on principles International regulation, which at the same time allows to strengthen the Salvadoran institutional experiences in the field of financial intermediation, in order to have financially sound, competitive and functional institutions for satisfy the demands of financial services of the entire population;
III. In order to make this a reality, it is necessary to have uniform legislation that is applied to non-bank financial intermediaries, appropriate to their nature to encourage the mobilization of savings in the rural and urban sectors, the same time as it strengthens the supervisory rules applicable to such non-bank financial intermediaries;
IV.-Article 114 of the Constitution provides that the State shall protect and promote cooperative partnerships by facilitating your organization, expansion and financing, making it imperative strengthen cooperative savings and credit associations, which are dedicated to financial intermediation through an appropriate regulatory framework; and
V.-That it is necessary to strengthen the private character and the cooperative nature of the rural credit banks, workers ' banks and the federation to which these entities belong;
FOR TANTO,
in use of their constitutional powers and on the initiative of the President of the Republic, through the Minister Juan Duch Martinez, Ruben Ignacio Zamora Rivas, Gerson Martinez, Norma Fidelia Guevara de Ramírios, Hector David Cordova Arteaga, Norman Noel Quijano, Guillermo Wellman Carpio, Jose Antonio Almendariz, Kirio Waldo Salgado Mina, Juan Ramon Medrano, Donald Ricardo Calderon Lam, Roberto Serrano Alfaro, Julio Alfredo Samayoa, Isidro Antonio Caballero, Hugo Molina and Elizardo González Lovo,
DECRETA: the following,
LAW OF COOPERATIVE BANKS AND SAVINGS AND CREDIT SOCIETIES (6)
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BOOK FIRST PROVISIONS
SINGLE TITLE
Object and scope of the law
Art. 1. THE PURPOSE OF THIS LAW IS TO REGULATE THE ORGANIZATION, OPERATION AND ACTIVITIES OF FINANCIAL INTERMEDIATION CARRIED OUT BY THE COOPERATIVE BANKS AND THE SAVINGS AND CREDIT COMPANIES INDICATED IN THIS LAW FOR THE PURPOSE. ENSURE THAT THEY MEET THEIR ECONOMIC AND SOCIAL OBJECTIVES AND GUARANTEE THEIR DEPOSITORS AND PARTNERS THE MOST EFFICIENT AND RELIABLE ADMINISTRATION OF THEIR RESOURCES. (6)
Subjects
Art. 2.-THE FINANCIAL ENTITIES REGULATED BY THIS LAW ARE THE FOLLOWING:
A) THE COOPERATIVE BANKS, WHICH:
.1 THE SAVINGS AND CREDIT COOPERATIVES THAT IN ADDITION TO COLLECTING MONEY FROM THEIR PARTNERS MAKE IT OUT OF THE PUBLIC.
A.2 SAVINGS AND CREDIT COOPERATIVES WHEN THE SUM OF THEIR DEPOSITS AND CONTRIBUTIONS EXCEED SIX HUNDRED MILLION COLONES.
(b) SAVINGS AND CREDIT COMPANIES.
(c) THE FEDERATIONS OF COOPERATIVE BANKS QUALIFIED BY THE SUPERINTENDENCE TO CARRY OUT WITH THEIR AFFILIATES THE INTERMEDIATION OPERATIONS THAT THIS LAW INDICATES. (6)
Law Enforcement
Art. 3. The entities listed in the preceding article shall be governed by their respective legal orders as regards their constitution, organization and administration, provided that they do not contradict the provisions of this Law; The Law of Banks will apply. They will be subject to supervision and oversight of the Superintendence of the Financial System, who will be able to issue the necessary regulations, in accordance with what is established in its Organic Law and in this Law.
This Act shall be required to comply with the provisions laid down in the Anti-Money and Asset Laundering Act.
Denominations
Art. 4.-In the course of this Law the following denominations shall be used:
a) "Central Bank", by Central Bank of El Salvador;
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b) "Superintendence", by Superintendence of the Financial System;
c) "Superintendent", by Superintendent of the Financial System;
d) "Stabilization Fund", by Cooperative Stabilization Fund;
e) " BANCO COOPERATIVE ", BY ASSOCIATIONS AND COOPERATIVE SOCIETIES OF SAVINGS AND CREDIT, INCLUDING RURAL CREDIT BOXES AND WORKERS ' BANKS; (6)
F) "ASSOCIATIONS OF COOPERATIVE BANKS", BY ASSOCIATIONS OF COOPERATIVE ASSOCIATIONS OF SAVINGS AND CREDIT, COOPERATIVE SOCIETIES OF SAVINGS AND CREDIT AND SAVINGS AND CREDIT COMPANIES, OR BY ONLY ONE OF THEM, REGULATED BY THIS LAW; (6)
g) "Partners", by members of savings and credit cooperatives, savings and credit societies, and by associates of a cooperative association of savings and credit. Applicants may not be considered as partners;
(h) SHARES IN A COOPERATIVE SHALL BE UNDERSTOOD AS SUCH THE ACTIONS OF A COOPERATIVE SOCIETY AND OF SAVINGS AND CREDIT SOCIETIES; AS WELL AS THE CONTRIBUTIONS OF A COOPERATIVE COOPERATIVE ASSOCIATION OF SAVINGS AND CREDIT; (6)
I) MEMBERS OF THE FINANCIAL SYSTEM, BEING UNDERSTOOD AS SUCH, IN ADDITION TO THE INSTITUTIONS MENTIONED IN ARTICLE 2 OF THE ORGANIC LAW OF THE SUPERINTENDENCE, THOSE LISTED IN ARTICLE 2 OF LA PRESENTE LEY; Y (6)
j) AFFILIATE, BEING UNDERSTOOD AS SUCH EVERY COOPERATIVE BANK OR SAVINGS AND CREDIT SOCIETY ATTACHED TO A FEDERATION, PROVIDED THAT SUCH ENTITY IS REGULATED BY THIS LAW. (6)
SAVINGS AND CREDIT COOPERATIVES
TITLE I ORGANIZATION, ADMINISTRATION AND OPERATION
CHAPTER I AUTHORIZATION OF SAVINGS AND CREDIT COOPERATIVES
Art. 5.-The cooperative wishing to collect deposits from the public will submit its application for authorization to the Superintendence accompanied by the following documents:
a) Nomina of the partners, with specification of their generals, nationality and any other
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information that they create relevant to contribute;
b) Nomina and general managers;
c) Writing of the cooperative;
d) The organization and management scheme of the cooperative, the financial statements audited and financial projections of your operations; and
e) Details of the number of shares subscribed and paid by each of its partners.
The Superintendence will issue the instructional for the application of this article.
Art. 6.-The Superintendence, during the following sixty days of receipt of all the information required, shall grant the authorization to carry out the activities governed by this Law, when in its judgment, the financial bases projected, as well as the good repute and personal responsibility of the partners, directors and administrators, offer protection to the interests of the public. If the decision is favorable to the petitioners, the authorization shall be issued by resolution of the Superintendence.
Art. 7.-For the authorization of the Superintendence the number of members of the cooperative must not be less than one hundred.
Rating and Enrollment of the Writing of the Constitution
Art. 8.-The testimony of the writing of the constitution must be presented to the Superintendence so that it qualifies if the terms stipulated in it, are in conformity with the previously authorized projects and if the social capital has been effectively integrated according to the authorization.
The Superintendence will not be able to grant the authorization if the interested party will not subsme the observations that will be indexed. The amendment of the constitutive writing of a cooperative may not be submitted for registration in the respective Register, without it bearing a reason subscribed by the Superintendence in which the compliance with the provisions of the paragraph is recorded previous.
Starting Operations with the Public
Art. 9.-The requirements laid down in this Law and its regulations and instructions, verified its internal controls and procedures and duly authorized the cooperative, the Superintendence will certify in a period not greater than fifteen days (a) from which the requirements have been met, which may initiate its operations with the public. Such certification shall be made known by means of publications that will be inserted at the expense of the respective cooperative for one time, in the Official Journal and in a national circulation journal.
Special Authorizations
Art. 10.-The cooperatives regulated by this Law, will require prior authorization from the Superintendence to merge with other cooperatives and transfer globally, either the totality or most of their assets. They will also require prior authorisation from the Superintendence for closure
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of its operations.
The merger referred to in the foregoing paragraph shall be made in accordance with the rules laid down in the Code of Commerce or the General Law of Cooperative Associations, as the case may be, except that the notice of the agreement of fusion and the last monthly balance of the cooperatives must be published by a only in two national circulation newspapers, and that the merger will be executed after 30 days of the publication, provided that there is no opposition.
Within that period, any interested party may object to the merger; in this case, such a process may be suspended, as long as its interest is not sufficiently guaranteed, in accordance with the criterion of the Judge who is aware of the application; but the guarantee shall not be required if the new cooperative or the new cooperative is offered by the applicant.
Yes the judgment declares that the opposition is unfounded, the merger can be carried out as soon as that cause execution.
The merge agreement may not be filed for registration in the respective Registry without it bearing a reason subscribed by the Superintendent in which the authorization is established.
Agencies in the Country
Art. 11.-Cooperatives must inform the Superintendent about each project of opening agencies in the country. The Superintendent shall have 30 days after the date of receipt of the information to object to the project only if it considers that it would have a negative impact on the financial and administrative capacity of the cooperative.
From the resolution that the Superintendent will make, an appeal will be admitted to the Superintendence Board of Directors according to its Organic Law.
For the purposes of this Law, it will be understood by agency, the office physically separated from the parent or central office which forms an integral part of the same legal person, which may perform the same operations, which has no assigned capital and whose accounting is not separated from the parent or central office.
In the case of the closure of agencies, the cooperatives must notify the Superintendence and the public, at least thirty days in advance.
In situations of force majeure, fortuitous cases or other exceptional circumstances determining the Superintendence, the opening or closing of agencies may be carried out within a period of less than the above, while safeguarding the interests of depositors at all times.
Joint Investments
Art. 12.- THE COOPERATIVE BANKS MAY MAKE INVESTMENTS IN COOPERATIVE ACTIONS, IN INTERNATIONAL COOPERATIVE INTEGRATION ORGANIZATIONS, SALVADORAN SOCIETIES AND SOCIETIES OF OTHER COUNTRIES DEDICATED TO CARRYING OUT ACTIVITIES THAT COMPLEMENT EACH OTHER. ITS FINANCIAL SERVICES, SUBJECT TO PRIOR AUTHORISATION FROM THE SUPERINTENDENCE.
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(6)
In no case will total equity investments exceed fifteen percent of its equity fund.
The sum of the value of the credits, endorsements, sureties and other guarantees that in any form, direct or indirectly, the institution provides the companies in which it has participation, may not exceed ten percent of the value of its equity fund.
For the determination of the percentage set out in the second indent of this Article, investments in shares that are not considered to be cooperatives are held in the respective federations, as well as those held in international cooperative integration organizations, prior to the authorization of the Superintendence.
Art. 13.-The cooperatives governed by this Law which hold shares of companies of those mentioned in the previous article, for amounts exceeding fifty percent of the total capital of these, shall consolidate with them their financial statements.
In no case will cooperatives be able to operate as controllers of a financial conglomerate.
Operation and Attention to the Public
Art. 14. Cooperatives are institutions of compulsory operation. No cooperative may suspend or terminate its operations without prior authorization from the Superintendency.
The Superintendence will publish, at least once a year, in two national circulation newspapers, the minimum schedule of attention to the public and the days in which cooperatives can close their offices and agencies.
Directors ' Administration, Requirements and Inabilities
Art. 15. The cooperatives shall be managed by three or more directors, who shall be members of recognized good repute, having extensive knowledge and experience in financial and administrative matters. The President and his/her alternate member shall also have at least two years of experience in senior management or administration positions in institutions of the financial system, in others related to savings and credit cooperatives or with credit programs.
They are unable to perform such charges:
a) Those who have not been thirty years of age;
b) Directors, officials or employees of any other institution of the financial system, institutions governed by this Law or persons engaged in activities similar to that of non-bank financial intermediaries, including the placement of money between individuals, except the directors of a federation governed by this Law, in which the cooperative is affiliated;
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(c) The one who has been the Director of a cooperative has obtained in his favour the approval of a credit without the unanimous vote of the Director or that said credit has been approved without having recorded his withdrawal from the corresponding session;
d) Those who are in a state of bankruptcy, suspension of payments or contest of creditors and in no case who have been judicially qualified as liable for a wrongful or wrongful bankruptcy;
e) The debtors of the Salvadoran financial system for credits to which a reserve of Fifty percent or more of the balance.
This inability will also apply to those directors who hold twenty-five percent or more of the shares of companies that are in the aforementioned situation;
f) The person who has been a director, official or administrator of a system institution The Court of Justice held that the Court of Justice held that the Court of Justice held that the Court of Justice held that the Court of Justice held that the Court of Justice held that the Court of Justice assets of 20% or more of the minimum required by the Law, which has received contributions from the State, the Deposit Insurance Institute or a Stabilization Fund for its sanitation or has been brought in by the agency competent fiscator. In the case of legal representatives, general manager, executive director, and directors with executive positions of financial institutions, they shall be presumed to have held responsibility for any of the above mentioned circumstances. The presumption before those persons who have ceased their posts two years before such a situation had been presented shall not apply; nor shall those who have participated in the reorganisation of financial institutions, in accordance with the requirements of the The Law of Sanitation and Strengthening of Commercial Banks and Associations of Savings and Loan, without prejudice to the liability in which they incur after such sanitation;
g) Those convicted of having committed or participated in the commission of any criminal offence;
h) Persons who have been tested judicially participate in drug-related activities, related crimes, and those established in the Anti-Money and Money Laundering Act;
i) Those who have been punished administratively or judicially for their participation in serious infringement of laws and rules of a financial nature, in particular the collection of public funds without authorisation, the granting or receipt of related loans in excess of the permitted limit and the offences of character financial; and
j) The President and Vice President of the Republic, the Ministers and Deputy Minister of State, the owners of the Chamber of Deputies, the Magistrates of the Supreme Court of Justice and the owners of the Chamber of Deputies and the Presidents of the Autonomous Institutions.
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The causals contained in the literals (d), (f) and (h), as well as that of the first paragraph of the literal (e), which are in the respective spouse of a director, shall entail for him his inability, provided that he is under the community regime. deferred or profit participation.
GENERAL MANAGERS, OTHERS MANAGERS AND OFFICIALS WHO HAVE THE AUTHORITY TO DECIDE ON THE GRANTING OF LOANS, MUST MEET THE SAME REQUIREMENTS AND NOT HAVE THE SKILLS THAT THE DIRECTORS POINT OUT IN THIS ARTICLE, EXCEPT FOR THE PROVISIONS OF LITERAL (A) OF THIS ARTICLE, IN THIS CASE, SHOULD CHECK AT LEAST THREE YEARS OF EXPERIENCE IN THE FIELD. (6)
Directors and managers no later than thirty days after they have taken office and in the month of January each year, shall declare under oath to the Superintendence that they are not indefable to carry out the duties and inform the institution at the latest by the following working day of its inability, if it occurs later.
When any of the previously mentioned inskill causes exist or exceed, the director's or the director's management shall lapse. of the official concerned and will be replaced in accordance with the Law.
Corresponding to the Superintendence to declare the inability. However, acts and contracts authorized by an indeft official, before their inability to be declared, shall not be invalidated by this circumstance in respect of the institution or with respect to third parties.
Employees shall not be eligible for the to management positions of the respective institution in which they work.
CHAPTER II MINIMUM SOCIAL CAPITAL AND CAPITAL RESERVES
Minimum Social Capital
Art. 16.-The amount of the social capital paid by a cooperative regulated by this Law may not be less than five million colones.
The Board of Directors of the Superintendency, every two years, based on the Consumer Price Index, Upon the Central Bank's opinion, it shall update the amount of the paid share capital referred to in this Article, in such a way as to maintain its real value. In this case, the cooperatives will have a period of one hundred and eighty days to adjust their social capital.
Art. 17.-To complete the amount of capital indicated in the previous article, it must be paid in full in cash or in certified cheque and credited by the deposit of the corresponding sum in the Central Bank.
WHEN TREAT A COOPERATIVE BANK IN OPERATION AND BE GRANTED AUTHORIZATION TO CARRY OUT THE ACTIVITIES REGULATED BY THIS LAW, THE DEPOSIT REFERRED TO IN THE PREVIOUS PARAGRAPH, SHALL BE THE AMOUNT NECESSARY TO REACH THE SOCIAL CAPITAL MINIMUM REQUIRED. SUCH AMOUNT SHALL BE DEFINED BY THE SUPERINTENDENCE BASED ON AN ASSESSMENT OF THE BANK ' S PORTFOLIO AND OTHER ASSETS
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COOPERATIVE. (6)
Art. 18.-The social capital in the cooperatives is constituted by shares, subscribed and paid by its members, which may vary according to the respective law. These actions represent the participation of the partners in the cooperative and give them the right to voice and vote, in accordance with the relevant laws.
The actions are nominative, indivisible and transferable by endorsement, among their In accordance with the provisions of the Trade Code, the cooperative associations shall be negotiable and transferable between their members, subject to the authorization of the Board of Directors. The statutes will establish their respective nominal amount.
Legal Reserve Constitution
Art. 19.-Cooperatives must constitute a legal reserve, for which they shall at least provide 20% of their annual profits to at least fifty percent of their paid social capital.
The legal reserve will have the following purposes:
a) Cover losses that may occur in an economic exercise; and
b) Reply of obligations to third parties.
At no time will cooperatives be able to make the capitalization of the legal reservation.
Revaluation Surplus
Art. 20. In no case may the non-perceived profits and the surplus by revaluations be capitalised or distributed as dividends, except where the respective goods which were the subject of revaluations were made through the sale to the
when the sale of such goods is carried out with the financing of the cooperative itself, it will be recognized as a surplus realized the differential. positive between the sale price and the cost, minus the balance of capital and interest of the credit awarded.
Application of Results
Art. 21.-At the end of each year the cooperatives will retain their profits, after the legal reserve, an amount equivalent to the amount of the outstanding net recovery reserves. These retained earnings may not be distributed as dividends as such products have not been actually received.
The utilities thus available shall be applied and distributed as determined by the laws, the statutes and the set in the previous paragraph. In no case may the distribution or payment of dividends or surpluses be agreed, where this implies non-compliance with the provisions of Articles 25, 48
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and 49 of this Law; nor will it be possible to decretse or pay dividends or surpluses when a cooperative is in the process of regularisation referred to in this Law.
In case of losses in an exercise, in the general assembly in which it is The agreement to cover these results must be taken according to the following order:
a) With the annual earnings of other exercises;
b) With applications equivalent to the legal reserve and other capital reserves, if such profits are not reached; and
c) the cooperative, if the reserves are still insufficient to absorb the balance of the losses. This decrease in share capital must be effected by reducing the nominal value of the shares and the provisions of Article 129 of the Trade Code shall not apply. The depreciation value of each share will be the result of the division of the social having according to the last balance approved by the general assembly of members, among the number of shares. In the event that the capital is insufficient to absorb the losses, the decrease in the share capital must be effected by the cancellation of all the shares.
Without prejudice to the provisions of Article 69 of this Law, if as a result of the application of the provisions of subparagraph (c) above, the social capital of the cooperative in question is reduced to a lower level than that laid down in Article 16 of this Law, the relevant cooperative have a maximum period of 90 days to reintegrate it, which may be extended for up to a period of time
Capital Redemption
Art. 22. The paid social capital of the cooperative registered at the end of the respective economic year shall not be redeemed for any excess of five percent. In any event, returns not exceeding the above percentage may only be made after the approval of the financial statements by the general assembly and provided that the provisions of the articles are not complied with. 16, 25, 48 and 49 of this Act.
Art. 23.-The member shall only be entitled to be reimbursed the value of his contributions, deducted the losses that he or she has to bear from the respective financial year, in case of exercising the right to withdraw. Debt compensation will only be applicable in this case, in accordance with civil law and complying with the provisions of the previous article.
Limitations to Property
Art. 24.-The participation of each partner in the social capital of a cooperative shall not exceed ten percent of the total of the social capital paid.
CHAPTER III SOLVENCY AND LIQUIDITY REQUIREMENTS (6)
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Relationship between wealth fund and weighted assets.
Art. 25.-IN ORDER TO MAINTAIN ITS SOLVENCY CONSTANT, COOPERATIVE BANKS MUST PRESENT AT ALL TIMES A RATIO OF AT LEAST TWELVE PER CENT BETWEEN THEIR EQUITY FUND AND THE SUM OF THEIR WEIGHTED ASSETS, NET OF DEPRECIATION, RESERVES AND SANITATION PROVISIONS. FOR THESE PURPOSES IT WILL BE WEIGHTED:
(a) PERCENT THE TOTAL VALUE OF THE ASSETS EXCEPT THE FOLLOWING: DEPOSITS OF MONEY IN THE CENTRAL BANK, IN LOCAL BANKS, FINANCIAL INSTITUTIONS REGULATED BY THIS LAW, BANKS FOREIGN INVESTMENT GRADE, ACCORDING TO INTERNATIONAL CLASSIFICATIONS ISSUED BY INTERNATIONALLY RECOGNIZED RISK CLASSIFIERS; CREDIT TO LOCAL BANKS; CREDIT TO COOPERATIVE BANKS AND SAVINGS AND CREDIT COMPANIES, GUARANTEED IN FULL BY DEPOSITS OF MONEY OR GUARANTEES FROM LOCAL BANKS, BANKS COOPERATIVE, SAVINGS AND CREDIT COMPANIES AND FOREIGN BANKS WITH INVESTMENT GRADE, ACCORDING TO INTERNATIONAL CLASSIFICATIONS ISSUED BY INTERNATIONALLY RECOGNIZED RISK CLASSIFIERS; LONG-TERM LOANS, GRANTED TO FAMILIES MEDIUM AND LOW INCOME FOR THE ACQUISITION OF FULLY GUARANTEED HOUSING WITH MORTGAGES; LOANS WITH GUARANTEES FROM SALVADORAN MUTUAL GUARANTEE COMPANIES, INVESTMENTS IN SECURITIES ISSUED OR GUARANTEED BY THE STATE OR ISSUED OR GUARANTEED BY THE CENTRAL BANK; STOCK INVESTMENTS MADE WITH SECURITIES ISSUED OR GUARANTEED BY THE STATE, OR ISSUED OR GUARANTEED BY THE CENTRAL BANK OR ISSUED BY THE DEPOSIT GUARANTEE INSTITUTE, INVESTMENTS IN SECURITIES ISSUED BY SOVEREIGN STATES OR FOREIGN CENTRAL BANKS, THE CASH AVAILABILITIES, AND FUNDS IN TRANSIT.
(B) FOR FIFTY PERCENT OF ITS TOTAL VALUE, THE SECURITIES CORRESPONDING TO: LOANS WITH GUARANTEES FROM LOCAL BANKS; LOANS WITH GUARANTEES FROM COOPERATIVE BANKS OR SAVINGS AND CREDIT COMPANIES; LOANS TO BANKS LOCAL COOPERATIVES EXCEPT CONVERTIBLE LOANS IN SHARES, ACCORDING TO ARTICLE 70 OF THIS LAW, WHICH WILL BE WEIGHTED BY ONE HUNDRED PERCENT; CREDIT TO SAVINGS AND CREDIT COMPANIES, LONG-TERM LOANS GRANTED TO FAMILIES OF MEDIUM AND LOW INCOME FOR HOUSING ACQUISITION, FULLY SECURED WITH MORTGAGE; DEPOSITS OF MONEY IN LOCAL BANKS, IN FINANCIAL INSTITUTIONS REGULATED BY THIS LAW, THE VALUE OF GUARANTEES, GUARANTEES AND GUARANTEES; OTHER PAYMENT COMMITMENTS ON BEHALF OF THIRD PARTIES AND LOANS WITH GUARANTEES FROM SALVADORAN MUTUAL GUARANTEE SOCIETIES.
C) BETWEEN ZERO AND TWENTY PERCENT OF THE FUNDS IN TRANSIT; THE CREDITS, GUARANTEES, GUARANTEES AND GUARANTEES THAT ARE GUARANTEED IN THEIR ENTIRETY WITH DEPOSITS OF MONEY.
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(D) BETWEEN ZERO AND ONE HUNDRED AND FIFTY PERCENT: INVESTMENTS IN SECURITIES ISSUED BY FOREIGN CENTRAL BANKS OR STATES, DEPENDING ON THE COUNTRY ' S RISK RATING OF THE ISSUER. THE SUPERINTENDENCE WITH THE PRIOR FAVOURABLE OPINION OF THE CENTRAL BANK SHALL ISSUE THE TECHNICAL STANDARDS SETTING OUT THE SPECIFIC WEIGHTS WITHIN THE RANGE SET OUT IN THIS LITERAL AS A FUNCTION OF THE RISK RATING, AS WELL AS THE REQUIREMENTS TO BE MET BY THE ABOVE QUALIFICATIONS.
E) BETWEEN TWENTY AND FIFTY PERCENT, DEPENDING ON THEIR RISK RATING, DEPOSITS OF MONEY IN FOREIGN BANKS WITH INVESTMENT GRADE, ACCORDING TO INTERNATIONAL CLASSIFICATIONS ISSUED BY RISK CLASSIFIERS INTERNATIONALLY RECOGNIZED AND LOANS, GUARANTEES, BONDS AND GUARANTEES THAT ARE GUARANTEED BY FOREIGN BANKS WITH INVESTMENT GRADE, ACCORDING TO INTERNATIONAL CLASSIFICATIONS ISSUED BY INTERNATIONAL RISK CLASSIFIERS RECOGNISED. THE SUPERINTENDENCE WITH THE PRIOR FAVOURABLE OPINION OF THE CENTRAL BANK SHALL ISSUE THE TECHNICAL STANDARDS SETTING OUT THE SPECIFIC WEIGHTS WITHIN THE RANGE SET OUT IN THIS LITERAL ACCORDING TO THE RISK RATING, AS WELL AS THE REQUIREMENTS TO BE MET BY THE ABOVE QUALIFICATIONS.
SHALL NOT BE COMPUTED FOR THE PURPOSES OF DETERMINING THE SUM OF THE WEIGHTED ASSETS, THE VALUE OF THE HOLDINGS IN SHARES OF COMPANIES REFERRED TO IN ARTICLE 12 OF THIS LAW, AS WELL AS THE VALUE OF OTHER EQUITY HOLDINGS IN ANY OTHER SOCIETY.
DEPOSITS AND SECURITIES SECURITIES, WHICH CONSTITUTE THE RESERVE OF LIQUIDITY REFERRED TO IN CHAPTER III, TITLE I OF THE SECOND BOOK OF THIS LAW, SHALL NOT HAVE A WEALTH FUND REQUIREMENT.
IN ANY CASE, THE ASSETS OF A COOPERATIVE MAY NOT BE LESS THAN SEVEN PERCENT OF ITS TOTAL LIABILITIES OR LIABILITIES WITH THIRD PARTIES, INCLUDING THE QUOTAS. SUCH A WEALTH FUND SHALL ALSO NOT BE LESS THAN THE AMOUNT OF THE SOCIAL CAPITAL PAID AS REFERRED TO IN ARTICLE 16 OF THIS ACT.
THE SUPERINTENDENCE OF THE CENTRAL BANK 'S FAVORABLE OPINION AND IN ORDER TO PROTECT DEPOSITORS' SAVINGS, FOLLOWING INTERNATIONAL GUIDELINES AND METHODOLOGIES IN THE AREA OF PRUDENTIAL REGULATION, MAY LAY DOWN REQUIREMENTS ADDITIONAL ASSETS IN RESPECT OF WEIGHTED ASSETS OF UP TO TWO PERCENTAGE POINTS IN RELATION TO OPERATIONAL RISK, MARKET RISK, AS WELL AS OTHER RISKS THAT MAY AFFECT THE SOLVENCY OF THE COOPERATIVE AND CONSEQUENTLY THE DEPOSITS FROM THE PUBLIC.
DURING THE FIRST THREE YEARS OF THE OPERATION OF A NEW COOPERATIVE BANK, THE RELATIONSHIP BETWEEN ITS EQUITY FUND AND THE SUM OF ITS WEIGHTED ASSETS REFERRED TO IN THIS ARTICLE SHALL BE AT LEAST FOURTEEN POINT FIVE PERCENT. AT THE END OF THAT PERIOD, THE SUPERINTENDENCE SHALL DETERMINE WHETHER OR NOT TO PROCEED.
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NOT THE DECREASE OF THE REFERRED PERCENTAGE TO TWELVE PERCENT, TAKING INTO ACCOUNT: (A) THAT THE FINANCIAL RESULTS OF THE COOPERATIVE BANK ARE SATISFACTORY; AND (b) THAT THE COOPERATIVE BANK HAS AN EFFICIENT INTERNAL CONTROL SYSTEM THAT ALLOWS IT TO PROPER HANDLING OF YOUR RISKS. IF THE RESOLUTION OF THE SUPERINTENDENCE IS THAT THE COOPERATIVE BANK SHOULD CONTINUE WITH THE PERCENTAGE OF FOURTEEN POINT FIVE PERCENT, THIS WILL BE FOR A MAXIMUM PERIOD OF THREE YEARS.
COOPERATIVES SHALL HAVE A PERIOD OF ONE HUNDRED AND EIGHTY DAYS, COUNTED FROM THE NOTICE OF THE SUPERINTENDENCE, TO CONFORM TO THE ADDITIONAL REQUIREMENTS OF THE WEALTH FUND REFERRED TO IN THE PREVIOUS PARAGRAPH.
THE SUPERINTENDENCE, AFTER FAVOURABLE OPINION OF THE CENTRAL BANK, WILL DICTATE THE TECHNICAL STANDARDS THAT ALLOW THE APPLICATION OF THIS ARTICLE AND THE FOLLOWING. (6)
Heritage Fund.
Art. 26. FOR THE PURPOSES OF THIS LAW, THE SUM OF THE PRIMARY CAPITAL AND THE SUPPLEMENTARY CAPITAL SHALL BE UNDERSTOOD AS A NET ASSET OR EQUITY FUND, MINUS THE VALUE OF THE RESOURCES INVESTED IN THE OPERATIONS REFERRED TO IN ARTICLE 12 OF THIS ACT, AS WELL AS THE VALUE OF OTHER EQUITY PARTICIPATIONS IN ANY OTHER COMPANY. FOR THE PURPOSES OF DETERMINING THE EQUITY FUND, THE SUPPLEMENTARY CAPITAL SHALL BE ACCEPTED UP TO THE SUM OF THE PRIMARY CAPITAL.
TO DETERMINE THE PRIMARY CAPITAL WILL BE ADDED THE SOCIAL CAPITAL PAID, THE LEGAL RESERVE AND OTHER CAPITAL RESERVES FROM PERCEIVED PROFITS.
THE SUPPLEMENTARY CAPITAL WILL BE DETERMINED BY ADDING THE RESULTS OF PREVIOUS YEARS, OTHER NON-DISTRIBUTABLE UTILITIES, SEVENTY-FIVE PERCENT OF THE VALUE OF THE SURPLUS BY REVALUATION AUTHORIZED BY THE SUPERINTENDENCE, THE FIFTIES PERCENT OF NET INCOME FROM INCOME TAX FROM CURRENT FINANCIAL YEAR, FIFTY PERCENT OF VOLUNTARY SANITATION RESERVES AND SUBORDINATED DEBT TO FIXED TERM UP TO FIFTY PERCENT OF THE VALUE OF THE PRIMARY CAPITAL. THE VALUE OF THE LOSSES OF PREVIOUS YEARS AND OF THE CURRENT YEAR, IF ANY, SHALL BE DEDUCTED FROM THAT SUM.
THE SUBORDINATED DEBT REFERRED TO IN THE PRECEDING PARAGRAPH IS THOSE CREDITS THAT THE COOPERATIVE CONTRACTS AND THAT IN CASE OF DISSOLUTION AND LIQUIDATION OF THE SAME, ARE PAID AT THE END OF ALL THE CREDITORS, BUT BEFORE THE CONTRIBUTION OF CAPITAL OF THE COOPERATIVE PARTNERS.
SUBORDINATED DEBT MAY NOT BE SECURED WITH ASSETS OF THE DEBTOR COOPERATIVE AND SHALL BE SUBJECT TO THE FOLLOWING CONDITIONS:
(a) THAT THE TERM IS AT LEAST FIVE YEARS.
(b) THAT FOR PURPOSES OF COMPUTATION WITHIN THE EQUITY FUND, A DISCOUNT FACTOR IS APPLIED FOR THE LAST FIVE YEARS FOR ITS MATURITY
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CUMULATIVE OF TWENTY PERCENT PER YEAR.
(c) THE CREDITOR IS A LOCAL OR FOREIGN FINANCIAL INSTITUTION WITH AN INVESTMENT GRADE, ACCORDING TO INTERNATIONAL CLASSIFICATIONS ISSUED BY INTERNATIONALLY RECOGNIZED RISK CLASSIFIERS.
LIABILITIES, RESERVES OR PROVISIONS OF LIABILITIES MAY NOT BE COMPUTED AS A WEALTH FUND, NOR SHALL THEY BE USED TO PROVIDE FOR PENSION, RETIREMENT AND OTHER BENEFITS THAT ARE COMPULSORY OR VOLUNTARILY GRANTED BY COOPERATIVES PERSONAL. NOR WILL THE FORECAST RESERVES BE COMPUTED AS THE DEPRECIATION AND THE CONSOLIDATION RESERVES CREATED ACCORDING TO THE INSTRUCTIONS ISSUED BY THE SUPERINTENDENCE. (6)
LIQUIDITY RESERVE (6)
Art. 27.-THE SUPERINTENDENCE SHALL ESTABLISH A LIQUIDITY RESERVE WHICH, IN PROPORTION TO ITS DEPOSITS AND OBLIGATIONS, SHALL BE MAINTAINED BY THE COOPERATIVES, IN ACCORDANCE WITH PROVISIONS WHICH IT ISSUES.
MARKETABLE SECURITIES OF THE PUBLIC OFFERING, BACKED BY A GUARANTEE OF MORTGAGE LOANS ISSUED BY COOPERATIVES WITHIN FIVE YEARS OR MORE, SHALL NOT BE SUBJECT TO THE RESERVE OF LIQUIDITY PROVIDED FOR IN THIS ARTICLE, PROVIDED THAT THE RESOURCES COLLECTED THROUGH THESE INSTRUMENTS ARE INTENDED TO FINANCE MEDIUM-AND LONG-TERM INVESTMENTS, AS WELL AS HOUSING ACQUISITION. (6)
LIQUIDITY RESERVE CONSTITUTION (6)
Art. 28.-THE LIQUIDITY RESERVE OF EACH COOPERATIVE BANK MAY BE CONSTITUTED IN THE FORM OF DEPOSITS OF MONEY IN THE CENTRAL BANK OR SECURITIES ISSUED BY IT IN THE SAME CURRENCY, OR IN DEPOSITS IN MONEY IN BANKS. DEPOSITS AND SECURITIES WHICH CONSTITUTE THE RESERVE OF LIQUIDITY SHALL BE FREE OF CHARGE AND SHALL BE NON-TAXABLE AND THEIR AVAILABILITY SHALL NOT BE SUBJECT TO ANY RESTRICTION.
THE LIQUIDITY RESERVE MUST BE GENERAL FOR THE DIFFERENT TYPES OF DEBT AND IN ANY EVENT, THE AVERAGE LIQUIDITY RESERVE OF THE DEPOSITS MUST NOT BE GREATER THAN TWENTY-FIVE PERCENT OF THE DEPOSITS.
WITHOUT PREJUDICE TO THE FOREGOING, DIFFERENTIATED LIQUIDITY RESERVES MAY BE ESTABLISHED, TAKING INTO ACCOUNT THE NATURE OF THE OBLIGATIONS OR DEPOSITS.
THE SUPERINTENDENCE IN COORDINATION WITH THE CENTRAL BANK WILL DICTATE THE RELEVANT RULES FOR APPLYING THE PROVISIONS REFERRED TO IN THIS ARTICLE, INCLUDING HOW THE LIQUIDITY RESERVE SHOULD BE CONSTITUTED. THE INVESTMENTS OF THESE RESERVES MUST BE EASILY IDENTIFIABLE AND BE TOTALLY SEPARATE FROM OTHER TYPES OF LIQUID RESOURCES MAINTAINED BY THE COOPERATIVES, AND THE SUPERINTENDENCE MAY DELEGATE TO THE CENTRAL BANK TO VERIFY ITS COMPLIANCE. (6)
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LIQUIDITY RESERVE REMUNERATION (6)
Art. 29.-THE RESERVE OF LIQUIDITY WHICH IS CONSTITUTED IN DEPOSITS WITH THE VIEW OR SECURITIES OF THE CENTRAL BANK SHALL BE REMUNERATED. THE CENTRAL BANK MAY CHARGE A COMMISSION FOR THE ADMINISTRATION OF THIS RESERVE. (6)
Art. 30.-THE SUPERINTENDENCE SHALL DETERMINE THE FREQUENCY WITH WHICH THE LIQUIDITY RESERVE SHALL BE CALCULATED AND SHALL INDICATE THE PERIOD WITHIN WHICH A COOPERATIVE BANK MAY COMPENSATE THE AMOUNT OF LIQUIDITY DEFICIENCIES IT HAS IN CERTAIN DAYS, WITH THE SURPLUS TO BE FOUND ON OTHER DAYS OF THE SAME PERIOD.
EACH COOPERATIVE BANK MAY USE ITS LIQUIDITY RESERVE TO MEET ITS LIQUIDITY NEEDS; HOWEVER, TO USE MORE THAN FIFTY PERCENT, PRIOR AUTHORIZATION FROM THE SUPERINTENDENT WILL BE REQUIRED.
FOR THE CALCULATION OF THE RESERVE OF LIQUIDITY THAT CORRESPONDS TO A COOPERATIVE BANK, THE SET CONSISTING OF ITS CENTRAL OFFICE AND THE AGENCIES ESTABLISHED IN THE REPUBLIC SHALL BE CONSIDERED. (6)
LIQUID ASSET REQUIREMENT (6)
Art. 31.-WITHOUT PREJUDICE TO THE RESERVE OF LIQUIDITY PROVIDED FOR IN ARTICLE 27 OF THIS LAW, THE SUPERINTENDENCE MAY ESTABLISH AS A PRUDENTIAL MEASURE A LIQUIDITY REQUIREMENT FOR ALL COOPERATIVES, CONSISTING OF A CERTAIN PERCENTAGE OF ASSETS. LIQUIDS, WHICH IS RELATED TO ITS LIABILITIES. LIQUID ASSETS CONSTITUTING THE LIQUIDITY RESERVE SHALL BE INCLUDED IN THIS PERCENTAGE. THE SUPERINTENDENCE SHALL FIX THE PERCENTAGE REFERRED TO IN THIS ARTICLE AND SHALL DICTATE THE TECHNICAL STANDARDS TO COMPLY WITH THIS REQUIREMENT. (6)
FINES AND PENALTIES FOR DEFICIENCIES IN LIQUIDITY REQUIREMENTS (6)
Art. 32.-THE COOPERATIVE BANKS WHICH INCUR DEFICIENCIES IN THE LIQUIDITY RESERVE AT THE END OF THE CALCULATION PERIOD ESTABLISHED BY THE SUPERINTENDENCE SHALL BE PUNISHED FOR THE MISSING AMOUNT IN ACCORDANCE WITH THE PROCEDURES. ESTABLISHED IN THEIR ORGANIC LAW.
ALSO, DEFAULTS TO THE REQUIREMENT FOR LIQUID ASSETS, WILL BE SANCTIONED BY THE SUPERINTENDENCE ACCORDING TO THE PROCEDURES ESTABLISHED IN YOUR ORGANIC LAW. (6)
Art. 33.-REPEALED (6)
CHAPTER IV OPERATIONS AND OPERATION
Operations
Art. 34.-THE COOPERATIVE BANKS MAY CARRY OUT THE FOLLOWING OPERATIONS IN
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NATIONAL AND FOREIGN CURRENCY:
(A) RECEIVE DEPOSITS AT THE WITHDRAWAL VIEW BY MEANS OF CHECKS OR OTHER MEANS.
b) RECEIVE DEPOSITS INTO SAVINGS ACCOUNT AND TIME DEPOSITS.
c) ISSUE DEBIT CARDS.
d) DISCOUNT EXCHANGE LETTERS, NOTES, INVOICES, AND OTHER DOCUMENTS THAT REPRESENT PAYMENT OBLIGATIONS.
AND) HIRING CREDITS AND CONTRACTING OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS IN GENERAL IN THE COUNTRY OR ABROAD.
f) GRANT ALL TYPE OF LOAN.
g) RECEIVE FOR CUSTODY, FUNDS, SECURITIES, DOCUMENTS, AND OBJECTS; RENT SECURITY BOXES FOR THE SECURITIES HOLDING AND ENTER INTO FINANCIAL RESOURCE MANAGEMENT CONTRACTS WITH SPECIFIC DESTINATION.
H) MAKE COLLECTIONS, PAYMENTS, AND FUNDS TRANSFERS.
I) ISSUE OR MANAGE CREDIT CARDS, SUBJECT TO PRIOR AUTHORIZATION FROM THE SUPERINTENDENCE.
J) MAKE INVESTMENTS IN SECURITIES ISSUED BY THE STATE OR AUTONOMOUS INSTITUTIONS.
k) MAKE INVESTMENTS IN SECURITIES ISSUED BY CAPITAL COMPANIES OR COOPERATIVE FINANCIAL INTERMEDIARIES AND CREDIT AND SAVINGS COMPANIES DULY REGISTERED IN A STOCK EXCHANGE.
L) MAINTAIN FOREIGN CURRENCY ASSETS AND LIABILITIES AND CARRY OUT FOREIGN CURRENCY BUYING AND SELLING OPERATIONS.
M) TO ACCEPT FORWARD-TURNED-AGAINST-THE-COOPERATIVE LETTERS OF EXCHANGE THAT COME FROM GOODS AND SERVICES OPERATIONS.
n) ACQUIRE, YIELD, ENTER INTO CONTRACTS WITH A RETRACTION PACT AND TRANSFER TO ANY TITLE TRADE EFFECTS, SECURITIES SECURITIES AND OTHER INSTRUMENTS REPRESENTING COMPANY OBLIGATIONS, EXCEPT SHARES OF THOSE SECURITIES WHERE THEY ARE NOT OF THE PERMITTED BY ARTICLE 116 OF THIS LAW, AS WELL AS TO CONDUCT SIMILAR SECURITIES SECURITIES ISSUED OR GUARANTEED BY THE STATE OR ISSUED BY THE CENTRAL BANK AND TO PARTICIPATE IN THE SECONDARY MORTGAGE MARKET.
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OR) TRANSFER TO ANY TITLE CREDITS OF YOUR PORTFOLIO, AS WELL AS ACQUIRE CREDITS, AS LONG AS SUCH OPERATIONS ARE NOT CARRIED OUT WITH A PACT OF RETRACTION, WHICH IN THE CASE OF A PACT WILL BE NULL AND OF NO VALUE.
p) CAPTURE FUNDS BY ISSUING BONDS, OR OTHER SECURITIES SECURITIES, SUBJECT TO PRIOR AUTHORISATION FROM THE SUPERINTENDENCE.
q) CAPTURE FUNDS BY ISSUING CERTIFICATES OF DEPOSITS, MORTGAGE CARDS, BONDS OR ANY OTHER FORM THAT ALLOWS FOR THE COLLECTION OF MEDIUM AND LONG-TERM RESOURCES FOR PLACEMENT IN HOUSING FINANCE, INTENDED FOR LOW-AND MIDDLE-INCOME FAMILIES.
R) TO ASSUME CONTINGENT PECUNIARY OBLIGATIONS THROUGH THE GRANTING OF GUARANTEES, BONDS OR OTHER GUARANTEES, CAUTIONING IN FAVOR OF THIRD THE FULFILLMENT OF A CERTAIN OBLIGATION IN CHARGE OF SOME OF ITS CLIENTS.
S) OTHER ACTIVE AND PASSIVE CREDIT OPERATIONS AND OTHER FINANCIAL SERVICES, AFTER FAVOURABLE OPINION OF THE CENTRAL BANK.
IN ORDER TO CARRY OUT THE OPERATION CONSIDERED IN THE LITERAL (A) OF THIS ARTICLE, THE COOPERATIVE BANKS SHALL SUBMIT PRIOR TO THE CENTRAL BANK, FOR APPROVAL IN RESPECT OF THE TIME AND THE NEGOTIABILITY, THE RULES GOVERNING THE CHARACTERISTICS, MODALITIES AND CONDITIONS IN WHICH SUCH DEPOSITS MAY BE CONSTITUTED AND HAVE A WEALTH FUND OF SIX MILLION US DOLLARS FROM THE UNITED STATES OF AMERICA AT LEAST.
ALSO, FOR THE PROPER HANDLING OF SUCH OPERATIONS, IT MUST HAVE ROBUST COMPUTER SYSTEMS, ADEQUATE PHYSICAL INFRASTRUCTURE, TRAINED PERSONNEL, RISK ASSESSMENT UNIT, EFFICIENT CONTROLS TO PREVENT OPERATIONS SUSPICIOUS OR IRREGULAR AND THOSE RELATED TO TERRORIST FINANCING, AMONG OTHER THINGS, ACCORDING TO THE NORMS THAT THE SUPERINTENDENCE ISSUES.
EQUAL REQUIREMENTS MUST BE MET BY THE SAVINGS AND CREDIT ASSOCIATIONS AND ASSOCIATIONS THAT WISH TO OFFER THE OPERATIONS REFERRED TO IN ARTICLE 151 (A) AND IN LITERAL (A) OF ARTICLE 158, RESPECTIVELY. (6)
Central Bank Faculties
Art. 35.-The Central Bank may, by general provisions, dictate the rules with respect to the time limits and the negotiability of the cooperatives in the collection of funds from the public, in any form, in national or foreign currency.
The Central Bank will also be able to set limits on the collection of resources, in any form, from the State and autonomous institutions, based on their total deposits and obligations. The Central Bank shall be empowered to issue the respective regulations for the
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compliance with this provision.
Any probative document issued by cooperatives authorized to collect deposits from the public must bear the following caption: " THIS ENTITY HAS BEEN AUTHORIZED BY THE SUPERINTENDENCE OF THE SYSTEM. FINANCIAL FOR THE COLLECTION OF FUNDS FROM THE PUBLIC. " Such legend shall be displayed in the public service offices with sufficient clarity.
Persons who make use of the legend referred to in this Article without being authorized shall be sanctioned in accordance with what they establish. Articles 283 and 284 of the Criminal Code, without prejudice to other crimes committed.
Conditions set for the Deposits
Art. 36.-The federations shall draw up rules governing all matters relating to the characteristics, modalities and conditions under which deposits may be constituted in savings accounts and time deposits in cooperatives.
rules at the request of the federation, shall be approved by the Central Bank, as regards the transfer or negotiation and the time limit, without prejudice to the provisions in the literal h) of the following article.
These rules shall be uniform application for cooperatives affiliated to the applicant federation; they shall be at the whole the provision of users in the offices of public service of cooperatives, in order to find out about time limits, interest rates, capitalization of interest, surcharges, commissions and other conditions that involve significant benefits or costs for users.
Applicable Terms of Reference
Art. 37.-For the elaboration of the rules referred to in the preceding article, the federations shall take into account:
a) That special deposit plans may be established in parallel savings accounts with the granting of credits;
(b) The interest on deposits in savings accounts shall be calculated on the daily balances and shall be paid and capitalised at least at the end of March, June, September and December of each year and on the date on which the account is closed;
c) That the amounts deposited in savings account shall not be limited and shall bear interest from the date of their delivery. The interest rate shall be fixed and published by the institution concerned and may be raised at any time in accordance with this Law, but which may not be reduced if it is not by means of a notice published at least eight days in advance In the latter case, the savers may withdraw their deposits without prior notice. The publications referred to in this verbatim report must be made on the billboards located in the public service offices. In the same way when it comes to automatic renewal of time deposits, if the
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cooperative decreases the interest rate should give notice to depositors eight days in advance at maturity, who will be able to withdraw it within 15 days after the expiration of the term without penalty;
d) savings account deposits will be checked with the booklets, which will be Non-transferable and shall constitute an executive title against the cooperative in favour of the legitimate carrier, without the need for signature recognition, nor more prerequisite than a court order for payment for the balance that the account throws. That such deposits may also be checked by other means authorized by the Central Bank;
e) That minors who have served sixteen years may open savings accounts, make deposits and withdraw them freely;
f) That the depositor of a savings account or a time deposit may designate one or more beneficiaries in order to give them the funds deposited with their respective interests at their death.
contrary to the depositor, the cooperative will be in the obligation to communicate to the beneficiaries, in writing and within the third day, the designation that would have been done in their favor.
That the depositor will point out the proportion in which the balance of the account must be distributed among its beneficiaries and in the event that it does not The distribution shall be understood to be equal parts.
That the cooperative shall be in the obligation to communicate in writing to the beneficiaries, the designation which in its favour would have been done, within three days of the date of the where you have a certain knowledge of the death of the depositor.
What rights you agree with this Law, correspond to the beneficiary or beneficiaries of a savings account or a time deposit, shall be subject to the provisions of Article 1334 of the Civil Code;
g) That amounts that have more than one year of being deposited In the case of savings up to the sum of twenty thousand colones, they can only be foreclosed in order to make the obligation to supply food effective. Notwithstanding the above, if it is proved that the executed has several savings accounts in the same or different financial institutions, and that the balance sheet exceeds twenty thousand colones, they will only enjoy the privilege of inembargability. amounts paid into the oldest account or accounts, up to the limit set; and
h) That cooperatives may conduct operations and provide services to the public through the use of automated equipment and systems, establishing in the respective contracts of the bases for determining the operations and services the benefit of which is pacté, the means of identification of the user and the responsibilities corresponding to its use, as well as the means by which the creation, transmission, modification or extinction of rights and obligations inherent in the operations are recorded and services that
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be treated.
The use of the means of identification that is established as provided in this literal, replacing the autograph signature, will produce the same effects as those that the laws give to the corresponding documents and in result, they will have the same evidentiary value.
When transactions are carried out by means of a contract of accession, the format of such a contract must have the approval of the Superintendence. In any case, the cooperative will be obliged to explain to the client the implications of the contract, prior to its subscription.
The Board of Directors of the Superintendence, every two years, after the Central Bank's opinion, based on the Consumer prices, will adjust the amount related in the literal g) of this article, so that they maintain their real value.
Criteria for Financing Grant and Type of Plots
Art. 38. The cooperatives must support the granting of the financing in an analysis of the respective applications, which will allow them to appreciate the risk of recovery of the funds. To this end, they must consider the payment and business capacity of the applicants, their moral solvency, their present and future financial and economic situation, the guarantees which, if necessary, are necessary; in the case of a legal person the partners with their participation in the share capital and other elements and information deemed relevant. In addition, they will be able to request their tax returns and other items that they deem necessary.
When they obtain resources from the Multisectoral Investment Bank or other sources of credit, the cooperatives will grant loans. harmony with the financing conditions established by the source concerned. If the resources obtained are foreign currency, loans and debtors may be granted to the payment in the same currency.
For the granting of loans, these are conceptualized in the short term when they are up to one year; period, when they are more than one year but not exceeding five years; and long-term, those over five years.
Information System
Art. 39. The cooperatives will be obliged to provide the information that the Superintendence requires to maintain their credit information system; likewise they will have the right to make use of the aforementioned credit information service.
Sources and Usos Relationships
Art. 40.-The Board of Directors of the Superintendency, on a proposal from the Superintendent and after the opinion of the Central Bank, will determine the rules regarding the relations between the active and passive operations of the cooperatives, risks are kept within reasonable prudential ranges. The Council shall also dictate the rules and limits to which they shall be subject to guarantees, guarantees and other contingent operations.
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Internal Control Policies and Systems
Art. 41.-Cooperatives should develop and implement policies and control systems that allow them to adequately manage their financial and operational risks, among others, provisions related to management, destination and diversification of the credit and investments, management of its liquidity, interest rates and foreign currency transactions. They will also have to establish policies, practices and procedures that enable them to know their clients in a way.
The policies referred to in this article, as well as the changes they make to them, will have to be submitted to the Approval of the respective Body of the cooperative, and must be communicated to the Superintendence and the director of the respective federation, within a period not exceeding ten working days. External auditors should report to the Superintendence on their compliance.
Interest Rates
Art. 42.-Cooperatives will freely establish interest rates, commissions and surcharges; however, interest rate variation policies should be reported in advance to the Central Bank and the Central Bank may only fix them in cases. referred to in Article 29 of the Constitution or in situations of severe monetary and credit market imbalance and for periods of not more than one hundred and eighty days that will apply to its active and passive operations.
Rates, commissions and surcharges that the cooperatives apply to their operations must be made of the knowledge of public monthly or when they are modified. Under no circumstances can a cooperative increase them in active operations or decrease them in passive operations, without having previously been made of public knowledge.
For the purposes of the preceding paragraph, the cooperatives must display such information on billboards installed in their public service offices, and may also use any other means of mass communication. Cooperatives shall not be required to publish interest rates, commissions and other surcharges in national circulation newspapers. Publications on such billboards shall be made in a clear, legible and visible manner, with such institutions being obliged to comply with the offer or release to their clients, for the duration of such fees.
The interest of the active and passive transactions shall be calculated on the basis of the calendar year, considering the days actually elapsed in each transaction. In no case can it be calculated based on the commercial year or a combination of this with the calendar year.
Passive Rates
Art. 43.-The passive rates that are communicated to the public on the billboards will be the minimum rates that the institutions will pay for deposits and other obligations in their different forms and deadlines.
In the case of savings accounts, the cooperatives may not charge fees for account management unless the balance of the account is less than the minimum established by the cooperative to open the savings account.
In the case of fixed term deposits with an adjustable interest rate, must be explicitly defined
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in the deposit contract, the periodicity of the adjustments and the differential in relation to one of the published rates referred to in the preceding subparagraph, which shall be kept fixed for the period of the deposit, except that it is amended in favour of the depositor.
Active Rates
Art. 44. Each cooperative shall establish and make public knowledge a unique reference rate for its national currency lending operations and another for its foreign currency lending operations.
Cooperatives shall establish interest rates in relation to the reference rate for which they are published. For loan transactions with an adjustable interest rate, the differential in relation to the reference rate to be applied during the term of the loan shall be expressly established in the contract to be concluded for that purpose. periodicity of their adjustments and the moratorical interest that will be charged in cases of arrears. The established spread shall be the maximum and the moratorio interest shall remain fixed until the total extinction of the respective credit obligation. Changes in the benchmark interest rate will be applied to all loans that cooperatives grant with adjustable rates.
By way of derogation from this article, cooperatives will be able to establish loan programs. with adjustable interest rates which are not linked to the reference rate, and the loans granted within each programme shall be applied to the same interest rate and the same fees and shall be published in accordance with the provisions of this Article 3 (1) of Regulation (EC) No 30March of the European Community and of the European Community
Cooperatives should communicate to the Superintendency of the opening of each special program in the manner indicated.
Also, cooperatives will be able to provide medium-and long-term loans with adjustable interest rates. with resources from specific financial institutions, linking these interest rate adjustments to the cost of financial resources.
It is prohibited to charge interest that has not yet been accrued. Any payment shall be charged first to interest and the remaining balance, if any, to the capital. Interest on accrued and unpaid interest may not be agreed or charged. However, in order to facilitate access to loans of five and more years to finance investment or housing acquisition, cooperatives will be able to use payment systems of adjustable quotas that provide for the capitalization of interest, but in no case may interest arising from arrears in payments or moratory interest be capitalised.
Interest rates on active transactions shall be applied only for the insolute balances for as long as such balances were outstanding. In the case of arrears, the moratorio interest will be calculated and paid on the default balances and not on the total balance, however pact to the contrary.
In operations of discount of credit documents, the cooperative will be able to deduce from the the nominal value of the document discounted the amount of interest agreed with the non-contractor, but if the obligation is cancelled before its maturity, the cooperative will be obliged to pay the non-accrual interest.
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In active operations, cooperatives must publish the maximum effective annualized rate for each type of operation. The calculation of the transaction in an operation or type of operation shall be done taking into account the total of the charges that the cooperative will charge the client, incorporating the period and modalities to redeem the obligation and expressing it in terms percentage of the principal.
For customer information, in any credit operations contract in addition to the nominal interest rate and other charges as stipulated, the cooperative shall record the effective interest rate. annualised, in larger letters and numbers and below the nominal rate of interest. Failure to comply with this provision will be sanctioned by the Superintendence in accordance with its Organic Law.
The Superintendence must issue the provisions that allow the application of this chapter. It will also monitor compliance with those provisions and sanction violation of those provisions.
Assets for Operation
Art. 45.-THE COOPERATIVE BANKS MAY ACQUIRE OR RETAIN REAL ESTATE AND FURNITURE, AS WELL AS BUILD BUILDINGS WHICH ARE NECESSARY FOR THEIR OPERATION OR THEIR SERVICES, PROVIDED THAT THEIR TOTAL VALUE IS NOT MORE THAN 25% OF THE TOTAL VALUE VALUE OF REVIEWS, DO NOT EXCEED SEVENTY-FIVE PERCENT OF YOUR WEALTH FUND.
THE SUPERINTENDENCE SHALL ESTABLISH THE RULES FOR MAKING AND AUTHORIZING THE VALUES AND REVALUATIONS OF THE REAL ESTATE AND FURNITURE MENTIONED ABOVE AND SHALL REVIEW, AT LEAST EVERY TWO YEARS, THE VALUES AND REVALUATIONS OF THE BUILDINGS TO WHICH THE THIS PROVISION AND ARTICLE 26 OF THIS LAW FOR THE PURPOSE OF DETERMINING SUPPLEMENTARY CAPITAL.
FOR THE PURPOSES OF THE VALUATION OF THE MOVABLE AND IMMOVABLE PROPERTY OF THE COOPERATIVE BANKS, AS WELL AS WHEN IT IS NECESSARY FOR LEGAL PROVISIONS TO VALUE SUCH ASSETS THAT THEY RECEIVE IN GUARANTEE, SUCH VALUATIONS WILL BE REQUIRED THEY ARE CARRIED OUT BY EXPERTS ENROLLED IN THE SUPERINTENDENCE ACCORDING TO THE INSTRUCTIONAL, WHICH IS DICTATED TO THE EFFECT. THE REGISTRATION SHALL BE FOR A PERIOD OF TWO YEARS AND MAY BE EXTENDED, PROVIDED THAT THE EXPERT COMPLIES WITH THE APPLICABLE LEGAL AND REGULATORY REQUIREMENTS. (6)
Extraordinary Assets
Art. 46.-Cooperatives may accept all kinds of guarantees and acquire movable and immovable property of any kind, when such acceptance or acquisition is made in any of the following cases:
a) As a supplementary guarantee, (b) Where, in the absence of other means of payment, they have to accept them in cancellation,
other best, where it is essential to ensure the payment of claims in their favour, total or partial, of appropriations resulting from operations lawfully carried out
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in the course of their business;
c) When they have to buy them, to make effective credits in their favor, or to the security of their rights as a creditor; and
d) When they are awarded to them under judicial action promoted against its debtors.
Art.47.-THE EXTRAORDINARY ASSETS THE COOPERATIVE BANKS SHALL BE ACQUIRED IN ACCORDANCE WITH THE FOREGOING ARTICLE. THEY SHALL BE WOUND UP BY THE COOPERATIVE BANKS CONCERNED WITHIN A PERIOD OF FIVE YEARS FROM THE DATE OF THEIR ACQUISITION AND SHALL BE PROVIDED AS LOSS IN ITS ACCOUNTING FOR THE FIRST FOUR YEARS, BY MEANS OF UNIFORM MONTHLY PROVISIONS.
ANY PROVISION WHICH THE COOPERATIVE BANK HAS CONSTITUTED UNDER THE LOAN WHICH ORIGINATED THE ACQUISITION OF THE EXTRAORDINARY ASSET, MAY NOT BE REVERSED, BUT SHALL BE TRANSFERRED TO THE PROVISION OF THE EXTRAORDINARY ASSET IN QUESTION. FOR THE PURPOSES OF THE GRADUAL CONSTITUTION OF RESERVES, THEY SHALL COMPLY WITH THE ABOVE. IN ANY CASE, THE FIRST YEAR WILL HAVE TO COMPLETE TWENTY-FIVE PERCENT; THE SECOND YEAR, THEY WILL COMPLETE FIFTY PERCENT; THE THIRD YEAR, SEVENTY-FIVE PERCENT, AND, AT THE END OF THE FOURTH YEAR, THEY MUST HAVE COMPLETED ONE HUNDRED PERCENT OF THE PROVISION.
IF, AT THE END OF THE FIFTH YEAR SINCE ITS ACQUISITION, THE COOPERATIVE BANK HAS NOT LIQUIDATED THE EXTRAORDINARY ASSETS, IT SHALL SELL THEM TO THE PUBLIC AT AUCTION WITHIN 60 DAYS OF THE DATE OF THE EXPIRY OF THE PERIOD. PUBLICATION OF TWO NOTICES IN TWO NEWSPAPERS OF NATIONAL CIRCULATION IN THE REPUBLIC, IN WHICH THE PLACE, DAY AND TIME OF THE AUCTION SHALL BE CLEARLY EXPRESSED AND THE VALUE THAT WILL SERVE AS THE BASIS FOR THE AUCTION.
THE BASE OF THE AUCTION WILL BE THE ACTUAL VALUE OF THE ASSETS, AS ESTIMATED BY THE INSTITUTION ITSELF. IN THE EVENT THAT THERE ARE NO BIDDERS, THE AUCTIONS SHALL BE REPEATED AT THE LATEST EVERY SIX MONTHS.
IF AFTER AN AUCTION, A BUYER APPEARS WHO OFFERS A SUM EQUAL TO OR GREATER THAN THE VALUE THAT SERVED AS THE BASIS FOR THE AUCTION, THE COOPERATIVE WILL BE ABLE TO SELL THE GOOD WITHOUT FURTHER PROCESSING AT THE PRICE OF THE OFFER.
IN CASE THAT THE SUPERINTENDENCE DETECTED IRREGULARITIES IN THE AUCTION PROCESS MAY REQUIRE THE REPETITION OF SUCH PROCESS, PROVIDED THAT THE RESPECTIVE FURNITURE OR BUILDING WAS NOT AWARDED. IF THE RESPECTIVE PROPERTY HAS ALREADY BEEN AWARDED, THE SUPERINTENDENCE MUST INFORM THE ATTORNEY GENERAL OF THE REPUBLIC FOR THE CONSEQUENT LEGAL EFFECTS.
THE COOPERATIVE BANKS MAY RETAIN THE GOODS REFERRED TO IN THIS ARTICLE PROVIDED THEY ARE INTENDED FOR WORKS WHICH CONSTITUTE A BENEFIT TO THE COMMUNITY, FOR CULTURAL PURPOSES, PROPERTY FOR THEIR OWN USE OR FOR THE WELFARE OF THEIR STAFF, SUBJECT TO PRIOR AUTHORISATION OF THE SUPERINTENDENCE, SUBJECT TO THE PRESCRIBED LIMIT
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IN ARTICLE 45 OF THE PRESENT LAW.
THE SUPERINTENDENCE WILL DICTATE THE APPROPRIATE INSTRUCTIONAL FOR THE APPLICATION OF THIS ARTICLE. (6)
Limits on Risk Assumption
Art. 48.-THE COOPERATIVE BANKS MAY NOT GRANT LOANS OR TAKE RISKS FOR MORE THAN TEN PERCENT OF THEIR EQUITY FUND WITH THE SAME NATURAL OR LEGAL PERSON. (6)
To calculate the maximum credit limit or other risk that may be assume with a single person the direct and contingent responsibilities of a person or group of persons between whom there is economic linkage, as well as the participation of the cooperative in the capital of these persons; It is understood that there is economic linkage in the case of controlling companies, subsidiaries or have common shareholders or shareholders that hold more than fifty percent of the capital or between which there is a unit of control or decision.
For the purposes of this article, where there are facts to presume that the claims granted to a number of debtors, constituting the same transaction or credit risk, the Superintendence may accumulate them as obligations of the same natural or legal person.
Also considered obligations of a debtor by collective companies or in a partnership in which it is a partner in solidarity, or by companies of any nature in which it has more than fifty per cent of the paid share capital or profits. If the participation in a society is greater than ten percent and does not exceed fifty percent of the social capital paid or the profits, the inclusion will be done pro rata.
The cooperatives that violate this article will be sanctioned. by the Superintendence with a fine equal to ten percent of the amount of the excess credit, in accordance with the procedure laid down in its Organic Law.
They constitute credits to a natural or legal person, the loans granted, the discounted documents, the bonds purchased, the securities, the guarantees and guarantees granted and any other form of direct or indirect financing or other operation in its favour, which represents an obligation for it. Risk with a legal person means the sum of the credits granted and the participation in the capital of said persons.
The Superintendence will dictate the instructional that allows the application of this article.
Credits and Contracts with Related People
Art. 49.-The cooperatives may not have in their portfolio credits, guarantees and guarantees granted to the managers and members of the Cooperative Body, as well as to the directors, managers and employees of the federation of which the cooperative, for a global amount that exceeds five percent of the Heritage Fund. These operations must be notified to the Superintendence.
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DELETED SECOND INDENT (6)
The operations referred to in the preceding subparagraphs may not be granted on more favourable terms, in terms of time limits, interest rates or guarantees, than those granted to third parties in similar transactions; except those granted on the basis of a labour supply to its own personnel; in no case will the loans to managers be granted on more favorable terms than the rest of the employees.
Related Persons
Art. 50.-It is related to the members of the Executive Body, the managers and other employees of the cooperative, as well as the directors, managers and employees of the federation of which the cooperative is a shareholder.
companies whose ownership is in one of the following circumstances:
(a) Companies in which a director or manager of the cooperative is a holder, directly or through a legal person in which they have participation of 10% or more of the voting shares of the company concerned; and
(b) Companies in which two or more directors or managers as a whole are holders, directly or through legal persons in which they have a holding, of 25% or more of the shares with the right to vote.
determine the percentages mentioned above will be added to the wealth participation of the director or manager, that of his spouse and relatives within the first degree of consanguinity.
Art. 51.-The members of the relevant Managing Authority shall disclose the existence of a competing interest and shall not be able to participate in the vote or in the analysis of applications for credit, guarantee or guarantee in which they have a direct or an interest to their spouse or their relatives up to the fourth degree of consanguinity and second degree of affinity, and must withdraw from the respective session at the time when the point at which the decision on the application for credit is made is discussed. The aforementioned recall must be entered in the minutes.
Sanctions
Art. 52. The infringement of the provisions of Article 49 of this Law shall be sanctioned with a fine equivalent to twenty percent of the excess of the overall limit referred to in this Law.
OVERSIGHT OF THE SUPERINTENDENCE (6)
Art. 53.-THE SUPERVISION AND SUPERVISION OF THE COOPERATIVE BANKS REGULATED BY THIS LAW CORRESPONDS ONLY TO THE SUPERINTENDENCE. (6)
Art. 54.-REPEALED (6)
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Art. 55.-REPEALED (6)
Art. 56.-REPEALED (6)
Art. 57.-REPEALED (6)
Superintendence Costs
Art. 58.-REPEALED BY D.L. Nº 592/11
External Auditors
Art. 59.-ALL COOPERATIVES ' ACCOUNTS AND OPERATIONS SHALL BE DETERMINED ANNUALLY BY AN EXTERNAL AUDITOR, NATURAL OR LEGAL PERSON, APPOINTED BY THE GENERAL ASSEMBLY OF THE ENTITY AND REGISTERED BY THE SUPERINTENDENCE. (6)
Art. 60.-The audit shall establish the reasonableness of the administrative management, demonstrate its economic situation and analyze all the operational means, financial statements and management management of the cooperative.
perform in accordance with the principles of accounting, generally accepted auditing standards and their uniform application.
The obligations and functions of the external auditor shall be, in addition to those established in other laws and in the instructions to be given by the Superintendence, the following:
a) Opinions on the sufficiency and effectiveness of the institution's internal accounting control systems;
b) Opinion on compliance with statutory and regulatory provisions, especially those relating to the Heritage Fund, credit limits, credit and contracts with related persons and the sufficiency of the sanitation reserves;
c) Providing information on the investments and financing of the cooperative to its subsidiaries;
d) Opinion on compliance with policies internal to those referred to in Article 41 of this Law;
e) To decide or to abstain explicitly and motivated to do so, on other aspects that the Superintendency or the audited cooperative requires; and
f) Manifest expressly if you have had access to the information necessary to issue your opinion.
Art. 61.-The auditor will have access to all books, records, accounts, documents and the
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general accounting of the cooperative. Those responsible for the custody of such assets shall provide them for examination at the time they are requested.
Art. 62.-The auditor shall submit his report to the general assembly of the cooperative and forward a copy, to the Superintendence, to the corresponding auxiliary supervisory body and to the federation to which it is affiliated.
Art. 63.-The Superintendence shall establish the minimum audit requirements to be met by the external auditors, with respect to the independent audits carried out by the cooperatives. You will also have the power to verify compliance with these minimum requirements, and you can have access to the work documents.
Art. 64. -Superintendence may at any time examine by means of the means it deems appropriate all the business, goods, books, accounts, archives, documents and correspondence of the cooperatives and may require its administrators and staff all the background and explanations necessary to clarify any point of interest to you. All of the above can be done even if you have authorized the participation of an auxiliary supervisor.
Financial Statements and Publications
Art. 65. Cooperatives shall publish in a national circulation journal in the first 60 days of each year, the financial statements and the respective opinion of the external auditor referred to in the annual accounting year corresponding to the year (i) the following immediate application, subject to the rules governing the Superintendence, taking into account the organisational nature of the institutions; The cooperatives shall also publish in a national circulation journal, provisional balance sheets and provisional accounts of the results, as referred to at 30 June of each year, no later than 30 days after that date.
CHAPTER V PRESCRIPTIONS
Public Savings Prescription
Art. 66.-They shall be prescribed and shall pass to the legal reserve, the balances in charge of the cooperatives and in favour of the public saving from deposits, received orders or any other accounts that have been ten or more years of remain inactive.
An account shall be deemed to have remained inactive when its holder has not made with the cooperative, an act showing its knowledge of the existence of the balance in its favour or its purpose to continue keeping it as such in the cooperative. In both cases, the limitation period shall start from the date on which the last act was executed.
In order to avoid the prescription, in the first sixty days of each calendar year, each cooperative must publish once in a national circulation journal, the total list of accounts that in the previous immediate year have been eight or more years of remaining inactive, indicating the number and class of the account and the name of the holders in alphabetical order. Cooperatives may additionally and in their judgment use other means to avoid prescribing.
Cooperatives must inform the Superintendence about the balances of savings accounts
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prescribed that they were paid to the legal reserve.
If this is an account subject to interest payments, the amount of interest will also be entered.
Credit Prescription
Art. 67.-However, their commercial nature, the shares arising from the credit agreements granted by the cooperatives, shall be prescribed at five years from the date on which the debtor last recognized his or her obligation.
TITLE II REGULARIZATION, SPECIAL MONITORING, INTERVENTION, DISSOLUTION, AND
LIQUIDATION
CHAPTER I REGULARISATION
Solvency Problems Regularization
Art. 68.-When a cooperative does not comply with the provisions of Article 25 of this Law, it must inform it as a fact relevant to the Superintendence as set out in the following article, and must also deposit with the Central Bank in the form that (a) it shall determine, recovery of claims and increase in deposits or other forms of acquisition, and shall suspend the granting of new loans incorporating simultaneous capitalisation, until such non-compliance has been remedied. The Central Bank will pay a yield on these deposits, equivalent to the interest rate that the securities issued by the bank for monetary regulation will return.
In the cases mentioned in this article, the Superintendence will apply a fine of up to ten per cent of the value of the insufficiency which generated insolvency, except in the case of a fortuitous case or force majeure. In addition, the cooperative that does not comply with the obligation to report, or indicates as a date of finding the insolvency a different to the effective one, will be sanctioned by the Superintendence with a fine of five percent of the value of the insufficiency, all in accordance with the procedure laid down in its Organic Law. The Superintendence will establish the effective date the cooperative incurred in insolvency.
Art. 69.-In the event that the estate of a cooperative decreases below the level required in accordance with Article 25 of this Law, the Authority Director of the cooperative must present to the Superintendence for its approval, within 15 working days of the date of its report, a regularisation plan, which must send a copy to the federation as the administrator of the Stabilisation Fund for the purposes of information. The Superintendence will have to carry out a thorough inspection of the cooperative that reported the decrease mentioned above. The plan indicated must include at least the following:
a) Commitment to purge the financial statements to the date determined by the Superintendence, after having carried out the aforementioned inspection; these financial statements must be audited by the respective external auditor. In the case
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that the losses determined by the Superintendency and the external auditor are different, whichever is greater;
b) How the cooperative will be capitalized and other measures that will be taken to address the deficiency assets, such as asset sales; and
c) Measures required to maintain or restore the cooperative's financial balance and liquidity, such as credit and investment restrictions, loan or investment portfolio sales, financial obligations and equity take to deal with a possible decrease in deposits.
In case the Superintendence will detect a decrease of the wealth fund of a cooperative below the limit set in article 25 of this Law, it will have to effect inspection of the same and require the presentation of the regularisation plan indicated in the Previous point, the cooperative must present it within the next fifteen working days. According to the seriousness of this decrease, the Superintendency will also be able to decide the intervention of the cooperative, in accordance with this Law.
After the plan of regularization is presented, the Superintendence will have five working days to approve or formulate the essential observations it considers relevant.
In case of observations, the respective cooperative shall have five working days from the day following the corresponding communication, for present the corrected plan to the Superintendence, in order to guarantee compliance of the applicable legal provisions. In any case, the cooperative must initiate actions to correct the problem from the time it is detected.
After the inspection, and when the financial statements referred to in the literal (a) are audited. This article, the cooperative immediately must write down the losses that will result, without the need for agreement of the general assembly.
The cooperative will have a period of ninety days, from the date on which the Superintendence report the deficiency or from the date on which the cooperative reports to the Superintendence such deficiency, in order to comply with the requirements of Article 25 of this Law.
The deadline fixed above may be extended by the Superintendence, for additional periods of thirty days which in conjunction with the initial period do not exceed one hundred and eighty days, provided that the cooperative demonstrates to the Superintendence that there are specific agreements and actions that ensure the capitalization of the cooperative with its partners, other investors, its creditors, financial institutions or the federation as the Administrator of the Stabilization Fund.
Cooperatives that shall be subject to the Special Supervision Regime referred to in this Law.
The cooperative shall be deemed to have normalized its status when the equity fund is subject to the solvency problems referred to in this Law.
recover the minimum level required by Article 25 of this Law.
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Art. 70.-The cooperatives, subject to the approval of the Superintendence and agreement of their Director and without improving their own solvency, may subscribe and pay shares representing an increase in the capital of another cooperative located in the the situation provided for in the previous Article. They may also grant a convertible loan in shares, in accordance with the code of trade, as complementary capital of the Heritage Fund in the receiving cooperative, provided that the time limit does not exceed one year. This loan will not be guaranteed with assets of the receiving cooperative. In that time, the loan will be converted into fully-fledged shares. This loan shall be deemed to be paid only with the shares arising from the capital increase to be made to compensate for that credit, or if the cooperative has exceeded the deficiency; in the latter case it shall have the Prior authorization of the Superintendence.
In no case shall the value of the subscribed shares or the convertible loan represent more than forty percent of the primary capital of the contributing or lending cooperative.
cooperatives which subscribe to the shares or which have granted the convertible loan, may retain the
The cooperatives in the process of regularization of their solvency, may increase their share capital by offsetting the obligations in favor of their creditors, prior written consent of these. For such purposes, creditors shall be understood to be all holders of obligations other than depositors.
Regularization For Other Problems
Art. 71.-Cooperatives will also be subject to a regularisation process for a problem other than that of solvency, when any of the following circumstances arise:
a) When as a result of a poor management of its risks credit, country, market, interest rate, liquidity, operational, legal or reputation, risk the solvency of the cooperative and consequently the deposits of the public;
b) When any of its subsidiaries present solvency problems or structural liquidity problems;
c) reiterated the margins and limits set forth in this Law, especially those referred to in Articles 48 and 49 thereof;
d) That fines have been repeatedly applied for serious breaches of legal provisions; and
e) When the Superintendency objects to the contracts referred to in Article 124 of this Law, they will always be the same as the property of the cooperative.
Art. 72.-If the Superintendence detects any of the problems mentioned in the previous article, it must submit to the respective cooperative the Special Supervision Regime and require it, within the fifteen working days following the Requirement of the Superintendence, present a plan of regularisation. This plan shall contain at least the following:
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(a) Actions to be implemented to fully address the situation affecting you, within a maximum of 120 days from the date of filing of this plan; and
b) Measures necessary to maintain balance the financial and liquidity of the cooperative, such as capitalization, if is the case, as well as restrictions on the granting of credit and investments, sale of loan and investment portfolio, and financial obligation fulfillment.
When a cooperative will detect any of the situations identified in the previous article, must inform it as fact relevant to the Superintendence within five working days following the finding of such facts and within the next fifteen working days, must present to the Superintendence the plan
i)regularisation plan, which is the subject of the regularisation plan, The Superintendence shall have five working days to approve or formulate the essential observations it considers relevant. If there are observations, the cooperative shall have five working days from the day following the corresponding communication, in order to present the plan corrected to the Superintendence, in order to ensure compliance with the applicable legal provisions. In any case, the cooperative must initiate actions to correct the problem from the moment it is detected.
In case a cooperative does not comply with the obligation to report what this article prescribes, the Superintendence sanctioning it in accordance with its Organic Law.
The Superintendence may extend the period referred to in subparagraph (a) of this Article up to for an equal period, when substantial progress has been demonstrated. in the solution of detected problems.
CHAPTER II SPECIAL MONITORING AND INTERVENTION
Special Monitoring Causals
Art. 73.-The Board of Directors of the Superintendency, at the request of the Superintendent, will submit to the cooperatives under its supervision the Special Supervision Regime, in order to monitor the process of regularization, when they incur some of the the following causes:
a) That they are in the process of regularisation of which is dealt with in Article 69 of this Law; and
b) That they are in the process of regularisation for other problems of such seriousness that threaten their solvency and in the public deposits.
The Superintendence will notify the Central Bank and the federation as administrator of the Stabilization Fund on Special Supervision no later than the next day of initiation.
During the Special Supervision Regime the administrators of the cooperative will continue
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in its functions, without any limitations than those entered in this Chapter.
Superintendence Faculties
Art. 74.-The Superintendence will designate a Delegate Supervisor and the assistants that are necessary. The expenses incurred by the Superintendence for this concept shall be paid by the cooperative subject to the Special Supervision Regime. The function of the Delegated Supervisor shall be to exercise permanent control over all financial and administrative operations of the cooperative, to ensure that they are carried out in accordance with the regularization plan approved by the Superintendence and will also have the ability to veto at any time the decisions taken by the management or administration of the cooperative, and must attend the sessions of the Director of the Cooperative, subject to Special Supervision.
In any case, the responsibility of the Delegate Supervisor and his assistants will remain safe. for those acts or decisions, which correspond to their competence, were not submitted to their consideration.
During the duration of the Special Supervision Regime the Superintendence will be empowered to order the removal of managers or members of the Managing Authority to be replaced in accordance with the social pact, as well as to impose limitations on the cooperative's credit and investment policies and to declare the inability to take place.
Likewise, the Superintendence, in the first sixty days of the Special Supervision, must carry out inspections and audits in order to verify the situation of the cooperative's assets and liabilities and to have the necessary information, ordering the appropriate accounting adjustments to be made to determine the value in books of the actions of the cooperative concerned. In the same period the resulting financial statements must be audited by the external auditors and the losses that will result must be amortized, without the need for agreement of the general assembly.
The Special Supervision Regime it shall be agreed for up to a period of one hundred and twenty days, and may be extended for additional periods, which in conjunction with the first term of the Special Supervisory Regime, shall not exceed the term of two hundred and forty days, provided that comply with the provisions regarding carryovers.
Due to the original deadline and its extensions, or if the reports of the Superintendent confirm the impossibility of recovery of the cooperative under Special Supervision Regime, the Superintendence will proceed to intervene, according to the procedure that establishes this Act.
Intervention Causals
Art. 75.-The Board of Directors of the Superintendence, at the request of the Superintendent, shall decree the intervention of a cooperative, where one of the following causes exists:
a) Insolvency not remedied within the period of Special Supervision or before, if the insolvency is aggravated; and
b) That the existence of illegal practices of such magnitude that they place in grave is presumed
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danger public deposits.
In cases of severe insolvency, the Superintendence may decree the intervention of a cooperative, without having been subjected to the Special Supervision Regime.
The Superintendence will notify the Central bank and the federation as administrator of the Fund Stabilization on the intervention of a cooperative by the causes mentioned in this article.
Intervention
Art. 76.-The Superintendence shall decree the intervention of the cooperative concerned and shall determine the conditions of the cooperative, where there is one of the causes mentioned in the previous article. The intervention decree shall establish the separation of the members of the Director, legal representatives and whether or not the removal of the managers, as the case may be, is appropriate. The decree will also establish the appointment of one or more interventors or new members of the Director and its faculties. When the members of a Steering Body are appointed, it shall be made on a proposal from the federation as the administrator of the Stabilisation Fund. During the intervention, the administration of the cooperative will be assumed by him or the interventors or the Organ Director, and must be appointed who will be the legal representative of the cooperative.
If the Superintendence will determine that it is not feasible to restore the financial balance of the cooperative through ordinary market mechanisms, will require the alternative decision of the federation as the administrator of the Stabilisation Fund to proceed or not to restructure of that cooperative. In the case that the federation decides not to restructure the cooperative, the Superintendence will order the closing of the operations with the public, except the recovery of active operations, being able to revoke the authorization to operate, to the cooperative, and will proceed, in accordance with this Law, to request the dissolution and liquidation of the same.
The intervention will be terminated when the appointed liquidators or liquidators take possession of their posts, Superintendence fiscalize the settlement process.
Obligations of the Interventors
Art. 77.-The Financial Controller or the Director appointed by the Superintendency, as soon as they assume their duties, without prejudice to their privileges as administrators of the cooperative, shall:
a) Take control of the records accounting and financial operations of the cooperative;
b) Lift a detailed inventory of the cooperative's assets;
c) Dispose audits in order to verify the situation of the cooperative's assets and liabilities;
d) Adopt the necessary measures to develop audited financial statements start date of the intervention process;
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e) Initiate the necessary steps to detect the commission of crimes and report to the Superintendence so that it is in turn to inform the Attorney General of the Republic; and
f) The others that instruct the Superintendence.
the transfer effect of an agency from one cooperative to another, comprising: assets and liabilities, the financial controller may carry out, subject to the approval of the Superintendence Board, and must be formalized by means of a public deed specifying, in the case of, first and last names, social reasons or denomination of the depositor or debtor in his case, balance to the date of the deposit and to the date, original amount of the credit, balance of capital and interest to the date, as well as place, time, date and name of the notary authorizing the credits transferred. The description of the goods given in guarantee for the assignment of the credits will not be necessary, suffice to quote the numbers of presentation or registration in the respective Registry. These documents, if they are subject to registration, will be entered in the corresponding Register without any proof of solvency of taxes.
The notification of the transfer of deposits and the transfer of credits, in their Case, it shall be done for once, in two national circulation newspapers and the interested parties shall have three working days after the notification to object to such transfer. In the event of no objection within the stated time limit, it shall be deemed to be accepted.
The controller or the financial controller shall convene an Extraordinary General Assembly, with the purpose of the name of three representatives and their respective alternates, in order to act in the name and representation of the partners to the interventors, the Superintendence and the respective Judge, in the event of dissolution and liquidation. The notice referred to above shall be made at one time by a notice in two national circulation newspapers, indicating the place, day and time for its conclusion, the quorum of which shall be any number of members present and shall be resolution with the simple majority of votes present.
Art. 78. In cases where the Superintendence detects fraud in an insolvent cooperative, which endangers the public's deposits, it must inform the Office of the Prosecutor General of the Republic, for the consequent legal effects.
Restructuring an Intervened Cooperative
Art. 79.-When the Director of the Federation as the Administrator of the Stabilisation Fund decides to restructure an intervening cooperative, the Superintendence shall replace the Financial Controller or the Financial Controller, appointing a Director at the request of the
powers of the Director will be those established by the social pact, and may also carry out transfers of agencies, as prescribed in Article 77 of the Present Law.
Art. 80.-When the intervention is carried out by appointing a Director, the latter shall make all efforts to achieve the regularization of the cooperative in the shortest possible time.
The solvency situation and the previous report of the Organ Director of the cooperative or
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of the Superintendent, the Superintendency Board of Directors will terminate the intervention, and a new Director will be appointed in accordance with the social pact.
Art. 81.-The intervention of Article 76 of this Law shall be suspended if the general assembly of the cooperative, in recognition of a legal cause of dissolution, voluntarily resolves the dissolution and liquidation of the cooperative, in which case the rules of the next chapter will be applied as determined by the Superintendence, who will dictate the corresponding instructional. This suspension of intervention will occur when the appointed liquidators enter into office.
CHAPTER III DISSOLUTION AND FORCED LIQUIDATION
Dissolution and Settlement Declaratory
Art. 82.-In the event that the Superintendent's opinion is not possible to normalize the financial situation of the cooperative, the cooperative will prepare, with the support of documents, tests and necessary information, a report that will present to the Board of Directors of the Superintendence, so that within five days of the receipt of the report, a reasoned decision is taken as to whether the cooperative will be wound up and wound up. In this case, it shall certify its decision by adding the relevant documents, evidence and documents with which it will form a file, which shall be forwarded to the Judge with jurisdiction in the commercial matter of the address of the cooperative, requesting that the dissolution and liquidation of the cooperative.
Within the second day of receipt of the file, the Judge will send to hear for three days from the notice to the Extraordinary General Assembly as a collegiate body, through the representatives referred to in Article 77 of this Law.
In case they are not elected such representatives, the Judge shall convene the special general meeting within 10 working days after receipt of the file, by means of a notice in two national circulation newspapers, indicating place, day and time for its conclusion, whose quorum will be whatever the number of members present, and there will be a resolution with the simple majority of votes. The members present in the assembly referred to in this paragraph shall appoint a president and a secretary among them, and the controller shall control the operation of the respective session.
The term of three days to answer the The hearing shall be counted from the day following the date of notification to the representatives of the assembly, but in the event that there are no representatives for not having been appointed, the term shall be counted from the day following the date of notification. realization of the Extraordinary General Assembly, as well as when it will not be carried out, and in this case it will be
Audience to the Superintendence
Art. 83.-The term of the hearing, if any opposition has been filed, shall be heard for the third day at the Superintendence, and the hearing shall be completed and the hearing shall be held, the Judge shall bring the case for sentencing.
Statement
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Art. 84. In the event that the special general assembly is in agreement with the dissolution and liquidation, the Judge shall give judgment within three days of having received the respective letter, and shall order the dissolution and liquidation of the
the case that there is opposition, the Judge will dictate the sentence within the term of an unextendable 15 days, starting with the response of the Superintendence, and if the ruling is an estimate, it will order the dissolution and liquidation of the cooperative; if it is a disestimatory, it shall decide that dissolution and liquidation are not requested. In such cases there will be no special court order.
Appeal
Art. 85.-The judgment is appealable for both purposes before the respective Chamber of the Second Instance; in this instance, if necessary, the cause to be opened shall be opened for eight days, with quality of all charges, following in the rest the formalities that for the appeal in the written judgments prescribes the Code of Civil Procedures, without it taking out of cars. The chamber shall give judgment within a period of no more than 15 days. What the camera resolves will not be supported by any resource.
Execution and Liquidation
Art. 86.-The sentence of dissolution shall be executed by the Judge whom he first met; in order to do so, he shall be certified by the Judge for the registration in the corresponding Register. Once registered, it will prevent the Superintendence from making the proposal of the liquidator or liquidators within three days of the notification.
Business and Carry-over Deadlines
Art. 87.-All the time limits set out in this chapter are of working and non-renewable days. In the procedure there will be no acknowledgement of absentia or declaratory of absence.
Issuance to the Code of Commerce and General Law of Cooperative Associations
Art. 88.-The settlement shall be conducted in accordance with the provisions of the Code of Commerce and the General Law of Cooperative Associations, if any, in all that is not opposed to this Chapter.
Global Transfer of Assets
Art. 89.-Where a cooperative which is in liquidation has completed all or most of its assets or a substantial part of them to another non-bank financial intermediary, such transfer, subject to the authorisation of the Superintendence, may be effected by granting a public deed in which the goods to be transferred are posted in a general manner, in the amount and in accordance with the balance sheet in use by cooperatives.
Art. 90.-In the case referred to in the preceding article, the tradition of the goods and their corresponding guarantees and ancillary rights shall operate in full right, without the need for endorsements, notifications or inscriptions, except in the case of goods real roots and guarantees in which the deed of transfer is sufficient to register them.
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Credit Vigency
Art. 91.-The appropriations granted by a cooperative in the process of liquidation shall keep the terms and conditions originally agreed. The or the liquidators are empowered to transfer these credits without the need for express consent of the debtor or to make transactional arrangements for their payment.
Immediate Requirements of Passive
Art. 92.-The forcible liquidation of a cooperative will result in the immediate enforceability of all liabilities and their payments shall be made in accordance with Article 103 of this Law.
Suspension of Interest to Obligations with Third Parties
Art. 93.-All deposits, debts and other obligations of the cooperative in favor of third parties, from the date on which their forced liquidation is resolved, will cease to accrue interest.
Unclaimed values
Art. 94.-The cash or securities of the asset belonging to the creditors of a cooperative in unclaimed forced liquidation shall be deposited by him or the liquidators at the Central Bank, in the name of such creditors.
This institution will retain that amount for a period of ten years from the date of its deposit, and may make corresponding payments with the Superintendent's consent. Expired term, unclaimed balances will be prescribed in favor of the State.
For the pending litigation rights, the ten-year term governs from the date of the last executed ruling.
Payment of Interest with Remaining
Art. 95.-If, after paying the costs of the forced liquidation and the provisions for the litigious rights are made, the economic resources or securities of the asset in the liquidation shall be paid, interest on the capital of the obligations shall be paid to the average passive interest rate of non-bank financial intermediaries during such time, as calculated by the Superintendence.
Final Remainer Distribution
Art. 96.-When he or the liquidators have fully paid the obligations of a cooperative in forced liquidation and complied with the provisions of Article 103 of this Law and whenever it has remained, it shall convene the general assembly to agree to their distribution in proportion to their contributions.
Procedural Limitations
Art. 97.-Without prejudice to the provision contained in Article 101 of this Law, from the moment the intervention and forced liquidation of a cooperative is resolved, it cannot be initiated
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judicial or administrative proceedings against such a cooperative shall not be allowed to impose any liens or encumbrances, or to dictate other precautionary measures on their property, or to follow procedures for the execution of judgments on the basis of rulings. legal or administrative, due to obligations contracted with
Public Notification on Payment of Obligations
Art. 98.-He or the liquidators shall notify by notice to be published at least in two national circulation newspapers, or by other means of written communication to the outside, to all entities or persons holding goods or securities of this cooperative, which are presented to the settlement office for repayment within the maximum of thirty days.
Published or submitted the notification referred to in the preceding paragraph, no natural or legal person, public or private, may make payments, advances, compensations or assume obligations on behalf of such cooperative in forced liquidation, with the funds, assets or securities belonging to them that it had in its possession. Violators of this article will be responsible administratively or criminally as appropriate.
Liquidator Inventory Lifting
Art. 99.-As soon as he or the liquidators have taken control of a cooperative in forced liquidation they will proceed to lift a notarial act that will contain the inventory of that cooperative. The Superintendence will retain the original of the minutes, and a copy of it must be filed in the settlement office.
Persons with legitimate interest may obtain information or become aware of such inventories or other lists in the settlement office.
Notification on Cancellation of Securities in Custody
Art. 100.-He or the liquidators shall provide for notices to be published in two national circulation newspapers, so that any natural or legal person who receives from the cooperative the service of safety boxes, or who owns any good or value left in the custody or collection held by the cooperative, collects its assets within a period of no more than sixty days from the date of the notice.
Translate the 60 days mentioned, the or the liquidators will authorize before their presence and that of a notary the opening and vacancy of the corresponding box, lifting a inventory of its contents which shall be deposited with the respective notarial act in the cooperative or bank designated by the Superintendence to keep them in custody in the name of its owner.
If any of the objects or securities to referred to in this article are not claimed within ten years from the date on which they were deposited in the designated cooperative, they will prescribe in favor of the State.
Notification to Creditors
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Art. 101.-He or the liquidators shall notify by means of notices published in two national circulation newspapers, during sixty calendar days, on a fortnightly basis, any natural or legal person who may have rights against the cooperative in settlement, to make your claim and to register your right with sufficient evidence, within one hundred and twenty days after the date of the last publication and at the place specified therein.
notification shall indicate the last working date for the submission of such evidence after which it shall not accept claim, except for the rights of the creditor to enforce them on the ordinary course.
Any interested person may formulate before the Superintendence, objections in writing to the rights alleged by the persons to which it refers the first paragraph of this article, within thirty days after the expiration of the deadline for the registration of rights.
Publication of Financial Statements
Art. 102.-The Superintendence shall publish on behalf of the cooperative in liquidation, at least twice a year, in half-yearly form, financial statements which inform on the situation of the cooperative in liquidation together with the full report External Auditor.
Payments Prelate
Art. 103.-The payments to be made in the respective settlement process shall be the following order of precedence:
(a) The salary, the social and food benefits;
b) The other obligations of privilege in the country;
c) Obligations with foreign banks arising from short-term financing to foreign trade;
d) The balances due to all depositors up to fifty-five thousand colones;
e) The balances due to all depositors in excess of fifty-five thousand colones;
f) Obligations securities derived from securities without a mortgage or loan guarantee;
g) BALANCES OWED TO THE MULTISECTORAL BANK OF INVESTMENTS WITHOUT MORTGAGE OR LOAN GUARANTEES; (6)
H) THE OBLIGATIONS IN FAVOUR OF THE STATE AND THE MUNICIPALITIES; (6)
I) OTHER BALANCES DUE TO THIRD PARTIES; AND (6)
j) FIXED TERM SUBORDINATED DEBT BALANCES. (6)
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Obligations with a mortgage or loan guarantee shall be cancelled with the proceeds of such collateral, and in the event that there is a debtor balance, those obligations shall be incorporated into the literal corresponding to them in this provision.
Case that a creditor, including depositors, has obligations in arrears in favour of a cooperative in liquidation, the value of the payments made in accordance with the provisions of this Article shall be paid to those obligations.
The remainder, if any, shall be distributed in accordance with provides Article 96 of this Act.
Prohibition to the State
Art. 104.-The State shall not provide funds in the process of dissolution and liquidation of a cooperative referred to in this Chapter.
Judicial Actions against Officials and Employees
Art. 105.-The Superintendent shall, before the expiration of the periods of limitation of the respective action establishing the Civil Code, Trade, Criminal and other laws, initiate and continue any necessary judicial action against directors, managers, administrators, external auditors, experts, appraisers, employees or in general against any person who is responsible for the causes of the dissolution and forced liquidation of a cooperative.
TITLE III
ONLY CHAPTER
DEPOSIT GUARANTEE INSTITUTE (6)
Art. 106.-THE COOPERATIVE BANKS SHALL BE MEMBERS OF THE DEPOSIT GUARANTEE INSTITUTE WITH THE SAME OBLIGATIONS AND RIGHTS AS THE LAW CONFERS ON THE BANKS; THEREFORE, THEY SHALL BE APPLICABLE TO THEM IN SO FAR AS THEY ARE RELEVANT TO THEIR COOPERATIVE NATURE, THE PROVISIONS OF THE LAW OF BANKS CONTAINED IN THE FOURTH AND SIXTH TITLES.
FOR SUCH PURPOSES, THE INDICATED INSTITUTE WILL HAVE SEPARATE ADMINISTRATION AND ACCOUNTING OF THE EXISTING PATRIMONY TO THE EFFECTIVE DATE OF THIS DECREE.
FOR THE PURPOSE, AN ADMINISTRATIVE COMMITTEE WILL BE INTEGRATED, IN ADDITION TO THE PRESIDENT AND VICE-PRESIDENT OF THE INSTITUTE, TWO MEMBERS APPOINTED BY THE PRESIDENTS OF THE COOPERATIVE BANKS FOR A PERIOD OF FOUR YEARS, WITHOUT POSSIBILITY FOR THE LATTER TO BE RESELECTED.
THE ADMINISTRATIVE COMMITTEE REFERRED TO IN THIS ARTICLE SHALL DICTATE THE RULES PERMITTING THE APPLICATION OF THIS PROVISION. (6)
Art. 107.-REPEALED (6)
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Art. 108.-REPEALED (6)
Art. 109.-REPEALED (6)
Art. 110.-REPEALED (6)
Art. 111.-REPEALED (6)
Art. 112.-REPEALED (6)
Art. 113.-REPEALED (6)
Art. 114.-REPEALED (6)
Art. 115.-REPEALED (6)
TITLE IV GENERAL PROVISIONS
CHAPTER I LIMITATIONS, PENALTIES AND OFFENSES
Prohibition to Acquire Actions
Art. 116. Cooperatives are prohibited from acquiring shares or equity shares of any other company other than the cases referred to in Articles 12, 46 and 70 of this Law.
Public Promotion without Authorization
Art. 117.-Those who publicly promote the collection of savings from the public by a cooperative or the constitution of the same to that end, without prior counting with the necessary authorization, will be punished with fines of up to four hundred monthly minimum wages, without prejudice to canceling the promotion.
Full Paid Capital Information
Art. 118. Cooperatives are prohibited from announcing in any form their subscribed capital, without at the same time indicating the amount of their paid capital.
Limitations for the Public Sector
Art. 119.-The State, the institutions and state-owned enterprises of an autonomous nature and any other organization in which these entities have participation, as well as foreign governments and official agencies, will not be able to acquire capital of a cooperative, except in the case of receipt in payment of obligations, in which case such capital must be disposed of within one year from the date of its receipt. As long as the shares are not transferred, their holders shall not exercise the right to vote.
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Ban on Aated Loans
Art. 120.-Users will freely acquire the goods and services to which the destination of the contracted credits relates.
Prohibition for Lotification and Constructions
Art. 121.-It is prohibited for cooperatives regulated by this law to acquire buildings for the purposes of lotification and housing construction, as well as to engage in such activities, except in the case of extraordinary assets prior to authorization of the Superintendence. The foregoing does not prevent them from granting, in accordance with this law, credits for the purposes of land and construction, provided that neither the institution in question nor its directors, managers or officials authorized to decide on the granting of loans, including their spouses and relatives within the third degree of consanguinity and second degree of affinity, have actions, directly or indirectly, in the lotifying company or construction company that receives the credit.
provided in this article will be sanctioned by the Superintendence with a fine equivalent to the Twenty percent of the resources invested in such activities.
Investments in Real Estate
Art. 122. Cooperatives may not have in their assets real estate, except in the cases referred to in Articles 45.46 and 47 of this Law.
Liability for Damage and Perjudgments
Art. 123.-The directors, administrators, officials, employees and external auditors of the cooperatives who contravene the provisions of the laws, regulations and rules applicable or who intentionally, by acts or omissions, cause prejudice to the institution or third parties, shall be liable for any damages they have caused.
The cooperatives shall be jointly and severally liable for the damages caused to third parties by the actions and omissions of the directors, administrators, officials and employees of the same in the exercise of their functions.
Those who disclose or disclose any information of a reserved nature on the operations of the cooperatives or on the matters communicated to them, or take advantage of such information for their personal gain or third parties, shall incur the same liability, without prejudice to the criminal penalties that may be imposed on them.
INFORMATION AS REQUIRED BY THE JUDICIAL COURTS, THE GENERAL PUBLIC PROSECUTOR ' S OFFICE OF ATTORNEY GENERAL, IS NOT INCLUDED IN THE FOREGOING PARAGRAPH. THE REPUBLIC, THE GENERAL DIRECTORATE OF INTERNAL TAXES WHEN REQUIRED BY PROCESSES OF AUDIT, AS WELL AS OTHER AUTHORITIES IN THE EXERCISE OF THEIR LEGAL POWERS, OR THE EXCHANGE OF CONFIDENTIAL DATA BETWEEN BANKS IN ORDER TO PROTECT THE VERACITY AND SECURITY OF THEIR OPERATIONS, NOR THE INFORMATION THAT CORRESPONDS TO THEM TO DELIVER TO THE PUBLIC AS PROVIDED BY THIS LAW AND THOSE THAT ARE PROVIDED TO THE SUPERINTENDENCE IN RELATION TO THE SERVICE OF
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CREDIT INFORMATION. (5)
Prior authorisation of the Superintendence and in order to facilitate the exchange of data referred to in the previous paragraph, the cooperatives may jointly and with the banks contracts for the provision of services with specialized entities of recognized prestige and experience on the subject, respecting at all times the provisions of Article 143 of this Law. The Superintendence will have inspection powers in these societies and will have access to the aforementioned data by the means it deems appropriate.
Objection of Superintendence to Contracts
Art. 124.-The Superintendence may object on the ground that a cooperative holds or has concluded contracts for the provision of services, leasing or any other commercial operation not prohibited by this Law which damage the property of the cooperative.
Other Bans
Art. 125.-Cooperatives shall also not:
(a) Conduct credit operations with a guarantee of their own shares or with the guarantee of shares of other cooperatives;
b) Grant loans to a person to subscribe to shares in his own capital, except that the capitalisation of the loan does not exceed 10% of the principal; in which case it shall be considered as paid capital, in so far as the proportion of the loan for the subscription of the loan is amortised actions;
c) Warranty the assets of your fixed asset;
d) Celebrate contracts transfer or acquisition of credits with a retraction pact. It shall be presumed that this provision has been infringed when the claims return to the original creditor within a period of less than two years;
e) Redeem in advance or be required to provide liquidity in any form to deposits or other (f) to acquire the buildings which were owned by the company, within five years of the date of the date of the first year of the date of the first year,
the date of application of the contract; the date on which the persons concerned, when this acquisition is to be carried out with related persons, referred to in Article 50 of this Law, as well as to their spouses and relatives within the first degree of consanguinity or first degree of affinity;
g) Grant credits to persons holding investments in shares of financial institutions established in countries where there is no prudential regulation and supervision in accordance with international practice on this subject, provided that the cooperative is aware of such a situation;
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h) Make investments in financial institutions established in countries where there is no prudential regulation and supervision in accordance with international uses on this subject;
i) Celebrate contracts of any nature, perform capital contributions, grant financing, grant guarantees, bonds or guarantees, acquire assets, compromise their prestige or image, use in any form their infrastructure, personnel or information with banks or financial institutions incorporated abroad whose ownership or administration, directly or through third parties is linked to directors or managers. This prohibition also applies to the subsidiaries of the cooperative concerned. The Superintendence, on the basis of general rules, may authorise certain operations with the external entities to which this literal refers, provided that these institutions are duly supervised by the authorities. of the country where they are incorporated. The Superintendency may require the formation of sanitation reserves when credits are granted in violation of this literal;
j) Without prejudice to the provisions of Article 49 of this Law, cooperatives may not grant their support, compromise their prestige or image, share staff or infrastructure or enter into contracts other than the usual financial services, with no company whose ownership or administration, directly or through third parties linked to its directors or managers. The Superintendence must order the immediate cessation of any activity that contravene this literal, and in order to investigate the participation of the cooperative in the facts, it will have temporarily regarding the society referred to them powers to require information that its Organic Law grants to cooperatives;
k) Have branches abroad; and
l) Modify their social pact without prior authorization from the Superintendence.
Crimes Fraudulent Administration
Art. 126.-Directors, managers, employees, external auditors or other persons of a cooperative who, knowingly, have prepared, approved or presented an adulterated or false balance sheet or financial statement, or which they have executed or approved operations to conceal the situation of the company, incur the offences of falsification of documents and the penalties provided for in Article 283 of the Criminal Code shall apply. In the event of bankruptcy or forced liquidation of the institution, they will be considered responsible for the bankruptcy of the institution and the sanctions will be applied according to the provisions of article 242 of the Penal Code.
Art. 127.-Directors, managers, employees, external auditors or other persons of a cooperative who alter, disappear or hide data or records, books, statements, accounts, correspondence or other document in order to hinder, hinder, To divert or circumvent the oversight that corresponds to the Superintendence, they will be sanctioned in accordance with the provisions of article 286 of the Penal Code.
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Art. 128.-When a cooperative is declared in liquidation, fraud is presumed:
a) If the cooperative had recognized non-existent debts;
b) If the cooperative had simulated alienation, to the detriment of its creditors;
c) If the cooperative has engaged in its business, the goods received in the performance of a custody deposit;
d) Yes, in the knowledge of the declaration of forced liquidation of the cooperative and without authorization of the liquidator, its administrators have performed some act of administration or disposition of goods in injury to creditors;
e) If within 15 days prior to the forcible settlement declaration, the cooperative would have paid a creditor to the detriment of the others, in anticipation of the expiration of an obligation;
f) If the cooperative's books or documents and the other supporting records of the cooperative have been hidden, altered, falsified or misused;
g) If within sixty days prior to the date of the declaration of the forced liquidation, the cooperative would have paid interest in time deposits or savings accounts with fees considerably higher than the average in the market in similar institutions, or has sold assets of its assets, at prices that are significantly lower than the market price, or used other improper means to provide funds;
h) Yes within the year before the date of the declaration of the forced liquidation, a cooperative would have executed any act in order to make it difficult, to divert or to circumvent the supervision of the Superintendence;
i) If it had been contracts or other types of conventions to the detriment of the cooperative with persons related to refers to Article 50 of this Law; and
j) In general, provided that the cooperative has intentionally executed an operation that decreases its asset or increases its liability.
Directors, managers or other persons responsible for the Previous facts shall be considered as perpetrators of the bankruptcy and shall be sanctioned in accordance with the provisions of Article 242 of the Criminal Code.
Art. 129.-Directors, administrators or managers of cooperatives who grant credits or carry out operations for their own benefit with abuse of their functions, or carry out any operation fraudulently, shall be sanctioned in accordance with the established in Article 215 of the Penal Code.
If, as a result of the acts referred to in the foregoing paragraph, the depositors are to be prejudiced, the offenders shall be punished in accordance with the provisions of the Article 240-A of the Penal Code.
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Art. 130.-The directors, administrators or managers of a cooperative, who carry out operations prohibited by the laws that regulate the financial system or authorize that such activities be carried out in the offices of the institution, shall be sanctioned by compliance with the provisions of Article 215 of the Criminal Code.
Art. 131.-To those who provide false documents, in order to obtain credit and that for lack of payment and impossible recovery, cause an effective detriment to the cooperative to the detriment of the depositors, will be sanctioned according to what establishes Article 283 of the Penal Code.
Art. 132.-The one who performs fictitious operations in order to avoid the seizure of his assets by executive judgment, shall be sanctioned in accordance with the provisions of Article 215 of the Penal Code.
CHAPTER II EXECUTIVE PROCEDURE AND OTHER DERACTS
Processing of the executive judgment
Art.133.-THE PROCESSING OF THE EXECUTIVE JUDGMENT THAT PROMOTES A COOPERATIVE BANK WILL PROVIDE FOR THE GUARANTEES OF HEARING AND DEFENSE OF THE DEFENDANTS, WHO WILL BE ABLE TO FILE IN THE APPROPRIATE PROCEDURAL OPPORTUNITY FOR ALL RELEVANT EXCEPTIONS. THE EXECUTIVE JUDGMENTS REFERRED TO IN THIS PROVISION SHALL BE PROCESSED IN ACCORDANCE WITH THE COMMON RULES WITH THE FOLLOWING MODIFICATIONS: (6)
(a) THE TEST TERM SHALL BE EIGHT DAYS; (6)
(b) The executing cooperative shall be deposit of the seized goods, without obligation to provide bail, but will be liable for the deterioration that these suffer;
c) For the auction of the seized goods will be taken as base the value carried out by two experts recorded in the Superintendence. In the event of a discrepancy between these, the judge will take as the basis the lowest value; but if the discrepancy is greater than twenty-five percent of the lowest value, he will appoint a third expert and take the value as the basis for the auction. In any event, the value established in the respective instrument shall be taken as the basis for the auction; if this is greater than those indicated by the experts, unless the devaluation of the guarantee has been judicially determined. Positions of less than the value determined by the experts shall not be accepted and where the goods are sold to a third party at a price higher than the value of the principal balance plus interest and other expenses, the remainder shall be returned to the debtor. In the absence of a position, if the creditor cooperative asks for the good, the remainder shall also be returned to the debtor, if any, after deduction of the base price or the credits and accessories charged by the debtor, as well as the costs incurred by reason of the well-awarded. If the goods are not sold for three times or are not sold, a new value shall be made for other auctions; this procedure shall be repeated until the good is exceeded or awarded;
d) No terceria may be accepted if not is founded in the title of domain, entered before the mortgage of the executing cooperative; and
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(e) No preventive annotation, whatever its origin, shall prevent the auction or award of the goods seized by the executing cooperative, except in the case of maintenance obligations, salaries, benefits social and when the property of property will be demanded property.
The obligation to pay insurance premiums and other concepts on behalf of the debtor in the basis of the action, the transcripts, extracts and constances extended by the institution's accountant, shall be stipulated. With the approval of the manager of the same, they will suffice to establish the balance due for their judicial claim. It will proceed in the same way when it comes to testing interest rate variability.
In any contract in which the cooperative is a creditor, the clauses that provide for the anticipated waiver of the rights of the debtors. They will understand why they are not written.
Credit and Litigation Rights
Art. 134.-The loans granted by the cooperatives shall be transferable by way of delivery of the corresponding title, with a reason written following it, containing the name and address of the transferor and the transferee; representatives, the date of the transfer and the capital and interest due on the date of disposal. The signatures of the parties will be authenticated before Notary, in the form provided for in Article 54 of the Law of Notary. The transfer shall be recorded, where appropriate, in the Register of the Root and Mortgage Property, the Social Registry of Infurniture or the Register of Commerce, as the case may be, regardless of the respective registration in order to have effects against the debtor and third parties. The certification issued by the Registrar containing this reason will suffice as a means of proof of the cession of these credits.
Whenever it is two or more disposals contained in a deed, the cession of the litigious rights prove, by submitting to the competent Judge of the testimony of the respective contract that it contains only the head, the description of the transferred credit, the foot of the instrument and any other relevant clause.
transfer of credit may be made by publication in extract of the transfer by a single time in two national circulation papers.
Other rights and actions
Art. 135.-ALL THE RIGHTS AND PRIVILEGES CONFERRED BY THIS LAW MUST BE TAKEN AS A LEGAL AND INTEGRAL PART OF THE CREDITOR ' S RIGHT OF MORTGAGE, IN SUCH A WAY THAT ONCE THE MORTGAGE CONSTITUTED, ALL THE RIGHTS UNDER THIS LAW ARE CONFERRED THEY ARE HARMFUL TO THIRD PARTIES, ALTHOUGH THEY DO NOT SPECIFICALLY CONTAIN THE CONTRACT OR THE REGISTER.
IF THE DEBT IS MORTGAGE, THE CERTIFICATION OF THE RECORD OF AUCTION OR OF THE ORDER OF AWARD ON THE MORTGAGED GOODS ENDS THE LEASES, USUFRUCTOS, ANTICRESIS OR ANY OTHER RIGHT CONSTITUTED AFTER THE REGISTRATION OF THE MORTGAGE ON THE SAME GOODS, WITHOUT PREJUDICE TO THE REFACTIONAL CREDITS
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GRANTED WITH THE CONSENT OF THE COOPERATIVE. (6)
CHAPTER III PIGNORED GOODS
Inembargability of Pignored Goods
Art. 136.-The pledged goods in favor of the cooperatives for loans to the production, will not be embargable on the executions followed by third parties, since it produces effects the inscription of the garment in the respective Registry.
The liability established in the foregoing paragraph shall be extended to the proceeds of the sale of the pledged assets and to any other right of the debtor arising from the negotiation of such goods.
Neither shall be embargable on the executions followed by third parties the goods concerned by irrevocable payment order, or the product obtained from the sale of the same, where such order has been delivered in favor of some entity by person debtor of it in loans to the production, accepted by the person to make the payment to which the order is referred and communicated the acceptance to the institution
The accepting an irrevocable payment order in favor of a cooperative regulated by this Law is bound in favor of it in terms of its acceptance.
Sale of Pignored Goods
Art. 137.-The time limit for a loan with a loan guarantee, consisting of movable property of any kind, delivered to a cooperative, if the cooperative decides to sell it, must be notified to the debtor and granted an eight-day period to make the payment; if not Within the deadline, the cooperative may sell them by means of two authorised brokers and, failing that, two traders in the market, at the market price. If, by the nature of the goods given in garment, they lose their value, the period specified in this paragraph shall be granted, the cooperative must notify the debtor and proceed for sale immediately.
The product of the goods thus sold is impute to the payment of the following:
a) Expenses that have caused the sale;
b) Custody expenses, if any;
c) Insurance premiums on the assets given as collateral, paid on behalf of the debtor; and
d) Interest and amount of the debt.
If the price obtained from the sale will not meet the value of the obligations The creditor may proceed judicially against the debtor, for the difference which will be against him. On the other hand, when such obligations have been paid out, the entity will deliver
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its value to the debtor.
Guaranty Assessment
Art. 138.-When the value of the goods given in guarantee, decreases due to deterioration, disimprovements, depreciation or other reason, to the extent that this value will not reach the amount of the debt and twenty per cent more, the debtors will be obliged to sufficiently improve the warranty within two months of the date on which they are required to do so, provided that the requirement accompanies the two-expert opinion with which it establishes such a decrease.
The requirement shall be made judicially, before the competent court of the creditor's domicile, and shall consist of the notification of the document in which the debtor is required, to improve the conditions and the opinion referred to in the preceding paragraph.
In the event that the guarantee is not sufficiently improved in the indicated term, and that the credit obligations, the time limit shall be expired and the obligation shall be immediately due in full.
When the goods are delivered to the cooperative, the cooperative may sell them, proceeding in accordance with the Article 1 (1) of Regulation (EU) No No 17 of the European Union and of the European Union promote their execution by crediting the expiration of the deadline with the original measures that have resulted in the requirement.
Exercise of Rights
Art. 139.-All the procedural rights granted to cooperatives shall be understood as referring only to credits originally granted by the cooperative as creditors in favour of the respective debtor, or to claims of this kind which are Passed by a cooperative in favor of another cooperative.
SECOND REPEALED (6)
CHAPTER IV MODIFICATION OF SOCIAL COVENANTS
Procedure for Modification
Art. 140.-If a cooperative wishes to modify its social pact it will proceed as follows:
a) Dealing with mergers or other modifications of social pacts, the agreement will be taken in an Extraordinary General Assembly, specially called to the effect. The preferential right of subscription of capital conferred by the law may only be exercised during the holding of the corresponding general assembly or within 15 days of the publication of the respective agreement;
b) In the event of a decrease in capital to absorb losses, the agreement shall be taken by the Extraordinary General Assembly, specially called for the effect and of
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compliance with the provisions of Article 21 (c) of this Law; in this case, the provisions of Articles 30, 181 and 182 of the Trade Code shall not apply in the light of the legal nature of the cooperatives;
c) agreements referred to in the previous literals, without further processing certification of the same to the Superintendence, so that it finds that the request meets the legal requirements of the case and authorizes the modification; and in case of a decrease of capital check that the modification of the social pact has been agreed as authorized;
d) Authorised or verified the agreements of amendments to the social pact, without further processing the agreement will be executed, the respective public deed, which will be entered in the Register of Commerce or the The Salvadoran Institute of Cooperative Promotion, as the case may be, and will take effect from the date of its registration. A notice of the modification will be published once, in two national circulation papers; and
e) You will not be able to register in the Register of Commerce or in the INSAFOCOOP the deed of modification of the social pact, without it bearing a reason subscribed by the superintendent in which the favorable rating of such writing is recorded.
The superintendence shall issue the relevant technical standards for the application of this article.
CHAPTER V OTHER REGULATIONS
Notary Freedom
Art. 141.-The successful tenderers of all types of loans will appoint with complete freedom to the Notary to whom the respective contract will be awarded.
If the successful tenderer appoints his own notary, the cooperative will be in the obligation to provide the notary a model of the contract to celebrate.
If a cooperative established direct or indirect limitations or dilations of any nature to this faculty of the successful tenderer, this or its notary may denounce it before the Superintendence, which when the facts are established, will impose a fine of 10 percent of the amount of credit.
Officials and employees of cooperatives who are notaries are prohibited from exercising this function in the case of notarial instruments granted by the cooperative of which they are officials, employees or contractors, except where the value of the loan does not exceed twenty minimum monthly wages, or when the cooperative assumes the cost of the notarial service.
Extracted Certificates
Art. 142.-The cooperatives will be able to carry out certifications in the extract of the mortgage loans that they agree to, so that they are preemptively annotated. Such certification shall include the date of the act on which the granting of the credit, name and surname of the debtor is approved, amount of the loan
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agreed and term for its amortization and in addition, the mention of the inscriptions in the Register of Property and Mortgage and Social Registry of buildings with respect to the domain and existing taxes, relating to the real estate or real estate, offered and accepted as collateral without the need for the description of such
This certification signed by the general manager or official with special power for this purpose, and with the seal of the cooperative, will be entered preemptively in the corresponding Register by marginalizing the corresponding seats; that annotation will not cause any fee or right.
The effects of the mortgage upon the registration of the respective contract, are rolled back to the date on which the respective certification was filed, in the case of the same real estate referred to.
The effects of the annotation will cease:
a) By the presentation of the mortgage contract;
b) By the written notice that the cooperative of the Registry to cancel such annotation; and
c) When ninety days have passed from the presentation of the preventive annotation without it being presented the respective mortgage contract for your enrollment.
Banking Secret
Art. 143.-THE DEPOSITS AND CAPTIONS RECEIVED BY THE COOPERATIVES ARE SUBJECT TO SECRECY AND INFORMATION MAY BE PROVIDED ON THOSE OPERATIONS ONLY TO THE HOLDER, TO THE PERSON WHO REPRESENTS HIM LEGALLY AND TO THE GENERAL MANAGEMENT OF INTERNAL TAXES. WHEN REQUIRED IN AUDIT PROCESSES.
OTHER OPERATIONS SHALL BE SUBJECT TO RESERVATION AND MAY BE MADE KNOWN ONLY TO THE AUTHORITIES REFERRED TO IN ARTICLE 123 OF THIS LAW, AND TO WHOM IT DEMONSTRATES A LEGITIMATE INTEREST, SUBJECT TO PRIOR AUTHORISATION OF THE SUPERINTENDENCE, REQUESTED BY THE GENERAL DIRECTORATE OF INTERNAL TAXATION WHEN REQUIRED BY AUDIT PROCESSES.
ESTABLISHED IN THIS ARTICLE IS WITHOUT PREJUDICE TO THE INFORMATION TO BE REQUESTED BY THE SUPERINTENDENCE, TO COMPLY WITH THE PROVISIONS OF THIS LAW AND WITH THE DETAILED INFORMATION IT MUST MAKE KNOWN TO THE PUBLIC UNDER ITS ORGANIC LAW, AS WELL AS THE ONE THAT REQUESTS THE GENERAL DIRECTION OF INTERNAL TAXES, WHEN REQUIRED IN AUDIT PROCESSES.
THE BANKING SECRECY WILL NOT BE AN OBSTACLE TO CLARIFYING CRIMES, FOR THE OVERSIGHT, DETERMINATION OF TAXES OR COLLECTION OF TAX OBLIGATIONS, NOR TO PREVENT THE EMBARGO ON PROPERTY. (5)
Excluding Reserved Information
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Art. 144.-It is excluded from the reserved information that they establish other legal provisions, as regards the consolidation operations carried out by the institutions belonging to the Financial System, as referred to in the Organic Law of the Superintendence of the Financial System, and the credits that the cooperatives grant on those that constitute the one hundred percent reserve of sanitation, in accordance with the regulations issued by the Superintendence.
Disclosure on Asset Classification and Heritage Fund
Art. 145.-The Superintendence shall make known, at least every six months in the year, detailed records of each cooperative, on the classification of assets referred to in Article 39 and the calculation of the equity fund to be computed, in accordance with Article 25, both of this Law. In addition, indicators on the concentration of active and passive operations should be included.
Transparency and Information Issuance
Art. 146.-The notices and notifications that the cooperatives regulated by this Law have to make generally known, will be published in a national circulation journal, when in this Law no different requirement for the
The cooperatives shall provide in a truthful and timely manner to the Central Bank all the information they require for the performance of their functions, which they shall submit within the time limit, in the form and by the means that the Central Bank indicates. They shall also facilitate the direct access of the Superintendence to their computer systems, for the purposes of obtaining accounting, financial and credit information that will enable it to fulfill its oversight function in accordance with the law and according to the security, confidentiality and technological limitations of each institution.
The violation of the provisions of the previous paragraph and the misuse of information by officials of the Superintendence, as well as when the information is wrong or misleading, will be sanctioned with a fine of up to two hundred monthly minimum wages, unless specific sanction exists in other laws without prejudice to the criminal liability in which it incurs.
Competition
Art. 147.-Agreements or agreements between cooperatives or banks are prohibited, decisions of groupings of cooperatives and concerted practices which, directly or indirectly, have as their object or effect price or prevent, restrict or
The violations of the provisions of this article will be sanctioned by the Superintendence in accordance with its Organic Law.
Art. 147-A. -FOR CALLS FOR GENERAL MEETINGS OF COOPERATIVES, IT WILL NOT BE NECESSARY TO SEND THE NOTICE REFERRED TO IN ARTICLE 228 (30) OF THE TRADE CODE, WITH THE PUBLICATIONS PROVIDED FOR THE SAME ARTICLE TO BE HELD BY LEGALLY CONVENED.
GENERAL BOARDS ON FIRST AND SECOND CONVOCATION WILL BE ANNOUNCED IN A SINGLE
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WARNING; MEETINGS WILL BE SEPARATED FOR A MINIMUM OF TWO HOURS. (4)
THIRD BOOK OF SAVINGS AND CREDIT UNION FEDERATIONS
SINGLE ORGANIZATION, ADMINISTRATION AND OPERATION TITLE
Nature and Object
Art. 148. THE FEDERATIONS ARE COOPERATIVE SOCIETIES OR ASSOCIATIONS, WHOSE MEMBERS ARE COOPERATIVE BANKS OR SAVINGS AND CREDIT COMPANIES RESPECTIVELY. THEY ARE CONSTITUTED ACCORDING TO THEIR NATURE BY PUBLIC DEED BY ACTIONS, IN ANONYMOUS FORM OR BY COOPERATIVE ASSOCIATIONS REGULATED BY THE GENERAL LAW OF COOPERATIVE ASSOCIATIONS.
WITHOUT PREJUDICE TO THE FOREGOING, FEDERATIONS WHOSE MEMBERS ARE SOCIETIES OR COOPERATIVE ASSOCIATIONS OF SAVINGS AND CREDIT MAY BE ESTABLISHED WITHOUT DISTINCTION. THESE FEDERATIONS MUST TAKE THE FORM OF A PUBLIC LIMITED LIABILITY COMPANY IN ACCORDANCE WITH THE TRADE CODE.
THE FEDERATIONS WILL HAVE AS THEIR FUNDAMENTAL OBJECT THE DEVELOPMENT OF A SYSTEM OF EFFICIENT, SOLVENT AND COMPETITIVE SAVINGS AND CREDIT COOPERATIVES, DEDICATED TO THE PROVISION OF FINANCIAL SERVICES IN URBAN AND RURAL AREAS MAINLY FOR LOW AND MIDDLE INCOME FAMILIES, AND FOR THE MICRO, SMALL AND MEDIUM ENTERPRISES OF THE DIFFERENT ECONOMIC SECTORS.
THE EFFECT IS FOR THE FEDERATIONS:
(a) TO ADVISE AND TRAIN THE COOPERATIVE BANKS FOR THEIR BEST PERFORMANCE AS AFFILIATES OF THE FEDERATION, FOR THE DUE FULFILMENT OF THIS LAW AND TO PERFORM AS INTERMEDIARIES EFFICIENT, COMPETITIVE AND SOLVENT FINANCIAL.
(b) TO ACT AS A CENTRAL BOX TO SUPPORT MEMBER COOPERATIVES IN THE MANAGEMENT OF THEIR LIQUIDITY.
c) BROKER RESOURCES FROM PUBLIC CREDIT INSTITUTIONS TO THEIR AFFILIATES.
d) BROKER CREDIT LINE RESOURCES FROM OTHER SOURCES.
E) USE YOUR AVAILABLE RESOURCES TO CONTRIBUTE TO THE STABILIZATION, GROWTH AND DEVELOPMENT OF YOUR AFFILIATES. (6)
Eligibility Rating
Art. 149.-Federations interested in obtaining the qualification of eligibility, will present their
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application to the Superintendence accompanied by the following information:
a) SOCIAL REASON, DOMICILE AND NUMBER OF MEMBERS OF THE AFFILIATED COOPERATIVE SOCIETIES OR BANKS REGULATED BY THE SUPERINTENDENCE, OWING THESE NOT TO BE LESS THAN TEN; (6)
b) The social script in which the statutes;
c) The scheme of organization and administration of the federation, the financial bases of the operations being carried out and those that are planned to develop; that allow the Superintendence to appreciate, among others aspects, the maintenance of a satisfactory solvency, the acceptable level of return on equity and a satisfactory level of liquidity;
d) The amount of the partners ' contributions; and
e) The general directors indicating the experience of the latter and the system's sources of credit references (a) to be relevant, in order to form a judgment on the appropriateness of the administration.
The Superintendence may also require the persons concerned within 30 days from the date of the submission of the request, other information you create pertinent.
The Superintendence must resolve the request within sixty days of the date the petitioners have provided all the required information.
Superintendence shall grant the qualification of eligibility where, in his opinion, the situation and prospects of the federation, as well as the good repute and personal responsibility of its directors and administrators, offer protection to the interests of the public.
If the decision is favorable to the petitioners, the qualification of eligibility shall be issued by resolution of the Superintendence. In the case of such a resolution, it is conditional on modifications to the constitutive writing, the Superintendence should indicate the time within which the modifications would be granted to it.
The federations will be subject to the oversight of the Superintendence, in accordance with what is established by the organic law of this and this Law.
Social Capital
Art. 150.-EVERY FEDERATION QUALIFIED BY THE SUPERINTENDENCE MUST REGISTER A MINIMUM PAID CAPITAL OF FIVE MILLION COLONES. THE PARTICIPATION OF EACH AFFILIATE IN THE SOCIAL CAPITAL OF A FEDERATION MAY NOT EXCEED TWENTY PERCENT. THIS CEILING SHALL BE REDUCED TO 10% WHERE THE NUMBER OF MEMBERS IS TEN OR MORE. (6)
The Superintendency Board of Directors, every two years, based on the Index of
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Consumer Prices, after the Central Bank's opinion, should update the amount of the paid social capital referred to in this article, so that it maintains its real value. In this case, the federations will have a period of one hundred and eighty days to adjust their social capital.
Operations
Art. 151.-The federations are empowered to carry out the following operations in national and foreign currency:
a) RECEIVE FROM THEIR AFFILIATES THE WITHDRAWAL OF DEPOSITS BY MEANS OF CHEQUES OR OTHER MEANS; (6)
b) debit cards;
c) Contracting obligations with legal persons, domestic or foreign, including the Multisectoral Investment Bank, as well as with international agencies;
d) Operate liquidity centralization systems of cooperatives, with specific regulations;
e) Servir of agents financial institutions and domestic or foreign companies, for the placement of resources in the country;
f) Making investments in securities securities issued by the State or the autonomous institutions;
g) ACQUIRE, YIELD, ENTER INTO CONTRACTS WITH A RETRACTION PACT AND TRANSFER TO ANY TITLE TRADE EFFECTS, SECURITIES SECURITIES AND OTHER INSTRUMENTS REPRESENTING COMPANY OBLIGATIONS, EXCEPT SHARES OF THOSE COMPANIES WHERE THEY DO NOT: PERMITTED BY ARTICLE 116 OF THIS LAW, AS WELL AS SIMILAR TRANSACTIONS WITH SECURITIES ISSUED OR GUARANTEED BY THE STATE OR ISSUED BY THE CENTRAL BANK AND PARTICIPATING IN THE SECONDARY MORTGAGE MARKET; (6)
loans to the affiliated cooperatives according to the rules that the effect dictates;
i) Manage credit cards of cooperatives, subject to the authorization of the Superintendence;
j) Maintain assets and liabilities in foreign currency and carry out transactions in the purchase and sale of foreign currency;
k) obligations assumed by the affiliated cooperatives, upon request, subject to the authorization of the Authority's Director of the Federation;
l) To charge interest, fees, commissions and other surcharges on the operations it carries out
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and the services it provides;
m) Capturing funds by issuing bonds or other securities negotiable securities, subject to the authorization of the Sustrendtrend; and
n) Other active and passive operations of credit and other services financial, prior to the favorable opinion of the Central Bank.
FEDERATIONS MAY NOT PERFORM ANY OF THE ACTIVE OR PASSIVE OPERATIONS REFERRED TO IN THIS ARTICLE DIRECTLY WITH THE PUBLIC. (6)
Limits on Risk Assumption with Cooperatives
Art. 152.-THE FEDERATIONS MAY NOT GRANT CREDITS OR TAKE RISKS FOR MORE THAN TWENTY PERCENT OF THEIR WEALTH FUND WITH THE SAME COOPERATIVE BANK, AND MUST DEFINE IN THEIR CREDIT POLICIES THE SPECIAL PROVISIONS FOR GRANTING AND CONTROL OF CREDITS GRANTED TO THE SAME COOPERATIVE, WHEN THEY EXCEED TEN PER CENT OF THEIR WEALTH FUND. (6)
Audit Committee
Art. 153.-Any federation with a qualification of eligibility, shall have an audit committee.
In the case of a Federation of cooperative societies, it shall be appointed by the Director and composed of two directors who do not hold office. executives in the federation, a manager and the internal auditor. In the case of a federation of cooperative associations the audit committee shall be constituted by two members of the supervisory board, a manager and the internal auditor.
The functions of the Audit Committee shall be as follows:
(a) Vellar for compliance with the agreements of the General Assembly, the Director Organ and the provisions of the Superintendency and the Central Bank;
b) Follow up to the reports of the internal auditor, the external auditor and the Superintendence to correct the observations that you make about the operations of the federation;
c) Collaborate on the design and application of internal control, as well as propose the appropriate corrective measures; and
d) Other with the Superintendence.
The Superintendence will issue the provisions regulating the operation of the Audit Committee.
Applicable Regime
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Art. 154.-The provisions of the Second Book of this Law shall apply to the federations, in so far as it does not contravene the specific rules contained in this Book.
The internal organisation of the federations of cooperative societies will be determined by its own statutes.
BOOK QUARTER OF SAVINGS AND CREDIT SOCIETIES
Applicable Regime
Art. 155.-Savings and credit companies shall be subject to the provisions of the Law of Banks, except as provided in this Book.
Fundamental Provisions
Art. 156.-The fundamental provisions contained in the First Book of this Law will apply to savings and credit societies.
Organization, Administration and Operation
Art. 157.-The provisions of the Law on Banks contained in Title II, relating to the organization, administration and operation, shall apply to savings and credit companies, with the following modifications:
a) They shall not be able to constitute public promotion;
b) They may not constitute subsidiaries or open agencies, abroad;
c) In terms of administration, requirements and inabilities of directors shall be subject to the provisions of Article 15 of this Act;
d) The paid share capital shall be at least twenty-five million colones;
e) The relationship between equity and weighted assets, and the weighting of risk assets shall be made in accordance with Article 25 of this Act;
f) The determination of the equity fund shall be made in accordance with the provisions of Article 26 of this Law. this Act;
g) The equity fund shall not be less than the amount of the social capital paid indicated in the literal d) of this article; and
h) The limit to the ownership of the shares referred to in Article 10 of the Act shall not apply. of Banks, to non-profit foreign foundations and associations, with extended legal status of compliance with the law of their countries of origin and which are duly registered in the Register of Foundations and Associations of the
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Ministry of the Interior, according to the Law of Foundations and Associations, in El Salvador.
However, as established in the literal d) of this article, savings and credit companies may be constituted, with a social capital not less than ten millions of colones, when they are dedicated to promoting small and micro enterprises. Such companies may be authorized to grant all types of loans, intermediate international resources, and the Multisectoral Investment Bank and capture savings deposits from their beneficiaries.
Art. 158.-SAVINGS AND CREDIT COMPANIES MAY CARRY OUT THE FOLLOWING OPERATIONS IN NATIONAL AND FOREIGN CURRENCIES:
(A) RECEIVE DEPOSITS AT THE DISPOSAL OF THE ACCOUNTS BY MEANS OF CHEQUES OR OTHER MEANS.
b) RECEIVE DEPOSITS INTO SAVINGS ACCOUNT AND TIME DEPOSITS.
c) ISSUE DEBIT CARDS.
d) DISCOUNT EXCHANGE LETTERS, NOTES, INVOICES, AND OTHER DOCUMENTS THAT REPRESENT PAYMENT OBLIGATIONS.
AND) HIRING CREDITS AND CONTRACTING OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS IN GENERAL IN THE COUNTRY OR ABROAD.
f) GRANT ALL TYPE OF LOAN.
g) RECEIVE FOR CUSTODY, FUNDS, SECURITIES, DOCUMENTS, AND OBJECTS; RENT SECURITY BOXES FOR THE SECURITIES HOLDING AND ENTER INTO FINANCIAL RESOURCE MANAGEMENT CONTRACTS WITH SPECIFIC DESTINATION.
H) MAKE COLLECTIONS, PAYMENTS, AND FUNDS TRANSFERS.
I) ISSUE OR MANAGE CREDIT CARDS.
J) MAKE INVESTMENTS IN SECURITIES ISSUED BY THE STATE OR AUTONOMOUS INSTITUTIONS.
k) MAKE INVESTMENTS IN SECURITIES ISSUED BY CAPITAL COMPANIES OR COOPERATIVE FINANCIAL INTERMEDIARIES AND CREDIT AND SAVINGS COMPANIES DULY REGISTERED IN A STOCK EXCHANGE.
L) MAINTAIN FOREIGN CURRENCY ASSETS AND LIABILITIES AND CARRY OUT FOREIGN CURRENCY BUYING AND SELLING OPERATIONS.
m) TO ACCEPT FORWARD-TURNED-AGAINST-THE-COOPERATIVE LETTERS OF CHANGE, WHICH COME FROM OPERATIONS OF GOODS AND SERVICES.
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n) ACQUIRE, YIELD, ENTER INTO CONTRACTS WITH A RETRACTION PACT AND TRANSFER TO ANY TITLE TRADE EFFECTS, SECURITIES SECURITIES AND OTHER INSTRUMENTS REPRESENTING COMPANY OBLIGATIONS, EXCEPT SHARES OF THOSE SECURITIES WHERE THEY ARE NOT OF THE PERMITTED BY ARTICLE 116 OF THIS LAW, AS WELL AS TO CONDUCT SIMILAR SECURITIES TRANSACTIONS ISSUED OR GUARANTEED BY THE STATE OR ISSUED BY THE CENTRAL BANK AND TO PARTICIPATE IN THE SECONDARY MORTGAGE MARKET.
OR) TRANSFER TO ANY TITLE CREDITS FROM YOUR PORTFOLIO, AS WELL AS ACQUIRE CREDITS, AS LONG AS SUCH OPERATIONS ARE NOT PERFORMED WITH A RETRACTION PACT, WHICH IN THE EVENT OF A PACT WILL BE NULL AND OF NO VALUE.
p) CAPTURE FUNDS BY ISSUING BONDS, OR OTHER SECURITIES SECURITIES, SUBJECT TO PRIOR AUTHORISATION FROM THE SUPERINTENDENCE.
q) CAPTURE FUNDS BY ISSUING CERTIFICATES OF DEPOSITS, MORTGAGE CARDS, BONDS OR ANY OTHER FORM THAT ALLOWS FOR THE COLLECTION OF MEDIUM AND LONG-TERM RESOURCES FOR PLACEMENT IN HOUSING FINANCE, INTENDED FOR LOW-AND MIDDLE-INCOME FAMILIES.
R) TO ASSUME CONTINGENT PECUNIARY OBLIGATIONS THROUGH THE GRANTING OF GUARANTEES, BONDS OR OTHER GUARANTEES, CAUTIONING IN FAVOR OF THIRD THE FULFILLMENT OF A CERTAIN OBLIGATION IN CHARGE OF SOME OF ITS CLIENTS.
S) OTHER ACTIVE AND PASSIVE CREDIT OPERATIONS AND OTHER FINANCIAL SERVICES, AFTER FAVOURABLE OPINION OF THE CENTRAL BANK. (6)
Consolidated Monitoring of Financial Institutions
Art. 159.-The provisions of the Law on Banks contained in Title V, relating to the consolidated supervision of financial institutions, shall apply to savings and credit companies, except for the following exceptions:
a) savings and credit companies will not be able to operate as a controlling company for a financial conglomerate;
LITERAL DELETED (6)
b) THE SAVINGS AND CREDIT COMPANY ESTABLISHED IN THE COUNTRY, MEMBER OF THE CONGLOMERATE, AT NO TIME MAY TAKE RISKS IN ANY FORM, DIRECTLY OR INDIRECTLY, WITH THE CONTROLLING COMPANY, AND WITH THE OTHER MEMBER COMPANIES OF THE CONGLOMERATE ESTABLISHED IN THE COUNTRY, FOR A TOTAL SUM THAT EXCEEDS FIVE PERCENT OF THE WEALTH FUND OF THE SAVINGS AND CREDIT SOCIETY. ALSO, THE SUM OF THE CREDITS, GUARANTEES, GUARANTEES AND GUARANTEES GRANTED TO COMPANIES BELONGING TO THE CONGLOMERATE
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ESTABLISHED ABROAD, MAY NOT EXCEED FIVE PERCENT OF ITS EQUITY FUND; AND (6)
(c) THE SAVINGS AND CREDIT COMPANY ESTABLISHED IN THE COUNTRY, A MEMBER OF THE CONGLOMERATE, MAY AT NO TIME TAKE RISKS IN ANY FORM, DIRECTLY OR INDIRECTLY, BY MORE THAN FIVE PER CENT OF ITS FUND PATRIMONIAL, WITH THE COMPANIES IN WHICH IT HAS A MINORITY STAKE. THIS LIMIT SHALL INCLUDE THE CLAIMS, GUARANTEES, GUARANTEES AND GUARANTEES THAT THE SAVINGS AND CREDIT COMPANY GRANTS TO THE COMPANIES IN WHICH THE EXCLUSIVE CONTROLLING COMPANY HAS A MINORITY SHAREHOLDING. (6)
Deposit Insurance Institute
Art. 160.-The savings and credit companies will be members of the Deposit Insurance Institute with the same obligations and rights as the law confers on the banks; therefore, the provisions of the Law of Banks contained in the law will apply to them. Title Sixth, relative to the Deposit Insurance Institute.
General Provisions
Art. 161.-THE PROVISIONS OF THE LAW ON BANKS CONTAINED IN TITLE 7, RELATING TO GENERAL PROVISIONS, SHALL APPLY TO SAVINGS AND CREDIT COMPANIES, EXCEPT FOR THE FOLLOWING AMENDMENTS:
(a) WITH REGARD TO THE COST OF THE SERVICE INSPECTION OF THE SUPERINTENDENCE, WILL APPLY TO THE SAVINGS AND CREDIT SOCIETIES ESTABLISHED IN ARTICLE 58 OF THIS LAW.
(b) SAVINGS AND CREDIT COMPANIES MAY NOT GRANT LOANS OR TAKE RISKS FOR MORE THAN TEN PERCENT OF THEIR EQUITY FUND WITH THE SAME NATURAL OR LEGAL PERSON.
SAVINGS AND CREDIT COMPANIES MAY BE INTEGRATED INTO A FEDERATION OF WHICH THE THIRD BOOK DEALS, THE SOLE TITLE OF THIS LAW, IN WHICH CASE IT MAY ADOPT THE GENERAL NAME OF FEDERATION OF COOPERATIVE BANKS AND SAVINGS AND SAVINGS COMPANIES. CREDIT. (6)
Inapplicability
Art. 162. The provisions of the Law on Banks contained in the Eighth Title relating to the transitional provisions shall not apply to savings and credit companies; and shall be governed by the transitional provisions of this Law.
FINAL AND FINAL PROVISIONS BOOK
SINGLE TITLE
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CHAPTER I TRANSIENT PROVISIONS
Request to continue performing Captation Operations
Art. 163.-Any cooperative which, at the time of this Law, finds itself carrying out operations for the collection of deposits with the public, must communicate it expressly to the Superintendence, within thirty days; it will have a deadline of Sixty days to inform the Superintendence of its decision to continue carrying out the operations mentioned and within the next sixty days of manifested its intention, it will have to present a Plan of Regularization in order to adapt to the new ones. requirements set out in this Law, which must be met within a maximum of two years following the validity of the same. The Superintendency will immediately incorporate these cooperatives under its supervision and must follow up with the implementation of the Plan.
If the deadline referred to in the previous paragraph has not been adjusted to the requirements, legal, the cooperative will be subject to the Special Supervision Regime pursuant to this Law, and must comply with the following:
a) Suspend new deposit collection operations with the public; and
b) Liquidate balances from the public deposit collection operations, within the maximum period of two years years, for which you may transfer assets or liabilities to another financial intermediary authorized by the Superintendence or merge with another cooperative.
If the cooperative within the intended period, I will not expressly express your decision of continue to carry out the operations referred to in the first paragraph of this Article, shall be subject to the Special Supervision Regime, in accordance with this Law, and must be liquidated within two years of the date of its validity; balances by public deposit collection operations. Gradual Adaptation of Cooperatives
Art. 164.-The cooperatives referred to in Article 2 (b) of this Law must inform the Superintendence that they have exceeded the mentioned figure, within ten working days of such circumstance and must present within thirty days, a Plan of Regularization to adjust its social capital to that referred to in Article 16 of this Law and to the other requirements established in it, which must be fulfilled within the maximum period of three years.
Unfederated Cooperatives
Art. 165.-Cooperatives that usually receive public money through any passive operation and are not affiliated with a federation, must comply with all the regulations of this Law, taking into account the following aspects:
(a) They must constitute the legal basis directly in the entity that the Central Bank designates, in accordance with the rules and guidelines that it determines;
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(b) According to the provisions of Article 34 of this Law, they shall submit to the Central Bank for approval, new active and passive credit operations and other financial services they intend to carry out; and
c) to draw up the rules referred to in Article 36 of this Law, which shall cover all concerning the characteristics, modalities and conditions in which time deposits and savings deposits may be constituted and directly subject them to the approval of the Central Bank.
Superintendence
Art. 166.-To the extent that the Superintendence incorporates under its competence a cooperative, the federation of which it is a shareholder, and the Salvadoran Institute of Cooperative Development, must send to the Superintendence all the information that is
the first six months of the entry into force of this Law, the Salvadoran Institute of Public WorksInstituto El Salvador de Fomento Cooperative will have to send to the Superintendence a report that includes the cooperatives, that under its audit, perform savings and credit operations; as well as balances and different forms of capture and other sources of financial resources, be from their associates, aspirants, or others.
Separation of Activities
Art. 167.-The cooperatives that, when the present Law enters into force, are carrying out other activities other than those of financial intermediation, here authorized they will have to separate them contably within the period of six months. Within two years, such separation must be made legally, either for the purposes of terminating such activity or for doing so within the scope of this Law; likewise, within the six-month period, those who do not wish to continue By carrying out the operations authorized in this Law, they may be transformed, without being liquidated, into another kind of cooperative, according to their respective Law.
Adequation of Social Pacts
Art. 168.-The cooperatives formed before the validity of this Law will have a period of twelve months from that date to reform and to harmonize their statutes according to the content of this Law.
Pending Resources
Art. 169.-The procedures and resources promoted by the non-bank financial intermediaries that are pending the date of the validity of this Law, will continue to be processed according to the law in which they were initiated.
Requirements for Directors and Managers
Art. 170.-To the directors and managers of the cooperatives that, to the date of validity of this Law
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are in such positions, they will not be subject to the provisions of the first paragraph of article 15 of this Law, regarding the experience, nor the provisions of the literal (a) of the same article, concerning age.
Surplus by Revaluation
Art. 171.-For the purposes of the inclusion of the surplus by revaluation in the determination of the equity fund, the cooperatives will have six months from the validity of this Law, to present to the corresponding supervisory entity, the applications the respective, whether or not they are accounted for, in order for it to be analyzed and authorized, if they proceed.
After the expiry of that period, no new revaluations may be requested for the purposes of including them in the determination of the equity fund.
Reserve for Cooperative Education and Other Capital Reserves
Art. 172.-The cooperatives may capitalize on the balance, the validity of this Law, their reserves and surplus accounts, except the revaluation of the fixed assets and the products not received. Other capital reserves upon entry into force of this Law must be transferred to the legal reserve.
The balance of the reserve account for the cooperative education of its members must be transferred to a provision account for the fund education.
Update from Montos
Art. 173.-The first update of the amounts set out in Articles 2, 16, 150 and 157 literal (d) of this Law shall be made two years after the end of the period referred to in Article 164 of this Law.
Art.174.-The first updating of the amounts set out in Articles 37 literal (g) and 103 literals (d) and (e) of this Law, shall be made after seven years of its validity.
Legal Lace
Art. 175.-THE RESOURCES WHICH THE FEDERATIONS AND COOPERATIVES MAINTAIN AS LEGAL LACE SHALL BE UNDERSTOOD AS CONSTITUTING THE RESERVE OF LIQUIDITY. (6)
Limits on Risk Assumption
Art. 176.-For the purpose of complying with the limit on the risk-taking established in Article 48 of this Law, to the debtors who, at the date of its validity, have a balance exceeding those limits, they may not be granted new financing, but until its balance is lower than the aforementioned limit.
Assumption of Risks of Federations with Affiliated Cooperatives
Art. 177.-For the purposes of complying with the limit on risk taking that establishes
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Article 152 of this Law, cooperatives that have obligations with the federation that exceeds those limits, will have five years of time from the validity of the law to conform to the established limit. annual decreases of at least twenty per cent of excess presented.
Credits and Contracts with Related People
Art. 178.-For the purpose of complying with the limit of credits and contracts with related persons, in Article 49 of this Law, cooperatives will not be able to give new credits to related persons, but until the total credits are lower than the mentioned limit.
Settlement of Federation Operations
Art.179.-Federations shall have a maximum period of one year from the date of this Law, to settle the current balances of savings deposits and to time-limits other than those of the affiliated cooperatives, as well as the balances of marketable debt securities.
Continuation of Interventions
Art.180.-Cooperatives that collect funds from the public and which are subject to this Law to be intervened by a federation, will continue to be subject to the intervention regime decreed by According to the Law previously applicable.
The interveners must submit within thirty days after the validity of this Law, to the Superintendence, a Plan of Regularization, so that within one hundred 80 days of submission of such plan, its standard situation is found or its status is agreed merge or its dissolution and liquidation.
FEDECREDITO Transformation
Art. 181.-The Federation of Credit Banks and Banks of the Limited Workers, is authorized, without liquidating, to be transformed as a federation according to the provisions of this Law, constituted by credit banks and banks of the workers, as a private entity, within twelve months of the entry into force of this Law. The assets and liabilities of the federation as an autonomous institution will be transferred to the federation as a private entity. The federation shall be governed by the provisions established by this Law and by its own statutes, as well as the other laws that regulate it.
Likewise, FEDECCREDITO will present, within a period of not more than thirty days, the entry into force of this Law. Law, a Plan of Regularization to adapt to the requirements of the same, which must be met within two years of its entry into force.
Continuation of Functions of Directors in FEDECREDITO
Art.182.-The Board FEDCREDITO's Board of directors, at the time this Law enters into force, will be able to continue in its functions up to a hundred and eighty days more. Within this period, the choice of the new management body must be called; the new management body shall be composed of
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which three directors are representatives of the Caja de Crédito, two directors representing the workers 'banks, elected by the respective Special Boards of Banks and Workers' Banks, and a President of the Society, which will be elected by the five directors referred to above, in their the first session and with the favorable vote of at least four of them. As long as no such election is achieved, it shall apply to the office of President, as provided for in Article 265 of the Code of Commerce. The respective alternates will be chosen in the same way. The appointed President shall have a vote of quality in the event of a tie.
The members of the Governing Body shall last for a period of two years. The future formation of the Governing Body, the periods of duration of the charges, the form of election and its operation will be regulated in the corresponding social pact.
CHAPTER II
FINAL PROVISIONS
Fixed Asset Assets
Art. 183. For the purposes of complying with the provisions of Article 125 (c) of this Law, the cooperatives shall not be able to carry out any new operations, in which the assets of their assets are provided as collateral. fixed asset.
Law Preferential Application
Art. 184.-This Law, because of its special character, prevails over any other than the contrarian.
Use of Current Denominations
Art. 185.-The Federation of Credit Banks and Banks of the Limited Workers, also called FEDECREDITO, the Rural Credit Banks and the Workers ' Banks, constituted in accordance with the Law of Credit Banks and of the Workers 'banks will be able to continue operating with the denomination they currently have.
The name "Workers' Banks" will be exclusive and compulsory for the institutions created with that denomination.
Credit Boxes and Workers ' Banks which are set up in the future must be organised and operate as cooperative societies of limited liability in the form of a public limited liability company; and its purpose will be to raise public funds and to cater for the needs of financial services to micro and small entrepreneurs and public workers,
savings and credit cooperatives, which, when this Law comes into force, use the expression "Financial Cooperative" as a commercial name, will be able to continue doing so.
The cooperatives that regulate this Law, as well as savings and credit cooperatives not regulated by the same, but which are incorporated in a federation qualified by the Superintendence, they will be able to use the expression mentioned in the previous paragraph, as a commercial name.
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IN ALL LAWS, DECREES, REGULATIONS, INSTRUCTIONS, TECHNICAL STANDARDS, CONTRACTS AND OTHER PROVISIONS, IN WHICH REFERENCE IS MADE TO THE LAW OF NON-BANK FINANCIAL INTERMEDIARIES SHALL BE UNDERSTOOD AS REFERRING TO THE LAW OF BANKS SAVINGS AND CREDIT COOPERATIVES AND SOCIETIES. (6)
WHEN IN THIS LAW, OTHER LAWS, DECREES, REGULATIONS, INSTRUCTIONS, TECHNICAL STANDARDS, CONTRACTS AND OTHER PROVISIONS, REFERENCE IS MADE TO NON-BANK FINANCIAL INTERMEDIARIES, IT SHALL BE UNDERSTOOD AS REFERRING TO COOPERATIVE BANKS AND TO THE SAVINGS AND CREDIT COMPANIES. (6)
Derogatorias
Art. 186.-Derogase the Law of the Banks of Credit and of the Banks of the Workers, issued by Legislative Decree number 770, dated April 25, 1991, published in the Official Journal number 89, Volume 311, May 17, 1991 and all of its reforms; and Legislative Decree No. 814 of 6 January 2000, published in Official Journal No 31, Volume 346 of 14 February 2000.
Vigencia
Art.-187.-THIS DECREE WILL ENTER INTO FORCE ON 1 JULY OF THE YEAR TWO THOUSAND ONE. (1) (2) (3)
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the sixteen days of the month of February of the year Two thousand.
JUAN JOHN MARTINEZ, PRESIDENT.
GERSON MARTÍNEZ, CIRO CRUZ ZEPEDA PEÑA, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
RONAL UMANA, NORMA FIDELIA GUEVARA DE RAMÍRIOS, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
JULIO ANTONIO GAMERO QUINTANILLA, JOSE RAFAEL MACHUCA ZELAYA, FIRST SECRETARY. SECOND SECRETARY.
ALFONSO ARISTIDES ALVARENGA, GERARDO ANTONIO SUVILLAGA, THIRD SECRETARY. FOURTH SECRETARY.
ELVIA VIOLETA MENJÍVAR ESCALANTE, JORGE ALBERTO VILLACORTA MUÑOZ, FIFTH SECRETARY. SIXTH SECRETARY.
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CASA PRESIDENTIAL: San Salvador, at the twenty-three days of the month of February of the year two thousand.
PUBLISH, FRANCISCO GUILLERMO FLORES PÉREZ,
President of the Republic. Miguel E. Lacayo, Minister of Economy.
D. O. N/ 65 Tomo N/ 346 Date: 31 March 2000.
REFORMS:
(1) D.L. Nº 235, DECEMBER 14, 2000; D.O. NO. 241, T. 349, DECEMBER 22, 2000.
(2) D.L. Nº 292, FEBRUARY 12, 2001; D.O. NO. 46, T. 350, MARCH 5, 2001.
(3) D.L. Nº 348, 15 MARCH 2001; D.O. NO 65, T. 350, 30 MARCH 2001.
(4) D.L. Nº 667, DECEMBER 13, 2001; D.O. NO. 241, T. 353, DECEMBER 20, 2001.
(5) D.L. NO 493, OCTOBER 27, 2004; D.O. NO 217, T. 365, NOVEMBER 22, 2004.
(6) D.L. Nº 693, JULY 30, 2008; D.O. NO 178, T. 380, SEPTEMBER 24, 2008.
PARTIAL REPEAL:
D.L. No. 592, JANUARY 14, 2011, D.O. No. 23, T. 390, FEBRUARY 2, 2011. (Art. 58)
JCH/ 06-10-2008
JCH/ngcl 29/7/11
